Tobacco Asia

Volume 19, Number 2

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Page 43 of 79

44 tobaccoasia / Issue 2, 2015 (May/June) By Allen Liao As a result of growing public health concerns and increasingly stringent and numerous tobacco con- trol measures, China's tobacco industry has had to deal with slower rates of growth in domestic ciga- rette sales over the past few years. That, in turn, resulted in reduced growth in traditional income on the part of the country's cigarette packaging manufacturers. In response, cigarette packaging enterprises, particularly Shanghai Binhoo Packaging Materials (BINHOO) and Shanghai Luxin Packaging Evo- tech (LUXIN), have taken active steps to try and maintain cigarette packaging production and sales by expanding their international operations. BINHOO mainly produces and sells sheet of cigarette paper and cigarette packaging materials. In 2014, the domestic market sales of the com- pany's traditional packaging materials including tipping paper, aluminum-foil paper, and cigarette packs have slowed down considerably and even declined, at times. The company then made the decision to focus their energy on producing and marketing cigarette filter tow products of gen- eral specifications. At the same time, along with launching its new production lines, the company has also managed to enhance its capacity of meet- ing individualized client demands in terms of supplying cigarette filter tow products of special specifications. In 2014, BINHOO succeeded in expanding its product sales to more countries and regions. Be- sides its existing export markets in Southeast Asia and the Middle East, the company has met with success moving into Africa. Overseas, the most serious challenge met by cigarette packaging manufacturers is the increas- ingly stern measures of international tobacco control, and this trend of harsher tobacco control measures is evident in more and more countries and regions. In light of such developments, BIN- HOO took steps to satisfy the individualized de- mand of customers as much as possible and has provided them with new solutions relevant to their specialized needs. In the meantime, the company has also managed to streamline its management decision-making procedures, which took their en- tire operation to a whole new level. The company has also made great strides in lowering production costs, improving the quality of its products, and enhancing its rapid response capacity. In 2015, BINHOO plans to deploy new equip- ment for producing traditional cigarette packaging materials in order to further improve production efficiency and lower production costs. The com- pany's aim is to eventually be able to offer its cus- tomers a variety of products with a high perfor- mance-to-price ratio. Chinese cigarette packaging manufacturers are actively engaging overseas markets with a strategy that aims to optimize their packaging products and services at a time of sluggish growth in sales of tobacco products. Chinese Cigarette Packaging Makers Eye Overseas Markets Products of Shanghai Binhoo Packaging Materials

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