Tobacco Asia

Volume 20, Number 5

Issue link: https://read.dmtmag.com/i/743340

Contents of this Issue

Navigation

Page 40 of 67

tobaccoasia 41 White, cork, and hot-stamped tipping papers manufactured by Zhejiang Techmay Various tipping papers manufactured by Zhejiang Techmay house design and printing services as value-added services for the company's clients. "Elaborate printing makes any cigarette com- ponent more attractive and impressive and also suggests a powerful, desirable brand," Li said. She added it also could be a safeguard against coun- terfeiting if tipping papers, for example, are em- bossed or hot-stamped with the brand name. Innovation to attract future business While Mudanjiang Hengfeng currently does not produce inner frames and outer packaging, the company boasts extraordinary expertise in han- dling every other component with resourcefulness and innovation. For instance, apart from offering common aluminum foil papers as inner liners, the company has recently introduced aluminum-free inner liner base paper as the latest addition to its portfolio. "We developed it to address customer's en- vironmental concerns, because without an alu- minum content this new inner liner type is com- pletely degradable and fully recyclable," asserted Li, adding the factory's current "equipment and machinery is most advanced" and included several pulping, paper-making and printing, as well as cut- ting and perforation lines. Product diversity for diverse markets The diversity of its product range has made the company a household name among local cigarette producers. Calculated by sales volume 85% of its customers are located in China. As per the remain- ing 15%, Mudanjiang Hengfeng exports to nu- merous Asian countries such as Indonesia, South Korea, Philippines, Taiwan, India, Pakistan, Singa- pore, Thailand, and Vietnam, and also has made great strides in securing a customer base in Europe (Germany, Poland, Turkey, Greece, Bulgaria, Rus- sia). "But we'd like to further increase our pres- ence in Europe, as it is still much smaller there than in our other markets," disclosed Li. Another coveted market for the company would be North America, and the United States in particular. "But the US is rather difficult to penetrate, as it is near impossible to comply with the very challenging certification rules enforced by FDA. Yet the US would be a very, very big market for us, not only for our cigarette packaging products but also our cigarette papers, including RYO's." And opening new markets may not just be a matter of the company's expansion but also of its long-term sustainability. Li admitted that in 2015 total company revenues had declined by 6.8% compared to 2014, and in the current year Mudan- jiang Hengfeng expects a slump of another 3%. One reason for that decline might be that – simply speaking – the numbers of cigarette smokers are shrinking worldwide, resulting in slowing sales. "And if our customers are affected, it indirectly also affects us," said Li. Eyeing Africa Established in 2004 and currently employing about 70 workers, Zhejiang Techmay New Materials Co. Ltd. primarily supplies plug wraps, tipping papers, aluminum foil (inner liner), and inner frame card- board. While competitor Mudanjiang Hengfeng reported revenue losses for 2015, Zhejiang Tech- may claims to have enjoyed a revenue increase of Zhou You, assistant to the chairman, Zhejiang Techmay Company Regular Printing Hot-Stamping Laser Printing Embossing Metallic Coating Pearl/Silk-Lustring (5-color/7-color) (incl. holographic printing) (glossy/matte/colored) Mudanjiang Hengfeng Paper Co. Ltd. a a r a a a Zhejiang Techmay New Materials Co. Ltd. a a r r a a VE Packaging Technology Co. Ltd a a a a a a Printing and Texturing Technologies Courtesy of Mudanjiang Hengfeng Paper Co. Ltd. Courtesy of Zhejiang Techmay New Materials Co. Ltd. Courtesy of Zhejiang Techmay New Materials Co. Ltd. Courtesy of Zhejiang Techmay New Materials Co. Ltd.

Articles in this issue

Archives of this issue

view archives of Tobacco Asia - Volume 20, Number 5