The ACCA 10 th General Meeting held at the Baolong Hotel, Shanghai , CHINA on 20 th April 2004
With the confirmation of quorum, President, ACCA, Mr M L Agarwal as Chairman of the Meeting per se welcomed all participants present.
New Members
Mr Jean-Pierre De Moor ( Esko-Graphics )
Country Report China —Mr Qian Jin (CPTA) pointed out that sources of the corrugated industry statistics in China need to be consolidated, and reckoned that the actual China demand may not be as large as projected. Particularly this applied to the 2002 figure from the many companies with annual turnover of less than 5 million RMB. Also, the local imported figures need to be properly accounted for, and hence, he hoped further exchange of information is needed for improved statistical accuracy. Hong Kong —Mr Ma Wai Mo (HKCPMA) reported that a local market survey would be conducted. HKCPMA had participated in exhibition in Shenzhen. The latest activity covers raw materials and OEM with a new committee to be formed by year-end. India —Mr M L Agarwal reiterated that the Indian market is very fragmented with about 7000 players producing about 2 million tonnes a year. Currently the corrugated industry is undergoing a major revamp due to policy change such as removal of small scale production restriction thereby allowing larger players. Also new technology is being adopted. Some companies from China are supplying machines to India . Indonesia —Mr Jeffri Tan (PICCI) reported the Indonesian economy is starting to grow 3 to 4% with inflation 6 to 9%. The number of box plants grew from 85 to 100 box plants from 2000 to 2003, while the number of corrugators from 105 to 123. Total corrugated production increase at rates of 4 % in 2001 to 10.4% in 2003. Briefly the customers of the corrugated box industry is divided into the following categories: Food/Beverages—40%, Electronics—20%, Consumers—15%., Others----------25% Japan —Mr T. Uchida (JCCA) had distributed his paper on the Development Trends of the Corrugated Case Industry in Japan dated March 2004. Malaysia —Mr Soh Man Tong (MACCMA) reported that 2003 was a very painful year for the corrugated industry in Malaysia with output dropped by 40% largely due to relocation of customers to China and other countries. Yet the number of new players had increased. Currently the country economy is growing at 5.8% pa, and hopefully the corrugated industry would recover in the next one or two years. Singapore —Mr Philip Wong pointed out that Singapore is a very small country and gained independent only in 1965. In the ‘70's the industry grew at average 15% pa because of the small base. From 1980 to 1989, the average growth rate was 10%pa. In the first half of ‘90's, the rate dropped to 5% pa. After the 1997 economic crisis, the growth reduced further. And by 2001 when many customers relocated to China, some companies including 3 corrugators were closed. At the peak, Singapore market had 20 corrugators and 40 box plants. Today, the market is down to 17 corrugators and about 30 box plants. Most plants are currently operating at only 50 to 70% capacity with many relocated to Malaysia and China. Competition had been very keen. Fortunately because of the relatively small number of players and good communication among members of CBMA, the Association is able to cooperate to support the industry. The local industry statistics may not be 100% accurate but they are reliable whereby survey are carried out once every 6-month. And the average gramage achieved is 680 g/sq m with tendency to reduce in the near future as indicated by Europe's 530 g/sq m. This trend would mean the packaging industry would not be following the country's GDP trend. Hence, he predicted that even if Singapore economy would recover to 4.5 to 5.5%pa in 2004, the local corrugated industry would only manage 1 to 1.5%pa growth, also largely due to the structural change of the country's manufacturing industry. Chinese Taipei —Mr Lin Kuo Hung (CTCCA) reported that because of the special relationship with China , Chinese Taipei corrugated industry would follow closely those of China . Players are struggling to survive. Years 2001 to 2003 were the worst market condition due to local political changes and world tension. The average market demand during these years was 210,000 mtpa. For 2004, Chinese Taipei economy looks bright, however, the corrugated industry growth would not match that of the national GDP growth rate. The measure for the industry to survive is to continue with cost reduction and improve performance. Thailand —Mr Boonlieng L. stated that in the first quarter of 2004, all industry in Thailand were down except the food industry which ended up with growth rate of 6.2% which was greater than the country GDP growth. Though the food industry needs more effort and resource because of the greater attention for food safety and cleanliness, the industry is doing well because players are mostly large companies. As for the electrical appliance industry in Thailand, changes are taking place slowly unlike other countries. For instance, flat-screen TV sets that need smaller corrugated cases than conventional TVs have yet to be popular in Thailand. Hence, in Thailand, different industry will change at different pace. Overall, industry growth remains positive. Saudi Arab —Mr Atul Kaul reported that the GCC total market capacity is in the range of 575,000 tpa plus or minus 5%. The industry is growing at an average rate of 6 to 7%. In the absence of a formal association within GCC Corrugated Community, official data are not available. Thus market figures are derived from available trade statistics and import figures as well as industry reports. Actual Industry/Company data is deemed highly private and kept secretive by individual converters with regard to their actual Capacity/Conversion and trade statistics. It is therefore, very difficult to get a more accurate figure than above. Out of above figure, about 300,000 mtpa would be the Saudi market share. This is a net product of the output of 12 corrugators of varying capacities. With a few average size plants, the major stake is divided amongst the major players who are backed up by state-of-the-art plant and facilities including most modern printing and conversion lines. The result of this is a highly competitive market wherein the end customer (box consumer) gets spoilt with over specified products such as the Potato Boxes done on White Top Liner. GCC also exports a large amount of waste paper including corrugated waste like OCC & NCC. GCC in total would easily produce average monthly exports of about 45,000mt. Out of this volume the Kraft waste would be roughly 60%. Major export destinations for this waste include Mills in India and the Far East . It was agreed that members as suppliers to the corrugated industry are welcomed to feedback at how they view the industry: Bobst Grp, HK —Mr Gilbert Heyraud commented that year 2004/2005 would be a very good year for the corrugated industry. Last year Japan , India and China was a good year even though margin may had been squeezed owing to the sharing in these large population base. Esko-Graphics —Mr Jean-Pierre De Moor stated that from the value-added viewpoint, printing services experienced good growth for markets of India and China . Last year, the flexo business was good with new technology, particularly that of the new digital printing. Work Plan for Years 2004/2005
“Sino-Corrugated 2005' Mr Robby He and Ms Amy Li (of Reed HuaYin Exh.) welcomed the opportunity to extend their invitation to all ACCA members to the Sino-Corrugated 2005 which would be one of the 3 largest exhibitions to be held in Shanghai (Pudong), 30 th March 2005 . The Exhibition is already 70% committed by the expected total 140 exhibitors. Reed HuaYin suggested that ACCA member companies should consider organising their meetings to coincide with the Exhibition in Shanghai to take advantage of the event. After meeting, we have a dinner which as usual there were exhange gift from each member with the host country. The dinner was accompanied with traditional music as shown on picture below.
Opening Ceremony of Shanghai Printing & Packaging City
Visit to Monkey Candy & Chocolate factory
Huang Pu River Cruise
OTHER PICTURES
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Exec. Sec reported that we have two new members, and they are Esko-Graphics Pte Ltd of Singapore represented by Mr Jean-Pierre De Moor, and Combine Manufacturers Ltd of Fiji , Mr Sanjay Desai. However, Mr Desai was unable to attend this Meeting. 
