Published: 2024 Jan 17
In a recent industry development, Dashengda has caused ripples in the packaging sector by initiating the construction of a new pulp molded environmentally friendly tableware project in Hainan.
Dashengda officially disclosed a strategic cooperation agreement with Jitli, announcing their joint investment in establishing Hainan Dashengda Environmental Protection Technology Co., Ltd. The collaboration includes the construction of the "Pulp Molded Environmentally Friendly Tableware Intelligent R&D and Production Base Project" in Haikou National High-tech Zone, with an impressive total investment of 500 million yuan.
Hainan Dashengda, registered and established on November 10, is projected to attain an annual production capacity of 30,000 tons of pulp molded environmentally friendly tableware upon project completion. The expected annual sales revenue is set at 626 million yuan. Dashengda holds a majority 90% share in the Hainan project, while the remaining 10% belongs to Giteli Environmental Protection Technology (Xiamen) Co., Ltd. Dashengda plans to utilize the 277 million yuan initially raised for a different project to fund the Hainan Dashengda initiative, reflecting the company's strong commitment to the pulp molding sector.
Upon completion, Hainan Dashengda will receive support from Giteli in terms of orders, equipment, and production. Jitli, a major shareholder in Giteli, is a prominent player in the domestic pulp molding industry, involved in both pulp molding equipment and product manufacturing. It boasts 36 state-of-the-art packaging product production lines and is recognized as the most powerful pulp environmentally friendly food packaging production base in Asia, holding 95 national patents.
The partnership between Dashengda and Jitli forms a robust alliance, combining capital strength, advanced production capabilities, and cutting-edge technology. This collaboration positions them for unparalleled efficiency in the competitive market.
This move by Dashengda is not an isolated case, as industry giants have been making significant investments in environmentally friendly packaging products, particularly in the pulp molding sector. Yutong Technology, for instance, announced a 400 million yuan investment to build an industrial base for environmentally friendly degradable products in Haikou National High-tech Industrial Development Zone, focusing on pulp molded tableware as a key product.
Jihong, another major player, expressed its commitment to environmentally friendly packaging products as an essential aspect of food safety in an era of plastic restrictions. The company invested 10.75 million yuan in 2018 to acquire a significant stake in Anhui Weizhi Environmental Protection Paper Products Co., Ltd.
The trend is not limited to domestic companies, as foreign pulp molding giants like Thornico are expanding into the Chinese market. In 2019, Chuzhou Senwo Paper Packaging Co., Ltd., a project backed by Thornico's subsidiary Hartmann Company, began construction with a total investment of about 120 million yuan, aiming to produce 200 million pieces of molded egg packaging products annually.
As global efforts to combat plastic pollution intensify, the plastic restriction movement is gaining momentum worldwide. In China, the 2020 plastic restriction order introduced progressive goals, comprehensive coverage, and a focus on plastic alternatives. The mature papermaking industry in China, along with advancements in white cardboard and cardboard production capacities, positions paper products as a substantial contender to replace plastics in line with plastic restriction orders.
The market for environmentally friendly packaging products, especially those utilizing pulp molding, is experiencing heightened interest and robust investments, reflecting a pivotal shift toward sustainable practices in the packaging industry.
