The hottest globalization makes the world of ink i

Globalization makes the world of ink industry smaller and smaller editor's note: in 2005, many unforgettable events occurred in the ink industry. For today's ink industry, the regionality and status of customers have undergone earth shaking changes. So what impact will these changes have on us? Let's look at the essence through the phenomenon and jointly enter today's international consultation - "globalization makes the world of the ink industry smaller and smaller"

for the ink manufacturing industry, 2005 can be regarded as the largest "merger year" in history. Under the sponsorship of CVC Capital Partners of European enterprises, Flint ink company and XSYS printing solutions company merged to form a new Flint Group; Huber Group acquired most of the shares of micro inks; Siegwerk, a German company, acquired the packaging ink branch of SICPA and integrated it with the previously purchased Colo, including titanium pedicle screws and PCU stabilizer (gasket) r converting industries, forming a new ink packaging company of Weike group. The merger of these enterprises is very large in both scale and scope. But more importantly, they reflect the development trend of the globalization of the ink industry. These ink manufacturers are looking for suitable partners to ensure that they can obtain opportunities for survival and development in the increasingly fierce market competition, as well as the market conditions of overcapacity and rising raw material prices

in a mature market like ink manufacturing, acquisition is the only way for enterprises to obtain market share. On the surface, it seems that European ink manufacturers want to enter the North American market through acquisition. Although this is certainly one of the reasons why the wind of merger is getting stronger, because North America plays a very important role in the world ink market, and its development prospects - regardless of other factors - are much better than the European market. However, behind every acquisition plan, there are many other reasons, and at present, the regional differences in the ink industry are still widespread

new markets; Reverse integration

from the above merger cases, the most likely to achieve regional transfer may be the merger and acquisition of Migao ink company by Huber group. Amber has a leading market position in Europe and North America, mainly providing printing inks for sheet fed and web presses, including UV inks and flexible inks for packaging printing. Nevertheless, the strength of amber company in the emerging Asian market is still very weak. As the leader of the Indian market, Migao ink has naturally become the preferred partner of amber company. They have multiple channels to enter other printing markets in Asia

on the other hand, Migao ink company lacks global distribution capacity and the strength to make a difference in the European market. Their cooperation with amber company can also bring many benefits to themselves. After the merger, the company's sales reached $900million, making it the fourth largest ink manufacturing company in the world. In an industry, the ability to provide services to all customers in various markets is a very important advantage for an enterprise, which is more competitive than other capabilities

interestingly, although the production capacity and market share of amber group can be improved through acquisition, these are not the first problems people think of. On the contrary, the main purpose of reverse integration (backward integration) is to ensure the adequate supply (at a lower price) of important raw materials such as pigments and resins. With the rising price of crude oil, ensuring the integrity of the ink raw material supply chain has become an important factor for ink manufacturing enterprises to achieve success in the global market, which is an important factor for the problems existing in many new material segments

packaging focus

the main starting point of the M & a strategy of sunvico group is to strengthen their strength in the field of printing applications, rather than to pursue geographical advantages. As early as a few years ago, shengweike group began to restructure itself and cut down the businesses that they thought could not be developed in the future. The company believes that packaging is the most ideal expansion field for enterprises, and they have taken various measures to strengthen their strength in this field. The first step for them to enter the North American market is to acquire color converting industries, which not only has a deep foundation in the North American market, but also has the production capacity of flexographic ink that can just make up for the gap in this field. The goal of sunvico group in Germany is to become the second largest ink manufacturing company in the packaging market after Sun Chemical Group. Before that, flint and SICPA occupied the second and third positions in this market respectively, but after shengweike Group acquired the packaging ink branch of SICPA, their sales reached 613 million US dollars, thus realizing their dream. However, just a few months after shengweike group completed the acquisition of SICPA, Flint ink group merged with XSYS printing solutions company, which combined into one. Its size and measurement range are consistent; The other is a small one piece packaging ink business with a total value of 960million US dollars

geographical expansion

the integration of flint ink group and XSYS printing solutions (forming a new Flint Group) may be the largest M & A case in the history of the ink industry. In addition, it clearly reflects the development trend of the globalization of the ink industry. Although the acquisition can allow flint ink to expand to Europe or other foreign markets in recent years, it is still subject to many restrictions as a private enterprise. At the turn of the century, the injection of private capital into the ink industry has made people see a brighter future. Both flint ink and XSYS have certain complementarity in terms of product portfolio and their respective markets in the world. Their combination can significantly enhance each other's strength in the world market

changes in the position of customers

with more and more ink companies carrying out mergers and acquisitions and integration, what changes will happen to the position of customers? What does the globalization of the ink industry mean to the printing press

the ink industry has been affected by the globalization trend of the printing industry. More and more large printing houses, especially packaging printing houses, have made changes with their customers (that is, buyers of printing services). In many cases, this combination can provide customers with a more single source of goods, because large ink companies can now take the weight of axial afterburner to supply a full range of ink products for the global market. But from another point of view, this also fundamentally reduces the number of supply, because small companies have become increasingly difficult to compete with these large companies. Moreover, they will eventually disappear from people's sight. Ink manufacturing may be a global industry, but from the perspective of sales and service, it has developed and will also develop on a regional road

information source: must win