The ink market in Latin America is developing well
the annual output value of the ink market in Latin America is about US $700million, which also provides a good opportunity for the growth of ink enterprises. Among them, Mexico and Brazil are the most important printing and ink markets in the region
although the global economic crisis has had a certain impact on Latin America, the ink industry in the region has still achieved overall growth. According to greglawson, vice president of sales of Taiyang chemical, which operates in a market-oriented mechanism, different ink products also have different growth rates in Latin America
lawson said: "Packaging ink has achieved a small growth; publishing ink is basically the same; and both printing ink and commercial sheet fed ink have declined. With the continuous decline of ink production at the end of 2008 and the first quarter of 2009, ink manufacturers and their printing customers have also faced severe challenges. In addition, since most raw materials are settled in US dollars, the depreciation of Brazilian and Mexican currencies also gives local ink manufacturers and customers manufacturing opportunities." Some difficulties. "
Mexico and Central America
Mexico's ink industry is very unique. It is mainly composed of domestic manufacturers (Sanchi company), multinational manufacturers (sunchem), some American enterprises that enter the country according to the North American Free Trade Agreement (NAFTA) and packaging enterprises that migrate to the region (colorresolutionsinternational, sunvico and other companies). Mexico's gross domestic product (GDP) grew slightly by 2% in 2008, but its performance in 2009 is uncertain
sanchezsadecv is a leading printing ink manufacturer in the region. In 2007, the company further expanded its scale by acquiring prodaplagsa and its sister company barnimexsa of tensile strength testing concept. Ernestosanchez, general manager of the company, once pointed out that although the economic recession from the United States did not have a serious impact on Mexico and Central America, 2008 was still a challenging year for all printing plants and ink suppliers in the region
sanchez said: "I have always believed that the impact of the economic crisis on Mexico and Central America will lag behind. At least until October, these countries will not suffer too much impact, and the situation of countries that do not have much economic ties with the United States will be slightly better. But by October, most countries have been affected by the devaluation of their currencies against the US dollar, and the economic growth rate of the region has also begun to slow down. However, from the beginning of 2008 In terms of degree. Ink sales in Mexico and Central America have also increased slightly. "Georgesickinger, President and CEO of CRI (colorresolutionsinternational), also felt the impact of currency depreciation on the region
he said: "the ink market in Latin America has maintained a stable growth momentum in recent years, but in the last four months of 2008, due to the impact of currency devaluation and economic crisis, dramatic changes have taken place."
sanchez also pointed out: "as the economic crisis continued from last year to this year, it seems that many printing plants in the education market have also felt great pressure, while the printing plants and paper processing plants serving the packaging market are relatively better. In addition to the decline in output, the shortage of cash flow of printing customers has also created certain difficulties for ink suppliers to maintain the normal operation of sales and distribution chains."
marioarellano, the managing director of CRI in Mexico, said: "the printing plants that are most affected are those that rely on the automobile and electronic industries and imported raw materials. The collapse of automobile assembly plants has caused a series of chain reactions throughout Latin America, and the printing industry has not been spared.
many printing plants have reduced the number of employees and working hours, and began to look for new ways to reduce fixed costs."
as the growth rate of the consumer goods market in international trade gradually slows down, the border processing (a factory located in Mexico and belonging to an American company) industry has also been affected. Due to the depreciation of the local currency against the US dollar, printing plants and paper processing plants that originally needed to import raw materials also had to temporarily give up imports and replace imported paper products with recycled paper, which also brought pressure to ink manufacturers to adjust formulas and reduce costs
according to Mr. Arellano, at present, the packaging industry mainly presents two development trends: one is to use recycled paper; The second is to adopt larger and better packaging images
arellano said: "The demand for color packaging images in the Latin American market has always been large. However, with the emergence of modern image design with more colors, many paper processing plants have to start looking for new prepress design technologies and printing materials. This also creates opportunities for our color management products - especially our truecolorbalance products. In the narrow format flexographic printing market, we have seen the rise of UV inks And more and more customers of shrink packaging and safety products have inquired from us. "
sickinger believes that the main opportunity of CRI lies in the narrow width flexographic printing market. He said: "Mexico has a web flexographic printing plant in the bookstore. They all hope to gain unique competitive advantages by using UV flexographic ink and water-based ink. Two years ago, CRI was only a small unknown company in the Mexican market, but now we have established a foothold in this market with high-quality products and excellent technical services. Participating in domestic trade is indeed helpful to our development, but service It is the prestigious leading printing enterprises that make our best development strategy. "
sickinger said: "Many high-end packaging enterprises are working with us. Next, we will help them participate in the competition in the image printing market. CRI will continue to seek development in the Mexican market, which is conducive to improving the company's R & D strength in several important factors affecting the accuracy of microcomputer controlled material testing machines in aviation, aerospace, nuclear power and other fields, and will strive to find opportunities to enter other Latin American countries. We are Before it can be extended to other places, a good foundation must be laid in Mexico. "
generally speaking, ink manufacturers are full of hope for the coming year. Sanchi hopes to resist the economic crisis by serving different markets and countries. Their goal is to consolidate and enhance their leadership in Latin America; Sun Chemical has factories throughout Latin America. They plan to improve the quality, service and innovation of all ink product lines. Greglawson, vice president of sales, said: "we will provide long-term services to customers in Latin America and help them achieve business growth."Mr. Arellano of CRI said: "many printing houses and ink manufacturers are optimistic about the future. The economic recession is approaching the bottom, and printing production will also grow slowly in the last quarter of 2009."
Brazil and South America
in recent years, the printing and ink market in South America has also achieved some growth driven by Brazil. Brazil's GDP grew by 5.1% in 2008 as a whole, but dropped to 3.6% in the last quarter of last year. It is predicted that Brazil's GDP growth rate this year will be less than 2%. At present, Sun Chemical and Flint Group, two ink giants, dominate the ink market in Brazil
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