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Biodegradable plastic bags

Sourcing Center
Wenzhou benefits from solid support network
Posted : January 21, 2008
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A vast material supply and well-developed auxiliary enterprises place this hub at the forefront of China's paper bags industry.

With more than 200 processing factories, Wenzhou is China's leading base for paper bags. Producing 20 million pieces each month, this city in Zhejiang province contributes 60 percent of the country's output.

The hub's 100 exporters thrive on a vast local supply of materials. Longgang town, for example, has about 350 paper distributors, and is one of China's top three printing bases. Makers in Wenzhou also benefit from five large paper mills in the neighboring cities of Ningbo and Hangzhou. Handles and trimmings are sourced from 500 factories nearby.

Local providers of Germany- and Canada-made production equipment allow paper bag companies to expand in-house processes easily. Aside from cutting, pasting and folding, many suppliers in the center are now capable of printing and applying surface treatments such as foil-stamping, embossing, and UV and film coating.

In addition, the growing number of specialized service businesses is helping to position Wenzhou as a lucrative base for OEM. The hub has more than 30 design studios that may be subcontracted for logo and pattern creation.

With all this in place, suppliers are able to shorten lead time and offer models at competitive prices. Low-end releases range from $0.10 to $0.20. Upscale versions, which boast sturdier constructions, can top $0.60.

While counterparts in rival hubs take 10 to 15 days to prepare samples, most Wenzhou suppliers can finish prototypes in a week. Manufacturing time is also cut as companies do not have to wait long for paper to be delivered to their factories. Further, many suppliers can easily carry out product adjustments because they have a range of materials to work with. Being able to modify designs efficiently also allows some makers to accept orders as small as 100 pieces.


Industry overview
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Industry overview

Thirty to 40 percent of China's paper bag exports come from Wenzhou. Three-fourths of these are based on buyers' specifications. The main markets are Europe and North America, with the US absorbing one-third of shipments.

Models are offered in various paper types. Best-sellers have kraft, specialty or coated art-paper constructions. Handles can be in the form of a rope or a ribbon made of cotton, PP, nylon, iron wire or PVC. Gray cardboard is usually employed for base reinforcement.

Among the suppliers interviewed for this report, Wenzhou Chinas Printing & Packing Co. Ltd utilizes 120gsm kraft, and 157, 180, 200, 210 and 250gsm coated art paper. Ivory board in different thicknesses is also used. Handles are made of PP, nylon or cotton.

Established in 1991, the company exports 200,000 pieces each month. OEM and ODM account for 95 percent of shipments, with Esprit and Colgate among the major clients. Composed of 12 specialists with more than 10 years of experience in the line, Wenzhou Chinas' R&D team can create samples in three days.

Releases from Wenzhou Pleasure Trade Co. Ltd come in kraft, specialty and coated art paper, and Manila and ivory board. Materials for handles include cotton, nylon, iron wire and PVC.

Although relatively new to the industry, the company has a monthly capacity of 200,000 pieces. Its annual export sales reach $800,000. Eighty percent of shipments are under OEM and ODM.

At Fukang Packing & Printing Co. Ltd, popular models are made of kraft and coated art paper, and ivory board. The company utilizes PP and cotton for the handles and 400gsm board as the base support.

ISO 9001:2000 and 14001:2004-certified Fukang Packing can produce 2.5 million pieces in a month. OEM and ODM orders constitute 90 percent of exports. Major clients include Blunauta, Ferrari and Hilton. Samples are finished in three to five days.

Zhejiang RLIT Industrial & Trade Co. Ltd offers models in kraft and coated art paper. Thickness ranges from 150 to 400gsm. Designs may come with a cord, rope, ribbon or paper handle.

Utilizing 30 percent of its production capacity, the company manufactures 300,000 pieces in a month. All are exported on an OEM basis. Corporate Express and D&B are among the major clients.

Most suppliers focus R&D efforts on improving production capability. To accomplish this, some companies are investing in new equipment, including multicolor presses from Germany's Heidelberg and Komori of Japan.

In addition, advanced printers with automated feeders and enhanced preset functions are being employed to reduce manual setup. Aside from boosting efficiency, these can handle various types of ink and coatings.

More companies are also paying close attention to the safety and toxicity of materials in response to strong demand for environment- and health-friendly carrier bags.

For this end, Wenzhou Pleasure plans to increase the use of cotton and paper ropes for handles in the next 12 months. Fukang Packing and Wenzhou Chinas are employing lead-free ink.

Under efforts to ensure compliance with buyers' specifications and standards, suppliers are enforcing stricter QC measures.

Makers commonly have in-house specialists who handle inspection from procurement of materials to packaging of finished products. Procedures involve mainly visual and tactile examinations.

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Note: All price quotes in this report are in US dollars unless otherwise specified. FOB prices were provided by the companies interviewed only as reference prices at the time of interview and may have changed.
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