The development of plastic packaging is blocked

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the plastic packaging market is gradually on the right track and has broad development prospects. As the largest piece in the field of plastic application, its development speed is growing day by day, surpassing other packaging materials such as paperboard and metal. However, the plastic packaging market with unlimited prospects is still restricted by some factors, among which the biggest restriction is the problem of capital
at present, many enterprises that follow the low-end product line have closed down, and the demand for short-term financing is urgent. “Plastic packaging enterprises are difficult to do, and the phenomenon of delaying payment in the industry is very serious. We haven’t collected the payment for goods last year. We plan to expand our business this year, but it’s very difficult to get financing from banks.” Xiao Xuefeng, general manager of Shenzhen simeida packaging products Co., Ltd. (hereinafter referred to as “simeida”), told reporters. It is reported that Smecta is a large-scale manufacturer specializing in the production of all kinds of environmental friendly heat shrinkable films, shrinkable bags, PVC, pet, OPS color printing shrinkable label films, OPP and PE plastic bags. At the same time, it also operates a variety of protective films, stretch films and their customer design, processing and packaging. It started to produce such products in Shenzhen earlier. Plastic packaging enterprises in Shenzhen mainly face the European and American markets. With the spread of the European debt crisis, the orders of plastic packaging enterprises in the European and American markets are gradually reduced, and even zero orders appear. Coupled with a series of restrictive factors, such as tight money, high labor costs, rising raw material prices, power limitation and energy conservation, the survival and development of plastic packaging enterprises are difficult
“Smecta’s products are sold to the Pearl River Delta, the mainland, Europe, America and Southeast Asia. In previous years, we received some export orders every two months, but so far this year, we haven’t received one.” Xiao Xuefeng said that the reduction of export orders has made many plastic packaging enterprises turn to the mainland market one after another. In order to win more customers, enterprises compete to fight a price war, take the low-end product line and operate at a low price. There are fewer export orders and less demand. Factory rents have risen, workers’ wages have risen, raw material prices have risen, and the market is depressed. At the same time, customers have kept product prices very low. Even if some orders are made, they are not profitable. In this industry, it is impossible to rely on low-end products. Xiao Xuefeng said: “Enterprises that follow the low-end product line can only think of raw materials. If the quality of raw materials is poor, the quality of products produced must be poor, and the reputation of enterprises will be damaged, or even deducted or fined by customers in accordance with the contract. Last year, more than a dozen plastic packaging enterprises in Shenzhen closed down, and many enterprises can only sell the equipment worth millions at hundreds of thousands or even lower prices 。”
“at present, the domestic market is also relatively mature. We cooperate with BYD, Canon, CASS milk and other companies. We don’t worry about orders, but capital is still a big problem restricting the development of enterprises. In this industrial chain, we need to advance money to buy raw materials after receiving orders from customers, and customers will remit the money to our company’s account after delivery to customers.” Xiao Xuefeng said that generally, the contract says one month settlement, but it is good to receive the payment within three months. Some customers delayed for half a year, or even a year, and didn’t settle the money. Tardiness is a common phenomenon. Many of them are old customers. They can’t fall out because they don’t fulfill the contract. Enterprises have short-term financing needs. When they lack funds, they usually borrow money from friends
Xiao Xuefeng told reporters: “in this industrial chain, product manufacturers are caught in the middle. When buying raw materials, they must take out cash. However, customers who place orders do not remit the payment to the product manufacturers in time. They agree on monthly settlement, but they often delay payment.” Based on this phenomenon, enterprises lack the funds for reinvestment. “We also often receive orders worth tens of millions, such as BYD’s orders this year, but the enterprise lacks working capital and financing is difficult, so we can only give up.” He said that he could only appeal to customers to shorten the settlement time, and the operating funds of many small enterprises could not withstand long-term arrears
Xiao Xuefeng said frankly that he is optimistic about the development prospect of the industry. Plastic packaging film is mainly for the consumer industry. It purchases high-quality raw materials and uses more mechanized operations. There is still a lot of room for the sustainable development of the company. The company once sought bank financing. Because the bank asked for collateral, the loan procedures were cumbersome, and the lending time was slow, it finally gave up
Xiao Xuefeng said that as an enterprise, banks should not only make profits but also avoid risks. It is understandable that they should be cautious in lending. However, for small and medium-sized enterprises in the growth period, banks should lower the loan threshold and set up loan conditions according to the needs of small and medium-sized enterprises. “Every enterprise needs a strong capital flow to become bigger and stronger. It needs to advance millions or more to receive an order from a large customer. Without the support of bank funds, a large order may also bring down an enterprise.”
as an industry with good development prospects, the plastic packaging market should be paid attention to. In addition, for the plastic packaging market, banks should lower the threshold and provide financial support in time, so as to make the plastic packaging market have broader development prospects

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