Industrial park transforms Wudang packaging industry

A view of the Guiyang Luowan Smart Packaging Industry Incubation Park in Wudang district. [Photo/Colorful Guizhou News Network]

Guiyang Luowan Smart Packaging Industry Incubation Park in Wudang district, Guiyang, capital of Southwest China's Guizhou province, has become home to 27 enterprises since it started operating two years ago.

During the same period, the cumulative output value generated by resident enterprises exceeded 100 million yuan ($15.01 million).

The industrial park is an effort by Yan Leyun, the executive chairman of Guizhou Yunguan Business Management Co, to change the business environment of the packaging and printing industries.

In 2019, Yan visited nearly 30 old-fashioned printing companies in Guizhou. He found that the old operating model in the packaging and printing industries resulted in a high threshold for capital access to the entire industrial chain of the industries, as well as immense competition.

To solve these problems, Yan subdivided the printing production line into 16 core production processes including design, proofing, printing, lamination, bronzing, embossing, gluing and manual assembly. Each core production process is introduced with a manufacturer.

Suppliers of consumables such as ink and glue have also joined the industrial park.

Under the new model, the relationship between manufacturers in the packaging and printing industries has changed from one marked by competition to one marked by collaboration.

Each manufacturer can not only obtain additional orders from the upstream and downstream production chains, but also make profits through its own production and processing.

As a result, the number of orders received by manufacturers in the industrial park has increased by a factor of more than ten over the previous industry environment, Yan said.

In order to maintain the healthy development of the printing production line, the industrial park has also introduced an "elimination" mechanism. If the enterprises operating in the park cannot meet the production needs of the industrial chain within two years, they will be dissuaded.

Additionally, each year, 50 percent of the plant rent fees of resident enterprises will be invested in these enterprises to boost business investment.