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Foxconn invests heavily to promote the development of the flexible packaging industry
Foxconn is preparing to establish a science and technology industrial park in Changchun City, Jilin Province, focusing on the development of environmentally-friendly degradable plastics. The project is expected to be completed and operational by the end of 2015, with the new plant estimated to be finalized in December 2016. This move comes amid both industry challenges and emerging business opportunities.
The company has invested heavily in three industrial projects within the Nong'an Economic Development Zone in Changchun. Once fully operational, the Foxconn Technology Industrial Park is projected to generate an annual output value of 1 billion yuan, contributing 40 million yuan in profits and taxes, and providing employment for nearly 2,000 local workers.
According to Jiang Chunruo, the project manager at Foxconn Technology Group’s Environmental Protection Plastic Products Co., Ltd., the decision to locate in Nong’an was influenced by the region's strong corn resources. Corn-based environmental protection materials play a key role in promoting the development of biodegradable plastics, aligning with global environmental trends.
Changchun Leiguan Environmental Protection Plastic Products Co., Ltd., established in 2013, is a wholly-owned subsidiary of Xiancheng Co., Ltd. It has a registered capital of 7 million U.S. dollars and is designed to produce 7,000 tons of degradable plastic products annually. The company currently produces degradable shopping bags and tableware, meeting local standards and fulfilling various packaging needs.
In addition to its efforts in Changchun, Foxconn recently completed a new factory in Zhengzhou, Henan Province, which is expected to be fully operational by December 2016. The project, valued at over 3 billion yuan, marks Foxconn’s second LTPS LCD panel project in China after Shenzhen. This facility represents the highest level of domestic LTPS technology and is set to become a flagship project in the smart terminal industry chain.
As a major user of flexible packaging, Foxconn’s operations are expected to significantly boost the local flexible packaging market. This development is likely to benefit packaging companies in Henan Province, especially those specializing in functional packaging solutions such as anti-static, moisture-proof, and cushioning materials.
However, some industry experts note that Foxconn’s products primarily involve electronics, which require highly specialized packaging. Becoming a supplier may be challenging for many companies. Those focused on advanced composite packaging solutions, however, may find long-term collaboration opportunities with Foxconn in the future.