Japan's NIPRO acquires a number of pharmaceutical glass bottle companies

“At present, NIPRO’s acquisition of three domestic Amgen mills has progressed to varying degrees: Part of the acquisition proceeds for Chengdu Plain Pharmaceutical Packaging Group Co., Ltd. has been paid; the agreement with Chongqing Glass Instrument Factory has been signed and will only be met by the relevant authorities. Approvals; The acquisition of Anyang Changda Medicinal Glass Packaging Co., Ltd. is also being actively promoted.” A few days ago, a person familiar with the situation told reporters that since April of this year, Japan NIPRO Co., Ltd. has continued to “staking care” in the production industry of Ampoule in China. "It seems to be a precursor to an "earthquake," which has caused an uproar in the domestic pharmaceutical glass bottle industry.
What is the purpose of NIPRO's layout in China? Why are these three local security companies collectively "married" the Japanese company? What influence will "one-and-three" multinational marriage bring to the industry? For a time, guesswork, sadness, anxiety, alertness, etc., began to spread in the industry.

Half of the country acquired

The reason why the series of acquisitions that have yet to be completed will cause unease in the industry is not that NIPRO is going to pocket these three companies in an instant, but that these three companies have a special position in the domestic market.
“At present, these three companies have a total of about 150 ampoule production machines, which can produce about 15 billion ampoules a year. The total domestic market for ampoules is about 26 billion to 27 billion, and the total output of these three companies already accounts for 50 of the national market. More than %.” Li Rucheng, deputy general manager of Shuangfeng Gresheim Pharmaceutical Packaging (Zhenjiang) Co., Ltd., told reporters that from the second half of 2009 to the first half of this year, thanks to the volume of pharmaceutical market in the new medical reform, the market for domestic pharmaceutical packaging products Demand has risen sharply and most drug packaging companies have gradually improved.
In this case, why did the three Amway production companies, which are of great importance to the industry, give up the market and choose a joint venture? In the face of reporters' questions, Chen Fengzhen, chairman and general manager of Anyang Prachanda, said with resignation: "Who doesn't have a national sentiment? It's just that this industry is too difficult to do!" Chen Fengzhen said that due to the low barriers to entry in the industry, in recent years, There are more and more pharmaceutical glass bottle manufacturers. The vicious competition has caused the market environment to become worse and worse. At the same time, natural gas, logistics and freight have risen sharply, and the prices of medicines and pharmaceutical packaging materials have been “unchanged” under unreasonable pricing mechanisms. In particular, the price cuts for pharmaceuticals, pharmaceutical companies will be the first to reduce the cost of packaging materials, to the Anxi production companies have brought great pressure. In addition, as a former state-owned enterprise, the personnel structure of Anyang Prachanda was aging and the burden was heavy. Under the circumstances that the industry as a whole was good, the company had reached the point where it had maintained the minimum wage for employees.
The same problem also faces Chongqing Beibei. It used to be one of the four major state-owned pharmaceutical glass factories in the past. Now, due to the deterioration of the system and the deterioration of the external living environment, the development of Beibei, Chongqing, is still struggling. At the same time, in the turbulent New City planning and the transformation of the old city, Chongqing Beibei is facing relocation, which has created a huge funding gap.
Different from the above two companies, Chengdu Plains, a company with a history of only 30 years, is a private enterprise, but it has the same confusion as the first two companies in terms of cost control. "Natural gas prices have risen from 1.7 yuan to about 2.4 yuan, and logistics transportation costs have also increased by 20% to 30%." Li Si, general manager of Chengdu Plains, told reporters that the company is only on the natural gas price increase every month. The increased cost is as high as 1 million yuan. However, for the acquisition of NIPRO, Li Si said that it has performed quite high-profile: "We did not sell the company, but a joint venture with NIPRO." She said that Chengdu Plain aims to improve its product quality through a joint venture with NIPRO and Technical strength. With the price unchanged, we will upgrade the quality of our ampoule products, and introduce relevant energy-saving technologies to reduce the unit energy consumption of drug glass production.
Although the three companies have their own rhetoric, there are different views in the industry. “As a state-owned enterprise, the development of Beibei, Chongqing is constrained by the system, and it is bound to be painful and hesitant to rely on joint ventures. As a private enterprise, Anyang Prachanda and the Chengdu Plain are both faced with the dilemma of succession, and it may be their joint venture to realize the realization of the enterprise. One of the important reasons," said an industry insider who did not want to be named.

The mysterious NIPRO company

In these three cases of mergers and acquisitions, the ownership structure and the joint venture have become one of the most important topics discussed and discussed in the industry. "According to the assessment of a third-party agency, Chengdu Pingyao Pharmaceutical Co., Ltd. assessed the value of its assets and assets worth 150 million yuan, and the Anyang Prachanda Asset Appraisal Value was about 170 million yuan." A person familiar with the situation told reporters that In the acquisition of three companies, NIPRO is in a controlling position.
Ping Yuyan, chairman of Chengdu Plains, admits that in the acquisition of NIPRO and Chengdu Plain, NIPRO’s shareholding was 60% and the price was RMB 78 million. The Chongqing Beibei and Anyang Prachanda vaguely stated that the Japanese are in a controlling position. “This is the first condition for Japan’s acquisition.” Tan Zhiqiang, the new director of Chongqing Beibei, said that according to the initial agreement, both parties will jointly invest in building a new joint venture factory in Chongqing.
So, what exactly is an NIPRO company? When did it start to pay attention to the Chinese market? What is the purpose of its acquisition of the above three companies? What will it do in the future?
It is understood that NIPRO is a listed company headquartered in Osaka and a branch in Tokyo. Its industry covers a wide range of areas. The three main pillar businesses are medical devices, pharmaceuticals, and equipment. “In terms of pharmaceutical packaging materials, the company is the general agent for NEG glass tubing and has a cooperative relationship with well-known drug packaging material R&D and production enterprise Lang Yue. It has a vial manufacturing business but has not produced an ampoule.” China Pharmaceutical Packaging Association The person in charge said that.
"At present, the domestic use of the ampoules machine is in fact the NIPRO invention." A number of industry sources confirmed that at the beginning of our country's introduction of the production of ampoules technology, from the NIPRO company purchased several ampoule production machines, the machine soon imitation production in the country. Because the accuracy of the domestic pipe at the time did not meet the requirements of the automatic online control and inspection of the NIPRO ampoules, the ampoules that were copied later removed the functions, which also made the production level of ampoules in our country gradually widen from the developed countries. "Perhaps NIPRO saw this gap and learned about the development of China's safety industry in the process of introducing its safety machine in China, so it chose this product to enter the domestic market." Li Rucheng, an expert in the production and training of the company, told reporters that NIPRO has a long-standing interest in the Chinese pharmaceutical packaging market. The leader of the NIPRO company that led this series of acquisitions was former chief of the technical department of the Shanghai National Thermo Vacuum Bottle Factory (NIPRO sole proprietorship). After the closure of the factory, he was transferred to the NIPRO company’s overseas export section chief. Especially the Amnesty market is more familiar. "Actually, the agreement between NTPRO and Chengdu Plain was signed as early as April this year."
The reporter interviewed Miss Wang, the person in charge of NIPRO's Shanghai office, when she was rejected. She said: "This acquisition is a big project for NIPRO company. It's not clear in one or two sentences. At present, the acquisition is not over yet. The specific situation is not disclosed." She said that NIPRO not only expands related businesses in China, but also in India. The related acquisitions were also carried out and partially completed, but the situation "is equally inconvenient to disclose."
Informed sources told reporters that the mysterious NIPRO company is still in constant contact with other Chinese production companies. About two months ago, NIPRO had contacted Jinan Linuo Glass Products Co., Ltd. Although the details were not known, a person close to Jinan Linuo said that NIPRO has issued an offer to Jinan Linuo and expressed its desire to For further communication. However, Jinan Linuo is one of the best pharmaceutical glass bottle manufacturers in China, both in terms of breadth of product range, technology research and development strength, and development of overseas markets.

The destiny of the industry is uncertain

"What does NIPRO want to do?" Many in the industry are guessing.
The new medical reform has brought extreme excitement to the Chinese pharmaceutical market. Such excitement includes both domestic and foreign pharmaceutical manufacturers, as well as pharmaceutical-related upstream and downstream industries. The pharmaceutical packaging industry is no exception. “In recent years, more and more foreign companies have come to consult on investment issues in the Chinese market.” Cai Hong, secretary-general of the China Pharmaceutical Packaging Association, told reporters that there will be only one or two consultants in the past few years. Receive more than 10 such visitors. This shows that foreign investment in the pharmaceutical industry began to spread from the pharmaceutical industry to the pharmaceutical packaging industry.
In the pharmaceutical packaging industry, Schott, a German company, caused a collective boycott of the pharmaceutical control glass bottle industry in Suzhou in 2006 when it invested in the construction of a factory in Suzhou. However, Schott established a controlled bottle production plant in Suzhou. Although its investment scale has shrunk under the interference of industry organizations, there are new expansion plans this year. In the same year, German GERRESHEiMER company and Shuangfeng Glass Company established two joint venture factories in Zhenjiang and Danyang. Today, Nipro, a Japanese company, has also begun its massive expansion into China.
“Since the SCHOTT Glass Management Division has agreements with domestic companies, the competition between its Suzhou plant and domestic companies is not very clear. While the Shuangfeng Glass Company clearly stated in the joint venture that the foreign party must not use technology to invest in shares, the Shuangfeng brand cannot lose it. , foreign markets can not be limited and other conditions, so the impact on the Chinese glass industry is not too much." An industry source said, but the entrance of NIPRO company is worthy of vigilance: Why did it acquire such a large share of the domestic market companies? Why doesn't it start from the vial bottle, but choose an amp? What is the status of the joint venture? What will be brought to China's Ampoule market?
An industry expert said that from the perspective of the introduction of foreign capital in China's pharmaceutical industry and medical device industry, "market-for-technology" is not successful, and it is impossible to obtain technology spillovers through joint ventures. For Amnesty production, what domestic companies lack is not technology, but funding and policy support. "This industry technology is not a problem, as long as there is capital investment, there are good equipment, we can produce a good product."
Therefore, some people in the industry began to worry: If NIPRO is willing to lose money for several years at the beginning of China's entry into China and continuously improve its product quality without raising its price, local security companies will be unable to hold off anyway. In the future, the market will inevitably be monopolized by it. Even the pharmaceutical industry must be controlled by others.
In addition, there are concerns from the Xilin bottle company. The person in charge of a Chongqing company stated that NIPRO did not have an ampoule production business to enter the Chinese market, and it may be that it did not cause vigilance to the Xilin bottle manufacturers. However, it may be able to enter into the domestic vial market through an agent NEG pipe at an appropriate time. At that time, the pharmaceutical glass industry in China will be in critical condition.
Intriguingly, during the acquisition of these three companies, industry information was closed as usual, and NIPRO intentionally or unintentionally used this closure. “We also knew that NIPRO had contact with three companies at the same time. It was just that Japan wanted to choose a joint venture between the three companies for joint ventures. It also worried that NIPRO would become a threat to oneself when they talked with other families, so they actively tried to promote it. However, it is not expected that all three will be included in the bag. If we think of it occupying such a large market share at once, we are beginning to play drums in our hearts.” A related person from one of the three companies transmitted anxiety and confusion.

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