China packaging firm reaps rewards from food safety law

By Rory Harrington

- Last updated on GMT

Related tags Food

China packaging firm reaps rewards from food safety law
A specialist packaging company in China has said the newly implemented food safety law has boosted business as it announced it had secured a lucrative contract with the leading domestic meat processor.

Shiner International said this week it has signed an agreement to supply coated food safe packaging to the country’s largest meat processor, Shineway Group, in a deal that could be worth more than $7m a year.

Safety law boost

The packing company said it believes the food safety law that came into operation at the beginning of June this year in China was already helping it recover from the tough business climate triggered by the global economic downturn.

Shiner president Qingtao Xing said: “The passage of the new Food Safety Law that went into effect on June has impacted many food processing companies in China, causing them to find suppliers of coated materials with barriers designed to keep bacteria out and freshness in the package. This is a strong ray of light in what has been a difficult past for Shiner, due in large part to the global economic recession.”

Jian Fu, Shiner CEO said the company had anticipated growth following the enactment of the food safety legislation overhaul that came in the wake of the melamine-tainted milk scandal in 2008.

“With the positive economic indicators in China and implementation of more stringent food safety laws, the Chinese demand for our state-of-the-art food safe packaging films should continuously increase.”

Capacity expansion

Shiner recently announced it was to receive more than $4m in government funding to expand its food safety packaging operations in a bid to meet growing demand for the products and reduce domestic reliance on imports.

The company said the cash would be used to expand capacity at its plant in Hainan from its current level of 15,000 t/a to 50,000 t/a by 2013.

Shiner is a US corporation that has its primary operations in China. Headquartered in the city of Haikou, its produces coated packaging film, shrink-wrap film, common packaging film, anti-counterfeit laser holographic film and colour-printed packaging materials. Around 60 percent of the company’s customer based is located in China.

Related topics Processing & packaging

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