China is now producing 9% of the world’s toner needs, 50% on what it was delivering 12 years ago. At the same time, the country is producing 28% of the Aftermarket demand for toner.
So says imaging industry expert Graham Galliford who has spent his career focusing on the toner industry. According to Galliford, China’s growth came as a result of joint-ventures with western OEM and independent toner manufacturers.
Galliford spoke to 158 delegates attending from 23 countries at the RemaxWorld Summit 2016 saying the Chinese industry continues to take market share from OEM and third-parties in regions outside of China.
Galliford pointed out the Chinese toner manufacturing industry is only operating at 60% capacity and as a result is producing more toner than what is needed, and dumping it in various regions at ridiculous prices. He warned this is not sustainable and the industry can expect to see closures and amalgamations in the future. As a result of low profits, the industry is facing investment declines in manufacturing plant enhancement as well as research and development.
He also noted problems still exist in the reliability of the supply due to the limited R&D. Because the Chinese market follows the OEM lead, it is particularly vulnerable, unless it develops an OEM toner industry of its own.
