Print Manufacturing in
Hong Kong & China
Both in good times and under tough circumstances, Hong Kong
and China print players remain steadfast in their mission to
under-promise, over-deliver, and continue innovating
by T eri T an
“S
upply chain disruptions” is currently the most
dreaded phrase in the print manufacturing
industry—in all industries, for that matter. The
troubles, which started soon after the pandemic
began, roiled print manufacturing in 2020,
intensified in 2021, and persist today. And there
are no quick fixes. Alas, there is no big red Emergency Stop
button, like the one on the printing machine, to press and get
a do-over.
So here we are: the major challenges affecting print manufac-
turers in Hong Kong and China—logistics logjams and higher
paper prices, for instance—have not gone away, and nor has the
pesky mutating virus. But while some supply chain issues have
shown signs of returning to a sort of normal, geopolitical chaos
is undermining much of the progress.
The conflict between Russia and Ukraine, for instance, has
impacted the supply chain, disrupted global trade, and brought
about rising inflation, says Matthew Yum, executive chairman
of Hung Hing Printing Group. “At the same time, geopolitical
tensions between China and the West, particularly with the
U.S., where many of our clients are based, have also seen some
This feature is published with the support of the
companies covered in these articles.
42 P U B L I S H E R S W E E K L Y ■ J U L Y 2 5 , 2 0 2 2
Rolls On
i n d u s t ry n e w s / i s to c k . c o m
print-manufacturing projects being moved out of China and
diverted to other neighboring countries.”
Looking at logistics, lockdowns, and
labor
©
The main issue for the industry lies in freight, says Howard
i l l u s t r at i o n
Musk, president and CEO of print management company
Imago. “The cost of shipping has skyrocketed, and finding
capacity is a problem as well. Some of our clients manage their
own shipping, and most of them are used to shipping from
Hong Kong and China. But they are not familiar with shipping
from Southeast Asia, and our experienced shipping partner has
been able to help.” Musk is seeing higher print quantities,
which means that restocking is less frequent and longer ship-
ping lead times are often tolerated and accepted. “The JIT
model of print-manufacturing only as needed in order to reduce
inventory holding costs is on a hiatus, at least temporarily.”
And while the recent lockdowns in Shanghai and Beijing had
no impact on Imago’s production—since its print-manufac-
turing partners operate in the southern part of the country—the
backlog at Shanghai Port poses a problem. “Shipments were
diverted to other ports, such as Shekou and Yantian in the
south, which caused capacity issues and new backlogs there,”
Musk says. “The clearance of all these backlogs is going to clash
with the usual peak manufacturing season, from August to
September. Over in the U.S., there is still port congestion on
both coasts, but it is down from the worst levels with less ships
 Printing in Hong Kong & China
anchoring and waiting to dock.”
Lockdowns owing to China’s zero-Covid policy have caused
uncertainties and disruptions to the economy and business
operations. “This stringent measure, which is good for curbing
the rapid spread of infections to save lives, has resulted in higher
transportation costs and logistical issues,” says Yum, of Hung
Hing. “While our facilities were not affected, some of our sup-
pliers had to temporarily cease operations. There were no drivers
to deliver the supplies, such as raw materials and machinery
components, which are needed in our own production. But the
recent situation has been much less disruptive than that of last
year.”
For now, logistics and shipping remain unpredictable.
“Scheduling for freight is tough while pricing remains
unstable,” says Francis Ho, deputy general manager of C&C
Offset. “Energy prices have been fluctuating globally, and this
issue is exacerbated by increases in raw materials, production,
and labor costs, especially in China and many Asian countries.
The Chinese yuan has been fluctuating, and we see stock mar-
kets and currencies around the world experiencing the same
situation. The pandemic has caused uncertainties, which are
made worse by geopolitical tensions in different parts of the
world. The global economy and trade have been affected, and
so are people’s livelihoods.”
Labor availability remains an issue in China’s manufacturing
sector. “It is harder to get young people, especially college
graduates, to take on manufacturing-related jobs,” Yum says.
“This short supply has pushed up labor costs in some ways. For
Hung Hing, we continue to automate our manufacturing pro-
cesses as much as possible while giving preference to less labor-
intensive projects.”
Pulp and paper problems
Imago’s publishing clients are well aware of the rising costs due
to the massive paper shortage in the U.S. market. “But paper
prices in Asia have not been rising as quickly, and they also
started from a lower level,” Musk says. “Presently, they are up
around 10% from the start of 2022. The cost of imported pulp
to China mills has increased due to the global inflation in
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energy and freight costs, while the periodic lockdowns in China
have slowed its economy and helped to hold prices down. We
are monitoring the situation closely so that we can buy paper
well in advance of any indication of price hikes.”
Russia is a major exporter of pulp and paper products, says
Yum, of Hung Hing, “but its military conflict with Ukraine
and the ensuing trade sanctions have seen these exports being
decimated. Consequently, some European paper mills have shut
down, which in turn tightened paper supply and raised the
prices. The conflict has also caused an energy crisis that resulted
in higher operating costs for many companies. Consumables
and components used in the day-to-day print-manufacturing
operations, of which many are produced in Europe, have become
more expensive. All these have contributed to spiking opera-
tional costs across the board.”
Paper purchasing and stock planning activities at Hung
Hing had accelerated at the start of the Russia/Ukraine conflict
as the company anticipated supply shortages and higher prices
due to increases in energy costs. “The majority of our orders
have arrived and we have ample stock,” says Yum, whose team
is well prepared for new orders during the upcoming peak
season. “Currently, paper prices have not fallen but have stabi-
lized somewhat. Paper shortages in Europe have pushed some
Chinese and Asian mills to increase their supply, but these
market demands have kept the prices high.”
As for C&C Offset, it mostly uses Chinese papers—art, wood-
free, lightweight coated, and artboard, for instance—for its
projects. “Pulp prices remain high, and while paper costs have
been stable recently, most of them are not coming down,” Ho
says. “We have built a healthy inventory level for our major
clients so they can get urgent reprints on time. This is a part of
our pre-manufacturing service. Post-manufacturing, we offer
warehousing and storage for printed inventories to support our
clients with their JIT fulfillment. We also offer digital archiving
and file management services.”
Doing digital and going green
The move to introduce digital printing capabilities to its pro-
duction floors has been gathering momentum at C&C Offset
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W W W . P U B L I S H E R S W E E K LY. C O M 43
 Printing in Hong Kong & China

since 2012. “Two years ago, we found that inkjet printing tech- with sheetfed offset printing growing modestly, from $183.7
nology, quality, speed, and automated workflow had finally met billion in 2014 to $192.6 billion in 2024. In that same period,
the expectations and requirements that we set out for our print however, the digital print sector will grow robustly, from
projects,” says Ho, who finds the digital printing process to be $103.1 billion to $180.9 billion, with inkjet printing
faster, more cost efficient, and greener. “Our educational pub- expanding the most.
lishing clients have definitely benefitted from our digital pro- Over at Imago, digital edge printing has become more pop-
duction line, especially for on-demand titles.” ular as an alternative to traditional stains and gilding, Musk
For shorter on-demand runs, Ho says that digital printing is says. “The ability to do this digitally means that we can more
less expensive than offset printing for quantities between 200 easily do lettering and imaging on book edges—on all three
and 800 copies. “Digital sides—and in small volumes.”
printing also provides faster UV-cured printing remains a
turnaround time—since it skips niche area, Musk says, “and we
several processes such as plate- have been using it mostly on
making, make-ready, and regis- synthetic papers. But in recent
tration adjustments—for quan- months, we are applying this
tities between 1,000 and 2,000 method to uncoated papers,
copies, and this is solely based on where a brighter and cleaner
the data from our digital result can be achieved compared
presses.” to using conventional inks.”
Adding digital printing capa- But UV-curable inks are defi-
bilities to a traditionally offset- nitely getting more attention
based production floor is now and application. The latest study
the norm. In fact, according to from Allied Market Research
the latest Smithers industry stated that the global UV-curable
report, the print market is Jackson Leung (third from left), CEO of C&C Joint Printing Co., ink market size, which was
becoming increasingly digital, at the company’s Digital Technology & Innovation Center around $1.1 billion in 2021, is

C&C Offset Enhances Its Key Internal Processes

When C&C Offset commemorated its 40th anniversary in 2020, it
also kicked off a mission to digitally transform its printing floor. “The
efforts to improve our ERP and manufacturing execution system
(MES) have intensified,” says Francis Ho, deputy general manager.
“We now have a real-time digital control system for our conventional
offset printing and binding presses to provide a quick overview of
project status, real-time KPIs on machinery condition and utilization,
as well as automatic data collection to speed up our internal work-
flow while reducing paperwork. An electronic alarm system has also
been added to increase the security of our printing floors and
premises.”
More conventional printing equipment is being replaced with
machines that are Industry 4.0 (i4.0)–enabled. “New machinery
that we bought last year, including the two digital presses—Canon
Océ ProStream 1000 and Fujifilm Jet Press 750S—arrived very late
due to the pandemic and logistical chaos,” Ho says. “We are now
busy linking these presses and enhancing the network by adding an
automated guided vehicle (AGV) system to enable the tracking of all
processes, including the inventory of work-in-progress, materials
used, and logistics.”
And there is the recently launched Integrated Energy Manage-
ment Platform (IEMP) for its operations management. “This covers
ERP and MES for energy and carbon footprints,” Ho says. “Regular
analysis based on data collected on, say, our electricity, water, air,
and fuel usage as well as from our automation, cooling, lighting,
ventilation, and transport systems will enable more efficient use of
our energy and resources.”
Reports on real-time carbon emissions further help to pinpoint
areas that need further work in terms of lowering the emission rate,
Ho says. “With our systems integrated and linked with servers and
sensors, we are able to quickly review overall energy consumption for
further monitoring and analysis, thus contributing to our efforts in
achieving a greener footprint and enhancing sustainability. The
manufacturing chain must reform to maximize the value of today’s
print media, and this goal is good for us, our clients, our industry, and
the one planet we all have.”
Then there is the ongoing integration of all of C&C Offset’s
business segments and operations, including book and commer-
cial printing, packaging, security printing, project management,
warehousing, and logistics. “With faster, secure, and more accu-
rate data in our hands, we can react faster to client demands by
maximizing our capabilities and resources,” Ho says. “It is about
leveraging our expertise across segments and production facili-
ties to offer unique print ideas and solutions to clients. And this is
just the start. Our exploration and implementation of new environ-
mental initiatives, production automation, and system integration
to achieve Smart Manufacturing and i4.0 within C&C Offset has
barely begun.”—T.T.

44 P U B L I S H E R S W E E K L Y ■ J U L Y 2 5 , 2 0 2 2
 C&C

Maximizing the Value of

Today's Print Media

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ISO 9001 : 2015 ISO 14001 : 2015

ISO 45001 : 2018
Certificate No.: CC 260 Certificate No.: CC 1617 Certificate No.:
Certificate No.: CC
CC 2439
2439
 Printing in Hong Kong & China
estimated to hit $4.5 billion by 2031. The surging demand for
such inks is due to its reduced drying time, high bonding
quality, low viscosity, and low VOCs. The report also stated that
the publications and printing segment accounted for the largest
share of the market—at around 40%—in 2021. The Asia
Pacific region is expected to be the fastest-growing market for
UV-curable inks between 2022 and 2031, overtaking Europe,
which currently has the biggest share.
Meanwhile, Hung Hing is experimenting with mineral oil–
free (MOF) inks, which include vegetable oil–based inks, to
comply with legislation in some markets, such as France. “We
are in the testing stage and will be able to integrate this into
our system very soon,” Yum says. “Though such inks are more
expensive, we anticipate that this will be a trend going forward,
especially in the EU markets, where printed matter and pack-
aging will be required to use MOF inks.”
Moving beyond print manufacturing
For print players in Hong Kong and China, business diversifica-
tion is essential to their bottom lines and survival. Just as their
publishing clients have moved to add digital products to their
print offerings, these manufacturers need to go beyond print as
well. But thinking outside the box is not for the fainthearted.
Take Hung Hing as an example: in recent years, the company
has leveraged its industry relations and experience to connect
upstream and downstream business partners and venture into
new areas with unique opportunities. Yum Me Play, an experi-
ential learning platform for young children, is one such area.
Here, the Hung Hing team focuses on developing high-quality
More Expansion and Investment at Hung Hing
The second phase of Hung Hing’s production facility in Hanoi, Vietnam,
is progressing as scheduled, with full operations commencing by the
end of this year. “We have also pumped nearly $45 million into con-
structing a new site specializing in smart-printed packaging products
in Wuxi, about 160 kilometers northwest of Shanghai,” says Richard
Lim, chief operations officer. “This plant, upon completion in 2023, is
capable of producing 25,000 tons of products annually.”
Two new KBA presses—a five-color and a six-color for the Shenzhen
and Hanoi operations, respectively—will be installed in the first half of
next year. “Meanwhile, a recently installed Fuji Jet Press capable of
B2-format digital printing is already supporting low print runs at our
Wuxi factory,” Lim says, pointing out that most of the company’s perfect-
ing presses have been reinstalled with LED ink-printing capabilities.
The rising demand for board games has seen Hung Hing expanding
and investing in this particular segment. “We have invested in new
post-press machines, including automated lines for playing cards and
jigsaw puzzles,” says commercial director Christopher Yum, who has
obtained relevant licenses from major game manufacturers to start
producing these products soon.
Business-wise, Hung Hing expects its export segment to grow by
more than 20% this year. “We remain optimistic, especially now that
our Vietnam operation has started and is expanding fast,” Yum says.
46 P U B L I S H E R S W E E K L Y ■ J U L Y 2 5 , 2 0 2 2
books, toys, and interactive games that are packaged as gift sets
focusing on STEAM topics. This September, Hung Hing is
launching the Yum Me Play flagship store in New Town Plaza,
a popular shopping mall in Shatin, Hong Kong. The 6,700-sq.-
ft. edutainment space will combine experiential retail and
interactive thematic learning to engage children and parents.
“Innovative expansion at the right time and in the right area
has always been our mission,” Yum says. “We specialize in chil-
dren’s books. With Yum Me Play, we offer both online and
physical retail platforms for our publishing clients to sell their
products to an even wider audience. When our clients sell more,
we print more. This win-win situation is the model we adopt
at Hung Hing.”
h o n g ko n g e c o n o m i c t i m e s
©
Christopher Yum (l.) and Matthew Yum of Hung Hing
“We firmly believe in the future growth and potential of the packaging
business. The rise of the middle class as well as the rapid growth of
e-commerce in many Asian countries have created a huge demand for
packaging products.” But his domestic business has declined owing
to weaker consumer sentiments amid periodic lockdowns in China.
Following last year’s shipping and logistical chaos, many clients
had planned their projects for completion in the first half of 2022,
Yum says. “These orders are ready for shipment or will be soon, which
will result in a surge in transportation and deliveries. Fortunately,
freight rates have declined from their peak of between $10,000 and
$12,000 to the U.S., and $12,000 to the U.K. and Continental Europe,
for a 40-foot container. More inquiries have come in following these
lower freight rates.”
Last year, Hung Hing won the Smart Energy Excellence Award for
its sustainability efforts. Among its biggest initiatives was the instal-
lation of a 526-kWp solar power system at its Tai Po headquarters,
which is capable of offsetting 113 tons of carbon emissions per
annum. “The use of FSC and PEFC-certified papers, soy inks, and
water-based varnishing materials effectively reduced our total VOC
emissions from 361 tons to 96 tons between 2016 and 2019,” Yum
says. “We continue to look for areas to expand, improve, and make
more sustainable and eco-friendly.”—T.T.
C

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 Printing in Hong Kong & China
Then there is STEMplus, one of Hung Hing’s portfolio com-
panies, which is all about inspiring a passion for science and
technology from an early age. Last December, STEMplus spon-
sored the first Inter-School AI Formula Edge competition,
which was held over three days at the AsiaWorld-Expo. Around
70 teams from 21 schools participated in a custom-built car-
racing competition that required STEM and AI applications. It
was aimed at enhancing students’ abilities to write AI programs
while motivating them to find solutions without using expen-
sive gadgets and software. At the same time, such events con-
nect participants and the audience to the STEM products that
Hung Hing manufactures for its publishing clients.
Getting back to normal and forging
ahead
At C&C Offset, activities are back to pre-pandemic output
levels. “Our senior management staff had maintained a certain
level of in-house production capabilities during the pandemic,
which went a long way toward stabilizing our workforce, manu-
facturing output, and logistical support,” Ho says. “We have
been able to fulfill client demands despite the chaos caused by
the pandemic due to the strength of our business continuity
plan and our ability to execute it under such tough
situations.”
For Musk, of Imago, the Section 301 tariff action on imports
from China—with 7.5% on most types of books—is a burden
to the print-manufacturing industry. “The larger impact is on
stationery products, such as journals and planners, with a 25%
tariff,” Musk says. “Imago has been in the fortunate position of
Imago Sees Growth and Exciting Market Trends
“Hectic” describes the past two years at Imago. “Our publishing cli-
ents saw strong demand for print books, particularly last year, and
that was great for us,” says Howard Musk, president and CEO of the
print management company, who adds that the first half of 2022 was
a little slower than the record 2021.
“There is increasing interest in printing one-color hardcovers over-
seas, mostly because of the potentially longer lead times in the U.S.,
but such orders tend to be in higher volumes,” says Musk, pointing
out that books with complex finishing are still heading offshore. “Graphic
novels and comic books, which are doing well, often require creative
use of foils and varnishes, and there is a continuing trend toward
issuing collected editions as well as deluxe versions in slipcases or
clamshell boxes with additional print inserts. Journals and planners
remain popular, which we often produce in Southeast Asia or Korea,
as there is a 25% tariff if these are manufactured in China.”
Travel books regained popularity as restrictions began to ease, and
the demand, says Musk, “is picking up with more frequent reprints.
Calendars, both wall and the boxed daily type, are popular, and these
are much more likely to have board easel stands than plastic ones,
which reflects the rising focus on reducing plastic consumption.”
Many clients are talking about using less plastic and more bio-
degradable alternatives, Musk says. “But one needs to fully under-
48 P U B L I S H E R S W E E K L Y ■ J U L Y 2 5 , 2 0 2 2
being able to offer alternate sources for these types of products
in Southeast Asia, Korea, and Europe, and we have consequently
seen a significant growth in this segment of our business. Given
the current level of inflation in the U.S., I am sure that there
will be changes to the tariffs coming quite soon, probably with
targeted reductions on those with higher tariff levels.”
These alternate print sources have also proven to be advanta-
geous whenever a title is flagged for censorship in China and
manufacturing must be shifted elsewhere. “China remains our
main source for print, especially those requiring handwork and
lots of accessories,” Musk says.
Owing to the U.S.-China tension and tariff issues, “some
clients have been looking for alternate sources outside of China
for their manufacturing needs,” says Yum, of Hung Hing.
“They may have started searching before, but now they are get-
ting serious. While it does
not mean that they are
going to abandon their
China-based suppliers alto-
gether, they may be more
keen to channel their busi-
nesses to countries such as
Vietnam, Thailand, and
Indonesia.”
But for these three print
manufacturers, there is no
time to waste on bemoaning
Howard Musk, president and CEO external factors beyond
of Imago their control. Resilience is
stand the makeup of biodegradable plastic and how it degrades.
For instance, oxo-biodegradable plastics are still plastics with
special bio-additives that degrade only under the right conditions.
The U.S. Federal Trade Commission would not allow them to be
advertised as biodegradable, and some European countries have
restricted their use.”
The Imago team is currently testing biodegradable alternatives
that use polylactic acid (PLA) derived from renewable and organic
sources such as cornstarch or sugarcane. “These may be suitable
for wrapping pallets and taping cartons,” says Musk. “It is harder to
find a suitable replacement for book shrink-wrap, as PLA plastic
does not shrink neatly.” Meanwhile, his team is starting to use
more paper-based tapes on cartons.
Imago continues to offer carbon offsetting for individual proj-
ects through its association with ClimatePartner. “This has been
expanded to include providing carbon emissions data to clients for
the projects they print with us so that they can track their own total
emissions,” says Musk, whose company was recently rated by
EcoVadis among the top 5% for corporate responsibility and sustain-
able procurement. “It is very important to our clients that the facto-
ries we work with are audited for social and environmental responsi-
bility, and we have a robust system for managing this.” —T.T.
 Printing in Hong Kong & China
in their DNA, and their can-do spirit has seen them through
the tough times, including the Asian economic crisis of 1997,
the SARS outbreak in 2003, and the tariff war that began in
2018 and is ongoing. The Hung Hing team, for one, is defi-
nitely not slowing down. “Our work continues to build on our
core expertise in innovative children’s products and paper engi-
neering to further differentiate our services from others in the
field,” Yum says.
The printing press manufacturers are not standing idle either.
Last month, Kodak unveiled its Prosper 7000 Turbo Press, the
fastest inkjet web press on the market and capable of running
up to 410 mpm (or 1,345 fpm), which is about 35% faster than
its nearest competitor. Earlier this year, Fujifilm introduced
Revoria Press PC1120, its high-speed digital printing machine
capable of CMYK printing with overlays and underlays of spe-
cialty colors in one pass.
As for Heidelberg, it has leveraged its robotics expertise to
increase Stahlfolder P-Stacker’s folding production output by
around 25%, thus reducing manual labor and increasing process
efficiencies. It also introduced the highly automated
Speedmaster CX 104, which is capable of printing on different
materials, from lightweight to carton stock, and is a good choice
for book cover printing and short runs. Manroland Sheetfed, on
the other hand, demonstrated its confidence in the China
market by opening a new Print Technology Center in Shenzhen
in June to be nearer to its existing and potential clients.
Much is also going on in the pulp and paper industry. There
is Nafici Environmental Research with EcoPulping, an innova-
tive low-carbon process for transforming agricultural wastes—
wheat straw, reed, maize stover, for instance—into unbleached
pulp to produce paper and packaging products. In the biocata-
lytic technology segment, novel enzymes have been developed
that replace harsh chemicals in the kraft pulping process as well
as extract higher cellulose yields from wood in order to reduce
the environmental footprint. Then there is the Ukrainian
startup RE-leaf, which is now selling sustainable paper prod-
ucts made from fallen leaves; the production of its first two tons
of paper used 15 times less water and emitted 78% less carbon
dioxide than the normal pulping process.
As one Chinese proverb says, “Nothing in the world is dif-
ficult for one who is determined enough to achieve it.” Indeed,
if there is a will, there is a way. And you can certainly bank on
the print players in Hong Kong and China having the will—
with a healthy dose of pragmatic optimism thrown into the
mix—to find the solutions to counter any industry headwind,
and innovative ideas to meet new market demands. ■