Shengda Print explores new business with digital technology

Established in 2000, the evolution of Shengda Print mirrors the historical development of China’s wider printing industry. Starting out printing business cards, the company’s product line soon expanded to encompass a diverse range of print, from brochures and magazines to labels.

However, as the print volumes of commercial products like business cards and magazines waned, the company ventured into new product segments, including labels. This has opened entirely new business opportunities for Shengda Print. For example, a project has it manufacturing around 100 million customized fans using self-adhesive labels to apply clients’ logo and promotional information.

The past 24 years have witnessed remarkable growth at Shengda. In 2023, the company’s turnover reached 2.85 billion RMB (400 million USD), of which the label business accounted for about 20 percent, the largest single product category.

The wide range of products printed by Shengda is mirrored in the variety of printing and finishing equipment, with parts of the factory set up for different products requiring their dedicated machinery.

This plant list includes sheet-fed offset presses, die-cutting machines, folding and gluing machines and platemaking machines. The Yongcheng factory, built in 2017 and operational in 2018, now houses over 100 printing and finishing machines.

Digital transformation
Shengda Print’s unwavering focus is on short-run orders, capitalizing on China’s booming online platforms and a younger generation of consumers.

‘With millennials and Generation Z emerging as key consumers, the market has evolved,’ says Cui Wenfeng, founder and chairman of Shengda Print. ‘These new generations demand more personalized, customized, and short-run orders with variable data, which has driven growth in the digital printing sector. The rise of digital presses is meeting these changing expectations with greater flexibility and efficiency.’

Looking to expand its short-run label business, Shengda signed an agreement to purchase five Durst digital label presses at Drupa 2024, a total investment of 50 million RMB (over 7 million USD).

Christoph Gamper, CEO of Durst Group, comments: ‘The Durst Group has been at the forefront of digital printing technology research for 25 years. Since my first visit to China two decades ago, I’ve been continuously impressed by the country’s rapid evolution and market growth.

‘This collaboration with Shengda marks our first partnership, but we quickly discovered shared values and visions for future development, which form the foundation of this promising cooperation.’

The first three Durst Tau 510 RSCi digital presses have now been installed at Shengda Print. The presses have a maximum printing speed of 100 m/min, print resolution of 1,200 x 1,200 DPI and a maximum Pantone coverage range of 95 percent.

‘So far, the performance of these digital presses has fully met our expectations,’ shares Wenfeng. ‘They can not only meet our technical requirements for personalization of label products, but also operate at a very high speed. Taking into account aspects like time, labor, plates and raw materials that can equal savings, they offer distinct cost-effectiveness advantages over offset printing.’

“These new generations demand more personalized, customized, and short-run orders with variable data, which has driven growth in the
digital printing sector”

Durst’s Gamper shared his astonishment after visiting Shengda’s Yongcheng factory, which in addition to its large fleet of equipment, employs 2,000 people. He was particularly impressed by the scale of the operation, its fine-tuned plant management, and the high level of automation. This experience further solidified Durst’s confidence and determination to deepen their exploration of the Chinese market.

Adds Henry Cheng, CEO of Durst China: ‘We entered the Chinese market eight years ago with a focus on leveraging technological innovation to address our customers’ real-world production challenges. Over this period, we’ve helped clients unlock new opportunities through digital printing technology and have already seen some successful implementations in China. Now, we’re excited to support Shengda in becoming our next success story in this space.’

Durst has established a 24/7 service system for its local customers in China, thanks to its partnership with Haoxi, a trusted agent for over 12 years.

Says Haoxi: ‘The collaboration with Shengda presents a unique challenge, as more than 95 percent of Shengda’s orders come through the Internet, with a daily capacity of 80,000 orders. Its advanced internal ERP system, which governs the entire production process, is now integrated with the three new Durst digital presses to efficiently handle the massive volume of online orders.’

Adds Cui Wenfeng: ‘Taking into account the current label business volume of Shengda Print and the potential of the Chinese market, the five digital label presses we have already ordered are far from enough. In the future, we will deepen our cooperation with Durst Group.’

Digital ecosystem
Durst is more than just a press supplier. The company has become an important partner for Shengda in its overall digital transformation.

Martin Leitner, product manager for label and flexible packaging at Durst Group, explains: ‘China is a very special and challenging market, with the ultimate pursuit of label quality and the strict control of costs. As a professional digital technology provider, Durst is fortunate to participate in the digital transformation of Shengda. In addition to high-speed, high-quality digital printing equipment, we also have comprehensive supporting software to help customers create a complete digital ecosystem.’

Investing in digital printing equipment is a small part of Shengda Print’s digital transformation. A comprehensive ERP system now covers every process from online ordering, customer approval and production scheduling to pre-press file processing, platemaking, printing, finishing and packaging for delivery. Shengda Print has now achieved full process automation.

During the visit, L&L saw all printing plates in Shengda’s factory being loaded automatically. The plates are transported to each press via automated robotic arms according to the production schedules defined by the ERP.

At the packing stage, the company is equipped with AGVs (Automated Guided Vehicles) to move finished products into stock.

Logistics hubs
As its business expanded, Shengda Print set up a centralized order processing center in Zhengzhou and four production plants in Yongcheng, Chengdu, Tianjin and Tianshui. These form a nationwide network that ensures prompt order delivery throughout China, with next-day delivery on most orders.

The company uses AI technology at the front end to solve customers’ pain points in designing and specifying labels.

Cui Wenfeng says that an increasing part of the company’s business comes from trade supply to other label converters. ‘For some orders, the price is lower from us than what they produce by themselves.’

“More than 95 percent of Shengda’s orders come through the Internet, with a daily capacity of 80,000 orders. Its advanced internal ERP system governs the entire production process to efficiently handle the Shengda installs first three Tau 510 RSCi presses massive volume of online orders”

The company has established its own logistics hubs, which include highly efficient warehousing and inventory management systems. This works up and down the supply chain. Raw materials can be sourced and delivered in a timely manner, significantly reducing production lead times.

At the same time, optimized routing and advanced tracking technology guarantee the on-time delivery of finished products, even for urgent orders. Shengda runs its own fleet of 2,000 delivery vehicles, including large trucks and smaller vans.

Such is the flexibility of this system, which allows Shengda to supply its customers with raw materials and finished label products more efficiently than the OEM. Explains Wenfeng: ‘most of our clients have a continuing demand for printing consumables and paper, but each time only a very small quantity, like just one can of ink. This puts huge pressure on their suppliers’ delivery systems. However, for Shengda Print, relying on our existing logistics system – we don’t need to expand warehouses or recruit extra staff – we can carry out these deliveries on the return journey of our regular shipments. This requires a massive data analysis system, which is precisely where Shengda’s strength lies. Shengda is committed to becoming a comprehensive and innovative service-oriented company.’

This innovative logistics development sets a new benchmark in the labels industry.

Shengda Print now has plans to take this model outside China. ‘We are actively formulating strategies,’ says Wenfeng. ‘With the continuous evolution of the Internet and logistics infrastructure, geographical boundaries are becoming less of a constraint.

Armed with the rich production and service expertise amassed in the Chinese market, we are eager to extend our high-quality services to international clients, solidifying our position as a global industry player.’