7 Key Steps to Launch a Successful Corrugated Box Manufacturing Plant

At present, the demand for cartons as packaging boxes in the market is very considerable. Many customers have investment intentions in the box manufacturing business but don’t know much about what needs to prepare for a corrugated box manufacturing plant.

Today, We will mainly share the problems that may be encountered in the process of setting up a corrugated box manufacturing plant, hoping to help those entrepreneurs who are purchasing equipment and people who are preparing to open the carton factory.

Generally, people who want to start a cardboard box manufacturing business will ask me the following questions: What box making machine is needed for a new carton factory? How much labor is required? Is corrugated box manufacturing profitable? Is it cost-effective to build a corrugated box manufacturing plant by yourself or to lease it? What is the appropriate size of the factory?

Things need to prepare for a corrugated box manufacturing plant

1.Qualification

First, you need to go to the relevant department to apply for the documents and qualifications required for opening a carton factory, such as:
(1) Industrial and commercial office: apply for an industrial and commercial business license;
(2) Health Bureau of the Ministry of Environmental Protection: apply for a health permit;
(3) Taxation Bureau: apply for tax registration certificate;
(4) Other qualification documents required by local laws

2. Venue

Choose a site with convenient transportation, preferably in or near an industrial park, which is convenient for business expansion and can also reduce transportation costs. For the site area, if your carton factory purchases cardboard and processes semi-finished products, then the site needs about 300-600 square meters; if you need to produce cardboard, then you need a larger area. And also set aside storage areas for raw materials, semi-finished products, and finished products.

3. Funds

Generally, to open a corrugated box manufacturing plant, the places that need to be invested are: factory rent (except for funds built by yourself), carton machinery and equipment costs, Raw material cost, worker wages, management costs, working capital, etc.

4. Corrugated box manufacturing machine

1) Corrugated cardboard production line: 2/3/5/7 layer corrugated cardboard production line, the price is different according to the speed and the width of the cardboard.

2) Flexo Carton printing machine: There must be a printing slotting machine or printing die-cutting machine, manual, semi-automatic, and fully automatic. The automatic leading edge high-speed printing slotting machine is a little expensive, but the printing effect is very good, production speed is fast, and no manual operation is required; the manual printing slotting machine is cheap but requires manual operation by workers.

3) The carton forming equipment needs to have a box stitching machine or a box folder gluer, which is also divided into manual, semi-automatic and fully automatic. The manual box stapler is the cheapest. The cost of the box folder gluer is higher. If the order does not require box glue, no need to consider it for the time being.
4) Other auxiliary equipment:
a. The paper separator or thin knife machine cuts the cardboard into the factory into the required cardboard size. The functions of these two devices are the same, but the precision paper separation effect is different. If you want to save costs, you can consider starting a paper separator;

b. Flat creasing machine: It is used to produce cartons of opposite sex, and the cartons with relatively high processing precision.
c. Packing machine: After the carton is formed, it is packed in bundles, which is convenient for transportation and stacking.

There are also many other equipments: stacking machine, flute laminating machine and other equipments, customers need to purchase according to their needs.

5. Number of workers

A printing press master, a paper delivery master, a nail box master, a packing master, and a general worker can meet the requirements of the production task. There must be good technicians, because skilled technicians, especially printing masters, can not only improve work efficiency, speed of plate placement, and most importantly, print quality. In addition, a small number of sales personnel are needed to open the sales market asap and create sales performance and profits for the factory as soon as possible.

6. Market and customers

At the beginning of the factory establishment, carton factories are looking for customers at price. They need to be trained slowly, and they can be stabilized with a good service attitude and stable quality. After the technology and business are stable, customers can be selected. Customers who remit in a timely manner are left with priority supply, and customers who are not in time for payment and with low demand and complex styles gradually fall backward or even give up.

7. Profit margin in carton manufacturing

The gross profit margin of carton factories is generally between 10% and 30%. Different carton factories have different proportions of costs due to differences in raw material procurement, equipment technology, and personnel structure, which ultimately affects product gross profit margin. How to achieve high profit and low cost?

1) Control the purchase cost. The material cost of the carton factory accounts for the vast majority of the total cost. The high is 70% to 80%, and the low is close to 40% to 50%. The focus and source of enterprise cost control start from the procurement cost.
2) Supplier management. Supplier’s selection and admission system. The establishment of reasonable procurement policies, objectives, and selection of ideal suppliers to open up good material supply channels are important conditions for ensuring normal production, reducing material consumption and increasing economic benefits.

Of course, controlling corrugated box manufacturing automatic plant cost does not mean purchasing the cheapest raw materials, cheapest machines or other auxiliary equipment, but choosing appropriate carton machinery and equipment and other necessary items for the factory according to the production needs and the development stage of the factory .

There is a saying in China: sharpening knives does not cut firewood by mistake, choosing a machine with good quality, suitable price and a supplier with good service can save a lot of time, manpower and money in production, communication and other aspects.