Stock Guru Profile DRGG
China’s Rapidly Expanding Middle Class
Dragon International’s business is packaging in a nation that has focused on manufacturing. These products are sold both to China’s rapidly expanding middle class and to manufacturer’s of exports. The middle class consumer in China has typically relocated from rural area where open market shopping was the norm. As the middle class becomes urbanized and begins to shop in big box stores they desire the same high quality world class packaging the rest of the world expects.
China’s consumer expenditures are growing from approximately $450 billion today to close to $1 trillion by 2010. Between now and 2010 China’s demand growth will increase 5 percent per year. China has a large, young, rapidly growing population which has been leaving rural areas to live and work in urban centers. Some 700 million of China’s 1.4 billion population now live in cities.
More than 70 percent of the world’s top retailers have operations in China. Western names are gaining ground, especially France’s Carrefour, UK’s Tesco, and Wal-Mart. These Big Box stores require quality packaging.
Exporters Demand High Quality Packaging
China’s growth in exports require high quality packaging. The future of specialty paper global forecasts to 2011, indicate global consumption of specialty papers will reach 23.7 million metric tons by 2011. Asia is the fastest growing region for specialty papers, forecast to reach 6.7 million tons in 2011. Within that region, China shows fastest growth with its largest segments being specialty papers for flexible packaging applications, with consumption estimated at 500,000 tons in 2011.
China currently produces:
- 75 percent of the world’s toys
- 50 percent of the world’s cameras
- 50 percent of the world’s telephones
- 30 percent of the world’s television sets
- 70 percent of the world’s textiles
China’s paperboard and packaging demand growth is being driven not only by a large, low cost labor pool and local end use consumption but by its growing role as a global manufacturing center. China has a rising presence in the folding carton industry.
Stay tuned. Dragon International has placed itself squarely in this growth sweet spot. We will next examine the pharmaceutical industry and Dragon’s perfectly positioned plan for sales and domination.
DRGG – Dragon International Group Corp.
Bldg 14, Suite A09
29 Dongdu Road
International Trading Center
Ningbo, 315000 China
Website: http://www.drgg.net
Phone: 86-574-56169308
Fax: 86-0574-56169378
Contact:
Andrew Brown
ROI Group Associates, Inc.
Tel: 212-495-0202
Email: abrown@roiny.com
SOURCE: Dragon International Group Corp.
About Dragon International Group Corp. Dragon International Group Corp. (OTCBB: DRGG) is one of China’s leading manufacturers and distributors of specialty paper products and packaging materials. DRGG is operating as a manufacturer and distributor of paper and integrated packaging paper products. DRGG has a distribution network covering east and central China. Dragon and its subsidiaries have cultivated strategic relationships with several of the world’s largest and well-known manufacturers of paper and specialty packaging products. For more information, please visit http://www.drgg.net.
Safe Harbor and Forward Looking Statement: Certain statements set forth in this article constitute “forward-looking statements.” Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance or achievements. Such statements are not guarantees of future performance and are subject to risks and uncertainties that could cause the company’s actual results and financial position to differ materially from those included within the forward-looking statements, including the Company’s ability to obtain sufficient financing to fund both its internal growth opportunities and acquisition strategy. More information about the potential risks and factors that could affect the Company’s business and financial results is included in the Company’s filings, available via the United States Securities and Exchange Commission at http://www.sec.gov/.
Disclosure: Pentony Enterprises LLC was compensated $22,500 from non-controlling third party ROI Group Associates for profile coverage. Pentony Enterprises LLC is not a registered investment advisers or broker/dealers. Pentony Enterprises LLC makes no recommendation that the purchase of securities of companies profiled in this web site is suitable or advisable for any person or that an investment such securities will be profitable. In general, given the nature of the companies profiled and the lack of an active trading market for their securities, investing in such securities is highly speculative and carries a high degree of risk.