Conversations with Outstanding Local Suppliers

In May and July 2010, Hefei Zhongchen Light Industrial Machinery Co., Ltd. was twice invited to visit the global headquarters of Carlsberg Group and signed a 40,000BPH glass bottle beer and beverage production line project, becoming one of the leading suppliers in China that can supply complete equipment for top foreign beer and beverage manufacturers. Recently, this magazine's reporter had the opportunity to visit Mr. Zheng, the technical director of Hefei Zhongchen Light Industrial Machinery Co., Ltd., and Mr. He, the marketing director and deputy general manager of the foreign trade department. Through a conversation with a local supplier, we heard the story of a successful Chinese local enterprise that has thrived in the face of the economic crisis that swept through the European and American markets.

Modern Packaging: Hello, Zheng General Manager, could you please introduce the technical development history and current status of the beer and beverage equipment manufacturing industry in both the international and domestic markets?

Hefei Zhongchen Light Industry Machinery Co., Ltd. (hereinafter referred to as Zhongchen): The modern beer and beverage equipment manufacturing industry in China started from technical introduction in the 1980s. Looking back on the development process of the international and domestic beer and beverage equipment industry so far, we can summarize the following trends:

1. Function integration. In the early 1980s, each machine on a beer or beverage production line could only perform one function, and a production line consisted of many machines that performed a single function. Subsequently, single machines gradually developed into combination machines. One of the most representative examples is the blow-fill-seal-labeling machine produced by Krones of Germany, which integrates all the functions of a production line.

2. Intelligentization. With the gradual development of computer communication technology, signal processing technology, and online detection technology, beer and beverage equipment has gradually become equipped with functions such as fault self-diagnosis, self-protection, and automatic production quality inspection. These include functions such as EBI, FBI, automatic sugar detection and correction. The emergence of these technologies has made it possible for equipment capacity to gradually move towards high-speed production.

3. Low energy consumption. On the one hand, the energy consumption of the equipment itself is being continuously reduced through ongoing design optimization. On the other hand, companies are changing the manufacturing and packaging processes of beer and beverages to significantly reduce the energy consumption per unit product. For example, beer with instant sterilization technology is more energy-efficient than beer sterilized by traditional pasteurization methods, and the constant temperature filling of carbonated beverages is more energy-efficient than low-temperature filling, and the energy-saving effect of aseptic filling technology is even more significant than that of hot filling technology.

Modern Packaging: As one of the leading beer and beverage equipment manufacturers in the Chinese market, how does Zhongchen Light Industrial Machinery Co., Ltd. align its equipment manufacturing capabilities with global leading trends and international leading peer companies? What are Zhongchen Light Industrial Machinery's technology innovation strategies and goals?

Zhongchen: As a leading beer and beverage equipment manufacturer in the domestic market, Zhongchen Co., Ltd. always takes it as its mission to continuously improve product quality, keep a close eye on advanced technologies of international peers, and constantly provide customers with products of even better cost-performance ratio.

Zhongchen Company, as a company with decades of experience in mechanical equipment manufacturing, attaches great importance to the most cutting-edge technologies in the industry and has achieved notable technological innovations, such as the flow meter mixer and filling machine displayed at the 9th China International Beer, Beverage Manufacturing Technology and Equipment Exhibition (also known as CBB exhibition) in 2010. At the same time, we believe that exploring how to improve the stability of equipment is a common problem faced by domestic peers. In recent years, Zhongchen Company has invested a lot of resources and attention in basic work such as material processing technology, processing technology, and assembly technology. These efforts have yielded good results, making Zhongchen products increasingly stable.

When it comes to innovation goals, we not only focus on the technical advancement of equipment, but also on its stability and durability, which is equally important to customers and a necessary move to enhance the image of Chinese manufacturing enterprises.

Modern Packaging: Could you please provide more details on the latest technological innovations and achievements of Zhongchen Light Machinery Company?

Zhongchen: In the decades of development of China's beer and beverage industry, Zhongchen Company has played a pivotal role. In particular, in the beverage industry, Zhongchen Company has always been one of the top domestic suppliers.

Zhongchen Corporation's latest technological advancements and achievements include the following four innovative products and technologies:

1. Flowmeter Mixer: This is a mixer based on automatic measurement, detection, and control technology, equipped with sugar concentration compensation and blending ratio database technology, which can maximize sugar syrup consumption reduction and reduce production preparation time. At the CBB exhibition in 2010, Zhongchen Company exhibited a flowmeter mixer with a capacity of 15,000 liters per hour, and our maximum capacity is up to 45,000 liters per hour.

2. Flow meter filling machine: It uses a flow meter to precisely measure the filling volume of the container, reducing the material loss caused by the capacity changes of PET bottles due to storage, pressure, etc. It can adjust the filling capacity online, reducing the production conversion time between different beverage varieties and improving the production line efficiency. It adopts room temperature filling technology, which can reduce energy consumption.

3. Beer filling machine: It adopts the technologies of secondary vacuum extraction, centralized exhaust gas discharge, cleaning-type tabletop, and guide rail feeding cover, with a production capacity of 40,000 bottles per hour, suitable for the equipment upgrade and transformation of large or medium-sized breweries.

4. Beer and Beverage Two-Use Filling Machine: Combines beer and beverage filling technology in an organic way, providing customers with another economical configuration option.

Modern Packaging: Hello, Mr. He, in May and July of 2010, Zhongchen Light Machinery Company was invited to visit the global headquarters of Carlsberg Group twice and signed a project for a 40,000BPH glass bottle beer and beverage combination production line, becoming one of the leading suppliers in China that can supply complete equipment for top-tier beer and beverage production companies abroad. At this point, we would like to ask you to share with us the current situation of the company's global export business expansion and achievements.

Zhongchen: Currently, Zhongchen's overseas customers are distributed in nearly 60 countries and regions around the world, covering all continents, even developed markets such as Japan, Germany, Canada, and Australia. Zhongchen Light Machinery's overseas business started from the beginning of this century and experienced a period of rapid development from 2006 to 2010. From 2010 to the present, Zhongchen's total overseas orders have reached a target of 150 million RMB.

Modern packaging: being favored by many top beer and beverage manufacturers abroad means that your company has leading strengths in many aspects. Please introduce the strong technical strengths and advantages that Zhongchen Light Machinery Co., Ltd. has won the favor of overseas customers.

Zhongchen: Zhongchen Light Machinery Co., Ltd. is a top-tier enterprise in China's beer and beverage equipment manufacturing industry, recognized by the industry. We have been able to win the favor of global customers mainly due to the following advantages:

1. Strong operational and management capabilities of the company.

Zhongchen Light Machinery Co. has a history of 45 years of development. Since entering the beer and beverage equipment manufacturing industry in 1984, Zhongchen Light Machinery Co. has always been at the forefront of the industry, and all these achievements are inseparable from the stable operation and management of the company. At the same time, this is also a prerequisite for Zhongchen Company to win the affirmation of middle and high-end customers. Large groups such as Carlsberg, Coca-Cola, and Pepsi are very particular about their partners' stable operating ability, because this helps to establish long-term and trustworthy partnership.

2. Superior R&D and manufacturing capabilities

Currently, Zhongchen Company is implementing the goal of consultative sales and integration of sales and engineering services, aiming to provide our customers with comprehensive, one-stop, A-to-Z strong consulting capabilities and technical service models. The order we received from Carlsberg Group is a good example of this. The owner entrusted Zhongchen Light Machinery Company with the total integration of the beer and beverage plant engineering equipment with a capacity of 40,000BPH. Being recognized by Carlsberg Group should say that our consulting, technical, and service levels for beer and beverage plant engineering have reached a satisfactory level.

3. Strong consulting and service capabilities

Currently, Zhongchen Company is implementing the goal of consultative sales and integration of sales and engineering services, aiming to provide our customers with comprehensive, one-stop, A-to-Z strong consulting capabilities and technical service models. The order we received from Carlsberg Group is a good example of this. The owner entrusted Zhongchen Light Machinery Company with the total integration of the beer and beverage plant engineering equipment with a capacity of 40,000BPH. Being recognized by Carlsberg Group should say that our consulting, technical, and service levels for beer and beverage plant engineering have reached a satisfactory level.

4. Credibility and service, becoming a trusted long-term partner for customers.

A person cannot stand without integrity, and honesty and trustworthiness have always been the corporate culture and spirit of Zhongchen Company. Just like how Zhongchen Company took the homophone of "loyalty" - "Zhongchen" as its corporate name, we have always upheld the service philosophy of "being loyal to customers". Carlsberg Headquarters has praised Zhongchen Company many times: "We entrust projects to you because we firmly believe that you can fully meet our requirements. You are the Chinese company that provides the best after-sales service that we have seen." Domestic enterprise Wahaha has evaluated Zhongchen Company as follows: "Out of all the suppliers, we think that Hefei Zhongchen is a company that does things in earnest."

5. Top talent and team

The development of a company cannot be separated from talents, and the competition in the market is actually the competition of talents. The overseas team of Zhongchen Light Machinery Co., Ltd. has grown from a few people at the beginning to nearly 20 people today. Each employee of Zhongchen Company has paid sweat and tears for the company's development, and they are also witnesses of the company's rapid development of overseas business.

Modern Packaging: At present, the impact of the financial crisis has not yet fully subsided, so please introduce how your company has created many foreign trade orders in the overseas beer and beverage equipment market during the period of low demand. Please elaborate on your company's leading advantages, advanced strengths, and unique insights in the overseas market and foreign trade business expansion.

Zhongchen: We have always attached great importance to the expansion of our overseas market. The economic crisis of 2008 and 2009 was a huge test for the entire market, and it can be said to have been a time of sifting the wheat from the chaff. While the decision-making process of smaller clients was delayed, the latent demand still existed. For the latent demand that remained after the economic crisis, we have held on to it tightly. In this round of market conditions, we have gone from waiting for customers to going abroad and actively marketing ourselves. We have won orders and the market by relying on our strength, service, and sincerity to impress customers with latent demand.

Modern Packaging: What are your further development goals in the field of foreign trade business in the future? What are your comprehensive development goals for the global and Chinese markets in 2011?

Zhongchen: Our vision is to become a world-class supplier of beer and beverage packaging equipment. Therefore, we have three basic positioning objectives for the development of Zhongchen's overseas business:

Deepen the overseas large customer development strategy.

2.We will stick to the business structure and service pattern of taking on turnkey projects for whole factories as our main business, integrating quality resources from both the company and society to provide our overseas customers with comprehensive one-stop solutions.

3. Focus on market and service channel construction, gradually building a market and service system based on regional agency and regional service center as the main framework.

Modern Packaging: Finally, please share with us a classic case of successful cooperation between Zhongchen Company and domestic or foreign customers.

Zhongchen: Zhongchen has many successful cooperation cases with customers, such as our cooperation with well-known clients like Coca-Cola, Wahaha Group, and Yanjing Brewery Group in China. I would like to focus on the cooperation case between Zhongchen and PepsiCo International here. In just three years, we have provided a total of 11 production lines for PepsiCo International's system, with a capacity of 36,000BPH as the main production line for glass bottles, PET bottles, and high-speed carbonated soft drinks (CSD) and hot-fill juice drinks (NCB). From the beginning of 2010 to now, PepsiCo International's system has purchased four high-speed beverage production lines from Zhongchen Light Machinery. Quoting PepsiCo International's evaluation of Zhongchen Light Machinery, that would be: "We trust Zhongchen to do the job."