CHINA AND ITS GLASS MARKET

I n this dossier, we are going to take a look at China, speaking about companies working both for the domestic and international mar-kets. We spoke to some of our clients, who gave us straightforward answers to five simple questions about the Chinese glass sector. We are also presenting a few ‘smaller’ Chinese glassworks to give an idea of how they work with the global glass community.

glass market 39-45Working with China from the western point of view.Companies respond to our questions

Chinese glassworks 46-50Anhui Junding Glassware: everyday glassware

Guandong Huaxing:bottle and jars

Jinan C-Flying Industrial Group: pharma, borosilicate and lighting glass

Rockwood & Hines: glass bottles

Shangong Pharmaceutical Glass: pharmaceutical glass packaging

THE CHINESE GLASS

SECTORIn China, the glass products

sector is generally divided into

container glass, tableware glass,

and insulated containers, where

the container glass segment

includes bottles for alcohol and

other beverages, pharmaceutical

and cosmetic bottles, etc.

Container glass takes up the

vast majority of this sector at

93%, where beer and alcohol

bottles take up 20% of container

glass, or almost 19% of the entire

daily-use glass sector.

Bottle making machinery

upgrades account for the major-

ity of demand in the daily-use

glass sector, calling for higher-

efficiency, automated equipment.

Here multi-segment and multi-

gob machinery are the direc-

tion for bottle making machinery

developments.

DAILY-USE GLASS

Daily-use glass as termed in China

is tableware and insulated glass,

including alcohol bottles, pharma-

ceumetic bottles, etc.

WORKING WITH CHINA

FROM THE ‘WESTERN’

POINT OF VIEW

Container glass occupies 93% of China’s total

glass market

Commersald

Emhart

EMMETI:Emmeti will, this year – after

six years of ‘absence’ – be pre-sent at China Glass.

And if it’s true that during these six years Emmeti has con-tinued to monitor this market carefully, the company did not, until now, consider more intense marketing activities necessary.

In China, mechanical or auto-matic lines have never been, for glassworks, essential, due to many different facts: low cost labour, lack of export requests (which require much higher

quality standards than those for the domestic market), low speed of the production lines, poor quality packaging materi-als, etc.

HEYE INTERNATIONAL:We see strong growth poten-

tial and we are working on many interesting projects. Share: 10 per cent, rising tendency.

KYP:The Chinese glass market rep-

resents 20 per cent of KYP’s global turnover.

HOW DOES YOUR COMPANY CONSIDER THE CHINESE GLASS MARKET AND HOW MUCH DOES IT EFFECT (PERCENTAGE) OF YOUR COMPANY’S GLOBAL TURNOVER?

COMMERSALD: The Chinese market has

gained considerable importance for Commersald due to its poten-tial and, at present, represents 20 per cent of our global turno-ver regarding sales of machinery for the glass sector.

EMHART:The sustained austerity drive

by the Chinese government results in less alcohol consump-tion and therefore less glass con-tainers.

The new emphasis on envi-ronment protection obliges glass plant owners to put their new investments on-hold as they need more time to assess the situation.

The glass container market is probably flat. The effect on our company’s global turnover is negligible, the effect on our company’s Chinese turnover is about minus 10 per cent.

Zecchetti

Em

meti

and, if possible, the most com-plete and up to date models.

EMHART:The Chinese market has vari-

ous segments; high-end, mass and niche. Different segments have different requirements for differ-ent machinery. The high-end seg-ment is rather small and demand for machinery is not so different from other countries. The mass market is the biggest and needs basic and reliable machines. The niche segment is also quite large because the Chinese glass market is rather segmented. This niche

segment requires low cost machin-ery; second-hand or basic, small, new machines.

EMMETI:Apart from these situations,

Chinese glassworks mainly use domestic-built machinery for areas where a minimum of auto-mation is needed, such as trans-port, inspection and packaging of finished products.

Even if this type of machinery does not have quality and reli-ability levels as those of European machinery, the cost is about three times less!

HEYE INTERNATIONAL:Heye offers last-generation

machines for high quality pro-duction at high production speed. This is the only way to fulfill the important requirements of the big global brand owners.

OCMI:Without going into percent-

age details, OCMI’s interest in the Chinese market, right now is considerable. This is due to strong ongoing growth of the pharmaceutical glass market, which is also pushing small- to medium-sized companies to invest and look towards the inter-national market.

Attention is concentrated on ‘historical’ clients and those who already work with the glassworks, but also on potential clients that are considered an important opportunity in this really vast market.

OCMI focuses on the most important glassmakers for house-hold glass items and stemware, for which it offers reliable and tried and tested solutions.

SPAMI:The Chinese market has great

potential, and for this reason here at Spami we are focussing on its needs and demands, even if it is not such as important part of our turnover at the moment.

ZECCHETTI:The percentage of Zecchetti’s

turnover dedicated to the Chinese market is 5 per cent.

WHICH TYPE OF MACHINERY DOES THE CHINESE MARKET REQUEST: LAST-GENERATION, MORE ‘ELEMENTARY’ MODELS, SECOND-HAND, ETC.?

COMMERSALD:Chinese companies do not

want or accept simple models and certainly not second hand machines. They want the best

We think that in China there is great NNPB potential. Heye, as the inventor of the NNPB pro-cess, is specialized in NNPB pro-duction and is presently bring-ing NNPB to China in several projects.

KYP:We receive demands for new

machinery, last generation, and second hand as well.

In all situations we are speak-ing about the latest technology.

OCMI:On some last-generation

machinery, especially with regards to visual inspection of pharmaceutical containers during production, needs are becoming more standardized. In general, requests do not depend on men-tality but on investment possibili-ties.

The market seems to be mov-ing towards automation that reduces operator intervention to a minimum. In terms of pharma-ceutical glass – automatic loaders for glass tubes – we are speaking about different types of control by means of camera and auto-matic packaging.

The request for second-hand machinery in China is almost nil right now, and seems to be more used by smaller companies.

SPAMI:China is looking for last gen-

eration and full-optional machin-ery. And here we have an impor-tant advantage as we supply com-plete turnkey plants, which also include top-level training.

ZECCHETTI:We are mainly contacted by

glassworks that require “high quality standards”.

These companies work most-ly for exports and consequently need to guarantee high quality performance.

WHAT KIND OF SALES AND POST SALES SERVICE DOES THE MARKET LOOK FOR, AND WHICH ARE THE BIGGEST DIFFICULTIES ENCOUNTERED DURING INSTALLATION AND ASSISTANCE?

COMMERSALD: If you don’t have a good sales

contact able to use the Chinese language you will certainly have problems due to the difficul-ties and unexpected situations that can happen. In any case, you can have the same problems during post-sales assistance that you have in any other mar-ket – it all depends on the

Spami

KYP

person and company you are working with.

EMHART:They need normal installation,

commissioning, spare parts and after sales trouble-shooting ser-vices like any other countries.

EMMETI:During recent journeys to

China, Emmeti saw that the situation had changed positive-ly and, at present, exports have

increased considerably: South Korea, Malaysia and Thailand first and foremost. Glassworks have therefore had to adapt to quality standards much higher than domestic levels and, thanks to exports, they have accounts in foreign currency that enable them to deal directly with inter-national markets without going through the PBOC (private bank-ing was authorized in China as of January 2014).

The domestic market has, in any case, grown, and internal quality standards have increased. China is starting to ‘take over’ glassworks that were once owned by important international groups (Owens-Illinois now only has two glassworks).

Interest and demand for auto-mation and reliability of machin-ery has increased (which Chinese machinery manufacturers are not yet able to guarantee), closely connected to the introduction of high-speed lines.

The gap between Made in China machines and imported machinery has decreased.

Moreover, language barriers have almost disappeared, and it is now possible to communicate directly with potential clients in English.

HEYE INTERNATIONAL:We are working with a local

partner who has close contacts with all our customers.

Our customer satisfaction is very high.

KYP:The Chinese market looks for

turnkey solutions. The main problems we

encounter regard the lack of the right infrastructures.

OCMI:Difficulties in assistance and

installation can depend on per-sonnel, which are now usually well trained and experienced in the different processing phases.

With regards to new or smaller companies, operators are some-times at their first work expe-rience with glass and still do not know all of the fundamental aspects such as the maintenance of production lines, which has a direct effect on the lifetime of the equipments and quality of finished products.

The Chinese market needs to be continuously monitored with regards to on-site technical assis-tance and the supply of spare parts, because this, in turn, can make or break long-term rela-tionships with clients.

SPAMI:Post sales service is particu-

larly important for clients, and Spami is working to create a team of Chinese technicians in the country.

This will give us the advantage of being fast and efficient, while overcoming difficulties connect-ed to language.

Heye

ZECCHETTI:We are normally requested to

offer engineering services – that is to give recommendations – and to work alongside customers for a long time. This is due to the fact that personnel does not usu-ally know everything about the equipment. And for this reason, they often require an extension of Operator Training sessions.

Another important difficulty we find regards communication (language, customs and tradi-tions).

IS THE PRODUCTION OF YOUR (CHINESE) CLIENTS AIMED MAINLY AT THE DOMESTIC MARKET OR EXPORT (PERCENTAGE IF POSSIBLE)?

COMMERSALD:I don’t really know the per-

centage of sales dedicated to domestic and international mar-kets regarding my clients but I often see their products here in Europe and their quality is often very similar to that of products made here.

EMHART:A small segment of their pro-

duction is dedicated for export, but it is mainly for the domestic market.

EMMETI:At present, Emmeti/Sipac have

six installed lines for automatic transport and packaging (two furnaces) at Sichuan Malaya Glass (SMG), in Sichuan, with

production dedicated mainly to wine and spirits. The follow-ing link to SMG speaks brief-ly about Emmeti’s machines: http://www.smglass.com.cn/EnAboutus.asp?Title=Inspection and Packaging.

HEYE INTERNATIONAL:Mainly the domestic market

>80 per cent.

KYP:Our customers produce main-

ly for the domestic market, with a percentage of 90 per cent.

OCMI:Right now, most of our Chinese

clients dedicate a part of their production for export, which can change as per their production capacities, technology level and quality of raw materials.

OCMI glass tube lines in China are mostly for the produc-tion of high quality containers for export. The installation of dimension control systems, those regarding moulds or cosmetic features, confirm that focus is more and more on increasing

quality to respond to the needs and demands of the markets.

SPAMI:Production is mainly dedicated

to the domestic market, even if there is no lack of interest in exports.

ZECCHETTI:Being dedicated to exports,

they need to guarantee high qual-ity performance.

IS THERE ANY OTHER INFORMATION THAT YOU DEEMIMPORTANT AND USEFUL?

COMMERSALD:China is a fast and strongly

growing market with enor-mous potential. It therefore is a highly attractive opportunity for European companies looking for new markets to explore and enter.

KYP:The Chinese market is focused

day by day more and more on exportation, although at present, its main production is for the domestic market.

OCMI

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A nhui JunDing glassware Co., Ltd. is located in China’s largest daily glass

production base – Bengbu – with convenient transport connec-tions.

The company mainly provides customers with comprehensive products such as machine pressed cups, blown cups, glass candle

holders, wine glasses, drinking glasses, ice cream bowls, glass plates, glass bowls, glass candy jars, glass vases, wind lights, beer glasses, glass cups, home deco-ration, candlestick holders, tea light holders, votive holders, hur-ricane candleholders, pillar hold-ers, beverages, shot glass, glass tumblers.

everyday

glassware

Additional products and ser-vices supplied by Anhui JunDing glassware include fully auto-matic printing decals, spraying, sandblasting, flocking emboss-ing, internal and external elec-troplating, laser engraving, internal and external hollow out frosting, processing of auxiliary services.

www.jdglassware.com

ANHUI JUNDING

GLASSWARE CO.

ANHUI JUNDING

GLASSWARE:

GUANGDONG HUAXING: bottles and jars

Guangdong Huaxing Glass Company is a private glass company

which produces bottles, jars and containers for everyday use in high flint, commercial flint and emerald green glass.

Company headquarters are located in Wuzhuang Industry area Luocun Nanhai District Foshan City, Guangdong Province, covering over 200 square metres.

The company has an expe-rienced management team and production workers, of which 800 people are with the senior management team and technical team.

Huaxing Glass employs com-petent people and advanced equipment to provide products and service with high qual-ity, at ten function centres and 13 plants, including Nanhai, Gaoming, Sanshui, Changcheng, Zhejiang, Daye, Zhengzhou, Suqian, Yongqing, Shihezi, Yuanjiang, Anshun, with multiple production lines for food, bever-age, sauce, wine, medicine and cosmetic glassware. The com-pany’s glassware is sold to Hong Kong, Macao, Southeast Asia, America and Canada.

Huaxing Glass uses double-gob production lines for bottles and jars which are computer-controlled, along with automatic self-controlled system for fur-naces, and electrically/gas heated technology for tunnel and cold-

end/hot-end coating. All types of bottles from 25g to 1,000g are available with any shape or in any quantity.

Advanced Double-Gob pro-duction lines and Multiple-colour printing machines are used for the manufacture of pressed glass containers with irregular shapes, while drinking glasses and print-ed glass can also be made.

Huaxing Glass Quality Assurance System was set up according to ISO 9002:1994 in May 2000 and its Quality Management System has been set up and improved, enabling quality inspection process to develop quickly.

This, in turn, improves the quality of products and service. The same Quality Management System was improved accord-ing to ISO9001:2000 in October 2002 and passed the thirty-party audit in December 2003.

HACCP was introduced to the company in 2003, which was run for nearly a year and the thirty-party audit was passed in November 2004, making Huaxing Glass the first company in the industry to pass HACCP.

The company has a series of other approvals and certifications that enable it to continue provid-ing products and service with high quality.

www.hxbl.com

GUANGDONG

HUAXING GLASS

COMPANY

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Jinan C-Flying Industrial Group, founded in 2000, is located in Jinan, Shandong

province. The company has about 10 years experiences of production, research, sales, export, mainly in the pharmaceu-tical glass, borosilicate glass and lighting glass fields as our main production series.

The company is the main man-ufacturer of the above products in the Chinese domestic market, with products including phar-maceutical neutral glass tubes, tubular vials, moulded glass vials, ampoules, rubber stoppers and tear-off caps, borosilicate clear and coloured glass tubes and

rods, glass cylinders and borofloat glass sheets, as well as lead glass tubes, and lead-free glass tubes. With advanced machinery, a pro-fessional research team and strin-gent quality-control department, Jinan C-Flying Industrial Group exports to the United States, Germany, United Kingdom, Canada, Mexico, India, Thailand and some Southern American countries.

pharma, borosilicate

and lighting glass

www.chinaglasspack.com

JINAN C-FLYING INDUSTRIAL GROUP

JINAN C-FLYING

INDUSTRIAL GROUP:

Company products:Pharma glassNeutral glass tubes (COE 5.0)Neutral glass tubes (COE 7.0)Tubular glass vialsMoulded glass vialsGlass ampoulesClosures and capsButyl rubber stoppersFreeze-drying stoppersPlastic-alu capsAll-alu caps

Borosilicate 3.3 glass:Boro 3.3 clear glass tubesBoro 3.3 clear glass rodsBoro 3.3 coloured tubes and rodsBoro 3.3 glass cylinders

Glass joints

Lighting glass:Lead-free glass tubesLead glass tubesSoda-lime glass tubesLead bead glass tubesLamp chimneys

Laboratory glass:Lab glass

Rockwood & Hines Glass Group Ltd., a joint venture between a French- and a

Chinese manufacturing compa-ny, is the largest glass bottle fac-tory in China with 16 furnaces, 12 fully automatic lines and 10 semi-automatic production lines. The company produces super flint glass bottles of the highest quality, comparable to those sup-plied by well-known European glassmakers.

High quality, flexibility, reactiv-ity and competitive prices have enabled Rockwood & Hines to become one of the top glass manu-facturers in the world, with exports going to major companies in the United States, Europe, South America, Japan, Middle East.

Key advantages: 1. super flint glass quality2. 13 to 28mm crystal clear

glass slug at the bottom3. embossing or debossing

name or logo in the glass4. Minimum quantity for cus-

tom-made bottles: 20,000 bottles; (the bigger the order the lower the price)

5. Serigraphy or silk screen-ing, frosting, spray paint and sand blasting available.

Those who are not interested in a personalized mould can also choose from the standard bot-tle catalogue, with bottles that carry a minimum order of 6,000 bottles only. These are sup-plied in any shape or size, from 50ml to 1.75L. Glass decoration techniques available include: Hot stamping - Embossing/Scalloping - Serigraphy - De-bossing - Colour Spray -Mosaic glass - Frosting/windows - Diamante studs - Sand blasting - Labelling - Customized bottles.

ROCKWOOD & HINES: glass bottles

www.rockwoodglassfactory.net

ROCKWOOD &

HINES GLASS

GROUP LTD.,

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pharmaceutical

glass packaging

Shandong Pharmaceutical Glass is the largest manu-facturer of pharmaceuti-

cal glass packaging in China. The company was established in 1970 with a registered capital of approximately USD 34,781,096 and gross assets valued at over USD 200 million.

Shandong Pharmaceutical Glass uses advanced manufactur-ing technology and expertise to manufacture containers used for the storage and use of medicines, vaccines and other pharmaceuti-cal preparations, such as:

Moulded injectable vials, USP type I, II, IIIGlass tubing, USP type IAmpoules, USP type ITubular vials for injection, USP type IAmber glass bottlesInfusion bottlesCosmetic bottles (nail pol-ish and perfume)Small food and beverage bottlesButyl rubber stoppersAL-plastic multi-capsAccessories for dropper bottles

Prefilled glass syringesDental glass cartridges

The range covers nine major series of 500 products with dif-fering specifications. These include moulded glass vials and bottles conform to USP Type I, II, III. The annual production of Shandong Pharmaceutical Glass’ leading products reaches more than 9 billion items. Company products are sold to more than 1000 medical enter-prises in China, to many provinc-es, cities and autonomous regions as well as Taiwan. Shandong Pharmaceutical Glass exports to more than 65 countries, such as Korea, Pakistan, United States, Mexico, Spain, India, Philippines, Italy, Middle East Countries, Thailand, Vietnam, Syria, etc. The company has taken the lead in China by being the first to pass both ISO9001 quality man-agement system inspection, and ISO14001 environment manage-ment authentication. Shandong Pharmaceutical Glass is a listed company on the Shanghai Stock Exchange.

www.pharmglass.com

SHANDONG PHARMA-CEUTICAL GLASS

SHANDONG

PHARMACEUTICAL

GLASS: