With a strong commitment to high quality and timely customer service, Taiwanese makers of packaging machines are afoot to compete against rivals of China and South Korea, who are moving in on the global market that Taiwan has led for some time.

Taiwan`s packaging machine manufacturing industry began in the 1950s with low-end models, such as strapping machines, and entered its heydays after the 1970s.



Today, Taiwan supplies the world market with semiautomatic and fully automatic mainstream models, such as vacuum packaging machines, filling and sealing machines, cellophane packing machines, labeling machines, plastic container filling packing machines, cartoning machines, and horizontal pillow-like packing machines.

According to statistics compiled by the Taiwan Association of Machinery Industry (TAMI), Taiwan`s packaging machines exports reached NT$74.8 billion (around US$2.30 billion at US$1:NT$32.483) in 2006, up 12% from NT$66.84 billion (US$2.08 billion at US$1:NT$32.115) in 2005, and up 19% from NT$60.42 billion (US$1.81 billion at US$1:NT$34.45) in 2004.

Over the past two years, China, (Hong Kong included) the U.S., Japan, Thailand and Indonesia were the top five overseas markets for Taiwanese packaging machines. China has commanded the largest share of exports in the segment over past three years, absorbing 28.5%, 26.5% and 29.3% of the total, respectively.

Taiwan`s exports to Germany, the world`s top producer of packaging machines, with a 37.5% global market share in 2006, have increased from NT$87 million (US$2.65 million at US$1:NT$32.8) to NT$188 million (US$5.73 million) over past two years. The trend indicates that Taiwan`s machine quality is steadily gaining acceptance in one of the world`s toughest machinery markets.



However, Taiwanese makers of packaging machines are still working to improve their products--turning out models that are more efficient and automatic--and guaranteeing top-notch customer services. These efforts are steadily building Taiwan`s name in the global packaging machinery market.

Quality and Service

When it comes to matters of quality and service, Jieh Hong Machinery Co., Ltd. is helping to set the pace in Taiwan`s packaging machine industry.

Since its establishment in 1993, Jieh Hong has specialized in filling and packaging lines and solutions for the beverage supply industry. The company`s turn-key solutions have been used for hot filled lines for PET containers, mineral water filling lines, hot filled lines for cans, carbonated drink filling lines, and wine filling lines.

"Quality is vital," says Chen Jia-ren, chairman of the company. "Our high performance machines can fill and package up to 600 bottles per minute. They are also easy-to-operate, allowing operators can conveniently change packaging materials and highly customize their operations."

"We are continually improving our machines. For example, we have added advanced programmable logic controllers (PLC) and high-quality bearings to many models," Chen says. "The result is that our machines generally perform at twice the level of made-in China models."



Recently, the company won an order from Pepsi for a suspensory bottle rinsing, filling and capping machine. The machine has highly customizable bottle clamps that allow operators to easily adjust lines for bottles with different heights.

Such design perfectly matched the needs of Pepsi, which sells beverage in many different bottles sizes.

In addition, the new packaging machine is made of stainless steel and adopts an improved CIP washing function, which can effectively rinse all pipes before and after the machine operates. The washing function also has a frequency switcher to help operators monitor the main engine motor.

Another strength of Jieh Hong is timely customer services. The company offers a complete installation and consulting service for each client not only for its own products, but also other peripheral devices. "For instance, since its original packaging machine supplier in Singapore refused to provide this type of additional service, Pepsi turned to us," Chen says.

"This is one of the biggest differences between makers in Taiwan and in other countries, even Germany, Japan and the U.S." As a result, world-caliber beverage brands in Southeast Asia, including Singapore and India, often choose Jieh Hong over local suppliers for their packaging machine needs.

The Best

Established in 1962, Benison & Co., Ltd. is Taiwan`s top supplier of shrinkable packaging materials and machinery.

The company originally produced spray hoses, shrinking tubes and wiggery, but shifted into making shrinkable packaging materials and machines in 1975.



Today, Benison employs more than 200 workers at its plants in Taiwan, and about 100 employees at its plants in the Philippines, China and Thailand. The company`s product line includes a broad range of packaging materials, such as polyolefin, OPP, PE, PVC, heat shrinkable labels and cap seals and insulating tubes, and packaging machines, like sealing machines, applicating machines and customized packaging.

Having built a strong foundation at home, Benison is stepping up efforts to tap overseas markets. Benker Liao, general manager of the company, says that his company tailors its business strategy for each target market.

"For example, we focus promotion on packaging machines in Japan and label materials in Europe," he says. "Also, we have opened manufacturing plants in China and Southeast Asia to supply the markets there locally, while carrying out technology exchanges with partners in other countries."

As a result, exports now account for about half of Benison`s total revenue. Furthermore, the company is investing heavily in training a taskforce and increasing resources to further expand international sales.

The company also takes great pride in its management. "All of our workers identify strongly with the company. We have fostered a climate of working closely together at Benison." Liao says. Each of the company`s supervisors is also asked to thoroughly carry out a cost control, he adds.

Attention to R&D has been another factor in Benison`s rise. "We keep an open-minded attitude about R&D and cooperate with government and academic partners to achieve our development goals," Liao says.



One of the fruits of the company`s R&D efforts is the LSA5-504 auto sealer series. This unit features high packaging efficiency with adjustable sealing lines, closing conveyors and adjustable L-bar sealing height. The sealer series adopts thermo-controlled aluminum-alloyed sealing knifes, with precise and sensitive temperature control to prevent film damages.

Benison has also designed a special sensor and timer for the film-feeding system to automatically adjust length of shrink films. The company also uses a vertical sensor in the sealer so users can easily switch packaging systems for thin and small objects.

"We provide optimal packaging solutions, combining machinery and packaging materials, backed by comprehensive customer service and on-site engineer support," Liao says.

Benison`s innovation and export achievements have been recognized by Taiwan`s Ministry of Economic Affairs, which awarded the company its 5th Rising Star Award. "We just try to get everything done everyday," Liao says of the honor.

He says that the MOEA was impressed by the company`s detailed daily records, clearly indicate what the company has worked out and what it plans to do. Indeed, Benison that insists on doing its best at every level of operations, earning it a reputation of the best of the best in the line.

Keep Active

Another Taiwanese packaging machine maker that is actively sharpening its competitiveness is Allen Plastic Industrial Co., Ltd., a packaging material maker that is also earning a spot in the global market for packaging and sleeving machines.



Founded in 1980 in the southern Taiwan county of Kaohsiung, Allen Plastic specializes in manufacturing shrink packaging materials, poly bags, plastic films, converting machines for shrink sleeves and shrink packaging machines.

Backed by 27 years of expertise, Allen Plastic has successfully exported its packaging machines worldwide, including to the U.S., Germany, France, Japan, Southeast Asia, and Africa.

Kenneth Wang, general manager of Allen Plastic, notes that the company`s machines are competitive in quality and price, making them popular among developed countries. The company is also doing a growing, albeit indirect, business in China.

"I have to say China is the world`s hottest market with the fastest-growing demand for machinery, But we haven`t gone into the market because of the fierce competition and overwhelming pressure from local rivals," Wang says." But Taiwanese beverage and food brands operating there prefer to buy our machines rather than local-supplied ones."

Allen Plastic`s packaging machines are appreciated for their stable production quality, Wang says. "Sleeving labels is the last process in a packaging line, and it is usually operating at a high speeds. If the sleeving machine breaks down, the whole production line has to be stopped and a manufacturer will suffer considerable losses." The company`s commitment to a stable quality therefore creates value for its clients, he says.

The company also develops its own operating systems and PLCs instead of sourcing those from other suppliers. This shows the company`s strong capability and know-how in making high-performance packaging machines.

"We make our own software and PLCs to perfectly match the performance of the machine and meet the client`s specific needs," Wang says. "In many cases, sourced programs and PLCs fail to fully drive our machines."

Wang recalls a time when his company outbid a Japanese rival, Nippon Seiki, to secure an order for about 20 automatic sleeving machines from a big-sized food brand operating in China. Even some famous beverage brands in Germany and France have bought the company`s sleeving machines. Wang attributes this success to the stable quality and unique designs of its products.

The company is also placing greater emphasis on green materials and developing polylactide (PLA) films and related packaging machines. "We keep walking," Wang says. "Our company philosophy is to keep up with market trends and provide the best products and timely services to our customers."

(by Steve Chuang)