Yuanda Mold specialing in thin-wall packaging

By Nina Ying Sun
Assistant Managing Editor

Published: April 5, 2012 6:00 am ET

Related to this story

Topics Molds/Tooling Product News NPE 2012
Companies & Associations

ORLANDO, FLA. (April 5, 5:50 p.m. ET) — Yuanda Mould Co. Ltd. is yet another mold maker from China’s “Mold Town” Taizhou, Zhejiang province. But it’s different in that it’s one of the few companies there that makes high-end molds for thin-wall packaging and offers the complete in-mold-labeling system, the company said.

In an interview at NPE2012, sales manger Ariel Jiang shared some unique product and market insights. The exporter expects to grow its sales by 20 percent this year.

“My observation is that the U.S. market is not at the same level as Europe, in terms of the market understanding and growth of thin-wall packaging,” Jiang said.

For example, she said, European and Chinese airlines have adapted thin-wall PS cups for drinks, whereas paper and foam cups are widely used in the US.

That might explain why the U.S. represents a mere 8 percent of Yuanda’s sales. “That means a lot of growth potential.”

She said Yuanda is one of the first Chinese companies to develop and focus on thin-wall packaging.

Until five years ago, Yuanda was making large molds for crates, outdoor furniture, and consumers products. “But as competition intensified amongst Chinese exporters, everything boiled down to the competition for the lowest price.”

The company decided to take a more specialized direction. Today it makes molds for thin-wall IML food containers and paint/coating containers. About 70 percent of the products are shipped to Europe.

A buyer stopped by the booth during the interview and asked for a quote for a crate mold. “More than half of the inquires are about molds for crates. I really hope to see more interest in thin-wall packaging,” she said.

“Maybe it’s just the lifestyle and social habits in the U.S.,” she said. “Maybe American consumers prefer paper cups and have the misconception that paper is more sustainable than plastic cups. Maybe there are plenty of trees here for making paper, very different from Europe or China.”

Interestingly enough, she mentioned warming demand for thin-wall packaging in less developed economies such as India. “It’s actually simple. With the environmental pollution and overall sanitation level there, the rising middle class consumers demand better packaged food and drinks to ensure safety. That’s where thin-wall packaging comes in.”

Perhaps for a similar reason, Yuanda is starting to take domestic orders in China. But Jiang explains, “more and more packaging manufactures in China are using Western-brand, high-speed machines, which require better molds. We offer that.”

Jiang said its molds cost about a third of the prices of similar molds made in Europe. “But our prices don’t have advantages over other Chinese companies.”

When asked about risings cost in China, she said small molds can be made in the U.S. in a pretty cost-effective manner, but not the larger molds that require substantial amounts of labor.

The company also runs a molding unit that makes proprietary products — such as the plastic casing for medical devices — for OEMs, mostly in Europe and Australia.

Yuanda reports annual sales 30 million yuan ($5 million) on the mold making side and about the same amount for the molding unit. It employs more than 120.


Comments

Yuanda Mold specialing in thin-wall packaging

By Nina Ying Sun
Assistant Managing Editor

Published: April 5, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

Flextronics launches global injection molding, tooling unit

March 26, 2015 4:29 pm ET

Flextronics International Ltd. (Booth S34125) is officially launching Precision Plastics, a global injection tooling and manufacturing unit, as a...    More

Image

Mold maker Roembke's recipe for success

March 25, 2015 9:58 am ET

Double-digit sales growth is the norm at Roembke Manufacturing & Design Inc., and the mold maker is determined to continue that trend by sticking to...    More

Progressive's AST Technology takes mold monitoring to the cloud

March 25, 2015 9:27 am ET

AST Technology's CVe Live software monitors an injection molding machine and stores the information in the cloud so molders and OEMs can access the...    More

Image

Proper Group buys Cutting Edge

March 18, 2015 3:38 pm ET

Proper Group International has expanded its mold making and related services by acquiring an ownership interest in Cutting Edge Technologies Ltd.    More

Market Reports

Flexible Packaging Trends in North America

North America represents about 30 percent of the global consumption of flexible packaging. Annual growth in this region is forecast at 4 percent during the next 5 years.

For more insight on growth opportunities, drivers of growth and the outlook for 2015, download this report.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events