PETpla.net Insider 07+08 / 2010

REGIONAL MARKET REPORTS 11 PET planet insider Vol. 11 No. 07+08/10 www.petpla.net Bavico JSC: The preform and bottle pioneer Mr. Nguyen Quoc Bao – Chairman Mr. Luka Gregory James – General Director The Bavico company was established in 1993 for the purpose of importing PET bottles. The name BA-VI-CO represents the names of the founder’s son (BAO) and daughter (VAN). Just two years later the company bought its first Nissei single-stage machines to produce its own bottles. According to Mr. Bao, chairman of the company, Bavico was the pioneer in the production of preforms and bottles in Vietnam and is now one of the country’s largest converters. To keep up with the growing demand, the company first purchased Sidel stretch-blow-moulders in the years 1994 and the first Husky injection moulding machine in 1997. Today the company employs approximately 400 people and has five plants, including a newly opened one in Bien Hoa to produce preforms and bottles. The company is now directed and coordinated by Luka Gregory James, a vet- eran with 30 years experience in PET packaging. Altogether the company uses: for preforms: 14 injection moulding machines from  Husky for bottles: 14 stretch blow moulding machines from  Sidel and from Taiwan (with moulds from 1 to 16 cavi- ties) High preform capacity – export to the US Two further injection moulding machines (HyPET300- 72 cavity systems) will be delivered shortly to their Bien Hoa plant. Several machines are located at customers’ premises to allow economical in-house production. The company has an installed capacity of 2.5 billion preforms per year (preform weights from 10 to 110g), which are used mainly for CSDs, cooking oil, drinking water and cosmetics. Closures are produced at Vinacap, a subsidiary company of Bavico. Reference customers: PepsiCo International, Coca- Cola Beverages Vietnam, Nestlé (Lavie water), Tribeco and edible oil market leader Calofic. Bavico imports the PET resin (as do almost all other PET companies in Vietnam). A large percentage of the pre- forms are sent to Bavico’s own company in the USA (US Plastic Inc.) which opened in 2004. Lower electricity costs (approx. 6-7 cents/kW in Vietnam compared to up to 18 cents/kW in the US), as well as low labour and packaging costs in Vietnam, mean that such a long sea journey is still economical. www.bavico.com.vn Everything in PET except sugarcane Hon Chuan Vietnam Co., Ltd: From preform to co-packaging Chiu Chien Fu, Plant Manager Nguyen Thi Thanh Thuy, Country Manager Sidel Jeff Chen, Sales Hon Chuan, headquartered in Taiwan, is one of Asia’s leading suppliers of packaging materials including pre- forms, bottles, closures, labels, co-packaging services and non-plastic packaging materials. The total turnover of the whole group is stated at US$ 370 million. In the field of beverages packed in plastic, the company has a market share of about 80% in Taiwan and in addition factories in China, Thailand, Indonesia and Vietnam. As a service- oriented converter, the company is focused on the more demanding hot fill and aseptic applications. In Taiwan the