PETpla.net Insider 10 / 2016

BOTTLING / FILLING 30 PET planet Insider Vol. 17 No. 10/16 www.petpla.net SPONSORS The China Road Show From plastics processor to OEM bottler By Kay Barton August 1, 2016, Taiwan Hon Chuan Enterprise Co. Ltd. We met: Mr Keith Dai, Chairman Ms Julia Tang, Sales Representative Mrs Joanne Liu, Project Manager Trading Department If there is one name that stands out in the drinks market in China and its bottle industry, it is processor and bottler Taiwan Hon Chuan (THC). As its name suggests, the com- pany is based in Taiwan, but the fact that it is not located on the mainland has not prevented it from playing a lead- ing role in the markets throughout Asia, and particularly in China; it is in the mainland that THC has most of its loca- tions and employs the majority of its staff. During PETpla- net’s China Road Show, it seemed entirely natural to take the time to visit the city of Taichung in Taiwan. Once there, we were able to meet with the Chairman of THC, Keith Dai, and to gain a better understanding of the company itself and its philosophy towards its extended home market. THC was established as “Tai Hong Industrial” in Zhang Hua in 1969. Over subsequent years it developed from being a supplier of packaging mate- rials into a provider of shelf-ready drinks products. In 1988, the rapidly expanding company moved into an industrial estate in Taichung. Over the course of the 1990s it launched a variety of wholesale companies to serve clients in a range of mar- kets. Among its subsidiaries was the biggest manufacturer of aluminium sealing caps in Taiwan. In 1993 THC opened its first plant on the mainland, in Suzhou, China. After the liberalis- ing of the Chinese market in the early 1990s, China offered opportunities for external investors to gain a local foothold. THC benefited from this cul- ture, which provided the basis for its decision to make further investments. The company adopted its current name in 1999 and floated on the stock market in 2001. In 2003, further plants and additional expansion in mainland China followed. 2004 saw the installa- tion of its first in-house bottling lines, which completed its drive to full verti- cal integration, from the production of preforms, bottles and sealing caps to the bottling and labelling of drinks. In the following years, THC conquered further markets in Asia. It installed its first aseptic line at its base in Taichung in 2006, with more to follow in other countries, including mainland China from 2013 onwards. In 2016 it opened its first plant for pre- forms and sealing caps in Mozam- bique, which was established to serve the African market. Today, THC is the biggest manufacturer of preforms and plastic bottles and the biggest bottler in Taiwan, and is one of the top three in the South-East Asia market. Altogether, THC now has eight plants in Taiwan, 17 in China and another 15 spread across Myan- mar, Indonesia, Thailand, Cambodia, Vietnam and Malaysia. Just under 4,900 employees and 738,000m 2 of production space are dedicated to the The China Road Show meets Taiwan, f.r.t.l.: Hon Chuan Chairman Keith Dai and Kay Barton, PETplanet