PETpla.net Insider 01+02 / 2021

BOTTLE MAKING 33 PETplanet Insider Vol. 22 No. 01+02/21 www.petpla.net Target Plastic, May 25, 2020 We met: Mr Po-Chao Huang, Managing Director From bottle supplier to OEM filler by Kay Barton The Huang family founded Target Plastic as PET was making its breakthrough into the Taiwan market in the mid-1990s. Located in Zhubei, about 70 km south-west of Taipei, it specialises in the production of PET bottles, particularly for hot fill applications and, more recently, ready-made ones for OEM drinks. Overseas exports, for example to Europe or North and South America, are a principal focus for the company’s efforts. We are not talking here about mass production but rather an emphasis on individual solutions and a flexible approach. We spoke to the founder’s son, Mr Po-Chao Huang, about the firm’s history, its day-to-day business and why Taiwan is such an excellent choice for international businesses. “My father founded the company as a plastic bottle manufacturer in 1994”, Mr Huang explains. At that time, Taiwan’s local market was dominated by glass and cans, with PET just start- ing to make in-roads. “My father liked the material’s attractive properties, in particular its light weight compared to glass and transparency in relation to cans. The potential for relatively low- cost processing also appealed to him”. When the company was established it staked everything it had on investing in a Nissei ASB machine. The first few years were to prove economically chal- lenging before business finally picked up at the end of the 1990s. “We focused solely on bottle pro- duction for around 20 years, with PET processing making up 95% of our business strategy”, said Mr Huang. “The remainder comprised a small number of PP products”. Up until the mid-2010s, the company’s client base had been steady but rather modest. Then, two years ago, Target Plastic decided to bottle drinks for the first time and purchased a filling line. As Mr Huang explains “We wanted to expand our business model into an all-in-one solution as demand from industry was there. However, we did not have any brands, having become exclusively OEM bottlers. Nevertheless, we do supply products internationally”. It all started with a well-known flavoured water label with the company providing around two million bottles each month to ten different customers. A specially established subsidiary, which dealt exclusively with product sales, was also responsible for international mar- keting. “We then received a request for a tea drink, inititally from Hong Kong and started with 200,000 bottles which later went up to 300,000”. “We became interested in the Taiwan market’s potential early on”, Mr Huang explained. Today, exports make up 50% of the company’s drinks business which it intends to increase to 60-70% in the future. In terms of transport logistics, empty bottles remain ring-fenced in their own market. He adds “Over time, we have learned how to negotiate suc- cessfully with our international clients as business continues to grow”. The company uses differently-treated tap or groundwater in OEM drinks such as teas, juices and functional water, depending on the customer’s wishes. Target Plastic’s drinks are sold in North, Central and South America, Poland, Italy, Hong Kong, Singapore and, of course, in Taiwan itself. Blow moulded hot fill bottles with crystallised neck The machine inventory is growing all the time. We were told that Target Plastic has been buying one or two additional machines each year from Nissei ASB for the last decade or so. A number of machines obtained from the equipment supplier are now in produc- Tour Sponsors: Some of Target Plastic’s bottles and beverages