Schuetz: Fast Growth in China   

Schuetz GmbH & Co KGaA is a family-owned multinational firm that headquartered in Selters, Germany, with 40 years of its existence and presence on the packaging market around the world. Its products mainly include intermediate bulk containers (IBCs), plastic drums and steel drums.

Schuetz in China  

Mr. Qiu Yunchi, General Manager of Schuetz Container Systems (Shanghai) Co., Ltd. (hereinafter referred to as SCSS), Schuetz discloses that Schuetz founded its first trading company in China in 2003, with the ambition to corroborate the position as leading supplier of industrial packaging in China as well as in the East-Asian markets. It commenced full manufacturing operations and moved to the new built plant - Schuetz Container Systems (Shanghai) Co., Ltd. at the Shanghai Chemical Industrial Park in May 2005.
   Mr. Qiu says that at present SCSS has completed  its second phase at Shanghai base for the production of packaging containers, and will construct the third and fourth phase in the future. The products of Schuetz were only IBCs in the early time of its business in the Chinese market. Recently, it develops a new variety in the second phase project - 200 L plastic drum, and will manufacture steel drums in the third phases in the future. While, the company's activities in China are not limited to newly produced, empty containers, it will step into the toll filling business for chemicals in the fourth phase project, as to provide further service for those multinational chemical giants in Shanghai Chemical Industry Park, such as BASF, Bayer.
   He also emphasized the value-added services for the second phase project - the recycling system for Schuetz containers, which minimize their influences to the environment. He felt very proud of this system because it is the most complete network around the world and contributed much for the fast development of Schutz in recent years. More and more costumers realize that Schuetz's packaging containers bring them benefits not only in cost but also in environment protection. At present, Schuetz's packaging business rank first in China with about 50% market share. "There is the fact we must confess", he added, "the company's rapid growth can not be separated from China's economy booming, which achieved double-digit growth in the past years and promoted the development of petroleum and chemical industry."

The recycling system   

Mr. Qiu also introduced CCR the recovery process of the packaging drums. Many companies may find they do not know how to deal with Schuetz IBC when chemicals in the IBCs are used up, since the IBCs are polluted by chemical residues. There are usually two ways for them to solve the problem, one is to build their own sewage treatment plants to clean the drums for reuse or for sale, but build sewage treatment works may cost a lot, many middle and small sized firms cannot afford. The other one is to let a professional cleaning company to do the cleaning, but they also have to pay for this.
   As a company pursues sustainability in all processes and work flows and also conforms to the company's concept of responsible care and its declared commitment to active environmental protection, Schuetz has the responsibility for securing a load lies with the individual packaging user, so was born the worldwide recycling network, which is know as Schuetz Ticket Service . It has been regularly adapted to meet the needs of both customers and end users of emptied Schuetz IBCs. For example, Schuetz's customer could be called customer A, customer A's customer named as customer B, also is known as the end user. Customer A buys the IBCs of Schutz made in China to carry their chemical liquid and then sell their products to customer B in Europe and America. When the chemical liquid was used up, customer B can find in the label on the Schuetz IBCs the contact information of Schutz, and Schuetz will let the nearest collection point to truck IBCs from customer B.
   Every emptied Schuetz IBC collected from an end user is reconditioned for further trips. Every IBC container has metal frame protection outside. All plastic components that come into contact with the filling goods (inner bottle, valve fittings, screw closures) are replaced with new original (OEM) parts. The old material is shredded and stripped of all residues in modern, high-performance washing units. The resulting regranulate is then used in the production of pallets and corner protectors for IBCs and so returns to the economic cycle. In addition to cutting costs, the Schutz Ticket Service also influences other aspects, especially ecological ones - first and foremost the preservation of valuable resources. Far less energy is required to recondition IBCs than to produce new ones.
   "It should be noted that it is free for Schutz to collect emptied IBCs from end users in western countries, but it is not the case in China, we should pay for the emptied IBCs. The selling price of recycled IBCs cannot be higher than the new ones, so the cost of recycled IBCs is much higher than the latter. "He pointed that Schuetz IBC free-collection business has been quite mature in Europe and America, because these regions are much better than China in environmental protection awareness. But he believes that along with the development of China's economy, someday the country will catch up with or even surpass western countries. Thus, Schuetz sticks with it even under the situation that the Schuetz Ticket Service business does not make money in China, and it believes that when this day comes, it will be very pleased by what it has done for the society and environmental protection of China.
  Mr. Qiu told CCR that Schuetz has 28 collection points globally at present, and is expanding at a rate of almost one new point annually, follows the expansion of new plant. SCSS is Schutz's first manufacturing point in China; the second will be in Tianjin, which is scheduled for commercial operation in 2011, collection points will also be set up in the second half of 2011 accordingly. That will let its users benefit from the logistical advantages.

Face competition

Schutz is relatively young in China, with 6 years experience of trading packaging products. There are also lots of other young companies set up their business with great ambitions in this sunrise industry of China.
    Production and process of Schuetz IBC needs high-mechanized operation. Enterprises in Yangtze River Delta and areas along the eastern coast of China find that labor costs become more and more expensive, and managers of these companies have become increasingly aware of the benefits packaging containers give them.
    "You can see new faces emerging every year. In the last two years, the Chinese market achieved to be the fastest growing market of Schutz, with growth rate almost 50% year on year, though the turnover from the Chinese market is still less than 10% of our global total. Some firms may also develop rapidaly. Schutz firmly believe that we can find the sustainable development if we attach great importance to quality and service when face competition."
     "Healthy competition is not a bad thing to the packaging business, reasonable price will promote better development for the whole industry."

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