Why Shiner International?

On a sunny morning in the summer of 2005, general manager from Korozo – one of the largest printery in Middle East and Europe – stepped on the hot land of Hainan Island, China – the Eastern Hawaii.

What is so hot that draws attention of the Turkish giant to the island located in the far Eastern world? As rising cost control has become a greater concern for many food producers, more and more companies in the food industry have to change their procurement strategies by having all of their packaging needs done at one place in order to provide cost savings benefits and controllable lead-time and logistics efficiency. In order to abate pressure caused by increasing cost, many world famous food companies switch to Asia looking for new supplier of raw materials for their products. As one of the three existing manufacturing centers in the world, China is the ideal target. Cheap labor cost and low raw material cost has always been advantages.

Korozo is a company engaging in providing printing and packaging service to food companies with products sold to many countries throughout Europe. KOROZO commenced its activities within the packaging industry in 1973 ， in Turkey. By utilizing and investing in high technologies, it has become an industry leader in laminated flexible packaging and especially in the area of flexo printed films. With its large range of products and a capacity of more than 5000 tonnes per month, Korozo is one of the largest production plants in Middle East and Europe. Korozo has 950 employees and 6 key manufacturing facilities within a closed area of 125.000 ㎡ based in Kıraç region of İstanbul, Germany and Russia. KOROZO exports 60% of its production to foreign countries. Starting with EU countries, commercial activities take place in Eastern Europe, Balkans, Australia, USA and Middle East.

The 35-year printery wishes to find a new supplier of film products in Asia. As an emerging global leader in flexible packaging film industry, Shiner is certain to attract Korozo. Though started its international business at the beginning of 2005, Shiner has already made its name in the global market by attending many exhibitions and trade fairs in Europe and America. Besides, Shiner’s advertisements on several famous magazines impress those who seek cost-efficient advanced packaging solution.

Shiner’s manager of international sales department met the visitors from Korozo at the airport at scheduled time. The visit started after friend greetings. Visiting Shiner’s factory was the starting point for them to know more about Shiner and its products and services. Introduced by the manager of the factory, Korozo’s representatives visited Shiner’s factories and equipments of manufacturing anti-counterfeiting films, coated films, BOPP tobacco films, color printing, packaging and the R&D center. They cannot imagine that there is a company in flexible packaging industry in China which can combine several groups of products and services together and set up such a strong supply chain to serve customers more efficiently and get more market share. Furthermore, Shiner’s R&D staff introduced more details about the technologies. For example, Shiner is the unique company in the world which can perform laser holographic anti-counterfeiting on the surface of the film. Shiner’s patent PVOH, a super high oxygen barrier chemical substance, has excellent performance characteristics as good as the top competitors’ in the world. After visiting Shiner’s factories, Korozo’s representatives had a meeting with Shiner’s senior management team who introduce more information about corporate operation and strategy.

Packaging materials, especially those for soft packaging are widely used in the global commodity market for they can extend shelf life and thus prevent products from tamper. As a large converter in the packaging industry, which provides packaging service to food companies with products sold to many countries throughout Europe, Korozo has a great demand for soft packaging films of high barrier properties. Among those packaging materials which are suitable for food packaging, Korozo finds that Shiner’s coated film such as PVDC and PVOH is second to none.

In comparison with those films provided by its existing supplier and other time-honored large international suppliers, Korozo notices that Shiner’s coated films have high oxygen, vapor and aroma barrier, which can extend the shelf life of products, from the average 3 months to a year longer. The films have excellent printability and ink will not get into the products and cause pollution in production. Besides, the packaging films have good transparency, which offer products premium appearance, entertaining those consumers who desire beautiful packaging.

Not only the high quality coated films, but also the unique one stop solution business model attracts Korozo’s strong interest towards Shiner’s products and services. Shiner can provide services ranging from web film production, film coating and printing to bags making. The integrated chain may provide cost savings benefits and controllable lead-time and logistics efficiency. Under Shiner’s model, the lead-time may be reduced by a month at least comparing to the average period.

These advantages are those desired by Korozo for so long a time and wish a new supplier can offer. Through comparison, Korozo decides to choose Shiner as its new supplier.

Actually, Korozo do not trust Shiner very much at the beginning time of contacting with Shiner. The reasons are simple such as stability of product quality, lead time, after sales services and so on. A number of companies in Asia cannot provide those at a high level. Hence, Shiner pays more attention on explaining and introducing its advantages again and again.

Shiner’s products have been certified and approved by international and Chinese industry standards – EEC, US FDA, California’s 65 standard, ROHS, China’s ISO 9001. Product quality has been able to match and exceed the quality demands and regulatory requirements that western markets require.

Through several rounds of negotiation and comparison, Korozo finds that Shiner has competitive selling price compared with those leading western manufacturers such as Exxon Mobile, DuPont, and Innovia.

Shiner can utilize different materials for web films and coatings to meet client’s various and specific requirements, while the large multinational producers only provide limited products with either BOPP or BOPET being used as web film.

Shiner’s high efficient coating device reduces manufacturing time. Shiner has the largest capacity in China – 6,000 tons, will increase to 12,000 tons with installation of new line in 2008, which grows confidence of customers, for being able to meet orders at peak seasons.

Shiner has a technical centre run for 10 years; over 20 engineers and technicians are specialized in film production; one of the engineers is the drafter for the industrial standard of coated film in China.

Through constant comparisons and reviews, Korozo convinces that Shiner is the ideal target that they are looking for.