Avery Dennison have invested $30 million in a state-of-the-art pressure sensitive facility based near Shanghai which is intended to open up the Chinese market.
Avery Dennison, manufacturer of self adhesive materials and office products, ahs opened a state-of-the-art factory in Kunsham, China. The US$30 million complex, located on a 100,000 square metre site in Kunsham city (50 kilometres west of Shanghai in the thriving Yangtze River Delta), will produce about 25 million square metres of self-adhesive material annually, serving both China’s label printing industry and Asia-Pacific exports markets.
The factory will produce about 25 million square metres of self-adhesive material annually – at about one metre wide, enough to stretch from Beijing to Shanghai 25 times – though production can be easily increased to meet extra demand.
The design and location of the Kunsham factory allow Avery Dennison to grow with the market. Initially supplying self-adhesive materials to China’s label printing industry, the factory will be the focus of the next decade’s investments in such diverse areas as office labels, industrial adhesives, diaper tape, and self-adhesive films for outdoor advertising.
The Shanghai Institute of Mechanical and Electrical Engineering and Butler of the USA co-operated to meet the special design needs of the project. Mindful of the good prospects for future growth, the companies designed the plant to be easily expandable. Furthermore, to facilitate its quick construction to high international standards, it was conceived and built as a prefabricated structure.
Such extensive planning work enabled the plant to be fully operational by July 1995 after ground breaking in October 1994. As start-up, the plant had 5,500 square metres of manufacturing, office, and laboratory space. In addition, the site has a dormitory, a garage and other ancillary buildings.
Mr T T Chien, managing director of Avery Dennison which oversees the operation of the Kunsham factory and the China market, explained that the self-adhesive label can be found virtually everywhere today, from labels on packaged consumer goods, pharmaceuticals and cosmetics, to price stickers in the supermarket and shipping labels on courier packs. ‘With the growth of industries supporting such uses, and the rapidly growing consumer market, we are confident that the future demand for self-adhesive materials in China is healthy,’ he said.
‘Our factory in Kunsham will be the first in China to be totally solvent-free,’ Mr Chen explained. In addition, the process will use 100 per cent solid silicone and a coating-weight gauge system to optimise and standardise coating density and reduce waste. This ensures the flexibility for printing and also provides good strength for die cutting and stripping. ‘In many respects, this is one of the most sophisticated adhesive coating lines in China today,’ he continued.
Over the next decade, Avery Dennison plans investments in such diverse areas as office labels, industrial adhesives, diaper tape, and self-adhesive films for outdoor advertising. New distribution centres will also be established in Gaungzhou and Beijing or Tianjiu.
‘Expansion will take place shortly as the new production process gets established. Avery Dennison is committed to China and this first on-the-ground investment supports our long-term growth objectives,’ Mr Chen said.
Avery Dennison began initial research into the China market in late 1993 and quickly decided to invest in the country. Within two years Avery China has established sales offices in Shanghai, Guangzhou and Tianjin, a distribution centre in Shanghai, and, as of mid-July this year, the fully operational, international-standard Kunshan factory.
Avery’s commitment to establishing comprehensive service and distribution net-works and sophisticated production facilities in China can be seen in the company’s willingness to make fast decisions and also in its use of talented local individuals to manage and support the operations. ‘Localisation enables us to operate with a deeper understanding of the market and react quickly to our customers’ needs,’ noted Mr Chen.
In 1994 Avery Dennison established its Asia Pacific Group headquarters in Hong Kong to strengthen and expand its presence in the region with an emphasis on China and the emerging economies of South East Asia. The company is organised around three core business sectors: pressure-sensitive adhesives and materials, office products and converted products.