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China's Packaging Machinery Market Research Report - PMMI

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a. To develop new products of different types, for example, a bakery that is<br />

considering producing soft drinks.<br />

b. To expand scale of operation for greater production capacity.<br />

c. To introduce automation in order to reduce manual labor.<br />

d. To enhance the image of the companies and upgrade their products.<br />

e. To replace the machinery in use.<br />

(4) Major means of importation as collected in survey:<br />

a. To entrust foreign trade company to import packaging machinery.<br />

b. Centralized purchasing by home office of transnational corporations.<br />

c. Stable relations with familiar manufacturers<br />

d. Enterprises also get information from professional periodicals, and then<br />

contact the desired manufacturers or agency.<br />

e. Recommendation by other enterprises in the same trade.<br />

f. Some corporations make use of its control-stock agency to import packaging<br />

machinery for its subsidiaries.<br />

g. A small percentage of transactions are done at expositions, which function as<br />

important sources for information about the development of packaging<br />

machinery.<br />

h. The Internet may provide a direct source to learn about manufacturers.<br />

i. Tendering.<br />

(5) As suggested in the question survey imported machinery is in better<br />

performance in terms of:<br />

a. Speed<br />

b. Stability<br />

c. Automation<br />

d. Precision<br />

e. Easy operation<br />

(6) The survey also reflects the major problems with imported machinery:<br />

a. Expensive. The price of the machinery imported from Europe or the United<br />

States is usualy ten times that of domestic ones.<br />

b. Longer period of purchase. As a rule, it takes one year or so to receive the<br />

machinery after an order is placed.<br />

c. Inadequate maintenance<br />

d. Passive manufacturers. Some manufacturers do not inform their Chinese<br />

end-users of the cease of production of some parts.<br />

e. Higher demand for the quality raw materials required by imported machines.<br />

Many imported machines are not compatible with domestic raw materials.<br />

f. Expensive parts and fittings. To solve the problem caused by expensive parts<br />

and the lack of parts and fittings with the sale agency, most of domestic<br />

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