Newamstar Increases R&D Investment to Lead via Innovation

On the afternoon of March 5, 2012, General Secretary Hu Jintao emphasized during the deliberation of the Jiangsu delegation at the Fifth Session of the 11th National People’s Congress that Jiangsu should proceed from its own conditions and advantages, follow the new requirements of the new development stage and new trends in international industrial evolution, take industrial upgrading as the main direction, further promote industrial restructuring, accelerate the manufacturing industry’s ascent to high-end, consolidate and enhance the advantages of the real economy, build the “Jiangsu Creation” brand, and form a modern industrial system with international competitiveness. As the leading equipment supplier and an excellent representative of innovative enterprises in Jiangsu Province in China’s liquid (beverage) packaging machinery industry, Newamstar established a new positioning as “China’s high-end liquid (beverage) packaging machinery expert and leader” in 2011, with a focus on “high-end”, which coincides with the requirements of the General Secretary.

Since the strategic reorganization in 2003, Newamstar has transitioned from the era of “single combat” filling machines to the era of production lines. Through adjustments in development direction, Newamstar has quickly gained new life, achieved a breakthrough as a “hundred million yuan enterprise”, and become a genuine “packaging machinery expert” in the same industry.

With the rapid development of the company and profound changes in the industry, in 2006, Newamstar established a new development idea of “providing complete solutions for beverage factories”, which has pushed Newamstar onto a new level and successively realized the application of key technologies including aseptic filling technology, moderate temperature filling technology, hot filling technology, bottled water filling technology, and blow molding technology.

At the end of 2009, Newamstar entered a higher level of development. With major changes in domestic and international economic environment, the “shuffle era” has arrived. Newamstar quickly made a series of major adjustments and reforms, and successively implemented the enterprise management model reform centered on “target management”. It established the new positioning of “China’s high-end liquid (beverage) packaging machinery expert and leader”, and is committed to helping liquid (beverage) enterprises build “ideal factories” and has won recognition and trust from many well-known international and domestic enterprises.

Through years of accumulation and rapid development, going high-end has become our firm choice!

Going high-end is the need of the times. Entering the 21st century, with the continuous improvement of people’s living standards, the demand for food and beverages is increasing, and the requirements are also rising, which directly promotes the vigorous development of the food and beverage industry and strongly facilitates the liquid packaging machinery industry to move towards higher levels.

In recent years, the country has continuously strengthened regulation of the food and beverage industry, and consumers are increasingly emphasizing food and beverage safety. Coupled with the constant rise in raw material costs and labor costs, the beverage industry has entered a “shuffle era”. The pace of branding, scaling up and standardization has accelerated, industry concentration has further increased, and demand for beverage packaging machinery tends towards high-speed, while also raising higher requirements for equipment technology and quality. The speed of our production lines has increased from 24,000 bottles/hour, 30,000 bottles/hour in the past to 36,000 bottles/hour, 42,000 bottles/hour, 48,000 bottles/hour. In the future, we will also move towards 51,000 bottles/hour, 60,000 bottles/hour, 72,000 bottles/hour and even higher speeds. The faster the speed, the higher the requirements. Times are developing, society is progressing, and customer demands are constantly improving, requiring us to constantly climb upwards and break through limits, keeping pace with the times and synchronizing with the development of food and beverage enterprises, even one step ahead.

Going high-end is the need of the country and local authorities. In the country’s 12th Five-Year Development Plan, the state has placed the development and revitalization of the equipment manufacturing industry in a more prominent position. As an industry that the country pays close attention to, the equipment manufacturing industry has the characteristics of technology-intensive, high value-added, and strong driving effects. It enjoys great national support and has broad development prospects.

The equipment manufacturing industry is a symbol of a country’s industrial rise and is the foundation and core competitiveness of a country’s manufacturing industry. It has high industrial relevance, strong employment absorption capacity, capital and technology intensity and other characteristics. Taking the initiative to seize the high-end equipment manufacturing field is a strategic focus for developed countries to seek the status of a world industrial power, with Germany being the most typical case. As the world’s number one equipment manufacturing power, Germany stood firm and thrived alone amidst the financial crisis and the European and US debt crises, relying on its powerful manufacturing industry, with equipment manufacturing at the “highest end” globally, which is very worthy of our reference and learning.

Located in the heart of the most dynamic economic circle in China, the Yangtze River Delta, Newamstar is endowed with unique conditions and advantages, bordering rivers and seas, close to Shanghai, with a solid industrial foundation and abundant human resources. In addition, in recent years, the provincial party committee and provincial government have attached great importance to the equipment manufacturing industry and introduced a series of policies and measures to encourage and support the development of the equipment manufacturing industry, requiring and hoping that the equipment manufacturing industry will achieve the transformation from small to large, from light to heavy, from crude processing to fine processing, from ordinary products to high-tech products, from low value-added to high value-added, and from equipment manufacturing to overall integration. With all things ready, the east wind is coming, and Newamstar is in such a good entrepreneurial environment. Opportunities are rare and should be carefully grasped to go all out and promote the company’s high-end development!

Going high-end is the need of the industry. As the leading supplier in China’s liquid (beverage) packaging machinery industry in recent years, Newamstar has accelerated the pace of “import substitution” and the market share of high-end customers continues to increase. At the same time, we must also clearly recognize that European suppliers still dominate the “hegemony” in China’s beverage market. For example, Newamstar’s mature aseptic cold filling technology for carbonated drinks, which is exclusive in China, currently has the highest speed of 42,000 bottles/hour, while the market for aseptic cold filling lines above 48,000 bottles/hour is still in the hands of European suppliers. The task is arduous and there is a long way to go.

As a leader in the industry, Newamstar is not only responsible for its own development, but also bears the heavy responsibility of leading the industry forward. Only by moving towards the high-end and positioning itself at the high-end can it send the strongest message on behalf of the industry.

Going high-end is our own need. The 2008 financial crisis and the European and American debt crises in recent two years have had a big impact on China’s manufacturing industry. The constantly rising financing costs, raw material costs and labor costs have left many enterprises gasping for breath, and some places have even seen a “closure tide” and an “escape tide”. It is foreseeable that in the near future, enterprises with low technology content, low quality and low value-added will gradually shift from the east or be eliminated. In recent years, the reason why Newamstar has been able to achieve leapfrog development and fly against the wind is attributable to our strategic transformation and change in development approach, focusing on “large customers, large projects, and whole plant engineering”, attributable to the development of a series of core products, and attributable to our increasing emphasis on people-oriented management.

Jiang Hongkun, member of the Provincial Party Standing Committee and Secretary of the Suzhou Municipal Party Committee, has repeatedly emphasized that the era of excessive profits in manufacturing has passed, export-oriented growth can hardly continue to drive economic development, and innovation strategy will be the driving force in the future. We should shift from factor input to innovation input, combine the leading role of human talent, and realize the transformation of the economic growth model. Secretary Jiang’s remarks hit the nail on the head. In recent years, Newamstar has raised the importance of technological innovation to a new level. The company’s leadership believes that technological innovation is the inexhaustible driving force for Newamstar to achieve sustainable development and leapfrog development. To this end, on the basis of the R&D center, the company has also established the New Product Development and Continuous Improvement Committee, Innovation Center and the only microbiology laboratory in the beverage packaging machinery industry, continued to increase R&D investment, and constantly created a strong atmosphere of innovation and creation.

In 2012, according to the new situation and requirements, Newamstar carried out internal functional reforms of the after-sales service department and quality inspection department, and established new Customer Service Department and Quality Control Center to further improve product quality and customer service quality. In terms of product quality, we not only pursue “ease of use and durability”, but also pursue energy saving, environmental protection and humanization; in terms of customer service quality, we not only pursue customer satisfaction, but also customer admiration.

With the prosperity and rejuvenation of the motherland, facing the huge opportunities in the liquid (beverage) packaging industry, Newamstar people are based at the high-end with the dream of building the best liquid (beverage) packaging machinery in China, committed to helping liquid (beverage) enterprises build “ideal factories” and creating maximum value for customers. With the vision of “packaging a better future”, the mission of “revitalizing the national industry”, the purpose of “customer satisfaction, employee satisfaction, and social satisfaction”, and the corporate spirit of “exquisite, pragmatic, pioneering and innovative”, the company strives to build a leading and world-famous comprehensive liquid (beverage) packaging machinery enterprise group in China!