Fenmei Packaging's Greenland Investment in Germany
Fonmei Packaging originated in Shandong, China and mainly serves food companies such as liquid dairy products and non-carbonated soft drinks. Since its establishment in 2003, it has broken the monopoly market structure, completed important strategic layouts such as Hong Kong listing and overseas investment, and quickly grew into the world's third largest comprehensive solution supplier of liquid food sterile packaging solutions. The green space investment made by Fonmei Packaging in Germany is a representative of Chinese private enterprises whose Chinese brands go abroad to build their own factories and own brands, and has become a multinational Chinese packaging company.
Go abroad
The liquid food sterile packaging industry is an industry that is highly monopolized by European companies, and Europe accounts for nearly one-third of the global sterile packaging market share. European customers of Fenmei Packaging have always encouraged Fenmei to build factories in Europe to solve the problem of excessive supply cycle. Europe has mature processing equipment and raw materials supply, so it is also an inevitable choice in the strategic layout of Fonmei packaging.
Since its establishment, Fanmei has been considering important strategic layouts such as overseas investment. In 2011, it spent 50 million euros to establish its first overseas sterile packaging material factory in Germany and successfully advanced into Europe - the headquarters of its competitors in this industry and an important regional market in the industry.
In 2012, the first overseas packaging material factory "Fanmei Sterile Packaging Manufacturing Co., Ltd." established by Fanmei Packaging in Germany was put into production with an annual output of 4 billion bags. In May 2013, Fonmei added another 38 million euros to establish a second production line. The investment signing ceremony was held under the witness of Li Keqiang and Premier Merkel.
Through unremitting efforts, the German factory of Fonmei Packaging has achieved profitability since 2015 and completed the expansion of production lines in 2017. It currently has two production lines, and completed the expansion of automated warehouses in 2018. It has multiple automatic handling robots, and its area has been expanded to 225 mu, which is equivalent to the area of 15 football fields. The annual production capacity has increased to 8 billion bags. The number of employees currently employed is 242. In November 2017, Fonmei won the "Medium-Size (Greenland) Investment Award" of the "Excellent Investment Award for Chinese-funded Enterprises in Germany".
In an interview, Bi Hua, CEO of Fenmei Packaging, said: Germany's Harley factory has increased our world market share. Europe is a very important sterile packaging market in the world and enjoys a high reputation in the food industry. The local commitment of Harley, Germany, has helped us deepen our customer recognition and accelerate our development and thus expand our share in the international market. Our seven years of business operations in Halle, Germany make us believe in the correctness of investment decisions.
Employee comments
Fenmei Packaging is a well-known enterprise that has invested and successfully developed locally, and is a model representative of the local government in terms of employee hiring, talent training and investment attraction. On April 27, 2019, the German Photos and newspapers published an introduction to the German factory in Fonmei. In addition to introducing green and environmentally friendly factories and German manufacturing of Fenmei products, the comments from Fenmei German employees have aroused the interest of many readers in Fenmei Factory:
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The value-added services brought to customers by the Fonmei German factory also play an irreplaceable role in the local German, European and even global markets. The 2018 Saan State Employment Press Conference was held at the German factory in Fonmei to commend Fonmei's contribution to local employment. Fonmei has participated in investment promotion conferences in Saanzhou in China and Germany many times, and introduced investment experience as a representative company.
Through the challenges, risks and management and operation experiences faced by Fonmei Packaging in Germany, we have witnessed win-win cooperation between China's investment and local markets, and it is also a successful embodiment of President Xi's Belt and Road Initiative. Fenmei Packaging is determined to promote sterile packaging of liquid food made in China to the world, become an excellent representative of Chinese companies' investment in Germany, provide more Chinese companies with successful experience in cross-border investment, and establish a good image of Chinese investors in German society.
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