Canneed Instrument Ltd.

Canneed Instrument (HK) Limited has been serving the canmaking industry in China for more than 10 years. Based in in Zhaoqing, a small town about 120 km from Guangzhou, the company started in 1998 as a quality control equipment distributor. Now it does much more. Canneed manufactures quality control equipment and products for the food, beverage and canmaking industries and has an active research and development arm. Key products for the canmaking industry include a seam monitor, a digital enamel rater, a digital body blank gauge and a pop and tear tester.

Innovation In Testing

Eric Wu, Overseas Marketing Director,
Shanghai Macwell and Z.W. Bai,
General Manager, Canneed
at Metpack 2008

General Manager Z W Bai comments: “We consider our Pop and Tear Tester (PT Tester) the first of its kind in the canmaking industry. This tester is used to test the strength of pop and tear of certain can ends. A traditional PT Tester can usually test one or two types of can. By changing the shape of the clip installed and choosing the appropriate end holder, coupled with the tailor made computer programme, a Canneed PT tester can be set to test a number of different types of ends, such as EO/ RP /SOT/ OVAL/ ALUFIX / SNAP. It is sort of one tester fits all.”

At the start, Canneed mostly served the domestic market, which accounted for 80 per cent of sales. However, the company has recently made a push to market its products overseas, participating in MetPack 2008, and Cannex and Propak Asia this year. Mr Bai comments: “We think the Canneed brand has a good reputation among our overseas customers. Recent years have seen our export sales increasing steadily and now our market reaches out to South East Asia, Middle East, Europe, North and South America.” Indeed, Canneed has recently made a sale to a US canmaker.

Can Measure Desk
for Rear Stations

This is a major advance, as even up to the early 2000s many of the key overseas canmakers who dominated the industry in China considered that Chinese made products did not meet their requirements. Canneed has played an important role in changing that perception, comments Mr Bai: “Through our proactive marketing efforts by providing free testing of our equipments to these corporations we have gained their confidence and some of these corporations are now our regular customers.”

‘Doing Quite Well’

CanNeed HK at Cannex

In terms of profitability and revenue, Canneed says it is “doing quite well”, due in part to its small town location which keeps costs down. With business increasing, the company is relocating to premises twice as large in the same town. Recession, says Mr Bai, has had little impact. “As a matter of fact, the recession is in our favour as companies are looking for high quality products at competitive prices. We think our products meet those requirements.”

However, the company is not complacent: “We will continue to allocate a good size of our resources to research and development, which we think are the key to our future growth. We will continue to recruit qualified engineers from universities this summer to enhance the team.” R&D is the biggest area of expenditure for the company and is part of its long term development plan.

Looking To The Future

Axial Load Tester

Looking ahead, Canneed has plans to upgrade its existing products and there are a couple of new products in the pipeline. Mr Bai believes that “the overseas market holds the key to our growth. We will do more marketing overseas with a view to promoting the “Canneed” name to be an internationally recognised brand. We are also exploring the possibilities of teaming up with an overseas company in mutually promoting each other’s products in our respective markets.”

Overall, Mr Bai is positive about the canmaking industry in China, which is experiencing rapid growth. He points out that although GDP is expected to slow to 8 per cent for 2009, this is still a respectable growth rate compared with the stagnant world economy.

Pasteurisation Temperature Monitor

Growth in the market means increased competition as new players come onto the scene. However, Mr Bai is not worried: “The pie is getting bigger. There are big and small canmaking companies springing up in China. There is no sign of slowing down in the domestic consumption of canned or bottled beverage and food products. We think there is still a lot of room for growth for the domestic markets for our products. As for the economies of the rest of the world, we know there is likely to be little growth, but we think we have a competitive edge over our overseas counterparts as far as costs are concerned.”

(as published in August 2009 issue

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