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Mexico
Packaging Machinery
Market Research Report
The Findings of a Market Research Study Conducted by Hanhausen & Doménech
Consultores, S.C., exclusively for the Packaging Machinery Manufacturers Institute
January 2002
© Copyright 2002. Packaging Machinery Manufacturers Institute, Inc. All rights reserved.
The information contained herein shall not be distributed or shared by the recipient. No
parts of this document may be reproduced without the express written permission of
PMMI.
EXECUTIVE SUMMARY.................................................................................................. 1
I.
ECONOMIC/ POLITICAL/ FINANCIAL ISSUES ................................................. 4
1.1.
1.2.
1.3.
II.
ECONOMIC PERFORMANCE AND TRENDS ................................................................. 4
POLITICAL OUTLOOK ............................................................................................... 6
ISSUES IMPACTING IMPORT OF PACKAGING MACHINERY INTO M ÉXICO .................. 7
2.1.
2.2.
2.3.
2.4.
2.5.
2.6.
2.7.
2.8.
2.9.
2.10.
2.11.
MÉXICO’S PACKAGING MACHINERY MARKET ........................................ 9
III.
3.1.
3.2.
3.3.
3.4.
3.5.
MARKET SIZE AND POTENTIAL................................................................................ 9
PACKAGING MACHINERY TRENDS, 2002–2003 ..................................................... 10
BEST P ROSPECTS FOR PACKAGING MACHINERY SALES , 2000–2002 ..................... 11
DOMESTIC VS. IMPORTED MACHINERY.................................................................. 12
ORIGIN OF IMPORTED MACHINERY........................................................................ 12
CUSTOMER’S EVALUATION OF IMPORTED PACKAGING MACHINERY, S ERVICE ..... 14
MARKETING TECHNIQUES AND PRODUCT EXPOSURE ............................................ 14
EQUIPMENT FINANCING......................................................................................... 16
MARKET DRIVERS—FACTORS THAT INFLUENCE PURCHASING DECISION ............ 17
REGULATORY F RAMEWORK .............................................................................. 17
IMPORT DUTIES ................................................................................................. 18
THE FOOD INDUSTRY....................................................................................... 20
INDUSTRY O VERVIEW ............................................................................................ 20
RANKING OF COMPANIES BY SIZE.......................................................................... 20
KEY PLAYERS ........................................................................................................ 21
SUMMARY OF INTERVIEWED COMPANIES .............................................................. 21
COMPANY PROFILES .............................................................................................. 24
Axa / Kir Alimentos, S.A. de C.V. ........................................................................... 24
Champiñones Monte Blanco, S.A. de C.V. .............................................................. 28
Grupo CHEN, S.A. de C.V. ...................................................................................... 31
DANONE de México, S.A. de C.V. ......................................................................... 34
Empacadora Bernina, S.A. de C.V. .......................................................................... 38
Grupo Warner Lambert México, S.A. de C.V. ......................................................... 45
Herdez, S.A. de C.V. ................................................................................................ 49
Joyco de México, S.A. de C.V. ................................................................................. 56
Conservas La Costeña, S.A. de C.V. ........................................................................ 60
Helados Holanda....................................................................................................... 66
Laboratorios Griffith de México, S.A. de C.V. (MTY)............................................ 70
McCormick Pesa, S.A. de C.V. ................................................................................ 73
Nabisco, S.A. de C.V. ............................................................................................... 77
Nestlè México, S.A. de C.V. .................................................................................... 80
Organización La Corona, S.A. de C.V. .................................................................... 85
Productos de Maiz, S.A. de C.V. .............................................................................. 95
Productos Gerber, S.A. de C.V. ................................................................................ 99
Productos Lol Tun, S.A. de C.V. ............................................................................ 102
Ricolino, S.A. de C.V. ............................................................................................ 106
Sabormex, S.A. de C.V. .......................................................................................... 111
Sigma Alimentos, S.A. de C.V. .............................................................................. 116
Sky Chefs, S.A. de C.V. ......................................................................................... 122
Unifoods, S.A. de C.V. ........................................................................................... 125
UNILEVER Margarinas De México, S.A. de C.V. ................................................ 128
IV.
THE BEVERAGE INDUSTR Y........................................................................... 131
4.1.
4.2.
4.3.
4.4.
4.5.
V.
INDUSTRY O VERVIEW .......................................................................................... 131
RANKING OF COMPANIES BY SIZE........................................................................ 133
KEY PLAYERS ...................................................................................................... 134
SUMMARY OF INTERVIEWED COMPANIES ............................................................ 134
COMPANY PROFILES ............................................................................................ 136
Alpura ..................................................................................................................... 136
BACARDI y CIA., S.A. de C.V. ............................................................................ 140
Derivados de Frutas, S.A. de C.V. .......................................................................... 144
FRUGOSA, S.A. de C.V. (Grupo Jumex) .............................................................. 148
Jugos del Valle, S.A. de C.V. ................................................................................. 152
Grupo Modelo, S.A. de C.V................................................................................... 156
Parmalat de México, S.A. de C.V. .......................................................................... 161
Pascual Boing, S. de R.L. ....................................................................................... 164
THE PERSONAL CARE INDUSTRY................................................................... 168
5.1.
5.2.
5.3.
5.4.
5.5.
VI.
6.1.
6.2.
6.3.
6.4.
6.5.
KEY PLAYERS ...................................................................................................... 168
Avon Cosmetics, S.A. de C.V. ............................................................................... 169
Grisi Hermanos, S.A. de C.V. ................................................................................ 174
House of Fuller, S.A. de C.V. ................................................................................. 179
Industrias Alen, S.A. de C.V. ................................................................................. 183
Industrias LAVIN de México, S.A. de C.V. ........................................................... 187
Industrias Selectas (Myrurgia), S.A. de C.V. ......................................................... 191
Procter & Gamble Manufactura (P&G), S. de R.L. de C.V. .................................. 194
Productora de Cosméticos, S.A. de C.V. (Wella)................................................... 202
UNILEVER Home and Personal Care, S.A. de C.V. ............................................. 206
Grupo Warner Lambert México, S.A. de C.V. ....................................................... 210
THE PHARMACEUTICAL INDUSTRY.......................................................... 214
KEY PLAYERS ...................................................................................................... 215
APOTEX (Protein, S.A. de C.V.) ........................................................................... 217
Boehringer Ingelheim Promeco, S.A. de C.V. ....................................................... 221
Eli Lilly de México, S.A. de C.V. .......................................................................... 226
Laboratorios BEST, S.A. ........................................................................................ 230
Merck Sharp and Dohme de México S.A. de C.V. ................................................. 233
Novartis................................................................................................................... 236
Pfizer, S.A. de C.V. ................................................................................................ 241
VII.
APPENDIX A........................................................................................................ 246
Executive Summary
PMMI commissioned the production of a detailed report describing 50 Mexican companies
that present tangible business opportunities for the sale of packaging machinery in the
coming months.
This report was produced by Hanhausen & Doménech Consultores (www.hdc.com.mx), a
México City–based consulting firm, specializing in market research, identification of
specific business opportunities, and project development.
The report is divided into six chapters. The first describes México’s current economic and
political environments and their potential impact on future equipment sales. The second
describes the local market for packaging machinery, including imports and overall trends. It
also presents key issues influencing the purchasing decision process and information on
import tariffs, trade regulations, and the benefits that exisiting free trade agreements offer
to suppliers from particular countries.
Chapters three to six contain brief descriptions of the food, beverage, personal care, and
pharmaceutical industries. They include a general assessment of these industries and of
short-term sales opportunities, import trends by country, as well as the company profiles.
These consist of a detailed description of the individual companies that were interviewed
for this study and that will purchase packaging equipment in the coming months.
Economic and Political Outlook
The Mexican economy has performed well in recent years. México was able, for the first
time in more than 25 years, to avoid a major economic crisis as a new administration took
office. Economic performance in México during 2001 was mostly affected by the US
economic slowdown, making local economic activity weaker than originally forecast, with
GDP closing the year with a decline of 0.1%. Progress continued in abating inflation, which
closed at 4.4%, its lowest level in about 30 years.
The economy also showed a series of positive signs; inflation and, most importantly, real
interest rates continued to decline. Passive interest rates dropped to about 7%, which is
about a 50% reduction over the previous year.
The government’s forecasts for 2002 expect GDP growth to reach 1.7%, inflation to close
below a 4.5% increase, and the exchange rate to end the period at MXP 10.1 (Mexican
peso) per US$1 (US dollar). The relationship between expected inflation and nominal
exchange rate implies a 6.5% devaluation of the currency over the period.
Despite packaging machinery imports in México being highly influenced by economic
performance, 2001 was an average to positive year for packaging machinery sales, as there
were more positive factors influencing packaging machinery sales than those negative
factors of the economy.
1
Positive factors included:
a) Companies that placed on hold their investment plans in 2000 because it was an
electoral year moved forward with their investment plans in 2001.
b) The Free Trade Agreement signed with the European Union reduced tariffs.
c) Low interest rates allowed for credit purchases.
d) The peso appreciated versus the US dollar and the euro, thus costs of imported
items were lower in terms of the local currency.
Several of these positive factors are likely to continue to promote packaging machinery
sales during 2002. The key factor that would result in fewer potential sales is a drop in the
value of the peso against international currencies.
México’s Packaging Machinery Market
México’s packaging machinery market represented about US$422 million during 2000.
Official figures for 2001 are not yet available, however, based on preliminary import
figures, the total market value for 2001 could reach US$440 million with close to US$400
million being imported equipment.
The Mexican packaging machinery market has registered constant growth since the 1994
economic crisis and has almost doubled its value in six years.
Best Prospects for Packaging Machinery Sales, 2002–2003
In general terms, machinery types that represent the best sales prospects for the following
two years are:
1.
2.
3.
4.
5.
6.
7.
8.
Carton form, fill, and seal machines
Labeling equipment
Filling machines for semiviscous products
Bottling lines for plastic bottles
Coding equipment
Palletizing machinery
Conveyors
Horizontal form, fill, and seal machines
Opportunities
This report presents specific packaging machinery sales opportunities within 50 companies
from the beverage, personal care, pharmaceutical, and food industries. The combined total
of these opportunities tops US$110 million over the next 48-month period.
2
Companies in the beverage industry have indicated they will purchase over US$23 million,
with important opportunities at Frugosa, Pascual Boing, Parmalat, and Bacardi.
Frugosa (Jumex) is the largest fruit juice manufacturer in México and will start a process
for upgrading its equipment, including packaging machinery. Pascual Boing will purchase
new equipment to increase its production capacity and improve productivity. Parmalat will
introduce new production lines for teas and condensed milk, which will require important
purchases of packaging machinery. Bacardi will also introduce a new production line for
their rum-based coolers called “Breezers,” creating the need for new packaging equipment.
In the food industry, we present opportunities valued at over US$46 million, with
especially interesting projects taking place at Sabormex, Nestlè, and Herdez.
Sabormex was recently acquired by “La Costeña,” who wants to upgrade all the production
processes and increase production capacity. Part of these additional investments will
include the purchase of packaging machinery.
Nestlè has plans for modernizing their filling processes for coffees and other powdered
products. Herdez will increase production capacity at their 12 manufacturing facilities,
requiring the purchase of new packaging equipment. This process will begin with their
Ensenada and San Luis Potosi–La Paz plants.
Personal care companies plan to purchase US$38 million worth of packaging machinery,
with particularly important projects at Industrias Alen and Procter & Gamble. Alen is
building a new manufacturing facility in the City of Puebla for which it will need to
purchase process and packaging machinery at an estimated investment of US$18 million.
Procter & Gamble has plans to replace existing equipment including US$13.5 million in
packaging machinery.
As for the pharmaceutical industry, some of the companies surveyed for this report have
significant purchasing plans, like Pfizer with a budget of US$3 million and Novartis with
US$2.5 million. Pfizer will initiate an investment progr am to continue improving its
manufacturing efficiency and increase its production capacity. Novartis has plans for
replacing its blister machines.
These projects are just some of the examples of the opportunities outlined in the individual
company profiles presented in this report.
3
I.
Economic/ Political/ Financial Issues
1.1.
Economic Performance and Trends
México’s economy during 2001 would be aptly described as “a very stable environment.”
There was basically no economic growth but no crisis either. For a country used to going
through an economic crisis in the first year of every new administration, the news is
encouraging. Economic performance in México during 2001 was mostly affected by the US
economic slowdown, making local economic activity weaker than originally forecasted,
with GDP closing the year with a decline of 0.1%. Progress continued in abating inflation,
which closed at 4.4%, its lowest level in about 30 years.
GDP
Mexico's Economic Performance
Inflation
6
4
35
40
7.1
5.2
4.8
3.7
3.5
35
30
4.5
27.7
1.7
2
25
0
20
-2
18.6
15
15.7
-4
-6
-0.1
12.3
5.6
-6.2
-8
1994
1995
10
10.5
6.8
Inflation %
GDP Growth %
8
4.5
5
0
1996
1997
1998
1999
2000
2001/e 2002/e
Source: HDC with information from Banco de México
The Fox administration started 2001 making rosy forecasts on economic growth, but a
deteriorating international environment combined with weak oil prices, a significant drop in
exports, and a congress that froze most presidential initiatives hindered achievement of
such a goal.
While on average there was no growth for this period, economic performance was uneven
between sectors. Those most negatively affected were exporters to the United States and the
construction industry. Despite this static activity, we find that private consumption
remained solid throughout the year, albeit at a reduced but positive growth rate. This is a
key factor in explaining the demand growth for those manufacturing companies focused on
the Mexican consumer. This is confirmed by the 7.5% growth in retail sales during 2001.
The economy also showed a series of positive signs; inflation and, most important, real
interest rates continued to decline. Passive interest rates dropped to about 7%, which is
about a 50% reduction from those of the previous year.
4
The exc hange rate remained stable and continued to appreciate against the US dollar in real
terms. There is strong internal criticism for allowing the exchange rate to appreciate, but the
central bank indicates that market forces determine the exchange rate. A healthy level of
direct foreign investment (FDI), especially into the banking and insurance sectors, and
relatively higher real returns have sustained an inflow of dollars to the Mexican economy,
which has served to finance the trade deficit.
There is a debate as to which is the key factor determining México’s trade balance. Various
econometric models indicate that the US economic performance weighs in more heavily
than real appreciation of the exchange rate. In any case, both factors had an impact during
2001, creating a negative trade balance, with a deficit expected to reach US$9.7 billion, a
21.6% increase over the previous year. Preliminary figures estimate exports for the year at
US$158.5 billion and imports at US$168.4 billion. The drop in internationa l oil prices
explains the significant increase in the deficit.
Direct Foreign Investment to Mexico
25
20
15
10
5
0
1992
1993
1994
1995
1996
1997
1998
1999
2000 2001/e 2002/e
Source: HDC with information from Banco Nacional de México
Peso vs. Dollar Exchange Rate
12.0
Pesos per Dollar
Thousand million dollars
30
10.0
8.0
6.0
4.0
2.0
0.0
1994
1995
1996
1997
1998
1999
Source: HDC with information from Banco Nacional de México
5
2000
2001 2002/e
The government’s forecasts for 2002 expect GDP growth to reach 1.7%, inflation to close
below 4.5%, and the exchange rate to end the period at MXP10.1 per US$1. The
relationship between expected inflation and the nominal exchange rate implies a 6.5%
devaluation of the currency over the period.
If what the central bank indicates—that market forces determine the exchange rate—is true,
the government’s forecasts can’t predict the exchange rate. In all likelihood, the peso will
continue appreciating in real terms as long as the downward trend in interest rates continues
in the United States, and México keeps paying an attractive premium on local portfolio
investments.
México begins 2002 amidst the controversy generated by a so-called “fiscal reform bill,”
approved by congress in the first hours of the year. In March 2001 President Fox had
submitted a proposal to expand the sales tax base by including food and pharmaceutical
products, which had been exempt. This measure was expected to generate an additional
US$12 billion to finance social spending, lower the government’s fiscal deficit, and reduce
its dependence from oil revenues. After severe criticism of this proposal and endless
debates, congress developed and approved an alternative plan eliminating corporate
incentives to reinvest profits, eliminating a payroll tax sub sidy, and imposing an additional
5% tax on “luxury” items such as mobile phone use, boots, cosmetics, and restaurants.
There are numerous other measures affecting various industries including personal care and
beverages.
It is not expected that this “fiscal reform” will derail México’s current economic stability
and optimistic outlook. However, it does indicate the type of congress that the
administration has to deal with in order to promote many necessary structural reforms for
the modernization of the Mexican economy.
The market for packaging machinery is highly influenced by the overall behavior of the
economy. According to distributors of packaging machinery interviewed for this study,
packaging machinery sales remained flat during 2001, growing in some cases, declining in
others. Some factors that can explain the stability in this market include: solid consumer
spending, FDI inflows, appreciation of the peso against the US dollar, and an important
reduction in internal interest rates and country risk. All these factors explain why most
companies have moved forward, and will continue to do so, with their investment plans in
the near future.
The Mexican economy is the largest economy in Latin America, and its outlook remains
positive for industrial equipment suppliers.
1.2.
Political Outlook
In México there are eight political parties, of which three have real political power, while
the rest usually join other parties to form coalitions during elections. México’s political
history was dominated by the Partido Revolucionario Institucional (PRI) until the 2000
presidential elections when Vicente Fox, a former Coca-Cola executive and governor of the
state of Guanajuato, was elected president on July 2, 2000, ending 71 years of dominance
6
of the Mexican presidency by the PRI. President Fox ran as the candidate for the coalition
Alianza por el Cambio (Alliance for Change), formed by the National Action Party (PAN)
and México’s Green Environmental Party (PVEM).
At present the National Action Party (PAN) has the presidency and governs 10 states and
over 50% of México’s population. The Institutional Revolutionary Party (PRI) governs 17
states and has relative majority in the federal congress. The Revolutionary Democratic
Party (PRD) governs 4 states and México City, where it also has control of the local
congress.
The first year of the Fox administration has been difficult–and should be viewed in the
context of a major regime and ideological transition. If events are analyzed under this
context, the current political picture in México becomes clear.
It will be unlikely, if not impossible, for Mr. Fox to move forward with any substantive
project or reform because the PRI and PRD see the failure of this administration to be in
their best interest. But both the PRI and the PRD will go through internal elections within a
couple of months to select their new leadership, a process that in all likelihood will
seriously divide and debilitate both parties.
The next congressional election will take place in 2003; meanwhile the Mexican political
agenda will continue to move slowly if at all.
1.3.
Issues Impacting Import of Packaging Machinery into México
Despite packaging machinery sales in México being highly influenced by economic
performance, 2001 was an average to positive year for packaging machinery sales, as there
were more positive factors influencing packaging machinery sales than negative factors
hindering economic growth.
Positive factors included:
a)
Many Mexican companies placed on hold part of their investment plans because
year 2000 was an electoral year, and those had been marked by strong economic
crises in the past. After the 2000 elections and the entrance of the Fox
administration, the Mexican economy remained stable, and those companies that
placed investments on hold in 2000 moved forward with their investment plans
in 2001.
b)
The Free Trade Agreement signed with the European Union reduced tariffs of
packaging machinery from that continent, thus, prices of European machinery
decreased between 4% and 10% during 2000 and 2001.
c)
Low interest rates allowed companies to make major purchases using financial
options that had prohibitive interest rates in the past.
7
d)
México continued to be the most important Latin American destination for
international investments.
e)
The peso appreciated relative to the US dollar and the euro, thus costs of
imported items were lower in terms of pesos.
Several of these positive factors are likely to continue to drive packaging machinery sales
during 2002. The single factor most capable of derailing this demand is a steep depreciation
of the peso, however, this remains unlikely.
México has no major impediments or regulations affecting the import of packaging
machinery. The only possible difficulty might be the need for the importer to be included in
the national register of importing companies. This obstacle can be easily overcome by
requesting a customs broker to be the importer of the equipment. Custom brokers usually
charge from 0.5% to 2% of the value of the merchandise for this service.
Free Trade Agreements give competitive advantages to packaging machinery manufactured
in member countries by eliminating or significantly reducing import taxes. México has
various free trade agreements, the most important being the North American Free Trade
Agreement (NAFTA) and the FTA with the European Union. Other treaties benefit
products imported from Colombia and Venezuela (G3), Bolivia, Costa Rica, Chile,
Nicaragua, El Salvador, and Israel. The Mexican government has initiated discussions with
Japan toward negotiating a free trade agreement with that country.
Most packaging machinery manufactured in the United States and Canada will continue to
have an advantage over European equipment in regards to import duties in the short term.
The agreement with Europe contemplates immediate tariff elimination for some machinery
and a 4- to 8- year phase-out for most packaging machinery tariffs. The FTA with the
European Union was signed in mid-1999.
Currently, products and machinery manufactured in countries with which México has not
signed a free trade agreement are charged a tariff of 10 to 20 percent. US and Canadian
packaging machinery can enter México without tariffs due to the NAFTA.
8
II.
2.1.
México’s Packaging Machinery Market
Market Size and Potential
Imported machinery dominates the Mexican market for packaging equipment, supplying
close to 90% of the total demand. There is local production of packaging machinery, but it
is mostly concentrated in complementary equipment such as conveyors and a few types of
machines that are not highly automated; in some cases these are custom-built or produced
for local medium and small- size companies.
There are no official figures indicating the value of the packaging machinery market in
México. Using import data and calculating the imported equipment’s share of the total
market, it is estimated that the total market value for this equipment represented about
US$422 million during 2000.
Imports for packaging machinery during the six- month period from January to June 2001
reached US$223 million. It is estimated that the closing figure for the whole year was
US$398 million, with a growth rate of 5% over the previous year. Total imports of capital
goods into México reached US$22.5 billion during 2001.
The Mexican packaging machinery market has registered constant growth since the 1994
economic crisis. As a result of that steep economic downturn, the market for packaging
equipment had dropped significantly, first by 30% from US$355 million in 1994 to US$248
million in 1995, and dropping again by 15%, to reach a value of US$210 million by 1996.
This market started to recover during 1997 and has maintained positive growth to date. By
1999 the market reached its pre-crisis value, and in 2001 official import figures, yet to be
released, are expected to show that this market reached its highest historic level at close to
US$400 million.
Packaging Machinery Imports 1993-2001
Mi
lli
o
n
U
400
350
300
250
200
150
100
50
0
199
199
199
199
199
Source: HDC with data of PMMI and Bancomext.
9
199
199
200 2001/
Official figures for the last two quarters of 2001 are not yet ava ilable, but according to
information obtained from packaging machinery distributors, sales were stronger in the first
half of 2001 then cooled down, especially as a result of the international economic
instability and the September 11, 2001, terrorist attacks, which caused some projects to be
temporarily placed on hold.
Despite these negative influences, falling interest rates and a robust peso were strong
enough to enable the packaging machinery market to grow over the previous year. Other
segments of the equipmnent market were severely affected, as imports of capital goods
were decreasing by a rate that reached 13% in December.
2.2.
Packaging Machinery Trends, 2002–2003
Imports of packaging machinery have grown steadily since 1997, and forecasts for the
closing of 2001 anticipate a third consecutive record level. Forecasts for 2002 are difficult,
as fiscal reform measures issued January 1, 2002, are charging significantly higher taxes to
manufacturers of most beverages, some food products, and cosmetics. The reform is being
criticized severely by the private sector, and some companies are planning to go to court
requesting a stay order. The stability of the peso is another factor that remains in flux and
makes it difficult to forecast packaging machinery growth. The peso has maintained
basically the same level against the dollar over the past three years, and inflation has
continued to be greater in México than in the United States. The average exchange rate is
forecast at MXP10.10 per US$1, which means that the Mexican government is expecting
the currency to lose more than 10% in value in nominal terms versus the dollar in the
following months, making imported machinery slightly more expensive.
We estimate that the market will at least maintain its 2001 value during 2002, and in a
positive scenario, it could grow 5% to 15% during the year. The key factors driving this
potential growth are low interest rates, a stronger economy, stability aided by healthier
government finances, and the consolidation of several industries including food, beverages,
and pharmaceuticals.
Most of the companies interviewed are expecting to move forward with their purchasing
plans for new packaging machinery, as they believe that they can take advantage of the
prevailing exchange rate. Further, they expect the economy to change for the better in the
coming years. The evolution of the local market for packaging equipment will depend on
the general economic environment, which in all likelihood will perform better than in 2001.
It is expected that the market for packaging machinery will grow by 5% and 10% during
the next two years, reaching an import value of US$430 million dollars by the year 2003.
The following table presents three possible scenarios for imports of packaging machinery in
the coming years. The first scenario, defined as “realistic,” is based on a 2.5% market
growth during 2002, as companies move forward conservatively with their purchasing
plans. In this scenario, inflation will continue its downtrend to close 2002 at 4.4%, and the
peso will depreciate a slight 5%. It also takes into consideration the potential of private
business accepting the tax increases of the reform measures and a nationwide economic
growth of 1% during the year. For 2003 and 2004, GDP growth is estimated at 4%.
10
Under the “optimistic” scenario, imports of packaging machinery grow 9% over the 2001
level. In this scenario, the exchange rate registers the same level of 2001; GDP grows 2.5%,
and inflation reaches the government target of 4.5%. Under this positive scenario,
companies will accept the fiscal changes, and the results will help the economy grow at
rates higher than 5% in 2003 and 2004.
The “pessimistic” scenario is predicated on the belief that a large number of companies will
postpone plans for new equipment purchases due to the peso devaluation of close to 10%
from its current level, leading to a rise in local interest rates. Further assumptions are that
companies from the food, beverage, and personal care industries are adversely affected by
the new taxes on consumption of their products and that the economy will continue to
maintain a flat level with no growth. Under this scenario, imports drop by 12% during
2002, continue dropping by 2% during 2003, and experience a strong recovery during 2004
with 15% growth.
Packaging Machinery Forecasts
600
500
400
Realistic
300
Optimistic
Pessimistic
200
100
0
199
199
200
2001/ 2002/ 2003/ 2004/
Source: HDC with data of Bancomext. 2001 estimate based on imports Jan-Jun. Forecasts by HDC.
2.3.
Best Prospects for Packaging Machinery Sales, 2000–2002
In general terms, types of machinery that represent the best sales prospects for the
following two years are:
1.
2.
3.
4.
5.
6.
7.
8.
Carton form, fill, and seal machines.
Labeling equipment.
Filling machines for semiviscous products.
Bottling lines for plastic bottles.
Coding equipment.
Palletizing machinery.
Conveyors.
Horizontal form, fill, and seal machines.
11
The mix of these best prospects varies by industry. For this reason we have listed the
different types of packaging machinery to be purchased by companies interviewed in each
of the chapters 3–6 under “Summary of Interviewed Companies.”
2.4.
Domestic vs. Imported Machinery
As has been described, close to 90% of the packaging machinery used in México is
imported. There is some local equipment production, but these machines are not highly
automated. Local equipment includes mainly bag form, fill and seal machines, machinery
for packaging bakery products, tray dispensing machines, sealing machines, palletizing
units, and auxiliary equipment such as conveyors and tape dispensing machines.
During the research process for this report, some local packaging machinery companies
were identified. The most important manufactures machines for packaging bakery products
at Bimbo’s facilities. These machines, manufactured internally by Bimbo, are also being
sold to third parties. Other companies include Env-A-Flex and Mapisa. Additionally, there
are about 50 small workshops in México that manufacture custom- made machines or
complementary equipment.
Some European packaging machinery manufacturers have begun to produce some types of
components and basic machines in México, either alone or in joint-venture partnership with
Mexican companies. On the one hand, these companies intend to control a greater share of
the Mexican market by assembling their machines in the country and thus being able to
offer better price and service. On the other hand, they plan to enter the US market by taking
advantage of the NAFTA benefits.
México will continue to be an importer of packaging machinery. However, low labor costs
and the advantages offered by several free trade agreements will attract investments from
manufacturers of low-tech and simple machinery. Companies that require packaging of
large product volumes and those that need precise packaging will continue to import their
machinery.
2.5.
Origin of Impo rted Machinery
The United States is the largest exporter of packaging machinery into México, accounting
for close to 38% of the imports in terms of value. This country’s machinery is especially
strong in the food and beverage sectors where it controls approximately 50% and 45% of
new equipment sales respectively. On the other hand, US equipment has made little
penetration into the pharmaceutical and personal care industries, where Italian and German
suppliers remain the most important players.
In the past three years, Italy has significantly increased its share in the Mexican packaging
machinery market. This has been achieved with more competitive prices than US
manufacturers. Mexican equipment buyers perceived Italian equipment to be of excellent
quality and highly automated. Italian equipment has become the leader in packaging
machinery for the pharmaceutical and personal care industries and has also increased its
market share in the food products sector.
12
EIGHT BIGGEST EXPORTERS OF
PACKAGING MACHINERY TO MEXICO
Spain
Australia
400
Japan
US$ million
350
300
Sweden
250
200
France
150
Germany
100
Italy
50
0
1995
1996
1997
1998
1999
2000
2001
United States
Source: HDC with data of PMMI and Bancomext.
The countries with the highest growth of packaging machinery exports into México for the
past two years have been Australia, Spain, Japan and Switzerland. However, those
countries are still far from the top three exporters. France has registered continuous export
growth to México over the last five years and has become the fourth largest exporter with
US$14 million. From the top three exporters, the one with the highest compound average
growth rate is Italy with an average yearly growth rate of 15% over the last five years. US
packaging machinery exports to México decreased 1 in 2001. This was caused primarily by
the slowdown of both the US and Mexican economies and by the more favorable exchange
rate of the euro versus the US dollar, which has made European equipment more affordable
for Mexican companies.
1
Based on preliminary figures.
13
SHARE OF THE MARKET 2000
1.6%
1.2% 8.0%
1.8%
2.1%
2.3%
2.7%
39.2%
3.7%
13.3%
United States
Italy
Germany
France
Sweden
Japan
Australia
Spain
Netherlands
Switzerland
Others
24.0%
Source: PMMI
2.6.
Customer’s Evaluation of Imported Packaging Machinery, Service
Most of the packaging machinery buyers usually acquire their equipment directly from the
manufacturers or their representatives in the United States. Very few companies indicated
that they buy equipment from local representatives here in México. Despite this, almost all
of the companies interviewed stated that it is very important to have adequate local
equipment representatives, as they will be responsible for training and providing technical
assistance as well as major maintenance and repairs to the equipment. If local
representatives are not capable of offering training and repairs, it is unlikely that Mexican
companies will maintain contact with them but instead will prefer to deal directly with the
equipment manufacturers.
Of the 50 companies interviewed during this study, 32 mentioned local service and support
as one of the top three factors that influence their purchasing decisions, and some
companies noted that they don’t purchase packaging machinery from those brands or
manufacturers that lack local representatives. It is highly recommended for PMMI members
to have local offices or service supply agreements with Mexican service providers.
Many companies interviewed complained about the lack of operational manuals in the
Spanish language. In many cases, plant engineers and operational staff are not English
speakers, and they do not understand English manuals. Companies applying for ISO 9000
certification are required to have machinery guides in Spanish to comply with standards. It
is highly recommended for PMMI members selling to México and other Latin American
Markets to competently translate their manuals into Spanish.
2.7.
Marketing Techniques and Product Exposure
The best way to gain exposure for packaging machinery in México is by exhibiting at trade
shows. Most end users attend these events to meet and select potential suppliers. According
14
to the information obtained from companies interviewed for this report, the preferred trade
shows are Expo Pack in México City, Pack Expo in Chicago, and Interpack in Dusseldorf,
Germany.
The second most popular method for researching packaging machinery is to “surf the web.”
Mexican businessmen access cyber space to search the Internet for potential suppliers of
specialized equipment.
Most Mexican companies mentioned PMMI or the Mexican Association of Packaging
(Asociación Mexicana de Empaque y Embalaje) as reliable sources for obtaining
information on potential equipment suppliers. Manufacturers should consider the services
of PMMI and AMME as very good tools for increasing product exposure in México.
Another method for creating additional product exposure for packaging machinery is to
advertise in trade magazines. Most companies indicated they review these publications
regularly and use them to find and select new equipment suppliers. The most widely
circulated trade magazines—relevant to packaging machinery—are, in addition to
publications distributed by local chambers of commerce, the following:
Industria-Monthly
Published By: Confederacion De Camaras Industriales
Tel: (5255) 5566-7822 Ext 161
Fax: (5255) 5535-6871
Contact: Lic. Mauri Sanchez, Editor.
The Confederation of Industrial Chambers in México sponsors this publication. It circulates
among all industrial sectors.
Manufactura-Bimonthly
Publisher: Expansion, S. De R.L. De C.V.
Tel: (5255) 5511-1537
Fax: (5255) 5208-1265
Circulation: 35,000
Audience: Manufacturing companies.
Reportero Industrial-Monthly
Publisher: Reportero Industrial Mexicano, S.A. De C.V.
Tel: (5255) 5605-9962
Fax: (5255) 5605-0056
Circulation: 27,000
Audience: Manufacturing companies.
Transformacion-Monthly
Published By: Canacintra (Mexican Chamber of Manufacturing)
Tel: (5255) 5611-3227
Fax: (5255) 5598-5888
15
A very successful technique used by some packaging machinery suppliers or
representatives is to create constant communication by telephone, mail, or visits to potential
customers. Some companies interviewed mentioned that European suppliers are the most
noted for “being in touch” on a constant basis.
2.8.
Equipment Financing
Most large local companies or multinationals indicate that they use their own internal
resources to purchase packaging machinery or that they would consider vendor financing
when available. Bank credits have traditionally been extremely expensive in México with
real interest rates in the 20–30% range. Instead these companies would have placed notes in
the local and Eurodollar markets. However, in the last two years, interest rates have
decreased significantly, reaching historically low levels, thus local loans have become a
viable financing alternative for many companies.
Most of the companies interviewed for this report indicated that they purchase packaging
machinery using their own resources or credits from export credit agencies. It is highly
recommended for packaging machinery suppliers to analyze which export credit
alternatives are offered in their countries of origin and to exploit these options, which can
become an important plus in winning a tender. US suppliers should consider the importance
of providing equipment financing—ExIm Bank or other—to potential clients.
With the help of US Export-Import Bank credit guarantees and other programs, US
commercial banks can offer financing to small, medium, and large Mexican companies that
purchase US equipment. ExIm is able to finance the following:
•
•
•
Large or small repeat purchasing of raw materials, component parts machinery, or
production equipment.
Large or small one-time imports of production equipment.
Offer support to distributors of US products.
The terms of ExIm financing vary depending on product types and the frequency of imports
to México. Usually terms are the following:
•
•
•
•
Up to 180 days for raw materials, component parts, non-capital goods
Up to 365 days for quasi-capital goods or small equipment
Up to 2 years for distributors of capital equipment
Up to 5–7 years for capital equipment purchased by an end-user
The financing is provided by a commercial bank at US dollar rates. Costs include interest
rates, which range from 7.25% to 12% per year depending on the size and complexity of
the transaction(s), and banks fees, which can vary greatly. Please check with your bank.
ExIm Bank credits are designed for end- users making multiple purchases of capital
equipment over a 12- month period. They can be used for various purchases from multiple
US suppliers. Purchase orders and contracts are not required at the time the facility is
approved and terms can go out 5 to 7 years.
16
2.9.
Market Drivers —Factors That Influence Purchasing Decision
During the course of this study, the 50 companies interviewed were asked to list the top
five factors that influence their packaging machinery purchasing decisions. Of the 50
companies, 32 mentioned local service or technical support among its top three decision
factors. The second most repeated factor among the top three was quality with 20
companies, and the third most-often repeated was price.
The following chart shows the relative influence of purchasing decision factors within the
sample of 50 companies.
Top Purchasing Decision Factors
Technical support/service
Quality
Price
Previous experience
Speed/ Productivity
Technology
Flexibility
0
10
20
30
40
50
60
70
Source: HDC with data of interviewed companies .
1.
2.
3.
4.
5.
6.
7.
8.
9.
Service, including availability of local staff and spare parts.
Quality of the equipment (durability, materials).
Price in relation to its quality.
Previous experience with brand and/or corporate recommendations.
Productivity, speed and reliability.
Technology.
Flexibility.
Ease of operation.
Safety.
2.10.
Regulatory Framework
The present economic environment in México presents a big window of opportunity for the
export of packaging machinery into the country. Additionally, NAFTA removed all
previous trade barriers and duties for all types of packaging machinery imported from the
United States and Canada. Imports from other countries still have import duties that range
between 5% and 20%.
17
Used packaging machinery and accessories can be imported into México under a special
customs valuation method, which uses the replacement value of the equipment (A
certification of the cost of new machinery of the same type is required.) less a discount
based on the years of use of the machinery.
Even though there are no import duties for packaging machinery, a 15% Value Added Tax
(IVA) has to be paid when the machinery is imported. This 15% tax is assessed on the
cumulative value consisting of the US plant invoice, plus the inland US freight charges.
The importer will pay other IVA fees for such services as the inland México freight and
warehousing. The IVA is a tax charged on all imported and domestic products and is
recovered at the point of sale.
Packaging machinery does not require import permits nor has any other special regulation
with which it must comply.
2.11.
Import Duties
Due to NAFTA, most US and Canadian packaging machinery has a competitive advantage
over packaging machinery imported from non-NAFTA countries. Current import taxes
charged on packaging machinery manufactured in countries with which México has not
signed a free trade agreement range from 10% to 20%. US and Canadian packaging
machinery can enter México without tariffs due to the NAFTA.
The Free Trade Agreement with the European Union, which entered into effect in July
1999, will eliminate all tariffs to products imported from Europe within the next five years.
This represents a threat to US packaging machinery manufacturers in the medium term,
since local prices for European equipment could decrease by 10% to 20%. This is
independent of any fluctuation of the European currency.
The following table shows base tariffs charged on European packaging machinery and the
tariff elimination schedule:
Harmonized
Code
84222001
84222002
84222003
84222099
84223001
84223002
Description
Current
Tariff
For cleaning bottles and other containers, other than
20
those included in subheadings 8422.20.02 and 03
For washing glass bottles, having a capacity from 3
milliliters to 20l
Tunnel type washers, of continuous belt for metallic
containers, with and output capacity exceeding
1,500 units per minute
Other
For packing or packaging milk, butter, cheese, or
other dairy products, other than those included in
subheading 8422.30.10
For packing, closing, capsulation, and/or packaging
liquids, other than those included in subheadings
8422.30.01, 03 and 10
18
Tariff
Elimination
C
15
C
10
C
Ex.
Ex.
A
A
Ex.
A
84223003
84223004
84223005
84223006
84223007
84223008
84223009
84223010
84223011
84223099
84224001
84224002
84224003
84224004
84224005
84224099
For packing jams, tomato extracts, corn soup, and
other thick or syrupy foods
For packing liquids in ampoules, whether or not
perform other attached operations
For molding and/or packaging candy
Metering-packaging machines, by volume or by
weight, for bulk products, in bags or other similar
containers, whether or not provided with closing
For vacuum packing, in flexible containers
Rotary fruit packaging machines
Tea packaging machines, in pouches, labelers
For packing milk, juice, fruits, and other similar
products, and in addition, forming and closing their
own disposable plastic or paperboard contain
Over capping capsule machines
Other
Tying or strapping machines, including hand
operating
Of a unit weight not exceeding 100 kg, for encasing,
metallic containers
For packaging confectionery products
Box packing or unpackaging machines for bottles
Automatic machines for placing and wrapping
compact discs in a case
Other
10
C
Ex.
A
Ex.
15
A
B
10
15
10
Ex.
C
C
C
A
Ex.
10
15
A
B
C
20
C
Ex.
10
Ex.
A
C
A
Ex.
A
Tariff Elimination Calendar
A) Tariffs were eliminated comple tely in July 1999.
B) Tariffs will be eliminated in four equal stages, beginning July 1999 with a 25%
reduction of current tariff. Following reductions will take place on January 1 each year,
being completely eliminated on January 1, 2003.
C) Tariffs will be eliminated in seven stages according to the following table:
Current Tariff
20
15
10
7
5
2000
18
13
8
5
4
2001
12
10
6
4
3
2002
8
7
5
3
2
19
2003
5
5
4
3
2
2004
5
5
4
2
2
2005
4
4
3
2
1
2006
3
3
1
1
1
2007
0
0
0
0
0
III.
The Food Industry
3.1.
Industry Overview
The total production of México’s food industry is estimated at a value in excess of US$32
billion per year. Consolidated total sales of the 36 most important food companies reached
US$18.4 billion during year 2000. Average growth of this sector has been 5.7% per year
over the past five years. 191 large companies represent only 1% of the total number of food
companies registered in México, however, these companies control over 80% of the market
in terms of sales.
3.2.
Ranking of Companies by Size
According to the national register of companies of the Ministry of Commerce and Industrial
Production (SECOFI), there are 29,062 companies dedicated to the production of food
products, which employ 541,000 people. The breakdown of companies by size is the
following:
Type
MICRO
SMALL
MEDIUM
LARGE
Total
Employees No. Of Companies
0 to 30
31 to 100
101 to 500
501+
26,796
1,388
687
191
29,062
%
92%
5%
2%
1%
100.00%
Source: SECOFI- SIEM
The vast majority of these companies are located in México’s central region, with the most
important areas being México City, the state of México, Querétaro, Guadalajara, San Luis
Potosí, Puebla, and Morelos. In the northern region, the city of Monterrey, capital of the
state of Nuevo León and México’s third largest city, also has an important base of food
packaging companies, especially for cold cuts and dairy products.
The food sector has seen an important consolidation in the last few years. Large
corporations are growing by making acquisitions of other smaller companies, for exa mple,
Bimbo, which acquired a large manufacturer of cookies called Galletas Lara in 2001;
Phillip Morris, which acquired Nabisco worldwide; and Conservas la Costeña, which in late
2000 acquired the operations of the large foods manufacturer Sabormex.
This consolidation will continue, generating new investments in the sector. Currently there
is talk about a possible alliance between Femsa and Herdez forming a major food industry
conglomerate in México. Part of this deal might include the purchase of the bottled water
company Electropura from Mr. Molina, one of the Pepsi’s largest bottlers.
This consolidation phenomenon is resulting in greater market power going to large
corporations, while the small companies must upgrade their technologies, define niche
markets, and specialize in particular sub-segments in order to grow.
20
3.3.
Key Players
Top Food Producers in México
(Figures in million US dollars)
Company Name
Predominant
Sales Fixed Assets
Business
2000
2000
Grupo Industrial Bimbo
Bakery, Box-bread
3,421
2,676
Nestlé de México
Dairy products, Coffee 2,210
1,202
GRUMA
Corn flour, Tortilla
1,978
2,372
Grupo Corvi
Candies
1,296
421
Sabritas
Snacks
1,234
N/A
Grupo Industrial LALA
Milk, Dairy products
1,119
N/A
Industrial Bachoco
Eggs, Chicken Meat
999
1,046
Sigma Alimentos
Refrigerated foods
907
545
Corporativo Unilever de México
Refrigerated foods
674
640
Ganaderos Productores de Leche Pura Milk, Dairy products
625
141
Grupo Industrial MASECA
519
734
Grupo Herdez
Canned products
425
403
Arancia Corn Products
422
N/A
Productos de Maíz
312
220
Dulces y Chocolates Lexus
Candies
282
N/A
Leche Guadalajara
Milk, Dairy products
247
193
Grupo Azucarero Mexicano
Sugar
233
457
Alsea
Candies
228
158
Grupo la Moderna
Candies
225
275
Grupo VIZ
Meat, Dairy products
219
107
Source: Expansion Magazine–Top 500 Mexican Companies. Figures in dollars using exchange rate of 9.2 MX
pesos per US$1
3.4.
Summary of Interviewed Companies
Twenty- five food companies were interviewed for this study; six are huge corporations
with sales of over US$500 million; eight are companies with revenues of US$499 million
to US$100 million; five are in the US$99–50 million range in sales; and six are small
companies with less than US$10 million in revenues. Based on information obtained trough
interviews, these 25 companies anticipate spending close to US$46 million in packaging
machinery during the following two years.
Within the sample of companies, the United States has the largest packaging machinery
installed base with 866 machines, equivalent to 60% of the total. Italy has the second
largest share with 130 machines equivalent to 9%, followed by German machinery with
7%. Netherlands and México hold the fourth and fifth largest shares with 7% and 6%
respectively.
21
Installed packaging machinery shares by country
1%
3%
6%
3%
US
4%
Italy
Germany
7%
Netherlands
Mexico
France
7%
Switzerland
9%
60%
Spain
Other
Source: HDC with data of interviews.
Combined packaging machinery purchasing potential for the years 2002 and 2003 within
these 25 companies is US$46.7 million. Sabormex, Herdez, and Nestlé alone have
packaging machinery purchasing plans of US$24 million, and Ricolino will build a new
plant to manufacture candies, planning to spend US$2.6 million in new packaging
machinery.
Among the 25 companies interviewed, the equipment with the highest purchasing potential
include:
Automatic palletizer
Bag form fill and seal machines.
Blister machine
Bottle filling machines
Box form fill and seal machines
Can cleaning machines
Can closing machines
Capping machine for plastic and glass jars
Carton form fill and seal machine
Case / tray form, fill and seal machines for marmalade, sauce, and vinegar
Case forming machines
Cellophane wrapping machines
Closing machine for cans
Coding machine
Continuous sterilization machine
Conveying systems
Cooling tunnel lines
Depalletizing machines
22
Detectors for bottles incorrectly capped or with low content.
Dossier for coffee bags of 200 and 400 gm
Fillers (liquid and powders)
Filling dry/ solid products
Filling machine for semiviscous liquids
Filling machines for beans
Flask cleaner
Flow pack packaging machine
Form, fill and seal (bag/pouch)-vertical
High vacuum shrink wrap machine
Hot melt system
Ice cream stick machine
Labeling machines
Metal cap closing machine
Metal detectors
Palletizing machine
Plastic bottle orienting machine
Plastic cap closing machine
Pneumatic transporter for fats
Rotative wrapping machine
Sachet filling machines
Sealing machines
Tetra pack formers
Tray forming machines
Vacuum packaging machines
Volumetric filling machines
Waste compactor
Weighers
Weight verification machines
Wrapping machine for multi-packaging with thermoformed polyethylene film
Wrapping machines for marmalade, sauce, and vinegar
Yogurt packaging line
Installed packaging machinery had an average age of 9.6 years and an average utilization of
85%. Overall automation is medium- high in large and most medium companies, and very
low in small companies where many packaging processes are done by hand.
23
3.5.
Company Profiles
Axa / Kir Alimentos, S.A. de C.V.
Industry:
Sub Industry:
Location:
Size: (sales)
Purchasing Potential:
Specific Business
Opportunities:
Food
Cold cuts and cheese
Monterrey, N.L.
Over US $350 million
Over US $700,000 (2002)
Vacuum packaging systems and
conveying systems for frozen products
into a refrigerator chamber.
A) Company Description
Axa Kir is a subsidiary of Xignux, a Mexican holding company with seven different
business units and 27,000 employees. The company operates 35 manufacturing plants and
50 distribution centers throughout México, the United States, Brazil, and Argentina.
Xignux entered into the food business in 1976 and in 1994 entered into a joint venture with
Sara Lee from the United States.
Over half of the company’s production is currently exported into more than 40 countries.
The company’s processed foods and cheeses division operates under the AXA / Kir name;
its manufacturing plants are considered among the most modern in Latin America. This
division produces cold meats and dairy products at three facilities in México, located in
Monterrey, Nuevo León; Tepotzotlán, state of México; and Queretaro, Queretaro.
B) Main Products Produced and How They Are Packaged
Product
Hams
Salami
Sausages
Paté
Bacon
Franks
Turkey products
Cheeses
Brand
Kir, Duby
Peperami
Kir / Swan / Duby
Swan
Kir / Duby
Kir / Swam / D’Pavo
Kir / Swan / Duby / D’Pavo
Caperucita / Creso
Package
Vacuum polyethylene film
Vacuum aluminum film
Tipper tie
Shrieked polyethylene (Bag/Pouch)
Various
Vacuum polyethylene film and
Plastic containers
C) Installed Packaging Machinery
The company has recently made important investments for the modernization and
expansion of its production capacity. The company estimates it will need to further expand
24
production by about 30% over the following couple of years and will have to purchase
additional process and packing equipment.
Their most representative packaging machinery includes the following:
Machinery Type
Units
Origin
11
1
4
4
2
Germany
US
US
US
US
2
1
5
11
US
US
US
US
Vacuum packaging/ Multivac
Vacuum packaging/ Rapid Pack
Vacuum packaging/ Tipper Tie
Pealing machine/ Apollo, Townsend
Frankfurt and sausage loading machines/
Warwick
Planet produc ts (out of operation)
Cheese filling machine/ Drake
Coding machines/ Video Jet
Average Specification
Age
5
80%
1
90%
2
80%
21
90%
6
90%
19
11
1
5
90%
90%
90%
D) Last Purchase of Packaging Machinery
This company’s last purchase of packaging equipment took place in July 2001, when they
invested US$170,000 on the purchase of a vacuum packing system, Multivac R230, which
they purchased from a German supplier. An additional US$100,000 was invested to
purchase another vacuum system from US Rapid Pack. They noted that this last purchase is
a pilot project to evaluate this supplier as it is offering better pricing than Multivac.
Other equipment included in this purchase were three cheese filling and sealing systems
from US supplier Drake, for which they paid US$190,000.
Machinery
Brand
Vacuum packaging
Multivac R230
Vacuum packaging
Rapid Pack
Cheese filling machines Drake
Country
Germany
US
US
Cost
US $170,000
US $100,000
US $190,000
E) Future Packaging Machinery Ordering Plans, 2002–2003
Due to this company’s expansion plans the y are estimating they will invest US$350,000 in
packaging machinery during 2002. The company will purchase an additional vacuum
packing system and the potential supplier will depend on the results of their trial project
with Rapid Pack. The company will in any case proceed with the purchase of an additional
vacuum packing system from Multivac because of the growing demand for the products
produced on that line.
The company is also interested in improving its transport systems for its cold meat products
and cheeses in refrigeratored chambers. The company would like to automate this process,
as it currently is not automated.
25
Machinery
Vacuum packaging/ Rapid Pack
Conveying systems refrigerator
chamber
Units
2
2
1
Origin
Motive of Estimated Budget
purchase
Germany Expansion US $370,000
Germany Expansion US $280,000
T.B.D. Process
T.B.D
automation
F) Purchasing Policies and Financial Arrangements
AXA Kir purchases packaging machinery from equipment manufacturers or from their
local distributors. Some of the factors involved in the purchasing decision include any
previous working experience with a particular machine or supplier. If the company decides
to proceed to purchase a type of equipment with which they have not had experie nce, they
request proposals from at least three potential suppliers.
All purchasing decisions are made by the company’s headquarters in Monterrey, where all
manufacturing plants send their requests for the purchase of new equipment. The
management and technical departments of each plant also get involved in their specific
purchasing decisions. One of this company’s purchasing policies is that they make the final
payment for the equipment once it has operated adequately for two or three months at their
plant.
In 2001 Axa Kir visited Pack Expo in Chicago, where they met with Rapid Pack. The
company liked their vacuum packing equipment and made a decision at the trade show to
purchase the equipment as they considered it offered good technology, technical support,
and vendor financing.
The company purchases new equipment with bank loans or vendor financing. The company
is interested in receiving information from financial institutions offering equipment
financing.
G) Factors that Influence Purchasing Decisions
1.
2.
3.
4.
5.
6.
Production speed
Technical support and service
Price
Quality
Very clean packing process
Equipment safety
H) Comments on Preferred Brands and Existing Business Arrangements with Packaging
Equipment Suppliers
Axa Kir indicated it prefers to purchase machines with which it has had previous working
experience. This policy was waived in the case of the Rapid Pack purchase, which the
company indicates is a trial case, and if the results do not meet expectation, the company
26
will return to its previous supplier Multivac. The decision to try a new supplier was based
on the offer of better price and financing.
The company says that it still considers Multivac to be one of its preferred suppliers
because its equipment has very good technology and is easy to operate. They also consider
this machine to be very efficient and productive.
The company evaluates equipment by country of origin as follows:
Origin
United States
Germany
Spain
Technology
Good
Very Good
Very Good
Flexibility
Good
Very Good
Very Good
Service
Good
Very Good
Very Good
Price
Good
Regular
Regular
I) Specific Interest
Axa Kir is interested in receiving information for high speed and large volume vacuum
packing systems. It would also like to have information for transporting systems for cold
meats and cheese products. This line is for transporting from production to the refrigerator
chambers.
J) Contact Information
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
E-mail:
Web page:
Qualitia Alimentos (AXA / KIR) S.A. de C.V.
Mr. Carlos de la Cruz
Purchasing Manager
Av. Conductores #600
Col. Lagrange
66490,San Nicolás de los Garza, N.L.
(52-81) 8305-0029
(52-81) 8305-0038
cdlcruz@kir.axasa.com.mx
www.kir.axasa.com.mx
27
Champiñones Monte Blanco, S.A. de C.V.
Industry:
Sub Industry:
Location:
Size: (sales)
Specific Business
Opportunities:
Food
Mushrooms
México City (D.F.)
US$35.8 million
US$200,000
Continuous sterilization machine,
Can closing machines, Weight
verification machine, Volumetric
filling machines for solids and semiviscous liquids
Champiñones Monte Blanco is the largest producer of mushrooms in México. It grows and
packages its own products and also packages under private label. The company sells raw
mushrooms to the largest producers of soups, such as Herdez and Campbell’s. The
company believes it controls 70% of the total market for mushrooms in México and it is
constantly growing in market share.
Monte Blanco was founded in 1947 with 100% ownership. The company has exported to
the US market, however, currently local demand is sufficient to utilize all of its production.
Monte Blanco was located in México Cit y until 1998 when it decided to build a larger
facility in Toluca, state of México. According to the company, Monte Blanco’s new plant is
considered one of the largest mushroom growing facilities in the world, while the México
City plant is now being used only as headquarters and distribution center.
Monte Blanco produces primarily mushroom and mushroom products such as soups. The
company also produces “Huitlacoche” soups, a traditional Mexican dish made from corn
fungus.
The company packs its mushrooms in cans and glass flasks; soups are packaged mostly in
cans; and a small part of the production is single-served packed in a cardboard flask.
28
Current Machinery Used
Units
Origin
2
US
4
3
2
1
US
US
US
Germany
3
50
40
30
90%
70%
70%
70%
3
Sweden
25
60%
4
3
2
4
1
US
US
US
US
US
6
6
2
Lease
8
70%
90%
80%
90%
Out of order
Weight verification machines for
300–350 cans per second
Can closing machines / Canco
Can closing machines / Angelus
Continuous sterilizing machines /
Rotomat
Continuous sterilizing machines /
Phoniz
Labeling machines / Burt
Coding machines / Videojet
Coding machines / Little Giant
Box closing machines / 3M
Pneumatic palletizer
Age
5
60%
Some of the equipment used by Champiñones Monte Blanco was acquired used from other
food processors.
The company’s last purchase of packaging machinery took place in November 2001 when
it acquired two new coding machines from Burt. They selected this supplier based on good
past experience with its machinery and the price of the equipment.
The company plans to invest close to US$1 million for the acquisition of new packaging
machinery during the following two years. A large part of their equipment is old, and the
company is planning to modernize some of the older machinery and to incorporate new
packaging lines in their new plant.
In its 2002 budget the company included the acquisition of the following machinery:
Machinery
Units Origin
Continuous sterilization machine
1
T.B.D.
Can closing machines
2
T.B.D.
2
T.B.D.
Volumetric filling machine for solids
1
T.B.D.
Volumetric filling machine for semi1
T.B.D.
viscous liquids
29
Motive of purchase
Increase production
Increase production
Increase production
Increase production
Increase production
The company uses credits from Citibank and pays following the policies of the suppliers,
which generally are 30-50% advance payment and the remaining when the machine is
installed and tested.
In order of importance:
1)
2)
3)
4)
5)
Local representative, spare parts, and service.
Price vs. efficiency.
Brand reputation and time in the market.
Flexibility.
Financing options offered.
Equipment Suppliers
The company has no preference for any brand or origin of its packaging machinery. For
process machinery 100% of the company’s equipment is Italian, however, in packaging
they have a mixed selection. The company mentioned that the most important factor in
selecting a supplier is its local presence, service, and supplies.
The company is interested in receiving demonstrations from manufacturers of equipment to
sterilize and package solids and semiviscous products. They are also interested in labeling
machinery for cans and glass flasks.
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
E-mail:
Web page:
Champiñones Monte Blanco, S.A. de C.V.
Ing. Isaac Espinosa de los M.
Manager for Operations and Projects.
Priv. J.M. Castoreña #74
Col. Cuajimalpa
05000, México, D.F.
(52-55) 5813-4400 / 5292-0200
(52-55) 5812-2433
proyectos@monteblanco.com.mx
www.monteblanco.com.mx
30
Grupo CHEN, S.A. de C.V.
Industry:
Sub Indus try:
Location:
Size: (sales)
Specific Business
Opportunities:
Food
Dairy Products, Meats
Saltillo, Coahuila
US$90 million
US$800,000
High vacuum packaging
machine, Packaging line
for cream
Chen is a private Mexican company founded in the state of Nuevo Leon over 40 years ago.
The company is the leader in the sale of dairy products in Northern México. The significant
sales growth seen by this company is based on expansion of its wide product line that
includes butter, yogurt, cream, and milk in addition to its six varieties of cheese products,
including American, “Manchego,” “Panela,” “Chihuahua,” and “Oaxaca.” The company
also manufactures various lines of meat products.
The company’s headquarters is located in the city of Saltillo in the state of Coahuila. Eight
manufacturing facilities and distribution centers are located in México’s largest cities,
including: México City, Monterrey, Guadalajara, Saltillo, Monclova, Torreón, Reynosa,
Tampico, Aguascalientes, Chihuahua, and Ciudad Juárez. The company employs a total of
2,800 workers.
Products
Cheese
Yogurts
Butter
Margarine
Milk
Sausages
Spiced sausages
(Chorizo)
Bacon
Bologna
Ham
Juices
Brand
Package
Chen, Nor-Mex, Colonos, Norteño, Bugambilia, Shrink wrap
Camelia, Virmar, Rosita, Dilasa, Capellania,
Jazmín, Clavel, Lupita, Blue House.
Camelia, Chen, Nor-Mex.
Plastic cups
Chen, Lupita
Waxed paper
Lupita, Norteñita
Plastic container
Nor-Mex, Norteñita
Plastic bottle and Tetra
Rex type carton
Supremo, Jamy
Shrink wrap
Supremo, Jamy
Shrink wrap
Supremo, Jamy
Supremo, Jamy
Supremo, Jamy
Nor-Mex, Norteñita
Shrink wrap
Shrink wrap
Shrink wrap
Plastic bottle and Tetra
Rex type carton
The company did not provide information on their existing packaging machinery as they
indicated this to be confidential information. The only information they provided is that
their equipment is not standardized, so they have many equipment brands in each of the
production processes. They indicated that each plant makes purchasing decisions for new
machinery independently.
The company spent US$300,000 in packaging equipment during 2001. Their last purchase
took place in mid-2001 when they acquired the following machine:
Machinery
Depalletizing machine
Brand
Multiback
Country
US
Chen plans to invest between US$800,000 and US$1 million in new packaging machinery
in the following two years. The company has not developed a specific budget but their
short-term requirements include the following machines:
Machinery
Units
Origin
Estimated
Budget
-
Motive of
purchase
New product
Automation
Packaging line for cream
Carton form, fill, & seal machines (for
the last part of the packaging process)
High vacuum shrink wrap machine
1
1
-
Replacement
-
-
Each plant of the group develops a procurement plan for the following year and requests
approval from the corporate offices in Saltillo. In some cases corporate makes
recommendations on potential suppliers, but in most cases, once the procurement plant and
budget is authorized, each plant is responsible for making its purchases.
Chen prefers to purchase directly from the manufacturer, but they expect the manufacturers
to provide service either locally or by scheduling maintenance visits from overseas. Chen
also requires the manufacturers to provide training to the employees.
The company funds most purchases with its own cash flow, and only in cases of major
projects (such as new plants) does the company use foreign credits. The company adapts to
the payment conditions required by the manufacturer; generally it uses letters of credit from
local or foreign banks.
32
1.
2.
3.
4.
Technology
Flexibility
Quality
Service
Equipment Suppliers
Most of the installed base of packaging machinery of Grupo Chen is American. The
company mentioned that they don’t have a preference for any machine based on its origin,
however, they have preferred US equipment due to the service offered by manufacturers.
They believe that it is much easier to bring experts from the United States than from Europe
and that US manufacturers have a better understanding of Mexican needs.
They ranked packaging machinery as follows:
Origin
United States
Germany
Italy
Technology
Very Good
Very Good
Very Good
Flexibility
Very Good
Good
Good
Service
Very Good
Good
Good
Price
Good
Regular
Regular
The company is interested in receiving information from packaging machinery suppliers
specialized in cold cuts and dairy products. The company has special interest in information
on packaging lines for creams and in machinery for Tetra Pack, as it is highly likely the
company will begin packaging milk and juices in this type of container.
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
E-mail:
Web page:
Grupo CHEN TEL-LAC, Corportativo, S.A. de C.V.
Ing. Sergio García
Purchasing Corporate Manager
Hector Saucedo #1824,
Col. Avícola,
25290, Saltillo, Coahuila, México.
(52-844) 438-9900
(52-844) 438-9902
sgarcia@chen.com.mx
www.chen.com.mx
33
DANONE de México, S.A. de C.V.
Industry:
Sub Industry:
Location:
Size: (sales)
Specific Business
Opportunities:
Food and beverages
Dairy products, bottled water, jellies,
ice cream, etc.
México City
US$280 million
Over US$4 million
Conveying systems, Labeling sleeve
machines, Case loaders for cartons,
Yogurt packaging line, Coding
machines, Carton form fill and seal
machines, and other equipment
Danone de México has operated in México since 1973 and is the market leader in the
manufacture of yogurt, milk-based desserts, and other dairy products. Its local business has
expanded to inc lude bottled water, which is sold under the Bonafont name.
In May 2001, Danone purchased another company in the bottled water business called
Pureza AGA. With this acquisition in addition to its Bonafont brand, Danone became one
of the three top bottled water businesses in México, operating 17 production facilities.
On the dairy business side, Danone has over 4,600 employees in México in two plants, one
located in Irapuato in the state of Guanajuato and the other in Toluca in the state of México.
Danone de México’s corporate headquarters is located in México City.
Product
Yogurt
Custard dessert
Cheese dessert
Liquid yogurt drink
Yogurt
Jelly
Yogurt with cereal
Milk-based beverage
Yogurt
Bottled water
Brand
Danfrut
Dannet
Danonino
Dan’Up
DanVive
Gelatina Danny
Gran’Día
Licuado Danone
Yogurt Natural
Bonafont
34
Package
Polyurethane container
Polyurethane and plastic containers
PET and polyurethane bottles of
300 and 600 ml, 1, 1.5 and 4 lt.
Danone’s manufacturing is conducted in a continuous process line, beginning with the
molding of resins into packages, followed by printing, coding, filling, and sealing,
continuing until the products are palletized.
For the Bonafont products, Danone manufactures its own thermoformed PET bottles. The
company receives PET pellets as raw material and thermoforms the bottles using machinery
imported from France.
Machinery Type
Units
Origin
Age
5
100%
5
100%
4
90%
Yogurt and cheese packaging line / Arcil
Yogurt and cheese packaging line / Remi Sidell
Labeling machines/ Krones
End of line:
Case forming / Aries
Carton form fill and seal machines / Aries
Case closing and sealing / Aries
Case forming / Mead
Carton form fill and seal machines / Mead
Case closing and sealing / Mead
Coding machines:
Image
Video Jet
Palletize / Depalletize / Satelem
Conveying systems / Tecmapack
6
4
10
France
France
Germany
9
9
9
1
1
1
France
6
90%
US
1
90%
6
4
2
3
Italy
US
France
France
4
4
6
6
80%
80%
90%
80%
The company did not provide information on their water bottling lines.
Danone’s last purchase of packaging machinery took place in 2000, with an investment of
over US$4 million. This purchase included a complete filling system for yogurt from the
French company, Arcil. This line produces Danone’s new multipack presentations that have
two or more individual product containers made from a single molded container.
The purchase also included two lines of multipacking equipment for their Huehuetoca
plant, which are used to produce the new presentations for the Danet product.
Machinery
Brand
Yogurt filling system (bi-pack) Arcil
Multipacking equipment
Mead
Aries
35
Country
France
US
France
Cost
US $3.5 million
US $350,000
US $400,000
The company had plans for the purchase of equipment during 2001, but these remain on
hold waiting for approval by their corporate office. Once approved, they will purchase a
new line for their yogurt products and other equipment needed to expand their production.
In the second semester of 2002, the company will make additional purchases of packing
equipment for new presentations for their products.
The budget for the yogurt line and complementary equipment is about US$4 million. The
suppliers for this purchase will be Arcil from France for the yogurt line and Krones from
Germany for labeling machines.
Suppliers have not been selected for the additional equipment they will purchase this year,
which might include the following:
Machinery
Units Origin Motive of purchase Estimated Budget
Conveying systems / Tecmapack
1
France Production Expansion
T.B.D.
Labeling sleeve machines / Krones
2
Germany Production Expansion
T.B.D
Case loaders for cartons
1
T.B.D. Production Expansion
T.B.D.
Yogurt packaging line / Arcil
1
France Production Expansion US $3.7 million
Coding machines / Video Jet
2
US
Production Expansion
T.B.D.
1
T.B.D. Production Expansion
T.B.D.
Cereal conveyor system
1
T.B.D Improve efficiency
T.B.D
The company in México makes purchasing decisions, but the investment budgets require
the approval of Danone’s headquarters in France. New purchases are defined on a line-byline basis, and equipment is selected considering its adaptability with existing lines.
Most of Danone’s equipment selection is based on recommendations from other Danone
facilities that have had experience with the proposed equipment. If a new supplier is
selected, the facility will require the corporate authorization to proceed with the purchase.
Purchases of auxiliary equipment, such as conveyors, labeling equipment, coding machines,
and other smaller equipment, can be made by the local operation without authorization
from headquarters.
Most of Danone’s purchases are financed with their own cash flow.
1.
2.
3.
4.
5.
Previous experience with the equipment at a Danone facility.
Equipment quality.
Technical service and local support.
Price.
That the equipment meets Danone’s manufacturing standards.
36
Equipment Suppliers
Danone indicated they have a preference for French equipment suppliers as they have had a
long working relationship with companies like Arcil and Remi Sidell. The company has
been using these brands in their yogurt and cheese lines since they started operations in
México. The company also prefers French suppliers for packaging equipment.
The company informed this survey that it is difficult to work with new suppliers for filling
and other equipment, as most of their processes are standardized throughout all their
manufacturing facilities worldwide. This has helped the company to get better equipment
pricing and have a good availability of spare parts.
The company’s evaluation of packaging machinery by country of origin is as follows:
Origin
France
United States
Germany
Italy
Technology
Very Good
Good
Very Good
Very Good
Flexibility
Very Good
Good
Good
Good
Service
Very Good
Not good
Very Good
Good
Price
Good
Good
Good
Good
The company is interested in receiving information on potential suppliers of accessory
equipment for their yogurt and cheese lines, including such equipment as labeling, coding,
case forming, carton form fill and seal, and transport systems.
The company is interested in receiving information from suppliers of conveyor systems to
transport cereals for their Gran’Día products where cereals are currently filled manually.
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
E-mail:
Web page:
Danone de México S.A. de C.V.
Mr. Luis Ángel de la Rosa P.
Purchasing Manager for Technical Equipment
Guillermo González Camarena #333
Col. Santa Fé
01210, México D.F.
(52) 5258-7200 Ext. 7209 Dir. 5258-7209
(52) 5292-2629
ldelaros@danonemx.danone.com
www.juntoscondanone.com.mx
37
Empacadora Bernina, S.A. de C.V.
Industry:
Sub Industry:
Location:
Size: (sales)
Specific Business
Opportunities:
Food
Cold cuts and meats
México City (D.F.)
US$6 Million
US$120,000.00
High vacuum machine to
pack paté in pouch
Bernina is a Mexican company with 130 employees that manufactures cold cuts, paté, and
meats. The company has grown quickly in recent years, and today Bernina manufactures
over 80 products. In 1995 the company decided to build a new factory with state-of-the-art
technology. This factory allowed Bernina to obtain T.I.F. norm and to begin exporting to
the US market. Also in 1995 the company launched its own poultry farm with the idea of
improving the quality of its turkey meats. Today this farm produces 35,000 high-quality
turkeys per year.
Bernina has plans to continue its expansion and to constantly launch new products to the
Mexican and international markets. In 2002 Bernina plans to increase its productio n of paté
and will purchase the needed machinery for this purpose.
Product
Sausage
Meat cake
Hot dog meats
Ham
Pork and cattle specialties
Chicken and turkey products
Paté
Brand
Bernina
Bernina
Bernina
Bernina
Bernina
Bernina
Bernina
Package
Pouch Bag and Thermoshrink
Machinery Type
Units
Origin
Wrapping machine for thermoshrink
film / Koch
Roll stock machines with gas
injection / VC999
4
Germany
3
Swiss
38
Age
7
90%
4
90%
The last purchase of packaging machinery took place in March 2001 when the company
acquired a Rollstock machine RS 420 from VC999 from the United States. This machine
was purchased through a distributor in México, and its total cost was approximately
US$40,000.
Machinery
Rollstock Machine RS420
Brand
VC999
Country
US
Bernina has developed a budget of US$120,000 for the acquisition of a high vacuumpouching machine to pack paté. The company has not decided on the supplier and is
investigating the alternatives offered in the market.
Machinery
Specialized pouching machine for paté
Units Origin
1
N/A
Motive of
purchase
New product
Estimated
Budget
US$120,000
Bernina does not have an established procedure for the acquisition of new packaging
machinery. When the company determines a need for new equipment, they contact the
distributors who have supplied that particular type of machinery in the past. If Bernina
requires a different type of equipment, they search for distributors using directories of
packaging machinery and recommendations from clients and competitors. They also
identify new potential suppliers by visiting ExpoPack in México City, IFA in Germany, and
World Food Expo in Chicago.
When acquiring packaging machinery, Bernina pays 40% down and the remainder when
the machine is installed and set up.
Bernina has used credits from the Mexican bank Banamex for the acquisition of new
equipment. Usually they pay 50% with their own resources, and the balance is paid with a
bank loan.
1.
2.
3.
4.
5.
Characteristics of the machinery.
Technical Support.
Spare part and maintenance availability.
Price.
Brand recognition.
39
Equipment Suppliers
Bernina has no specific agreements with packaging machinery suppliers. The company
mentioned the brand VC999 Packaging Systems as their preferred brand due to the quality
of the service provided by the Mexican representative, the maintenance programs offered,
and the ease of use, cleaning, and maintenance.
Origin
United States
Germany
Italy
Spain
Switzerland
Technology
Very Good
Very Good
Good
Average
Very Good
Flexibility
Very Good
Very Good
Good
Average
Good
Service
Good
Average
Average
Poor
Very Good
Price
Average
Expensive
Average
Expensive
Good
The company is interested in receiving literature, videotapes, and other information from
manufacturers of packaging machinery for cold cuts.
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
E-mail:
Web page:
Empacadora Bernina, S.A. de C.V.
Lic. Enrique Cahero Limón
Chief of machinery and equipment
Poniente #44-2664
Col. San Salvador Xochimanca
México D.F.
(52-55) 5396-9888
(52-55) 5396-0700
bernina@empacadora-bernina.com
www.empacadora-bernina.com
40
FABP Industrias Alimenticias, S.A. de C.V.
Industry:
Sub Industry:
Location:
Size: (sales)
Purchasing potential:
Specific Business
Opportunities:
Food
Additives for meat products, flavor
enhancers, powdered consommé, gelatins,
powdered drink flavors and colorants.
México City
US$6 million.
N/A
Automatic filling and sealing machine for
powders, Labeling equipment.
FABPSA is a Mexican company that was established in 1977. The founder of the company,
Mr. Onésimo Martinez, is its current managing director.
The company has two lines of business. The line that represents 95% of their sales is the
supply of food additives and other ingredients to the meats and snack industries. The other
line is the production of products to be sold directly to the consumers, which represents 5%
of their business.
The company exports 5% of its production, mostly to the Central American markets, selling
into Guatemala, Nicaragua and Honduras. FABPSA is planning on moving its
manufacturing facility to a new location in the Chalco area in the state of México. This will
take place in the second half of 2002. Because of this, the company is interested in
purchasing some new packaging machinery.
Product
Package
Additives for meat products (for Sacks of 25 kg
various types of spiced sausages)
1 kg. Metalized bags
1 kg. Plastic bags
Rubber band placing machine.
Sack
Metalized and plastic bags
Phosphates
Sack
Metalized and plastic bags
Consommé powders
Metalized bag
Plastic bag
Jellies
Metalized bag
Plastic bag
All of this company’s products are sold under the FABPSA brand.
41
Filling machine / Allfill
Semiautomatic sealing machine/
Sealer Wealler
Weighing system / Mavi
Weighing system / Torrey
Labeling / Datamax Class
Units
1
1
Origin
US
US
1
1
1
Canada
México
US
The machinery used at their manufacturing facility has an average age of six years. The
oldest piece of equipment (10 years) is a weight scale from Mavi, and the newest is their
most recent purchase, a labeling machine acquired in September 2001.
The company estimates that their existing machinery operates with 95% efficiency.
The last purchase of packaging equipment was a labeling machine. The company does not
develop an annual investment budget for the purchase of machinery. Purchases are made on
an as-needed basis, which is the case for next year when they are planning to automate their
new facility.
Machinery
Labeling machine
Brand
Datamax Class
Country
US
As mentioned, this company will move their manufacturing operations to a new facility in
Chalco in the state of México by the second half of 2002. The company plans to automate
their complete manufacturing process. For this purpose, they are considering the purchase
of the following equipment:
Machinery
Units
Origin
Filling or feeding machine
Sealer of metallic or plastic
bag and/or sack.
Labeling machine
1
1
Likely from a US supplier
Motive of
purchase
Automation
Automation
1
Automation
Potential suppliers are selected from information obtained in trade pub lications and by
visiting local and international trade shows. In some cases they seek the advice of the local
representatives of some equipment suppliers from whom they have purchased equipment in
the past. The company usually evaluates between two or three equipment alternatives. They
42
have purchased all their machines from manufacturers’ representatives in México but are
open to buying directly from equipment manufacturers.
The company makes an economic feasibility study for the purchase of the equipment, and
the final decision is reached by the company’s board of directors. The company finances
the purchases of equipment with bank loans from Mexican banks.
The company has a maintenance staff that replaces spare parts in their equipment.
Preventive maintenance is out-sourced to the local representatives of their machine
suppliers.
G) Factors That Influence Purchasing Decisions
1.
2.
3.
4.
Price.
Flexibility to accommodate to the company’s product volumes (1, 3, 5, 25 kg).
Availability of technical information.
Post-sales service and technical support.
Equipment Suppliers
The company has a preference for US equipment suppliers. They have not purchased
equipment from European suppliers and are concerned about the level of support they could
receive from those suppliers in México.
They indicated that they be very satisfied with the equipment purchases they have made
from Allfill, mentioning they are happy with the equipment’s reliability, ease of
programming, and technical support they receive, but they complained about the delivery
times for most spare parts.
FABPSA indicated they do not have a preference for any particular equipment supplier and
are open to evaluating all alternatives, as long as serious suppliers present them.
FABPSA evaluation of packing machinery according to its country of origin:
Origin
United States
México
Technology
Good
Average
Flexibility
Good
Good
Service
Excellent
Good
Price
High
Accessible
I) Trade Show Attendance / Trade publication Information
FABPSA uses the Internet to locate information on potential equipment suppliers. They
also subscribe to various trade publications, including Reportero Industrial, NEI, Equipos
Industriales, Manufactura, and Directorio Industrial Mexicano. The company also visits
trade shows in México like ExpoPack and international shows in Chicago and Brazil.
43
J) Specific Interest
FABPSA is interested in receiving information on filling and sealing machines for
powdered food products.
K) Contact Information
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
E-mail:
Web page:
Industrias Alimenticias FABP, S.A. de C.V.
Ing. Julio Barcenas
Operations Manager
Sur 121 # 2295
Col. Juventino Rosas
08700, Iztacalco, México D.F.
(5255) 56 57 73 99
(5255) 5650 00 23
jcbarcen@hotmail.com
www.fabpsa.com.mx
44
Grupo Warner Lambert México, S.A. de C.V.
(ADAMS)
Industry:
Sub Industry:
Location:
Size: (sales)
Specific Business
Opportunities:
Food
Candies–Chewing gum
Puebla, Puebla
US$2 billion worldwide
US$2.5 million
Labeling machines, Coding
machines, Wrapping machines
Chicles Adams belongs to the group Pfizer-Warner Lambert. Over 100 years ago Adams
began producing candies and chewing gum in México, being one of the first manufacturers
of coated candies. Today, this Pfizer subsidiary is one of the largest manufacturers of
chewing gums and mints in the world. Their most important brands include Trident, Certs,
Dentyne, and Halls, however, the company also produces medicinal candies to aid
breathing problems and sugarless candies for diabetics.
Adams has over 60 manufacturing facilities worldwide. In México the company has one
plant in the state of Puebla to supply the Mexican and export markets. Approximately 60%
of the production of this plant is exported to Central and South America.
Product
Gum with liquid center
Tablets of caramel
Brand
Bubaloo
Halls
Gum without sugar
Trident
Coated gum
Coated gum
Coated smooth caramel
Clorets
Chiclets
Crak Ups
Package
Flow pack and Display*
Wrapped individually in cellophane and
wrapped in aluminum paper stick.
Individual waxed paper packages and
wrapped in aluminum paper flow pack
Cardboard covered by cellophane.
Cardboard covered by cellophane.
Plastic bags
*Adams uses “Display” to refer to cardboard boxes wrapped in cellophane plastic containing
several candy packages.
45
Units
Origin
11
1
1
45
4
10
Italy
Japan
US
Italy
Italy
US
10
Italy
3
80%
6
Germany
5
80%
6
Netherlands
2
80%
3
30
30
30
Germany
US
US
US
5
5
-
80%
80%
80%
80%
Box filling machines/ Eurocigma
Weighing machine / Ishida
Box form and fill machine/ TISMA
Wrapping machines/ GD
Box form machines / ACMA GD
Cellophane wrapping machines/
Redington
Cellophane wrapping machines /
ACMA GD
Cutting and wrapping machines /
Theegarten
Wrap and seal machines/
Thervopharm
Box form and fill machines/ Loesch
Coding machines / Image
Coding machines/ Mark Point
Metal detectors/ LOMA
Age
4
80%
3
80%
3
80%
18
80%
6
80%
10
80%
This company mentioned that in the past three years it has spent over US$7 million in
packaging machinery as it is continuously introducing innovative products. The most
representative packaging machinery acquisitions in this period include the following
machinery:
Machinery
Box filling machines
Metal detectors
Coding machines
Brand
Eurocigma
LOMA
I MAGE
Country
Italy
US
US
Packaging machinery purchasing plans are mostly based in the production volume forecasts
of the company and in the introduction of new products. The company estimates it will
spend close to US$2.5 million in the next two years for the acquisition of new machinery.
Short- and medium-term procurement plans include the following machinery:
46
Machinery
Units
Origin
3
1
1
2
8
10
Germany
-
Motive of purchase Estimated
Budget
Box form and fill machines
Flow pack packaging machine
Labeling machines
Coding machines
Cellophane wrapping machines
Automation
New presentation
Automation
New presentation
Automation
Renewal
750,000
200,000
80,000
-
The company has two different procedures for the acquisition of new machinery. When
they have new presentation projects that will be implemented simultaneously in several
countries, the corporate offices of Adams in New Jersey are fully responsible for the
negotiation and acquisition of the machinery; they inform the plants about the machinery
that will be acquired so they can prepare the space for the installation of new lines.
For local replacements, process automation, or production increment projects, the México
plant makes the purchasing decision and is in charge of the selection of the new equipment.
However, they try to use the same suppliers that have provided good results in the past.
Adams purchases nearly all its machinery directly from the manufacturers; only in a few
cases have they purchased from Mexican representatives. Local representatives assist
Adams with the import and installation of the machinery and with training but rarely with
the sale of equipment.
Adams purchases new equipment with its own resources; credits are used only when they
build a new manufacturing facility.
1.
2.
3.
4.
5.
Technology.
Capacity and speed.
Previous experience with brand.
Brand recognition in the candy market.
Technical support.
Equipment Suppliers
Although this company prefers to work with packaging machinery suppliers that have
successfully supplied machinery in the past, they are not closed to analyzing new options.
For suppliers new to Adams, the company likes to see machines functioning in a candy
manufacturing facility; they request that the supplier make the necessary arrangements for a
demonstration visit. They also ask suppliers to prove their experience in the candy market
47
and to offer a comprehensive service program either by local representatives or by foreign
technicians who can regularly visit Adams’ manufacturing facility.
Adams has preferences for European packaging machinery and for American coding, metal
detecting, and other auxiliary equipment. The company mentioned GD as its preferred
brand, however, they consider offers from packaging machinery manufacturers that offer
good technology with high capacity and speed.
The following is Adam’s evaluation of packaging machinery according to country of
origin:
Origin
United States
Germany
Italy
Japan
Technology
Good
Very Good
Very Good
Very Good
Flexibility
Good
Regular
Good
Very Good
Service
Good
Good
Very Good
Good
Price
Good
Regular
Good
Good
The company is interested in receiving information and visiting manufacturers offering
solutions for the candy and chewing gum market. The company is specifically interested in
new packaging machinery developments or new presentations.
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
E-mail:
Web page:
Ing. Jorge Olea
Project Manager
Carretera México-Veracruz #1028
Col. Parque Industrial Puebla 2000,
72220, Puebla, Puebla, México
(52-222) 223-6346
(52-222) 282-7374
jorge.olea@pfizer.com
www.pfizer.com
48
Herdez, S.A. de C.V.
Industry:
Sub Industry:
Location:
Size: (sales)
Specific Business
Opportunities:
Food
Canned foods, sauces, honey,
mayonnaise, frozen vegetables, juice.
México City (D.F.)
US$400 million
Over US$6 million
Machinery to pack in cans, glass jars
and bottles, boxes, as well as auxiliary
equipment
Established in 1914, Herdez is a local company and currently one of the largest food
processing companies in México. The company operates nine manufacturing facilities
throughout México. The company produces a wide variety of food products including:
salad dressings, mustard, jellies, juices, spices, hot peppers, hot sauces, honey, canned
fruits, and vegetables. Herdez packages products in over 500 presentations. Herdez also
produces mayonnaise under the McCormick brand through a venture with McCormick in
the United States.
Herdez exports approximately 8% of its production to the United States and South
America.
Due to the wide range of products manufactured and packed by Herdez, it would be
complicated to list all its products and packages. Most of Herdez’s products are canned or
packed in glass and PET bottles. The company also has special machinery for packing tuna,
consommé, and mole.
This company sells all its products under the brands Herdez, McCormick, Bufalo, Doña
María, Carlota, and Yavaros brands.
The information presented on packaging machinery refers to the company’s plant in
México City, as this was the facility visited for this report. The plant in México City
operates eight packing lines for mayonnaise, mustard, and sauces.
Overall, the company stated that it has over 60 packaging lines throughout their nine
production facilities.
49
Units
Origin
Average
Age
11
Specification
Filling-sealing machines for viscous
Products/ Angelus, Pacific, Solvern, US
Bottler
Filling machine for powder
(consommé)
Capping machines/ various brands
8
US/
Sweden
1
Italy
2
100%
8
US/
Taiwan
US
US
US
Germany,
Spain,
Italy, US
US
US
México
10
90%
Carton form fill and seal machines
Tape dispensing machines
Coding, dating machines
Printing/ Labeling machines/ Krones,
Auxiemba, ABC, Mew Way, Burt
7
6
7
7
13
12
12
9
85%
100%
90%
100%
Case forming
Computerized systems
Conveying systems to dispense boxes,
bottles, transport finished boxes, etc.
Multipacking machines
Palletizers
Shrink packaging machines
Stretch packing machines
Weighers, Weighing systems
Wrapping machines
Specialty machinery / All Fill
Automatic carton form fill and seal
machine / Cayat
Filling machines for semi viscous/FMC
Cap sealing machine/ Startech
3
3
8
6
11
90%
100%
100%
3
3
3
2
3
3
5
1
US
US
US
US
US
US
US
US
9
11
9
6
6
11
7
1
80%
90%
80%
100%
100%
90%
100%
90%
1
1
US
France
1
1
90%
100%
90%
Close to 90% of the packaging machinery being used was purchased from US suppliers,
and the remaining equipment is mostly European and Mexican. The equipment has an
average age of 9 years and operates at 90% capacity on average.
Herdez made its last purchase of packaging machinery for one of its México City plants on
July 2001, when it acquired an automatic carton form fill and seal machine from the US
manufacturer Cayat for close to US$135,000. During the same year they purchased a filling
machine for semiviscous liquids from FMC, a Belgian manufacturer; however, the
machine was acquired from FMC in the United States. They also purchased two sealing
machines for boxes and a cap-sealing machine from the French manufacturer Startech for
US$145,000.
50
Herdez has developed a budget of US$6 million for new packaging machinery that will be
required in the next two years. The budget includes requirements at each of the 12 facilities.
To provide details on future acquisitions, we established contact with the people in charge
of project development at each of the plants and also at Herdez corporate. The plants with
large short-term procurement plans include Ensenada, San Luis Potosí Industrias Plant, San
Luis Potosí La Paz Plant, and a large project in Guanajuato that is pending approval.
The largest investment amount is destined for the Ensenada plant, which plans purchases of
new packaging machinery for US$1.5 million for 2002 and 2003. Herdez San Luis Potosí
La Paz Plant also has a major need for packaging machinery because volumes have
increased dramatically and the existing packaging machinery is having trouble meeting
production goals. A major plant renewal project will take place in the second half of 2002.
In its Guanajuato plant, most of the packaging processes are manual. This plant supplies
fruit and vegetables to most Herdez plants and the packaging process (in boxes) is done
manually. Herdez is in the process of approving an automation project for this facility.
The most representative acquisitions planned for 2002 and 2003 include:
Machinery
Units Origin Motive of Purchase Estimated Budget
Ensenada Plant
1
T.B.D
Expansion
T.B.D
1
T.B.D Expansion/ Renewal
T.B.D
Closing machine for cans
Capping machine for plastic &
glass jars
Pasteurizing tunnel
1
T.B.D
Expansion
Labeling machines for cans &
2
T.B.D
Renewal
glass bottles
Coding machines for caps, cans,
2
T.B.D Expansion/ Renewal
carton boxes, plastic containers
Metal detectors
2
T.B.D
Renewal
Conveying system
1
T.B.D
Renewal
Volumetric filling machine for
1
T.B.D
Expansion
viscous liquids
Palletizing machine (Jack Pallet)
1
T.B.D
Renewal
San Luis Potosi Industrias Plant
Liquid filling machine
1
T.B.D
Renewal
Viscous filling machine
1
T.B.D
Renewal
Plastic cap closing machine
1
T.B.D
Renewal
Metal cap closing machine
1
T.B.D
Renewal
Labeling machine
3
T.B.D
Renewal
Box sealing machines
2
T.B.D
Renewal
Can capping machine
1
T.B.D
Renewal
Palletizing machine
1
T.B.D
Renewal
Coding machines
3
T.B.D
Renewal
51
T.B.D
T.B.D
T.B.D
T.B.D
T.B.D
T.B.D
T.B.D
T.B.D
T.B.D
T.B.D
T.B.D
T.B.D
T.B.D
T.B.D
T.B.D
T.B.D
Capping machine/ Pneumatic
Filling machine for semiviscous/viscous liquids
Depalletizing machine/ Sentri
Palletizing machine
Labeling machine/ Krones
Carton form fill and seal
machine/ Cayat
Bag form fill and seal
machine
Pallet machine
Conveying systems
San Luis Potosí La Paz Plant
1
USA
Expansion
1
USA
Expansion
1
1
1
1
USA
T.B.D
T.B.D
USA
Improve Efficiency
Renewal
Expansion
Expansion
T.B.D
T.B.D
T.B.D
T.B.D
T.B.D
T.B.D
Guanajuato Plant
T.B.D T.B.D
T.B.D T.B.D
T.B.D
T.B.D
T.B.D
T.B.D
T.B.D T.B.D
T.B.D T.B.D
T.B.D
T.B.D
T.B.D
T.B.D
Each of the 12 plants produces a yearly report on new equipment requirements, which is
sent to the corporate headquarters. There they evaluate the needs and decide between
equipment transfers between facilities or the purchase of new machinery.
Once the purchase of new equipment is decided, each plant selects the suppliers and
informs the corporate office for final approval. Herdez purchases equipment with its own
funds, usually utilizing letters of credit accepted by the equipment supplier’s bank as
guarantee. Payment schedule is commonly 30% in advance and 70% upon delivery.
Herdez’s plant managers continuously follow equipment trends and maintain
communication with existing suppliers. They also attend trade shows and subscribe to trade
magazines to learn about new potential suppliers.
Herdez’s plant managers schedule regular visits with potential equipment suppliers so they
will know first- hand about the company’s requirements. Meetings should be scheduled at
each facility as equipment selection is made at that level.
1.
2.
3.
4.
Previous experience with a supplier and/or brand.
Machine’s precision and speed.
Price.
Service and spare parts availability in México.
52
Equipment Suppliers
Most equipment presently installed at Herdez came from US suppliers. The company
considers US packaging machinery to be superior in quality and reliability as well as better
priced than European. On the other hand, European labeling machinery is considered
superior to US machines, which waste supplies and require frequent adjustment.
As for their preferred brands, the company has been satisfied with Pacific for fillers as they
are easy to operate, long lasting, and highly efficient. They also like Angelus filling and
capping machines because they arehighly productive and have low maintenance cost.
Herdez maintains their equipment regularly, bringing in technicians from the supplier only
when a major repair is required. The company believes that most local representatives are
well trained to sell but not to service the equipment they represent.
Origin
United States
Germany
Spain
Technology
Very Good
Very Good
Very Good
Flexibility
Very Good
Good
Good
Service
Good
Poor
Good
Price
Fair
High
Fair
Herdez prefers to receive visits from potential equipment suppliers rather than receiving
equipment literature; this enables suppliers to better understand the company’s particular
needs. Herdez mentioned they are interested in packaging machinery for canned and bottled
foods as well as for beverages.
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
Herdez Corporate
Ing. Rafael de Regil
Operations Director
Monte Pelvoux #215
Col. Lomas de Chapultepec
11000, México D.F.
(5255) 5201-5730
(5255) 5201-5791
Herdez México City Plant
Contact:
Ing. Armando Quintanilla
Position:
Plant Manager
Address:
Calz. San Bartolo Naucalpan #360
Col. Argentina Poniente
C.P. 11230 México D.F.
Telephone:
(5255) 5576-3100/ 5576-3891
Fax:
(5255) 5358-6789
53
Herdez Chiapas
Contact:
Position:
Address:
Telephone:
Herdez Ensenada
Contact:
Position:
Address:
Telephone:
Fax:
Rafael Camacho
Plant Manager
Parque Industrial Fondeport
Francisco I. Madero s/n
C.P. 30830 Puerto Madero, Chiapas
(52-962) 1-09-95
Ricardo Fuentes
Plant Manager
Carr.Transpeninsular No. 86
Col. Carlos Pacheco
C.P. 22890 Ensenada, Baja California
(52-6) 177-62-20
(52-6) 177-62-85
Herdez San Luis Potosí, La Paz Plant
Contact:
Eduardo Larraga
Position:
Plant Manager
Address:
Av. De la Paz No.216
Barrio de Santiago esq. 16 de Septiembre
C.P. 78049 San Luis Potosí, S.L.P
Telephone:
(52-48) 12-76-42/ 12-45-05
Fax:
(52-48) 12-10-57/ 14-63-83
E-mail:
jflores@herdez.com.mx
Herdez San Luis Potosí, Industrias Plant
Contact:
Carlos Velázquez
Position:
Plant Manager
Address:
Av. Industrias no.3815 Mz.29
Zona Industrial, 1a Sección
C.P. 78090 San Luis Potosí, S.L.P
Telephone:
(52-48) 24-52-82/ 24-52-84
Fax:
(52-48) 24-60-67/ 24-73-56
Herdez Veracruz
Contact:
Position:
Address:
Telephone:
Fax:
Ing. Luis DuSolier
Plant Manager
Domicilio Conocido, Los Robles, Ver.
C.P. 94280 Medellín de Bravo, Ver.
(52-29) 28-34-06
(52-29) 29-17-69
54
Hérdez Yavaros
Contact:
Position:
Address:
Telephone:
Fax:
Ricardo Nieblas
Plant Manager
Av. Central Poniente, s/n
Parque Industrial Fondeport
C.P. 85251 Yavaros, Huatabampo, Sonora
(52-648) 1-01-30/ 1-01-31
(52-648) 1-01-75
Hérdez Guanajuato
Contact:
Mario Flores
Position:
Plant Manager
Address:
Carretera Panamericana Km. 292
C.P. 38260, Villagrán, Guanajuato
Telephone:
(52-415) 5-11-07/ 5-13-22
Fax:
(52-415) 5-24-17
E-mail:
Lparra@herdez.com.mx
55
Joyco de México, S.A. de C.V.
Industry:
Sub Industry:
Location:
Size: (sales)
Specific Business
Opportunities:
Food
Candies
México City (D.F.)
US$50 million
US$2 million
PVC blister thermoforming machine,
Flow pack-wrapping machine, Box
form and fill machines
Founded in 1945 under the name Laboratorios y Agencias Unidas, this company was a
manufacturer of candy medicines. In 1974 the company changed its main activity, leaving
the production of medicines, to focus only on the production of candies. The company is
part of the Gigante Group, one of the largest retail store chains of México. In March 1999
the company entered into a joint venture with the Spanish company General de Confitería,
who acquired 50% of the stock, and the company changed its name to Joyco.
Joyco has two plants in México with 600 employees; both plants are located in the state of
México (México City). The company exports to the United States, Central and South
American, and occasionally Spain and Africa.
For the production of candies, Joyco uses sugar and natural sweeteners, which are their
main raw materials. Most of the sugar used is Mexican, and close to 20% of their
sweeteners come from the United States.
Product
Chocolate cream candy
Candy-covered chocolate
Cookie bars covered in
chocolate
Caramel lollypop
Chewing gum
Brand
Duvalin
Lunetas
Bocadin
Pimpom
Chiqule
promocional
Package
PVC blister with aluminum foil cap.
Polypropylene bags
Aluminum foil covered with
polypropylene
Polypropylene bag
Waxed paper
56
Units
Origin
Age
20
90%
PVC blister forming, filling and sealing
machines / Thermoforming
Weighing and bagging machine / Martín
Weighing and bagging machine /
Empacomatic
Metal detectors / LOMA
Ink jet coding machines / Domino
Wrapping machine / SIG
Wrapping and sealing machines / Aquarius
Weighing machine / Yamato
Weighing and bagging machine / Richareli
Sacib
Wrapping machines / Theegarten
Wrapping machines / Roseforgrove
Overwrapping / Marden Eduards
Overwrapping, flow type pack/ PFM
9
Italy
2
1
Italy
US
20
20
80%
80%
3
5
14
14
3
1
US
US
Swiss
Netherlands
Japan
Italy
6
6
15
8
3
10
70%
90%
85%
70%
95%
50%
2
3
1
1
Germany
England
England
Italy
10
10
4
4
90%
90%
95%
90%
Joyco’s last packaging machinery purchase took place in December 1999 when they
acquired a wrapping and sealing machine from Aquarius. The company could not provide
information on the value of this purchase. They did indicate that they regularly spend
between US$100,000 and US$250,000 per year on packaging machinery.
Machinery
Wrapping and sealing machine
Brand
Aquarius
Country
Netherlands
E) Future Packaging Machinery Ordering Plans, 2002-2003
During the next two years, Joyco plans to modernize a key part of its packaging machinery
to increase productivity and worker safety. The company has developed a budget of US$1.5
to US$ 2 million, which will be destined mainly to purchase the following machinery:
Machinery
PVC blister form, fill and seal
Flow pack wrapping machines
Box form and seal machines
Units
Origin
3
4
4
-
Motive of
purchase
Replacement
Replacement
Automation
Estimated
Budget
800,000
900,000
-
Note: The blister machines will have to be hydraulic and able to process a minimum of 72,000
pieces per hour. The flow pack wrapping machines must be able to process 500 pieces per minute.
57
Joyco makes the decision on which type and brand of machinery to acquire, however, all
purchases are made by the parent company, General de Confitería, due to its international
presence and experience in the packaging field and its capability to obtain better prices.
The Spanish group has a “black list” of packaging machinery companies that have provided
unsatisfactory service or results and that are not considered for purchases in any of their
plants worldwide.
For payment terms, the company prefers to obtain discounts from the manufacturer in
exchange for cash or advanced payment. If discounts are not attractive, the company uses
credit letters and makes payments as the order is placed, when the equipment is shipped,
when the equipment is installed, and after the equipment has been used for a period of time.
1.
2.
3.
4.
5.
6.
Productivity
Quality
Service
Safety
Image and ease of operation
Technology
Equipment Suppliers
The company prefers US and Italian machinery, however, the origin of the equipment is not
a decision factor. Joyco offered the following evaluation according to machinery origin:
Origin
United States
Germany
Italy
Spain
Netherlands
Japan
Technology
Very Good
Good
Very Good
Good
Very Good
Very Good
Flexibility
Good
Good
Good
Good
Good
Good
Service
Good
Good
Regular
Good
Regular
N/A
Price
Regular
Regular
Very Good
Very Good
Good
Very Good
Joyco obtains information about packaging machinery suppliers by attending Expo Pack in
México and InterPack in Germany, through packaging machinery directories, and through
the magazines Alimentos Procesados, Directory of Ingredients, Equipment and Packaging,
and El Reportero Industrial.
The company expressed interest in receiving information from packaging machinery
suppliers that specialized in the candy and chocolate industries.
58
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
E-mail:
Web page:
Joyco de México, S.A. de C.V.
Ing. Heriberto Hernández Roa
Gerente de Ingeniería
Av. Primero de Mayo #120
Col. San Andrés Atoto
53500, Estado de México, México.
(5255) 2122-1971
(5255) 2122-1905
hhernandez@joyco.com.mx
www.joyco.com
59
Conservas La Costeña, S.A. de C.V.
Industry:
Sub Industry:
Location:
Size: (sales)
Purchasing
Potential:
Specific Business
Opportunities:
Food
Canned and bottled foods, sauces,
condiments, beans, olives, jellies, and others
México City
US $250 million
Over US $3 million (2002 and 2003)
Labeling, Coding, Sealing, Capping, Filling
plastic formers, Carton form fill and seal
machines
Conservas La Costeña is a private Mexican company that started operations in 1922. The
company’s main plant has a fully automated process. Its manufacturing facility is able to
produce over 2 million products per day, mostly cans of Jalapeño peppers.
The company divides its business into two segments: One is canned and bottled products,
which include hot peppers (Jalapeños), sauces, beans, olives, tomato sauces, jellies,
mayonnaise and others; the other segment is those product lines that are packed in plastic or
glass bottles. Both segments include over 45 different product offerings. About 60% of the
company’s business comes from the canned foods segment.
For the past decade, the company has been working on the automation of their
manufacturing processes at the Tulpetlac, D.F., and Guasave, Sinaloa plants. Conservas la
Costeña is the only company in México that manufactures the cans for all its products.
With the modernization of its facilities, the company has achieved a significant increase in
its production levels, enabling it to increase its supply into the local and international
markets. The company exports about 20% of its production to over 30 countries, mostly in
the Americas but also to Europe and Asia.
60
Among the company’s 45-plus products, the most important are:
Product
Hot peppers in vinegar
Chipotle Peppers
Beans
Ketchup
Mayonnaise
Tomato sauce
Seasoning sauces
Olives
Vinega r
Apple puree
Marmalades
Brand
La Costeña
La Costeña
La Costeña
La Costeña
La Costeña
Package
Can: 1/8, ¼,½, 1, and 3 Kg.
Can: 1/8, ¼ ,½ and 3 Kg.
Can: ½ and 3 Kg.
Plastic and glass bottles: ¼,½, 1, and 3 Kg.
Squeezable PET bottle of ¼ and ½ Kg, and glass
bottles of ¼, ½, and 3 Kg.
La Costeña
Squeezable PET bottle of ½ and glass bottles of ¼,
½, and 1 Kg.
Doña Chonita Combi Block (Carton)
La Costeña
Glass bottles: ¼ and ½ Kg.
La Costeña
PET bottles: 1 Lt.
La Costeña
Can: ¼ Kg
La Costeña
Glass bottles: ¼, ½, 1 Kg; plastic container, 25 Kg
Conservas la Costeña provided information on their most representative packing machinery
at the Tulpetlac and Guasave plants. In the canned foods segment, the company operates 16
production lines and is about to finish the installation of an additional line. The non-canned
segment of their production operates 13 lines and is considering the introduction of an
additional line in 2002.
61
Brand
Units
Origin
Labeling machines
Carton form machines
Carton fill and seal machines
Transporting box system
Pallet forming machines
AGV Automatic Guide
Vehicle
Wrapping plastic film
machines
Wrapping plastic film
machines
Filling piston machines
Labeling machines
Pallet forming machines
Closing Machines
Wrapping and form machines
Coding machines for cans
Coding machines for boxes
Filling machines
Filling machines
Closing cans machines
Closing cans machines
Can making machines
Sterilizing machines
Age
New Way
Stork
Stork
Stork
Stork
Digitron
8
12
10
17
17
7
US
Holland
Holland
Holland
Holland
Switzerland
8
6
6
6
6
6
85%
90%
90%
90%
90%
85%
Signode
1
France
6
85%
N/A
1
US
4
85%
Elmar
Vshemba
Stork
Angelus
Cermex/Sidel
Image
Image
Solberin
Zacami
Angelus
Ferrum
Ferrum
N/A
25
12
13
25
2
18
16
13
4
14
3
8
3
US
Spain
Holland
US
France
US
US
US
Italy
US
Switzerland
Switzerland
N/A
10
13
6
15
1
6
6
6
6
10
6
6
N/A
80%
80%
90%
90%
90%
85%
85%
90%
90%
90%
90%
90%
N/A
D) Last Purchases of Packaging Machinery
La Costeña’s last packing machinery purchase was in 2001 when they invested over US $4
million in a complete line for the hot pepper canned products and in wrapping and form
machines. In 1999 and 2000, they spent an average of US $4 million per year in machinery.
Machinery
Form, fill, seal, sterilize, transport,
palletize and wrapping machines
Wrapping and form machines
Brand
Stork
Country
Holland
Cost (Approximately)
US $3.5 million
Cermex / Sidel
France
US $800,000
The company purchases machinery directly from manufacturers. In the cases of Stork,
Angelus, and Ferrum, the company has signed technical support agreements with their local
representatives in México and is satisfied with the service it is receiving. It is important to
the company that their suppliers maintain an adequate inventory of spare parts in México.
La Costeña’s employees receive training from the equipment manufacturers both for the
operation and the maintenance of the equipment. The company uses technicians from the
OEMs to provide maintenance only in those cases when the equipment is very complex and
sophisticated, as is the case for their automated processes.
62
With the recent purchase of a complete line for canned products, La Costeña does not have
any investment program for this business segment in the short term. Near-term purchases
are planned for their other business “segment” and will include the following equipment:
Machinery
Units
Origin Motive of Purchase
Case / Tray form (plastic), fill
and seal machines for
marmalade, sauces, and vinegar
Wrapping machines for
marmalade, sauces, and vinegar
Capping machines
Labeling machine
3
T.B.D
Expansion
Estimated
Budget
US $1 million
3
T.B.D
Expansion
US $1 million
2
3
1
T.B.D
T.B.D
T.B.D
Expansion
Expansion
Expansion
US $800,000
US $300,000
US $50,000
La Costeña purchases most of its equipment directly from manufacturers, but if they have
an existing relationship with a local representative, they might purchase equipment locally,
as they believe that this helps commit the local representative to offering better post-sale
service. The company indicated they are open to analyzing new potential equipment
suppliers who are able to meet the company’s standards and goals—the automation of all
processes and requiring new equipment to be compatible with their existing lines.
This company is very satisfied with its existing suppliers. However, if they cannot offer a
specific application, La Costeña will work with alternatives. If the required equipment is
not available from current suppliers, company practice is to evaluate three alternatives from
other suppliers making sure that the equipment matches their specific needs.
The company purchases equipment with its own cash flow, giving a 30% down payment,
an additional 30% within 30 days, and a final payment once the equipment is operating at
their facility.
The most important factors that La Costeña considers when evaluating the purchase of new
equipment is its compatibility with existing lines and the level of technical support that the
supplier can provide. Other important factors that are considered include:
1.
2.
3.
4.
5.
Previous working experience with the supplier.
Innovations developed by the manufacturers to upgrade existing machinery.
Brand recognition within the food industry.
Competitive pricing.
Country of manufacture.
63
Equipment Suppliers
La Costeña has been focusing its investments on the automation of its manufacturing
processes. At this time, La Costeña’s preferences are for European suppliers as they
consider that this equipment is more flexible than the alternatives. Another key decision
factor for selecting a supplier is the level of technical support it can offer in México.
Most of the equipment installed in La Costeña at this time is European, followed by US
machinery. The company has a preference for the following suppliers: Stork, Image,
Cermex / Siedel, Vshembra, and Angelus and Solbern (US), among others.
La Costeña mentioned that their goals are automation and increasing the productivity of the
manufacturing process. They would consider working with new suppliers and would even
consider replacing existing lines if they are shown more efficient manufacturing
alternatives.
La Costeña’s evaluation of packaging machinery according to its country of origin:
Origin
United States
Spain
Germany
Holland
France
Technology
Good
Very Good
Very Good
Very Good
Good
Flexibility
Good
Good
Very Good
Very Good
Low
Service
Low
Very Good
Good
Very Good
Good
Price
Good
Good
High
Good
High
I) Trade Show Attendance / Trade Publication Information
The company attends trade shows in México including PMMI’s Expopack. The managing
director of the company visits other shows in the United States and Europe and conveys the
information to his technical staff.
The company subscribes to two trade publications focused on providing information on
new machinery and technologies: Tecnica Industrial Alimentaria and Reportero Industrial
Mexicano.
La Costeña is interested in receiving information on the following packaging machinery:
•
•
•
•
•
•
Case / Tray form, fill and seal machines for marmalade, sauces, and vinegar
Wrapping machines for marmalade, sauces, and vinegar
Capping machines
Labeling machines
Fully integrated canned and bottled systems
64
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
E-mail:
Web page:
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
E-mail:
Web page:
Ing. Eduardo Ramón Jimenez
Director of Mechanical Maintenance (Canned Products)
Vía Morelos N° 268
Col. Tulpetlac
55400, México D.F.
(52) 5836-3636
(52) 5836-3687
eduardoramonj@yahoo.com
www.costena.com.mx
Ing. Bernardo Ramírez
Director of Maintenance (Other Products)
Via Morelos N° 268
Col. Tulpetlac
55400, México D.F.
(52) 5836-3600 Ext: 5304
(52) 5836-3683
bernardo.Ramirez@lacostena.com.mx
www.costena.com.mx
65
Helados Holanda
Industry:
Sub Industry:
Location:
Size: (sales)
Specific Business
Opportunities:
Food
Ice creams
Cuautitlan, state of México
US $140.4 million
US $2 million
Wrapping machine for ice-cream/cookie sandwich,
Interbreak, Tetrapack SL 900, Coding machines,
extrusion machine for ice-cream popsicles
Helados Holanda was established in1938 with the idea of creating a chain of ice cream
parlors, where each store would manufacture its ice cream products. Ten years later,
demand had increased dramatically and made it necessary to build a processing facility for
the manufacture of ice cream products to supply the stores.
In the late 1940s the company’s product line included ice, cheese, ice cream, and ice cream
popsicles. In the late 1960s Beatrice Foods entered into a joint-venture with this company
and financed the expansion of its manufacturing facilities. This expansion helped the
company consolidate its leadership as the largest ice cream producer in México.
In recent years, the company was purchased by Unilever and became part of Unilever’s ice
cream division in México, which also includes the ice cream brand Bing. They are currently
the leaders in México in the ice cream market, servicing more than 40,000 points of sale
throughout México.
Sales for this company are concentrated on the Mexican market.
Product
Ice Cream (bulk served by scoops)
Copa Holanda (ice cream cone in cup)
Vaso Holanda
Cornetto (ice cream cones)
Vienetta (ice cream dessert)
Icesicles and ice cream bars
Packing
Bulk cylinders (carton exterior, plastic
interior or plastizised carton)
PVC cup
Plasticized carton container
Plastic wrap
Carton box with cellophane
BOPP bag
66
Some of the most important packaging machinery used in Helados Holanda includes:
Average Age Specification
Units
Origin
Filling machines/ Ventura
2
N/A
N/A
N/A
Molds for ice cream bars with
1
US
7
90%
integrated wrapping / WCB Versaline
2
US
1
90%
integrated wrapping / WCB Vitaline
1
Germany
7
90%
integrated wrapping / Ria 14 GRAM
Tetrapak SL9000 Hoyer
1
Denmark
3
95%
Versaline filler WBC
2
US
7
70%
Wrapping machine for ice cream /
1
US
N/A
100%
cookie sandwich / Interbreak
Stick dispensing machine / Storemax
4
US/Denmark
N/A
N/A
Coding machines / VideoJet
8
US
N/A
50%
Palletizing units
1
US
N/A
80%
In 1999, Unilever made a very important investment for the modernization and upgrading
of all their ice-cream manufacturing facilities in México. Because of this major investment
in machinery, recent purchases have been minimal.
The last purchase of packaging machinery took place in 2001, when they purchased a stickdispensing machine for ice-cream bars from the US manufacturer Storemax.
The company has a US$2 million budget to purchase packaging machinery during 2002.
This money will be used to purchase one mold for ice cream bars with integrated wrapping
machine (Interbreak) and one Tetra Pack SL900. The company is also interested in
purchasing an extrusion machine for their ice-cream bars.
They are also interested in printers that are able to produce coding that will not fade with
the condensation of the ice cream once it is packed.
Unilever’s ice-cream division reviews its budget for the purchase of packaging machinery
every six months. The company purchases it equipment with its cash flow.
Equipment with a price tag over US$500,000 is considered a CEP (capital expenditure
proposal), and the decision process is complex because of the number of individuals
67
involved. Once a machine has been selected, it requires the approval—at a local level—of
the supply chain director, the manufacturing manager, the commercial director, and the
managing director. From a corporate standpoint, they require the approval of the president
of the company at their headquarters in London.
The manufacturing manager can immediately approve smaller purchases.
The company’s technical and maintenance staff receive training from their equipment
suppliers. All major maintenance and repairs are handled by the technical staff of the
equipment manufacturers, mostly by Interbreak from the United States and Tetrapac from
Denmark.
1.
2.
3.
4.
5.
Meets technical and manufacturing requirements.
Technical support.
Spare part availability.
Price.
Previous experience with the supplier.
Equipment Suppliers
This company stated that there is one single technology for manufacturing ice creams and
that all suppliers offer similar solutions. They mentioned that the equipment suppliers for
their industry of which they are aware are Tetra Pack, WBC, Glacier, Gram, and Storemax.
Helado Holanda noted that none of these machines are anthropometrically adapted to their
needs in México.
Origin
United States
Germany
Denmark
Technology
Good
Good
Very Good
Flexibility
Good
Good
Very Good
Service
Very Good
Price
Good
Very Good
Very Good
I) Trade Show Attendance / Trade publication Information:
Company personnel attend Expopack in México and an additional trade show also in
México that is focused on the ice cream industry.
J) Specific Interests
Helados Holanda is interested in receiving information on machinery for the manufacturing
and packing of ice creams, ice cream bars, and icesicles.
68
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
E-mail:
Web page:
UNILEVER DE MÉXICO, DIVISION HELADOS
Ing. Carlos Cabrera
Manufacturing Department Chief
Carr México-Querétaro
Cuautitlan, Izcalli
(5255) 5899 0379 x 6637
(525) 58 99 03 79 x 6637
carlos.cabrera@unilever.com
www.unilever.com.mx
69
Laboratorios Griffith de México, S.A. de C.V. (MTY)
Industry:
Sub Industry:
Location:
Size: (sales)
Specific Business
Opportunities:
Food condiments
Solutions
Santa Catarina, Nuevo León
US $55 million
US $0.8 to $1 million for 2002
Bottle filling machines, Portioning sachets fillers,
Blister machine, Labeling machine, Coder and
Capping machines.
Laboratorios Griffith de México, S.A. de C.V. began operations in México in 1944. It is a
subsidiary of Griffith Labs in the United States. Today Griffith has 4 plants in México: one
in Monterrey, one in San Luis Potosi, and two in México City. This company operates 32
facilities in 23 countries worldwide.
Laboratorios Griffith manufactures dry blends designed to enhance flavor and texture either
for topical or internal use, in all bakery applications, coatings, liquid condiments and
sauces, functional ingredients, specialty ingredients, and bakery and dough systems.
Product
Ingredient Mixers
Sauces, dressings, and dips
Anti-oxides
Package
Plastic bags
Plastic containers
Sack
Portioning sachet
Plastic bottles
Plastic bags
Plastic containers
Blister
Plastic barrels
Laboratorios Griffith did not reveal its installed base of packaging machinery as they
consider this information to be confidential.
Griffith’s last packaging machinery purchase took place in July 2001 when they acquired
two heat exchange machines, and one sachet dispensing and packaging machine. This
equipment was acquired in the United States for an approximate cost of US$280,000.
70
Laboratorios Griffith was planning to spend between US$800,000 and US$1 million in
packaging machinery in 2001, however, the economic slowdown and a significant decrease
in sales prompted them to delay their investment plans. The company believes that during
2002 they will make the acquisitions placed on hold last year as in recent months they have
been able to meet their sales goals. Most likely, the following acquisitions will be made in
the second half of 2002:
Machinery
Bottle filling machines
Sachet filling machines
Blister machine/ Uhlman or Cozzoli
Labeling machines/ Trine
Coding machine
Capping machines
Units
Origin
2
1
1
1
1
1
T.B.D
T.B.D
Europe
US
T.B.D
T.B.D
Motive of
purchase
Renewal
Expansion
Renewal
Renewal
Renewal
Expansion
Estimated Budget
T.B.D
T.B.D
US $200,000
US $17,000
T.B.D
T.B.D
All new machinery acquisitions require authorization from the corporate offices in the
United States. Supplier selection is based on corporate recommendations as Griffith has
agreements with US packaging machinery manufacturer. In addition Griffith plants
worldwide are following a standardization plan to offer the same quality in all their plants.
After receiving recommendations from corporate, Griffith de México makes the final
decision based not only on the equipment characteristics but also on the capabilities of the
supplier to offer local service. Usually they request quotes from three different
manufacturers and compare proposals.
For major equipment Griffith prefers to pay 50% when the order is placed, 35% when the
machine is installed, and 15% after 30 days of operation. For minor equipment, the
company pays 50% upfront and 50% at delivery.
1.
2.
3.
4.
5.
Quality.
Cost.
Service.
Brand recognition.
Spare parts availability
71
Equipment Suppliers
Laboratorios Griffith de México prefers US and German equipment because they consider
those to be the leaders for food products. For complementary equipment such as labeling
machines and coding machines, the company has no particular preference and they look for
those that offer the best cost-benefit.
Origin
United States
Germany
Canada
México
Technology
Very Good
Very Good
Good
Average
Flexibility
Good
Good
Good
Average
Service
Very Good
Very Good
Good
Average
Price
Very Good
Average
Good
Good
Laboratorios Griffith has plans to purchase bottle fillers and sachets fillers in addition to
blister, labeling, capping, and coder machines. The company would like to receive
information for these types of equipment, however, if the suppliers are new to Griffith, they
recommend approaching the corporate offices in the United States prior to targeting Griffith
in México.
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
E-mail:
Web page:
Laboratorios Griffith, S.A. de C.V.
Ing. Enrrique Medina
Engineering Director
Carretera Monterrey Saltillo Km. 67.5
66350, Santa Catarina, Nuevo Léón
(52-8) 380-4400
(52-8) 380-4440
emedina@griffithlabs.com, ngutierrez@griffithlabs.com
www.griffithlabs.com
72
McCormick Pesa, S.A. de C.V.
Industry:
Sub Industry:
Location:
Size: (sales)
Specific Business
Opportunities:
Food
Spices, seasonings, food colors, flavor
medleys, spice blends, conservatives, liquid
flavors, additives, etc.
state of México
N/A
N/A
Vertical packing machine, Capping, fillers
(liquids and powder), bagging and
thermoforming machines.
McCormick Pesa is the local subsidiary of this global leader in the production, marketing,
and distribution of spices, seasonings, and flavors for the food industry. Founded in 1889,
McCormick has approximately 8,100 employees worldwide.
Customers range from retail outlets and food service providers to food processing
businesses.
McCormick Pesa was previously known as Proveedores de Empacadoras, S.A., in which
McCormick had a 10% stake and finally purchased the company in 1994. The company’s
core business in México is to manufacture and distribute spices, ingredients, and food
additives to the Mexican food industry and to export markets, including the United States,
Central and South America, and Europe.
McCormick Pesa’s headquarters, main processing plant, flavor plant, and main distribution
center are located around the México City area. They operate another manufacturing plant
in Monterrey, N.L., and have distribution centers in various regions including Guadalajara,
Puebla, Celaya, Hermosillo, and Chihuahua.
Product
Industrial food seasonings and condiments
Food additives
Flavors (natural and artificial)
Spices
Dehydrated vegetables
Oleoresins and essential oils
Spice alternatives
Marinades
Coating systems
73
Package
Plastic containers
Polyurethane bags
Paper BOPP
Variable
Bag of Kraft paper
PET bottles
Polyurethane bags
Carton boxes
Aluminum bags
The company indicated that specific details on their packaging equipment are considered
confidential but provided general information on their packaging machinery base.
Vertical packaging machine
Bag form fill and seal
Portioning packaging machines
Filling dry/solid products
Filling liquids machines
Brand
Neorton
N/A
N/A
N/A
N/A
Units
9
18
2
6
9
Origin Average Age Specification
US
6
90%
N/A
6
90%
US
N/A
90%
Italy
8
90%
N/A
N/A
90%
This company’s last purchase of packaging machinery took place in 1999 when they
invested US$1.4 million in a complete vertical line that forms, fills, and seals low-density
polyethylene bags as well as BOPP aluminum foil.
Machinery
Vertical packaging machine
Brand
Neorton
Country
US
US $1.3 million
McCormick Pesa plans to concentrate all of its manufacturing in their main plant located in
the Cartagena Industrial Park in the state of México. They expect this will make them more
efficient and will free up resources for investing in new equipment to modernize their
manufacturing and packing processes. This project, which will require physical expansion
of the plant and the purchase of new equipment, is planned to begin in February 2002.
For the near future, the company does not yet have a well-defined purchasing plan for new
equipment but indicated that they will need to invest a significant amount of money in
process and packaging machinery, which will include:
Machinery
Form, fill, and seal bag/pouch / Vertical
Transporters/ Conveyors
Fillers (liquid and powders)
Capping machinery
Weighers
McCormick Pesa uses a highly standardized equipment selection and purchasing process,
which includes the identification of potential suppliers that are invited to visit their plant
and to present proposals.
74
The proposals are then evaluated by their engineering department and by management.
Once equipment and a supplier are selected, the information is sent to corporate in the
United States for final approval.
Potential suppliers can be incorporated into the selection process by sending a letter
indicating their interest and forwarding equipment information.
The company usually purchases equipment with payment terms of 60 days, with a 40%
down payment and a final payment once the equipment is in operation at their facility.
1.
2.
3.
4.
5.
The equipment meets their exact production requirements.
The supplier can offer good technical support.
Brand’s reputation.
Equipment design.
Price.
Equipment Suppliers
McCormick Pesa indicated they do not have a preference for machinery from any particular
country. They have had more experience with US equipment, as it is most often
recommended by their headquarters.
The company has some corporate agreements with some machinery suppliers. The Mexican
operation defines new equipment needs, makes an economic feasibility study of the
proposed equipment, and sends the information to their headquarters, which is responsible
for handling the purchase. The company purchases equipment directly from manufacturers.
McCormick Pesa has a technical staff that can provide maintenance and repairs for their
equipment. In case of a major repair, they contract the work with the local representative or
directly with the equipment manufacturer.
McCormick Pesa evaluation of packing machinery according to its country of origin:
Origin
United States
Spain
Germany
Italy
France
Technology
Very Good
Good
Very Good
Good
Very Good
Flexibility
Good
Good
Good
Good
Good
75
Service
Good
Good
Good
Good
Good
Price
Regular
Good
Regular
Regular
Regular
McCormick Pesa receives information on many potential suppliers from their corporate
offices in the United States. They attend trade shows like Expo Pack in México and IFT in
Europe.
Their current equipment suppliers also submit information on new equipment or
technologies that they are developing.
The company is interested in receiving information on complete vertical lines for packaging
using BOPP paper and polyurethane as well as for for liquid and powder filling machines.
If a piece of equipment interests them, they will help in sending this information to their US
corporate office.
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
E-mail:
McCormick Pesa, S.A. de C.V.
Mario A. León
Purchasing Director
Av. 2 Lote 1-C
Col. Parque Industrial Tultitlán
54918, Estado de México
(5255) 5888-1416
(5255) 5888-3862
mario_leon@mccormick.com
76
Nabisco, S.A. de C.V.
(Kraft Foods de México)
Industry:
Sub Industry:
Location:
Size: (sales)
Specific Business
Opportunities:
Food
Cookies, wheat flour, powdered
desserts (jellies, custard, etc), pasta
México City
N/A
US $1.8 million
Case forming machines, Tray
forming machines. Furnaces.
Nabisco’s origins date back to 1898 when the National Biscut Company was founded in the
United States. Operations in México began in 1945 when the company Nabisco-Famosa
was established. Since that time the company has changed hands many times as it was part
of the US company Purina and of the Mexican company Gamesa.
Kraft Foods purchased the company in December 2000.
The company sells a wide range of products in the Mexican market under various brands
for each of their product segments. As for cookies, the company sells over 29 different
products. It also sells pastas, pancake mixes, and various powdered gelatin-based products.
Product
Pasta
Cookies
Wheat flour, pancakes,
“churros” flour
Jelly and custard powders
Brand
Yemina
Nabisco
Package
Polypropylene bags
PET trays, metalized sheets,
polypropylene bags, and carton boxes.
Tres estrellas Carton box, polypropylene bags, bond
paper
Royal
Microcorrugated polypropylene bags
77
Current Machine ry Used
Units
Origin
3
México
3
25
29
10
5
4
2
1
1
4
7
México
Various
15
85%
US
US
US
US
México
N/A
Germany
6–8
15–18
10
5
15
90%
85%
80%
90%
90%
35
85%
6
US
16
85%
1
5
5
5
Italy
Spain
US
Italy
16
7
15
11
85%
90%
90%
85%
Weighing, filling and closing
machine/Envaflex.
Horizontal filling machines/ Envaflex
Tape dispensing machines/ Devek
Mechanic coding machines/ Eurocodi
Electric coding machines/ Links
Bag form fill and seal machines/ Bartel
Press coder
Form weighing and sealing/ Envaflex
Box form fill and seal machines/ Hesser
Polyethylene-metal roll forming
machines/ Nexor
Polyethylene-metal roll forming
machines / Tebofarm
Thermoforming
Multipack (for cookies)
Packaging pasta machine/ Triangle
Horizontal filling and sealing machine
for pasta / Pavan
Age
15
85%
Nabisco has not acquired new machinery recently but has a yearly budget for equipment
maintenance. The last purchase was 7 years ago, an investment of US $1.5 million.
E) Future Packaging Machinery Ordering Plans
Kraft Foods purchased the worldwide operations of Nabisco in December 2000. The
company is still restructuring, but some needs have been defined for their operation in
México. The company plans to purchase six case- forming machines and six tray- forming
machines (for cookie trays) to replace existing machinery as well as new furnaces.
F) Purchasing Policies and Financial Arrangements.
The production department is responsible for defining their new equipment needs and for
selecting potential equipment and suppliers. Equipment is selected considering its
flexibility, ease of operation, quality, and ability to meet their sanitary requirements.
The information is forwarded to the engineering department, which is responsible for
conducting an economic feasibility study for the proposed purchase. Other departments get
78
involved in the decision process as well, including maintenance, engineering, production,
and quality control. Once a decision is reached, the information is sent to the corporate
office for final approval.
The company has a technical staff that provides maintenance to all their equipment. Spare
parts are purchased from the equipment manufacturer, which should also be responsible for
training this company’s maintenance crews.
1.
2.
3.
4.
5.
Flexibility.
Sturdy construction.
Brand.
Technical support.
Price.
Equipment Suppliers
Nabisco indicated that they have a preference for European equipment, as they believe it is
longer lasting than other options. They mentioned that as they do not purchase equipment
regularly, they prefer equipment that will be operational for a long time.
Origin
United States
Germany
Italy
Spain
Technology
Very Good
Very Good
Good
Good
Flexibility
Good
Good
Good
Good
Service
Good
-Good
--
Price
Good
High
Good
Average
Nabisco is very interested in receiving information on packaging machinery mostly for
cookies and also for their flours and pasta products.
J) Contact Information:
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
E-mail:
Web page:
Kraft Foods de México–Nabisco
Ing. Hector M. Sanchez Aguilar
Maintenance Manager
H. Congreso de la Union # 5840
Col. Tres Estrellas
07820, México City
(5255) 57 29 28 07
(5255) 57 29 28 81
sanchezh@la.pm.com
www.nabisco.com.mx
79
Nestlè México, S.A. de C.V.
Industry:
Sub Industry:
Location:
Size: (sales)
Purchasing
Potential:
Specific Business
Opportunities:
Food and Beverages
Beverages, milk products, ice cream, prepared
dishes, cooking aids, pet care, chocolate,
confectionery, biscuits
México City
US $2 billion
US $8 million for 2002
Powder filling machines, Tray packers / Kayat,
Filling and capping machines for yogurts, icecream bar stick machine, Weighing systems,
Metal detectors, Form, fill and seal (bag/pouch)
horizontal and vertical among others.
This company is a subsidiary of Nestlè Switzerland. With a total workforce of
approximately 224,541 people in some 479 factories worldwide, Nestlé is not only
Switzerland’s largest industrial company, but it is also the world’s largest food company.
Its products are available in nearly every country around the world.
Nestlè began operations in México in 1950, with the construction of their first facility in
México City for manufacturing soluble coffees and chocolates. It currently operates 13
manufacturing plants, where it produces products for the Mexican and export markets,
including evaporated milk, chocolates, coffees, pet foods, and power bars. The Mexican
operatio n exports into the United States, Central America, and the Caribbean.
Nestlè’s global manufacturing policies have a direct impact on their operations in México.
The company’s top objective over the past five years has been to improve manufacturing
efficiency at all its plants.
The strength of Nestlé’s brands has given the company an unparalleled global position
across a wide range of product categories. Six worldwide corporate brands—Nestlé,
Nescafé, Nestea, Maggi, Buitoni, and Friskies—contribute about 70% of the group's total
sales, with the Nestlé brand by itself contributing 40%.
80
A sample list of the company’s products includes:
Product
Soluble coffee
Brand
Nescafé, Taster's Choice, Ricoré
Roast & ground coffee
Water
Other beverages (teas, chocolate
powders, specialty milks, syrups)
Dairy products (shelf stable)
Nespresso, Bonka
Nestlé Pure Life and Santa Maria
Nestea, Nesquik, Milo, Carnation,
Caro
Nestlé, Nido, Carnation, La
Lechera, Gloria, Nestlé, Coffeemate / (chilled): Nestlé, LC1,
Svelty
Nestlé, Cheerios, Trix, Gold, Fibra
Max, etc.
PowerBar
Maggi, Buitoni and Crosse &
Blackwell
Breakfast cereals
Performance nutrition
Culinary products (bouillon,
soups, seasonings, prepared
dishes, canned food, pasta,
sauces)
Ice cream cones and bars
Chocolate and confectionery
Baby and infant foods
Pet care
Package
Glass jars, PP bags
and steel cans
Glass jars
PET bottles
Steel cans
Steel cans
Polypropylene bag
in carton box.
Aluminized bag
Glass jars and
Polypropylene bag
in carton box.
Nestlé, Frisco,Camy
Sticks and plastic
containers
Nestlé, Crunch, KitKat, Galak/
Aluminum foil,
Milkybar, Smarties, Baci, After
plastic bags, and
Eight, Baby Ruth, Butterfinger, etc. carton boxes.
Nestlé, Nestogen, Cérélac, Neslac, Steel cans
Nestum
Friskies, Alpo
PP Bags
Because of the very large number of different packaging processes and machinery used by
this company, we were able to identify just the most representative equipment used for the
packaging processes at all their plants.
Nestlè indicated that its installed packaging machinery is 60% European, 30% American,
and the rest from countries such as Argentina, México, Japan, Korea, and others. The
average operating capacity is 85%.
81
Displacement filling machines
Volumetric cup filling machines
Form/fill/seal (bag/pouch) horizontal and vertical
Level filling machines (powders)
Heat sealing machines
Weld sealing machines
Screw capping machines
Closing machines
Labeling, coding, decorating, marking machines
Inspection machines
Wrapping machines
Case form, fill and seal machines
Pallet forming, dismantling and securing machines
Robotics
Custom designed /Special machinery
Can making
Orienting systems
Thermoform packaging
Tape dispensing
Multipackaging
Nestlè México invested approximately US$5 million in the purchase of new machinery
during 2001. These purchases were necessary to launch the new items in their ice-cream
and dairy product lines. Other purchases replaced some labeling and coding machines.
These most recent purchases have been motivated by the need to generate new packaging
presentations.
Machinery
Can making
Ice-cream stick machine
Bagging machine
Weighting machines
PP Bagging form machine
Labeling machines
Tetra Pack formers
Laser code machines
Units
2
1
2
4
1
4
2
8
Brand
N/A
Serac
Try Angle
N/A
Eros
Fugi Film
N/A
N/A
82
Country Cost (Approximately)
US
US $700,000
France
US $600,000
US
US $300,000
Canada
US $300,000
Argentina
US $200,000
US
US $50,000
Italy
US $1 million
US
Loaned
Nestlè de México has an estimated budget of US $6 million for packaging machinery for
the year 2002. This investment will be used to modernize the current filling processes for
coffees and powdered products like condensed powder milk.
Other purchases will include a tray packer; filling and capping machines for yogurts; icecream packaging lines; weighing systems; metal detecting equipment; form, fill, and seal
(bag/pouch) horizontal and vertical; among others.
Machinery
Units
Powder filling machines
2
Tray packers / Kayat
2
Filling/capping machines for
1
yogurts
Ice cream stick machine
1
Weighing systems
N/A
Metal detecting units
T.B.D
Form, fill, and seal (bag/pouch) T.B.D
horizontal and vertical
T.B.D
US
T.B.D
Modernization
Replacement
Expansion
Estimated
Budget
N/A
US $350,000
N/A
Serac
T.B.D
T.B.D
US
France
T.B.D
T.B.D
T.B.D
US $600,000
T.B.D
T.B.D
T.B.D
Nestlé has a purchasing office in Glendale, California, which obtains financing and
negotiates most machinery purchases for the group. This office consolidates purchases of
various international plants and obtains preferential conditions and pricing. Additionally,
Nestlé’s purchasing office in Switzerland has purchasing agreements with several
packaging machinery manufacturers.
When Nestlé México has a new packaging machinery need, it notifies its purchasing office
in California. If agreements with this supplier already exist, they proceed with the purchase.
When the proposed supplier does not have pre-existing agreements with Nestlè, the
decision process is transferred to the Mexican operation.
When Nesté México selects a machinery supplier, they evaluate at least three alternatives.
Once the local operation selects a supplier, the purchasing office in California handles the
purchasing negotiations.
1.
2.
3.
4.
5.
Technology, efficiency, and production speed.
Quality and durability.
Delivery schedule.
Service and spare parts availability.
Cost.
83
Equipment Suppliers
The company has some preference for suppliers of specific equipment, for example, Kayat
for Tray Packing and Wrap Around Machines. Nestlé considers US filling machines to be
particularly good for instant coffees and baby cereals, and British machines are considered
the best for milk powders. The company considers European machinery to be more flexible
than US equipment in many cases.
The company also receives equipment recommendations from its headquarters in
Switzerland or from other plants around the world.
Some packaging machinery manufacturers develop special designs for Nestlé. Both the
manufacturer and Nestlé patent these machines, and the manufacturer must request
authorization from Nestlé Switzerland to sell the machine to third parties.
Nestlé’s evaluation of packaging machinery by country of origin:
Origin
United States
Germany
Italy
France
Switzerland
Technology
Average
Very Good
Very Good
Good
Very Good
Flexibility
Average
Good
Good
Average
Good
Service
Good
Good
Good
Average
Good
Price
Good
Expensive
Average
Expensive
Expensive
Nestlé attends most packaging machinery trade shows in the world. They consider the most
important to be PackExpo in Chicago, Interpak and Metpack in Europe, and Expo Pack in
México. The company receives information from potential suppliers and from other
manufacturing facilities belonging to their group. They also subscribe to trade publications
such as Packing Digest and Industria Alimenticia.
When selecting a potential supplier, Nestlé uses PMMI’s directory, the Internet, and its own
Intra- net.
The Nestlé personnel feel that they are aware of most of the packaging machinery available
from well-known manufacturers, so they are interested in receiving information of new
developments only.
84
Company Name:
Contact:
Position:
Address:
Nestlé México, S.A. de C.V.
Heinz J. Baeni H.
Deputy Director of the Packaging unit.
Av. Ejercito Nacional # 453
Col. Granada
11520 México D.F.
(5255) 5262-5052
(5255) 5262-5472
heinz.baeni@mx.nestle.com
www.nestle.com
Telephone:
Fax:
E-mail:
Web page:
Organización La Corona, S.A. de C.V.
Industry:
Sub Industry:
Location:
Size: (sales)
Specific Business
Opportunities:
Food
Candies and Chocolates
México City (D.F.)
N/A (Over US$10 million)
US$ N/A
Carton form, fill, and seal
machines
This is a private Mexican company that has been in business for over 50 years. The
company remains a family-owned business and is a well-known player in México’s
chocolate market. Cocoas y Chocolates la Corona operates four manufacturing facilities
and employs over 800 workers. Two of their four plants are located in México City, one in
the state of México, and one in the state of Jalisco.
The company’s production is sold in the interna l market, and some of its products are also
exported principally to the US market.
The company only manufactures chocolates and chocolate-based candies, which are sold
under the La Corona brand.
Their products are:
Product
Filled chocolate
Solid chocolate
Brand
La Corona
La Corona
Package
Wrapped, flow pack, and label.
Wrapped, flow pack, and label.
85
The company’s installed base of packaging machinery at one of their manufacturing plants
in México City serves as an example of the machines they have in all their facilities. The
installed base at this plant includes the following equipment:
Units
Vertical filling machines/ Envaflex
Vertical filling machine/ Triangle
Wrapping machines/ Sig CK
Wrapping machine/ Carle Montanari
Coding machines/ Enpack
Origin
Age
México
5
100%
US
5
100%
Switzerland
15
100%
Italy
5
100%
US
2
100%
2
1
8
3
6
The company is expecting delivery of their most recent purchase of packaging machinery,
which took place in November 2001. The company provided no information on the cost of
this investment, but it was acquired from the Mexican packaging machinery manufacturer
Envaflex.
Machinery
Vertical filling and sealing machine
Brand
Envaflex
Country
México
Chocolates La Corona indicated they have no short-term plans for the purchase of new
machinery. It is possible they will purchase new equipment in about 18 months, and this
purchase may include carton form, fill, and seal machines to automate processes that are
currently performed manually.
Machinery
Units
Origin Motive of purchase Estimated
Budget
machines
4
-
Process automation
-
The company purchases equipment directly from the manufacturer. They select the
equipment that best fits their production requirements and their budget. The company has
no special preference for any equipment supplier but indicated a preference for European
equipment.
The company uses letters of credit drawn on Mexican banks for the purchase of new
equipment due to its simplicity and cost.
93
1.
2.
3.
4.
Price.
Technology.
Service.
Spare part availability.
Equipment Suppliers
The company indicated that they have a prefe rence for European equipment but that they
are open to purchasing from any supplier whose equipment satisfies their production
requirements. They select their suppliers at ExpoPack and through information they
receive; or in some cases they purchase used equipment advertised in a US publication
called Union.
This company evaluates suppliers according to their countries of origin as follows:
Origin
United States
Italy
Switzerland
Technology
Good
Very Good
Very Good
Flexibility
Poor
Very Good
Very Good
Service
Poor
Very Good
Very Good
Price
Very Good
Good
Very Good
The company would like to receive information on carton form, fill, and seal machinery
and on related equipment to help them automate the last parts of their packaging process.
They are also interested in receiving information from suppliers specialized in machinery
for candies and chocolates.
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
E-mail:
Cocoas y Chocolates La Corona, S.A. de C.V.
Mr. Mario Barrera Gardida
Planning and Projects manager
Nicolás Bravo # 16,
Col. Magdalena Mixhuca,
(52-55) 5442-8896
(52-55) 5442-8887
mario_barreral@infosel.net.mx
94
Productos de Maiz, S.A. de C.V.
Industry:
Sub Industry:
Location:
Size: (sales)
Specific Business
Opportunities:
Food
Corn-based products
México City
US $600 million
N/A
Case packers, Carton form,
fill, and seal machines
Productos de Maiz, S.A. de C.V. was established in 1930 to manufacture cornstarch-based
food products. The Unilever group later purchased the company.
Unilever and Bestfoods merged recently, so this company is still undergoing a restructuring
process. It is currently manufacturing products under brands from both companies.
Productos de Maiz, S.A. de C.V. has one plant in México City, where it manufactures
various food products including additives, condiments, desserts, custards, soups, sauces,
salad dressings, mayonnaise, mustard, chicken broth, cooking oils, corn starch, and soybean
products.
The company sells its products under various name brands including Hellmann’s, Knorr,
Karo, and Maizena.
Product
Brand
Packing
Powdered chicken broth
Knorr
Glass bottle / Aluminium foil, carton
Mayonnaise
Hellmann’s Glass and plastic bottle
Mustard
Hellmann’s Glass and plastic bottle
Powders for custards
Kremel
Paper laminate, Carton
Corn syrup
Karo
Glass and plastic bottle
Atole
Maizena
Paper laminate
Corn starch
Maizena
Carton
Cooking oil
Mazola
Glass and plastic bottle
Soups
Knorr
Paper laminate
Sauces and “mole”
Knorr
Tetrabick
Starch
Niagara
Aerosols
Juices
Tetrabrick
95
C) Installed Packaging Machinery:
Origin
Depalletizer
Air cleaning machine
Filling machines
Labeling machine
Tray forming and closing machine
Palletizer
Pallet wrappers
Filling machine for liquid products
Capping machine
Labeling machine
Bottle handling equipment
Cube forming machines (for chicken
broth cubes)
Form, fill, and seal machine
Cap sorting machine
Italy
US
US
Germany
Holland
Italy
US
US
US
US
US
Italy
Bottle level inspectors
Box closing machine
Carton machine “bag in box”
Filling machine for corrugated board
Ink jet coder
Horizontal filling machine
Vertical filling machine
Vertical filling machine for zipped bag
Case forming machine
Case loaders for bags
Box closing with glue machine
Pouch packing machine Flow pak
US
México,
US
US
US
Canada
Canada,
Belgium
US
US
US
Argentina
US
US
US
US
US
Age
12
80%
12
80%
12
80%
12
80%
12
80%
12
80%
3
95%
12
80%
25
90%
12
80%
2
95%
5 to 20
75%
15
15
95%
95%
12
21
5 to 10
3 to 5
99%
95%
80%
90%
3
5
20
1
1
1
1
1
1
90%
99%
80%
80%
60%
60%
60%
60%
80%
D) Last Purchases of Packaging Machinery.
During the year 2000, the company invested about US$7 million in packaging equipment,
which was mostly purchased from US suppliers.
96
The following is a partial list of the equipment that was purchased:
Machinery
Vertical filling machine
Vertical filling machine for zipped bag
Case forming machine
Case loader for bags
Box closing with glue
Envelope packing machine Flow Pak
Country
Argentina
US
US
US
US
US
As mentioned, the company is still going through the necessary adjustments of the merger
between Unilever and Bestfoods. This, they indicated, makes it difficult to define specific
upcoming purchases of packaging machinery. The company estimates that they will close
some manufacturing facilities and that this will make used equipment available to be
transferred to other facilities.
In any case they will be needing additional packaging machinery including carton machines
and case packers.
It is still not clear how the merger will affect purchasing procedures. We have indicated that
Unilever traditionally allows its individual operations to define their own equipment needs
and later consult on those purchases with their corporate department called “Global
Technology Center,” which operates two centers for Unilever, one in England and the other
in the United States. These centers are constantly evaluating suppliers and equipme nt they
could recommend to their manufacturing facilities worldwide.
We have also mentioned that Unilever has a series of “worldwide” agreements with some
suppliers that help them receive better pricing for machinery, spare parts, and service.
G) Factors That Influence Purchasing Decisions.
1.
2.
3.
4.
5.
Good previous working experience within the Unilever group.
Quality.
Price.
Adaptability.
Easily reconfigured to various process needs.
97
Equipment Suppliers
Origin
United States
Germany
Italy
Spain
Canada
Technology
Very Good
Very Good
Good
Good
Good
Flexibility
Good
Average
Good
Average
Good
Service
Good
Average
Good
-Good
Price
Good
Average
Good
Very Good
Good
The company attends the Interpak Expo in Dusseldorf, Germany, and PMMI’s trade shows
in México and Chicago.
At this time, the company is focusing on solving the issues that have resulted from the
merger process. They ask that information not be sent by suppliers until these issues are
resolved.
K) Contact Information:
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
Unilever de México, S.A. de C.V.
Ing. Joaquín Macía Gómez
Rio Consulado #721
Col. Santa Ma. Insurgentes
México City
(5255) 52 37 10 07
(5255) 55 47 00 52
98
Productos Gerber, S.A. de C.V.
Industry:
Sub Industry:
Location:
Size: (sales)
Specific Business
Opportunities:
Food
Baby food, cereals and juices.
Queretaro, Qro
US$N/A
US$250,000
Thermo shrink packaging
machine.
Productos Gerber, S.A. de C.V. is a baby foods company that is now part of the nutrition
business unit of Novartis. This company manufactures a complete product line of foods for
babies that includes fruits, vegetables, soups, meats, desserts, juices, and cereals.
All of this company’s products are sold under the Gerber brand.
Product
Baby foods
Juices
Cereals
Brand
Gerber
Gerber
Gerber
Package
Glass jar / carton box
Glass jar / carton box
Can or aluminium bag / carton box
Brand
Filling rotary machine
Filling rotary machine
Vertical sterilization machines
Horizontal labeling machine
Rotative labeling machine
Elmar
H&K
AllPax
Standard Knapp
KRONES
Canmatic
Wrap-around cartoner
Standard Knapp
Ink jet coder
IMAGE ML8
Stretch film wrapping machine
MARKEM
Stretch film wrapping machine
KAYAT
Cooling tunnel
I&H / Fleetwood
Closing machine
Continental-White
Cap
Depalletizer
Senry
X-ray inspection
Ted Intraspect
Can inspection equipment
TAP TONE
99
Units
Origin
Average
Age
Specification
2
1
12
5
1
US
US
US
US
Germany
3
6
7
10
3
95%
100%
100%
75%
90%
3
3
1
1
2
3
US
US
US
US
US
US
5
4
1
4
7
10
75%
75%
100%
90%
75%
100%
2
2
6
US
US
US
10
8
N/A
80%
75%
90%
During the 1998–2000 period, the company invested US$700,000 in packaging machinery.
Their last purchase took place in May of 2000. This last puechase included the following:
Machinery
Brand
Stretch film wrapping machine Standard Knapp
Rotative filler
ELMAR
Country
US
US
Gerber plans to purchase a rotative wrapping machine from Standard Knapp to replace an
existing machine. The company estimates this equipment will cost approximately
US$250,000.
Once the plant’s technical department has determined that there is a need for the purchase
of new machinery, they produce an economic study that justifies the equipment purchase.
This information is sent to their corporate office for approval.
When the purchase has been approved, the company requests proposals from various
potential suppliers and evaluates the different options based on price, brand recognition,
service and support, and other factors. The purchasing decision process is a joint decision
between the various departments that are responsible for the manufacturing process.
The equipment is purchased directly from the manufacturer, and spare parts are purchased
from the manufacturer or its local representative.
1.
2.
3.
4.
5.
The equipment’s technical and operational characteristics.
Price.
Service and technical support.
Brand recognition.
Previous experience with the supplier; other client references.
Equipment Suppliers
The company has no existing purchasing agreements with any packaging equipment
supplier.
Company personnel indicate that they do not have any special preference for any supplier.
A previous positive experience with a particular brand is a plus for this supplier, but the
purchasing decision is not limited to this variable.
100
The company’s evaluation of packing machinery according to its country of origin:
Origin
United States
Germany
Italy
Spain
Technology
Good
Very Good
Good
Very Good
Flexibility
Very Good
Good
Good
Good
Service
Good
Fair
Bad
Good
Price
Good
Fair
Fair
Good
Gerber indicated that it attends Expopack México and PackExpo in Las Vegas and
Chicago, the only shows they go to on a regular basis. The company also receives trade
publications focused on the foods industry, processed foods industry, and manufacturing as
well as PMMI’s directory.
Productos Gerber is interested in receiving information on equipment for filling, control,
and labeling of glass jars, cans, and aluminum bags as well as carton boxes.
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
E-mail:
Web page:
Productos Gerber, S.A. de C.V.
Ing. Alberto Flores
Project Manager
Epigmenio Gonzalez #59
Col. Industrial,
76150, Qureretaro, Qro.
México
(52442) 211 83 00
(52442) 217 69 33
alberto.flores@ch.novartis.com
www.novartis.com and
www.gerber.com
101
Productos Lol Tun, S.A. de C.V.
Industry:
Sub Industry:
Location:
Size: (sales)
Purchasing
Potential:
Specific Business
Opportunities:
Food
Sauces and condiments
México City
US $1.5 million
US $150,000–$200,000
Liquids filling machine, Wrapping
machine, Capping machine, Labeling
machines, Code machine
Productos Lol Tun is a private Mexican company that was established in 1989. Their
business is the production of hot pepper sauces called “salsas,” made from a special variety
of peppers found in southeastern México called Habanero. The company has expanded
their product lines to include other food products in addition to their successful hot pepper
business.
The company ha s six principal products, which are sold in the Mexican market and
exported to Canada, Japan, Germany, and Italy.
Product
Habanero pepper sauce
Habanero pepper slices
Condiment (Achiote)
Cherries
Olives
Capers
Brand
Lol Tun
Lol Tun
Lol Tun
Lol Tun
Lol Tun
Lol Tun
Package
Glass bottle of 140 ml.
Glass bottle of 235 gr.
Plastic bag, Corrugated carton box of 100 gr.
Lol Tun remains a small company so cost is a key factor when they decide on the purchase
of new equipment. Because of this, they prefer Mexican suppliers, as their machines are
less expensive than other options. However, they indicate that eventually they would like to
purchase from international suppliers because they believe they offer better quality.
102
Wrapping machine
Filling machine
Capping machine
Plastic seal machine
Filling machine
Labeling machine
Code machine
Code machine
Brand
Camara
Mapisa
Mapisa
Kalish
Macruz
Etitec
Dominos
Sanasi
Units
1
1
1
1
1
1
1
1
México
4
80%
México
8
80%
México
8
80%
Canada
6
90%
México
10
90%
México
3
90%
US
4
80%
US
4
80%
Their last purchase of packaging equipment was for a labeling machine, which was
purchased from the local supplier Elitec. The investment was around US$10, 000.
Machinery
Labelling machine
Brand
Etitec
Country
México
US $10,000
Lol Tun has an ambitious investment program that consists of the construction of a new
manufacturing facility with three times the production capacity of their existing plant. They
expect this facility to be operational within two years, which will create a need to purchase
new process and packaging equipment.
They estimate that they will invest between US$150,000 and US$200,000 in packaging
machinery for this facility. The purchases will include filling machines and equipment to
automate their packaging of habanero slices, olives, capers, and cherries—a function that is
currently performed manually.
The company also has plans to introduce new products for larger product volumes.
Following we present a list of the equipment the company estimates it will need for their
new facility:
Machinery
Wrapping machine
Filling machine
Capping machine
Plastic seal machine
Filling machine
Labeling machine
Coding machine
Coding machine
Units
1
1
1
1
1
1
1
1
T.B.D
Expansion
T.B.D
Expansion
T.B.D
Expansion
T.B.D
Expansion
T.B.D
Expansion
T.B.D
Expansion
T.B.D
Expansion
T.B.D
Expansion
103
Lol Tun us ually purchases its packaging machinery from local equipment suppliers. They
have only purchased used foreign equipment, as in the case of their Kalish plastic seal
machine.
Lol Tun pays for its equipment in cash, usually a 50% down payment and the rest once the
machine has been delivered.
1.
2.
3.
4.
5.
The equipment meets their production needs.
Price.
Quality.
Technical support.
Easy, local purchse of spare parts.
Equipment Suppliers
Lol Tun indicated that they currently prefer Mexican equipment suppliers as their prices are
low when compared to US or European suppliers. But the company also mentioned that
Mexican equipment has created other significant costs: for adapting the machines to the
company’s production volumes and for constant maintenance.
The company is starting to discover that their most cost-effective solutions might come
from foreign equipment suppliers.
The company is satisfied with its Kalish machine but complained that it is difficult to get
service and find spare parts in México.
Lol Tun’s evaluation of packaging machinery according to its country of origin:
Origin
United States
México
Germany
Canada
Technology
Very Good
Regular
Very Good
Good
Flexibility
Good
Regular
Very Good
Good
Service
Regular
Regular
Good
Good
Price
Regular
Good
Bad
Regular
The company only attends one packaging machinery trade show—Expopack in México.
They receive trade magazines such as the one published by the Mexican National Food
Industry Chamber (CANAINCA).
104
Lol Tun is interested in receiving information on packaging machinery that meets their
production needs for a low-production volume. They will only consider those options that
are the most affordable.
The company is also interested in used or remanufactured equipment.
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
E-mail:
Productos Lol Tun, S.A. de C.V.
Ing. Felipe Arvizu G.
Production Director
Ricardo Flores Magón N° 486 D
Col. Santa María la Rivera
06400, México D.F.
(52) 5541-7740
(52) 5541-2421
ploltun@df1.telmex.net.mx
105
Ricolino, S.A. de C.V.
Industry:
Sub Industry:
Location:
Size: (sales)
Specific Business
Opportunities:
Food
Confectionery, candy, chocolates, chewing gum
and cajetas (burnt condensed goat’s milk)
México City (D.F.)
N/A
US$2.6 million
Wrapping machines, Bagging machines, Net
weighing machines, Carton form fill and seal
machines, Labeling, Sealing, Coding, and
Thermoforming machines, among others
NEW PLANT
Ricolino is one of the largest candy and chocolate manufacturers in México. The company
belongs to the large publicly traded, Mexican group called Grupo Industrial Bimbo, which
is the largest manufacturer of industrialized bread products in México.
Bimbo took a big step by opening the first Ricolino candy and chocolate plant in 1971. At
that time it was called Barcel, a brand under which the lollipop "Paleta Payaso" appeared
on the market in 1974. Currently Ricolino is one of the largest and better-recognized candy
companies in México, while Barcel is the second largest manufacturer and distributor of
snacks.
At present, Ricolino has 7 plants and 2 distribution centers, which are:
Plant
Productos Confitados
Ricolino
Ricolino de Occidente
Park Lane Viena
Park Lane Ostrava
Productos de Leche Coronado
Productos de Leche Coronado
Distribution Center
Distribution Center
Location
Cholula, Puebla
México, D.F.
San Luis Potosí, S.L.P.
Vienna, Austria
Ostrava, Czeck Rep.
San Luis Potosí, S.L.P.
Matehuala, S.L.P.
US
Germany
This company exports around 15%–20% of its production to the United States, Canada,
South and Central America, and the Caribbean. The company also covers the European
market through its plants in the Czech Republic and Vienna.
106
Product
Lollypop
Rice flakes covered with chocolate
Jelly covered with chocolate
Chewing Gums
Gummy bears
Blackberry
Rolled candy
Cajetas (burnt condensed goat’s milk)
Brand
Paleta Payaso
Kranki
Bubulubu
Rainbows
Panditas
Moritas
Pequitas
Coronado
Package
Aluminized bag
Aluminized bag
Aluminized bag
Waxed paper
Plastic bag
Plastic bag
Polyethylene tubes
Glass and PET bottles as well as
PVC containers
Current Machinery
Used
Wrapping machines
Wrapping machines
Brand
Units
Origin
FMC
Record /
Eurosigma
Kelpet
Tecmac
Heyssen
Hishida
Woodman
Aquarius
Multipond
Commander
Markem
Domino
Pearson
10
6
Wrapping machines
Wrapping machines
Bagging machines
Bagging machines
Bagging machines
Bagging machines
Bagging machines
Net weighing machines
Labeling machines
Coding machines
Carton form, fill, and
seal machine
Thermoforming, gluing Little David
and carton form, fill, and
seal line
Manual Sealing
Maquitec
machines
Palletizing machines
IPM
Specification
US
Italy
Average
Age
20–25
8–10
2
10
12
12
60
6
6
60
76
10
1
México
México
US
US
US
Holland
Germany
US
US
US
US
1
8
8–10
8–10
8–10
3
4
8–10
4–10
2–4
2–4
80%
80%
80%
80%
80%
90%
90%
80%
90%
85%
90%
12
US
N/A
80%
12
México
8–10
80%
3
US/México
8–10
80%
80%
90%
All the manufacturing facilities of Ricolino operate 12 hours a day, and their machinery is
working at 80%-90% capacity. Most of their installed machinery is from the United States
as they’ve had good results with US equipment in the past. The remainder is from Europe.
They seek out suppliers at the Expopack in México and Pack Expo in Chicago.
107
According to company officials, European packaging machinery is becoming more popular
in México as most manufacturers have established service offices and have spare parts
available in the country.
Ricolino’s last purchase of packaging machinery took place in 2001, when they spent US
$600,000 for the acquisition of 2 semiautomatic wrapping machines from Keplet, a
Mexican company. Two other acquisitions were made in 1999, when the company invested
US $2.8 million for 12 automatic bagging machines from Europe.
Machinery
2 Wrapping machines
6 Bagging machine
6 Bagging machine
Brand
Kelpet
Aquarium
Multipond
Country Cost (Approximately)
México
US $600,000
Holland
US $1.1 million
Germany US $1.7 million
At present, Grupo Industial Bimbo and Ricolino are building a new facility in Guanajuato,
expected completion during the first quarter of 2003. This project aims to increase
Ricolino’s participation in the chewing gum and other candy markets in México and the
Caribbean. The company plans to analyze proposals for process and packaging machinery
during the first quarter of 2002 and to install the equipment in the last quarter of 2002.
Ricolino has developed a budget of US $12 million to build and equip the entire facility;
this company estimates that almost 20% of this budget will be designated to purchase new
Machinery
Origin Motive of Purchase Estimated Budget
Wrapping Machines.
Bagging Machines
machines
Labeling equipment
T.B.D
New Plant
US $2.6 million
Sealing machines
Coding machines
Thermoforming machines
Sealing machines (for aluminum
foil)
Ricolino buys most of its equipment directly from the manufacturers. This company
purchases spare parts from some distributors or representatives established in México as
well as from a subsidiary company called Interrefacciones that is part of the same industrial
group and provides maintenance for all of the group’s machinery.
108
Ricolino also has its own specialized engineering staff in charge of the regular maintenance
for each plant. When Ricolino purchases a new machine, they ask the supplier to train
Ricolino’s and Interrefacciones’ technicians.
If a major equipment problem occurs in one plant, the company asks the manufacturer to
send specialized technicians to repair the machine. If the problem is repetitive and affects
productivity, the company begins a replacement project.
For the new plant in Guanajuato, Ricolino will request quotes from existing and a few new
potential suppliers. Efficiency, price, delivery schedules, and payment terms will be key to
the selection of suppliers. The final decision will be made at the corporate offices of Grupo
Industrial Bimbo, following the recommendations of Ricolino’s engineering department.
Companies interested in supplying packaging machinery for this large project should
contact Ricolino first. Some companies may be asked to provide demonstrations to both
Ricolino and Bimbo.
Usually Ricolino purchases new equipment with its own resources. For the new plant in
Guanajuato, they will use a combination of credit and funds from Grupo Industrial Bimbo
and financing offered by the manufacturers.
1.
2.
3.
4.
5.
Efficiency.
Technical support.
Capacity to scale production.
Cost.
Speed and volume of units packaged per hour.
Equipment Suppliers
Ricolino does not have any special agreements with any packaging machinery
manufacturesr. They indicated that they are satisfied with Aquarium (Holland) and
Woodman (US) for vertical bagging machines, due to their speed, solid construction,
precision, and ease of use. Other preferences for machinery include FMC (US) and Record/
Eurosigma (Italy) for horizontal wrapping machines; they consider these machines to be
flexible and to provide excellent service from the México representative.
Ricolino’s evaluation of packing machinery according to its country of origin is as follows:
Origin
United States
Spain
Germany
Holland
Italy
Technology
Very Good
Good
Very Good
Very Good
Good
Flexibility
Very Good
Good
Very Good
Very Good
Good
109
Service
Very Good
Regular
Very Good
Very Good
Good
Price
Regular
Good
Regular
Regular
Regular
Ricolino has a special interest in receiving information on manufacturers and advanced
technologies for the chewing gum industry and any other information on equipment made
especially for confectionery items, candy, chocolates, chewing gum, and cajetas (burnt
condensed goat’s milk).
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
E-mail:
Ricolino, S.A. de C.V.
Ing. Ismael Peña Sánchez
Calle 4 N° 320 A
Col. Arenal
02980, México D.F.
(52) 5328-0400
(52) 5328-0403
alejuga@yahoo.com
110
Sabormex, S.A. de C.V.
Industry:
Sub Industry:
Location:
Size: (sales)
Specific Business
Opportunities:
Food, personal care, beverages
Canned beans, coffee, pasta, sports drinks,
powdered drink mix flavors, toasted
tortillas, shampoo
Puebla, Puebla
US $102 million
Various machines for a complete plant
modernization.
Sabormex is a privately held Mexican company established in 1964. At present they
operate one plant located in Puebla, and their headquarters and distribution center is located
in México City. The company makes seven different products in over 35 different versions.
Their brands include La Sierra for canned beans, instant soups, and chilaquiles (tortillas
soaked in hot pepper sauce); Legal for ground and soluble coffees; Buendia and Perk for
refreshment- mix powders; Enerplex for Isotonic refreshments; and Magnaflex for
shampoos. Sabormex exports primarily to the United States but also to El Salvador,
Guatemala, Venezuela, Colombia, Panama, United Kingdom, Spain, and Germany.
La Costeña acquired the company in late 2000 and the group has decided to upgrade the
existing Sabormex plant to increase production and the company’s market share.
B) Main Products Produced and How They Are Packaged:
Product
Beans
Coffee
Sports beverage
Flavored powders
Shampoo
Soup
Chilaquiles
Brand
La Sierra
Legal
Enerplex
Buendia, Perk
Magnaflex
La Sierra
La Sierra
Package
Cans
Plastic bags, cans and glass flask
PET bottle, glass bottle
Metallic bags
PET bottle
Styrofoam cups, metallic bags
Plastic bags and cardboard box
111
Units
Origin
Tray erecting and filling machines /
BREDA
Tray stretch banding machine / PolipackARPAC, ADV (Douglas)
Bag packing machinery / Triangle,
Envaflex, Empacomatic, ENZO,
SERPAC
Can sealing machines / Angelus
Can filling machines / ELMAR
Tray wrapping machines / APV–Polipack
Pregummed label applicators / Newway
Pallet dismantling machines / Crown
Basket packing machines/STOCK
Cup filling machines / FEMC, Allsill
Conveying / SERV and some made by
their own
Bean cleaners / Cnippen–Mercator
Bean washing and rinsing machines /
Olney
Batch sterilizing machines / Jersa
Batch sterilizing machines / STOCK
Carton fill and seal machines /
Econoconp New Way
Triblock (rinsing, filling, capping)
machine / BC
Screw capping machines
Pallet dismantling and securing machines
Pallet wrappers (Lantech)
Labeling / TAXTA
Carton form, fill, & seal machine/ Samvi
Labeling / B&H
Pallet wrappers / Lantech
Coding machines/ Marsh
Coding machines / Videojet
Tape dispensing machines / Little David
Labeling machine/ AXXON
Coffee roasting machine / Probat
3
Holland
3
US
5
80%
35
8
80%
5
5
6
6
2
3
1
32
US / México
Argentina
Spain
US
US
US
US
US
Germany
US
México
12
12
3
8
10
3
2
5
80%
80%
80%
80%
80%
80%
80%
80%
3
2
US
US
10
7
80%
80%
2
8
2
México
Germany
US
5
5
15
80%
80%
10%
1
Italy
6 months
100%
4
2
4
1
1
1
3
1
1
5
1
1
US
US
US
Spain
Spain
US
US
10
7
1
6 months
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
90%
100%
70%
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
112
US
N/A
N/A
Age
5
80%
Sabormex’s last purchase took place in October 2001. The following list shows their most
recent acquisitions. They spent $1.1 million in 2001 and $1 million in 1999–2000.
Machinery
Triblock machine (rinsing, filling, & capping)
Labeling machine
Carton form, fill, and seal machine
Labeling machine
Pallet Wrappers
Encintadora
Labeling machine
Brand
Country
BC
Italy
TAXTA
Spain
Samovi
Spain
B&H
US
Lantech
Little David
US
AXXON
Sabormex recently approved the purchase of US$10 million in new machinery, mostly in
packaging and palletizing machinery but also automation and general equipment to expand
their canned bean line, La Sierra, which is facing growing demand. Among the most
immediate purchases, Sabormex is considering the following:
Machinery
Units
Origin
Bag form, fill, and seal machines.
Pneumatic transporter for fats
Palletizing unit with coder and code
reader SAP R3 / STORK SCI
Continuous sterilizer
Peripherals: Conveyance cable,
palletize-depalletize, storing tables/
STORK
Waste compactor
Coffee bag pouch, 200 & 400 gm
Flask cleaner
Capping machines for coffee flasks
of 50, 100, and 200 gm
Can cleaning machines
Ink coding machines
Plastic bottle orienting machine
Detectors for bottles incorrectly
capped or with low content.
Hot melt system / Nortson
Shampoo pouch, 900, 500, 250 ml
3
1
1
1
Estimated Budget
Motive of
purchase
TBD
Automation
US $700,000
TBD
Automation
US $900,000
TBD
Material transport US $150,000
Holland
Automation
US $2,300,000
1
1
Holland
Holland
Automation
Automation
US $2,600,000
US $800,000
1
1
1
1
TBD
TBD
TBD
TBD
Automation
Automation
Automation
Automation
US $20,000
US $150,000
US $50,000
US $55,000
1
1
1
1
TBD
TBD
TBD
TBD
Automation
Automation
Automation
Automation
US $17,000
US $10,000
US $65,000
US $25,000
1
1
US
TBD
Automation
Automation
US $9,000
US $180,000
113
Sabormex takes into consideration two principal factors when developing their purchasing
budgets for new equipment. The company is interested in improving and constantly
updating their manufacturing process to remain a world-class manufacturer in its field. The
company also constantly faces the need to expand their manufacturing capacity to satisfy
the growing demand for its products.
The company produces a list of the required equipment and attends trade shows to evaluate
which particular machines and suppliers can satisfy their needs. In most cases they ask the
supplier to arrange for a visit to see the equipment in operation at some facility. They
regularly attend Expopack in México City, Las Vegas, and Chicago.
Most of their closing machines are manufactured by Angelus. Sabormex is very satisfied
with the performance and service they have received from this company and will continue
purchasing this brand for their closing needs.
When selecting equipment, they also consider the equipment recommendations they receive
from their sister companies like La Costeña.
The company gives the supplier a down payment and sets a payment schedule during the
time before the delivery process. A final payment is made once the machine is operating at
their facility. During the startup process for new machinery, the company expects the
supplier to provide training to their maintenance staff. The training includes indications as
to the correct operation of the machine and basic trouble shooting as well as how to replace
the most commonly used spare parts. All major maintenance or service should be
performed by the manufacturer.
1.
2.
3.
4.
5.
Quality of the machinery.
Recommendations from other users of the proposed machinery.
Technical support.
Capacity and technology.
Price.
Equipment Suppliers
When selecting new equipment Sabormex considers both North American and European
suppliers. The company does not purchase Asian machinery as it considers that the
materials used by these suppliers are of lesser quality than those of other machinery
suppliers.
The company said they are very satisfied with most of their current equipment.
114
Sabormex´s evaluation of packing machinery according to its country of origin:
Origin
United States
Spain
Germany
Italy
Technology
Very Good
Very Good
Very Good
Very Good
Flexibility
Good
Good
Very Good
Good
Service
Very Good
Very Good
Good
Good
Price
Good
Good
Very Good
Good
The trade shows they attend are primarily PMMI’s Expopack (México, Las Vegas, and
Chicago). The company receives numerous equipment brochures from various suppliers
and several trade publications that present information on new machinery. They indicate
that they ignore these publications.
Sabormex is interested in receiving information on packaging machinery for powders,
drinks, foods, and cosmetics.
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
Sabormex, S.A. de C.V.
Ing. Javier Segura Orive
Director of Manufacturing and Engineering
Calz. La Viga #1214
Col. Apatlaco
11570, México D.F.
(5255) 5448-2142
(5255) 5448-2100
115
Sigma Alimentos, S.A. de C.V.
Industry:
Sub Industry:
Location:
Size: (sales)
Specific Business
Opportunities:
Food
Processed meats, yogurt,
cheese, and prepared meals
Monterrey, N.L.
Over US$1 million
Sigma is the market leader in México in the production and distribution of processed meats,
pre-cooked meals, and dairy products. Sigma Alimentos is a subsidiary of one of México’s
largest industrial groups called Grupo Alfa. The company employs about 12,000 people and
produced over 312,000 metric tons of processed food during year 2000.
Sigma Alimentos is divided into different companies operating in the processed foods
sector. The most important division is cold meats where they have a 60% market share in
México. They have a dairy products division, which has a 20% share of the local market,
followed by a pre-cooked meals company with a 10% share.
The company has 10 plants for processed foods—7 for cold meats, 2 for dairy products,
and 1 for pre-cooked meals. The company has 63 distribution centers throughout México.
Sigma Alimentos exports meat products into the United States and other countries,
including El Salvador and Guatemala. The company also has an exclusive distribution
agreement to sell Oscar Mayer’s products in México.
Product
Brand
Sausages, hams, turkey ham, bacon, FUD
salami, cheese- or ketchup-stuffed
franks, clown- face shaped bologna,
mini hotdogs
Prosciutto, Italian salami, pepper
San Rafael
salami, Canadian loin, German leg
of ham, spiced sausages (Chorizo),
Frankfurt sausage, turkey products
Salami, ham, spiced sausages
Chimex
(Chorizo), sausages
Salami, ham, bacon, spiced sausages Viva
(Chorizo), sausages
116
Package
Vacuumed plastic, shrink
thermoformed plastic, tripper
tie
tie.
tie.
tie.
Barcelona ham
Iberomex
tie.
Hams
San Antonio
thermoformed plastic
Sausages, bacon, hams (exclusive
Oscar Mayer Vacuumed plastic, shrink
distribution in México)
tie.
Hams, sausages, aged meats,
Tangamanga Vacuumed plastic, shrink
salamis, other specialities
tie.
Yogurt
Yoplat, Yopli, Polyethylene containers, Tetra
Yopsi, Yop,
brick.
Safari
Cheese
Chalet, La
Shrink wrap
Villita
Mutton ( Barbacoa), spiced pork
El Cazo
Plastic bags
(Pibil), chicken in mole sauce, other Mexicano
typical treats such as Flautas,
tamales, Dobladitas, etc.
Chicken nuggets, fish fingers,
Sugerencias
Plastic bags, carton boxes
French fries, pizzas
del Chef
Fried chicken, seasoned fried
Banquet,
Plastic bags, trays, carton
chicken, chicken wings, BBQ
Healthy Choice boxes
chicken breasts, chicken supremes,
chicken and broccoli fettuccini,
lasagna, mozzarella nuggets, and
coconut, chocolate, banana, and
lemon frozen pies
Chicken nuggets, cheeseburger,
Kid Cuisine
Plastic trays, carton boxes
pizza slices with vegetables, potatoes
and dessert, as well as a dish for
breakfast or lunch including waffle
bars, syrup, potatoes, and dessert
This profile, obtained from the cold meats division, relates to its 7 plants and only
represents the largest machinery.
Machinery Type
Thermoform packaging/ Horizontal/ Tiromat
Bag, form, fill, and seal/ Koch
Coding machines/ Video Jet
117
Units
Origin
15
15
15
20
Germany
Germany
Germany
US
Age
5
95%
5
95%
5
85%
2
90%
This division’s last purchase of packing machinery took place in December 2001, when
they invested US$1.4 million dollars to purchase two horizontal thermoform packing
machines from the German supplier Tiromat.
Machinery
Thermoform packaging/ Horizontal
Brand
Tiromat
Country
Germany
Cost
US $1.4 million
Sigma Alimentos purchases equipment on a “manufacturing project” basis. Most purchases
are related to production expansion in their various lines as a result of growing demand for
their products.
The cold meats division is developing a project to expand production in all of their
manufacturing plants. This will entail the purchase of at least one new packaging line for
each facility. It is likely that the equipment will be a combination of Tiromat and Multivac.
They have not defined potential suppliers for other related equipment.
The company is also planning the launch of a new product for which they will need
additional packaging equipment from Case Ready.
The company also has important purchasing plans for their dairy products division, which
will also initiate production expansion program over the next three years. The programs
also call for the renovation of existing equipment and automation of some processes.
118
The processed foods division has also defined some equipment purchasing needs:
Machinery
Units
Origin
Motive of
purchase
Processed Meats
One new packaging line Case Ready
1
T.B.D. New product
with modified atmosphere (number
tentative
line
can grow depending on product
ROSS,
demand)
Germany
Dairy Products
Wrapping machine for multi2
T.B.D.
Expansion
packaging with thermoformed
polyethylene film
Stretch label / Shrink label for
2
T.B.D.
Expansion
polyethylene containers
Thermoform seal and plastic tray
1
T.B.D.
Expansion
form for cheese products
Cheese filling
1
T.B.D.
Expansion
Automatic palletize
1
T.B.D.
Expansion
Cooling tunnel lines
2
T.B.D.
Expansion
Prepared Meals
1
T.B.D.
Expansion
Vacuumed packaging system/
1 Germany Expansion
Tiromat
Vacuumed packaging system/
1 Germany Expansion
Multivac
Product form
1
T.B.D.
Expansion
Pouch packaging/ Jaguar
1
USA
Expansion
Filling dry/ Solid products
1
T.B.D.
Expansion
Sealing machines
2
T.B.D.
Expansion
Coding machines
2
T.B.D.
Expansion
Estimated Budget
US $350,000
T.B.D.
T.B.D.
T.B.D.
T.B.D.
T.B.D.
T.B.D.
T.B.D.
T.B.D.
T.B.D.
T.B.D.
T.B.D.
T.B.D.
T.B.D.
T.B.D.
Sigma indicates they have a well-defined purchasing process. The company evaluates
technical proposals from various potential suppliers, including proposed technology and
servicing plan. Once the finalists are selected, the company purchases through a tender
process. The company selects the supplier that presented the best technical proposal and
offered better pricing.
Sigma Alimentos requires that its investment budgets be approved by its parent company,
Grupo Alfa. The parent company assigns internal resources or arranges for financing. The
company also considers vendor- financing alternatives.
119
1.
2.
3.
4.
5.
Quality.
Cost.
Service.
Brand recognition.
Experience in the food business.
Equipment Suppliers
Sigma Alimentos has a strong preference for vacuum-packing equipment from two
suppliers, Multivac and Tiromat. The company has a long term working relationship with
both suppliers and is satisfied with the results including the service they are receiving in
México, where these companies have dedicated technical staff to assist Sigma.
As for other packaging machinery, the company does not have a special preference for any
supplier as long as the proposed equipment meets their specific manufacturing
requirements. The company is open to evaluating new equipment technologies for their
particular manufacturing and packing applications.
The company evaluated suppliers by country of origin as follows:
Origin
United States
Germany
Italy
Japan
Technology
Very Good
Very Good
Good
Very Good
Flexibility
Good
Good
Good
Regular
Service
Very Good
Very Good
Good
Regular
Price
Very Good
Good
Good
Good
One of the most important equipment purchases Sigma is considering is for Case Ready
with modified atmosphere packing line. The company has gathered information from
potential suppliers, but the tender process is expected in March, once their technical
department indicates which technical proposals can satisfy their needs.
The company is soliciting information on equipment for their dairy and processed foods
divisions. The company’s objective is to make its production more efficient.
120
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
E-mail:
Web page:
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
E-mail:
Web page:
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
E-mail:
Web page:
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
E-mail:
Web page:
Mr. Santiago Sanpayo
Purchasing Manager for Imported Equipment and Supplies
Av. Vasconcelos #203 Ote.
Col. Residencial San Agustin
66260, Garza García, N.L., México
(52-81) 8152-5100
(52-81) 8152-5174
ssanpayo@sigma-alimentos.com
www.sigma-alimentos.com
Mr. Leonel Guajardo
Packaging Superintendent for the Processed Meat Products Div.
Av. J. Cantú #1320
Col. Buenos Aires
64800, Monterrey, N.L., México
(52-81) 8748-1000
(52-81) 8152-5126
lguajard@sigma-alimentos.com
Sigma Alimentos Lácteos, S.A. de C.V.
Mr. Daniel Chávez
Packaging Superintendent of Dairy Products Div.
Av. Gómez Morín #1111
Col. Carrizalejo
66254, Garza García, N.L., México
(52-81) 8748-9000
(52-81) 8748-9075
dchavez@sigma-alimentos.com
Sigma Alimentos Congelados, S.A. de C.V.
Mr. Carlos Merino
General Manager for the Prepared Meals Division
Ave. Industrial Alimenticia # 760
Col. Parque Industrial
67735, Linares, N.L., México
(52-821) 2126-099
(52-821) 2125-625
cmerino@sigma-alimentos.com
121
Sky Chefs, S.A. de C.V.
Industry:
Sub Industry:
Location:
Size: (sales)
Purchasing
Potential:
Specific Business
Opportunities:
Food
Food preparation for the airline
industry.
México City
US $2 million
US $80,000
Vacuum packaging machines and
LSG Sky Chefs is the world’s largest in- flight catering alliance with combined revenues of
US $3.5 billion. This company produces 427 million meals a year and serves over 260
airline customers from over 200 units worldwide.
LSG Sky Chefs in México is a subsidiary of LSG International, meals for the air line
industry in México. LSG Sky Chefs operates 8 industrial kitchens in México’s largest
airports.
All of this company’s meals are sold locally to the airline industry.
Product
Breakfasts
Lunches
Dinners
Package
Aluminum tray (Vitafilm)/Thermo shrink plastic
Aluminum tray (Vitafilm)/ Thermo shrink plastic
Aluminum tray (Vitafilm)/ Thermo shrink plastic
Because of the nature of the company’s business in México, its packing needs are not very
sophisticated. The company also indicated that the nature of their business is changing and
now they face sudden unexpected demand that they cannot meet. Because of this, they are
interested in developing a high vacuum packing process to give their products a longer
shelf life. This project is important for them, as they have lost market share to other local
suppliers with a larger production capacity.
Brand
Tableware washers
Hobart
Thermoform wrapping machines Triangle
Units
10
20
122
US
6 years
90%
US
6 years
90%
The last purchase of machinery by this company took place in 1999, when they invested
US$600,000 on a dishwashing system by US supplier Hobbart. In the same year they
purchased 4 thermo shrink-wrapping machines they purchased from US supplier Try
Angle.
Machinery
Tableware washers
Thermoform wrapping machines
Brand
Hobart
Try Angle
Country
US
US
US $600,000
US $18,000
LSG Sky Chefs in México is interested in developing a process that will produce, pack, and
store its food products to increase shelf life and be able to meet unexpected demand. The
company has a US$80,000 budget to purchase two volumetric filling machines. They are
interested in automating part of the process for placing food on the trays, a process that is
now done manually.
They are also interested in purchasing a high vacuum packing system as this will help
increase the shelf life of their prepared foods.
Machinery
Vacuum packaging machines
Units
1
2
T.B.D.
T.B.D.
New project
New project
Estimated
Budget
US $10,000
US $70,000
The recent reduction in air travel may put this project on hold for a few months.
The company purchases its equipment from the manufacturers but expects the suppliers to
be able to offer maintenance and service locally.
LSG Sky Chefs defines its equipment purchasing needs in México and selects potential
suppliers. Once a supplier is selected the information is sent to their corporate offices for
the purchase to be approved.
The company requests that the suppliers provide 90 days credit for small purchases. For
purchases in excess of US$200,000, they apply for a bank loan from a local institution like
Bancomer or Banamex.
123
1.
2.
3.
4.
5.
6.
Need satisfaction.
Ease of installation.
Ease of operation.
Price.
Brand’s reputation.
Technical support and spare part availability in México.
Equipment Suppliers
The company has almost no packaging machinery. Their most important equipment is a
dishwashing machine, for which they prefer the Hobart brand, who offers reliable product
service in México.
LSG Sky Chefs mentioned that their perception is that European packaging machinery is of
a higher quality than other suppliers, but that prices for the equipment are high.
LSG Sky Chef attends PackExpo in Chicago and ExpoPack in México City. They also
attend food processing trade shows in Germany.
The company receives trade publications for the food industry and noted that they have
PMMI’s directory on CD ROM.
LSG Sky Chefs is interested in receiving information on potential suppliers for high
vacuum packing equipment as well as volumetric filling machines for solid foods and
filling machines for sauces and purees.
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
E-mail:
Web page:
LSG Sky Chefs, S.A. de C.V.
Ing. Víctor Burgoa
Customer Service Team
Francisco Sarabia S/N
Aeropuerto Internacional Benito Juárez
15590, México D.F.
(5255) 5786-0116
(5255) 5785-6414
vburgoa@skychefs.com.mx
www.skychefs.com.mx
124
Unifoods, S.A. de C.V.
Industry:
Sub Industry:
Location:
Size: (sales)
Purchasing
Potential:
Specific Business
Opportunities:
Food and Beverages
Dairy products, cheeses, fruit
juices.
México, D.F.
N/A
US $400,000
machines.
This is a Mexican private company that has been in business for over 40 years. The
company changed its name from PROLESA to Unifoods three years ago. The company
manufactures dairy products including cheese, yogurts, and flavored milk drinks. The
company also has a line of orange juice.
Unifoods sells its products under the Chipilo and Bonafina names, which are very well
positioned in the Mexican market. The company sells all its production in the Mexican
market and imports powdered milk from Switzerland, which is one of their basic raw
materials.
Unifoods México has 200 employees and operates two manufacturing facilities in the
México City area.
As indicated the company sells dairy products under the Chipilo brand and orange juice
under the Bonafina brand. The products they produce are the following:
Product
Orange juice
Cheese
Yogurts
Milk
Cream
Brand
Bonafina
Chipilo
Chipilo
Chipilo
Chipilo
Package
Plastic bottle, Purepack carton
Plastic wrapping
Plastic bottles
Purepack (carton)
Glass bottles
125
Units
Origin
3
2
US
-
3
US
12
100%
5
5
2
3
2
US
US
US
US
12
10
5
5
2
100%
100%
100%
100%
100%
Packaging line for juices/ Purepack
Packaging line for yogurts / Cherry
Burel
Bottle filling, capping, and sealing /
Hambar
Bottling line/ Prepack
Labeling machines/ B&H
Coding machines/ Lins
Coding machines / Video Jet
Age
10
100%
10
90%
Unifoods invested US$100,000 dollars on packaging machinery over the past three years.
Their last purchase took place in January 1999 when they purchased two palletizing
machines from a US manufacturer.
The company has developed a US$900,000 budget to purchase packaging machinery over
the next three years. The company is still in the process of defining the equipment they will
need. It has already been decided that they will purchase the following equipment:
Machinery
Bottling line for carton containers
Bottling line for plastics
Origin
Motive of purchase
Most likely US Increase production
-
The purchasing process for new machinery begins with an evaluation of new equipment
needs that is developed by the engineering department. These requirements are forwarded
to the department’s technical area that analyzes equipment options.
The company usually pays for equipment purchases by obtaining credit though banks. The
payment schedule is negotiated on a case by case basis with the supplier.
126
The company ranked the factors that affect their purchasing decisions as follows:
1.
2.
3.
4.
Service.
Technology.
Equipment quality.
Price.
Equipment Suppliers
The company indicated they have usually worked with US suppliers as this equipment has
satisfied their production requirements. The company is open to evaluating new suppliers
from any region as long as the equipment meets their specific needs.
The company evaluates packaging machinery based on country of origin as follows:
Origin
United States
Technology
Good
Flexibility
Good
Service
Good
Price
Good
The representatives from this company attend Expopack every year. The company receives
the local trade publication El Reportero Industrial and also information from potential
suppliers.
The company is interested in receiving information from potential suppliers of bottling
lines in general as well as information on packaging machinery to package cheese.
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
Unifoods, S.A. de C.V.
Mr. Fernando Guzmán García
Coordinator for Engineering Projects
Poniente 122 #497
Col. Industrial Vallejo
(52-55) 5333-1200 ext. 2134
(52-55) 5333-1200 ext. 2165
127
UNILEVER Margarinas De México, S.A. de C.V.
Industry:
Sub Industry:
Location:
Size: (sales)
Specific Business
Opportunities:
Food
Margarines, sauces, and dressings
Tultitlan, Estado de México
N/A
US $300,000
Case packers
Unilever–Bestfoods de México, S.A. de C.V. started its operations in México under the
name of Anderson Clayton & Co. in the 1950s. Unilever purchased this company in 1986.
At present, Unilever de México comprises the following divisions: foods, personal care, ice
creams, and products for the food services industry.
Unilever is one of the most important suppliers of food products in México. They have a
strong understanding of the local market and their product offerings react to continuous
changes in demand.
Their manufacturing plant in Tultitlan in the state of México was opened in 1974 and
currently has 146,000 square meters. This facility houses the manufacture of cooking oils,
margarine, and lard. At this site, they also manufacture a line of food products under the
Clemente Jacques brand.
This plant produces 140,000 tons of cooking oil per year.
Product
Cooking oil
Lard
Margarine
Ketchup
Vinegar
Brand
Capullo
Inca
Primavera
Iberia
Clemente Jacques
Clemente Jacques
Package
Plastic bottle
Plastic bag
PVC contained
Waxed paper and carton box
Glass bottle, Plastic bottle (squeezable)
Plastic bottle
128
The machinery base installed at the Tultitlan facility includes the following:
Filling and sealing for plastic
container of margarine
Fill and cap machine for cooking oil
Labeling machine
Filling machine for semiviscous
Capping machine
Cooling machine
Labeling machine
Units
Brand
Origin
1
Autoprod
US
2
2
1
1
1
1
Ausere
Krones
Bosch
Ghery
FMC
Krones
Spain
Germany
Germany
Italy
Italy
Germany
Age
2
100%
10
6
8
8
8
8
80%
80%
80%
70%
100%
80%
D) Future Packaging Machinery Ordering Plans, 2002–2003
For year 2002 the company has plans to purchase two case packers from a Dutch supplier.
The estimated investment for this purchase is US$300,000. This company purchases an
average of US$1 million in machinery per year.
E) Purchasing Policies and Financial Arrangements
The local operation defines its equipment needs and consults on potential equipment and
suppliers with a corporate department called Global Technology Center, which operates
two centers for Unilever, one in England and the other in the United States. These centers
are constantly evaluating suppliers and equipment they could recommend to their
manufacturing facilities worldwide.
Once recommendations are received from the Global Technology Centers, a final decision
is reached by the facility in México.
They mentioned that Unilever has a series of worldwide agreements with some suppliers
that help them receive better pricing for machine ry, spare parts, and service.
F) Factors That Influence Purchasing Decisions
1. Good previous working experience with Unilever.
2. Equipment quality.
G) Comments on Preferred Brands and Existing Business Arrangements with Packaging
Equipment Suppliers
The people from the Tultitlan facility mentioned that they have a preference for European
equipment, especially from Italy and Germany, finding it to be very sturdy and long lasting.
129
They particularly like the machinery from Bosch in Germany because of its precision and
ease of cleaning.
H) Trade Show Attendance / Trade publication Information:
The company attends international trade shows like Interpak in Germany and local shows,
including Expopack in México.
I) Specific Interests
The company is interested in receiving information from potential suppliers that are already
approved by their headquarters in Holland. They are especially interested in receiving
information on case packers.
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
E-mail:
Web page:
Unilever de México, S.A. de C.V.
Ing. Donaciano Gonzalez
Plant Manager
Av. Tepalcapa # 2
Cuautitlan Izcali
Estado de México
(5255) 58 99 03 00 Ext. 1509
(5255) 58 99 05 15
donaciano.gonzalez@unilever.com
www.unilever.com.mx
130
IV.
4.1.
The Beverage Industry
Industry Overview
México is the largest consumer of refreshment beverages per capita in the world with an
estimated average annual consumption of 155 liters per capita. México consumes 43% of
all of Coca-Cola’s production in Latin America, followed by Brazil with 23%. Coca-Cola
bottlers, who estimate their share of the soft drink market at more than 50%, followed by
Pepsi with close to 30%, dominate the Mexican refreshment industry. Other important
refreshment bottlers in México include Cadbury, which produces the brand Peñafiel, Jugos
del Valle, which makes juice-based beverages, and Pascual Boing. Other important players
in this market are bottled water producers like Dano ne’s Bonafont, Nestlè’s Santa María,
Pepsi’s Electropura, and the recent entry in this niche of Coca-Cola with Ciel.
The beverages market has registered continuous growth since the 1995 economic recession,
and forecasts are positive for the next two years.
México’s refreshment industry continues the changeover from returnable to nonreturnable
containers. This switch requires bottlers to change their current machinery to new or
adapted machines. According to the National Association of Refreshments and Carbonated
Water Producers (ANPRAC), PET and plastics have surpassed glass containers. Currently,
65% of carbonated drinks are packaged in plastics. ANPRAC predicts that glass containers
will completely disappear from the Mexican carbonated drinks market before 2010.
ANPRAC states that, in México approximately US$1.6 billion is invested in bottling
equipment for refreshments, and the bottlers invest on average US$175 million in bottling
and packaging equipment per year.
The Mexican refreshments market has also seen important consolidation in the last few
years. One of the most traditional local soft drinks companies, Mundet, was recently
purchased by the giant FEMSA, the largest Coca-Cola bottler in the country. Mundet’s
assets were not included in the transaction. It is unknown if the brand was purchased to
finally be “put to rest,” or if FEMSA will generate competition between its apple soft drink
brands Manzana Lift and Mundet.
Beer
The second largest beverage market in México is beer. In financial terms, the Mexican beer
market reached US$4,120 million in 2000 and for 2001 it is expected to have grown by 4%.
For 2000, domestic sales of beer of Grupo Modelo accounted for US$2,159 million
representing a 54.2 percent of the total value, FEMSA's domestic sales accounted for
approximately US$1,961 million with a 44.7 share, while imported beers accounted for
US$30.2 million, which represents only 1.1%.
Measured in per capita consumption, the Mexican population (legal drinking age)
consumes 50 liters per year.
131
By 1985 a long process of consolidation in this industry concluded with the emergence of
two dominant companies: Grupo Modelo S.A. de C.V. and FEMSA Cerveza, which control
54.2% and 45.1% of the market respectively. Imported beers represent a small fraction of
this market with only a 0.7% share.
Grupo Modelo’s main brands are Corona, Modelo, Victoria, and Pacifico. Control of this
company has remained in local hands despite the growing importance of the AnheuserBush Companies, Inc., which by late 1998 owned a 50.2% stake in the company. AnheuserBush has indicated no interest in managing the company.
The Corona brand is the single most important brand in México accounting for 32.2% of
the domestic beer market in 1998, and representing 58.7% of total sales for Modelo. It is
important to note that Corona has surpassed Heineken as the number one imported beer in
the United States.
The other company, FEMSA, operates six different breweries in México, with the most
important being Cuauhtemoc in northern México and Moctezuma breweries in central and
southern México. FEMSA produces and distributes 15 different brands, the most important
of which are Tecate, Carta Blanca, Superior, Sol, and XX (Dos Equis). These five brands,
which are distributed nationally, accounted for approximately 97% of FEMSA’s domestic
shipments and 44% of the total domestic beer shipments during 1998. Tecate, Carta Blanca,
and Superior are the second, third, and fourth most popular brands in México respectively.
1999 represented a record volume year for the Mexican beer industry. Production reached
approximately 56 million hectoliters. This number represented a 5.9% increase in volume
over 1997. For the period 1988–1999, this industry has sustained an average compound
annual growth of 4.3% for domestic shipments and 4.9% for total shipments.
The most popular container in the Mexican beer market is the returnable bottle, which
accounted for approximately 67% of domestic beer shipments in 1999, excluding kegs.
Beer Shares by Presentation
Returnable.
Bottle
67%
Non
Returnable
Bottle
16%
Barrel
1%
Source: AMEE (Mexican Association of Packaging)
132
Can
16%
Experts in the sector estimate that the popularity of the returnable bottle is attributable to its
lower price to the consumer. While returnable bottles generally cost approximately twice as
much to produce as nonreturnable bottles, returnable bottles may be reused as many as 30
times before being recycled. Therefore, beer producers are able to charge lower prices for
beer in returnable bottles.
Other Beverages
In this group we include all other beverage products: water, juices, alcoholic beverages
(Tequila, brandy, rum, etc.), and still others. These subindustries combined are estimated to
represent over US$8.5 billion in sales per year.
México has over 150 Tequila manufacturers located in the state of Jalisco. Over the past 10
years, Tequila has evolved from being a local, low-quality liquor to an international and
well-recognized high-quality alcoholic beverage. This transition of the industry has resulted
in large investment flows destined to production and bottling equipment.
Another subindustry that has registered large growth over the past 10 years is the bottled
water industry. Ten years ago, it was difficult to obtain bottled water in the Mexican market
because most brands were imported and their prices were higher than refreshment prices. In
the last decade, over 100 brands of bottled water have appeared in the Mexican market.
Large companies such as Danone and Cadbury have also started to produce bottled water,
and their brands are well positioned in the Mexican market.
4.2.
The Mexican beverage sector is formed by 2,737 companies, which employ over 120,000
people. The breakdown by size is as follows:
Type
Employees
No. of Companies
%
MICRO
SMALL
MEDIUM
LARGE
Total
0 to 30
31 to 100
101 to 500
501+
2,297
183
164
93
2,737
84%
7%
6%
3%
100.00%
133
4.3.
Key Players
Top Beverage Producers in México
(Figures in millions of US dollars)
Company Name
Predominant
Business
Grupo Modelo
Beer
Femsa Cerveza
Beer
Coca-Cola FEMSA
Coca-Cola, water
Cervecería Cuauhtemoc Moctezuma Beer
Panamco México
Sodas
Pepsi–GEMEX
Pepsi Cola, water
Grupo Continental
Carbonated beverages
Embotelladora Argos
Jugos Del Valle
Juices
Casa Cuervo
Tequila
Grupo Embotelladora Unidas
Embotelladora La Favorita
Industrias Envasadoras de Queretaro Carbonated beverages
Embotelladora Del Valle de Anahuac Carbonated beverages
Sales
Fixed Assets
2000
2000
3,188
4,924
2,004
2,308
1,803
1,388
1,401
1,465
1,041
783
1,038
1,171
981
850
511
433
321
370
305
311
243
216
233
88
225
64
196
122
Source: Expansion Magazine–Top 500 Mexican Companies. Figures in dollars using exchange rate of 9.2 MX
pesos per US$1.0
4.4.
Eight beverage companies were interviewed for this report of which two have sales of over
US$1 billion, one has sales of US$700 million, three have revenues of between US$500
million and US$100 million, and one is a small company with revenues of US$ 15 million.
These eight companies have combined purchasing potential for packaging machinery for
2002 and 2003 of US$23 million.
Of the installed base of packaging machinery, the United States has the largest share with
37%, Italy has the second largest installed base with 31%, and Germany holds 9%.
Installed packaging machines have an average age of 9 years, and their average utilization
is 90%. Overall automation is very high in all companies except for the last part of the
packaging process, which is not highly automated in medium- and small-sized companies.
Beverage companies interviewed mentioned local service and quality of the equipment as
their most important purchasing decision factors. Previous experience with brand and brand
reputation were also important factors considered when selecting packaging machinery
suppliers.
134
Installed packaging machinery shares by Country
6%
5% 1%
5%
US
37%
15%
Italy
Germany
Sweden
Mexico
Spain
Other
31%
Source: HDC with data of Interviewed Companies.
The following list includes some of the packaging machinery planned for purchase in the
following months among the eight interviewed companies:
Machinery
Filling liquids/ Gasti
Ultra pasteurizing Tetra Laval
Filling liquids/ Tetra Brick
Thermo shrink sleeve machine
Cleaning machine
Filling machine
Capping machine
Labeling machine
Cartooning machine
Bottling Line for Water
PET recycling machine
Cartooning machine
Packing machine / Kisters
Packing machine for tetra wedge
Can filling line
Plastic bottle filling line
Coders / Domino
Filling, closing and packing system /Combiblock
Filling machine
Tray forming and packing
Coding machine
Palletiz machine
Pasteurizing machine
Box form and seal machines/ RA Pearson
Box form fill and seal machines for 12 pack presentations
Evaporating Unit
New lines for packaging cans
Filling machines for Glass.
Air cleaning machines.
Units
1
1
1
1
1
1
1
1
1
1
1
1
1
4
1
2
6
1
1
1
1
1
1
5
6
1
5
2
2
135
Company
Alpura
Alpura
Alpura
Bacardi
Bacardi
Bacardi
Bacardi
Bacardi
Bacardi
Derivados de Fruta
Derivados de Fruta
Derivados de Fruta
FRUGOSA
FRUGOSA
FRUGOSA
FRUGOSA
FRUGOSA
Jugos del Valle
Jugos del Valle
Jugos del Valle
Jugos del Valle
Jugos del Valle
Jugos del Valle
Grupo Modelo
Grupo Modelo
Parmalat de México
Parmalat de México
Pascual Boing
Pascual Boing
4.5.
Company Profiles
Alpura
Ganaderos Productores de Leche Pura, S.A. de C.V.
Industry:
Sub Industry:
Location:
Size: (sales)
Specific Business
Opportunities:
Beverages
Milk, dairy products, desserts,
juices, bottled water.
Cuautitlán, state of México
US$700 million
US$2.1 million
Filling machine for liquids,
Ultra pasteurizing system
This is a private Mexican company that was established in 1973. At present it is one of the
undisputed leaders in México’s milk and dairy products industries.
Alpura operates four facilities. Two process milk and dairy products, one processes fruit
juices, and the last is a plastic molding and injection facility where they produce containers
for their products.
Most of the company’s products are sold under the Alpura brand, and most of the
production is sold in the Mexican market. The company does export some fruit and dairy
products, but exports remain a marginal business for the company.
The company also sells some products under the Lacel and Fortileche brands.
Product
Ultra pasteurized milk
Pasteurized milk
Cream
Yogurt
Deserts
Powdered milk
Cheese
Package
Tetra brick
Tetrarex
Plastic cup and plastic container
Plastic cup and plastic container
Plastic cup
Tin containers
Flexible container
Flexible container
136
Units
Filling liquids/ Brick
Filling liquids/ Rex
Filling liquids/ Federal
Filling liquids/ Angelus
Labeling machine / CCL Label
Labeling machine / D&H
24
3
8
1
2
1
1
Origin
Age
Sweden
6
90%
Sweden
6
90%
Germany
10
70%
US
10
90%
US
12
75%
US
5
US
10
The company’s recent equipment purchasing budgets were US$1 million for 1998, US$1.2
million for 1999, and US$3 million for 2000. Their last purchase of packaging machinery
took place in September of 2001, when they purchased:
Machinery
Filling liquids/ Brick
Brand Country
Tetra Pack Sweden
The company’s future equipment purchasing budgets are estimated to be US$1 million for
2002, US$1 million for 2003, and US$1.5 million for 2004.
The company is considering the purchase of aseptic Tetra brick filling machines in addition
to the following equipment:
Machinery
Units
Origin
1
Germany
Ultra pasteurizing / Tetra Laval
1
Sweden
Filling liquids / Tetra Brick
1
Sweden
Motive of
purchase
Production
Expansion
Production
Expansion
Production
Expansion
Estimated
Budget
US$500,000
US$600,000
US$1 million
Alpura develops an annual budget for the purchase of new machinery, which is based on
forecasts of expected growth in the demand for their products and the additional capacity
that will be required to satisfy such demand. As the company tries to anticipate demand,
one of the important factors for selecting a supplier is machinery delivery times.
137
It is company policy to standardize their equipment to help simplify their operations, ensure
good spare part availability, and derive better service from their suppliers.
The company generally purchases equipment directly from manufacturers and only rarely
from local representatives.
Alpura requires new suppliers to have adequate technology, to manufacture their own
equipment, and to have the capacity to provide local technical support and assistance. It is
also important for the company to have a good reputation in the Mexican market.
The company purchases equipment with its own cash flow, rarely on credit.
The company has an existing agreement with Tetra Pack for the purchase of equipment and
packing materials.
1.
2.
3.
4.
5.
Knowledge and experience in their specific packaging applications.
Technical support.
Technology.
Equipment’s reliability.
Price.
Equipment Suppliers
Alpura prefers suppliers with whom they have worked in the past, as this advances their
objective of standardizing their equipment. Further, they have had good experience with
existing equipment, adequate spare part availability, and good local service.
New suppliers should have a recommendation from other beverage industry manufacturers
or from an expert in machinery for dairy products.
Company personnel have noted a growing trend for the use of plastic, PET, and polycarbonate in packaging dairy industry products and say that most of this packaging
equipment comes from Europe. They are interested in receiving information on North
American suppliers that can offer this type of packaging machines.
Alpura works closely with Tetra Pack and is satisfied with its technology, service, and
technical support. They also use Gasti equipment for its precision, construction, and
reliability but indicate that it is expensive and spare parts are difficult to obtain.
Origin
United States
Germany
Italy
Sweden
Technology
Bad
Good
Bad
Good
Flexibility
Bad
Bad
Bad
Not good
138
Service
Bad
Not good
Not good
Good
Price
Expensive
Expensive
Average
Average
The company’s internal staff provides maintenance to all their machines; this staff is
trained by the equipment supplier. If a machine requires major maintenance or repairs, they
contract the service with the equipment manufacturer.
Most spare parts are purchased from the equipment manufacturer or from spare part
manufacturers in the local market.
Alpura personnel attend packaging industry trade shows, including Expopack and Interpak.
The company subscribes to trade publications and receives information on equipment from
interested suppliers.
The company is interested in receiving information on packaging machinery for the dairy
industry.
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
E-mail:
Web page:
Ganaderos Productores de Leche Pura S.A. de C.V.
Carlos A. Acosta Ariza
Km. 37.4 Autopista México-Queretaro
Cuautitlan Izcalli
54730, México D.F.
(5255) 5899-2035
(5255) 5873-0083
cacosta@alpura.com
www.alpura.com
139
BACARDI y CIA., S.A. de C.V.
Industry:
Sub Industry:
Location:
Size: (sales)
Specific Business
Opportunities:
Beverages
Rum, Alcoholic Beverages
México City
US$N/A
US$3 million
Packaging machinery for a new line:
Labeling, plastic blowing, filling
liquids, and Capping machines.
A) Company Description:
Bacardi and Company was originally established in Cuba in 1862. During the 1930s the
company launched an international expansion, which included the opening of a bottling
facility in México City.
The existence of manufacturing assets outside of Cuba allowed the company to survive
after the communists seized its property in 1960. These assets included facilities in Puerto
Rico, México, and Brazil.
The company experienced tremendous growth during the 1970s and its success has
continued, being currently recognized as one of the world’s top 10 international brand
names.
In México, the company owns several distilleries and one bottling plant located in México
City, which is totally automated. The company also has its Mexican headquarters at this
facility. The company has 250 workers at their bottling plant and 150 at their headquarters.
Product
Rum
Tequila
Brand
Bacardi
Camino Real
Package
Glass bottles, plastic caps, labels.
Glass bottles, plastic caps, labels
and artisan Mexican hat and
serape
The company sells its rum and tequila products in glass bottles, which are labeled and
packed into carton boxes.
140
Automatic depalletizing
Automatic depalletizing
Rinsing machines:
Filling machine
Closing Machine (Caps)
Cold glue labeling machine
Labeling machines
Ink code printers
Ink jet printers
Wraparound case packing machine
Drop packing machine
Automatic palletizing
Cartoon coding machine
Brand
Units
Origin
Average
Age
A-B-C Packaging
Machine Corp
OCME
Procomac
Horix AB
KRONES, Inc
GAI
US Bottler
US Bottler
Horix
KRONES
Horix AB
Zalkin
Capen
Alkoa
Arol
KRONES
JB
GAI
Hoppmann
Videojet
Videojet
OCME
Akron
Meyer
OCME
Foxjet
Marsh
4
US
5
1
1
1
2
1
4
5
3
1
2
7
1
1
1
6
1
1
7
7
8
7
2
1
7
4
4
Italy
Italy
US/Italy
Germany
Italy
US
US
US/Italy
Germany
US/Italy
France
US
US
Italy
Germany
US
Italy
US
US
US
Italy
US
US
Italy
US
US
3
3
4
1
7
6
7
16
1
4
3
13
25
4
5
5
12
3
5
5
7
11
14
6
1
Bacardi’s packaging line operates with excellent efficiency. They operate a 600- meter-long
chain conveyor line and 90 packing machines.
In the period 2000–2001 Barcardi spent US$3.6 million on packaging machinery. Their last
major purchase took place in July 2000, when they acquired a depalletizing transporter
from Krones.
Machinery
Depalletize transporter
Brand Country
Krones Germany
141
Bacardi is in the process of expanding their rum-based “coolers” line called Breezers. For
this product they plan to install a new line, which they estimate will cost about US$3
million. The most important component in this line will be a thermo-shrink sleeve machine,
at an estimated cost of US$450,000, which they intend to purchase from a US supplier.
The rest of the budget will be used for the remainder of the line, which will incorporate a
cleaning machine and filling, capping, labeling, and carton form, fill, and seal machines.
Bacardi’s worldwide headquarters in Monte Carlo gets involved in equipment purchasing
decisions as they have some worldwide agreements with equipment suppliers, but the final
purchasing decision is reached in México.
The company is open to purchasing equipment from ne w suppliers but will compare the
proposed equipment with that of existing suppliers. The company evaluates new suppliers
by verifying their existing client base and their sales penetration into major manufacturers.
Once a purchasing decision has been reached, the Monte Carlo headquarters negotiates the
price and payment terms with the suppliers. The company usually gives a 60% down
payment on equipment, and final payment is made once the equipment is in operation at
their facility.
As for machinery from US or German suppliers, purchases are usually made directly from
the equipment manufacturer.
When the company purchases new equipment, the supplier is responsible for installing the
machine and providing training to Bacardi’s employees. The training process for Bacardi’s
technical staff usually lasts between one and two months. This staff will be responsible for
equipment maintenance and will also change some spare parts.
The company has had good results with custom manufacturing some spare parts in México.
This has given the company savings of up to 70% on some components.
1.
2.
3.
4.
5.
Quality of the equipment.
Technology.
Reliability.
Service and technical support.
Price.
142
Equipment Suppliers
Bacardi indicated a preference for European machinery suppliers for most of its processes,
as they believe that European equipment has better quality and superior technology.
The company indicated that some of their biggest problems include finding adequate
service for major maintenance and equipment repair. They also noted that the operation of
European equipment is difficult in México because of different equipment voltages;
problems include PLC, drives, and power sources.
They indicate that the major strength for US equipment is related to voltage, as their power
specifications are closer to the power supply available in México. México has 127 volts
±10 % and in the United States it is 110 volts ±10%.
Bacardi personnel attend the Expopac trade show in México every year and trade shows in
the United States, Germany, and Italy. They subscribe to trade publications like Packaging
World and Control Engineering; they also receive information from various equipment
manufacturers.
Bacardi is interested in receiving information in general on the production and packaging of
alcoholic beverages. The company has a special interest in a thermo-shrink labeling
machine.
Company Name:
Contact:
Position:
Contact:
Position:
Address:
Telephone:
Fax:
E-mail:
BACARDI Y CIA. S.A. DE C.V.
Ing. David Muñoz Alcantara
Engineering and maintenance Manager
Ing. Pablo Ismael Martinez
Packing maintenance Manager
Autopista Mex-Qro # 4431
Tultitlan, Estado de México
(5255) 58 99 09 00, (5255) 5899 09 92
(5255) 58 99 09 27
davidmunoz@bacardi.com
pmartinez@bacardi.com
143
Derivados de Frutas, S.A. de C.V.
Industry:
Sub Industry:
Location:
Size: (sales)
Specific Business
Opportunities:
Beverages
Carbonated and noncarbonated refreshments,
Bottled water.
México City (D.F.)
US$15 million
US$N/A
Filling machines for Tetra-Pack, Air cleaning
machines, Pallet dismantling machine
Derivados de Frutas was founded in 1946 as a subsidiary of the Mezgo Group; this group is
100% Mexican and has 4 divisions:
a)
b)
c)
d)
Glass Manufacturing, with a plant in Guadalajara.
Grape Mill, with a plant in Aguascalientes.
Bottling Company, Derivados de Frutas, located in México City; and
Distributor, Distribuidora Mezgo, which manufactures grape concentrates and
distributes all products of the group.
In addition to its own infrastructure, the group has granted 20 franchises to other Mexican
companies that bottle their beverages. The beverage brands of the group are well
recognized in México and have very good acceptance among the low and middle social
classes.
The company exports beverages to the United States, mainly to cities that have large Latin
and Mexican populations.
Product
Grape beverage
Brand
Sangría Señorial
Package
Can, PET 2lt. and 1.5lt.,
Glass, Polyethylene 1lt.
and 600ml.
Grape beverage (Light)
Sangría Light
Same containers
Carbonated fruit beverages (four Trebol
Glass 330ml & 405ml,
flavors)
PET 600ml, 1.5lt., and
2lt.
Noncarbonated fruit beverages Chaparrita
Glass 220ml., PET
(no pulp)
250ml, 200ml, 600ml
Water
Agua Pura OASIS PET 1,600 and 600ml
144
Derivados de Frutas has five bottling lines, two for glass, two for PET, and one mixed. In
addition to these lines, the company has a line to manufacture PET bottles. The company
manufactures internally approximately 10% of all the PET bottles it uses; the remaining
90% is acquired from third parties.
Machinery Type
Units
Bottle orienting machine/Lafranki
Filling machines /Alfil
Filling machines / BC Flex
Mixer and carbonator / Alfil
Rinse and fill machine/ Alfil
Capping machine/ Alcoa
Coding machines / Image
Coding machines / Domino
Labeling machines / Langus
Labeling machines / Triam
Wrapping machines / Smith
Wrapping machines / Dimac
Line for blowing PET bottles /Dina Block
Line for bottling in glass /Crown
Line for bottling in glass and PET/ Meyer
Line for bottling in PET/ Alfil
Line for bottling in PET/ BC
Automatic palletizing machine
1
1
1
1
1
1
4
1
1
2
1
1
1
2
1
1
1
1
Origin
Age
Italy
6
75%
Germany
6
80%
Italy
6
75%
Germany
6
80%
Germany
6
75%
Germany
6
75%
US
6
75%
US
6
75%
Germany
6
75%
US
1
75%
Italy
6
75%
Italy
6
75%
Switzerland
6
75%
US
6
75%
US
6
75%
Germany
6
75%
Italy
6
75%
US
3
N/A
The last purchase of packaging machinery took place in 1999 when Derivados de Frutas
acquired two Triam labeling machines from a distributor in México. This was a minor
purchase of US$28,000 since the plant was practically renewed six years ago.
Machinery
Labeling Machines
Brand
Triam
Country
USA
In 2002 Derivados de Frutas plans to expand its México City plant by adding one bottling
line. Most likely the machinery for this line will be purchased from the German
manufacturer Alfil since they have had good results with this brand in the past. The line
they are seeking is to bottle water in 1.5 ltr, 1 ltr, and 600ml sizes, with a bottling capacity
of 500–800 bottles per minute. This acquisition will be made in the second half of 2002.
145
In addition the company plans to acquire a PET recycling machine and a carton form, fill,
and seal machine to assemble cardboard boxes.
Machinery
Bottling line for water
PET recycling machine
Units
Origin
1
1
1
Germany
N/A
N/A
Motive of
purchase
Expansion
Expansion
Expansion
Estimated Budget
N/A
N/A
N/A
F) Purchasing Policies and Financi al Arrangements
Derivados de Frutas purchases machinery directly from the manufacturer, dealing with
representatives and distributors in México only for minor purchases. The engineering
director visits potential suppliers and personally evaluates the machines. At least three
brands are assessed. When a decision is made, the manufacturer installs and sets up the
equipment and trains the employees. During the first year of operation of a new line, the
company requests that the manufacturer visit the plant two or three times to ensure that
everything is functioning correctly.
Purchases are the responsibility of the company’s engineering and purchasing departments,
which decide which brand they will acquire, however, the decision to expand capacity is
origina ted by the general director and the engineering department. Their procurement plan
is based on product demand estimates and on the financial capacity of the company.
Derivados de Frutas prefers European machinery based on good results in the past.
For acquisition of new machinery the company has used export credit lines offered by the
manufacturers and international lines. For the acquisition of one Italian line, the company
paid cash and received a discount for doing so. The company finance department
determines the most convenient way to pay for the machinery and modifies their yearly
budget based on expansion or investment plans.
1.
2.
3.
4.
5.
Efficiency.
Price.
Quality.
Brand recognition.
Origin.
Equipment Suppliers.
Derivados de Frutas has no arrangements with packaging machinery manufacturers,
however, they prefer to purchase from those suppliers that have provided good results in
the past. The company mentioned Smith, Dimac, Alfil, and BC as its favorite brands, but
they are open to receive proposals from other manufacturers.
146
The company gains awareness of new potential machinery suppliers by attending ExpoPack
in México and Chicago and the packaging expo in Monaco, Italy. They also obtain
information from manufacturers that advertise in El Reportero Industrial and Bebidas
magazine.
Origin
United States
Germany
Italy
Technology
Very Good
Very Good
Very Good
Flexibility
Good
Very Good
Very Good
Service
Average
Very Good
Very Good
Price
Good
Good
Good
The company would like to receive information on new machinery for bottling. They are
interested in growing their capacity within the next few years, and they are open to
proposals from new manufacturers offering state-of-the-art technology.
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
E-mail:
Derivados de Frutas S.A. de C.V.
Mr. Angel Lara Hernández
Production Manager
Calzada de Tlalpan #3222
Col. Sta. Ursula Coapa
04910, México D.F.
(52-55) 5677-1522; 5677-0022 ext. 3022
(52-55) 5677-0022 ext. 3027
derdefrut@df1.telmex.net
147
FRUGOSA, S.A. de C.V. (Grupo Jumex)
Industry:
Sub Industry:
Location:
Size: (sales)
Specific Business
Opportunities:
Beverages
Fruit juices, nectars, sports drinks,
kids’ drinks, flavors
Ecatepec, state of México
US $400 million
US $5 million
Tetra wedge packing machine, Filling
line for cans, Filling line for plastic
bottles, Coding machine
Grupo Jumex is a Mexican company that has been in the market for 40 years. The company
introduced its main product brand Jumex in 1964.
The company has continuously introduced new products into the market over the past 20
years, which has made it the leader in various market segments including kids’ drinks with
their brand Pau-Pau. Some of this company’s other brands include Ami, Choco-loco,
Jumex Light, Frutastica, and Vigor Sport.
Grupo Jumex is a holding company that controls several subsidiaries including: Frugosa
S.A. de C.V.; Botemex, S.A. de C.V. (can manufacturer); Jugomex, S.A. de C.V.;
Alijumex, S.A. de C.V.; Corporativa de Servicios Vilore; Vilore Servicios; and Vilore
Foods Inc.
Product
Brand
Juices and nectars Jumex
Nectars
Citrus beverage
Energetic beverage
Children beverage
Milk-based
beverage
Orange beverage
Fruit beverage with
little gas
Fruit shake
Sports beverage
Concentrates
Vigor
Ami
Extasis
Pau-Pau
Choco- loco
Package
Cans of 250, 300, 370, 2800 ml and 1
liter; Tetra brick of 200 ml. and 1 lt.;
glass bottle of 250 ml and 1 lt.
Can of 370 ml.
PET bottle of 500 ml and 4 lt.
Can of 230 ml
PET bottle of 250 ml
Tetra brick of 200 ml
Chupi Frut
Frutastica
Plastic bottle
Can of 280 ml.
Mi desayuno Tetra Prism of 250 ml.
Jumex Sport PET bottle
Jumex
Aseptic bag
148
Current Machinery
Used
Wrapping and packing
machine
Wrapping and packing
machine
Palletize
Palletize
Filling machine
Filling machine
Filling machine
Filling machine
TBA-8
TBA-19
TBA-9
TBA-21
Conveying systems
Coding machines
Coding machines
Coding machines
Brand
Units
Origin
Age
Germany
4
100%
Klisters
6
Ovest
Condittonment
SASIB
Stork
Solbern
Sanchelima
9
France
5
90%
3
2
5
6
3
3
4
5
100%
100%
90%
80%
Simonazzi
Alfill
Tetra Pack
Tetra Pack
Tetra Pack
Tetra Pack
Stork
Graham
Domino
Videojet
Image
4
3
3
8
1
1
6
10
8
8
8
Italy
Netherlands
US
US/ South
Africa
Italy
Germany
Sweden
Sweden
Sweden
Sweden
Netherlands
US
US
US
France
5
4
7
2
4
1
5
8
2
8
6
85%
85%
80%
80%
80%
80%
100%
90%
90%
60%
90%
Frugosa’s last equipment purchase in August of 2001 included the following:
Machinery
Packaging machine
Coder
Brand
Country
Cermex / Ouest France
Domino
US
The company spent about US$6 million in 2000 and US$12 million in 2001 to purchase
packaging equipment.
Grupo Jumex continuously upgrades their machinery to operate with state-of-the-art
technologies. This goal is reflected in their purchasing budgets for new equipment.
Besides technological improvement, a key factor that defines their level of investment is
demand growth for their products and the introduction of new products into the market.
Because of this, economic growth in México is an important variable when they develop
their purchasing budgets.
149
The company’s investment plans fo r the next two years include the purchase of new
equipment for processing, filling, and packaging.
They have approved a US$5 million budget for the purchase of packaging machinery
during 2002.
Purchases will include the following equipment:
Machinery
Units
Packaging machine /
Kisters
Packaging machine for
Tetra wedge
Can filling line
Plastic bottle filling line
Coding machines /
Domino
1
4
1
2
6
Origin
purchase
Germany Production US $400,000
Expansion
US / Expansion US $900,000
Europe
TBD Expansion US $1.5 million
TBD Expansion US $1.5 million
US
Expansion US $120,000
Grupo Jumex’s selection of new equipment is focused on the equipment’s brand,
specifically, their previous experience with the brand, its efficiency, and its technologies.
Equipment quality is more important to this company than price.
The company requests information, including pricing, directly from the manufacturer or its
representative in México. They usually analyze three equipment options.
The company’s president makes the final purchasing decision. The company offers a down
payment for the equipment, and the final payment is made once the equipment is in
operation at their facility. The company does not use letters of credit.
1.
2.
3.
4.
Equipment’s efficiency.
Sturdiness of construction.
Price.
Service.
Equipment Suppliers
Grupo Jumex indicated that they prefer European machinery especially from Germany and
Holland. They consider that Europe offers better technology, but US suppliers offer better
service in general.
150
The company attends Expopack in México, Pack Expo in Chicago and Las Vegas, and
Interpack. They also attend Drintek and Amiga in Germany.
The company subscribes to several trade publications and receives information from
numerous potential suppliers.
Grupo Jumex welcomes information on state-of-the-art packaging machinery for the foods
industry.
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
E-mail:
Web page:
Jugomex, S.A. de C.V. (Grupo Jumex)
Ing. Roberto Fernández Bravo
Director for Projects and Engineering
Km. 19 ½ Antigua Carretera a Pachuca
55400 Tulpetlac, Edo. De México
(5255) 58 36 99 99 Ext. 2175
(5255) 58 36 99 99 Ext. 2174
rfernandez@ jumex.com.mx
www.jumex.com.mx
151
Jugos del Valle, S.A. de C.V.
Industry:
Sub Industry:
Location:
Size: (sales)
Specific Business
Opportunities:
Beverages
Fruit juices and nectars, Soft drinks, Sports
drinks, other beverages
Cuautitlan, state of México
US $3 million
Complete filling line: Filling liquids, multi
packing, tray form, coding, shrinking tunnel,
and Palletizing machines.
Jugos del Valle is a Mexican company that has been in the market for over 50 years, with
manufacturing operations in México, the United States, and Brazil. The company has one
of the fastest growing brands of nectars and fruit juices on the continent.
The company operates several facilities in México including those in Xochimilco, México
City, the state of México, Monterrey, Zacatecas, Veracruz, and Ensenada. It also has
manufacturing facilities in Brazil though a joint venture.
The company exports its products to 26 countries.
Product
Juice
Brand
Del Valle
Nectar
Del Valle
Beverage
Beverage
O.J. concentrate
Kids’ beverages
Sports beverage
Barrilito
Apreton
Florida 7
Frutsi
Frutsi Sport
152
Package
Glass bottle, combiblock,
minibrick, aluminum can
Glass bottle, combiblock,
minibrick, aluminum can
PET and glass bottles
Volpak
Plastic can
Plastic bottle
Plastic bottle
Units
Combiblock (filling, closing, and packing)
Coding machine / Image
Depalletize / ABC
Fill and cap machine / Simonazzi
Labeling machine / B&H
Tray forming machine / ABC
Shrink tunnel / ARPAC
Palletize / Columbia
Bottle handling equipment / Posimat
Filling machine / Federal
Capping machine/ Fords
Packaging equipment / Zambelli
Labeling machine / Auxiemba
Wrapping machine / Lantex
Filling machine / Solbern
Can sealers / Angelus
Nitrogen injector / VBS
Bottle level inspector machine / Tap Tone
Shrink tunnel / I&H
Forming and packing system / Standard Knapp
Tunnel / Arpac
Glass bottle filling machine / Horix
5
15
1
6
6
6
6
7
2
5
5
5
5
2
1
1
1
1
1
1
1
1
Origin
Average
Age
Germany
4
US
4
US
8
Italy
6
US
15
US
7
US
12
US
7
Spain
5
US
10
England
10
Italy
New
Spain
2
US
9
US
6
US
6
US
6
US
6
US
6
US
6
US
6
US
6
The last equipment purchase at this company took place in June 2001.
Machinery
Form and pack system
Brand
Zambelli
153
Country
Italy
Jugos del Valle has a US$3 million budget for the purchase of packaging machinery during
2002. Their purchasing plans include the following equipment to expand its production:
Machinery
Units
Origin
1
Germany
1
1
1
1
1
TBD
TBD
TBD
TBD
TBD
Filling, closing and packing system /
Combiblock
Filling machine
Tray forming and packing
Code machine
Palletizing machine
Pasteurizing machine
Estimated
Budget
N/A
N/A
N/A
At Jugos del Valle, two departments are involved in the decision process for the purchase
of new equipment: one for the packaging process, the other in overall plant engineering.
Once the company has defined the type of equipment required, they request informatio n
from at least five potential suppliers and analyze which machine presents the best option. A
final decision is reached by the director responsible for projects. This information is sent to
the finance department, which manages the purchase.
With a new supplier, they arrange for a visit to see the equipment in operation.
The company is very satisfied with the Combiblock technology and will continue to
purchase this equipment to standardize this process throughout all their facilities.
Because of the growing demand for their products, Jugos del Valle must sometimes make
fast purchasing decisions to expand their lines. In these cases, delivery time becomes a
critical factor in the decision.
The company pays for the equipment through bank loans or letters of credit.
As for equipment maintenance, they expect the equipment supplier to train their technical
staff. About 80% of their maintenance needs are satisfied internally, while only in about
20% of the cases do they require support from the equipment manufacturer.
1.
2.
3.
4.
Experience with supplier / brand recognition
Technical support.
Price.
Delivery schedule
154
Equipment Suppliers
Jugos del Valle was the first company to bring the Combiblock technology into México.
They are very satisfied with this technology.
The company likes Italian equipment, but they say that it takes too long to receive spare
parts.
Jugos del Valle’s evaluation of packaging machinery according to its country of origin:
Origin
United States
Spain
Germany
Italy
Technology
Good
Good
Very Good
Very Good
Flexibility
Good
Good
Good
Good
Service
Average
Good
Good
Good
Price
High
Good
High
Good
The trade shows they attend are Expopack and Expobeber, both in México City. They also
receive information from equipment manufacturers. They prefer to receive information on
CD-ROM as this allows them to see the equipment in operation and gives a better sense of
the proposed machine than a brochure does.
Jugos del Valle is interested in receiving information on packaging machinery specializing
in the beverage industry.
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
E-mail:
Web page:
Jugos del Valle, S.A. de C.V.
Ing. Oscar Medrano Horta
Jefe de compras, proyectos, refacciones y miscelaneos (head of the
purchasing department)
Insurgentes #30
Barrio Texcoaca, Tepotzotlan
54600, Edo. De México
(5255) 5899-1000 ext. 1039
(5255) 5899-1043
omedrano@jvalle.com.mx
www.jvalle.com.mx
155
Grupo Modelo, S.A. de C.V
Industry:
Sub Industry:
Location:
Size: (sales)
Specific Business
Opportunities:
Beverages
Beer
México City (headquarters)
US$2.22 billion
US$1.6 million.
Box form, fill, and seal machines
Grupo Modelo, a pub licly traded company that was established in 1925, is currently the
leader in beer production in México with a 54.2% market share.
Managerial control of this company has remained in local hands despite the growing
importance of the Anheuser-Busch Companies, Inc., who by late 1998 owned a 50.2%
stake in the company. Anheuser-Busch has indicated no interest in managing the company
but controls 6 of the 11 seats on their board of directors.
The company has 8 plants in México with 56 beer-bottling lines. The ir annual production
reaches 4.6 billion liters of beer.
Grupo Modelo produces over 10 different beer brands. Their most important brands are
Corona, Modelo, Victoria, and Pacifico. The Corona brand is the single most important
brand in México, accounting for 32.2% of the domestic beer market in 2000 and
representing 58.4% of total sales for Modelo. It is important to note that Corona has
surpassed Heineken as the number one imported beer into the United States.
The company exports five beer brands to around 150 countries and imports AnheuserBusch’s Budweiser and Bud Light into the Mexican market.
Product
Brand
Beer
Corona, Corona light, Negra
Modelo, Modelo Especial,
Modelo light, Victoria, Estrella,
Pacifico, Leon, Montejo
Package
Glass bottles with 190, 325, 940 ml
capacity for local market, Glass bottles
with 7, 12, 24 oz. capacity for export, 340
ml Aluminum cans, 30 and 60 lt. kegs
In 1993 Grupo Modelo initiated a major investment program to purchase packaging
machinery for the new plant in Zacatecas and to standardize equipment in the other 7
facilities. The company has 56 bottling lines with 1–4 machines of each type per line. The
156
following table lists machines currently being used by Modelo. An asterisk (*) indicates
new brands that are being introduced to standardize the lines at all their facilities.
Brand
Depalletizing machines
OCME
Meyer
Barry
Hartness*
Bottle cleaning machines Simonazzi*
Barry
SEN-K45
Filling and closing machine SIG- Simonazzi*
Meyer
Cemco / Fran Corp
Hansa
Pasteurizer
Simonazzi*
Barry
SEN
Labeling machines
Alfa-SIG
Krones
JAGENBERG
Wiring machine
Angelus*
Keg filling machine
Comak
Case packers
Meyer
Barry
Hartness*
High speed palletizing units OCME
(120 boxes / minute)
SEN
Courrier
Bottle inspection machines FILLTECH
Omnivision*
Optiscan (Barry)
Ejector machine
Stratech
Box coding machines
Lumonic
Videojet
Box forming, cleaning,
Dexter*
dispensing machine
Box forming machine /
RA Parson
Cosedora x grapa
Tray forming machine
SWF Machinery
Tray forming machine /
OCME
Thermo-shrink
Wrapping machines
Lantec
Robopack*
ITW
157
Total units
100
1–2 per line
56
1–3 per line
56
1–3 per line
1–4 per line
3–4 per line
Origin
Italy
US
US
US
Italy
US
Germany
Italy
Germany
N/A
N/A
Italy
US
Italy
Italy
Germany
Germany
US
US
US
US
US
Italy
Italy
US
US
US
Germany
US
US
México
US
US
Italy
US
Italy
Their most recent equipment purchase took place in December 2000, when they introduced
a complete depalletizing line purchased from OCME.
Grupo Modelo’s investment program to standardize their packaging machinery at all their
facilities began in 1993 and continues today. Other investments will include expansion of
their production capacity at their Tuxtepec, Oaxaca, facility.
The company does not develop long-term equipment purchasing plans but purchases on an
as-needed basis. They constantly evaluate the productivity of each line, and depending on
the results and cost/benefit analysis of new equipment alternatives, they make decisions
regarding the purcha se of new machinery.
Modelo’s recent purchases show a clear preference for Italian machinery for depalletizing,
washing, filling, pasteurizing, labeling, and palletizing, and a preference for US equipment
for bottle inspection, coding, and tray- forming machines.
Near term purchasing plans will include the following equipment:
Machinery
Units
Origin
Motive of
purchase
Estimated
Budget
Box form and seal machines/ RA
Pearson
Box form, fill, and seal machines for
12-pack presentations
5
US
Expansion
$60,000
6
US
To purchase the
machines instead
of leasing
$1.1 million
The company’s corporate engineering department continuously visits all their production
facilities and evaluates the performance of each line. The engineering director decides
which new equipment is needed. The cost of maintenance is a major factor in the decision
for replacing existing equipment. This department also makes a cost / benefit analysis of
proposed new equipment, and purchasing decisions are made at the board level.
To select new equipment and potential suppliers, the company obtains information by
visiting packaging machinery trade shows and by consulting with other manufacturers that
use the machines they are interested in buying. During the selection process, they evaluate
previous experience with the supplier and, in the case of new suppliers, that the brand is
well recognized and that the equipment meets Modelo’s specifications.
The company usually purchases the equipment with their own cash flow; in some cases it
has rented machines with an option to purchase.
158
1.
2.
3.
4.
Equipment quality
Ease of operation
Low maintenance
Price
Equipment Suppliers
Grupo Modelo personnel indicated that their packaging lines are operating with excellent
efficiency. For equipment dealing with glass bottles, the company prefers Italian machinery
specifically from Simonazzi. They are very satisfied with this supplier especially because
of the post-sales service they have received.
Regarding their carton boxes, they are using OCME equipment, which enables them to
reuse the carton boxes. The technology for these machines was specially developed for
Modelo in 1995. The company believes that this technology may now be somewhat dated,
and it is not completely satisfied with the post-sales service from this supplier.
They are open to new suppliers for wrapping machines, as they are not satisfied with their
previous supplier ITW.
The company has a special maintenance crew at each facility, which has been trained by
each equipment supplier. They maintain an inventory of the most commonly used spare
parts, which they purchase from the equipment manufacturers. They manufacture some
spare parts for noncritical components. They request the equipment manufacturers’
assistance when equipment needs major repairs.
Grupo Modelo keeps up with new technology developments in their industry by attending
trade shows in Germany, specifically Interbrau and Drintek. They indicate that because this
show takes place once every 4 years, they really see a technological evolution from one
show to the next.
They feel that shows in México and the United States are not specialized to their industry.
The company receives trade publications, but they are more interested in the information
sent to them by potential suppliers.
Grupo Modelo is interested in receiving information on state-of-the art technologies for
beer bottling.
159
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
Web page:
Grupo Modelo, S.A. de C.V.
Ing. Jesús Falcón Aguilar
Direccion de operaciones de envasado (Bottling Operations)
Campos Eliseos #400, 14th floor
Col. Lomas de Chapultepec
(5255) 52 81 01 14 ext. 2113
(5255) 52 81 10 40
www.gmodelo.com
160
Parmalat de México, S.A. de C.V.
Industry:
Sub Industry:
Dairy
Milk, concentrated
juices, cookies
Location:
México City
Size: (sales)
US$80 million
Purchasing potential: US$3.5 million
Specific Business
Evaporating systems,
Opportunities:
Can filling lines.
Parmalat is an Italian company with a presence in 28 countries through 162 processing
plants. The company has over 40,000 employees worldwide. Parmalat de México was
founded in 1995 when they built a large milk processing facility in Lagos de Moreno,
Jalisco. Parmalat employs 350 people in México and has been growing since its
incorporation. Currently they process milk, milk derivatives, and juices; other products
such as diced tomatoes, cookies, and condensed milk are imported from Italy. Parmalat
intends to continue to grow its production in México, as they perceive the country as a
strategic location from which to target the Central American and North American markets.
Product
Milk
Light milk
Low- fat milk
Lactose-free milk
Milk with vitamins and iron
Flavored milk
Juices, Nectars
Tea
Diced tomatoes
Cookies
Condensed milk
Light condensed milk
Brand
Parmalat
Parmalat
Parmalat
Parmalat
Parmalat
Parmalat
Parmalat
Parmalat
Pomi
Premium
Parmalat
Parmalat
161
Package
Tetra Brick
Tetra Brick
Tetra Brick
Tetra Brick
Tetra Brick
Tetra Brick
Tetra Brick
Tetra Brick
Tetra Brick
Terta Brick
Aluminum can
Aluminum can
Units
Origin
Filling machine / TBA 8
Filling machine / TBA 9
Filling machine / TBA 9 slim
Filling machine / TBA 8 slim
Packaging line for cans
Straw dispensing machines
Carton forming machines/ Tetra Pack
Tray forming/dispensing machines
Colocadora Abre-facil
3
3
1
1
1
4
8
3
5
1
Italy
Italy
Italy
Italy
Italy
Italy
Italy
Italy
Italy
Italy
Age
6
80%
5
85%
5
85%
5
85%
3
90%
5
90%
5
90%
4
90%
4
90%
5
90%
Complementary equipment includes coding machines, conveyors, palletizing machines, and tray
dispensing machines. Brands were not provided.
Parmalat de México invested over US$3 million in packaging machinery over the last three years.
Their latest acquisition in December 1999 expanded their TetraBrick packaging capacity.
Machinery
Filling machine TBA 8
Brand
Tetra Pack
Country
Italy
E) Future Packing Machinery Ordering Plans, 2002–2004
Parmalat de México has investment plans of over US$6.5 million in the next three years.
The company intends to begin producing and packaging teas and condensed milk, as well
as increasing their juice production capacity. Can filling and sealing machines and one
evaporating unit are the most representative equipment for these projects.
Machinery
Evaporating unit
New lines for packaging cans
Units
Origin
1
5
Netherlands
US/Italy
Motive of
purchase
Expansion
Expansion
Estimated
Budget
US$3 million
US$500,000
Parmalat de México selects packaging machinery suppliers based primarily on
recommendations of the Italian corporate offices as they seek standardization among all
Parmalat’s plants. By doing this, Parmalat can exchange machinery from one country to
another based on local demand and plans. Although most machinery is recommended and
acquired by the Italian headquarters, Parmalat de México can request authorization to
acquire equipment locally. Most of the complementary equipment is purchased locally.
162
For the acquisition of packaging machinery in México, the company performs a
cost/benefit analysis, which is presented to corporate in Italy. If approved, Parmalat de
México makes the purchase with its own resources.
Parmalat pays for its purchases following policies established by the suppliers, which
usually are 30–50% down payment and the remainder when the machinery is installed and
running.
G) Comments on Preferred Brands and Existing Business Arrangements with Packaging
Equipment Suppliers
Parmalat prefers Tetra Pack as this type of packaging is safe and meets high sanitary
standards. The company believes that the Tetra Pack package has earned Parmalat the trust
of its customers and it is part of the image of the company. For canned products, Parmalat
has no preference for any particular brand. They believe that both the United States and
Europe have good suppliers for this canning equipment so they have more freedom to select
suppliers than in their milk or juice projects.
H) Specific Interest
This year Parmalat de México will acquire an evaporating machine system and can filling
systems. The company is interested in meeting with suppliers that can propose solutions for
their future offerings of concentrated juices and teas packed in cans. Brand recognition,
training, post- sale service and capabilities are very important to Parmalat.
I) Contact Information:
Company Name:
Contact:
Ing. Jorge Gordillo / Ing. Adriana Becerra
Position:
Operations and Manufacturing Director / Purchasing Manager
Address:
Av. Manuel Avila Camacho # 1 piso 8 despacho 804
11560, México D.F.
Telephone:
(52-55) 5387-9902
Fax:
(52-55) 5580-1103
E-mail:
abecerra@parmalat.com.mx, compras@parmalat.com.mx
Web page:
www.parmalat.com.mx
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
E-mail:
Web page:
Mr. Vincenzo Borgogna
Financing Director
Av. Manuel Avila Camacho # piso 8 despacho 804
(52-55) 5387-9902
(52-55) 5580-1084
vborgogna@parmalat.com.mx
www.parmalat.com.mx
163
Pascual Boing, S. de R.L.
Industry:
Sub Industry:
Location:
Size: (sales)
Specific Business
Opportunities:
Beverage
Juice, Bottled water, Noncarbonated
drinks, Carbonated beverages
México City (D.F.)
US$100 million
US$5 million
Filling machines for Tetra Pack, Air
cleaning machines, Pallet dismantling
machine
Pascual Boing was founded in 1940 as a private company. In 1985 it became an employeeowned company. Today the company is the third largest juice manufacturer in México after
Jumex and Del Valle.
Pascual Boing has three production plants located in México’s central region. The company
also owns a distribution system with 19 warehouses and over 800 vehicles.
The company owns eight beverage brands that are distributed throughout México and
exported to the United States and Central America.
Product
Fruit beverage (50% pulp)
Carbonated fruit drinks
Juices
Water
Fruit beverage (100% nectar)
Milk
Brand
Boing
Pascual, Lulú
Pascual,Woopy
Pascual
Nectasis
Pascual
164
Package
Tetra Pack, Glass, Can.
PET, Glass, Can.
PVC, Cardboard.
PET
Glass
Cardboard
Machinery Type
Units
Origin
24
Sweden
8
1
1
US
Italy
US
45
8
1
60%
90%
95%
1
US
1
95%
1
8
5
5
1
4
Japan
US
N/A
N/A
France
US
8
5
4
6
1
5
85%
90%
80%
70%
90%
90%
Filling machines for cardboard and
Tetra Pack/ Tetra Pack
Filling machines / Meyer
Filling machine / Simonazi
Filling machines for polyethylene
package / Filler Specialties
Rotary liquid filling system/ Filler
Specialties
Rotary liquid filling system/ Nissey
Coding machines/ Domino
Labeling machines/ BYH
Capping machines / Alcoa
Air cleaning machine / Sidel
Bottle grouping machines/ River
Age
15
90%
The company’s last purchase of packaging machinery took place in October 2000, when
they spent US$2 million to upgrade one of their plants. Some of the machinery acquired
included:
Machinery
Filling machines
Bottle washers
Brand
Sidel
Filler Specialties
Barry-Wehmiller
Country
France
US
US
Pascual Boing has developed a budget of US$5 million to purchase packaging machinery
during the next two years. The company has two simultaneous acquisition programs, one to
increase production and another to increase production capacity. For early 2002 Pascual
Boing plans to invest US$2.7 million for the acquisition of two rotary liquid filling systems
and two air cleaning machines for bottles.
Machinery
Filling machines for glass
Air cleaning machines
Units
2
2
165
Origin
Estimated Budget
Motive of
purchase
US
Replacement US$1.5 million
France Increase capacity US$1.2 million
For the acquisition of new machinery, the infrastructure division of the company issues
machinery requests, which include technical specifications and, in some cases, the brand.
Once financial approval is granted, the purchasing department contacts potential suppliers
and requests quotations. Usually Pascual Boing purchases from Mexican manufacturer
representatives or distributors; in only a few cases, they buy directly through the
manufacturer. After receiving proposals from different potential suppliers, the company
selects the one offering the better price and post-sale service. Pascual Boing believes it is
very important for the potential supplier to have knowledge of the Mexican juice market.
Purchases are made with Pascual’s own resources, and payment terms usually include 40%
down payment and 60% when the machine is operating.
1.
2.
3.
4.
5.
Local technical support.
Post-sale service.
Guarantee.
Price.
Technology.
Equipment Suppliers
Pascual Boing indicated they have no particular preference for specific brands of packaging
equipment but they do prefer to use those machines that have proven good results in their
plants. The company mentioned that they only purchase machinery that offers good
technical support locally. Their favorite machine is Simonazi due to its capacity and
technology as well as its presence and service in the Mexican market.
Origin
United States
Germany
Italy
France
Technology
Good
Good
Very Good
Good
Flexibility
Average
Average
Good
Poor
Service
Good
Good
Good
Good
Price
Average
Expensive
Good
Average
Pascual Boing is interested in receiving information related to new technologies for
packaging all type of beverages. Of particular interest is information on filling machines,
plastic and PET injection machines, air cleaning machines, and pallet dismantling
machines.
166
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
E-mail:
Sociedad Coopertativa de Trabajadores de Pascual Boing, S. de R.L.
Sr. Alfredo Rivera
Purchasing Manager
Clavijero # 75
Col. Tránsito
06820, México D.F.
(52-55) 5741-0882
(52-55) 5741-0842
comprapb@mail.entropia.com.mx
167
V.
5.1.
The Personal Care Industry
Industry Overview
In México there are approximately 400 companies that manufacture cosmetics, perfumes,
and other personal care products. The great majority of these are small- and medium-sized
companies, which manufacture products under diverse little-known brand names and which
are targeted to the low- and medium- income levels.
According to the National Chamber of Perfumery and Cosmetics, México produced
US$2.13 billion of cosmetics and personal care products in 2000. Local production is
estimated to cover only 60% of total demand, so the market is estimated at US$3.5 billion.
It is unclear what impact the new tax laws will have on this sector, as a portion of its
production is defined as a “luxury” product and will be subject to an additional 5% sales
tax. We predict that the sector will not be affected by these measures, and production
volumes will continue to grow as the result of strong demand fueled by increases in real
wages taking place in México over the past and current years. It is also important to note
that the manufacturing base for these products in México has also become an important
supplier for other markets in countries with which México has enacted free trade
agreements, especially in the Latin American region.
5.2.
Type
Employees
No. of Companies
%
MICRO
SMALL
MEDIUM
LARGE
Total
0 to 30
31 to 100
101 to 500
501+
275
87
19
20
401
68.57%
21.69%
4.74%
4.99%
100.00%
5.3.
Key Players
Key players in the personal care industry are mainly multinational companies, with some of
the most important being Procter & Gamble, Unilever, Warner Lambert, Johnson &
Johnson, Revlon, Fuller, Avon, and Palmolive, among others.
5.4.
Ten companies were interviewed for this report; most are large to medium subsidiaries of
large international personal care companies. Data indicate that US machinery dominates the
packaging machinery base, followed by Italian and German equipment. Combined
purchasing potential for these 10 companies is US$38.2 million, with the two largest
budgets being those of Procter & Gamble at US$13.5 million, and Industrias Alen, which
plans to construct a new manufacturing facility with close to US$18 million in new
168
5.5.
Company Profiles
Avon Cosmetics, S.A. de C.V.
Industry:
Sub Industry:
Location:
Size: (sales)
Specific Business
Opportunities:
Personal Care
Cosmetics
México City (D.F.)
Over US$50 Million
US$600,000 for 2002
Filling and capping
machine.
Avon Products is the world’s largest direct seller of cosmetics and beauty products. Besides
direct sales, it also has a large presence in supermarkets, kiosks, and retail stores. The
company’s products include cosmetics, fragrances, jewelry, toiletries, apparel, and home
products. Avon has a presence in 136 countries and has been in business for 116 years.
In México Avon Cosmetics S.A. de C.V. began operations in 1956, offering 59 products for
women and 9 for men. Today Avon manufactures over 900 products in México.
In addition to their México City plant, they inaugurated a new state-of-the-art facility in
2000 in Celaya, Guanajuato. This new plant is the company’s most modern plant in the
world.
169
Of the 900-plus products manufactured in México, Avon’s most important products are:
Product
Brand
Lipstick
Avon Color, Perfect Ware,
Beyond Color
Liquid lipstick
Glazewear
Lipstick maximum duration Avon Color
Eye liners
Avon Colors
Mascara
Avon Colors
Eye liner pencil
Avon Colors
Liquid eye liner
Color Trend
Foundation
Beyond Color
Anti-stress base
Calming Effects
Humectant base
Face Lifting
Makeup base
Clear Finish
Powder
Avon
Corrector
Avon
Manicure
Avon
Nail Polish
Strong results
Nail Colour
Color last plus
Skin cream
Avon
Masks
Avon
Anti Acne
Avon
Sun block
Avon Sun
Tan lotions
Avon Sun
Hair treatment
Advance Techniques
Shampoo
Advance Techniques
Gel and hair fixing products Zip
Spray
Zip
Hair Color
Beautiful Reflections
Fragrances
Package
Cardboard box.
Flexible plastic bottle
Glass bottle, cardboard box.
Cardboard box.
Plastic container, cardboard box
Cardboard box
Aluminum bottle
Glass bottle
Glass bottle
Glass base, cardboard box
Glass bottle, cardboard box
Plastic base, cardboard box
PVC tube, cardbard box
Glass bottle
Glass bottle
Glass bottle
Glass bottle
Plastic container
Plastic container
Plastic bottle
Glass and plastic bottles
PVC tube
Plastic bottle
PVC tube
Plastic bottle
Plastic container, aluminum tube,
plastic bag and cardboard box
Far Away, Woman of Earth, Glass bottle
Perceive, Millennia, Prowl,
Incandescence, Anew
170
In their México City plant, Avon has the following packaging machinery:
Units
Origin
Labeling machines / Acroplay
Screw capping machines / Resina
Screw Cappers
Bottle feeder and orienting/ Posimat
Filling machine / Posoli
Filling machine/ Robomat
Capping machine/ Robocap
Screw capping machines / Resina
Screw
Filling and capping machine / MAR
Labeling machine/ Acroplay
Filling machine/ Vetraco
Capping machine/ Kemwall
Labeling machine/ Arenco Alite
Coding machines/ Jaime 1000
Filling machine/ Diehi Matter
Taponadora / Krones
Filling machines / Cabala
Filling machines / Selladora, Arenco
Filling machines / IWKA
Filling machines / Norden
Filling machines / MRM
Box form, fill, & seal machine/ Jones
6
18
US
US
1
2
1
1
10
Italy
Italy
Germany
Germany
US
2
7
4
4
7
80%
80%
80%
80%
80%
1
1
2
1
3
30
2
1
1
1
1
1
9
9
Italy
US
Italy
England
US
US
Germany
9
9
4
4
4
3
7
7
7
7
7
7
7
7
80%
80%
80%
80%
80%
100%
80%
80%
80%
80%
80%
80%
80%
80%
US
Germany
US
US
US
Age
6
80%
7
80%
The company’s last packaging machinery purchase took place in 2000 when they acquired
all the machinery for the new plant located in Celaya. For the México City plant, the last
acquisition took place in 1999 when they acquired a bottle feeder and orienting machine
from Postimat and one filling machine from Posoli.
Machinery
Bottle feeder and orienting machine
Filling machine
171
Brand Country
Posimat
Italy
Posoli
Italy
Avon plans to acquire an integrated filling and screw capping machine to increase
production of shampoo. While the purchase of this machine has not yet been approved, the
company expects to buy it in the second half of 2002.
Machinery
Filling and capping machine
Units
Origin
Motive of purchase
Estimated
Budget
1
-
Increase production
US$600,000
The company has plans to close its México City plant in late 2002 and move all but the
oldest machinery to the new plant in Celaya, located 250 miles away. In late 2002 the
company will assess its needs to see if replacements will be required for the old equipment.
Avon de México is a subsidiary of Avon in New York state. For major purchases, such as
introduction of new lines, selection of the equipment and the supplier is made jointly by
Avon de México and Avon in New York. For replacements or additions of small
equipment, Avon de México handles them directly.
Supplier selection is based on an information exchange between Avon US and Avon de
México. Avon Inc. recommends suppliers that have provided good results within the group,
while Avon de México suggests suppliers with local presence and good local service. After
discussing the potential suppliers, the company requests proposals and performs a technical
and economic evaluation to select the most suitable option.
Avon usually follows the payment conditions established by the suppliers.
1.
2.
3.
4.
5.
Recommendations of Avon, Inc.
Brand recognition.
Quality.
Flexibility, the capability to be used for different products.
Service.
Equipment Suppliers
Avon personnel said they do not have a preference for any particular brand. Based on
origin, the company believes Italian equipment provides a better cost-benefit relationship.
Origin
United States
Germany
Italy
Technology
Very Good
Good
Very Good
Flexibility
Good
Average
Good
172
Service
Good
Good
Good
Price
Average
Expensive
Good
Avon is interested in learning about machinery for personal care products that is highly
flexible and easily adapted.
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
E-mail:
Web page:
Avon Cosmetics, S.A. de C.V.
Ing. German Huerta
Gerente de Proyectos
5 de Mayo # 75,
Col. Tepepan Xochimilco,
(52-55) 5420-2216
(52-55) 5420-2205
german.huerta@avon.com
pr.avon.com.mx
173
Grisi Hermanos, S.A. de C.V.
Industry:
Sub Industry:
Location:
Size: (sales)
Specific Business
Opportunities:
Personal Care
Soaps, shampoos & conditioners, body
lotions, dental care products, baby lotions
and ointments, pet products, pharmaceuticals
México City
US$60 million
US$1 million
High-speed filling machine for microspheres (specialized product)
Grisi Hermanos, S.A. de C.V. is a Mexican company in the chemical-pharmaceutical field
that manufactures and distributes products made from natural ingredients for the personal
care, health, and nutritional supplement markets.
The company was founded in 1863, by Mr. Jose Grisi who introduced an anti- infection
ointment to treat superficial skin wounds. This product was very successful and served as
the foundation for this company’s growth.
The company employs 550 workers, 130 at their manufacturing facility and the rest in sales
and product distribution. The company sells in the Mexican market and exports to the
United States and Central and South America as well various countries throughout Europe.
Product
Shampoos, Conditioners,
Gel, Body lotions
Soap
Toothpaste
Garde tablets
Specialty pharmaceuticals
Packing
PET bottles, PVC bottles, Low and
high density polyethylene
PVC permeable stretch (exported
products), Carton box or plastic case
Plastic and box
Blister pack, Carton box
Blister pack, Carton box
All of this company’s products are sold under the Grisi Hermanos brand.
In addition to their own production, Grisi Hermanos distributes imported brands of
cosmetics and other products. The sale of these products represents 40% of their income.
Of the remaining 60%, 30% comes from exports.
174
Grisi Hermanos has one fairly automated manufacturing facility with 8 production lines.
Four lines are for manufacturing and packing soaps, two lines for body creams and lotions,
one line for Garde tablets, and one line for toothpastes and ointments.
The company has additional production and packing lines for their pharmaceutical
products.
The soap lines are completely automatic up to the palletizing stage, which is done manually
with Brumen equipment (US).
Most of their machinery is Italian from Mazoni, Marchesini, Ronchi, and Mar. They also
have German machinery from Weaver Sea Lander and Leman Gloum.
Current Machinery Used / Brand
Soap cutting machines / Weaver Sea
Lander
Soap cutting machines / Leman
Gloum
Monoblock / Mazoni
Carton form, fill, and seal machine /
Cam
Carton form, fill, and seal machines /
Marchesini
Soap wrapping machine / Guerze
Monoblock for viscous product
(filling, capping, labeling) / Ronchi
Monoblock for viscous product / Mar
Labeling machine / Termostabile
Labeling machine / Etipack
Palletizer / Brumen
Blister fill and seal machine / Famar
Carton coder / Marsh
Units
Origin Average Specification
Age
Germany
90%
Germany
90%
10
4
Italy
Italy
5
5
90%
85%
2
Italy
2
90%
2
2
Italy
Italy
3
5
100%
90%
2
8
3
1
1
2
Italy
Italy
Italy
US
Italy
US
10
5
6
2
11
5
90%
90%
90%
90%
100%
90%
Grisi Hermanos has identified the need for new machinery because of the introduction of
new product lines into the market. One of the new products has a viscous consistency and
has micro-spheres. They will require machinery for the manufacture and packaging of these
products. Additional equipment under consideration will include filling and sealing
machines for aluminum tubes and laminated plastic for their toothpastes and ointments.
They will also purchase filling machines for other viscous products and creams.
175
The last machinery purchase occurred in March 2001 when they purchased an Italian carton
form, fill, and seal machine from Marchezini. The company has an average annual budget
of US$1 million for the purchase of new machinery.
Machinery
Brand Country
Carton form, fill, and seal machine Marchezini
Italy
Grisi Hermanos is in the process of evaluating alternatives for the purchase of new
equipment. The company’s priorities include two filling machines for viscous and cream
products, two filling machines for aluminum and laminated plastic tubes for their
toothpastes and ointments, and one-high speed filling machine for their new viscous
products with micro-spheres. They estimate that they will spend about US$ 1 million on the
purchase of these machines.
For the first group of machines they have already evaluated some equipment from Italian
and Canadian suppliers. For the second set of machines they are considering Italian
suppliers. They have not reached any decision regarding the high speed- filling machine.
The company indicates that most of their packaging equipment is Italian, but that they are
open to evaluating new potential equipment suppliers.
Machinery
Units
Filling machine for viscous product
(body cream)
Aluminum or depreciable plastic
tube fill and seal machine
High-speed filling machine for
viscous product with micro-spheres
Blister machine
2
2
TBD
TBD
Origin Motive of purchase Estimated
Budget
Italy / Filling for new
US$150,000
Canada product
Italy Process automation, US$110,000
capacity expansion
TBD New specialty
US$200,000
product
TBD
TBD
New equipment purchasing decisions are made by this company after considering potential
growth in demand for their products and new packaging needs—both for marketing
purposes and for the introduction of new products.
When the company selects potential suppliers, they consider the previous experience they
have had with the manufacturer and the level of local technical support that the supplier is
able to provide in México.
176
Price is always a decision factor, of course. And Grisi Hermanos prefers equipment that is
flexible and can accommodate their production levels. They mentioned that Italian
equipment is more suitable for their production volumes.
Once the company makes an initial decision for a specific machine, they send product and
packing samples to the machine supplier to determine if the proposed equipment will meet
their specifications. They also visit a facility to see the proposed machine in operation.
Company personnel said they are open to new suppliers. Recently, they bought a cooling
product machine from Wauquesha Cherry-Burrel (WCB de México). This is the first
purchase they have made from this company, and they are very satisfied with the results.
They purchase their equipment directly from the manufacturer or their representatives in
México. The company finances their purchases with bank loans from Mexican and
international banks. They indicate that they work closely with Banco di Roma.
1.
2.
3.
4.
5.
Price.
Technical support.
Equipment flexibility.
Equipment that fits their production levels.
Previous experience with brand.
Equipment Suppliers
Grisi Hermanos has no pre-existing agreements with any equipment supplier. They
mentioned that they have a preference for Italian and Spanish equipment as they feel that
they offer good prices and their machinery integrates well with their existing equipment.
They are also satisfied with the service support they have received but note that European
spare parts have a long delivery cycle, especially for major components.
Grisi Hermanos’ evaluation of packaging machinery by country of origin:
Origin
United States
Germany
Italy
Spain
France
Technology
Very Good
Very Good
Very Good
Very Good
Very Good
Flexibility
Average
Poor
Very Good
Very Good
Very Good
Service
Good
Poor
Very Good
Very Good
Very Good
Price
High
High
Very Good
Very Good
High
Grisi Hermanos attends various national and international trade shows for packaging
machinery, including Expopack in México, and other trade sho ws in Germany, France,
Spain, and the United States.
177
The company subscribes to trade publications like AOCS, which focuses on their subindustry, and they receive materials from potential suppliers.
Grisi Hermanos is interested in receiving information from potential suppliers of packaging
machinery that can assist them in automation of their lines as well as for the
implementation of machinery for new products. They are very interested in machinery for
their newest product, viscous and semiviscous micro-spheres shampoo.
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
E-mail:
Web page:
Grisi Hermanos, S.A. de C.V.
Ing. José Romero
Technical Resources and Normalization Manager
Amores # 1746
Col. Del Valle
México, D.F.
(5255) 56 29 99 02
(5255) 55 34 43 14
jromero@grisi.com
www.grisi.com
178
House of Fuller, S.A. de C.V.
Industry:
Sub Industry:
Personal Care
Cosmetics, lotions, creams, deodorants (roll-on),
shampoos, other personal care products
Location:
México City
Size: (sales)
US$150 million
Purchasing potential: US$1 million
Specific Business
Transport systems, Filling for powders, liquids,
Opportunities:
and viscous, Cooling tunnel and wiring
machines
House of Fuller is a subsidiary of the US company Sara Lee, which is involved in the food,
beverages, intimate apparel, household, and personal care industries.
This Mexican subsidiary was established in 1982 and currently manufactures personal care
products such as lotions, creams, deodorants, shampoos, lipsticks, eye liners, and various
other products.
The company operates a manufacturing facility in México City. House of Fuller produces
and distributes over 3,000 different products from this one plant and exports about 10% of
its production to various markets including Argentina, Uruguay, the Philippines, South
Africa, and Indonesia.
This company develops new products and formats every two weeks. This is part of the
company’s business model, designed to differentiate the company and its products from
their competitors.
Product
Perfumes and fragrances
Shampoos
Creams
Lipsticks
Brand
Fuller and Armand Dupree
Deodorants (roll-on)
Facial mask
Eye liners
179
Package
Glass bottles, Carton box
PET and polyurethane bottles
Plastic containers
Plastic containers, Blister,
Carton box
Plastic containers
Plastic containers, Blister,
Carton box
Blister, Carton box
Brand
Units
Filling machines
Liquid filling machines
Powder filling machines
One position filling machine
Semi- viscous filling machines
Coding machines
Coding machines
Blister machines
Capping machines
Capping machines
MRM
Cozzoli
N/A
Abamex
Abamex
Kalish
Video Jet
Image
Various
MRM
Bealt
2
3
2
5
2
2
13
3
8
2
2
Origin
Average
Age
US
13
Italy/USA
5
US
8
México
5
México
10
Canada
9
US
7
US
5
Various
7
US
10
México
10
Specification
75%
50%
80%
70%
70%
80%
75%
80%
75%
70%
70%
Most of Fuller’s packaging machinery (60%) was manufactured in the United States. This
company perceives American machinery to be the most technologically advanced and quite
flexible for adapting to their various packaging applications. Fuller has also bought an
important machinery base from Mexican manufacturers. The company believes Mexican
machinery has similar quality to imported machines in most uses.
The company’s last purchase of packaging machinery took place in 1999, when they
purchased a blister machine that was custom made by a local equipment supplier. This
machine is currently operating at 50% of specifications and needs constant maintenance.
The previous purchase was in 1997, when they acquired 3 coding machines from Italian
supplier Image. The company is very satisfied with these machines.
Machinery
Blister machine
Code machines
Brand
Custom made
Image
Country
México
Italy
US $250,000
US $120,000
The company has developed a US$2 million budget for the purchase of new processing and
packaging machinery, about 50% of which will go for packaging machinery. The company
intends to replace those machines that are less efficient and that need more constant repairs
and maintenance.
They would like to purchase equipment that is more easily adapted to their production
needs and easier to operate.
180
The following is a preliminary list of the equipment that the company is interested in
purchasing:
Machinery
Powder filling machine
Viscous filling machines
Capping machines
Can Closing Machines
Cooling tunnel
Transporting system
Units
1
2
2
4
1
1
T.B.D.
T.B.D.
T.B.D.
T.B.D.
T.B.D.
T.B.D.
Replacement
Capacity Expansion
Capacity Expansion
Capacity Expansion
Capacity Expansion
Capacity Expansion
Estimated
Budget
T.B.D.
T.B.D.
T.B.D.
T.B.D.
T.B.D.
T.B.D.
In previous years Fuller was not able to purchase equipment because they had not received
a final approval from their corporate office. They indicate that the budget has now been
approved and that they will proceed with the purchases shortly.
All purchasing decisions will be made by the Mexican company, so potential suppliers
should contact the Mexican operation.
Company personnel say they are flexible regarding potential suppliers. They are interested
in equipment that meets their production needs and in suppliers that can commit to
providing spare parts and adequate service in México. The company also wants the supplier
to provide a spare parts kit with the purchase of each machine to ensure they will have
spare parts available when needed.
As the company has not purchased equipment lately, they do not feel that they are up-todate on new technologies and equipment for their industry.
The company can purchase from the manufacturer or a local representative; the critical
issue is a commitment of local service for the machine.
Fuller will not require financing for the purchase of new equipment. Payments will be
handled by their corporate office in the United States, and terms usually are a 50% down
payment and the balance once the equipment is in operation.
1.
2.
3.
4.
5.
Technical support.
Technology.
Price.
Brand recognition.
Flexibility.
181
Equipment Suppliers
The company does not have a preference for any specific potential equipment supplier.
They have had experience with a Mexican supplier called Abamex; they like the pricing of
the equipment, its flexibility, and the availability of spare parts. The weak points are its
unsophisticated technology and undependable technical support.
Fuller’s evaluation of packaging machinery according to its country of origin:
Origin
United States
México
Italy
Canada
Technology
Good
Regular
Very Good
Good
Flexibility
Good
Very Good
Very Good
Good
Service
Regular
Regular
Good
Good
Price
Good
Very Good
Regular
Regular
Fuller staff attend trade shows like ExpoPack and Expo Farma in México. The company
also attends cosmetics industry trade shows in France and Germany.
The company subscribes to trade publications like Reportero Industrial, but they do not
receive any specialized publication for machinery.
This company is especially interested in receiving information on filling machines, capping
equipment, and transporting systems. The company indicated that they have a limited
knowledge of the new technologies available for the cosmetics industry.
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
E-mail:
Web page:
House of Fuller, S.A. de C.V.
Ing. Javier Martínez Pineda
Plant Manager
Redención N° 17
Col. Jardines del Sur, Xochimilco
16050, México D.F.
(5255) 5624-2910
(5255) 5641-7301
jamartinez@compuserve.com.mx
N/A
182
Industrias Alen, S.A. de C.V.
Industry:
Sub Industry:
Location:
Size: (sales)
Purchasing
Potential:
Specific Business
Opportunities:
Home care
Cleaning and sanitary products
Monterrey, Nuevo León
US $280 million
US $18.3 million for 2002
Complete packaging line for bottles (Bottle
blowers, Bottle orienting machine, Filling
machine, Capping machine, Labeling machine,
Printing machine, Coding machines, Carton
form, fill, and seal machine, Sealing machine,
Palletizing machine)
NEW PLANT
Industrias Alen, a Mexican company founded in 1951, is one of the largest home care
products manufacturers in México with four manufacturing and distribution plants in
México and two in the United States. Alen employs 5,000 people and has plans to grow its
production capacity in México by building a new plant in the state of Puebla.
Alen exports to Canada, the United States, and Central America.
Product
Liquid cleaners
Toilet odor control
liquid
Acids
Liquid detergent
Kitchen cleaner
Multipurpose fabric
cleaner
Bleach, Cloth
disinfectant
Fabric softener
Cloth hangers
Insecticide
Toilet cleaning tablets
Brand
Package
Flash, Fulgor, Pinol,
Plastic bottle
Pinol Limón, Eco Pine
Flash
Plastic bottle
Sultana
X pres
Eficaz
Flash
Plastic bottle
Plastic bottle
Plastic bottle
Plastic bags
Blancatel, Cloraluz,
Clorales
Ensueño
Colorines Pack
Vape Espirales
Pinol, Flash
Plastic bottle
183
Plastic bottle
Plastic jar and bags
Cardboard box, Plastic bag
Cardboard box and plastic bag
Units
Bottle blowers / Bekum
Bottle blowers / AOKI
Bottle blowers / Katex
Bottle blowers / Uniloy
Filling machines / Equiteck
Filling machines / MRM Elgin
Filling machine / Mengibar
Capping machines / Surekap
Labeling machines / Hotmelt
Labeling machines / Logotech
Printing machines/ MP
Coding machines / Marsch
Coding machines / Markem
Box forming machines/ COMBI
Box forming machines/ FWF
Box sealing machines/ 3M
Palletizing machines/ Lantech
Bottle orienting machines
50
20
8
15
4
4
1
30
10
25
25
70
2
18
4
50
15
5
Origin
Age
US
10
100%
Japan
6
100%
Germany
3
100%
US
5
100%
US
5
60%
US
1
100%
Spain
.1
100%
US
8
70%
Germany
10
100%
US
10
80%
US
10
70%
US
5
60%
US
5
100%
US
5
80%
US
2
100%
US
6
100%
US
5
100%
US
3
100%
Industrial Alen invested US$3.5 million in packaging machinery during the last three years.
Their last acquisition of packaging equipment took place in November 2001 when they
acquired a filling machine from the Spanish manufacturer Mengibar.
Machinery
Filling machine
Brand Country
Mengibar
Spain
Industrias Alen is building a new manufacturing plant in the state of Puebla, approximately
80 miles from México City. The first stage of this new plant will have three processing and
packaging lines. The company plans to acquire US$15 million in new equipment during
2002 for this first stage. Their expansion plan calls for installing additional lines in
subsequent years, with packaging machinery investments of US$8 million for 2003 and
US$7 million in 2004.
In addition, the company plans to purchase a new packaging line for bottles for their
México City plant. This line will include bottle blowers, bottle orienting machine, filling
184
machine, capping machine, labeling machine, printing machine, coding machines, carton
form, fill, and seal machine, sealing machine, and palletizing machine.
Machinery
Units Origin Motive of Estimated
purchase Budget
Complete line for packaging in bottles
1
T.B.D Expansion
T.B.D
Alen prepares yearly investment plans for the purchase of manufacturing and packaging
equipment. Estimates of required equipment are based on expected demand growth for its
products, introduction of new products, and cash flow available for investment. The
corporate offices in Monterrey make purchasing decisions, and most purchases are made
directly through the equipment manufacturers.
The company purchases with its own funds and with bank credit. To purchase major or
imported equipment, Alen has used US ExIm Bank financing and considers vendor
financing when available.
1.
2.
3.
4.
5.
Service.
Price.
Technology.
Presence in the market.
Brand recommendations.
Equipment Suppliers
The company is highly satisfied with the functioning of machines by Katex, Bekum,
Uniloy, and Aoki because they are highly flexible and they offer excellent service and
reliability. Although they prefer these brands, the company is open to new suppliers.
According to country of origin, Alen regards packaging machinery in the following way:
Origin
United States
Spain
Germany
Japan
Technology
Regular
Good
Good
Good
Flexibility
Regular
Good
Good
Regular
185
Service
Good
Regular
Good
Good
Price
Good
Regular
Good
Good
Alen welcomes information from packaging machinery suppliers offering good solutions
for home care products. The company is interested in the whole packaging process, from
manufacturing bottles to palletizing.
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
E-mail:
Web:
Industrias ALEN, S.A. de C.V.
Ing. Omar Picazzo
Asesor de Nuevos Productos
Boulevard Díaz Ordáz # 1000,
Col. Los Treviño,
66350, Santa Catarina, Nuevo León, México.
(52-81) 8122-1049
(52-81) 8122-1594
picazzoe@alen.com.mx
www.alen.com.mx
186
Industrias LAVIN de México, S.A. de C.V.
Industry:
Sub Ind ustry:
Personal Care
Creams, gel, shampoo, nail care
liquids
Jiutepec, Morelos, México
US $8 million
US $180,000 for 2002
Location:
Size: (sales)
Purchasing
Potential:
Specific Business Gravimetric and powder filling
Opportunities:
machines, Labeling and Coder
machines, one Carton form, fill,
and seal machine.
Industrias Lavin de México is a small, privately held Mexican company that was
established in 1986 to produce personal care products. The company began by
manufacturing nail care products and now operates two plants at the same location. They
are currently producing private- label gel, nail care, body creams, and shampoos for
supermarket chains like Wal-Mart, Comercial Mexicana, Soriana, Gigante, Chedrahui, and
ISSSTE. They also manufacture a variety of similar products under their own brand, Nuvel.
This company sells mostly into the local market and is planning to export to Panama in
2002.
All of this company’s products are positioned in the private label or low-end markets,
making them known and well accepted in those segments. They consider their products to
offer better quality than other similarly priced alternatives.
Product
Shampoo
Brand
Nuvel and Private labels
Liquid body cream
Nail care products
Gel
Deodorant (stick)
Solid cream
Body lotions
187
Package
Plastic, PVC, PET containers (1
and ½ lt.)
PVC containers (1 and ½ lt.)
Plastic, PVC, PET containers
(1/4 and 1/8 lt.)
Plastic, PVC, PET containers
(1Kg, 375 and 180 gr.)
PVC container (220 gr.)
Plastic and PVC containers
(1Kg, 375 and 180 gr.)
Plastic, PVC, PET containers (1
and ½ lt.)
The company stated they have moved forward with significant investments in plant and
equipment over the past two years. They forecast that the new equipment purchases will
continue, as they must improve their productivity to meet growing competition in their
markets.
The company indicates that most of their manufacturing practices are obsolete, and many
parts of the process are still done manually. Industrias Lavin’s foremost objective is to
automate their processes and defend their market share through manufacturing efficiency.
Viscous and semiviscous
filling machines
Capping machines
Labeling machine
Coding machine
Brand
Simplex
Simplex
Units Origin Average Age
5
México
8
5
México
8
Line Reel
Accra Ply
N/A
Domino
3
1
1
1
US
US
US
US
Specification
5
2
10
8
80%
80%
90%
90%
80%
90%
This company’s last purchase of packing machinery occurred in 1999. It included a semiviscous filling machine from a local supplier, Simplex, and a used Accra Ply labeling
machine from the United States. The company spent US$118, 000 on this purchase.
Machinery
Labeling machine
2 Filling machines
Brand
Accra Ply
Simplex
Country
US
México
US $38,000
US $80,000
This company is starting a new project to manufacture sunscreens with Evernice (their own
brand) and private label for supermarkets. This undertaking will require the acquisition of
two filling, capping, and labeling/coding machine lines in 2002, for which the company has
budgeted US$180,000. Also, Industrias Lavin is planning to replace the current powderfilling machine, but they need to compare at least three possible providers and their services
available in México as well as cost.
Machinery
Gravity filling machine
(16 nozzles)
Capping machine
Coding/printing machine
Units Origin
1
T.B.D
Motive of
Purchase
Expansion
1
1
1
T.B.D
T.B.D
T.B.D
Expansion
Expansion
Expansion
188
Estimated
Budget
T.B.D
T.B.D
T.B.D
T.B.D
The company does not have any special policies for the purchasing of packaging
machinery. They look for equipment that is especially designed for the personal care
industry and prefer suppliers that already have equipment in operation in the Mexican
market.
The most important requisite is for the supplier to be able to offer adequate service in the
Mexican market and to have a secured supply of spare parts.
The company usually pays a 50% down payment for the equipment, and the balance is paid
once the machine is in operation at their facilities.
1.
2.
3.
4.
5.
Service (technical support and personnel training).
Equipment safety
Supplier’s reputation.
Delivery times.
Price.
Equipment Suppliers
As mentioned, the company is interested in working with suppliers with an adequate
support infrastructure in México.
Industrias Lavin’s evaluation of packaging machinery according to its country of origin:
Origin
United States
Spain
Germany
France
México
Korean
Technology
Very Good
Good
Good
Very Good
Bad
Very Good
Flexibility
Very Good
Good
Good
Very Good
Regular
Very Good
Service
Good
Good
Good
Regular
Good
Very Good
Price
Good
Regular
Regular
Bad
Good
Very Good
The executives from this company regularly attend two trade shows, Expo Farma and Expo
Pack, both taking place in México.
The company receives trade publications like the magazine from México’s cosmetics
association (Sociedad de Quimicos Cosmetologos de México) and others like Reportero
Industrial, Manufactura, and Cosmetics Technologies (USA).
189
The company is especially interested in receiving information on filling, sealing, and
labeling and coding machines for a new series of sunscreen products they plan to introduce
to the market in 2002. They are also interested in information on equipment that will help
them automate their processes and on tape dispensing machines.
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
E-mail:
Industrias Lavin de México, S.A. de C.V.
Ing. Gabriel Carreto
Manufacturing Director
Calle 9 Este N° 24
Col. Civac
62500, Jiutepec Morelos, México
(52) 5724-2680
(52) 5726-4050
ilmsa@prodigy.net.mx, gabrielcarreto@yahoo.com.mx
190
Industrias Selectas (Myrurgia), S.A. de C.V.
Industry:
Sub Industry:
Location:
Size: (sales)
Specific Business
Opportunities:
Personal Care
Perfumes, soap, creams, powders, deodorant
México City
US$50 Million
N/A
Plant relocation and modernization project
for 2003
Industrias Selectas is a subsidiary of the Myrurgia perfumery of Spain. The company
started operations in México over 50 years ago as a distributor for Myrurgia products, and
approximately 25 years ago they started production in México. Currently the company is
exporting products to Spain because at present it is cheaper to manufacture some products
in México.
Industrias Selectas has over 190 different product offerings packaged in México. They
export approximately 30% of their production to Spain and Central America.
Product
Deodorant
Perfumes
Powder
Soap
Cosmetics
Presentation
Stick, roll-on and spray
Crystal bottle and carton box
Plastic jar
Paper wrap and box
Blister pack
Industrias Selectas manufactures soaps, perfumes and deodorants domestically and imports
cosmetics and powders, which are imported as bulk and packed in México.
Wrapping machines for soap
Brand
ACMA
Verpackum
Custom made
Jenetron
Hamer
Filamatic
Macruz
Wrapping machines for round soap
Blister machines
PVC Thermoforming machine
(Carrousel)
Piston filling machines
Labeling and coding machines
Filamatic
Printapros
191
Units Origin
3
Italy
3
Germany
1
Spain
1
México
1
Spain
1
US
2
México
2
Italy
1
US
6
Spain
The vast majority of the packaging equipment being used by this company is European
because they give serious consideration to recommendations made by the Spanish corporate
office. Industrias Selectas also has an important base of Mexican machinery, which they
consider to be very rough and of poorer quality than imported equipment, however, spare
part and service availability is much better.
Mirurgia’s last purchase occurred in 1998 when the company acquired plastic injection and
blister machinery so they could package certain products in-house instead of sending them
out to third-party packagers.
Machinery
Brand
Jenetron
Hamer
Filamatic
Blister Machines
PVC Thermoforming machine
Country
México
Spain
US
Industrias Selectas has not purchased packaging machinery in the last three years because it
has plans to move to a new location. The company’s México City plant is surrounded by
other businesses and houses, so it has no room fo r expansion. The company plans to move
to Texcoco (near México City) in 2003, and the relocation project includes renewing a
major portion of its machinery.
Industrias Selectas defines its own packaging machinery needs and usually buys directly
from the equipment manufacturer. The purchasing decision process includes the evaluation
of at least three equipment alternatives. Considerable emphasis is placed on the vendors’
capacity to provide good local service as well as spare parts availability.
For major projects, the company’s headquarters is involved in the decision- making process,
and their final approval is required before placing an order.
After a decision has been reached, the Mexican company handles the purchasing process.
They are responsible for placing the order, negotiating a contract, and selecting the
financing scheme, which might involve internal monies and credits from the vendor.
Servicing for the machinery is provided in-house, and the equipment supplier’s technicians
are only required for major repairs.
192
1.
2.
3.
4.
Technology.
Immediate response for service and spare parts.
Spare parts.
Space.
Equipment Suppliers
Company staff members said they prefer European machinery for its superior durability.
When available, Mexican machinery is selected because of a local concern’s ability to
respond immediately to service requirements.
Origin
United States
Italy
Spain
México
Technology
Average
Very Good
Good
Average
Flexibility
Good
Good
Good
Good
Service
Poor
Good
Good
Very Good
Price
Average
Good
Good
Very Good
Industrias Selectas personnel attend trade shows in México only, with the most
representative for packaging machinery being ExpoPack. The company regularly receives
equipment literature from their parent company in Spain as well as from suppliers.
The company is highly interested in obtaining information from potential suppliers for
soap-wrapping machines and filling machines for creams, as well as from potential
suppliers for their liquid soap project.
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
Industrias Selectas Myrurgia, S.A. de C.V.
Ing.Emilio Pelegrin
CEO
Lago Alberto #436
Col. Anahuac
México, D.F.
(5255) 5260-2144, 5260-1583
(5255) 5260-2297
193
Procter & Gamble Manufactura (P&G), S. de R.L. de C.V.
Industry:
Home, personal care, pharmaceutical, beverage and
food products
Sub Industry:
Detergents and soaps, home care, baby care, women’s
products, tissues and towels, beauty/health care
products
Location:
México City
Size: (sales)
US $1.5 billion
Purchasing Potential: US $12–15 million for 2002 and 2003.
Specific Business
Case erecting machines, Case IDs, Case closings, Case
Opportunities:
handlings, Hotmelt equipment, Gift/Gadgetpromotional inserters, Carton fillers (powder), Case
filling, Coding and Labeling systems, End of line
automation
Procter & Gamble Manufactura, is the local subsidiary of the US multinational corporation
Procter & Gamble. It began operations in México in 1948 with the construction of a
manufacturing facility in the Vallejo area, located in the heart of México City.
The Mexican operations for this company employ over 5,000 people and include six
manufacturing facilities and a corporate office.
The company has an extensive product line, which has now grown to include the Clairol
line as a result of the recent acquisition of this company by P&G. This acquisition will
generate new investments in plants and equipment as its objective was to position P&G as
the market leader in hair care products in the Latin American region.
P&G’s operations in México are divided into two main divisions:
1) Compañía Procter & Gamble México, S. de R.L. de C.V—This division’s core activity is
the distribution and sale of P&G’s products throughout México.
2) Procter & Gamble Manufactura, S. de R. L. de C.V.—This division is responsible for the
manufacturing of all products and the management of product inventories and distribution.
This division operates six manufacturing facilities in México, which are:
194
Industrial Facility
Activity
The largest detergent plant in the world. It manufactures various
Vallejo Plant
brands of detergents including Ariel, Bold 3, Salvo, and Rindex
Poniente 146 No. 850
and Downy fabric softener. About 60% of the production is
exported to various markets in the Americas. The Vallejo complex
Entre A. Ceylán y Norte 59
also houses the GBS LA Strategic Purchases and the corporate
02300 México D.F.
offices for LA F&HC packaging engineering.
Manufactures health care products including Pepto-Bismol, Vicks,
Naucalpan Plant
and Crest toothpaste among other products. This plant exports
San Andrés Atoto No. 326
Col. San Francisco Cuautlalpan about 80% of its production to the United States, Canada, and the
Caribbean.
Naucalpan de Juárez
53560 Edo. De México
Produces soaps including Safeguard, Zest, and Camay. One of the
Talisman Plant
largest soap plants in the world, it exports about 80% of its
Av. Talisman No. 210
production to many areas, including Japan, Saudi Arabia, Latin
Col. Tres Estrellas
America, and the Caribbean.
Del. Gustavo A. Madero
07820 México D.F.
Manufactures sanitary pads such as Always and Diapers such as
Estrella Plant
Pampers. The plant exports to the Latin American and Caribbean
Poniente 146 No. 730
markets.
02300 México D.F.
One of P&G’s most important investments in México. The
Mariscala Industrial
complex includes one sulphate processing plant, one sulphurated
Complex
(biodegradable reagent) plant, one shampoo manufacturing plant,
Km. 16 Autopista Querétaro–
and one hand and body liquid soap plant. Production from this
Celaya
facility is also exported to various markets including the United
Calera de Obrajuelo
States, Latin America, and the Caribbean.
Municipio de Apaseo el
Grande
Guanajuato
38180 México
Tissue Paper Manufacturing P&G’s most recent investment in México. The plant makes facial
and toilet tissues and paper towels. This plant also exports to other
Plant
Latin American markets.
Km. 115.5
Carretera Los Reyes Zacatepec
90300 Apizaco, Tlaxcala
195
P&G manufactures and markets in México more than 50 different products with more than
80 different formats and packages, the most representative are:
Product
Laundry
Brand
Ariel, Ace, Rindex, Dryel,
Downy, Downy Revitalizer,
Tide, Bounce
Detergents Salvo, Salvo Gel, Dawn
Home care Maestro Limpio, Febreze,
Swiffer, Fit
Soap bars
Hair
products
Dental care
Deodorants
Health care
Diapers
Sanitary
pads
Tissues,
toilet
paper,
paper
towels
Camay, Safeguard, Zest
Head & Shoulders, Pantene,
Pert Plus
Crest
Secret
Vicks Cough/Cold Products,
Pepto-Bismol, Metamucil
Pampers
Always
Charmin, Bounty, Puffs, Lirio,
Lunch, Cheff
Package
Plastic bag, carton boxes, PET and PVC
bottles with spray applicator as well as PVC
containers
Plastic bag, carton boxes, PVC containers
Plastic bag, carton boxes, PET and PVC
bottles with spray applicator as well as PVC
containers
Wrapping with plastic paper
PVC bottles
PVC tube
PVC sticks
PVC, glass and PET bottles, carton box, PVC
and aluminum containers, plastic blister
Plastic bags, PVC containers
Individual plastic bags, carton boxes
Plastic bags, carton boxes
Information regarding process and packaging machinery considered confidential, however,
the company did provide general information on the types of equipment they use in their
manufacturing facilities throughout Latin America.
About 50% of their packaging machinery consists of bagging machines for powders,
followed by filling machines for liquids and powders. The company also has a large
number of packaging lines that include sealing, labeling, coding, transport, and palletizing.
196
Sample list of packing machinery:
Bagging/Pouches machines / PMB-UVA (Germany and Holland)
Case/Tray wrapping machines
Closing machines
Container & component handling machines
Vertical form, fill & seal machines (powder, liquid and viscous)/ VFFS
Inspecting machines
Marking machines
Packaging support/specialty equipment
Wrapping machines
Pallet forming, dismantling, and securing machines
Transporting systems
Capping machines
Labeling machines
Coder machines
Container handling machines
The company’s most recent purchase of packaging machinery occurred in November 2001,
when they invested US$260,000 in one Scoring Laser Machine LMY from Germany. This
machine was purchased for production of a new product at the Vallejo facility.
Machinery
Scoring laser machine
Carton form, fill, and
seal, bagging and
wrapping line
Brand Country
LMY
Germany
Ronchi Italy
Cost
US $260,000
US $140,000
During the 2000–2001 period, P&G replaced their bagging equipment at all their plants in
Latin America. They replaced Try Angle equipment with PMB-UVA, which is a joint
venture between a German and a Dutch company.
The value of the purchase reached US$18 million for 120 machines. About 80 of these
machines will be installed at the Vallejo plant.
P&G Manufactura has a US$10 million purchasing budget for acquiring new packaging
machines during 2002 for all of the Latin American region. Future purchases will be for
equipment in general to improve production and enable the launch of new products and
formats.
197
The following list presents some of the types of machines that are contemplated for future
purchases:
Machinery
CASE ERECTING
Bliss type case erecting (capable to deliver 25 to 35 cpm)
RSC case erecting (high speed)
CASE ID
Online ink-jet printers for corrugate containers (high resolution
for bar code printing)
Online laser printers for alpha numeric codes
CASE CLOSING
Hot melt case sealers, capable of automatic refilling and high
speed (>40 cpm)
CASE HANDLING
Empty case delivery systems for 100-plus cases per minute
HOT MELT EQUIPMENT
GIFT / GADGET–Promotional Inserters
CARTON FILLERS (Powder)
CASE FILING
CODING SYSTEMS Ink Laser etc.
END OF LINE AUTOMATION
WEIGHING SYSTEMS
Origin
T.B.D
Motive of Purchase
Expansion
T.B.D
Renovation
T.B.D
Increase productivity
T.B.D
Increase production
T.B.D
T.B.D
T.B.D
T.B.D
T.B.D
T.B.D
T.B.D
Expansion
Expansion
New product line
New product line
Renovation
Increase productivity
New product line
The corporate equipment purchasing office for the Latin America region is housed at the
Vallejo complex in México City. This office is responsible for reviewing all purchases for
both process and packaging equipment going to their 16 plants in the region: México (6),
Venezuela (2), Brazil (2), Argentina (2), Guatemala (1), Peru (1), Colombia (1), and Chile
(1).
P&G does not have any special agreements with equipment suppliers, but a corporate
approval is required to introduce new equipment into their facilities in the case of a
“global” project.
For new suppliers, the company usually runs a series of equipment tests at the equipment
manufacturer’s facilities then introduces a single piece of equipment into one of P&G’s
plants for further testing.
For every purchase, the company defines what is the state-of-the art equipment or
technology for that particular application. Once this is defined, the company identifies
potential suppliers that are invited to present proposals. P&G negotiates terms with the
selected supplier.
198
The company purchases equipment with its own cash flow. Common payment terms are
40% down payment, 40% at delivery, and a final payment 30 days after the equipment is in
operation at their plant.
The most important factor in a P&G decision to purchase equipment is the result of the
tests they conduct on proposed equipment. If a supplier is approved, it can become a
“global” supplier for the group.
1.
2.
3.
4.
5.
Efficiency.
Global service.*
Cost.
Flexibility.
P&G corporate’s recommendations.
* P&G also requests a spare parts kit, training on the use of the equipment, and local service and support.
Equipment Suppliers
During the negotiations for the purchase of new equipment, P&G signs a service agreement
with the supplier outlining the terms of the service and support it will provide locally to
each machine it sells into this company.
The company indicates it gives an edge to existing suppliers but that it is open to evaluating
new alternatives.
P&G evaluation of packing machinery according to its country of origin:
Origin
United States
Spain
Germany
Holland
France
Technology
Good
Good
Very Good
Very Good
Good
Flexibility
Good
Regular
Very Good
Very Good
Regular
Service
Regular
Regular
Good
Very Good
Good
Price
Regular
Regular
High
Regular
Regular
P&G personnel always attend local trade shows like ExpoPack and international shows like
Pack Expo in Chicago and Las Vegas as well as others in Dusseldorf, Germany.
The company also regula rly receives information from potential suppliers and also consults
PMMI’s CD-ROM, which they consider a useful tool for learning about technologies and
potential US and Canadian suppliers.
199
P&G’s packaging engineers indicated that very short-term opportunities for US and
Canadian suppliers exist for Carton fillers (Powder).
Company Name:
Procter & Gamble Manufactura, S. de RL de C.V.
Contact:
Ing. Rafael de La Hoz
Position:
GBS LA Strategic Purchases
Address:
Poniente 146 N° 850
02300, México D.F.
Telephone:
(52) 5724-2680
Fax:
(52) 5726-4050
E-mail:
delahoz.ra@pg.com
Web page:
www.pg.com.mx
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
E-mail:
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
E-mail:
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
E-mail:
Ing. Hans Hatmann
LA F&HC Packing Engineering
02300, México D.F.
(52) 5724-2786
(52) 5724-2788
hartmann.h@pg.com
Ing. Luis Mazzei
02300, México D.F.
(52) 5724-2782
(52) 5724-2788
mazzei.l@pg.com
Ing. Ituriel Cárdenas
02300, México D.F.
(52) 5724-2792
(52) 5724-2788
cardenas.i@pg.com
200
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
E-mail:
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
E-mail:
Ing. David E. Flores Salorio
Latin America F&HC Engineering
02300, México D.F.
(52) 5724-2836
(52) 5724-2788
flores.d@pg.com
Procter & Gamble de México, S. de RL de C.V.
Ing. José Antoni Junco
Latin America F&HC Engineering
02300, México D.F.
(52) 5724-2747
(52) 5724-2788
junco.a@pg.com
201
Productora de Cosméticos, S.A. de C.V. (Wella)
Industry:
Sub Industry:
Location:
Size: (sales)
Specific Business
Opportunities:
Personal Care
Hair products
México City
US$ 40 Million
US$ 500,000 for 2000 and 2001
Carton form, fill, and seal machine,
Labeling machines, Filling and Capping
machines for liquids
A) Company Description:
Productora de Cosmeticos was established 30 years ago as the local Wella Company, a
German world leader in hair care products dating back to 1880. Productora de Cosmeticos
manufactures and distributes Wella products in México and other countries in Central and
South America, including Venezuela, Colombia, and Peru.
The company manufactures hair dyes, shampoos, perms, decoloring, and other hair
treatments. The company’s main local brands are Koleston, Viva Color, Color Perfect,
Color Touch, Wellapon, Yerbacid, Crisan, and Soft Color.
Wella packs its products mostly in capped plastic bottles. Most of its hair dyes are also
packed in plastic bottles, but this is being changed to aluminum sachets. Dyes are also
individually packed in carton boxes wrapped in cellophane, containing also rubber gloves
packed in a plastic bag.
Individual products are also packed for shipping in carton boxes palletized with stretch
plastic.
202
Tube fill and seal machines
Bottle filling and capping
machines
Aluminum sachet filling
machines
machines
Labeling machines
Overwrapping machines
Ink-Jet coding machines
Wraparound lidding
machines (Stretch)
Brand
Units
Origin
Unipac
IWKA
Norden
Gasti
MRM Elguin
Rationator
Brinder
CAM
Simplex
Merz
1
2
1
2
3
2
1
2
2
1
US
Germany
Sweden
Germany
US
Germany
Germany
Italy
Germany
Germany
CAM
IWK
Pago
Combina
Domino
PRV Penta
Image Linx
Domino
Acuprint
Debeck
N/A
2
2
3
3
1
1
3
6
5
6
2
Italy
Germany
Italy
Germany
US
Italy
US
US
US
México
US
Age
12
80%
12
80%
4
100%
10
90%
12
80%
9
10
90%
80%
12
10
80%
80%
About 60% of the machinery used in this plant is German, 20% from the United States, and
the remaining 20% came from Italy. The company believes that packaging machinery
offered by European suppliers, especially Italian and German, is the most technologically
advanced for all uses except for coding where the United States is the leader.
This company’s last important purchase of packaging machinery was in October 2001
when they acquired a cellophane wrapping machine from German supplier Pester. The
company spent close to US$100,000 in this acquisition.
Productora de Cosméticos has not yet developed its budget for acquisitions of packaging
machinery during 2002, however, they mentioned the need for a carton form, fill, and seal
machine, a labeling machine, cellophane wrapping machine, and a filling and capping
machine for liquids. These acquisitions will likely take place in the second half of 2002
except for the cellophane wrapping machine. It will be supplied by PRB, an Italian supplier
203
that is in final negotiations for the sale of this machine. The company will pay US$107,000
for this machine. The company also mentioned that it most likely will select IMA to supply
the filling machine.
Productora de Cosméticos makes purchasing decisions locally but relies on
recommendations from its parent company in Germany. The local company sends
information on its requirements (that, is type of packaging and desired speed) to suppliers
to solicit proposals. The company compares three to four proposals before making a
decision.
Productora de Cosméticos informs Wella in Germany before presenting the purchase order.
Wella checks with its other manufacturing facilities to see if such a machine is available for
sale to México.
When Wella introduces a new product to be manufactured by several of its facilities, the
parent company chooses the equipment and negotiates the global purchase with the
supplier.
The local company does purchase from the local representatives of their suppliers. They
usually purchase from equipment suppliers with which they’ve had previous experience.
1.
2.
3.
4.
5.
Versatility to package various products with the same machine.
Cost.
Previous experience with equipment manufacturer.
Technical support.
Delivery schedule and financing.
Equipment Suppliers
The company has no specific agreements with any equipment supplier. But the company
has a strong preference for German equipment, and the parent company is actively involved
in selecting equipment suppliers for its subsidiaries. The local company considers the cost
for spare parts and service for German equipment to be very high, but they are willing to
pay the price because of the machine’s speed and versatility.
The company provides regular maintenance to its equipment with its own personnel but
relies on the equipment suppliers to train their personnel both for operating and repairing
the equipment. The company also hires the suppliers to repair the equipment.
Spare parts are purchased directly from the manufacturer or from their distributors in the
United States, as local representatives seldom have spare parts available.
204
Origin
United States
Germany
Italy
Technology
Good
Very Good
Good
Flexibility
Good
Very Good
Very Good
Service
Good
Good
Average
Price
Good
Expensive
Expensive
Productora de Cosméticos attends ExpoPack and ExpoFarma in México, and company
directors visit other shows in Europe. The company subscribes to trade publications for the
pharmaceutical and cosmetics industries. The company also searches for potential suppliers
via the Internet.
The company is interested in receiving information on suppliers for box form, fill, and seal
machines, sachet filling, labeling equipment, and capping machines.
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
E-mail:
Productora de Cosméticos, S.A. de C.V. (Wella)
Ing. Tonatiuh G. Sparza
Maintenance Manager
Camino a San Lorenzo #858
Deleg. Iztapalapa
09850, México D.F.
(52) 5624-7585, 5624-7591
(52) 5612-8020
tgsparza@wella.com.mx
205
UNILEVER Home and Personal Care, S.A. de C.V.
Industry:
Sub Industry:
Location:
Size: (sales)
Specific Business
Opportunities:
Personal Care
Face care products (creams, lotions, cleansers, etc.),
shampoos, conditioners, roll-on and stick deodorants,
body creams and oils, compact powders (cosmetics)
Cuernavaca, Morelos
US$260 million
US$3.2 million
Filling, Capping, Labeling, and Carton form, fill, and
seal machines
Unilever HPC (Home and Personal Care) is a wholly owned subsidiary of Unilever Group
México. Unilever acquired this facility in 1985 from the US company Chesborough Pond’s.
Most of the production of this facility is sold in the Mexican market. About 15% is
exported to other Latin American countries and Israel and a small portion to Europe.
This company also imports and distributes other products from Unilever’s personal care
line, like Dove and some Pond’s products, which are imported from the United States.
This Unilever division manufactures several product lines at this facility. Some of
Unilever’s most important brands are Pond’s, Rexona, Dove, and Suave. The principal
products that are packaged at this facility are:
Product
Facial cream
Brand
Pond’s
Shampoo / Conditioner Helen Curtis,
Suave, Sedal
Talc
Efficient
Hair gel
Aqua Net
Deodorants
Rexona, Axe,
Patrich, Impulse
Hair spray
Aqua Net, Suave
Hand cream
Vasenol
Petroleum jelly
Cleansing lotion
Vaseline
Pond’s
Package
Plastic jar (7 different versions from
120 to 470 ml)
Plastic with “tapafacil” cap
Plastic bottle
PET jar (600 and 175 ml)
Plastic bottle, roll-on, bar, spray
Aluminum Bottle
Plastic bottle (60, 295 and 443 ml)
Plastic tube (177 ml)
Plastic Jar
PET bottle
All products are cartoned and palletized manually.
206
Unilever HPC’s manufacturing facility in Cuernavaca, Morelos, operates 16 lines using
diverse machinery that includes the following:
Brand
Filling machines for liquids
and viscous products
(vertical and rotative)
Filomatic/
Comadis
Misard
Ronchi
Purdy
Colton Hope
Capping machines
Custom made
Krones
Labeling machines
Their own
Krones
Ink-jet coder
Videojet
Case forming and closing
CAM
Group package “cellophane” CAM
Tape dispensing machine
Devek
Cooling tunnels
Pallet machine
Units Origin Average
Specification
Age
3
15
90%
1
10
2
2
8
3
7
3
14
2
2
12
4
1
México
US
México
US
US
US
US
2
3
15
10
2 to10
2
10
2
5+
3
3
90%
90%
90%
90%
75%
90%
75%
90%
80%
90%
80%
México
3 to20
95%
Italy
Italy
At the end of 2000 Unilever HPC acquired some machinery to satisfy their growing
packaging needs. One of the machines was a 15-year-old filling machine they purchased
from a sister company in Chile. Other machinery bought that year included:
Machinery
Line for roll-on deodorants including
capping and labeling machines
Brand Country
Krones
US
Future machinery purchases that are being considered by Unilever HPC, will include the
following equipment:
Machinery
Units Brand
purchase
Filling machine
3 or 4 Ronchi Replacement US$500,000 each
Capping and labeling machine
3 or 4 Krones Replacement US$400,000 each
Carton form, fill, & seal machine 3
Krones Replacement
N/A
207
For defining future equipment needs, the company deve lops sales estimates for the
following years and analyzes whether their existing manufacturing capacity will be able to
support the expected demand. Other factors they evaluate are the productivity at each
production line and if their operation could be made more efficient. There are also some tax
and depreciation issues that are considered for defining the timing in which they will
proceed with their equipment purchases.
The company has estimated it will invest US$3 million during 2002 for the purchase of
packaging machinery. The selection process for new equipment is initiated by the facility in
México, which defines potential supplier and equipment alternatives. The local operation
consults with a corporate department, Global Technology Center, which operates two
centers for Unilever, one in England and the other in the United States. These centers are
constantly evaluating suppliers and equipment they could recommend to their
manufacturing facilities worldwide.
Once recommendations are received from the Global Technology Centers, a final decision
is reached by the facility in México.
All equipment decisions are made around the specifications of the company’s products,
those suppliers that present the alternatives that best match the company’s requirements are
considered. The company indicates that it is willing to take any new technology risk as long
as the proposed machinery meets their manufacturing requirements.
The company purchases equipment with its own cash flow and usually pays a 30% down
payment, a schedule of payments as the machine is being built, and a final payment once
the machine is in operation at their facility in Cuernavaca.
1.
2.
3.
4.
Equipment quality and efficiency.
Price.
Service.
Technical support.
Equipment Suppliers
Unilever HPC México prefers US machinery for their manufacturing processes. As for
packaging machinery, they are already using Italian equipme nt from Ronchi, which was
recommended to them by their Global Technology Center, with very good results.
Ronchi is becoming the favorite packaging equipment brand at a corporate level. They are
very satisfied with the quality and flexibility of the equip ment and the technical support
they have received from the manufacturer. They are not as satisfied with the service they
are receiving from the local representatives.
208
Equipment maintenance is performed by their internal technical staff, which is trained by
their machinery suppliers. The company purchases spare parts directly from the equipment
manufacturers, and in some cases, it purchases some custom- made spare parts in México
that are used until the original spare part is received.
Unilever has some agreements with packaging machinery suppliers at a corporate level,
where they receive volume discounts due to the large volume of equipment purchased by
this multinational firm.
Unilever HPC México’s evaluation of packing machinery by country of origin:
Origin
United States
Germany
Italy
Technology
Very Good
Very Good
Very Good
Flexibility
Good
Good
Very Good
Service
Good
Good/Average
Average
Unilever HPC staff attend national and international trade shows that exhibit packaging
machinery. They visit ExpoPack in México and various trade shows in Germany.
The company also receives monthly trade show publications like Manufactura and
Reportero Industrial.
Unilever HPC México is interested in receiving information from new potential suppliers of
packaging machinery specifically for filling, coding, and capping machines.
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
E-mail:
Web page:
Unilever de México, S.A. de C.V.-HPC
Mr. Fernando Romero C.
SHE Plant Manager
Calle 21 E # 1
62500, Civac, Jiutepec. Morelos México
(5277) 7329-1037
(5277) 7329-1143
fernando.romero@unilever.com
www.unilever.com.mx
209
(División La Campana)
Industry:
Sub Industry:
Location:
Size: (sales)
Specific Business
Opportunities:
Personal care
Antiseptics (mouthwash), creams, over-thecounter products (vitamins)
México City
US $30 million
N/A
Filling viscous and semiviscous machines,
Labeling machines, Coding machines,
Blister machines, Other equipment
Grupo Warner Lambert México Division La Campana began operations in México 36 years
ago. It is the local subsidiary of Pfizer/Warner Lambert, which manufactures personal care
products.
This company division operates two plants in México; one is located in México City, where
they produce liquid and solid creams under the Lubriderm name, which is a wellrecognized brand in the Mexican market. They also manufacture their oral hygiene
products like Listerine and Astringosol at this facility. The other plant is located in San José
Iturbide in the state of Guanajuato, where they produce over-the-counter (OTC) products
and an antiseptic ointment called La Campana.
Pfizer and Warner-Lambert merged in 2000 to form the world’s fastest- growing major
pharmaceutical company.
Through the association with Pfizer; the Pfizer/Warner Lambert group operates other
facilities in México. A Pfizer plant located in Toluca in the state of México manufactures
pharmaceuticals; an Adams plant manufactures gum; and a gelcaps plant manufactures
vitamins. The last two facilities are located in the city of Puebla.
The La Campana division sells most of its production in the local market. They export a
small portion, mostly of “La Campana” ointment, to the US and Central American markets.
Product Brand
Liquid cream Lubriderm
Solid cream
Antiseptics
Syrups
Package
High density polyethylene bottles of
180, 300, 480 ml.
Pomada de la Campana Plastic container, aluminum tube
Listerine, Astringosol PET bottles of 250, 500, 750 ml.
Agarol, Benadril,
PET and glass bottles of 100, 150,
Benadrex
180, 120 ml.
210
Following is a sample list of equipment in operation at the company’s México City plant.
Machinery Type
Filling liquid machine/ Kalish
Filling liquid machine/ Cozzoli
Carton form, fill, and seal machine/ IWKA
Capping machines/ Kalish
Labeling machines/ Kalish
Coding machines:
Domino
Image
Video Jet
Palletizing machine/ Lantec
Blister machine/ Uhlman
Units
Origin
2
3
3
2
2
Canada
Italy
Germany
Canada
Canada
5
3
2
1
1
US
Italy
US
US
Germany
Age
5
85%
15
85%
15
85%
5
85%
5
85%
2
2
2
5
16
85%
85%
85%
85%
80%
This company most recently purchased packaging machinery in 2001, when they invested
US$35,000 in three coding machines from Image and Videojet.
Machinery
Coding machines
Brand
Image
Video Jet
Country
Italy
US
Cost
US $35,000
The company is planning to close their manufacturing plant in México City and transfer all
personal care production to the Toluca and Puebla plants and to a plant in Colombia.
The La Campana division plans to sell about 70% of their processing and packaging
equipment and purchase new equipment to improve production efficiency.
This plan will be implemented in 2004, so during 2002 and 2003, the company will be
evaluating which equipment should be purchased and selecting potential suppliers.
Because of this plan to relocate production, the company does not have a purchasing plan
for 2002. They expect that their investment in new equipment and in the expansion of their
facilities will have a cost of between US$10 million and US$15 million.
211
Some of the equipment under consideration for purchase for their new project will likely
include:
Machinery
Units
Origin
Filling liquid machine/ Kalish /Cozzoli
Capping machines/ Kalish
Labeling machines/ Kalish
Blister machines/ Uhlman
1
1
1
1
1
Canada
T.B.D.
Canada
Canada
Germany
Motive of
purchase
Modernization
Modernization
Modernization
Modernization
Modernization
Estimated
Budget
T.B.D.
T.B.D.
T.B.D.
T.B.D.
T.B.D.
Warner Lambert/Pfizer has a series of purchasing policies that must be followed by all their
facilities worldwide. One of such guidelines seeks to standarize the equipment, processes,
technologies, and suppliers throughout all facilities. They believe that this policy makes
production more efficient and reduces their equipment and spare parts costs.
New equipment needs are identified at each facility. They develop a technical and
economic analysis of the proposed investment and send the information to their corporate
office in New York for approval. The local company requests proposals from various
suppliers and makes a final decision on the purchase.
The company has an internal technical staff that is responsible for providing most of the
maintenance for their equipment. In some cases, like their Uhlman blister machine, they
contract maintenance service to the equipment manufacturer, which sends a maintenance
crew from Germany. This service was negotiated with the supplier at the time of purchase.
When necessary, all of the company’s suppliers provide technical training on the operation
and maintenance of the equipment to this company’s workers and maintenance staff.
1.
2.
3.
4.
5.
6.
An existing relationship with Warner Lambert and/or Pfizer.
Equipment quality.
Technical support.
Vendor financing.
Price.
Previous experience with supplier and / or and brand reputation.
Equipment Suppliers
The company indicated that they have a preference for European equipment but that they
evaluate potential suppliers from any country. Meeting the company’s technical and
manufacturing requirements is more important than the origin of the machines.
212
Warner Lambert División al Campana indicated they have a strong preference for two
suppliers, Uhlman from Germany and Kalish from Canada. The first, a long-time supplier,
has installed equipment at all of their plants worldwide. But getting spare parts can take a
long time. The company mentioned that the equipment from Kalish has excellent
technology and is very flexible in its applications, but that the company does not offer
adequate post-sales service in México.
Origin
United States
Germany
Canada
Technology
Good
Very Good
Very Good
Flexibility
Good
Good
Very Good
Service
Regular
Very Good
Average
Price
Average
Not Good
Very Good
The company is interested in receiving information on new packaging technologies for
liquid hand creams, antiseptics, and syrup s. They are also interested in machinery for
blisters; carton form, fill, and seal; palletize; filling for viscous and semiviscous products;
labeling machines; coding machines; and other related equipment.
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
E-mail:
Web page:
Grupo Warner Lambert México, S.A. de C.V. (División la Campana)
Mr. Jorge A. Fernández B.
Engineering, Maintenance & EHS Manager
Av. División del Norte #3443
Col. San Pablo Tepetlapa
(52-55) 5326-8565
(52-55) 5326-8570
jorje.fernandez@pfizer.com
www.pfizer.com
213
VI.
6.1.
The Pharmaceutical Industry
Industry Overview
The Mexican pharmaceutical market is estimated at US$6.5 billion, of which 82% is
represented by prescription drugs. The country imports a significant portion of its internal
consumption, estimated at about 22%,it while exports about 18% of its local production.
Mexican Pharmaceutical Sector
(Million US$)
Imports
Local production
Exports
Total Market
1998
1,702
4,202
1,311
4,593
1999
1,787
4,538
1,495
4,830
2000/e
1,876
4,901
1,721
5,056
2001
N/A
N/A
N/A
6,455*
Source: HDC with data from Bancomext and AMIIF / * Numbers were obtained from
different data series: 2001 estimation comes from Segmento–Itam Enero-Febrero 2002,
P.12 with data from PMM Pharmaceutical Mkt. México
The import of pharmaceutical products is growing by a lesser rate than local production and
exports. It is expected that in the coming years, imports of pharmaceutical products will
decrease further as they continue to be substituted by local production.
Some of the segments in the Mexican pharmaceutical market that have experienced the
highest growth during the past five years are vitamins, herbal products, and nutritional
supplements, which are expected to continue growing at average rates of 16% per year.
Competition in these segments is intense, and new investment is expected for the
construction of additional manufacturing facilities in México to satisfy both growing local
demand and increasing export to other Latin American countries.
6.2.
According to information maintained in the register of companies at the Ministry of
Commerce and Industrial Production (SECOFI), there are 249 pharmaceutical companies in
México, employing 44,985 people. The breakdown by size is as follows:
Type
Employees
No. of Companies
%
MICRO
SMALL
MEDIUM
LARGE
Total
0 to 30
31 to 100
101 to 500
501+
85
69
64
31
249
34.14%
28.05%
26.02%
12.60%
100.00%
The vast majority of these companies are located in México City (Distrito Federal).
214
Location of Pharmaceutical Companies
State
No. of Companies
Distrito Federal
Jalisco
169
26
Estado De México
26
Puebla
7
Queretaro
4
Other
17
TOTAL
249
6.3.
Key Players
Large multinational companies operating local manufacturing facilities are the dominant
players as they control over 65 % of the pharmaceutical market in México.
Top Pharmaceutical Producers in México
(Figures in millions of US dollars)
Company Name
Colgate Palmolive
Bristol Myers Squibb México
Grupo Novartis México
Merck Sharp & Dohme de México
Boehringer Ingelheim Promeco
SmithKline Beecham México
Eli Lilli y Compañia de México
Pfizer
Rhodia México
Grupo Prove-Quim
Sales
2000
925
514
455
279
233
221
199
188
187
37
Sales
2001*
N/A
N/A
N/A
280
260
N/A
130
300
N/A
N/A
Source: Expansion Magazine–Top 500 Mexican Companies. Figures in dollars using
exchange rate of 9.2 MX pesos per US$1.0
* This information was received from the companies during the interviews. It might
lack precision as to the actual sales figures for these companies.
6.4.
Seven pharmaceutical companies were interviewed for this report. Data gathered indicates
that Italian and German packaging machinery have a much stronger penetration in this
market than US equipment.
215
Installed Packaging Machinery by Country of Origin
4%
3%
4%
Italy
11%
41%
Germany
US
Mexico
Sweden
13%
England
Other
24%
Of the pharmaceutical companies interviewed, six were large multinationals and only one is
a Mexican company. Combined purchasing budget for these nine companies is US$7.05
million.
216
6.5.
Company Profiles
APOTEX (Protein, S.A. de C.V.)
Industry:
Sub Industry:
Location:
Size: (sales)
Specific Business
Opportunities:
Pharmaceutical
Patent medicine
México City (D.F.)
US$200 million
US$300,000
Tablet dispensing machine,
Frask filling and capping
machine, Powder compacting
machine, Labeling Machine
Protein S.A. de C.V. is the Mexican subsidiary of Toronto-based company APOTEX.
Founded in 1974 by Dr. Barry Sherman, today APOTEX is the largest pharmaceutical
company in Canada. It manufactures 167 different medicines in over 450 different formats.
The APOTEX group invests over US$83 million per year in research and development,
positioning itself among the 17 companies with the largest R&D investments in Canada.
In México, APOTEX has one plant owned by its Mexican subsidiary Protein. The Mexican
company has 400 employees and four production lines: one for tablets, one for powders,
one for liquids, and one for creams. Protein manufactures over 50 products in 150 different
formats and has over 1,300 clients in México.
Protein manufactur es over 50 different medicines based on Electrolytes, Naproxen,
Methalcopramide, Miconazole, Ranitidine, and Metronizadole.
Product
Package
Cellophane envelope
Flask
Blister
Tube
Cellophane
Flask
Electrolytes
Naproxen
Methalcopramide
Micronazole
Ranitidine
Metronizadole
Protein has four packaging lines installed in its México City plant: one for tablets, one for
powders, one for liquids, and one for creams or semiviscous products. The most important
packaging machinery of the company is as follows:
217
Machinery Type
Units
Origin
1
1
Italy
Italy
1
2
1
1
2
1
1
Argentina
Spain
Italy
US
Germany
Canada
US
Blistering machine / Famar
Carton form, fill, and seal machine /
Sanasi
Blistering machine / BlickPack
Envelope packaging machine / Serpack
Envelope packaging machine / Tremar
Envelope packaging machine / Dirmatir
Tube packaging machine /Arenco
Labeling machine /Char Lapier
Labeling machine /Label air
Age
12
80%
12
80%
8
3
15
7
4
2
2
80%
80%
80%
80%
80%
80%
80%
In addition to this major machinery, the company’s packaging lines are complemented by
conveyors, bulk handling machines, inspection and coding equipment, counting systems,
and sterilizing machines.
Protein invests continuously in upgrading and expanding its packaging machinery installed
base. In the last three years, the company spent US$570,000 on packaging machinery, with
investments of US$250,000 in 2000, US$170,000 in 1999, and US$150,000 in 1998.
The latest acquisition of packaging machinery was an envelope-packaging machine
acquired from the Mexican distributor of Serpack from Spain.
Machinery
Envelope packaging machine
Brand
Serpack
Country
Spain
As mentioned before Protein is constantly investing in improving and expanding its
installed base of packaging machinery. The company has procurement plans, which have to
be approved by the general director, and major purchases (machinery of over US$100,000)
must be approved by the APOTEX headquarters in Toronto.
Future procurement plans pending approval include:
Machinery
Tablet packaging line
Frask packaging line
Powder compacting machine
Labeling Machine
Units
Origin
1
1
1
1
Europe
Europe
N/A
N/A
218
Motive of
purchase
Expansion
Expansion
Replacement
Replacement
Estimated
Budget
N/A
N/A
N/A
N/A
The new lines will be installed in a new area of the plant; the other machines will replace
existing machinery. Protein’s expansion pla n will require investments of approximately
US$300,000 per year for the next three years.
Protein follows the procurement policies of APOTEX, which include evaluating at least
three potential suppliers. The company also bases its candidate selection process on
recommendations of the headquarters in Canada, so it is recommended that potential
suppliers approach APOTEX in Canada in addition to approaching Protein in México.
All purchases need approval from the general director in México, and major purchases must
be approved by the headquarters in Canada.
Protein generally uses export credits for the acquisition of new machinery. The company
has used ExIm Bank and other ECA credits in the past. Depending on the cost of the
machinery, the company pays 50% in advance, and the rest is paid through financing.
1.
2.
3.
4.
5.
Price.
Technical support.
Brand recognition.
Availability of spare parts and service.
Contacts.
The company prefers European machinery due to past experience and high precision of this
equipment. They mentioned that US equipment suppliers provide better service and spare
part availability, however, they feel the United States still lags behind European packaging
manufacturers for pharmaceutical products.
The company prefers US equipment for coding and labeling machines and conveyors.
Origin
United States
Germany
Italy
Spain
France
South America
Technology
Good
Very Good
Very Good
Average
Good
Average
Flexibility
Good
Good
Good
Average
Good
Good
219
Service
Good
Good
Good
Average
Good
Good
Price
Good
Average
Good
Good
Good
Good
Protein is interested in receiving information from manufacturers of machinery for
pharmaceutical products. The company is especially interested in information on packaging
machinery for tablets and flask packaging.
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
E-mail:
Protein, S.A. de C.V.
Q.F.B. David Sosa
Production Manager
Añil #865
Col. Granjas México
México D.F.
(52-55) 5657-0888
(52-55) 5654-4432
dsosa@apotex.com.mx
220
Boehringer Ingelheim Promeco, S.A. de C.V.
Industry:
Sub Industry:
Location:
Size: (sales)
Specific Business
Opportunities:
Pharmaceutical
Patent drugs, vitamins, other related
products.
México City
US$260 million ( total sales for
Boehringer Ingelheim in México)
US$600,000
Packaging machinery for a new line:
Labeling, Blowing, Filling, Capping
machines
Boehringer Ingelheim is the fourth largest pharmaceutical company in the world. Its
operations in México comprise two companies: Boehringer Ingelheim Promeco, with a
manufacturing facility in México City, and Boehringer Ingelheim Vetmedica with a plant in
Guadalajara.
Total sales in México for both divisions reached US$260 million in 2000, making it the
fifth largest pharmaceutical company in the Mexican market. About 10% of total sales are
exported to the US and Canadian markets.
The new industrial complex for Promeco was inaugurated in 1998 and is located in the
Xochimilco area of México City. The complex is composed of a production plant for oral
solids, a plant for the production of liquids, a quality control lab, and a state-of-the-art
warehousing facility. The operations of the Promeco facilities have been certified by the
Mexican ministry of health, the US FDA, and the Canadian TPP.
Investments in the Promeco plant were part of Boehringer Ingelheim’s OPINA
(Optimization of the Pharmaceutical Industry in North America) project.
Some of the products that are manufactured and/or packaged at these facilities are sold in
the Mexican market under the following names: Bipasmín®, Buscapina®, Gotinal®,
Isodine ®, Lonol®, Lonol Sport®, Mobicox®, Bisolvon®, Bisolpent®, Bremagan®,
Viramune®, Pharmaton®, Prodolina®, Mucosolvan®, Venastat®, and Mensifem®.
Product
Brand
Ointment / Gel
Lonol
Hypodermic injection products Various brands
Cough and other syrups
Bisolvon, Bisolpent, Mucosolvan,
others
Iodine-based products
Isodine douche, foam, solution, gargle
221
Package
Flexile tube
Glass ampoules
Glass bottles
Plastic bottle
Once the product is in its container, it is packed in a box carton.
This list presents the packaging machinery installed at the liquids production plant:
Weighers
Cabin: Ampoule washing,
filling and sterilizing tunnel
Autoclave
Particles checkers
Fracture checkers
High-speed rotative label
machine (400 per min)
Printing machine
Dynamic scale
Viscous filling machine
Carton form, fill, seal machine
Scale
Coding machine
Thermoforming blister machine
machines / M-80
Tape dispenser machine
Shrink and retractile oven
Filling machine
Orienting flask machine
Filling machine
Unwrapping machine
Bottle blower machine
Filling liquid (200 bottles/min)
machine / MA-400
Box form machine
Bottle washer machine
Filling machine 100 bottles/min
Box form machine
Multi-packaging (flasks, spray,
instructive)
Scale
Coding machine
Brand
Units
Origin
Metler-Toledo
BOSCH
7
1
Switzerland
Germany
Average
Age
5
8
Fedegari
Eisai
Nikka Densok
Libra
1
1
1
4
Italy
Japan
Japan
Italy
8
12
7
3
Jaime
BOSCH
COMADIS
IMA-150
BOSCH
Multipack
Leatus
Farmores
Marchessini
1
1
1
1
4
1
6
1
1
France
Germany
Italy
Italy
Germany
Italy
Germany
Italy
Italy
5
1
7
7
1
8
8 to new
12
12
Multipack
AXON
Serak
OZAF
MAR
Multipack
Neri
Farmomac
Marchessini
1
1
1
1
1
1
1
1
1
Italy
US
France
Italy
Italy
Italy
Italy
Italy
Italy
12
6
11
BFB
Libra
IMA Farmomac
BFB
Marchessini
1
1
1
1
1
Italy
Italy
Italy
Italy
Italy
3
8
10
12
3 months
BOSCH
Miltipack
Leatus
1
1
1
Italy
Italy
Italy
3 months
3 months
3 months
222
20
3
3
3
8
Boehringer Ingelheim personnel consider the efficiency of their existing packaging
machinery to be very good. However, because of their extensive product line, they must
stop the production lines twice a week for a couple of hours to reconfigure the lines to the
requirements for each product type.
Packaging the product into cartons is performed manually.
During 2000–2001 the company spent US$500,000 to purchase packaging machinery.
Following is a list of the equipment purchased during this period.
Machinery
Carton form, fill, and seal / MA-350
Coding machine
Scale
Brand
Marchessini
Leatus
BOSCH
Multipack
Country
Italy
Italy
Germany
Italy
Boehringer Ingelheim Promeco does not develop specific budgets for the purchase of new
packaging machinery. Equipment purchasing plans are the result of specific manufacturing
projects.
Near-term plans for the liquids facility include replacement of the machinery in the line
used to produce the Isodine products to modernize the process. The company plans to order
a filling machine, probably from Farmomac, at an estimated cost of $600,000 to improve
the line.
At the Promeco plant an economic cost-benefit analysis is conducted for all the lines every
year. If they propose any new equipment, it must have a payback within three years in order
for the purchase to be approved.
If a purchase is approved, the company selects the equipment fr om at least three options. A
final decision is reached jointly between the managerial committee in México and the
corporate headquarters in Germany.
1. Compatibility with existing machinery and conformity to trend for equipment
standardization.
2. Service.
3. Flexibility and reliability.
4. Price.
223
Equipment Suppliers
Boehringer Ingelheim staff members mentioned that the best machinery for their industry is
made in Germany, but that these machines are very expensive. They also like Italian
equipment as it is flexible and easy to operate, and they have received very good technical
support.
The company indicated they are inclined to purchase machinery that is similar to that which
they are already using, as their personnel are already familiar with this equipment and the
suppliers. This is important to them because, in the liquids area, they manufacture a wide
range of products, but they cannot justify a dedicated line for each product. As products
share the same production line, the machinery and related equipment must be cleaned at
least twice a week. Because of this constant reconfiguration and cleaning, the company
prefers equipment with which they are familiar, a factor they expect can reduce downtime.
They mentioned that establishing a business relationship with a particular supplier also
generates several advantages. They can negotiate better pricing and get spare part kits at
reduced prices, among other benefits.
As for maintenance, they indicate that this is performed by their own staff. Most of the
spare parts are purchased from the local representatives of their equipment suppliers or
directly from the manufacturers. The plant also has a shop where they manufacture those
spare parts that are most commonly replaced.
Boehringer Ingelheim Promeco’s evaluation of packaging machinery according to its
country of origin:
Origin
United States
Germany
Italy
Francia
Japan
Technology
Good
Very Good
Very Good
Good
Very Good
Flexibility
Low
Good
Good
Good
Good
Service
Inadequate
Good
Good
Good
Good
Price
High
High
Average
Average
High
Representatives of this company visit only one trade show in México—ExpoFarma, which
focuses on the pharmaceutical industry. They do not attend other shows as they indicate
that their equipment purchases are sporadic.
Boehringer Ingelheim Promeco is interested in a filling machine for liquids. This machine
should work for various densities, as it will be used for the Isodine line that includes
douche, foam, gargle, and liquid.
224
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
E-mail:
Web page:
Boehringer Ingelheim Promeco
Q.F.B. Laura G. Acosta Rodriguez
Manager of liquids production
Maíz # 49
Xochimilco
16090, México D.F.
(5255) 56 29 83 00 ext. 8114
(5255) 54 20 85 82
lacosta@mex.boehringer- ingelheim.com
www.promeco.com
225
Eli Lilly de México, S.A. de C.V.
Industry:
Sub Industry:
Pharmaceutical
Trade mark drugs, prescription, over
the counter products, and other
medical specialty products
Location:
México City
Size: (sales)
US$130 million
Purchasing potential: US$N/A
Specific Business
Carton form, fill and seal machines.
Opportunities:
Eli Lilly and Company is a global, high-technology company founded by Col. Eli Lilly in
1876 in Indianapolis, Indiana, in the Midwest section of the United States.
Eli Lilly and Company is a global research-based pharmaceutical corporation dedicated to
creating and delivering innovative pharmaceutical-based health care solutions that enable
people to live longer, healthier, and more active lives. Lilly employs more than 31,000
people worldwide and markets its medicines in 179 countries.
Research and development facilities are located in Australia, Belgium, Canada, England,
Germany, Japan, Singapore, Spain, and the United States. Clinical studies are conducted in
more than 65 countries worldwide. Lilly manufacturing facilities are located in Australia,
Brazil, China, Egypt, England, France, Germany, Hungary, Ireland, Italy, Japan, Korea,
México, Pakistan, Poland, Puerto Rico, South Africa, Spain, Taiwan, and the United States.
In México Eli Lilli has been present for over 60 years and produces approximately 40
products in 70 different formats.
Eli Lilly produces a wide variety of medical drugs with its most important products being
antidepressive pills Prozac, antibacterial liquid Merthiolate, vitamin Cebaline, antibiotic
Losone, cancer medicine Gemza, insulin Humulin, and other nerve control products. Most
of Eli Lilly’s tablets and capsules are blister packed, and only vitamins and liquids (oral)
are packaged in plastic bottles. Injections are packed in glass ampoules.
226
Units
Origin
Age
20
99%
12
99%
10
90%
8
95%
99%
2
50%
Ampoule filling machine/ Cozzolli
Capping machine / 3M
Labeling machines / Newman
Carton form, fill, and seal / CAM
Carton form, fill, and seal / Uhlman
Laser labeling machine (Holograms)/
Neri
Blister machines / Uhlman
PVC wrapping Machines/ Package
Wrapping machine/ CAM
Tablet filling machine/ Kremer
Container orienting machine/ Palace
Printing, imprinting machines /
Hapamatic
Carton form, fill, and seal machines/
Uhlman
Tablet and capsule machinery
Tray machines
1
1
3
2
1
4
Italy
US
US
Italy
Germany
Italy
3
1
4
1
1
3
Germany
US
Italy
Germany
US
Italy
8
20
8
2
2
8
80%
99%
99%
98%
98%
80%
3
Germany
8
80%
12
20
Italy
México
10
10
80%
70%
Most of Eli Lilly’s packaging machinery (95%) is Italian or German. This company
perceives Italian pharmaceutical machinery to be the most technologically advanced and
quite flexible for adapting to various packaging applications.
Eli Lilly’s 1998 purchase of packaging machinery included four hologram labeling
machines from the Italian supplier Neri, two tablet machines from Kramer (Germany), and
a Palace brand orienting machine. The company invested US$1.1 million in these
purchases.
Machinery
Hologram labeling machine
Tablet machines
Container orienting machine
Brand Country
Neri
Italy
Kramer Germany
Palace
US
The Venezuelan subsidiary of Eli Lilly recently sent a packaging line to México, which
includes a filling machine, orienting machine, blower, labeling machine, and capping
machine. This system will be conditioned to fit in Eli Lilly’s México plant. Over the past
three years, Eli Lilly has spent on average about US$1 million per year for packaging
machinery and spare parts.
227
Since Eli Lilly just received an entire packaging line from its sister subsidiary in
Venezuela, the company will focus in setting up this line and has no other packaging
machinery purchasing plans. The company is analyzing a project to renew their carton
form, fill, and seal machines, which present frequent problems due to old age and extensive
use.
Eli Lilly México defines its own packaging machinery needs and usually buys directly from
the equipment manufacturer. The purchasing decision process includes evaluation of at
least three alternatives. Considerable emphasis is placed on the vendor’s capacity to
provide good service, and the supplier must have other machinery functioning in México.
The company believes this eases the process to receive service and spare parts.
Eli Lilly notifies its US headquarters of its purchasing plans, but usually the selection
process and the purchases are made with local resources.
1.
2.
3.
4.
5.
Quality.
Service.
Flexibility.
Ease of operation.
Price.
Equipment Suppliers
Eli Lilly México considers the Europeans to be the leaders in packaging machinery for the
pharmaceutical industry. They indicated that they are more knowledgeable about German
and Italian machinery than US equipment due to the service they receive from
manufacturers of their cur rent machinery. Lilly personnel noted that it is company policy to
purchase only highly recognized brands and the most advanced technology available.
Among Eli Lilly’s preferred brands are Uhlman and CAM.
Eli Lilly maintains their equipment on regular basis and schedules frequent visits from their
main suppliers. As for spare parts, Eli Lilly buys directly from the manufacturers or through
representatives when those have proved to provide a good service.
228
Eli Lilly’s evaluation of packaging machinery by country of origin:
Origin
United States
Germany
Italy
Technology
Good
Very Good
Very Good
Flexibility
Good
Very Good
Very Good
Service
Good
Good
Good
Price
Good
Average
Good
Staff members of Eli Lilly México regularly attend pharmaceutical sector trade shows
ExpoFarma and ExpoPack, which take place every year in México. Additionally they
subscribe to specialized magazines like Manufactura and the magazine of the
Pharmaceutical Association. And they pay special attention to literature received from
equipment manufacturers.
At present Eli Lilly’s interest in packaging machinery is concentrated on carton form, fill,
and seal machinery. They believe this is an area where US suppliers could be competitive.
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
E-mail:
Eli Lilly de México, S.A. de C.V.
Ing. Marcela Carreras
Conditioning Manager
Calz. De Tlalpan #2024
Col. Country-Churubusco
04200, México D.F.
(52) 5484-3800, 5484-3813
(52) 5484-3866
Carreras_Marcela@lilly.com
229
Laboratorios BEST, S.A.
Industry:
Sub Industry:
Location:
Size: (sales)
Specific Business
Opportunities:
Pharmaceutical
Patent medicine, Generics
México City (D.F.)
N/A
N/A
Filling machine for liquids,
Labeling machines, Capping
machine
Laboratorios Best is a Mexican company dedicated to the production of generic and patent
medicine. The company has its own pharmacy chain with over 350 locations called
Farmancias Similares, where they distribute their products.
Best manufactures medicines under their generic name, and the company competes against
international laboratories by selling similar products at less than half the price of branded
medicine. The group has been aggressive by advertising on television and radio, and their
products are targeted to meet the needs of low- and medium- income people.
The group also has control over the BEST foundation in México, which provides medical
services from more than 600 doctors in 350 locations throughout the country.
Laboratorios Best has one plant in México City.
Product
Liquid medicines
Tablets
Capsules
Brand
Similares
Similares
Similares
Package
Plastic bottles
Blister and plastic bottles
Blister and plastic bottles
230
The most representative packaging machinery of the company includes:
Units
Origin
1
England
1
1
1
Italy
Italy
Italy
4
4
1
80%
80%
80%
1
1
México
Argentina
2
5
80%
80%
1
Argentina
.5
80%
Tablet counting and dispensing
machine / King
Capping machine/ Libra
Labeling machine/ Libra
Liquid filling and capping machine/
Marlow
Labeling machines/ No brand
Blister machine for tablets and
capsules/ Argentécnica
Carton form, fill, and seal machine/
Argentécnica
Age
12
80%
This company invested US$300,000 in the last two years for new packaging machinery.
Their most recent purchase was made in September 2001 when they acquired a Liquid
filling and capping machine from Marlow in Italy.
Machinery
Liquid filling and capping machine
Brand
Marlow
Country
Italy
This company has not developed a formal investment program; they purchase new
packaging machinery depending on the demand for their products. The company has
identified the need to purchase additional filling machines, a capping machine for plastic
bottles, and two additional labeling machines to place labels on plastic bottles.
These purchases will be made in the next 18 months as the company is increasing its
production of liquid medicines.
The company acquires packaging machinery from Mexican distributors or on occasion
from packaging machinery distributors in the United States. They have no preference for
any brand or origin of the machinery, but they require that service be available in México.
They select the machinery that can satisfy their production needs, and their purchasing
decision is based mostly on price, flexibility, and quality of the equipment.
231
They purchase machinery with their own resources and usually follow the payment
schedule of the supplier.
1.
2.
3.
4.
5.
Quality.
Local service.
Price.
Flexibility.
Brand recognition
The company has no preference for any brand or origin of machinery, but they only
purchase from suppliers offering local service. The company also requires manuals in
Spanish, as most operators are not bilingual.
Laboratorios BEST made the following evaluation according to origin of the machinery:
Origin
United States
Germany
Italy
Argentina
Technology
Good
Very Good
Very Good
Good
Flexibility
Good
Very Good
Very Good
Good
Service
Good
Very Good
Very Good
Good
Price
Good
Very Good
Very Good
Good
Ladoratorios Best has selected all their packaging machinery suppliers at ExpoPack and
ExpoFarma trade shows. They are interested in receiving information from suppliers of
packaging machinery for liquid medicines that have a local presence.
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
Web page:
Laboratorios BEST, S.A.
QFB. Jaime Portilla Gil de Partearroyo
Technical Director
Muncicipio Libre #199
Col. Portales,
(52-55) 5605-0794
(52-55) 5604-3846
www.fundacionbest.org.mx/
232
Merck Sharp and Dohme de México S.A. de C.V.
Industry:
Sub Industry:
Location:
Size: (sales)
Specific Business
Opportunities:
Pharmaceutical
Prescription drugs
México City
US$280 million
US$650,000
Labeling machine, Carton form fill and seal
machines, Blister machine, Tablet packaging
machine, Laser coding machines
Merk Sharp & Dhome México started manufacturing pharmaceutical products in México in
1930 and is the local subsidiary of Merck and Company from the United States. The
Mexican operation represents only 5% of total sales for the group, and 70% of local
production is exported to other Latin American countries.
The company manufactures several prescription drugs for the treatment of heart disease,
AIDS, and osteoporosis as well as anti- inflammatory agents and other medicines.
The México plant manufactures solid tablets and imports vaccines and veterinary products
from the United States and Europe. The company also imports most of its raw materials.
Tablets are the only products manufactured by Merck Sharp and Dhome in México and are
packed in blisters sealed with aluminum and packaged for retail in a carton that also in most
cases contains an instruction sheet. Ophthalmic drops and injections, which are imported,
are labeled in México and packed for retail in a box carton.
Labeling
Cartoning
Cartoning
Cartoning
Cartoning
Blister
Bar code
Filling liquids
Sealing machine
Inspection
Brand
Units
Origin
Libra
Uhlman
CAM
Machesini
IMA
2
1
1
2
3
3
6
2
1
1
Italy
Germany
Germany
Italy
Italy
Italy / Germany
233
US
Italy
Japan
Age
12
80%
22
80%
17
90%
3
90%
3
80-90%
The packaging machinery in this facility operates 24 hours a day in three work shifts with
80 to 90% efficiency.
About 70% of the machinery used in this plant is Italian, 20% German, and the remaining
10% came from the United States. The company believes that packaging machinery offered
by European suppliers, especially Italian and German, is the most technologically
advanced.
The company indicated they are open to considering suppliers from other countries as long
as they can offer economic or production benefits.
This company’s most recent packaging machinery purchase took place in April 2002, when
they acquired a labeling machine from the US supplier Image, at a cost of close to
US$38,000.
The company has plans to include one new packaging line for tablets in their production
facility in México City. The line will include a Tablet dispensing machine, a Blister
machine, and a Carton form, fill, and seal machine as well as a Laser coding machine and a
Labeling machine. They have not decided which suppliers to use, but most likely they will
use existing suppliers. The budget authorized for these acquisitions is US$650,000.
The equipment selection process includes evaluating financial and technical aspects of the
proposed suppliers. Most equipment is selected based on previous experience with the
suppliers, both locally and within the Merck group.
The local company requests quotes from equipment suppliers, and a final purchasing
decision is made jointly by the local and the parent company, which will provide financing
to their Mexican subsidiary. Terms are negotiated by Merck and Company in the United
States and usually include a 35% advance payment and the remainder at 30 days after the
equipment is delivered.
This company purchases most of its machinery directly from the manufacturers.
1.
2.
3.
4.
Previous experience with the supplier.
Equipment quality.
Service, with specific commitments negotiated with the purchase ( Service Project).
Brand reputation.
234
Equipment Suppliers
Merck Sharp & Dohme staff indicated they do not have any specific commitments to any
suppliers. They noted that one of the most important factors they consider when purchasing
equipment is what they refer to as “Service Project.” By this, they refer to very specific
servicing commitments negotiated with the supplier, which include regular visits by the
supplier’s technicians to review the equipment and to train Merck’s maintenance crews.
Merck Sharp and Dohme indicated they tend to prefer European machinery because it has
given them good results. They mentioned that the service they have received as well as the
technology and flexibility of the equipment makes European equipment a better option
when compared to US equipment. In this regard, they mentioned that US equipment has
very good quality and is much less expensive than European equipment but lacks the
flexibility to easily adapt to new packaging requirements. This flexibility makes European
equipment more cost effective to the company in the long run.
Origin
United States
Germany
Italy
Technology
Good
Good
Good
Flexibility
Poor
Very Good
Very Good
Service
Good
Good
Good
Price
Good
Expensive
Expensive
While the company has not made any specific commitments to any suppliers, they have
identified who they believe to be the packaging machinery leaders for pharmaceutical
products from whom they receive information on new technologies and equipment.
Because of these relationships, they do not attend trade shows because they receive
information on new technologies directly from their current suppliers.
Merck Sharp and Dohme is open to reviewing information from suppliers of cartoning
machines, blister machines, coding equipment, and tablet dispensing machines.
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
E-mail:
Merck Sharp and Dohme, S.A. de C.V.
Ing. Guillermo Puente
Engineering manager
Av. División del Norte #3377
Col. Xiotepingo
04610, México D.F.
(5255) 2122-1600
(5255) 2122-3725
guillermo.Puente@merck.com.mx
235
Novartis
Industry:
Sub Industry:
Location:
Size: (sales)
Specific Business
Opportunities:
Pharmaceutical
Patent drugs, other specialty
pharmaceutical products
México City
US$ N/A
US$2.5 million for new equipment (1/3
for packaging machinery).
Blister line, Carton form, fill, and seal
machine
Novartis is one of the most important global pharmaceutical companies. The company was
established in Switzerland over 400 years ago and currently has operations in 142 countries.
Operations in México for this company date back 50 years, and in 1996 it adopted the
Novartis name after the merger of the Ciba and Sandoz operations.
The company manufactures a wide variety of patent drugs, health care, optical, and
nutrition products.
The company operates one single plant in México, located in México City.
Novartis produces a wide range of health products ranging from patent drugs to eye care
products. The company operates three divisions: Novartis produces drugs for the treatment
of cancer, rheumatism, arthr itis, central nervous and respiratory systems, skin, and bones,
and other products. Suipharm manufactures generic drugs, and Ciba Vision produces
contact lenses and eye care products.
236
Ampoule filling machine / Bosch
Bottling lines for liquids / IMA
Bottling line for solids / Kalish
Weight verification machines / Icore
Print and apply labeling machines /
Libra
Inspecting for Ampoule (filling and
particle free) / EASI
Blister machinery / IMA
Blister machinery / Bosch
Blister machine / Uhllman
Dispensing machines / Solipack
Tablet machinery
Fluid dryer
Reactor / Moltomat
Granuladores / Srokes
Leaflet & coupon (Integrated)
Vibrators
Tape dispensers
Units
Origin
Average
Age
22
2
4
9
>1
7&4
Specification
1
1
1
1
8
2
Germany
Italy
Canada
Germany
US
Italy
1
Japan
17
90%
2
1
1
2
2
1
1
1
2
4
5
Italy
Germany
Germany
Italy
Germany
Germany
Germany
USA
Italy
Germany
Various
7
>1*
15
7
9
80%
70%
70%
80%
75%
4
32
85%
50%
60%
50%
80%
75%
80%
90%
*This machine was installed in México in 2001 but came from a Novartis plant in Germany where it was in
operation for 10 years.
The company invested US$3.5 million in the purchase of machinery during 2000 and
US$1.6 million in 2001. Approximately one-third of this investment was used to purchase
packaging equipment. Some of the most recent packaging equipment purchases have
included the following machines:
Machinery
Weigh verification systems
machine
Reader coding machine
Brand
Country
Icore
US
Marchezzini
Italy
Litus
US
Novartis has a US$2.3 million budget to purchase new machinery during 2002. About
US$760,000 will be used to purchase packaging machinery.
237
The company is constantly reviewing the productivity of their production lines; the
company also undergoes productivity audits conducted by their headquarters. New
equipment requirements are defined by the result of these audits, as the logical objective is
to improve the process to make it more efficient.
The production areas with the lowest relative efficiency become priorities for the purchase
of new equipment.
During 2002 the company is considering the purchase of the following equipment:
Machinery
Units
12
Blister machine
1
Origin
Motive of
purchase
US / Devek Improve the
closing process
TBD
Expansion
Estimated Budget
US $4,300 each
N/A
Novartis México indicated that they prefer to purchase equipment from supplier
representatives in México, as they believe that having a local technical representative
assures better service from the supplier. Spare parts are purchased from the manufacturer.
When purchasing new equipment, the company evaluates at least three potential suppliers.
Once the purchasing decision is reached, the whole purchasing process is the responsibility
of the Mexican operation.
They are responsible for placing the order, negotiating a contract, and selecting the
financing scheme, which might involve internal monies, a credit line with Citibank, or
vendor options.
1. Return on investment/payback.
2. Previous experiences with supplier and recommendations from other Novartis
affiliates worldwide.
3. Durability.
4. Tradeoff between cost and efficiency.
5. Good local technical support.
Equipment Suppliers
Most of Novartis México’s packaging machinery is from Germany and Holland.
Novartis considers the Europeans to be the leaders in packaging machinery for the
pharmaceutical industry. But this concept could be the result of a traditional view regarding
238
the equipment suppliers for this industry. They are convinced they can find good options
elsewhere, noting that they are very satisfied with Kalish/Canada from whom they
purchased a bottling line for solids 3 years ago.
The company is open to meeting with new potential suppliers and indicated that closing a
sale with their operation in México facilitates future access to other facilities worldwide.
One of the purchasing criteria that Novartis México changed over the past two years was
the payback concept. Now they feel that the machine’s ability to adapt to the company’s
precise needs is a more important decision factor. They also desire equipment that is long
lasting and that won’t need to be replaced in just a few years.
To reduce their inventory levels, the company now works under batch production. This has
created the need to configure their lines about 17 times per month, which has reduced plant
efficiency and increased the need for a larger technical staff. It has also created the need for
increased training for their maintenance staff. However, the machine achieved payback in 2
years.
Novartis provides maintenance to their equipment on a regular basis and schedules a yearly
visit from their suppliers’ technicians, who review overall equipment functionality and also
train Novartis’ maintenance crews. They believe they pay a very high price for these
services but consider it important to keep their equipment working to specification. As for
spare parts, Novartis buys directly from the manufacturers, as they find this to be a faster
alternative than placing an order with the local representative.
Novartis’ evaluation of packaging machinery by country of origin:
Origin
United States
Canada
Germany
Italy
Technology
Poor
Very Good
Very Good
Very Good
Flexibility
Poor
Very Good
Average
Very Good
Service
N/A
Bad
Bad
Bad
Price
Good
Average
High
High
When Novartis initiates the process of selecting packaging machinery, it relies on
recommendations from affiliate companies, performs additional research via the Internet,
and contacts potential suppliers. They visit ExpoPack regularly and a pharmaceutical sector
trade show called ExpoFarma, which takes place every year in México. Additionally, they
subscribe to specialized magazines like Manufactura, magazines of the Pharmaceutical
Association, El Asesor weekly newsletter, and Latin American Pharmaceutical
Technology.
At present Novartis’ interest in packaging machinery is concentrated on Blister machinery.
They also mentioned they are interested only in newly developed equipment for the
239
pharmaceutical industry and in control features to help them avoid product “cloning” as
there is a strong black market of medical products in México.
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
E-mail:
Web page:
Ciba Farmacéutica, S.A. de C.V. (Novartis)
Ing. Jaime Sierra Basells
Production Manager
Calz. De Tlalpan #1779
Col. San Diego Churubusco
04120, México D.F.
(5255) 5628-6776
(5255) 5544-4344
jaime.sierra@pharma.novartis.com
www.novartis.com
240
Pfizer, S.A. de C.V.
Industry:
Sub Industry:
Location:
Size: (sales)
Specific Business
Opportunities:
Pharmaceutical
Patent medicine, vitamins,
specialized medication,
veterinarian medicine
Toluca, state of México
US$300 million
US$3 million
Blister machines, Carton form,
fill, and seal machines, Ink
injection printers.
Pfizer, which in 2000 merged with its former rival Warner-Lambert, is one of the top five
drugmakers in the world. With its origins in Germany in the 19th century, it has 52
production facilities and a presence in 150 countries. Pfizer entered the Mexican market in
1951. The company is divided into four groups: Pfizer Pharmaceuticals Group, Pfizer
Consumer Healthcare, Pfizer Global Research and Development, and Pfizer Animal Health
Group.
Over the past three years, Pfizer has participated in the three most successful new product
launches in the industry—each breaking the previous record for first-year sales. The first
was Lipitor (atorvstatin calcium), launched and marketed by Pfizer and Warner-Lambert as
partners. It was followed by Viagra (sildenafil citrate) and then Celebrex (celecoxib
capsules), discovered by and copromoted with Searle, a division of Pharmacia Corporation.
These products all have many years of growth and patent life ahead. Along with such
industry leaders as Norvasc (amlodipine besylate), Zoloft (sertraline HCL), Viracept
(nelfinavir mesylate), and Neurontin (gabapentin), these are the products that will drive the
continuing success of the new Pfizer.
In México Pfizer has one plant located near the city of Toluca in the state of México. This
plant employs 240 workers; the company’s administrative offices are located in México
City with over 400 administrative and 800 sales employees.
Pfizer sales in México reach over US$300 million, and the México plant also covers
Central and South America. Pfizer México exports to Costa Rica, Brazil, Colombia,
Venezuela, Argentina, and most of the Caribbean.
241
Product
Ointment
Tablets
Injectable liquid
Capsule
Capsule
Capsule
Tablets
Capsule
Chewable tablets
Capsule
Tablets
Oral suspension
Capsule
Ointment
Injectable liquid
Capsule
Tablets
Powder suspension
Tablets
Tablets
Capsule
Injectable liquid
Tablets
Drops
Oral suspension
Tablets
Tablets
Capsule
Oral suspension
Suspension
Tablets
Tablets
Capsule
Tablets
Oral suspension
Solution
Tablets
Tablets
Brand
Terramicina
Triciscos
Preconst
Terramicina
Vibramicina
Terrados
Cortril
Viterra
Viterra
Obrón
Fasigyn
Combantrin
Feldene
Feldende Gel
Feldene
Minipres
Unasyna
Unasyna
Femhrt
Norvas
Sinequan
Bonadoxina
Bonadoxina
Bonadoxina
Bonadoxina
Obinese
Diabinese
Diflucan
Difulcan
Azitrocin
Azitrocin
Altruline
Altruline
Cardura
Zyplo
Zyplo
Viagra
Relpax
242
Package
Aluminum tube
Blister
Glass ampoule
Blister
Blister
Blister
Blister
Blister
Blister
Blister
Blister
Glass flask
Blister
Aluminum tube
Glass ampoule
Blister
Blister
Plastic flask
Blister
Blister
Blister
Glass ampoule
Blister
Plastic flask
Glass flask
Blister
Blister
Blister
Glass flask
Glass flask
Blister
Blister
Blister
Blister
Glass flask
Glass flask
Blister
Blister
The most representative packaging machinery used by Pfizer México is:
Units
Origin
Specification
England
England
Average
Age
10
10
Ointment filling machine/ Norden Matic
Norden Pack
Blowing, filling, and capping machine
for liquids/ CAM
Labeling machine/ New Jersey
Carton form, fill, & seal machine/ CAM
Blister machine/ Uhlmann
Uhlmann
Capsule/tablet dispensing machine/ Laxo
Blister Machine/ KP1L
Cartopack
Ointment filling machine/Arenco Gan
Filling machine/ Triangle
Liquid dosifiers
Hologram dispensing machine/ Itamper
Weighing machines / Mettler Toledo
1
1
1
England
12
100%
2
1
3
3
US
England
Germany
Germany
9
25
7
8
100%
70%
80%
80%
1
1
1
US
Germany
US
25
30
20
60%
90%
80%
1
1
1
1
1
England
N/A
N/A
Italy
US
20
15
18
2
1
70%
80%
80%
80%
80%
100%
100%
D) Last Purchase of Packaging Machinery.
Pfizer has invested more than US$2.5 million dollars in packaging machinery over the last
three years. Their latest acquisition was a blister machine and a carton form, fill, and seal
machine from the German manufacturer Uhlman.
Machinery
Blister, Carton form, fill, and seal machines
243
Brand Country
Uhlmann Germany
Pfizer has developed a budget of US$2.5 million to cover its packaging machinery needs in
the following three years. The most important machinery included in their investment plan
is as follows:
Machinery
Blister, Carton form, fill, & seal
machine
Carton form, fill, & seal machine
Ink injection printers
Units
Origin
1
Germany
1
2
2
-
Motive of
purchase
Replacement
Replacement
New
New
Estimated
Budget
US$800,000
US$600,00
US$30,000
US$30,000
Pfizer México prepares an annual budget for purchasing new machinery. The list for new
equipment is based on changing technical requirements as well as new production plans.
Once the budget is defined, it is sent for approva l to the corporate office in New York.
After receiving approval, the local company makes all decisions regarding equipment
selection and purchasing. Larger purchases are made directly with the equipment
manufacturer, while small equipment and spare parts are purchased through the supplier’s
local representatives. Pfizer follows recommendations of other Pfizer plants for the
selection of packaging machinery suppliers, and in some cases the corporate offices in New
York negotiate with the suppliers for acquisition of equipment for several Pfizer plants.
When selecting new equipment, this company makes evaluations based on production
parameters, technology, and price.
Payment methods are negotiated on a case-by-case basis with each supplier. Common
terms are 30% advance payment and the remaining 70% once the equipment is working in
their facility.
Origin
United States
Germany
England
Technology
Good
Very Good
Good
Flexibility
Good
Regular
Regular
1.
2.
3.
4.
5.
Service.
Capacity and technology.
Price.
Recommendations of other Pfizer plants.
Brand recognition.
244
Service
Very Good
Good
Good
Price
Good
Regular
Good
Equipment Suppliers
The company has supply agreements with Uhlmann (Germany) and CAM (England).
Under this agreement, Uhlman and CAM give preferential prices and conditions to Pfizer
on exchange for purchasing volumes and recurrent orders.
The company prefers European machinery because they find it to be the most precise for
pharmaceutical applications and to have adequate price-quality relationships.
The company is interested in receiving information from manufacturers of packaging
machinery mainly for tablets and capsules.
Company Name:
Contact:
Position:
Address:
Telephone:
Fax:
E-mail:
Web page:
Pfizer, S.A. de C.V.
Ing. José Avila Hernández
Manager of Pharmaceutical Production
Km. 63 Carretera México- Toluca,
Toluca, Estado de México,
México.
(52-722) 279-7107
(52-722) 215-1702
Avilaj12@pfizer.com
www.pfizer.com
245
VII. APPENDIX A
Imports of Packaging Machinery by Country of Origin, January–December 2000
Source: Bancomext
84221101: Of the household type—Total Imports
Country
Million US$
1999
2000
1998
0
1
2
3
4
5
6
7
8
9
10
11
12
THE WORLD
United States
Canada
Spain
Sweden
European Union
Italy
Taiwan
Australia
Germany
Korea, South
China
Japan
2.97
1.81
0.66
0.39
0.03
0.00
0.02
0.00
0.00
0.02
0.00
0.00
0.00
3.58
2.37
0.91
0.17
0.09
0.00
0.03
0.00
0.00
0.00
0.00
0.00
0.00
1998
3.66 100.00
2.11 61.05
1.01 22.20
0.29 13.00
0.13
0.92
0.04
0.00
0.03
0.84
0.03
0.01
0.01
0.00
0.00
0.53
0.00
0.00
0.00
0.00
0.00
0.01
% Share
1999
2000
100.00
66.24
25.33
4.85
2.41
0.00
0.83
0.01
0.00
0.10
0.01
0.01
0.00
100.00
57.72
27.62
7.87
3.44
1.21
0.94
0.79
0.15
0.09
0.06
0.04
0.03
%
Change
00/99
2.12
-11.02
11.36
65.82
45.89
N/A
14.81
N/A
N/A
-6.96
635.64
434.00
712.50
84222001: For cleaning bottles and other containers, other than those included in
subheadings 8422.20.02 and 03—Total Imports
Country
0
1
2
3
4
5
6
7
8
THE WORLD
United States
Germany
Italy
Denmark
Australia
Netherlands
Spain
Canada
Million US$
1998 1999 2000
3.05
1.83
0.50
0.49
0.00
0.00
0.00
0.00
0.01
1.00
0.72
0.00
0.11
0.00
0.00
0.00
0.00
0.10
% Share
1998
1999
2000
2.72 100.00 100.00 100.00
1.68 60.10 72.24 61.66
0.46 16.28
0.00 16.82
0.25 16.21 10.93
9.20
0.14
0.00
0.20
5.00
0.08
0.00
0.00
2.96
0.05
0.00
0.00
1.72
0.04
0.00
0.36
1.31
0.02
0.49
9.89
0.79
246
%
Change
00/99
171.51
131.72
N/A
128.61
N/A
N/A
N/A
880.68
-78.43
84222002: For washing glass bottles, having a capacity from 3 milliliters to 20 l—Total
Imports
Country
0
1
2
3
4
5
THE WORLD
Italy
United States
Venezuela
Spain
Germany
Million US$
1998
1999 2000
2.19
2.02
0.16
0.00
0.00
0.00
2.83
2.21
0.26
0.00
0.18
0.12
1998
% Share
1999
2000
2.36 100.00 100.00 100.00
2.09 92.31 78.04 88.85
0.15
7.22
9.06
6.18
0.11
0.00
0.00
4.63
0.01
0.04
6.53
0.34
0.00
0.00
4.40
0.00
%
Change
00/99
-16.63
-5.09
-43.08
N/A
-95.69
0.00
84222003: Tunnel type washers, of continuous belt for metallic containers, with an output
capacity exceeding 1,500 units per minute—Total Imports
Country
Million US$
1998 1999 2000
0 THE WORLD
1 United States
0.00
0.00
0.04
0.04
% Share
1998
1999
%
2000 Change
00/99
0.07 100.00 100.00 100.00 69.00
0.07 100.00 100.00 100.00 69.00
84222099: Other—Total Imports
Country
0
1
2
3
4
5
6
7
8
9
10
11
12
THE WORLD
Italy
United States
Germany
Switzerland
Denmark
Canada
European Union
Netherlands
France
Spain
Japan
Austria
Million US$
1998 1999 2000
% Share
1998
1999
2000
7.91 11.31 11.75 100.00 100.00 100.00
6.04 8.52 8.53 76.36 75.33 72.63
1.26 1.90 1.79 15.87 16.77 15.20
0.08 0.54 0.70
1.07
4.79
5.93
0.00 0.01 0.18
0.00
0.10
1.52
0.04 0.00 0.15
0.51
0.03
1.29
0.06 0.00 0.13
0.81
0.01
1.09
0.01 0.00 0.11
0.09
0.00
0.96
0.01 0.09 0.05
0.14
0.81
0.40
0.01 0.02 0.04
0.09
0.22
0.31
0.20 0.12 0.03
2.47
1.04
0.30
0.00 0.00 0.02
0.05
0.04
0.14
0.00 0.01 0.01
0.06
0.05
0.08
247
%
Change
00/99
3.87
0.14
-5.86
28.82
N/A
N/A
N/A
N/A
-48.89
46.55
-70.59
248.04
66.82
84223001: For packing or packaging milk, butter, cheese, or other dairy products, other
than those included in subheading 8422.30.10—Total Imports
Country
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
THE WORLD
United States
France
Switzerland
Germany
Japan
Italy
Canada
Chile
Argentina
Costa Rica
Brazil
European Union
United Kingdom
South Africa
Sweden
China
India
Israel
Taiwan
Spain
Million US$
1998 1999 2000
8.43
3.03
0.76
0.00
0.97
0.58
0.82
0.97
0.00
0.03
0.00
0.00
0.00
0.00
0.00
0.63
0.00
0.00
0.01
0.00
0.62
1998
% Share
1999
2000
8.88 14.16 100.00 100.00 100.00
4.40 8.85 35.97 49.53 62.48
0.46 1.81
9.00
5.13 12.78
0.00 1.20
0.00
0.00
8.47
1.11 1.06 11.45 12.54
7.47
2.28 0.32
6.91 25.65
2.24
0.02 0.21
9.78
0.17
1.50
0.28 0.21 11.48
3.11
1.49
0.00 0.19
0.00
0.00
1.34
0.00 0.12
0.41
0.00
0.87
0.00 0.10
0.00
0.00
0.73
0.00 0.07
0.00
0.00
0.49
0.00 0.01
0.00
0.00
0.09
0.00 0.01
0.00
0.00
0.05
0.01 0.00
0.00
0.07
0.00
0.06 0.00
7.48
0.71
0.00
0.00 0.00
0.00
0.05
0.00
0.02 0.00
0.00
0.23
0.00
0.05 0.00
0.17
0.61
0.00
0.00 0.00
0.00
0.00
0.00
0.19 0.00
7.34
2.19
0.00
248
%
Change
00/99
59.50
101.19
297.22
N/A
-4.96
-86.04
N/A
-23.73
N/A
N/A
N/A
N/A
N/A
N/A
0.00
0.00
0.00
0.00
0.00
0.00
0.00
84223002: For packing, closing, capsuling, and/or packaging liquids, other than those
included in subheadings 8422.30.01, 03 and 10—Total Imports
Country
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
THE WORLD
Italy
Germany
United States
European Union
France
Switzerland
Spain
Sweden
Brazil
Israel
United Kingdom
Argentina
Colombia
Korea, South
Puerto Rico (US)
Taiwan
Denmark
Japan
Canada
Million US$
1998 1999 2000
% Share
1998
1999
2000
62.50 61.10 71.10 100.00 100.00 100.00
13.33 31.25 27.02 21.34 51.15 38.00
19.13 7.57 23.05 30.61 12.38 32.42
20.90 12.85 9.80 33.45 21.02 13.78
0.00 0.69 4.23
0.00
1.12
5.95
1.49 3.36 2.10
2.38
5.50
2.95
0.01 0.18 1.43
0.02
0.30
2.01
0.19 2.81 0.89
0.30
4.60
1.25
0.10 0.40 0.74
0.16
0.65
1.05
2.89 0.09 0.60
4.63
0.14
0.84
0.16 0.18 0.47
0.25
0.30
0.66
0.17 0.26 0.35
0.27
0.43
0.49
2.74 0.00 0.23
4.39
0.00
0.32
0.00 0.45 0.09
0.00
0.73
0.13
0.00 0.00 0.03
0.00
0.00
0.04
0.00 0.00 0.03
0.00
0.00
0.04
0.00 0.00 0.02
0.00
0.00
0.03
0.05 0.00 0.02
0.07
0.00
0.03
0.00 0.00 0.01
0.00
0.00
0.01
0.51 0.22 0.00
0.81
0.37
0.00
%
Change
00/99
16.37
-13.55
204.69
-23.75
517.00
-37.57
688.03
-68.29
87.73
597.05
161.68
33.75
N/A
-79.96
N/A
N/A
N/A
N/A
N/A
-99.55
84223003: For packing jams, tomato extracts, corn soup, and other syrupy foods—Total
Imports
Country
0
1
2
3
4
5
6
7
8
9
10
11
THE WORLD
France
Italy
United States
United Kingdom
Netherlands
Switzerland
China
Belgium
Canada
European Union
Spain
Million US$
1998 1999 2000
0.74
0.00
0.04
0.56
0.00
0.00
0.00
0.00
0.14
0.00
0.00
0.00
0.58
0.00
0.25
0.15
0.00
0.01
0.00
0.00
0.00
0.00
0.14
0.03
% Share
1998
1999
2000
1.94 100.00 100.00 100.00
0.90
0.00
0.00 46.10
0.52
4.92 42.74 26.95
0.52 75.69 26.12 26.71
0.00
0.00
0.00
0.24
0.00
0.00
1.08
0.00
0.00
0.60
0.00
0.00
0.00
0.00
0.42
0.00
0.00 18.79
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00 24.07
0.00
0.00
0.00
5.57
0.00
249
%
Change
00/99
235.07
N/A
111.27
242.70
N/A
0.00
0.00
0.00
0.00
0.00
0.00
0.00
84223004: For packing liquids in ampoules, whether or not performing other attached
operations—Total Imports
Country
0
1
2
3
4
5
6
7
THE WORLD
Italy
Germany
Japan
Canada
France
United States
Ireland
Million US$
1998 1999 2000
1.52
0.65
0.32
0.34
0.00
0.00
0.21
0.00
4.85
1.42
3.17
0.00
0.00
0.00
0.24
0.00
1998
% Share
1999
2000
2.02 100.00 100.00 100.00
0.97 42.67 29.28 48.16
0.69 21.12 65.41 33.86
0.25 22.22
0.00 12.36
0.05
0.00
0.00
2.66
0.04
0.00
0.00
2.15
0.01 13.99
4.94
0.63
0.00
0.00
0.00
0.15
%
Change
00/99
-58.24
-31.32
-78.38
N/A
N/A
N/A
-94.64
N/A
84223005: For molding and/or packaging candy—Total Imports
Country
0
1
2
3
4
5
6
THE WORLD
United States
United Kingdom
Brazil
Italy
Germany
Spain
Million US$
1998 1999 2000
0.69
0.00
0.15
0.00
0.01
0.53
0.00
1.46
1.00
0.00
0.00
0.01
0.37
0.08
250
% Share
1998
1999
2000
1.55 100.00 100.00 100.00
1.43
0.00 68.64 92.10
0.08 21.57
0.00
5.48
0.03
0.00
0.00
1.96
0.01
1.68
0.74
0.46
0.00 76.76 25.38
0.00
0.00
0.00
5.24
0.00
%
Change
00/99
6.17
42.45
N/A
N/A
-33.92
0.00
0.00
84223006: Metering-packing machines, by volume or by weight, for bulk products, in bags
or other similar containers, whether or not provided with closing—Total Imports
Country
0
1
2
3
4
5
6
7
8
9
10
11
12
THE WORLD
United States
Germany
Japan
Australia
Spain
France
Canada
Netherlands
Switzerland
Guatemala
Italy
China
Million US$
1998 1999 2000
11.33
2.18
5.14
0.39
0.00
0.92
0.00
0.10
0.91
0.07
0.00
1.57
0.00
8.96
3.00
0.76
0.32
0.01
2.58
0.25
0.06
0.97
0.38
0.04
0.57
0.02
% Share
1998
1999
2000
7.28 100.00 100.00 100.00
2.62 19.25 33.45 36.01
2.15 45.36
8.53 29.57
0.98
3.44
3.55 13.44
0.45
0.00
0.07
6.24
0.32
8.12 28.77
4.37
0.28
0.02
2.76
3.86
0.19
0.88
0.68
2.66
0.13
8.06 10.87
1.75
0.10
0.62
4.20
1.37
0.04
0.00
0.44
0.49
0.01 13.88
6.38
0.19
0.00
0.00
0.20
0.05
%
Change
00/99
-18.73
-12.53
181.88
207.70
N/A
-87.66
13.70
218.65
-86.95
-73.51
-9.62
-97.53
-77.78
84223007: For vacuum packing, in flexible containers
Country
0
1
2
3
4
5
6
7
8
9
10
11
12
13
THE WORLD
United States
Germany
Japan
France
Canada
European Union
Netherlands
Italy
Switzerland
New Zealand
Korea, South
China
Spain
Million US$
1998 1999
2000
2.56
0.85
0.83
0.37
0.00
0.27
0.00
0.05
0.00
0.16
0.00
0.00
0.00
0.02
3.34
1.29
0.57
0.03
0.00
0.28
0.00
0.13
0.39
0.03
0.00
0.02
0.02
0.53
% Share
1998
1999
2000
4.63 100.00 100.00 100.00
2.28 33.00 38.48 49.23
0.62 32.31 16.98 13.50
0.43 14.29
0.97
9.39
0.43
0.00
0.00
9.27
0.31 10.71
8.45
6.66
0.18
0.00
0.00
3.86
0.11
2.10
3.88
2.48
0.11
0.14 11.54
2.42
0.05
6.20
0.90
1.00
0.03
0.00
0.00
0.58
0.03
0.00
0.47
0.55
0.02
0.11
0.73
0.42
0.02
0.95 15.90
0.33
251
%
Change
00/99
38.48
77.18
10.06
N/A
9.19
N/A
-11.34
-70.97
53.79
N/A
62.85
-20.23
-97.16
84223009: Tea packaging machines, in pouches, labelers—Total Imports
Country
0
1
2
3
4
5
THE WORLD
Argentina
United States
Spain
Italy
Malaysia
Million US$
1998 1999 2000
0.08
0.07
0.00
0.00
0.00
0.00
0.23
0.00
0.00
0.00
0.23
0.00
% Share
1998
1999
2000
0.12 100.00 100.00 100.00
0.08 98.07
0.00 61.81
0.05
0.02
0.52 38.19
0.00
0.00
0.00
0.00
0.00
0.00 99.48
0.00
0.00
1.91
0.00
0.00
%
Change
00/99
-45.59
N/A
N/A
0.00
0.00
0.00
84223010: For packing milk, juice, fruits, and other similar products, and in addition,
forming and closing their own disposable plastic or paperboard containers—Total Imports
Country
0
1
2
3
4
5
6
7
8
9
10
THE WORLD
Australia
Italy
Japan
United States
Sweden
France
Spain
China
Germany
United Kingdom
Million US$
1998 1999 2000
% Share
1998
1999
2000
12.29 36.45 32.05 100.00 100.00 100.00
1.54 8.78 6.59 12.54 24.08 20.58
1.87 7.21 6.11 15.22 19.78 19.05
0.00 1.50 5.67
0.00
4.12 17.69
1.66 3.82 4.06 13.54 10.48 12.66
4.37 11.80 3.98 35.54 32.37 12.42
0.45 2.10 3.95
3.66
5.77 12.31
0.28 0.83 0.62
2.32
2.26
1.94
0.00 0.00 0.59
0.00
0.00
1.85
1.36 0.01 0.21 11.04
0.03
0.65
0.00 0.19 0.16
0.00
0.52
0.49
%
Change
00/99
-12.08
-24.88
-15.35
277.60
6.26
-66.26
87.74
-24.83
N/A
N/A
-15.99
84223011: Overcapping capsuling machines—Total Imports
Country
0
1
2
3
4
5
6
THE WORLD
Brazil
Canada
United States
European Union
Italy
Japan
Million US$
1998 1999 2000
0.31
0.00
0.00
0.13
0.00
0.09
0.00
1.01
0.00
0.01
0.51
0.00
0.00
0.33
% Share
1998
1999
2000
0.75 100.00 100.00 100.00
0.27
0.00
0.00 35.83
0.18
0.00
0.89 23.75
0.17 42.07 50.28 22.48
0.09
0.00
0.00 11.65
0.05 28.81
0.00
6.18
0.00
0.00 32.27
0.11
252
%
Change
00/99
-26.45
N/A
N/A
-67.12
N/A
N/A
-99.76
Country
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
THE WORLD
United States
Italy
Germany
Spain
United Kingdom
Canada
Netherlands
France
Switzerland
Taiwan
Brazil
Japan
Argentina
China
Venezuela
Korea, South
Sweden
Denmark
Million US$
1998 1999 2000
% Share
1998
1999
2000
61.85 53.23 48.53 100.00 100.00 100.00
33.58 31.21 29.66 54.28 58.63 61.12
10.22 8.63 5.98 16.52 16.22 12.31
2.21 3.54 4.46
3.57
6.64
9.20
1.31 3.31 2.62
2.11
6.22
5.40
0.94 0.86 1.93
1.52
1.62
3.98
2.76 1.16 1.07
4.46
2.18
2.21
1.05 1.33 0.68
1.70
2.49
1.40
3.79 0.91 0.56
6.13
1.71
1.16
0.86 0.02 0.30
1.40
0.04
0.62
0.06 0.26 0.24
0.09
0.50
0.50
0.02 0.21 0.24
0.04
0.39
0.50
0.06 0.23 0.20
0.10
0.42
0.42
0.12 0.24 0.17
0.20
0.45
0.35
0.01 0.05 0.09
0.02
0.09
0.19
0.00 0.14 0.09
0.00
0.26
0.18
0.02 0.11 0.09
0.03
0.20
0.18
3.15 0.26 0.06
5.09
0.50
0.12
1.23 0.22 0.03
1.99
0.42
0.05
253
%
Change
00/99
-8.83
-4.96
-30.78
26.21
-20.78
123.66
-7.50
-48.81
-38.17
N/A
-9.05
16.98
-10.29
-28.80
89.56
-34.11
-19.30
-77.25
-88.51
84224001: Tying or strapping machines, including hand operating—Total Imports
Country
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
THE WORLD
United States
Taiwan
Netherlands
Germany
Italy
Canada
Japan
Switzerland
Korea, South
China
Spain
Thailand
Sweden
France
United Kingdom
Hong Kong
Belgium
Million US$
1998 1999 2000
8.16
4.25
1.25
0.00
0.91
0.52
0.11
0.22
0.37
0.02
0.00
0.40
0.02
0.02
0.00
0.00
0.00
0.00
5.83
2.53
0.83
0.00
0.15
0.53
0.56
0.11
0.02
0.07
0.05
0.10
0.01
0.01
0.00
0.81
0.00
0.00
% Share
1998
1999
2000
8.78 100.00 100.00 100.00
5.12 52.09 43.30 58.30
0.86 15.27 14.15
9.77
0.74
0.00
0.08
8.43
0.74 11.10
2.60
8.38
0.50
6.36
9.10
5.69
0.32
1.30
9.67
3.59
0.18
2.73
1.88
2.00
0.11
4.49
0.32
1.28
0.09
0.26
1.25
0.98
0.08
0.02
0.82
0.93
0.02
4.92
1.66
0.27
0.02
0.19
0.12
0.22
0.00
0.23
0.19
0.06
0.00
0.01
0.00
0.04
0.00
0.03 13.82
0.03
0.00
0.01
0.03
0.02
0.00
0.00
0.00
0.01
%
Change
00/99
50.60
102.74
3.95
N/A
385.44
-5.80
-44.02
59.92
499.81
17.91
69.66
-75.27
174.26
-56.76
N/A
-99.62
6.97
278.03
84224002: Of a unit weight not exceeding 100 kg, for encasing, metallic containers—Total
Imports
Country
0
1
2
3
4
THE WORLD
United States
Germany
Taiwan
Italy
Million US$
1998 1999 2000
0.00
0.00
0.00
0.00
0.00
0.11
0.00
0.00
0.00
0.11
% Share
1998
1999
2000
0.06 100.00 100.00 100.00
0.04 100.00
0.19 61.12
0.02
0.00
0.00 35.21
0.00
0.00
0.00
3.66
0.00
0.00 99.81
0.00
254
%
Change
00/99
-42.21
N/A
N/A
N/A
0.00
84224003: For packaging confectionery products—Total Imports
Country
0
1
2
3
4
5
6
7
THE WORLD
Netherlands
Italy
United States
Switzerland
Spain
United Kingdom
Germany
Million US$
1998 1999 2000
1.43
0.50
0.15
0.02
0.33
0.00
0.16
0.00
2.71
0.42
0.60
0.88
0.41
0.00
0.23
0.13
% Share
1998
1999
2000
5.69 100.00 100.00 100.00
2.01 34.82 15.38 35.30
1.72 10.82 22.06 30.28
1.03
1.67 32.48 18.10
0.40 23.36 14.97
6.99
0.26
0.00
0.00
4.63
0.22 11.34
8.39
3.81
0.05
0.00
4.69
0.85
%
Change
00/99
110.04
382.07
188.28
17.03
-1.93
N/A
-4.71
-61.95
84224004: Box packing or unpacking machines for bottles—Total Imports
Country
0
1
2
3
4
5
6
7
8
9
THE WORLD
United States
Italy
Germany
France
Brazil
Spain
Austria
Argentina
Canada
Million US$
1998 1999 2000
% Share
1998
1999
2000
12.18 16.52 20.94 100.00 100.00 100.00
4.81 9.53 12.38 39.50 57.69 59.12
4.81 6.48 6.98 39.50 39.21 33.31
1.07 0.24 1.29
8.78
1.47
6.14
0.71 0.00 0.16
5.85
0.00
0.76
0.37 0.27 0.06
3.03
1.64
0.29
0.00 0.00 0.06
0.00
0.00
0.28
0.00 0.00 0.02
0.00
0.00
0.10
0.28 0.00 0.00
2.30
0.00
0.00
0.13 0.00 0.00
1.04
0.00
0.00
%
Change
00/99
26.76
29.90
7.71
429.44
N/A
-77.84
N/A
N/A
0.00
0.00
84224005: Automatic machines for placing and wrapping compact discs in a case—Total
Imports
Country
0
1
2
3
4
5
THE WORLD
Germany
United Kingdom
United States
Netherlands
China
Million US$
1998 1999 2000
0.06
0.00
0.00
0.06
0.00
0.00
0.77
0.58
0.00
0.19
0.00
0.00
% Share
1998
1999
2000
0.30 100.00 100.00 100.00
0.16
0.00 75.75 51.35
0.05
0.00
0.00 17.43
0.05 98.41 24.25 17.08
0.04
0.00
0.00 14.15
0.00
1.59
0.00
0.00
255
%
Change
00/99
-60.61
-73.30
N/A
-72.27
N/A
0.00
Country
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
THE WORLD
United States
Italy
Germany
France
Sweden
Netherlands
Canada
Korea, South
Spain
Argentina
European Union
Denmark
Brazil
Switzerland
Taiwan
Japan
United Kingdom
Australia
Cape Verde
Colombia
Austria
Million US$
1998 1999 2000
88.53
42.86
22.12
10.16
1.29
1.70
1.88
1.96
0.20
0.90
0.45
0.65
0.04
0.41
0.77
0.60
0.80
1.29
0.00
0.00
0.27
0.10
% Share
1998
1999
2000
97.26 98.55 100.00 100.00 100.00
43.72 45.76 48.41 44.95 46.43
23.59 23.13 24.98 24.25 23.47
10.80 9.85 11.48 11.10 10.00
2.80 2.37
1.45
2.88
2.40
2.83 2.26
1.92
2.91
2.29
1.44 2.18
2.12
1.48
2.21
2.00 1.73
2.22
2.05
1.76
0.60 1.39
0.23
0.62
1.41
1.94 1.36
1.02
2.00
1.38
1.95 1.36
0.50
2.00
1.38
0.03 1.29
0.73
0.03
1.31
0.33 1.16
0.04
0.34
1.18
0.11 1.14
0.46
0.11
1.16
0.51 0.70
0.86
0.53
0.71
0.72 0.56
0.67
0.74
0.57
1.51 0.55
0.91
1.55
0.56
1.12 0.54
1.45
1.15
0.54
0.00 0.32
0.00
0.00
0.32
0.00 0.18
0.00
0.00
0.18
0.00 0.15
0.30
0.00
0.15
0.00 0.11
0.11
0.00
0.11
256
%
Change
00/99
1.33
4.66
-1.94
-8.74
-15.47
-20.32
51.11
-13.13
130.90
-29.72
-30.12
N/A
248.40
931.63
35.72
-22.01
-63.36
-52.12
N/A
N/A
N/A
N/A
PARTS
84229001: Being recognized as exc lusively designed for cleaning or drying machines or
apparatuses or packing machines—Total Imports
Country
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
THE WORLD
Sweden
United States
Germany
Italy
France
Brazil
European Union
Spain
Denmark
Canada
Argentina
Afghanistan
Japan
Switzerland
Panama
Austria
Belgium
United Kingdom
Australia
Netherlands
China
Cuba
Czech Republic
India
Chile
Nicaragua
Guatemala
Million US$
1998 1999 2000
8.13
1.74
3.04
1.18
0.48
0.41
0.57
0.05
0.03
0.15
0.22
0.06
0.00
0.07
0.06
0.00
0.01
0.00
0.05
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
% Share
1998
1999
2000
8.50 10.13 100.00 100.00 100.00
2.30 3.00 21.40 27.05 29.62
3.04 2.65 37.36 35.77 26.18
1.11 1.51 14.45 13.05 14.90
0.68 0.89
5.91
8.05
8.76
0.41 0.64
5.08
4.82
6.32
0.28 0.61
6.95
3.33
6.07
0.07 0.16
0.63
0.78
1.59
0.07 0.15
0.42
0.82
1.45
0.10 0.11
1.81
1.22
1.13
0.06 0.09
2.75
0.74
0.89
0.02 0.07
0.76
0.25
0.69
0.00 0.05
0.00
0.00
0.54
0.05 0.05
0.88
0.64
0.50
0.09 0.03
0.79
1.09
0.34
0.04 0.03
0.00
0.46
0.27
0.01 0.02
0.07
0.16
0.25
0.00 0.02
0.00
0.00
0.16
0.04 0.01
0.65
0.41
0.14
0.00 0.01
0.00
0.00
0.11
0.00 0.01
0.01
0.04
0.06
0.00 0.00
0.00
0.03
0.02
0.00 0.00
0.00
0.00
0.02
0.00 0.00
0.01
0.00
0.00
0.00 0.00
0.00
0.00
0.00
0.00 0.00
0.00
0.00
0.00
0.00 0.00
0.00
0.00
0.00
0.01 0.00
0.00
0.07
0.00
257
%
Change
00/99
19.23
30.57
-12.74
36.09
29.83
56.07
117.17
142.82
110.64
10.45
43.66
231.04
N/A
-7.38
-62.51
-31.58
81.17
N/A
-60.62
N/A
75.42
-15.07
N/A
N/A
N/A
N/A
N/A
-96.81
84229004: Door assemblies being recognized as exclusively designed for those goods
included in subheading 8422.11—Total Imports
Country
0
1
2
3
4
5
6
7
THE WORLD
United States
Japan
Germany
Argentina
Korea, South
Taiwan
Greece
Million US$
1998 1999 2000
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
% Share
1998
1999
2000
0.00 100.00 100.00 100.00
0.00 60.86 98.46 83.31
0.00
0.00
0.00 16.69
0.00
1.41
0.00
0.00
0.00 18.22
0.00
0.00
0.00
0.27
0.00
0.00
0.00 19.23
0.00
0.00
0.00
0.00
1.54
0.00
258
%
Change
00/99
-55.86
-62.65
N/A
0.00
0.00
0.00
0.00
0.00
Country
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
THE WORLD
United States
Italy
Germany
European Union
France
Norway
Spain
Australia
Belgium
United Kingdom
Argentina
Switzerland
Japan
Canada
Netherlands
Brazil
Puerto Rico (US)
Taiwan
Denmark
Korea, South
Sweden
Venezuela
China
Colombia
Malaysia
Portugal
Million US$
1998 1999 2000
% Share
1998
1999
2000
26.61 28.24 33.73 100.00 100.00 100.00
14.46 15.08 18.52 54.35 53.40 54.88
4.55 4.83 6.02 17.11 17.12 17.85
3.51 3.37 3.32 13.20 11.93
9.85
0.04 0.36 0.84
0.16
1.29
2.48
0.56 1.02 0.71
2.12
3.60
2.11
0.00 0.00 0.59
0.00
0.00
1.75
0.32 0.41 0.56
1.20
1.46
1.66
0.11 0.35 0.51
0.42
1.24
1.51
0.21 0.07 0.43
0.81
0.25
1.29
0.52 0.50 0.42
1.95
1.76
1.24
0.07 0.18 0.42
0.25
0.64
1.23
0.40 0.32 0.26
1.51
1.12
0.76
0.20 0.19 0.25
0.74
0.66
0.75
0.36 0.30 0.23
1.33
1.06
0.70
0.65 0.75 0.21
2.43
2.66
0.64
0.11 0.10 0.11
0.40
0.35
0.32
0.03 0.05 0.07
0.10
0.16
0.22
0.23 0.05 0.06
0.86
0.18
0.17
0.06 0.09 0.05
0.22
0.32
0.14
0.02 0.02 0.05
0.07
0.06
0.14
0.08 0.06 0.03
0.31
0.22
0.09
0.00 0.00 0.03
0.00
0.01
0.08
0.02 0.01 0.01
0.06
0.02
0.04
0.00 0.00 0.01
0.00
0.00
0.04
0.01 0.00 0.00
0.04
0.00
0.01
0.00 0.09 0.00
0.00
0.32
0.01
259
%
Change
00/99
19.46
22.78
24.52
-1.30
129.84
-30.04
N/A
35.88
45.85
510.70
-15.45
129.64
-19.44
36.72
-21.32
-71.41
10.29
65.70
8.45
-46.69
174.25
-48.87
N/A
121.41
N/A
N/A
-96.64

Nestlè México, SA de CV - staging.files.cms.plus.com

Transcription

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