Rising labour costs create opportunities for Dutch palletizer

The Dutch machine builder Verbruggen has at last recently launched its China strategy and office. The company designs and builds tailored palletizing machines for agriculture and fresh products.

“Our official launch was in January. We have two people on the team, one in the Netherlands and one travelling through China. We are currently exploring the North of the country, Shandong, Hebei, Jilin Province. In these regions there is large potato, onion and carrot production. We are also trying to find local distributors with whom we can cooperate. Our strategy is top-down: we want to start working with large, reliable clients first before we can grow,” says Ning Fan, the sales representative for the Chinese market of Verbruggen in the Netherlands.

“The Chinese market is different to any of the other markets we operate in. The market is more based on networking, connections and trust. As such it is a learning process for us and we need to find our way in. The installations we build are costly, therefore we want to start working with well-established companies that are financially stable. We entered other markets, including France and Spain, through distributors, and we want to do the same in China. In addition, we will attend a number of trade fairs in China this year, including a potato expo in June”.

“Labour costs in China are rising, which creates opportunities for our solutions. The return on investment is two to five years for companies that invest in our machines. In addition, we can reduce damage loss to the product and risks of injuries.”

“In China, we compete with a sort of robot-arm palletiser. Its capacity its low, and the cost per stacked product is higher. They have been on the market for years now and many companies are equipped with them. Chinese agriculture companies can be risk adverse, and it takes time to convince about new technology. We are working on our relationship with local commercial companies, such as packaging companies. Palletizing is the last step in a full chain of sorting, grading and packing. We are now in talks with one of China's largest animal feed companies. The company collects maize and other products from the farmer and process it in their own factories into animal feed for different clients. Our solution can be used at the farmer's side and at the outgoing end of the processing factory.”

Currently, in China, there are almost no standardised packing and transport processes. Different producers, buyers and logistics companies employ different systems and standards. At first, this situation makes it harder to enter the market. However, it also creates opportunities for companies such as Verbruggen, which can provide universal solutions.

Verbruggen (VPS company) has 25 years of experience. The company is based in the Netherlands and has clients in 36 countries. In total, the company has sold almost 1000 machines on the international market. Solutions range from smaller sized machines with a capacity of nine bags per minute to larger machines with a maximum capacity of 40 bags per minute. Bags size can vary between 2.5 up to 50 kilograms. The machines are designed for hard and homogeneous or globe shape products such as potatoes, onions, rice, and fertilizers. Products can be packed in boxes and cartons. Machines parts are mainly made in Europe. All machines are assembled and tested in the Netherlands first, after which they are dismantled and shipped to the client.

For more information:

Ning Fan, Sales Representative
Verbruggen Palletizing Solutions
+31 527 62 02 32

Yanbo Wu
Sale Representative China
+31 0527620232

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