1. The natural advantage of Vietnam XX company and the challenge it is facing
Vietnam XX company was founded in 2008. It is one of the five most strong plastic filled masterbatch manufacture enterprise. It sells more than ten thousand masterbatch every month. Its main products include PP filled masterbatch, PE filled masterbatch, white masterbatch, black masterbatch, multicolor masterbatch and modified masterbatch. Currently it has established the sales network in more than 60 countries around the world. The "Europlas" brand has registered its trademark in more than 40 countries worldwide. The company has been granted the title of "leading enterprise in the field of filling masterbatch", "one of the 500 most strong enterprises in Vietnam" and "the enterprise with the most high increasing speed in Vietnam" in two continuous years.
Compared with other enterprises in home and abroad, Vietnam XX company has many natural advantages. First, it has ample natural mining resources, which is marble ore with high quality. It content of calcium carbonate is more than 98%. The whiteness of the stone is even better than the calcite mineral from Hezhou, Guangxi in our country. The heavy calcium carbonate powder product is applicable many fields such as PVC tubular product, extrudate, calendaring film, paint and coatings, cables and wires, rubber, food and medicine. Second, the capita GDP of Vietnam is less than that of China which brings it the advantage of low cost of labor and electricity. Third, the location of Vietnam is rather favorable. The coastline is as long as 3260 km. There are many harbors which features convenient transportation. Fourth, customers can take the advantage of the preferential policy of AFTA and sell their products to the other countries of ASEAN. Five, there is little obstacles of export trade in Vietnam and most countries have no trade barrier to Vietnam which is great advantage to customers who want to expand their overseas market. Six, the Vietnam government is strengthening its infrastructure and ancillary facility so the domestic demand would be stimulated and the demand for powder products would increase.
However, at the beginning of the developing period, the downstream processing industry has little demand of the properties of powder products such as D50, specific surface area, content of 2μm fine powder, oil absorption and fluidity. The price of roller grinding mill is also low, so the market of powder grinding equipment developed quickly in Vietnam. Vietnam XX company imported six Chinese grinding roller mills for the following three reasons. First, the investment cost is low and the capital reflow is fast. Second, the fineness of the powder product of grinding roller mill is high and varies in a large range. Products from 400 category to 2500 category are all available. Third, the equipment only occupies a small area and the installation cost is low.
With the continuous development of calcium carbonate industry, grinding roller equipment falls behind the demand of the market gradually and its drawbacks appears more and more urgent. The fineness of the powder products produced by their previous equipment cannot meet the demand of the market and the added value is relatively low.
Generally speaking, the hourly output of grinding roller mill is low and cannot meet the demand of large scale production. Second, the shapes of the powder granule is irregular and the content of fine powder sizing 2is not high enough. The fields to which it can be applied is rather limited. Third, the material of the wearing piece is inferior. It features serious wearing, high replacing frequency and increasing longer maintenance time. Fourth, during the grinding process, the whiteness is damaged which would affect the usage of downstream customers. The biggest problem is that most powder manufacture enterprises use the same kind of manufacture equipment which deprived the market of its diversity. So the problem of homogenization deepens. Different companies can only lower the cost to increase their sales which makes them involved in the price war. Gradually, their products lose the advantages in the competitive market.
2. The customer purchased vertical ultrafine grinding mill and activation modifier and produce products of different kinds to raise its competitive strength
In recent years, the mechanical products from China are greatly welcomed by Vietnam companies for their high quality and low price. As the domestic leading enterprise in the field in vertical ultraultrafine powder vertical roller mill manufacture, Vsunny went to Vietnam to extend its market in 2016. We visited the main places of origin of marble mineral and calcite mineral and deepened our understanding of plastic manufacture enterprise as well as the development demands of calcium carbonate powder processing workshop. We made abundant investigation of the market to extend the Vietnamese market. Once in a research activity in Vietnam organized by the Chinese plastic association multifunctional masterbatch committee of Vsunny, we got acquainted with Vietnam XX company and we discussed about the processing and application of Vietnamese calcium carbonate powder. The project manager of Vietnam XX company came to realize the challenge they are currently facing.
During the discussion, Manager Chen of the foreign trade department of Vsunny shared his foreign sales experience of powder product and the quality problems of powder products of domestic downstream enterprises and corresponding solutions. At the same time, we had in-depth discussion with our customer about the advantages and disadvantages of their equipment and suggestions for process optimization aiming at the equipment they are currently using.
Later on, we sampled the stones on the mine many times and analyzed its chemical composition and crystal structure and proposed targeted configuration solutions. According to the customer's demand of expanding high end market, we analyzed the characteristics of downstream products and suggested adopt our activation modifier along with specialized chemical additive to improve its properties during application such as dispersity and fluidity. So that the added value of the product can be raised. With respect to the material selection of the equipment, we helped our customer choose more wearing tolerant material for quick-wear parts to lengthen the lifetime of the equipment.
After repeated communication, Vsunny won the trust of our customers with its more than ten years' experience in powder manufacture industry. The customer intend to purchase a vertical ultraultrafine powder vertical roller mill and activation modifier from us to produce products of different kinds to raise its competitive strength. Compared with the grinding roller mill our customer is using, the size range of our finished powder granule is large and the proportion of powder with fineness under 2μm can be 10%-60%. The fine powder product produced by the main body of the grinding mill has a small range of size distribution. The content of powder with the size of 2 can be adjusted. The added value of the profit of the powder product is high. It can be applied to a wide range of fields which exactly meets the demands of Vietnamese downstream customers. Compared with equipment of the same kind in our country, our vertical grinding mill has higher production, lower power consumption and less dust pollution. The wearing tolerant parts of the grinding mill all adopt imported high chrome alloy steel so that the lifetime can be lengthened and the maintenance cost can be lowered.
3. Future plan
Currently, we have entered the initial stage of cooperation with Vietnam XX company and the customer is full of expectation with our cooperation. Next, Vietnam XX company would use our vertical ultraultrafine powder vertical roller mill and activation modifier to deep process the powder and raise its added value as well as extend the market of East Asia and neighboring regions. We would take the demands of the customer fully into consideration and select proper ancillary facility for them. We would full-way trace the production line from design and manufacture to installation and debugging.