Packwest is no stranger to the Asian market – it has been exporting its packaging solutions to Japan, Taiwan, Korea and China for close to 15 years.
The company even employed its own China business relations manager and managing director Ron Pierce can see many ways the Free Trade Agreement will work in its favour.
Packwest offers specialty packaging services and solutions with a focus on cold chain packaging design, qualification and supply of passive temperature-controlled packaging solutions for pharmaceuticals and bioscience companies in Asia Pacific, where it has enjoyed success exporting its solutions to Asia.
"Asia is our region of specialisation, where we have developed a strong network of customers and supply partners," Pierce says.
FINDING SYNERGY
In August 2015, Packwest acquired BubblePack NSW, a division of the Victoria-based BubblePack Group.
Director of operations, Scott Pierce, says, “We had a three-year association with BubblePack NSW, which had been providing value-added laminating services integral to Packwest’s cold chain coolant packs. When BubblePack announced its intentions to rationalise operations, it was a natural fit for Packwest to acquire the business.”
The synergies with Bubblepack and bubblewrap manufacturing facilities were compelling for Packwest, according to Ron Pierce.
“Our aim is to offer a choice in the market as an alternative to the larger producers," he says.
"We are capable of servicing distribution companies offering a broad range of packaging supplies, while focusing on niche, high performance bubble laminated products where there is a greater return on investment and value add for customers.”
FRESH MILK EXPORT SUCCESS
For Packwest, food and perishables logistics – where temperature control is also critical for maintaining freshness and quality during shipment – also presents attractive market opportunities.
“One of our major success stories is getting fresh milk from the farm gate to the table of food safety conscious Chinese consumers,” Pierce says.
In partnership with Peloris Global Sourcing (PGS), the team at Packwest drew on their cold chain packaging experience and adapted a highly insulating, reflective cover in combination with special coolants to provide a solution that would keep milk fresh in transit and beyond.
Peter Verry, MD at PGS, comments, “Working with Ron and Scott we have achieved what many sceptics claimed was ‘impossible’ – to ship fresh milk at <4°C from Norco Dairy in northern NSW, via Sydney and have it flown with Qantas to Shanghai”.
PGS took 18 months to develop its ‘green channel’ working with China Quarantine & Inspection Services in Shanghai, the Shanghai Airport Authority and other service providers and compliance regulators.
“We had to get all parties aligned and reduce the processing time for each stage of the transit to ensure we received all the appropriate health and safety approvals to clear and release the milk into the China distribution channels to the consumer with adequate remaining shelf life,” Peter Verry explains.
Packwest and Peloris are continuing to collaborate on developing innovative packaging to provide cost effective logistics solutions for high-value, temperature-sensitive food products.
“Air is the best and cheapest insulator of all and by combining it with our high performance reflecting, insulating bubble structures we can open pathways for safe distribution of many food products,” Pierce says.
Both Ron and Scott concur that the recent signing of the Free Trade Agreement with China has opened the door to Australian food and dairy producers to enter this attractive export market. They believe that working in cooperation with Peloris and adopting its ‘green channel’ – a temperature safe logistics pathway – could be the link to accessing and gaining entry into this lucrative market.
For the full story, see page 32 of the print edition of PKN January-February 2016. The digital version of this issue is accessible on the home page of our website, or click here.
