"By 2010, China will become the world's fifth-largest pharmaceutical market and it will become the world's largest market by 2050." Dr. Udo Ungeheuer, Chairman of the SCHOTT Group's Board of Directors, told reporters his judgment: "The Chinese market is still a low-cost product. With the dominant position, high-end products are almost blank. With the rapid growth of the Chinese medical market, I believe that the demand for high-end pharmaceutical packaging products will grow at a rate of 15% per year. Therefore, we have clearly positioned our products in the high-end market."
Although it was opposed by some domestic companies, the Schott Group's large-scale pharmaceutical packaging plant was still officially put into operation in Suzhou recently. SCHOTT also became the first multinational manufacturer of glass and pharmaceutical primary packaging products licensed by the State Food and Drug Administration and set up a production base in China.
Schott Company is famous in the world for producing high-quality medical glass tubes and glass bottles. The European and American medical control glass bottle market is basically occupied by a few Western companies such as SCHOTT. Therefore, when the world's leading special glass manufacturer brewing landed in the Chinese pharmaceutical packaging market, it has caused considerable panic and resistance in the pharmaceutical packaging industry, which is already in excess capacity.
According to the company SCHOTT, the new plant has a designed capacity of 100 million medicinal vials and ampoules per year, and its products will be mainly used for domestic sales.
Claiming not to fight price war
Schott is also clearly aware of the fascination of the Chinese pharmaceutical packaging industry. On the day the plant was put into production, Udo Ungeheuer reiterated: “We have no intention of competing with local suppliers, and we will not fight the price war. Our intention is clear, mainly to develop the high-end market for Chinese pharmaceutical packaging.â€
“I think that domestic opposition is actually not necessary.†Ning Menghao, president of SCHOTT Group China, showed a bit of helplessness during the interview. He said: “In fact, as a high-end product, our production costs are very high. It is impossible and Chinese companies The price competition can only be quality competition, and China's high-end and low-end markets are very polarized, and only pharmaceutical companies with high quality requirements will choose us and will not cause so-called 'threat' to most Chinese companies. â€
The reporter found at the SCHOTT Suzhou plant that the current production line was not fully operational. Although Schott was unwilling to disclose the current capacity for actual production, according to field observations, the current production scale should be much smaller than the industry had expected.
In this regard, Ning Menghao admitted that the current high-end market size in China is not large, so it is necessary to adjust production capacity in accordance with actual market needs. However, he revealed that based on the confidence in market potential, it will certainly increase production in about two years.
Domestic companies urgently need to accelerate the upgrade
It is understood that the competition in the pharmaceutical control glass bottle industry in China is currently very fierce. The annual production capacity of domestic companies is more than 170% of the market's actual demand, and the production capacity has become super-saturated. And because China's domestic pharmaceutical glass bottles in the appearance of the product and physical and chemical indicators have a big gap with the West. Therefore, although SCHOTT's "fighting card" emphasizes unintentional competition, the huge economic and technological strengths of foreign capital and the rising raw material costs make many companies that are accustomed to low-price competition that the pressure on the industry is increasing.
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