• News
  • eNews
  • Connections
  • Specials
  • Videos
  • Events
  • Event Calendar
Jwell: How to be a powerful “Little Giant”?
Source:Adsale Plastics Network     Editor:    Date:13.Apr.2021

In 2020, the unprecedented COVID-19 pandemic has ravaged the global economy. China is one of the first economies to recover from the pandemic, with some companies performing markedly better. Some foreign firms also made good progress and are ready to bring their businesses to new heights in China and Asia.

 

Rita Chu, Vice Chairman of the Adsale Group, talked to He Haichao, Chairman of Jwell Machinery Co., Ltd. on the recent market challenges and the leaders’ management models to keep their company competitive in the face of uncertainty.

 

Rita pursued her studies at Northwestern University in the US, as well as London School of Economics in the UK.  A certified accountant, she joined the Adsale Group in 2010 and became the Vice Chairman of the Group in 2019.


Rita Chu_WEB.jpg

Rita Chu,Vice Chairman of the Adsale Group.

 

He Haichao is founder and Chairman of Jwell Machinery Co., Ltd., a leading plastic extrusion machinery manufacturer. In addition to focusing on the "ecological chain platform" and production efficiency, Mr He stepped up the transformation of the traditional manufacturing industry by launching the “Little Giant Enterprise” management model, aiming at achieving billion-dollar earnings for each holding company.


hehaichao_WEB.jpg

He Haichao, founder and Chairman of Jwell Machinery Co., Ltd.

 

Founded in 1997, Jwell Machinery Co., Ltd. is a manufacturer of complete sets of polymer extrusion machinery. It has seven production bases in Shanghai, Suzhou, Changzhou, Guangdong, Zhoushan, Haining and Thailand, with an annual output of over 3,000 sets of high-end polymer extrusion lines and other complete sets of equipment. Jwell owns more than 20 holding companies, and its products feature polymer material compounding and granulation, extrusion lines for pipes, profiles, sheets , non-woven fabrics, chemical fibers, as well as accessories like blow molding machines, recycling machines (crushing, washing, pelletizing), single-screw/twin-screw extruders and screws, barrels, T-dies, multi-layer round dies, screen changers, rollers, automatic auxiliary machines, etc.

 

An unprecedented year of 2020

 

Chu: 2020 was an unprecedented year with loads of challenges. May you please talk about the development of Jwell during the year and share your thoughts with us?

 

He: The global economy was ravaged by the pandemic last year, but we have seen an overall improvement in China, and our industry is doing very well. Jwell’s holding companies achieved sales of RMB 3.7 billion, notching a new record in history. It has also put pressure on us because there have been “skyrocketing” demands for various industries. We have to be well-prepared for the development of novel technologies and applications in the following years.


As for me, I was “swamped with work” in 2020. But I cherish the present and rethink of my life. I believe many people share the same thoughts as me.

 

Chu: We know that Jwell has a wide range of extrusion product lines. You mentioned that there have been “skyrocketing” demands for various industries. Which sectors do you refer to?


He: Jwell has a wide range of extrusion products and the categories are being expanded. The most important for us is the new polymer materials which are suitable for various applications. The launch of a new material represents a great leap forward for the industry. For instance, degradable material is the hotspot this year. Waterproof polymer membranes, protective films, functional films and POE films for solar photovoltaics were launched in the past few years. These new materials are pivotal for the development of the extrusion industry.


In the recent years, JWELL has developed ASA decoration film extrusion line, biodegradeable starch filled compounding line, PET bottle flake recycling pelletizing line, Graphene coating film composite production line, Transparent PVC medical granulation line, Three-layer 1600mm Pipe extrusion die head, BM30 Continuous extrusion double-layer inline blow moulding machine, PA embossing extrusion line, 8500mm wide water proof sheet extrusion line, etc.


Last year, the overall performance of each sector was good. For example, Dyun Environmental Technology Co., Ltd., a manufacturer of recycling equipment, has doubled its sales year-on-year in 2020. We noticed that, along with the economic recovery, the rise of raw material prices, as well as the implementation of sorting and recycling, the potential of the recycling industry is shown.


The sheet film sector has also sustained a rapid development. Some big customers purchased RMB 100 million of products from Jwell. This sector is developing in an unprecedented way. In recent years, the rising demands in construction, sanitary and automotive industries have spurred the demand for equipment.


jwell_liyang_WEB.jpg

Jwell is a leading Chinese manufacturer of complete sets of polymer extrusion machinery and owns several production sites. 


Chu: Recycling and degradability are the hotspots in the industry. What do you think about circular economy and sustainable development? Will Jwell consider further deployment in these areas?

 

He: Recycling and degradability are the focuses of the industry now. Firstly, the price of raw materials has risen. Secondly, recycling has received extensive attention from the government, and is supported by rules and regulations.


The recycling industry should sustain its momentum. Currently, non-degradable plastics account for more than 99%. If such a large volume of plastics cannot be recycled, the loss will be tremendous. The prospect of the recycling industry will be promising, especially when people develop the habits of sorting recyclable waste.


The price of rPET is higher than that of new PET, which is an attractive factor for the companies. Jwell has developed in this area since the very beginning. The production lines include rPET spinning, pelletizing, sheet, etc. We will continue to expand in this area.


However, due to the higher price of degradable new materials, a lot of raw materials have been hoarded. In 2020, there was a huge gap between the supply and demand of degradable materials. We only sold 14 pelletizing production lines for degradable materials last year, and many customers said that there were insufficient raw materials. It is expected that the shortage of degradable raw materials will slightly improve in 2021. Currently, degradable material market does not account for a large proportion for our industry, but we will keep a close eye on this market.

 

A strong supply chain: From "teamwork" to "ecological chain platform"

 

Chu: The development of new materials has a huge impact on Jwell. In a bid to keep up with the ever-changing market and new demands, R&D (Research & Development) is very important. What kinds of efforts have Jwell made?

 

He: First of all, we have collaborated with polymer raw material suppliers to develop new processing technologies. Many well-known overseas and domestic raw material producers have approached us proactively, and we were able to quickly deliver cooperative R&D solutions, thanks to the experience and expertise of the two parties. For example, in the past few years, we cooperated with ExxonMobil to develop HDPE and TPO wide-width waterproof membrane production technologies.


Secondly, we have developed partnerships with domestic and foreign universities, such as Beijing University of Chemical Technology, East China University of Science and Technology, Donghua University, etc. The universities have strong R&D capabilities, and they dare to think and act. In recent years, we have cooperated with universities to develop PE, PP and PET foaming processes. We also to cooperate with RWTH Aachen University in Germany, but it was delayed due to the pandemic. In addition, we established collaborations with experts and scholars in the industry. Some of our overseas experts work as technical consultants and participate in the R&D in various factories of Jwell.


Thirdly, based on the customers’ needs, we approach targeted upstream manufacturers to integrate resources. I would like to emphasize that in terms of supplier selection, our goal is to select the top suppliers in the industry. Siemens and Inovance’s electronic control equipment or display screens are among our selections. For meltblown production lines, we have collaborated with Kingfa Sci. & Tech. Co., Ltd., one of the largest Chinese modified plastics producers.


We integrated resources, solved bottlenecks and technical pain points, and finally launched the exquisite products to meet the market needs.


The success of Jwell would not be achieved without a strong supply chain. We are very grateful to have the supports from our suppliers, in terms of technology, price, delivery time, etc. I recall that in an interview with Adsale CPRJ five years ago, I talked about “talent”. At that time, I highlighted the importance of “teamwork”. Now, in addition to “teamwork”, “ecological chain platform” is necessary. This includes not only the team, but also the suppliers, upstream and downstream, as well as R&D, branding and marketing channels.


In 2020, the company achieved several breakthroughs, including: 42 L/D ratio high-efficient screw, 1600mm three-layer solid-wall pipe mold, BM30 continuous extrusion double-layer in-line blow molding machine, PA film embossing production line, 800/1600/2400 meltblown die heads, Titan series ultra-thick wall pipe production line, PP meltblown nonwoven production line, etc.


Jwell_wufangbu_WEB.jpg

 

Chu: “Ecological chain platform” requires the collaborations of internal and external parties, upstream and downstream, as well as resources integration. What kind of talent do you think the company needs most?

 

He: In my opinion, talented person is the most important resource of the company. We have put a lot of efforts in this regard. In addition to hiring overseas senior executives and experts, we select employees based on their technical knowledge, professional expertise and character. We love working with people who are persistent, hardworking and innovative. Judging from the development of the company over the years, this model has been recognized by our customers. We have also cultivated a large number of talent through the establishment of “Jwell Class” in colleges and universities. These talented people have laid a solid foundation for the development of Jwell.


In order to work as a team, talent must share the same values as the company. Our talent recruitment is ongoing. Our values are: 1. not intend to make quick money in order to avoid giving up halfway; 2. produce high-quality, exquisite products; 3. offer good value-for-money products, and make sure that the price is reasonable even when the product is in short supply; 4. aim to achieve efficient production and effective management; 5. embrace IT as intelligent human-computer interaction, visual inspection, big data, etc. are irreversible trends.


In summary, the missions of Jwell include developing a team dedicated to innovation, emphasizing customer experience, and creating an intelligent extrusion machinery ecological chain for the industry.


I also want to recognize the commendable commitments of our employees. They arrived early to work even during the pandemic last year. In 2020, our technicians travelled to overseas countries for more than 36 times for equipment commissioning. Thanks to their efforts, we earned a good reputation for our brand.

 

Minimalist management allows quick ROI, enhanced efficiency and experience

 

Chu: I heard that Jwell made new investments last year and established a new factory in Haining. Could you please tell us more about it?

 

He: Occupying an area of 120 acres, the Haining factory is located close to Hangzhou, which is about an hour’s drive from Shanghai. It has a strategic geographical location. The factory was completed very quickly. The construction work started in 2019 and production commenced in June last year. Besides, we completed the delivery of RMB 280 million worth of products in six months. There are currently four professional companies, mainly involved in decorative building materials production lines (profiles, foam boards, door and window equipment, etc.), new plastic material sheet and film production lines, high-end plastic pipe production lines, non-woven fabric production lines, etc. At the moment, we are actively recruiting talent.


The management model of the Haining factory is quite different compared with that of our Changzhou and Suzhou plants. Changzhou is the home of industrial incubation park while Suzhou is the production base of parts and components. We want to develop a new management model for Haining, which we call the “Little Giant Enterprise” model. It is a model emphasizing on the quick return on investment (ROI) of technological innovation. It abandons complex structures in management and adopts a flat organization in order to enhance efficiency and customer experience.

 

Chu: In addition to the “Little Giant Enterprise” model, what management models are adopted for other Jwell’s factories? How do you make plans as a whole?

 

He: Jwell’s early operating model has been developed for many years. The company in Shanghai was established more than 20 years ago. It has cultivated many talent, and reserved necessary funds for subsequent development. But now we see some drawbacks of the model, such as low management initiative and weak R&D motivation.


The company in Suzhou adopts an asset-heavy model. It has helped Jwell’s professional companies to solve complementary problems and has made great contributions to the development for the next few years. However, the investment is too large and the output is not ideal. The capita output value per person of Suzhou Park is only more than RMB 1 million, which equals to that of a traditional industrial development model. The Changzhou Park is an ecological chain model. A number of professional companies have been incubated in the park and its development is relatively fast.


The management cost of the asset-heavy model is too high. Taking an industrial park with at least RMB 1 billion in sales as an example, the salary of management personnel alone would exceed RMB 20 million or even RMB 30 million, and this proportion is too large. If we continue to use the traditional methods, it will inevitably restrict the development of the company.


Therefore, we hope to develop a new model to improve efficiency and achieve greater capita output value. Our vision is to have 100 to 200 employees in each “Little Giant Park”, and achieve the capita output value per person of RMB 4 million.


A new company was also established in Thailand this year. The Thai company could have operated ahead of schedule, but it was disrupted by the pandemic last year. It is expected that the company will officially start production this year. The model it adopts is similar to Haining factory and it targets overseas markets such as Southeast Asia and India.

 

The upcoming battle: To reach a billion in sales for each company

 

Chu: What do you think about the future of Jwell?

 

He: I do not aim at building a 100-year-old company because the goal is too ambitious. We are focusing on what we need to do right now and trying to conquer every battle pragmatically.


Our first battle was to bring our small team to Shanghai, build up the company and found the brand of Jwell. The second battle was the establishment of a large-scale heavy-asset factory in Suzhou to produce parts. The third battle was in Changzhou. We adopted a new ecological chain model to closely connect with the upstream and downstream. The fourth battle was the foundation of the Haining factory and the Thai company, and the adoption of the “Little Giant Enterprise” model. We are constantly learning in every combat.


The next battle that we envisaged is to push each professional company under Jwell to become a leading company in the industry and strive to achieve sales of RMB 1 billion. In addition to improving the production management, we aim at upgrading the R&D capabilities of the companies so that they are comparable to those of world-class listed companies. The corporate culture will also change in accordance with the new development. We look forward to transforming the traditional manufacturing industry and business operating models with new talent.


Last but not least, I hope that our employees in Jwell will cherish the moment and fully utilize the resources of the company, such as the ecological chain and new management concepts. I hope that they will always focus on their goals and try hard to get things done – just like the protagonist in the movie “Forrest Gump”. I also hope that they care about the users and colleagues, and share the same values with Jwell, becoming professional “Little Giants”.


Like

0

Leave A Comment

Submit

All Comments

Articles You'll Like
Hot Pictures