Chie Mei Enterprise Co. Slots Its Machines Into Profitable Niches

Founded in 1971 as a maker of packaging machines, Chie Mei Enterprise Co., Ltd. Has in recent years become a manufacturer of higher-margin machinery models for niche markets.

Sales have risen an average 40% in each of the past two years as a result. Among the company's offerings are its PM-808 OPP-film overwrapping machine for packaging diskettes, CDs, cassette tapes, cigarettes, medicines, cosmetics, candy boxes, and recorders--a versatility that rival models cannot match. The machine's maximum packaging dimension is 20cm in length, 16cm in width, and 8.5cm in height.

This machine is built for square boxes that require transparent-lamination package with seamless folded edges. Accordingly, this machine does not need to be connected to any sealing machines, eliminating buyers' spending on such peripheral equipment.

The PM808 has a production speed of 45 packages per minute, a mid-range rate as compared with high-speed models built by European suppliers. But the PM808 is attractive to buyers because it is much less expensive, sold at only one third the price of European machines, meaning better value in the long-run. Chie Mei plans to unveil a similar model for packaging bigger boxes next year.

The company's automatic forming & vacuum-packaging machine is another effective tool. Rolled out two years ago, this is claimed to be Taiwan's first locally developed computerized model of this type. Recognizing the company's development efforts, the Ministry of Economic Affairs granted the firm a citation for achievement for the model.

The automatic vacuum-packaging machine comes in two specifications. The AMP-802A has a maximum work speed of 150 bags a minute, while the speedier AMP-802B handles 180 bags a minute. The vacuum-packaging machine is used for packaging such items as varied as seafoods, meats, cakes, computer parts, and medical syringes.

Niche-use machines now account for 80% of the company's sales. Company management says its ability to roll out so many high-added-value machines is the result of its maturity as a team and manufacturing capability, gleaned over the past 30 years. While developing machines on its own, the company has also worked with Taiwan's prestigious Mechanical Industry Research Laboratories (MIRL) to develop crucial new technology for use in its machines.

Europe, the United States, and Japan now absorb a combined 70% of Chie Mei's annual output of 100 machines or so, with the remainder sold to the domestic market. Having already acquired the CE mark, the firm is now readying itself for ISO9001 certification.

Tel: 886-2-29036181~3, 886-2-29020018~9; Fax: 886-2-29044866; http://www.chimei.com; e-mail:chiemei@ms15.hinet.net.