April 17, 2009
For the third time, the PACMASH association presented Russian packaging machinery engineering at the INTERPACK collective stand. While the number of participants was somewhat lower than in 2002 and 2005, the quality of the machines and services on offer, and the effectiveness of participation, grew noticeably.
The Chamber of Commerce and Industry of the Russian Federation (CCI RF) paid great attention to this event. During the exhibition, Russian participants received a message of greeting from V. Platonov, chairman of the CCI RF Committee for Industrial Development, noting in particular that the participation of Russian enterprises — members of the PACMASH association — at the INTERPACK 2008 international forum enhances the business standing of Russian companies and contributes to the expansion of their foreign economic activity.
Our correspondents also devoted considerable attention to the Russian stand and spoke with the exhibitors.
The conversation began with the organizers of the stand — Grigory Khmelevsky, executive director of the PACMASH association, and Michael Mandel, deputy director of the exhibition company Messe Düsseldorf Moscow, who provided great assistance in putting together the Russian stand at this highly prestigious packaging exhibition.
PACMASH
— Three years ago there were noticeably more participants on the Russian stand in Düsseldorf. Is that a drop in interest, or is there another reason? How do you think the stand will be formed at future INTERPACK exhibitions?
— Grigory Khmelevsky. I have not lost hope that in the coming years we will finally receive state support. Only then will we be able to compete with foreign partners, and genuinely develop the export of domestic packaging machines and equipment. And interest in us here is enormous. Take, for example, the company Vips Med — a manufacturer of pharmaceutical packaging equipment — which is represented at our stand. Their CEO believes that with state support, the company could have presented a much broader range of its equipment, not on 20 but on 40 m2. All the other exhibitors share the same view.
I should note that we were allocated 280 m2 for this exhibition. But due to rising costs for practically all services, as well as a number of other problems — for example, with our customs — we were only able to "fill" 149 m2. That figure is significantly lower than in previous years: in 2002 we had 180 m2, and in 2005 — 250 m2!
We were very much counting on state support this year, but unfortunately it did not come through. And interest in Russian equipment here is enormous — visitors came to us from many countries.
— In the opinion of many specialists, not only machine builders but also Russian packaging manufacturers have "matured" for participation in this exhibition. Our packaging products have been winning top places at international competitions since the late 1990s. Interest in our equipment and packaging products at the Rosupak and Upakovka/UpackItalia exhibitions is enormous…
Michael Mandel. In my view, the heads of Russian packaging manufacturer enterprises must, above all, have the will and the desire to participate in the INTERPACK exhibition. Because only here can they truly feel and understand what export means and how it should be developed. A collective stand like this one could be organized by the National Confederation of Packagers. The form of stand organization is a formality. And of course, state support is needed. I very much hope that all of this will happen at the next INTERPACK exhibition — in 2011.
Today there are several Russian packaging manufacturers participating here independently. But unfortunately, they are all in different pavilions, barely know each other, and are still not very visible against the general backdrop — though they are participating quite successfully.
Bestrom
A longtime partner of our magazine — the company Bestrom, well known far beyond Russia — can be considered a Russian veteran of the INTERPACK exhibition. Alexander Puzikov, its commercial director and president of the PACMASH association, spoke about the exhibition.
— Alexander Mikhailovich, the first time we met you at INTERPACK was, it seems, in 1999. How has Bestrom's participation in this exhibition developed since then?
— The dynamics of our company's participation in this largest international exhibition are very noticeable. In 1999, we came here simply to have a look and get acquainted. In 2002, we brought our equipment to the PACMASH association's collective stand for the first time — a memorable event. True, many looked at us with undisguised amazement: is there really packaging machinery engineering in Russia? But at this exhibition, the situation has changed. People have started paying attention to us and even taking us seriously. By this point, our association had become an official member of the International Confederation of Packaging Machinery Manufacturers — CORAMA. Incidentally, the magazine Tara i Upakovka played no small part in that.
Today one gets the impression that we are practically indistinguishable from most Western machinery companies. After participating in the second exhibition, we sold several of our machines to Finland, the Baltic states, and the CIS — and, remarkably, to Russian visitors of the exhibition. This time, specialists from many countries have shown interest in our equipment, and they are very seriously interested in purchasing our machines. On the very first day of the exhibition, our stand was visited by people from Cyprus, Greece, India, and the Baltic states. The Finns who bought our machines a few years ago came to the stand and confirmed that they are fully satisfied with the quality of our equipment. They will buy more.
— Alexander Mikhailovich, did you have to perform your PACMASH president duties here?
— First of all, Grigory Khmelevsky and I expended enormous effort in preparing for participation in this exhibition — sending exhibits to the show, designing and building the stand, organizing comfortable conditions for the stand staff, and much more. This time, we have been officially invited, as full members, to participate in the work of CORAMA. Last year, our association became a member of the CCI RF. Much has been accomplished, but much still remains to be done.
— In the opinion of specialists, the PACMASH association should cooperate more actively with the National Confederation of Packagers, with the CCI RF subcommittee for packaging industry development, and jointly seek engagement with the government structures on which our further development depends.
— We are always ready for mutually beneficial cooperation with all associations interested in it, including NKPak. We believe that at the next exhibition we will be able to organize a joint stand and work closely together on the matter of including this exhibition in the list of priority exhibitions supported by the state.
Klass Engineering
The company Klass Engineering was founded in 2002. Deputy general director Anton Skorobogatov, who gave us an interview at the stand, has been working in the packaging sector for 10 years. The company participated in this exhibition for the first time 3 years ago, together with Eksim-Pak.
— What does your company do at present?
— We manufacture machines for rewinding stretch film (we have already sold more than 150 such machines in Russia), machines for printing on adhesive tape, and machines for producing cardboard tubes for film winding. There are also other projects, though those are not related to packaging.
— And how did you come to be at this collective stand? What goals did you set for yourselves?
— We recently joined the PACMASH association, though we have known about it and its work for a long time. Since 2002 we have participated in the Rosupak exhibition. In a short time, we became convinced that there are issues that can only be resolved collectively, within a non-commercial association.
We are targeting customers from Europe and developing countries — Africa, for example. All our machines hold Russian certificates. We hope to obtain European ones as well.
— What do you think about the need for state support for companies exporting packaging machines?
— That would be great. But unfortunately, we are not yet receiving such support.
— They say the door opens for those who knock.
— If the PACMASH association management tells us where to knock, we will knock together with the other members, and knock hard. I am confident we will be heard.
Vips Med
About the company's participation in the exhibition, Mikhail Gushchin, deputy general director for marketing of Vips Med, spoke to us:
— We primarily make equipment for packaging pharmaceutical products. We are participating in this exhibition for the third time. The trip to Düsseldorf has two purposes for us: to find potential buyers and to compare our level with that of our competitors. We try to look at the equipment on display here through the eyes of our customers. We are at the PACMASH stand for the third time, and we are quite satisfied with it: lower costs and better organization. Stand participants take pride in representing Russian packaging machinery engineering. Together, we feel quite confident here — both in terms of technical level and in terms of providing service to potential buyers.
Of course, the Germans — the hosts of the exhibition — remain the leaders in packaging equipment for pharmaceutical products. But our equipment is attracting great interest from the Middle East, India, Sri Lanka, the former Soviet republics, and Eastern Europe. At the previous two exhibitions, there were many contracts with customers from the CIS countries.
It is interesting that we reached our Belarusian customers through Poles who came to our stand. That is how we became part of a major international project…
— Mikhail Vasilievich, which exhibitions does your company participate in within Russia?
— Rosupak and Pharmtech. We are looking closely at the Upakovka/UpackItalia exhibition. Today in Russia we have turned out to be practically the only manufacturers of packaging machines for pharmaceutical products. In the Soviet Union, certain types of such equipment were made in Mariupol, Ukraine. But that is now a different country…
Merpasa
Merpasa — Russia's largest supplier of packaging equipment and consumables, and a constant partner of our magazine. Speaking is Evgeny Bykovsky, general director of the company:
— We are participating in the INTERPACK exhibition for the second time. In 2005, we came without equipment, with information materials only — and we became convinced that was wrong. This year we brought two machines: one for slicing bread and one for packaging it. Of course, they are far from reflecting the full range of what we offer. But that reflects the specifics of our task: to "hook" Russian customers who have come here looking for packaging equipment. They come to us, and we can offer them exactly that. Such is the Russian mindset for now — equipment from the West is always better than in Russia. They come and buy here. From us.
— And what about new partners?
— We manage to find a huge number of them here. On the very first day of the exhibition, Americans, Belgians, and Germans came to us, all interested in partnership. Interest in the Russian market is enormous — it is an intensively growing market, many people know this and come to our stand.
We have a large team working here — 10 people. We sent out a great many invitation letters in advance. This year an especially large number of "bread people" came from Russia. We meet them, show them our machines, take them to the stands of our partners. Incidentally, our stand was visited by colleagues from Bulgaria — manufacturers of bread packaging machines — whom the magazine Tara i Upakovka introduced us to. I hope cooperation with them will continue.
— Your view on the need for state support for Russian companies participating in this international exhibition.
— It would be wonderful to have such support — useful for us and for the state alike. We sent our promotional materials here, and the customs officers sent them back because, as it turned out, they were not listed in some list unknown to us. Regrettable.
And yet there is money in the government for supporting exhibition activities related to the export of domestic products…
Steklopak
A longtime partner of our magazine and a veteran of the Interpack exhibition is the company Steklopak from Orel. During the exhibition, all participants of the collective stand and members of the editorial team wholeheartedly congratulated the founder and head of the company, Alexei Vasilievich Antokhin, on his birthday.
An interview with our magazine was given by the company's commercial director, PhD in Economics, Ilya Antokhin.
— We are at this exhibition for the third time. And we have long understood that participating in exhibitions like this abroad is simply essential. If you don't come, your competitors will assume the company is not doing very well. Though today our presence here is more for image purposes. In general, you need to come to exhibitions like this with equipment on display. In 2005 we brought our machines, and the effectiveness was very high — after that exhibition we received several serious orders.
— In your opinion, do exhibitors — Russian packaging equipment manufacturers in particular — need state support to participate in major international exhibitions? And why is there still none?
— I'll answer a question with a question: why were we born in Russia? Everyone knows us perfectly well — and not just in the "Orel region." Tax inspections — several times a year. And yet we have been exporting our equipment for years! Government officials know this perfectly well. When they need figures for reports, everyone suddenly remembers us. When they want to show off our achievements, they are right there! But when it comes to providing help — they go silent, and we remain without state support.
Companies like us — machinery builders working in packaging — are held in the highest esteem in other countries! In China, Poland, and the Czech Republic, the state fully covers companies' participation in exhibitions, including abroad. No customs obstacles. In 2005 we brought a package with our samples, and our customs officials simply tore it open and practically destroyed it. But we look to the future with optimism.
NOTIS
At the stand, our correspondents met with Vladimir Plekhov, commercial director of NOTIS, who told us:
— Our company has been in existence since 1992. We are based in Berdsk, a suburb of Novosibirsk. We have been working in packaging for around 12 years. We started by developing and manufacturing electronic scales. And in 1997 we began producing packaging equipment. We started with semi-automatic machines, then vertical automatic machines for filling bulk products, and later horizontal ones — for individual items, primarily bakery products.
Growth came as a result of our collaboration with Sibirsky Bereg, known as the manufacturer of Kirieshki crackers. We supplied them with more than 120 vertical automatic machines. A significant modernization of production then followed. It turned out that the topic was in demand.
The distinctive feature of our automatic machines is electronic control with 4 independent drives for separate mechanisms — which means minimal mechanical complexity and the ability to reconfigure quickly.
— Is your market mainly the Siberian market?
— We did begin our activity in our own region. Then the market expanded from the Far East to the Urals. Since 2003, we have participated in Moscow and St. Petersburg exhibitions and have thus advanced into the European part of Russia. Today we have a representative office in Moscow and a subsidiary in Rostov-on-Don (NOTIS-Don). And of course, we have many dealers.
This is our first time at the Düsseldorf exhibition. Our only previous foreign exhibition appearances were in Almaty and Kyiv. This trip is a trial run. For now we are counting on Russian-speaking customers from the former Soviet republics — but we do not rule out cooperation with Western partners. There are already several proposals from German companies.
If you compare the cost of our equipment by output and certain other parameters, our prices are naturally lower. This is primarily related to wage levels and advertising and promotion costs. We are not yet able to operate with sufficiently good profitability.
By the way, we are well acquainted with your magazine and expect to begin cooperation in the near future.
— Here you are sharing a stand with Bestrom — which is your competitor…
— Indeed, they are our competitor. But we assess the situation objectively. Bestrom is, of course, more advanced. The company started working on the packaging market significantly earlier than us, and moreover, as is known, not from scratch. Nevertheless, we believe our pace is good, and one day we will catch up. In any case, our ambitions are very high. Besides, one must not forget that we are members of the same non-commercial organization, and many issues relating to cooperation with government structures and the development of our industry as a whole can only be resolved collectively.
Tara i Upakovka magazine, No.3-08, June 2008