Summitek Technology: "Quality Manufacturing" as the Foundation, Breaking Through in Overseas Markets

Introduction

Since its groundbreaking in June 2014, the Guangqing Industrial Park of the Guangqing Economic Special Cooperation Zone, situated at the forefront of Guangqing integration, has attracted hundreds of high-quality enterprises from the Greater Bay Area. It has now initially formed a "3+2" industrial cluster, with smart home, auto parts, and new materials as the leading sectors, and high-tech modern agricultural biotechnology and food and cosmetics as key areas.

Behind the gathering of leading enterprises is the continuous improvement and enhancement of the park's infrastructure, industrial development, public services, and business environment by benchmarking against advanced regions. In this process, park entrepreneurs are the primary "inspectors."

As the park's economy flourishes, the "Dialogue with Entrepreneurs" series will continue to be updated. Through visits to park enterprises, focusing on authentic voices, and fully demonstrating the tangible benefits brought to enterprises by the high-standard business environment painstakingly built by the park, please stay tuned.

Dialogue with Entrepreneurs Series Report 25:

Summitek Technology"Quality Manufacturing" as the Foundation of Enterprise, 
Breaking Through in Overseas Markets As early as the beginning of June, Zhan Hailong, chairman of Summitek Packaging Technology (Guangdong) Co., Ltd. (hereinafter referred to as "Summitek Technology"), had set a plan to travel abroad for a whole month: to Turkey, South Korea and Thailand. He would often participate in international exhibitions and vigorously promote the company's products. 

Summitek Technology has been deeply rooted in the high-end packaging materials for cosmetics, pharmaceuticals, and food for over 25 years. In 2024, with the company's complete relocation to the Guangqing Industrial Park and its official commencement of production, the company has been equipped with a brand-new 30,000-square-meter Class 100,000 GMP-certified standard production workshop, as well as a Class 10,000 cleanroom product testing laboratory that meets GMP standards and automated imported equipment.

Zhan Hailong has unwavering confidence in his company's products. In his view, the company's most pressing task is to address the problem of even the best products needing marketing. According to his plan, overseas markets will be the company's main battleground in the future.

PART-1
Building high-end qualification barriers

In 2000, when Zhan Hailong resigned to start his own business, the flexible hose industry in Guangdong was in a phase of "wild growth." He recalled that at that time, the industry had low barriers to entry, the cost of raw materials was 3,000 yuan per ton, and a single hose could sell for 2 yuan, resulting in substantial profit margins. However, this golden age did not last long. With overcapacity, price wars intensified. "Now, even hoses costing one or two cents are considered expensive, and the industry has reached a point of no return."

High standards and high quality are the key to Summitek Technology's breakthrough, and the creation of a higher level of differentiation occurred in 2024. In January of that year, Summitek Technology completed its strategic relocation to the Guangqing Industrial Park, and the company officially started production.

After relocating to the Guangqing Industrial Park, "we invested more than 10 million yuan in renovations, including 2 million yuan in the Class 10,000 cleanroom product testing laboratory, which meets GMP standards. It can be said that there are very few companies in the country that can do this." Zhan Hailong pointed to the workshop monitoring screen, where the fully enclosed automated production line was in operation. "Our entire 30,000 square meters is a Class 100,000 GMP standard production workshop."

GMP standards require pharmaceutical manufacturers to have advanced production equipment, reasonable production processes, sound quality management, and rigorous testing systems to ensure that the quality of the final product meets regulatory requirements. This almost obsessive commitment to quality has enabled Summitek Technology to obtain a Class A pharmaceutical packaging certificate—making it one of the few packaging material companies nationwide whose association with pharmaceutical companies can be publicly disclosed on the website of the National Medical Products Administration, instantly raising the qualification barrier.

Today, the walls of Summitek Technology's exhibition hall are covered with various certifications and patents, including food QS certification and EU environmental protection patents. "In the food and pharmaceutical packaging materials industry, qualifications are the lifeline. These are not ordinary industry qualifications, but 'passports' to enter the high-end market," Zhan Hailong explained. "Currently, there are only a handful of hose manufacturers nationwide that have 100,000-level cleanroom conditions throughout their workshops."

"We obtained our qualifications through genuine, high-quality work." High-standard qualifications are a common requirement for leading companies in the industry. Summitek Technology has already established cooperation intentions with several pharmaceutical companies, including Yunnan Baiyao. In the future, the company's pharmaceutical division is expected to achieve an annual output value of 100 million yuan.

PART-2

"Quality manufacturing" has attracted a flood of orders.

Summitek Technology's various high-end brands have stringent requirements for the workshop environment and microbial testing capabilities of its suppliers. "When our Korean customers come to inspect the factory, they all feel that our factory is well-regulated." Thanks to its product advantages, Summitek Technology's tubing can reach a unit price of 7-8 yuan, which is 5-10 times that of its competitors.

Summitek Technology has allocated 50% of its production capacity to overseas markets, making foreign countries its main battleground. "Last year, we made more than 20 million yuan in the South Korean market, and with indirect exports, the actual amount exceeded 30 million yuan." To better meet the needs of high-end customers, Summitek Technology even obtained Muslim halal certification. "The Southeast Asian market values this highly, and the certification fee alone cost more than 200,000 yuan."

In Summitek Technology's laboratory, a biodegradable hose is being tested. "We have applied for environmentally friendly material patents in the United States and the European Union, which is our core competitiveness for the future," Zhan Hailong revealed. Summitek has reached a cooperation agreement with a high-end brand in Shanghai, whose annual demand for hoses reaches 20 million units. "They are not sensitive to price, as long as the quality and environmental protection standards are met."

This forward-looking strategy has allowed Summitek Technology to seize the initiative under the national "dual carbon" policy. "Now, the first question our European and American customers ask is about environmental indicators, and our products can directly enter their green supply chains." In Summitek Technology's production workshop, a German-made contact flexographic printing press is running at high speed. "This machine can print 10 colors. Imported equipment generally costs 10 to 20 million yuan, and domestic equipment also costs several million yuan, but the efficiency has been greatly improved." Zhan Hailong introduced that the equipment will not distort the image even after multiple color overprints, and its weather resistance and acid resistance meet global environmental standards.

More importantly, the soon-to-be-introduced digital printing machine "can produce 600,000 to 700,000 tubes a day, and saves on plate-making costs," directly targeting the high-speed demand in the pharmaceutical packaging market. "I once took my former employer to visit Summitek's workshop, and after seeing it, he said, 'You've made up for everything we were lacking,'" Zhan Hailong recalled.

PART-3

A two-pronged approach to improve both talent and production capacity.

"The most heartbreaking thing is that we get hundreds of business cards at the exhibition, but in the end, we don't convert many customers into clients." Zhan Hailong said frankly that the current 4-5 foreign trade personnel rely heavily on repeat orders from old customers and have limited ability to actively develop new clients. "Last year, I went to more than 10 exhibition booths and spent more than 5 million yuan on booth fees. We really need real conversions."

Zhan Hailong said that he is a typical Virgo, with demanding requirements for product quality and high expectations for his team. His solution for talent expansion is "precise selection" to build a highly skilled and professional team.

Currently, his goal is to build a foreign trade team of 10 people, with each person achieving annual sales of over 15 million yuan. "Now that the Class A pharmaceutical packaging certificate is about to be issued, many well-known pharmaceutical companies are actively seeking us out, and our business volume is expected to increase."

Summitek's ambition is written in its financial goals: to achieve a new breakthrough in output value by 2025, and in the next few years, the output value contribution of the pharmaceutical packaging sector should reach 100 million yuan. "Once the digital printing machine is put into production, it will produce 600,000 tubes a day. At a unit price of 50 cents, the monthly output value will be 9 million yuan, and the annual output value will be 100 million yuan." Zhan Hailong pointed to the workshop planning map, where the pharmaceutical production line will be separated into an independent area, forming a "three-pronged approach" with cosmetics and food packaging materials.

Food packaging is also a growth area. "Our customers, such as the New Zealand honey factory and the Australian injection molding product customers, have inspected our factory. They have extremely high requirements for food-grade environments, which we fully meet. We expect the food sector to add 30 million yuan in output value. With the three sectors combined, the target of 300 million yuan is not difficult to achieve."

PART-4

Let "Made in China" conquer overseas markets

On Zhan Hailong's desk are numerous exhibition brochures. "This year, we'll be exhibiting in more than 10 countries, focusing on the European market. We especially hope to help foreign companies better understand Chinese enterprises and 'Made in China'." Summitek's booths are mostly custom-designed for the international pavilion. "A 30-square-meter booth cost over 200,000 yuan to decorate, and we play real workshop videos, which immediately convinces foreign customers." Now, many overseas customers place orders after visiting the factory. "Once the price is agreed upon, the deal is done; it's based on our strength."

During its growth and expansion, Summitek Technology has received multi-dimensional and in-depth support from the government and the Guangqing Industrial Park.

The Guangqing Industrial Park Management Committee actively assisted Zhengsheng in connecting with the Guangdong Provincial Drug Administration, providing one-stop services in key areas such as testing laboratory construction and certification processes. This enabled Summitek to successfully obtain the Class A pharmaceutical packaging certificate, becoming the first company in the park to obtain this qualification. Simultaneously, the company can also apply for technological upgrading subsidies based on relevant policies in areas such as intelligent transformation and environmental protection upgrades.

Today, Zhan Hailong still insists on running and exercising, and does not drink alcohol for business purposes. This stems from a work habit he developed early in his career. Zhan Hailong was once a top salesman at a company with an annual salary of one million yuan, but he never drank alcohol. Rather than winning orders through drinking, he preferred to win customers' trust through quality.

"We want to become the top pharmaceutical and food packaging companies in the industry." Zhan Hailong cited a well-known cosmetics brand as an example, "Ten years ago, it had an output value of 4 billion yuan. By insisting on quality, this is the path to becoming a century-old enterprise."

Contact and follow

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phone:18802043556
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Mail:mandy.c@gzsummitek.com