Lincheng Packaging Machinery at 20: How Stability and Cost-Performance Drive Its Global Corrugated Equipment Business

In every market, a sizable share of customers remain price-sensitive. The high-end route often brings high technical barriers and healthy margins, but it demands continuous investment in top talent and advanced precision equipment. The volume route is no easier: it must stay profitable even at thin margins.

Machinery manufacturing is won or lost in the details. Making some customers feel they received real value is already difficult. Doing that for 20 years so that domestic and overseas partners consistently feel stability and cost-performance is harder still. Hebei Lincheng Packaging Machinery Manufacturing Co., Ltd. is one company that has followed this path.

Over the years, Lincheng has earned its returns through cost-performance and has continued to grow in overseas markets. Recently, the company hosted a carefully organized anniversary celebration in Shanghai.

Under the theme Stable For More, the event brought together nearly 100 Chinese and international guests, most of them heads of overseas carton plants from Southeast Asia, Central Asia, Europe and other regions, to celebrate the company's development achievements over the years.

Hebei Lincheng Packaging Machinery Manufacturing Co., Ltd. is a quality-product enterprise certified by the Hebei Provincial Bureau of Quality and Technical Supervision. It holds the right to import and export goods under the Customs of the People's Republic of China and serves as the chairman unit of the Dongguang County Packaging Federation.

The company focuses on the R&D, manufacturing and sales of medium- and high-speed corrugated board production lines and carton ancillary equipment. Its products are sold to the United States, Russia, Turkey, South Korea, Egypt, India, Iran, Pakistan, Vietnam, Mexico, Saudi Arabia, the United Arab Emirates, Samoa, South Africa and many other countries, earning wide praise and recognition from users.

Although China's corrugated packaging machinery market is large, Lincheng's business is mainly equipment export. Relying on strong price competitiveness, it has entered many overseas markets and is developing better and better. India, Vietnam and other markets stand out, with a notable installed base of corrugator lines.

With Stable For More and quality at a competitive price as its goal, how does Lincheng push products to the extreme? The answer is simple in principle: for the same product, the price must be lower; at the same price, the quality must be better.

The company already has 20 years of experience in this area. At the very start of the anniversary celebration, General Manager Mr. Lu Dong thanked guests for attending Lincheng's anniversary event and expressed gratitude to the customer friends who had helped and supported Lincheng's development over the years.

Mr. Lu said that in its next phase Lincheng will break through in five areas. First, rebuild and optimize the organizational structure in management. Second, standardize production standards and processes, and keep a firm grip on production quality. Third, build excellent sales teams and create Lincheng's own regional sales teams. Fourth, accurately position the product as Stable For More. Fifth, establish after-sales offices in several mature overseas markets.

Lincheng's next stage has already begun. The people of Lincheng will serve all customers in a healthier way and give back to society.

Mr. Yu then delivered a speech, introducing the Lincheng brand to guests, explaining what the company is doing and plans to do, and offering advice on how to select and configure a suitable corrugator line.

Like most early corrugated machinery manufacturers, Lincheng started by learning from the advanced equipment of the time, with the aim of becoming a professional corrugated machinery producer.

After 20 years of development, Lincheng has long possessed technical innovation capability and has built its own technical system. To keep growing, the company plans to build another factory and increase capacity.

To provide better customer service, Lincheng continues to build its design, manufacturing, service, sales and management teams. The purpose is not to support one, two, three or five years of growth, but to pave the way for a much longer period and lay a solid foundation.

Through hardship and leaps forward, Lincheng has grown from a small workshop into a factory covering tens of thousands of square meters. It is not the largest equipment manufacturer in the industry, but it is distinctive; it is not extremely famous, yet it can meet customer needs, offering suitable solutions within limited investment budgets.

Its relentless efforts and rapid progress under the Stable For More, quality-and-value goal have also driven and strengthened the packaging machinery industry in Dongguang County, Hebei, earning multiple government awards and honors.

Lincheng always remembers that what it delivers to customers is stable equipment and excellent service. With 20 years of industry accumulation, it knows the mechanical structure, function and cost of every part of corrugator lines and carton ancillary equipment, as well as the quality and origin of each component.

As Stable For More suggests, no effort in product development is too much. Mr. Yu revealed in his speech that Lincheng is working to build an excellent corrugated machinery manufacturer brand, produce stable equipment that meets customer needs, guarantee equipment quality and service, maintain price competitiveness, and ensure sustainable development.

Mr. Yu introduced the company's product advantages: when running corrugator lines, steam can be saved by 20-30%, electricity by 20-30%, and glue by 20-30%.

He also presented the LUM-D 320/360 cassette-type single facer (with speeds of 150 m/min and 200 m/min respectively), high-speed single-face production line, LUM-A/B/C corrugator lines, and water-based printing, slotting and die-cutting machine.

Mr. Yu revealed that a customer in Jordan purchased a corrugator line that has run stably for years. They are very satisfied with the board quality and have ordered another new line from Lincheng.

To deliver stable equipment and excellent service, Lincheng will take three actions: first, establish sales and service centers in overseas markets such as India; second, develop a corrugator line with a speed of 250 m/min according to customer needs; third, produce more equipment, such as 150 m/min and 200 m/min corrugator lines as well as 100 m/min corrugator lines, to flexibly meet different customer requirements.

Mr. Yu told the editor that Lincheng has mainly made medium- and low-speed equipment. It will still focus on improving the quality of corrugator lines below medium speed and extend both upward and downward: upward to higher-speed corrugator lines, and downward to more diversified products, such as designing cassette-type single facers for low speeds.

The medium- and low-speed equipment market is inherently price-sensitive, and Lincheng's profit margin is very low. The company can only seek volume, satisfy more customers and sell more, doing what others will not do.

In the Indian market, Lincheng already has a substantial installed base of corrugator lines, and the number continues to grow with lines recently to be installed. Many Indian guests attended this event and strongly recognize the Lincheng brand. In Vietnam, Lincheng also has multiple corrugator lines and will further increase its sales force.

Of course, overseas customers raise questions, such as how Lincheng will improve equipment quality and solve after-sales service issues. Their strongest demand now is for comprehensive after-sales service. In response, the company will arrange for technical engineers to conduct long-term inspections in overseas markets. In India, for example, Lincheng will set up an after-sales service point and arrange staff to inspect continuously; a factory can be visited in a day or two, and all customers can be covered within a few months.

Mr. Lu also explained to the editor that Lincheng does not blindly pursue high speed. Instead, it aims to ensure stable equipment quality and stable operation at current speeds and to help customers save energy. Many large companies are pursuing high-speed equipment. Lincheng has made low-speed equipment for many years and now also plans to make medium-speed 250 m/min lines. Its sole purpose is to satisfy customers. Satisfying customer needs does not mean building equipment first and then looking for customers; it means customers tell us what equipment they need, and we customize it for them.

The editor learned that, especially after going overseas, Lincheng has found that domestic and international market environments are truly different. Mr. Yu gave an example: many customers in Southeast Asia are still not very familiar with flute profiles. How big is the difference between different flute types? How much glue should be used for different flutes? What should be done when the flute height of a corrugating roll wears down? These basic process knowledge points still require training.

When customers do not fully understand, Lincheng must share more and explain more. The company tries to provide standard equipment without cutting configuration, and also shares more rational equipment configuration concepts. For example, equipment should be selected according to existing and potential customers, the industry served, the region and economic trends. With minimum investment, maximum efficiency should be achieved, and stable equipment operation is very important. Savings are profit; saving base paper can increase profit. Lincheng advises customers on how to save base paper, glue, electricity and steam, making every effort to turn service into practical results.

After 20 years of tempering and accumulation, Lincheng now stands at a new starting point and is once again moving forward with the tide. Its equipment is stable and its service is practical and excellent. In its next stage, it will paint an even grander picture and compose a more beautiful movement in domestic and overseas markets.

This article is adapted from China Packaging Network (pack.cn); the original was too long and is excerpted here.