New Times for China Pharmaceutical Equipment Industry

1
New Times for China Pharmaceutical Equipment
Industry

• Wang YaJun
• Vice Secretary General Secretary General of
  Expert Committee
• China Association for Pharmaceutical Equipment
• 12th November,2007 Su Zhou

2
Current Situation of China Pharmaceutical
Equipment Industry

• There are more than 900 manufacturers in this
  industry
• Their machines are mainly supply to
• -- about 5000 pharmaceutical enterprises
• -- about 2000 animal medicine companies
• -- about 2000 health-care product company
• -- a large number of other users, such as food
  and cosmetics

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Category of the Pharmaceutical Machinery

• Machinery and equipment for pharmaceutical
  material
• Medicine preparation machinery
• Pharmaceutical milling machinery
• Sliced herbal machinery
• Water treatment equipment
• Medicine packaging machinery
• Medicine quality testing instrument
• Other pharmaceutical machinery used for medicine

4
The 15 best sale companies in 2006

• Shandong Xinhua Medical Equipment Group
• Jiangsu mechanical Equipment Co., LTD
• Shanghai Tofflon Technology Co., LTD
• Chongqing Jiangbei Machine Co., LTD
• Changzhou Fanqun Drying Equipment Co., LTD
• Chongqing Jiama Machinery Co., LTD
• Jiangsu Fanqun Drying Equipment Co., LTD
• Shanghai Yuandong Pharmaceutical Machinery
  General Factory
• Domino Printing Technology Co., LTD
• Changsha Chutian Science and Technology Co., LTD
• Canaan Pharmaceutical Machinery Company
• Jinzhou Wonder Packing machinery Co., LTD
• Jiangsu Saideli Pharmaceutical machinery Co., LTD
• Shanghai Jiangnan Pharmacutical Machinery Co.,
  LTD
• Zibo Huazhou pharmaceutical Equipment Co., LTD

5
The countries that China pharmaceutical machinery
has been exported to
Totally more than 80 countries and areas, such
as USA, Germany, France, Belgium, Mexico,
Russia, Italy, Romania, Cyprus, Japan, Korea,
Thailand, Malaysia, Singapore, India, Indonesia,
Vietnam, Yemen, Bengal, Pakistan, Egypt and so
on.
6
The 10 best exported company in 2006

• Shanghai Tofflon Technology Co., LTD
• Canaan Pharmaceutical Machinery Company
• Shandong Xinhua Medical Equipment Group
• Shanghai Jiangnan Pharmacutical Machinery Co.,
  LTD
• Shanghai Morimatsu Pharmaceutical Machinery
  Engineering Co., LTD
• Hualian Machinery Co., LTD
• Shanghai Tianxiang Centri Pharmaceutical
  Machinery Co., LTD
• Jiangsu Yibu Drying Equipment Co., LTD
• Dandong Jinwan Group Cp., LTD
• Zhejiang Hualian Pharmaceutical Machinery Co.,
  LTD

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Current Situation of China Pharmaceutical
Equipment Industry

• Satisfy 90 of China domestic market
  requirement
• Annual output 200 thousand sets,Production
  value 8 billion RMB yuan
• From the point view of number of manufacturers
  and the output value, China has become a real
  big country in manufacturing pharmaceutical
  machinery and equipment in the world.

8
The Challenge

• Before July 2004
• Started from 1998, the Good Manufacture
  Practice has been put into medicine production
  practice compulsively, that push forward the
  development of pharmaceutical Equipment industry
• After July 2004
• The medicine production factories have been
  reformed to meet GMP standards, but now they
  have to work hard to meet even higher cGMP
  standards with increasingly exporting
  machineries and therefore pharmaceutical
  machineries and equipment have to be upgraded to
  meet the cGMP accordingly. As the result, the
  pharmaceutical equipment industry has to offer
  top-level products.
• On the other hand, after China entered the WTO,
  the price advantage is weakened due to import
  duty decreasing. Some world famous companies,
  such as FETTE, IMA, Edward have brought their
  products to China market though assembling or
  direct production buy setting up their own
  factory to compete with China pharmaceutical
  machinery factories.

9
Opportunity

• The Medicine production in China increases about
  17.7 annually and thus China has become one of
  the ten world biggest medicine producers in the
  world.
• There are more than 5000 medicine producing
  enterprises in china, in addition, there are
  several thousands of animal medicine factories,
  health-care and food factories, cosmetics
  factories, etc..
• The requirement from oversea is also increasing.
  This market shall increase about 10 annually in
  the coming 10 years around the world, whereas in
  in China is over 15.
• The conclusion is Pharmaceutical machinery
  market is big and promising.

10
China advantages

• China has achieved great success in following
  fields
• Research of processing technology and Fine
  Pharmaceutical machinery and equipments
• For advanced pharmaceutical technology
• For advanced medicine processing technology
• Founding of modern RD bases and producing
  factories

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China advantages

• China has achieved great success in following
  Fields
• China Pharmaceutical Equipment Industry could
  offer more than 3000 types and kinds of
  machinery.
• A large number of professional people with high
  technique, high knowledge and high school degree.
• Accumulating a great deal experience in
  international marketing

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China advantages

• others
• comparateively labor cost
• Supported by China government
• Apply technical innovation fund for small and
  middle enterprise.
• Apply exploiting international marketing fund for
  small and middle enterprise.
• Apply Standard Item fund.

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Conclusion

• China Pharmaceutical Equipment Industry
• By taking above-mentioned advantages, making
  full use of self-innovation ability of the
  enterprises, speeding up the manufacturing of
  top-level products to cultivate China-made world
  famous brands.

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Ambition

• To make China a Strong Pharmaceutical Machinery
  and Equipment Country!

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Brief introduction on CAPE

• CAPE was established in 1991, It has about
  285 members, 47 directors, 8 deputy directors and
  11 executive directors.

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• The Association has the following departments
• Secretary Dept
• Management Dept. for members
• Management Dept .for Statistics
• Network Management Dept.
• International Business Dept.
• Exhibition Organizing Dept.
• Specialists Committee
• Standardization Technique Committee
• Committee for Self-discipline

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Tasks of CAPE
1. Organize and draft Five-Year Plan for
pharmaceutical machinery industry 2. Organize
to formulate and revise the state -level and
industry- level standards for pharmaceutical
equipment manufacturers In 2003,
The China standard committee of pharmaceutical
machinery industry was established, who is
authorized by China economic and trade committee.
The committee was composed of one industry level
standard committee, two inspection center and one
pharmaceutical machinery certification center,
that was one part of the state Fangyuan
certification center. The industry management
system and quality certification management
system was set up.
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The standard system of the China pharmaceutical
industry

• By the end of 2006, 123 related standard were
  already existed. state and industry level
  standard. At present the standard system is
  basically formed which includes Fundamental
  Standard, Management Standard and Product
  Standard.

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The system of the China pharmaceutical industry
standard
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Actively take part in the composition of the
international standard of the pharmaceutical
industry

• During the Eleventh five-year plan, the
  Standard Committee shall actively take part in
  the composition of the international standard of
  the pharmaceutical industry and make great
  efforts to establish our own international
  standard earlier, so as to achieve our goal of
  transfer from big pharmaceutical machinery
  country to strong pharmaceutical machinery
  country.

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Tasks of CAPE

• 3. compose books and materials to instruct and
  guide the development and advancement for
  pharmaceutical machinery industry
• 4. compose and publish magazine of China
  Pharmaceutical Equipment
• 5. Conduct the Statistics work for pharmaceutical
  machinery industry
• 6. Preside over the self-discipline issues

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Tasks of CAPE

• Proposed by 19 members, in December, 2005, CAPE
  worked together with them composed and
  promulgated China Pharmaceutical Industry
  self-Discipline Conventions
• In March, 2007, The Details of Implementation
  China Pharmaceutical Industry self-Discipline
  Conventions was put into practice.

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• The enterprises should constrain their
  actions according to the The Conventions and
  The Details to regulate market, and finally to
  create an equal-competition environment and
  atmosphere step by step and finally lead the
  pharmaceutical equipment industry to develop
  healthily , continuously and orderly.

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• Actively promote the intellectual property rights
  strategy in pharmaceutical equipment industry

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• Recent years, the intellectual property rights
  has been take as the important strategy for
  building up an innovative country.

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• First, protect your intellectual property rights
  not to be infringed !
• Second, not to infringe others intellectual
  property rights
• At the same time when enterprises work on RD
  and innovation, they should take care to protect
  their intellectual property rights gained
  legally. This is not enough, when any of their
  intellectual property rights are infringed they
  should know how to maintain and protect them.

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• Premier Wen Jiabao pointed out that world
  competition in future shall be mainly reflected
  by the intellectual property rights
  competition.
• The USA has take the intellectual property rights
  as the strategy resource, and they regard
  intellectual property rights competition as an
  important approach to occupy world market.
• Japan is now switching over their country
  policy from Science-Supported Country to
  intellectual property rights Supported Country.

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Tasks of CAPE

• 7. Evaluate, in early days, the major
  fundamental constructions, technology
  reconstructions and new product development in
  pharmaceutical machinery industry
• 8. Participate in the quality certification
  issuing works for pharmaceutical products
• 9. Appraise and promote scientific and
  technological achievements for
  pharmaceutical machinery, organize technological
  cooperation and exchanges between domestic and
  international pharmaceutical machinery companies
  
• 10. Host China National and International
  Pharmaceutical Machinery Exhibition

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Brief Introduction on China International
Pharmaceutical Machinery Exposition
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Name China International Pharmaceutical
Machinery Exposition
Exhibition frequency Twice a year, in Spring
and
Autumn Has been held 34 times
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• Exhibition area About 70,000 square meters
• No. of Booth Around 3000 World standard
  booths
• Business results up to RMB 500-600 millions
• Exhibitors more than 700

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China International Pharmaceutical Machinery
Exposition

• Technical Visitors more than 50,000 man/times
• There are also visitors from about 40 foreign
  countries and areas including United States of
  America, Germany, France, Belgium, Mexico,
  Russia, Italy, Romania, Cyprus, Japan, Korea,
  Thailand, Malaysia, Singapore, India, Indonesian,
  Vietnam, Yemen, Bangladesh, Pakistan, Egypt etc.

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Organize enterprises to participate exhibitions
out side of China

• Since 1991, we have participated the
  related exhibition in Russia, Thailand,
  Malaysia, India, Indonesian, Vietnam, Pakistan.
• We are now organizing to participate
  Dusseldorf 2008 Interpack in Germany and some
  other exhibitions in other countries.

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Tasks of CAPE

• 11? Render the desires and requirements of
  pharmaceutical machinery enterprises to relevant
  China government authorities
• 12?build internet station
• www.phmacn.com

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• Thank you