ORG launched its milk powder tank business in another city.
On May 28, the signing ceremony of the cooperation project between ORG Technology Co., Ltd. and the People’s Government of Kedong County, Qiqihar City, Heilongjiang Province was held in Beijing Reignwood Building.
Kedong County is located at 47 degrees north latitude in northeast China, occupying about 10,000 square kilometers of black land and wet areas. It is also the location of China’s first dairy ecosystem. Feihe Dairy, the leader of China’s dairy industry, has invested heavily in this to build a world-class high-quality milk source base - Feihe Original Ecological Pasture.
The cooperation between ORG and Kedong is based on the renovation and upgrading of the original plant in the Feihe factory in Kedong County.
Prior to this, ORG had become a supplier of Feihe Dairy. The deepening cooperation between the two parties is precisely related to the successful implementation of ORG’s “factory-in-factory” personal service model.
On January 11, at the “2020 Feihe Summary Conference”, ORG Technology Co., Ltd. was invited to participate and was awarded the Feihe Dairy Group’s “Annual Excellent Supplier Award”.
Settle at the Place of the Best Milk Source
Milk powder packaging is already one of ORG’s strategic focuses. At present, General Manager of ORG’s milk powder business department is concurrently served by the company’s Vice Chairman Zhou Yuan.
This also means that the milk powder tank production and processing project signed by ORG and Kedong County has become an important part of the dairy ecosystem for Kedong County.
The cooperation between government and enterprises to promote the development of the entire industrial chain of Feihe Dairy, while contributing to the promotion of the local economic development of Kedong, is the original intention of the two parties.
Kedong County belongs to Qiqihar City, Heilongjiang Province. It is located in the transition zone between the Lesser Khingan Mountains and the Songnen Plain. It is located in the gold breeding belt at 47 degrees north latitude and is an internationally recognized milk source.
The natural endowment of Kedong County is unique. Wisconsin, the most famous dairy state in the United States, Alberta in Canada, and Hokkaido in Japan are all located at 47 degrees north latitude. Moreover, Heilongjiang’s black land resources are also unique in the world, with obvious advantages in pasture resources.
Feihe Dairy, ORG’s long-term partner, began its business from Kedong.
Kedong has witnessed his growth from self-built farms and pastures to product development and production, until it has developed into an enterprise worth tens of billions RMB.
ORG Technology Vice Chairman and General Manager of Milk Powder Tank Division Zhou Yuan, Vice President and Secretary of the Board Gao Shujun, Vice President and General Manager of Investment and Financing Management Center Zhang Shaojun, Secretary of Kedong County’s Party Committee Li Chuanzhu, CPPCC Chairman Zhang Lijun, and Deputy County Chief Yang Fuqi and other leaders attended the signing ceremony.
Factory in Factory = Strategic Fit
As a leading canning + filling company in China, ORG has reached the highest standards in the industry in terms of production, technology, safety, quality control, and management.
As a strategic partner of Feihe Milk Powder, ORG has been cooperating with Feihe since 2014.
ORG (Gannan) Packaging Co., Ltd. invested in the construction of a canning production line in 2014 to provide differentiated milk powder cans for Feihe Dairy’s “Xingfeifan” infant formula milk powder.
In 2018, ORG adopted a factory-in-factory model to further reduce the operating costs of both parties. This high-quality, in-depth, and seamlessly linked service mode has helped Feihe grow into the largest brand in China’s infant milk powder market.
The settlement of ORG in Kedong is related to Feihe milk powder’s emphasis on the production distance control and quality control requirements from the farm to the processing plant, from the milk powder to the canned product.
In accordance with the “Kedong ORG Milk Powder Can Production and Processing Project” agreement, ORG will build a food industry standard GMP 100,000-level purification workshop, and invest in the construction of two imported high-speed can-making lines.
The total investment of the project exceeds 100 million yuan. The construction of the first phase of the project is expected to be completed by the end of 2021. When the ORG Kedong plant is put into operation in the future, it will meet Feihe’s 80,000 tons of milk powder packaging needs.
The landing of the ORG Kedong project is based on the successful experience of ORG and Feihe Gannan’s “factory-in-factory” project, and ORG continues to adopt the intimate “factory-in-factory” service. It provides Feihe Dairy with supporting services including product design, can making, product testing and QR code information services.
Innovation Helps to Achieve Win-win Results
The “factory-in-factory” model is ORG’s first business model.
At present, ORG’s diversified layout is gradually being implemented.
In the past May, ORG issued an announcement that it plans to invest in the construction of a can production project in the Tsingtao Brewery Industrial Park in Xuecheng District, Zaozhuang, Shandong, with a total investment of about 510 million yuan.
From Feihe Milk Powder to Tsingtao Brewery, this “factory-in-factory” symbiosis and intimate production layout is ORG’s first in the industry. It has formed highly close cooperation with many brand customers and has been recognized and trusted by partners.
ORG believes that it is closely dependent on or adjacent to core customers in space. On the one hand, it can combine the product characteristics and quality requirements of core customers to the greatest extent and equip with internationally leading production equipment; On the other hand, it can get closer to customers, improve response speed, make rapid adjustments according to changes in customer needs, and achieve flexible production, while reducing product transportation costs to the greatest extent.