2024.04.15
Attack on Poland 4: Tex Year Seizes Business Opportunities by Linking Europe's Latest Regulations through Poland's Gateway
In the bustling supermarkets of Warsaw, the capital of Poland, various promotional display stands, known as " Cardboard display stands", are presented in the form of cardboard stands in Poland. According to John Yeh, General Manager of Tex Year Europe Sp. z o. o., "To bond thick cardboard into a stand, not only does the adhesive need to be strong enough, but it also needs to be environmentally friendly. Currently, over 80% of the adhesive used for cardboard stands in Polish stores comes from Tex Year." Tex Year Europe Sp. z o. o. GM, John Yeh, also serves as Global R&D Chief Technology Officer, allowing him to grasp European green energy policies and research directions. (Photo by Chen Chun-Song)Established in 1976, Tex Year Group initially specialized in adhesive manufacturing. In response to the carbon reduction trend, the company shifted towards environmentally friendly hot melt adhesive products, becoming Taiwan's largest hot melt adhesive manufacturer. It currently operates overseas production bases in China, India, and Poland. Strategy: Seizing an Early Opportunity in Poland to Unlock the European Market In 2015, Tex Year decided to expand into Poland, choosing Gniezno, located about a 3-hour drive from Warsaw, as its location. This strategic decision was influenced by the fact that their first European distributor was based in this city. The joint venture initially set up the first hot melt adhesive production line and expanded with another line in 2018, making it an ideal gateway for Tex Year to enter the European market. The importance of Poland to Tex Year is evident from another perspective: John Yeh also serves as the Global Chief Technology Officer of Tex Year. "Europe has the highest environmental requirements, with more advanced materials and technology and the most proactive market applications, providing firsthand information. When the former general manager had other matters to attend to, I took over," said John Yeh with a smile. "So, my work hours often extend from Taiwan time to Poland time." Through Poland, Tex Year can quickly link up with the latest European regulations and grasp market trends. Tex Year Europe Sp. z o. o. recently announced the cessation of production of biodegradable straws due to "the EU's lack of active support for the development of biodegradable products. The board of directors decided to reallocate strategic resources." John Yeh pointed out that the EU's encouragement of recycling and reuse policies is significantly higher than the promotion of directly using biodegradable materials. Hot melt adhesive production has moved towards customization. The picture shows Tex Year's laboratory in Poland.Walking into Tex Year Europe Sp. z o. o., the office and factory have separate entrances to control personnel flow. Meeting rooms are named after major European cities, symbolizing Tex Year's ambition to penetrate every market. John Yeh emphasized, "In places without windows, regulations dictate that they cannot be used as offices, only as tea rooms or storage rooms. Enjoying sunlight is also a human right here, which is quite different from Taiwan." The factory's production lines are highly automated, with only three workers needed per line to produce hot melt adhesive sticks and granules. More manual labor is required for packaging at the back end. John Yeh said, "Almost all of the operatives are Ukrainians. After the Russo-Ukrainian war broke out, some employees resigned to return home to help with the war effort." With the global trend of plastic reduction becoming increasingly evident, the application of solvent-free environmentally friendly hot melt adhesives is expanding. John Yeh cited examples such as how plastic wrapping for soft drinks was replaced by paperboard, which requires hot melt adhesive for molding. Similarly, packaging sealing with tape, which required a large amount of manual labor in the past, is gradually being replaced by hot melt adhesive. Using spot adhesive bonding in the future will also contribute to the automation of back-end packaging operations. Process: Grasping the Latest Trends and Focusing on R&D Direction "Producing hot melt adhesive, the most challenging aspect is finding the right formula for suitable customers, followed by product stability," John Yeh pointed out. Hot melt adhesive primarily consists of EVA, along with pine resin, wheat straw, and other bio-based materials, as well as other additives mixed together. Different applications require different blending ratios. Even if they are all used on cardboard, different cardboard compositions require different formulas to achieve optimal adhesion, so customization is crucial. Due to its stable quality, Tex Year not only sells products through joint ventures to all of Europe but also attracts international brand manufacturers in Germany to request Tex Year to OEM hot melt adhesive sticks. Currently, Tex Year Europe Sp. z o. o. accounts for nearly 10% of Tex Year Group's revenue. Before the pandemic, the Polish factory had the highest profit margin among all production bases. However, during the pandemic, the multiple increases in raw material shipping costs affected profitability. "It is slowly recovering this year," emphasized John Yeh. Tex Year will continue to focus on competitive areas and gradually expand its market scale. Source: https://rebrand.ly/gmn91b9 Wealth Magazine_No. 709_Poland Market Report by Chen Yen Chun #TexYearGroup #TEXYEAR #TexYearPoland #AdhesiveExpert #HotMeltAdhesive #Tex_Year_GPS #GreenPlatformStrategy
