January 24, 2015

Hao Yun - ZhengChang Chairman

2012 was a busy year for ZhengChang. The company changed its name from  ZCME to ZhengChang, launched the ‘Pelleting King’ SZLH1068 Pellet Mill and continued its international expansion. Founded in 1918 as an oil and rice factory, ZhengChang’s first mill came to market in 1974. Today, the company is one of the world’s largest feed machinery manufacturers and whole plant builders, with a range of turnkey solutions. Hao Yun, chairman of Shanghai ZhengChang, which is responsible for international sales and projects for the ZhengChang group, talks about the history of the company, its future and the expanding Chinese market.

Please tell our readers a little about your company

I was very young to become chairman of this company in 2008. The Shanghai ZhengChang company is focused on machinery markets and turnkey projects outside China for the ZhengChang Group. Before locating in Shanghai the ZhengChang Group was turning over US$10 million per year in export sales. Over the past five years export and sales have reached US$35 million per year.

What are the advantages of the ‘Pelleting King’?

ZhengChang’s feed workmanship has been ahead of the current common standard for 10 to 15 years. The ‘Pelleting King’ is the preparatory work for the next five to 15 years for China’s feed machinery industry. Along with the large-scale, intensification and internationalisation, China’s feed machinery will enter an era of large and middle size. The ‘Pelleting King’ will save a large amount of investment, processing and management costs as well as create great value for feed enterprises becoming stronger. For example, the four set ‘Pelleting King’ can reach hourly output of 200-220, which would need eight sets on another machine.

Besides ‘Pelleting King’, what are the company's other innovations?

A few years ago, like most enterprises in China, we only considered how to manufacture equipment that could make feed. Nowadays, ZhengChang considers how to make more benefits for our customers regarding feed processing workmanship and equipment. For example, we promote ‘Suckling Pig Feed Workmanship’, ‘New Type Cattle Feed Workmanship’ and ‘De-Salmonella Layer Hen Workmanship’, which directly influence the feed quality, the key technology and equipment of the feed industry. At the same time, the FCR, laying rate and the milk production amount have improved correspondingly.

How has ZhengChang’s overseas business developed in recent years?

ZhengChang’s overseas business has spread to some 80 countries across the world. We have over 5,900 pelleting customers, and over 8,000 pelleting mills have been purchased by customers in China and other countries. In terms of overseas business expansion, the biggest benefit is that cooperation can bring win-win results. Creating greater profits for customers means customers from overseas will be attracted by our products and auxiliary services.

Under the current economic environment, what opportunities are there for feed machinery enterprises to develop?

From small to large, China’s feed enterprises will follow the path of European and American enterprises, and increase to being large and super large enterprises with hourly output of 300T. So, feed enterprises will have new demand for large equipment. ZhengChang has done a great deal of research and studies into China’s feed enterprises, but we not just do that for feed companies, we also focus on farmers. The final target is to create value for farmers.

How is the machinery market within China?

It's very good. We are surprised with the strength of the Chinese market. Ten years ago we thought the market might become less. However, it has seen growth of between 20 and up to 30 percent per year. People are becoming richer. In the 1980s a typical Chinese family might have eaten meat once per week. Right now they can have a different meat everyday. There has been a big social change and the Government has changed also. Prior to 2000 most businesses were owned by the Government and people had fixed salaries. Now people can create new businesses and hard working people can change jobs for more money or be paid more to stay.

Why do companies value Chinese products?

We are working in 130 countries with agents in North and South America, throughout Asia and in the Middle East and Africa. Asia and South America are the fastest growing areas for us. When margins are tight companies still have to invest. Once a company has tried our products they are very satisfied. They are not as the image might suggest. I think the future is Chinese products. It's a development you can't change. That might not have been the case in the past 10 years, but we are growing up fast with the type and quality of our equipment. The mission of our company is to change the food quality of the world. That's a huge mission for us. There are people who have to eat and to eat they will need us. We say the world belongs to Chinese products.

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