Most people see shrink wrap as a minor inconvenience at best. Yet it protects products during shipping, provides a tamper-proof seal, and even displays the branding label. As new commodities arrive on retail shelves, opportunities and challenges abound for companies that supply shrink wrap, like Shrinkpack Philippines Corp.
This shrink-wrap packaging pioneer in the Philippines has seen steady growth since it was founded in 1989. Like any part of a business supply chain, Shrinkpack must keep its prices competitive despite the peso weakening versus the US dollar. Meeting that criterion has become increasingly difficult.
One solution for the company lies in renewable energy. Through its partnership with the Manila Electric Co. (Meralco), Shrinkpack is one of the first companies to have solar photovoltaic (PV) panels installed through the expertise of Spectrum, a subsidiary of the power distributor.
Costing over P7 million in 2017, the 324 polycrystalline solar PV panels produce some 102.06 kilowatts at peak output, to generate around 11,283 kilowatt-hours of electricity monthly. This will save the company between P800,000 and P900,000 annually. Shinkpack projects to get a full return on its investment by 2025, or in eight years with operations and maintenance support.
These savings enabled the company to invest in new, even more efficient equipment, better inks, and printers. “We always try to be the first in everything,” notes Tedison Liao, president of Shrinkpack.
Investing in sophisticated and state-of-the-art manufacturing equipment greatly boosted Shrinkpack’s productivity and product quality, and allowed it to further expand its business opportunities.
Its new factory in Meycauayan, Bulacan produces polyethylene terephthalate (PET) shrink labels. PET’s strength and excellent transparency makes it the most-used type of plastic on the planet, with the highest shrinking capability of up to 80 percent that makes it highly ideal for labels and packaging.
The company also makes lower-cost polyvinyl chloride shrink films and film labels, and wrap material in oriented polystyrene, a low-density, easily compressed film often used for containers.
“Our advantage has always been about quality,” concludes Liao, “and it still is. Quality will always be our driving edge.”