ALD Group Limited sets up automation manufacturing center – 50% vape production cost reduced
ALD Group Limited brand new automation production line is officially put into operation
ALD Group Limited launched a new automatic production line on officially on June 17, 2019. It is reported that the new automation production line has been planned since October 2018, and after 8 months of continuous improvement and examination, it finally realized a smooth and successful establishment.
The new automation production line is equipped with the highest level of automation equipment in the vape industry elaborately, and the degree of automation is far ahead in the electronic cigarette industry. Compared with the conventional “manual + simple fixture” assembly method, it not only greatly reduces labor costs, but also improves production efficiency by more than 50%. The successful commissioning of the new automation production line indicates that ALD’s attempt in automation production has achieved initial success, and ALD has taken a key step in leading the industry in the automation production field.
The Third Manufacturing Plant has been put into operation and the Fourth Manufacturing Plant is under construction
According to the senior management personnel of ALD, the third ALD manufacturing plant with a production area of 5,000 square meters has been fully completed and put into operation this month. In addition, the fourth ALD manufacturing plant with a planned production area of 10,000 square meters is currently under extremely busy construction. Based on mature experience, the 4th Manufacturing Plant will import the new automation production line in batches, and will be completed and put into operation in September 2019. By then, the total production area of ALD manufacturing center will exceed 40,000 square meters, and the preliminary automation upgrading of production will be completed. The total monthly production of vapes & atomizers will exceed 30 million, and the production capacity will double on the basis of 2018.
Automation Production Improves Market Competitiveness
Electronic cigarette production relies heavily on manual operation for a long time. Besides inefficiency, product stability and consistency can not be guaranteed – the labor cost accounts for up to 50% of the total cost of electronic cigarettes, and the quality problems caused by poor production process control are more than common.
With the maturity of the industry and the obvious differentiation of the market, orders are increasingly concentrated in a small number of high-quality enterprises like ALD. With the increase of order quantity, it is possible to automate production gradually. At the same time, it is also the best choice to maintain the competitiveness of enterprises by reducing costs and improving quality by improving the degree of automation.
As a typical representative of a few high-quality enterprises, ALD wins the market by focusing on product research and development, and takes the lead in starting automation upgrading. In addition to maintaining its own leading position in the industry, ALD will also stimulate the whole industry to develop towards automation. In the next two or three years, it will be possible for consumers to buy more satisfying electronic cigarette products at very affordable prices, and the substantial improvement of the cost-effective ratio will promote the further expansion and development of the electronic cigarette market and realize a virtuous circle of the vape industry.
ALD is a leading high-tech enterprise focusing on the research and application of electronic atomization technology. Its business covers various fields such as electronic nicotine delivery system (ENDS), inhalation medical atomization equipment (IMV) and low temperature heat not burn products (HnB).
The company now has more than 100 R&D teams, including basic research institutes and high-end laboratories, and has established extensive cooperation with well-known universities and research institutions in China. Since its establishment in 2009, ALD has been focusing on technological research and development, insisting on the concept of products first, and has established a solid strategic partnership with the world’s top tobacco companies and many international well-known brands. Silmo is one of its most famous subsidiary brands.