Zhejiang Lihao Plastics Co., Ltd. cooperates with Fortune 500 companies

Zhejiang Lihao Plastic Industry Co., Ltd. was established in 1990 and is headquartered in Taizhou City, Zhejiang Province, China's plastics industry base. It has 35 years of industry experience in the professional production of plastic pallets and industrial trash cans124. The company covers an area of 50,000 square meters and is equipped with advanced intelligent injection molding equipment and a full-process quality inspection system. The annual production capacity reaches 500,000 plastic pallets and 300,000 industrial trash cans921.

The company's talent structure is characterized by high education. Among the 508 employees, 10 have doctors, 30 have postgraduates, and 31.5% have bachelor's degrees or above, forming a technical team with R&D as the core59. Its independently developed environmentally friendly plastic pallets have passed Rheinland certification, and the product recyclability rate is 95%, which has a significant low-carbon advantage in the field of logistics and warehousing527.

2.Cooperation Background

In 2023, China Railway Construction Corporation Limited (hereinafter referred to as "China Railway Construction"), a Fortune 500 company, launched a global logistics system upgrade plan and needed to purchase lightweight, high-strength plastic pallets and industrial trash cans that meet international standards. Zhejiang Lihao stood out from more than 200 suppliers worldwide with the following advantages:

1. Technical strength: The R&D team has mastered the high-density polyethylene (HDPE) modification technology, which has increased the pallet's carrying capacity to 2 tons, meeting the stringent requirements of railway freight. 2128

2. Environmental qualifications: The product has passed the EU RoHS certification and uses 100% recyclable materials, which is in line with China Railway Construction's "dual carbon" strategic goal. 527

3. Capacity guarantee: 50 intelligent injection molding machines achieve 24-hour uninterrupted production, which can meet China Railway Construction's stable supply demand of 2,500 pallets per month. 921

3.Cooperation Content

Product customization:

1. Customized 1200×1000mm Sichuan-shaped grid pallets for China Railway Construction Corporation, with built-in steel frame structure, suitable for extreme environments of -30℃ to 65℃1628.
2. Developed 240L industrial trash cans, using UV-resistant materials, with RFID chips embedded on the surface of the barrel to achieve intelligent management of garbage classification421.

Supply chain innovation:

1. Establish an integrated service system of "production - warehousing - distribution" and set up a VMI (vendor managed inventory) warehouse at China Railway East China Logistics Base, increasing inventory turnover by 40%78.
2. Use digital systems to visualize the entire order process, shortening the delivery cycle to 7 working days2128.

Technical collaboration:

1. Jointly established the "Green Logistics Equipment R&D Center" and jointly applied for 3 utility model patents, among which the "foldable pallet structure design" has been applied to the China-Europe Express Logistics Project 527.

4.Cooperation Achievements

Economic Benefits:

1. The contract value in 2024 will reach RMB 12 million, accounting for 35% of China Railway Group's procurement of similar products921.

2. Zhejiang Lihao has reduced unit costs by 18% and increased its profit margin to 22% through large-scale production2128.

Social Benefits:

1. Replacing traditional wooden pallets, reducing wood consumption by 1,200 cubic meters per year, equivalent to planting 60,000 mature trees527.

2. The intelligent management system for trash cans has increased the accuracy of garbage classification in China Railway Group's affiliated parks from 65% to 92%421.

Industry Impact:

1. This cooperation case was selected as "2024 Typical Cases of China's Logistics Equipment Innovation and Application", which promoted the popularity of plastic pallets in the field of railway freight by 12 percentage points2728.

2. Zhejiang Lihao has become a "strategic supplier" of China Railway Group and has been invited to participate in the formulation of the industry standard "Technical Specifications for Plastic Pallets for Railway Logistics"527.

5.Cooperation witness

Signing ceremony:

1. On September 15, 2023, the two parties held a strategic cooperation signing ceremony at the Zhejiang Lihao headquarters. Zhang Wei, general manager of the Supply Chain Management Department of China Railway Group, and Gao Guoxin, chairman of Zhejiang Lihao, jointly signed the agreement (Figure 1)922.

2. The first batch of smart pallets and trash cans delivered were displayed at the ceremony, and the product life cycle management system was demonstrated through a real-time data screen2128.

Joint laboratory unveiling:

1. In March 2024, the "China Railway Group-Zhejiang Lihao Green Logistics Equipment Joint Laboratory" was officially unveiled in Taizhou, and the technical teams of both parties reached 3 cooperation agreements on the research and development of lightweight pallet materials

Customer evaluation:

"Zhejiang Lihao's products not only meet our dual requirements for quality and environmental protection, but its digital supply chain solutions have helped us achieve a revolutionary improvement in logistics efficiency."

—— Zhang Wei, general manager of the Supply Chain Management Department of China Railway Group

The two parties plan to deepen cooperation in the following areas:

1. Intelligent equipment research and development: Develop pallets equipped with sensors to achieve real-time monitoring of cargo status.

2. Circular economy model: Establish a pallet sharing and leasing platform, which is expected to cover 80% of China Railway Group's logistics nodes in 2025.

3. Overseas market expansion: With the help of China Railway Group's "Belt and Road" project, Zhejiang Lihao products will be promoted to enter Southeast Asia, the Middle East and other markets.

Conclusion

The cooperation between Zhejiang Lihao and China Railway Group is not only a strong combination of traditional manufacturing and Fortune 500 companies, but also a deep integration of scientific and technological innovation and green development concepts. This case has set a model of "technology-driven, collaborative and win-win" for the industry, and also provided valuable experience for Chinese manufacturing companies to participate in global supply chain competition.