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Dongxu Guo: An invisible "champion"

Release date:2017-08-05 10:52Viewed:

Shoulder label: Professional manufacturer of hydrocolloid in domestic food industry——

Main target: Dongxu Guo: An invisible "champion"

"To be China's "Denisco".-Vice Chairman of Greenfresh Group Dongxu Guo

Behind many world-renowned companies, there are some unknown companies. Behind their understated appearance is the unparalleled market "hegemony", which can be called the "invisible champion" in the business world.

Such an enterprise is hidden in the Zini Anshan Industrial Park in Longhai, Zhangzhou. It is a professional manufacturer of hydrocolloid in China-Greenfresh Group. This marine science and technology enterprise specializing in the production of seaweed extracts such as carrageenan, agar and etc., the products are widely used in jelly, dairy products, medicine and daily chemicals. Greenfresh business coveris more than 20 domestic provinces, Europe, the Middle East, Southeast Asia and etc. With an annual capacity of 10,000 tons of refined carrageenan and 4,000 tons of agar, Greenfresh has a leading position in agar and carrageenan field in China and even in the world.

Dongxu Guo, one of the founders of Greenfresh Group and in charge of technology management, has been in the hydrocolloid industry for more than 30 years. Since 2014, Greenfresh Group has increased its investment in the technical team, gradually focused on product R&D and application, and tried to upgrade through innovation-driven. Guo said that the goal of Greenfresh Group is to become China's 'Danisco' (the world's leading food additive manufacturer) and become a leader in the hydrocolloid industry.

Seize every development opportunity

 The time goes back to 1995, when the domestic soft candies industry was rising. Dongxu Guo, who was engaged in the soft candies trading in the early days, started from a soft candies and kept in touch with the agar, the raw material of soft candies production. Out of accidental thinking, he believes that agar is healthy to eat and has a long history, can be a long-lasting industry. Thus, the first factory established in Shishi, Fujian province.

"When I was young, I ate Agar jelly. In fact, what we did was to industrialize this production through technical means." As a Hokkien, Guo Dongxu has a Hokkien’s character of "winning by hard work" in his blood. With the development of first factory, to expand the production line, they set up the second factory in Zhangzhou.

Dongxu Guo believes that Greenfresh Group can grow bigger because it seizes every opportunity for development. In the more than 20 years of enterprise development, Greenfresh has taken three key steps. The first development opportunity comes from relocation and expansion. In 2008, Greenfresh earned the first barrel of gold in the agar industry and faced the choice of whether to continue to expand production capacity. Inspired by the Hokkien’s spirit of” Strives for success”, several partners took a crucial step.

In the third year of making production expansion decisions, in order to improve quality and quantity, after careful decision, Greenfresh once again invested heavily in equipment production lines to meet the production needs of core customers. After expanding production and stabilizing quality, Greenfresh's influence in the industry began to grow gradually.

"For more than 20 years, I have witnessed the reshuffling of the entire industry. Some of the peers have also developed, some have been discarded, and some are still doing it, but they have not changed much from the original." Dongxu Guo admitted: Greenfresh has grown from a small company not only in its early development, but also in seizing every opportunity bravely.

In 2014, in the context of overcapacity in the overall food industry, as an intermediate material supplier, Dongxu Guo deeply realized the urgency of transformation and upgrading. As a result, Greenfresh also ushered in the third time, which is also a more important period of strategic transformation. This time, the company's strategy is from bigger to stronger. This will be an important step for Luxin to widen the gap with the industry.

Innovation drives transformation and upgrading

Since 2014, Greenfresh Group has begun to explore a path of transformation and upgrading to become bigger and stronger. After more than 20 years of business, under the premise of stable production capacity of carrageenan, agar, and konjac gum, Greenfresh has begun to invest a strong technical teams to develop the back-end compound products.

    "Providing formula solutions is the key to transforming from a single producer to a technology research and development enterprise." Green Fresh has gradually increased R&D investment since three years ago. Nearly 1,000 employees focus on the production and R&D of high-quality seaweeds colloids and konjac products. Due to the stable core customer base, Greenfresh’s annual revenue is basically within the estimated range, but new breakthroughs must be opened up in new areas.

In Guo's view, the prerequisite for investing in research and development benefits from the stability of the main business sector. At that time, Greenfresh had become the largest single-ingredient producer in China before it could have the capital strength to enter the research and development field. In fact, in the context of a large industry, the demand of the entire food industry has shifted from "ingredients" to "recipe" supply. More middlemen put aside the price competition of "ingredients" and added more competitive "recipes".
If the industry continues develop, the research and development of technical solutions is a major direction. "The difference between us and the peers will start from here. We provide application solutions that are aimed at customers’ difficulties in the actual production process, which will make the products developed more accurate. What’s more, because there is bound to be a demand for "ingredients" in the "formulations", which will also enable company to achieve a larger output scale."

To be China's "Danisco"

At present, two-thirds of the world's food hydrocolloid production is in China. It largely due to the “made in China” products transported throughout the world. With the help of "Made in China" foreign trade transportation, Greenfresh Group imports high-quality seaweed and other raw materials from Southeast Asian countries such as Malaysia and the Philippines at low transportation costs, and then exports products to the world.

Up to now, Greenfresh Group's trading territory has expanded to Asia, Europe, Africa, North and South America and other parts of the world, became one of the largest hydrocolloid manufacturers in the world. Looking back to the path, Greenfresh's development is the growth mode of traditional enterprises: by improving quality to seize core customers, step by step to grow; then through technological innovation, step by step to become stronger.

With more than 20 years of deep cultivating in the hydrocolloids field, Guo said frankly that the future development goal of Greenfresh Group: "To be China's Danisco." To become a leader in the global food additive production industry. However, the competition of enterprises is the competition of talents, and talents in the food industry are very scarce. Guo is looking forward to cultivating an outstanding R&D teams through R&D communication with domestic universities in the next few years.

Starting from a soft candy, Dongxu Guo's hydrocolloid business unknowingly took root and grew silently, until it followed the cruise ship of “made in China” and became an unknown "invisible champion". After so many years, Guo's deepest understanding is that "a loss is a blessing". Based on the business philosophy of honesty and diligence, he believes that there is no shortcut to a business, only one step at a time.


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