We all know that breweries in many countries in the world purchase brewing equipment from China. The main factor is price. Chinese brewing equipment is 40% to 60% cheaper than similar equipment in the United States or Europe. But why is Chinese brewing equipment so cheap? Next, Micet Craft will explain this issue to everyone. Hope it can guide you on how to choose the right brewery equipment manufacturer for your brewery project.
Why is Chinese brewing equipment so cheap?
Stainless steel is cheaper
When discussing why Chinese brewing equipment is so cheap, some people will say that China uses inferior stainless steel production equipment. But is this really the case? Let’s take a practical look at it below.
Low labor cost
First of all, I would like to say that Chinese stainless steel is indeed cheaper than stainless steel produced in the United States or Europe. However, cheap does not always mean inferior. In many manufacturing processes, China can use economies of scale to reduce production costs. Let us look at an example. If a Canadian steel manufacturer pays workers 75,000 US dollars a year, there may be another 35,000 US dollars used to pay government taxes. In China, most steel production companies are state-owned enterprises. Although they also need to pay taxes to the government, they only need to pay workers $40,000 a year. Therefore, the true cost of labor in China is lower.
Indonesia's nickel issue
I know the above is a simple example, but another example involves Indonesia. Indonesia has the largest nickel reserves in the world, and nickel is vital to the manufacture of stainless steel. More than two-thirds of the world’s nickel is used to make stainless steel. In addition, China Steel Corporation has established a new stainless steel manufacturing plant in Indonesia. Therefore, China is able to produce large amounts of stainless steel and occupy most of the stainless steel market.
If you ask me, is Chinese stainless steel cheap? I will answer you affirmatively, yes. Is stainless steel interior? This question is not difficult to answer, because China produces a variety of specifications and different qualities of stainless steel. Chinese steel manufacturers innovate production processes so that they can not only dominate the quantity market but also produce high-quality stainless steel.
China provides cheaper and better stainless steel 304 and 316 (stainless steel 304 and 316 are the best materials for manufacturing brewing equipment). Always keep the research on the equipment manufacturer you choose, and seek references from the breweries that have purchased the brewery equipment from them. It will give you full confidence in the supplier of choice. The following is a case of Micet Craft providing brewing equipment for overseas breweries, which you can check at any time. If you plan to visit their brewery, you can contact us and we will apply for an invitation letter for you.
Hard work culture
China’s leaps and bounds in the past ten years can be attributed to the fact that the Chinese people have enough love for work. Every Chinese is willing to believe that hard-working people will get more rewards. They believe that hard work can solve complex problems, and society will promote their success. When the Chinese turn to other countries, they see this as an opportunity to prove themselves and their country. In addition, their continuous hard work makes their families proud of them. People are willing to work for more money.
China business ecosystem
In China, factory production does not happen in isolation. It relies on a supply network of suppliers, component manufacturers, distributors, government agencies, and customers. Everyone can participate in the production process through competition and cooperation.
Low labor cost
As we mentioned above, actual labor costs in China are relatively low. This is a problem that every developing country has. Compared with other developing countries, China’s labor costs are higher. Moreover, in the rapid development of the last ten years, labor costs are also gradually rising, not as you have seen elsewhere.
Taxes and duties
There is an export tax rebate policy in China that allows manufacturers to sell more competitively priced equipment to the world market.
China becomes the world's factory
Although Chinese breweries have better equipment, this does not mean that the quality of the equipment is lower. China is often referred to as the “world factory”. Over the years, China’s manufacturing industry has gradually matured. Over time, manufacturing plants have improved their production processes, strengthened the training of workers, and improved the control of product quality.
Although compared with wages in Western countries, labor costs in China are lower. However, wages in China have also risen in recent years, and factories have also been developed. The factory has been able to adapt to more efficient operations, such as reorganizing the workshop and layout to make production more streamlined and more efficient.
Some comments on Chinese brewing equipment
The engineers of Micet Craft saw some comments on Chinese brewing equipment on some foreign forum blogs, and most of these comments are not good. We sort out the bad comments and explain the situation to everyone.
Chinese manufacturers use inferior raw materials to produce brewing equipment
Some people will say that when China provides industrial products for the world market, it will use cheaper and inferior stainless steel materials. In fact, cheap does not always mean inferior. Most of China’s steel manufacturing companies are state-owned enterprises (SOE), they use economies of scale to produce and manufacture stainless steel. Therefore, the price of stainless steel is also lower.
Of course, Chinese steel manufacturers produce many types of stainless steel to suit various occasions. Among them, only stainless steel 304 and 316 are the best quality materials for manufacturing brewery equipment. Some Chinese brewing equipment manufacturers may use stainless steel 201 for production equipment. This kind of stainless steel has poor corrosion resistance and may rust after several years of use. This is also the reason why some people say that the quality of the brewing equipment is poor.
However, now that brewing equipment has been developed in China for a long time, competition among industries has become increasingly fierce. Therefore, the previous manufacturers that used inferior raw materials to produce equipment are gradually disappearing, and they are slowly being eliminated by the international market. The main gap between current brewery equipment manufacturers lies in the design and manufacturing capabilities of brewery equipment. As a professional manufacturer of Chinese brewing equipment, Micet Craft has superb design capabilities and excellent manufacturing capabilities.
Chinese manufacturers’ electrical components are not allowed in the U.S. and Canada
Yes, this is true. There are UL certification requirements in the United States and CSA standards in Canada. Therefore, under normal circumstances, the electrical components used by default in China may not meet the requirements of these countries/regions. But a reputable Chinese equipment manufacturer will help you solve this problem. You need to tell them what standard electrical components you need before providing the equipment list. This will make it easier for you to receive the brewery equipment faster, and it is also convenient for the manufacturer to calculate the price for you (because the prices of electrical components of different standards are not the same).
Although an excellent equipment manufacturer knows the requirements of electrical components in your country, it may not be possible to assemble them for you due to price reasons. You can ask the local government to confirm whether the use of Chinese electrical components is allowed. In addition, you may also talk to your potential equipment suppliers to obtain their project cases and installation experience in your country. Micet Craft is helping breweries in different countries to purchase beer brewing equipment from China. We have a wealth of experience. If you need, please contact us.
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Chinese manufacturer's equipment is poorly designed
We heard someone say “Chinese equipment manufacturers don’t understand brewing processes so the equipment supplied isn’t fit for brewing efficiently”. In fact, this is not the case, it mainly depends on your requirements. When buying brewing equipment, you must be very clear about what you want. Among them, some key points that need to be paid attention to are:
Agree to the specification list
In the beginning, you need to check the equipment materials with the equipment manufacturer. For example, do you want a solenoid made in China or a solenoid made in the West? If you know your expectations from the beginning, the equipment manufacturer will be very happy, and you will not worry about subsequent production.
The type of brewhouse equipment you want
Do you need a hop filter to filter beer material? This way the hops will not clog the heat exchanger. Do you want to use a cold water tank or a secondary heat exchanger?
Keep it clean and concise in the process you need, and the brewhouse setup you want. This can help you save time and money, as well as reduce heartache caused by the equipment design. The equipment manufacturer will customize the design of the brewery equipment for you according to your brewing process and requirements, and the drawings will also be shared with you.
Excellent Chinese brewing equipment manufacturers hope that your brewery project will be as successful as you. All of this comes from good communication and specific needs in the early stage.
Tank specifications
For example, do you need carbonated fossils so that they can be matured in a fermentation tank? Do you want a racking arm on your unitanks or will a standpipe suffice? Do you need a bigger mash tun for high-gravity brewing? As above, be clear in your intentions for your brewery.
Brewery floor plan and utility exports
If you want an efficient brewing system, it makes sense to tailor the brewery equipment to your building layout. This is why, if possible, provide equipment manufacturers with as much building information as possible. It will bring better results and a more efficient brewery. In addition, utility outlets (water, electricity, and gas) are also where they need them. This way you can get brewhouse equipment and a wine cellar that makes the most of your space.
Can I buy good Chinese brewing equipment?
I saw some people asking in some brewing forums: “Is the quality of China’s equipment good?”. I can tell you the answer to this question very accurately: not all is good. The quality of equipment produced by some equipment manufacturers in China is indeed poor, but the number of such manufacturers is decreasing.
Chinese brewing equipment manufacturers now understand the quality standards and typical requirements needed to compete in the world market. They have realized that if they want to compete in the world market, they need not only competitive prices but also high-quality equipment and good service and after-sales service.
The winemaking world looks big, but it’s actually small and interconnected. People in the industry will talk to each other, and bad suppliers will soon be spread word of mouth. If you need high-quality brewing equipment, you can contact Micet Craft. We will customize your brewery equipment for you until you are satisfied.
How can I determine if the equipment made by the Chinese manufacturer is what I want?
When it comes to your brewing equipment, you need to check it, not only the final stage of the equipment but also the production process of the equipment. Before choosing your favorite manufacturer, you can visit several more manufacturers when you visit China. In this way, they can inspect their factories and see the quality of their work from the source.
Get reference
Before visiting the factory, you can contact the supplier for reference. It is best to visit overseas breweries that have purchased equipment from them and ask about their equipment usage. After that, you decide whether you need to go to the factory for on-site inspections and which factories to inspect.
Time to visit the factory
Please keep in mind that even if you decide to buy equipment after visiting the factory, it will be cheaper than buying from the United States or European and American countries. If you are sure you want to visit China, you can consider visiting the manufacturer at the following times:
- First supplier visit
- During manufacturing inspection
- Final inspection before delivery
- If possible, we recommend visiting during the manufacturing process to resolve any issues before it is too late.
What if the on-site inspection is not an option?
We know that under the current Covid-19 situation, it is impossible to visit China, so find a third party to check the equipment already in the local area, such as a wine consultant based in China. Of course, you can also:
- Write “Quality Check Required Before Shipment” on your purchase order.
- If you pay by letter of credit, you can specify that you wish to pass the inspection of the third-party quality control provider of your choice.
- Make sure to track the intermediate inspection date and shipping date, not just the shipping date.
Through proper research or industry contacts, it is possible to obtain cheap, high-quality brewing equipment made in China. Many reputable brewing companies in the world are using brewing equipment made in China to brew beer and have won many honors. If you need it, please check the list of equipment that Micet Craft can provide. Of course, you can also contact us directly, and our engineers will provide you with the most complete turnkey brewery project solution.
Get a turnkey solution for brewery equipment
If you plan to open or expand the brewery, you can contact Micet Craft directly. Our engineers will design and manufacture brewery equipment according to your brewing process. Of course, we will also provide you with a complete turnkey solution. Also, if you plan to expand the brewery, we will provide you with customized solutions.