Smag joins China-based Rhyguan Group

SRAMAG SAS (commonly known as Smag) has become a Rhyguan group company, with China-based Rhyguan becoming the major shareholder in Smag holdings.

The existing owners of Smag remain committed to the business and will retain a share of the stocks. CEO Stephane Rateau and financial director Jean-Marie Mercier will continue in their positions.

Commented Stephane Rateau, ‘with Smag joining the Rhyguan group we can better access all the Asian market. Smag on its own was too big to be small and too small to be big, and had no third generation of owners coming into the company. Now we will benefit from the purchasing scale of economies of Rhyguan, and the “group effect” with an extended product portfolio for all customers. Of course, we will retain our unique high-end product range such as, for example, the Galaxie Classic, The Iconcept, The Iconnect.’

These Smag equipment lines will continue to be manufactured in France, while products for which mass production brings the scale of economies, such as the Smag Easy convert and Easy control lines, will be assembled by Rhyguan before being finalized in Smag’s factory in France. All those products will still be offered by the existing Smag sales network, and some will merge with Rhyguan’s product lines.

Smag’s Chinese and Asian customers will benefit from Rhyguan’s local service capabilities, while Rhyguan customers in France will benefit from communication in the French language and improved service and response times. Smag will, effective immediately, start to provide the full Rhyguan Group portfolio in France and the French-speaking countries in Africa.

Rhyguan is a family-owned business headquartered in China. The company manufactures and installs some 700 label finishing and converting machines per year, making it one of the world’s largest manufacturers of label finishing equipment.

Rhyguan recently invested in a dedicated 50,000sqm production facility in Ruian city. The old production facility will be closed and the company will move to its new head office in November 2023.

Alvin Cai CEO of Rhyguan group added: ‘Our new production facility is absolutely world class and allows for large savings in CO2 emissions through the use of solar panels. With the investment in Smag we wish to show our strong commitment to the European market and especially the needs of European customers for good after-sales service. Smag will retain a unique and value-adding product range produced in France.’

Rhyguan Europe was set up in 2019 and since then Rhyguan has invested in a European demo center and locally based stocks of spare parts and improved service capabilities.

Daniel van Zelst who is currently the managing director of Rhyguan Europe, located in Eindhoven, Netherlands, will additionally assume the position of president of the board of Smag Holdings. Stephan Rateau will continue to manage the daily business and remain the CEO of SRAMAG.

Daniel van Zelst said, ‘Rhyguan Europe and Smag will continue to operate separately, with each focussing on its areas of strength. It is important to stress and assure Smag staff and customers that no lay-offs are foreseen. Quite the opposite, in fact. Starting 2024 new positions may be created, as Rhyguan will continue to invest in innovation, service and support. Moreover, we aim to create strong growth of the Smag business.’