Shrinkflex bets on flexo printing to capture Southeast Asia’s SME market

THAILAND – Shrinkflex (Thailand) Public Company Limited is making a bold move into flexographic printing as it seeks to capture the small and medium enterprise (SME) segment, a rapidly growing yet underserved market across Southeast Asia.

The label manufacturer’s recent installation of a Nilpeter FA-22 flexo press marks a strategic shift from its gravure-dominated operations toward a more flexible and cost-effective production model.

Founded in 2007, Shrinkflex built its reputation through gravure printing, which accounts for nearly 90 percent of its business.

However, as CEO Michael Tsoi notes, “More than 85 percent of businesses in Southeast Asia are SMEs. This is the biggest market, yet it’s often forgotten.”

The company sees flexo technology as the bridge between short-run digital printing and high-volume gravure, providing SMEs with affordable, medium-run packaging solutions.

Over the past three years, Shrinkflex has invested more than 188.6 million Baht (US$5.8 million) in new machinery, including the Nilpeter flexo press, plate-making equipment, and pouch-making machines.

The new press, part of an 83.8 million Baht (US$2.58 million) investment in 2024, strengthens its capacity to deliver faster turnaround times, lower setup costs, and improved sustainability.

Beyond market access, Shrinkflex’s shift supports its ESG goals. The company employs UV LED curing to reduce carbon emissions and has joined SEDEX, earning SMETA 4 Pillars certification for labor, safety, and environmental standards.

Its partnership with Nilpeter also extends beyond equipment supply, Shrinkflex now serves as an “open house” facility where regional converters can observe real-world flexo operations, encouraging broader adoption of the technology.

Shrinkflex’s flexo expansion mirrors similar investments across the region. Siam Label Group in Thailand and Mega Label Malaysia recently adopted advanced flexo presses to serve regional FMCG clients with faster, sustainable label production.

In India, Skanem Interlabels introduced UV flexo systems to offer hybrid printing for SMEs, while CCL Label Indonesia has integrated LED flexo to meet demand for medium-volume, customizable packaging.

These moves reflect an industry-wide pivot toward balancing cost efficiency, flexibility, and environmental responsibility.

For Shrinkflex, the flexo addition completes a powerful trio, gravure for high-volume, digital for short runs, and flexo for the growing SME middle ground.

“Our collaboration with Nilpeter is not just about adding a press,” says Tsoi. “It’s a strategic alliance that brings innovation to the forefront.”

With this investment, Shrinkflex positions itself as both a regional leader and educator, driving the next phase of Southeast Asia’s sustainable packaging evolution.

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