MILACRON
Expansion in China to capture larger segment of local market / Capacity upgrade and introduction of blow moulding equipment
US-based Milacron (Cincinnati, Ohio; www.milacron.com) is expanding in China. The manufacturer of injection moulding machinery said it not only plans to double capacity at its plant in Jiangyin, but also begin producing extrusion and blow moulding equipment at the site, located in the province of Jiangsu. The Chinese expansion is scheduled to more than double production capacity to around 950 injection moulding machines annually.
The company announced during the recent “Chinaplas 2014” industry fair (www.chinaplasonline.com) in Shanghai that it had invested close to USD 5m in its Chinese activities, with the expansion due to go on stream in July as Milacron moves ahead with its plans to tap into the current Chinese growth trend.
“We have been building machines in other parts of the world where, for the local market here, we are non-competitive,” explained Tom Goeke, CEO and president of Milacron. “We will now be bringing technology from other regions and manufacturing to be cost effective for the local market.” He continued by saying the strategy being implemented is planned in two phases. In the initial phase, the company is building new capacity for its electrics, which is to be followed by building some of the designs the Ohio-based company has been producing in the US and Europe.
Indeed, the company’s vice president of China operations, Gerold Schley added that the growth seen at the Jiangyin plant is being primarily driven by the local Chinese market and Chinese-owned customers, which account for some 80% of sales at the location. However, the company does plan to export its ”Elektron” series of machinery made in China to the Americas at some point this year, after having launched shipments to Europe already in 2010. Milacron has been building the all-electric series of injection presses in China since 2009 but with the investment, it plans to add the production of hybrid injection presses and extruders to the mix.
In addition to China, the machinery producer is currently expanding its Ferromatik Milacron facility in Ahmedabad / India, at a cost of USD 10m doubling capacity at the plant.
The company announced during the recent “Chinaplas 2014” industry fair (www.chinaplasonline.com) in Shanghai that it had invested close to USD 5m in its Chinese activities, with the expansion due to go on stream in July as Milacron moves ahead with its plans to tap into the current Chinese growth trend.
“We have been building machines in other parts of the world where, for the local market here, we are non-competitive,” explained Tom Goeke, CEO and president of Milacron. “We will now be bringing technology from other regions and manufacturing to be cost effective for the local market.” He continued by saying the strategy being implemented is planned in two phases. In the initial phase, the company is building new capacity for its electrics, which is to be followed by building some of the designs the Ohio-based company has been producing in the US and Europe.
Indeed, the company’s vice president of China operations, Gerold Schley added that the growth seen at the Jiangyin plant is being primarily driven by the local Chinese market and Chinese-owned customers, which account for some 80% of sales at the location. However, the company does plan to export its ”Elektron” series of machinery made in China to the Americas at some point this year, after having launched shipments to Europe already in 2010. Milacron has been building the all-electric series of injection presses in China since 2009 but with the investment, it plans to add the production of hybrid injection presses and extruders to the mix.
In addition to China, the machinery producer is currently expanding its Ferromatik Milacron facility in Ahmedabad / India, at a cost of USD 10m doubling capacity at the plant.
07.05.2014 Plasteurope.com [228163-0]
Published on 07.05.2014