EDI expands China factory, adds staff in India

By Steve Toloken
Staff Reporter / Asia Bureau Chief

Published: February 3, 2012 6:00 am ET

Related to this story

Topics Film & Sheet, Machinery, Molds/Tooling, NPE 2012

NEW DELHI (Feb. 3, 12:05 p.m. ET) — U.S. firm Extrusion Dies Industries LLC is opening a much larger facility in China this year, as part of a longer-term investment to develop stronger capabilities for Asia-focused product development and manufacturing.

EDI, based in Chippewa Falls, Wis., will spend at least $5 million over the next five years on the China plant, sales director Robert Deitrick said at the Plastindia trade show in New Delhi.

The company will be moving this year from an 18,300-square-foot factory to a 48,400-square-foot facility in Shanghai, sales director Robert Deitrick said at the Plastindia trade show, held Feb. 1-6 in New Delhi.

The company also is adding its first direct EDI employees in India, two service technicians, as it sees that market starting to grow, he said.

But more importantly, the company plans to shift the China facility’s focus away from support work and more to developing products for growing local markets in Asia, including India.

“We are going to move it towards being a manufacturing center for the local market,” Deitrick said. “We will look to produce new equipment for the local market in China. Right now it is mostly a rework center.”

The changes will be phased-in gradually over the next five years. EDI’s Wisconsin plant will focus on higher-value-added products and handle the vast majority of the rest of EDI’s global markets, he said.

The company had looked at adding manufacturing in India, but it ultimately decided on China because EDI’s India sales right now are only about 30 percent of its China sales, Deitrick said.

For a company of its size — exceeding $60 million in annual sales — it did not make sense to have manufacturing in both India and China, he said.

However, the market in India holds interesting opportunities for EDI, which specializes in dies and other equipment for flat plastic applications like sheet, film, extrusion coating and fluid coating.

India uses more pouches and films for flexible packaging of food and medical products, and that will create a number of potential opportunities as the country’s consumer market grows, he said.

“The Indian market is one of the best emerging markets — it’s second only to China,” Deitrick said. “China is growing faster. However, the opportunity in India with its emerging middle class will be huge.”

Right now, Indian polymer consumption per person is very low, about 13 pounds6 kilograms annually, compared with a worldwide per-capita average of 59 pounds,27 kg and 79 pounds36 kg in China, according to figures presented at a conference held at Plastindia.

But EDI noted that it has a strong customer base in India. For example, the firm already manufactures a majority of dies for one of India’s largest makers of raffia, Lohia Starlinger Ltd., Deitrick said. As that market moves from monolayer extrusion to more sophisticated coextrusion, it will mean opportunities for the company, he said.


Comments

EDI expands China factory, adds staff in India

By Steve Toloken
Staff Reporter / Asia Bureau Chief

Published: February 3, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

HRS adding more North American production for hot runners

April 22, 2014 12:57 pm ET

An Italian tooling component supplier is set to open a new production plant in Grand Rapids, Mich. The HRS Flow Division of San Polo di Piace-...    More

Image

Pregis Corp. to get new owner

April 22, 2014 11:44 am ET

The private equity owner of Pregis Corp. is selling off its North American operations for an undisclosed sum.    More

Europe's bag use still expected to climb despite possible bag restrictions

April 22, 2014 9:29 am ET

Ceresana, a Germany-based research company, has released a report forecasting that by 2020 the sales volume of bags and sacks in Europe will reach 9....    More

Image

Savvy customers follow raw material prices as closely as processors

April 21, 2014 2:25 pm ET

Savvy customers closely follow the prices of raw materials. The result: in the film and sheet segment of the plastics industry, even if processors...    More

EU moving closer to rules that will reduce plastic bag use by 80 percent

April 17, 2014 10:54 am ET

European Union countries could have to reduce the use of plastic shopping bags by at least 80 percent by 2019 under draft rules backed by the European...    More

Market Reports

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report provides analysis and discussions of economic and political conditions, market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as strategies being implemented by thermoformed packaging companies. In addition, there are reviews of 25 leading thermoformers in the packaging segment, assessing their growth initiatives and performance metrics over 10 years.

Learn more

Automotive Market Review and Outlook 2014 The Americas

This 75-page report features in-depth analysis of the automotive industry for the Americas. It includes discussions of market trends, legislative/regulatory activity impacting production and threats as well as design strategies being implemented by the major automakers. Detailed charts and data tables outline North American automotive production over the last five years.

Learn more

Plastics Building & Construction Market Review and Outlook 2014 with MS Excel chart data

This report provides in-depth analysis of the plastic building and construction market for North America, including discussions of trends, opportunities, threats and the latest developments in construction trends that impact plastics processors.

Learn more

Upcoming Plastics News Events

May 6, 2014 - May 8, 2014Plastics in Medical Devices 2014

May 12, 2014 - May 12, 2014Plastics News Brazil Pharma Summit

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

February 3, 2015 - February 7, 2015Plastics News Executive Forum 2015

More Events