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

Five-axis flexibility paying off for Sepro and its customers

October 29, 2014 1:47 pm ET

French robot maker Sepro Robotique expects to generate 78 million euros ($99 million) in 2014 sales — 17 percent more than 2013 — as...    More

Image

Germany's BÖ-LA taking touch sensitive film further into the marketplace

October 28, 2014 12:27 pm ET

FRIEDRICHSHAFEN, GERMANY — A German producer of screen-printed decorative films for insert molding featured a new demonstration part at Fakuma...    More

Image

KraussMaffei thinking small (machines)

October 27, 2014 6:00 am ET

KraussMaffei Technologies GmbH is targeting small-tonnage machines at Fakuma — including the rollout of its reworked CX press, boasting lower...    More

Image

Milacron features multi-brand integration

October 27, 2014 1:36 pm ET

Fakuma 2014 gave Milacron LLC an ideal opportunity to show how its ever-growing portfolio of brands are working together in the injection molding...    More

Image

Synventive adding capacity in Europe

October 27, 2014 10:16 am ET

Hot runner maker Synventive Molding Solutions is planning to increase production capacity in Europe by 50 percent.    More

Market Reports

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 million dollar plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events