HPM is back at NPE - but now it's made in China

By Nina Ying Sun
Assistant Managing Editor

Published: April 3, 2012 6:00 am ET

Related to this story

Topics Injection Molding, Machinery, NPE 2012

ORLANDO, FLA. (April 3, 8:35 p.m. ET) — The HPM brand of American injection molding machines is back at NPE — but now it’s made in China.

A 220-metric-ton servo-hydraulic machine is churning out clear plastic boxes at HPM North America Corp.’s NPE booth (26058).

This is the first HPM injection molding machine that has been assembled in the Chinese parent company’s factory in Foshan, Guangdong province. It is manufactured based on American standards including the dimensions and safety standards, said Richard Yan, CEO of Guangdong Yizumi Precision Machinery Co. Ltd.

About 15 percent of the components on the machine were sourced in the United States, mostly electric control parts, he added.

The NPE2012 exhibition is the first step of what Yan called “active sales” of HPM injection presses, which will be in the range of 80 to 1,100 metric tons and target such end applications as electrical appliances, packaging and consumer products.

“It’s perfect timing,” Yan said, alluring to the healthy growth of the U.S. market indicated by latest economic data. As the ancient Chinese saying goes, success is the right people at the right time in the right location. “From what we’ve seen at the show, there is a clear uptick in the market.”

The new HPM machine will offer strong price advantages. Yan said the prices will be “no higher than used machinery, which has seen a price hike due to short supply in this country.”

After acquiring HPM’s intellectual property, brand and customer lists through an auction in March 2011, Yizumi established HPM North America Corp. in September 2011, and then acquired 100 percent of Bivouac Engineering and Service Co. in January. Bivouac owner and former HPM president William Flickinger was appointed the president of HPM North America.

“He is now fully dedicated to bringing the HPM machines back,” Yan said.

The first and foremost task is to build a team, Yan noted. HPM NA now has eight technical staff in Marion, Ohio, all of whom hired locally. Yan expects to expand the headcount to 12-15 by the end of the year, and the new additions will be local American employees as well.

“Our plan is to spend two years [since September 2011] to fully digest HPM technology and experience, and start making the full range of HPM machines in China.” That will include about 8 models of die casting machines and up to 12 models of injection molding machines.

But the company also doesn’t rule out the possibility of start assembling the machines here in the U.S., perhaps within 3-4 years, Yan said.

The localization effort will start in the third quarters, when the company will start modifying and customizing standard small presses (under 500 metric tons) at the Marion site. The standard machines will be assembled and shipped from China.

With “urgent orders,” Yan said the company will ship “half-finished” machines from China and finish them in Marion. “We are already doing that with die casting machines.” That will speed up the delivery time.

Many American customers have deep feelings for the HPM brand, said Yan. One company that stopped by the booth to ask for parts and service said it is running a 1968 HPM press. “Some customers tell me that this is a brand they saw when they were still kids.”

Yizumi is determined to replicate the HPM model in other strategic markets. “HPM’s demise to a large extent was due to its lack of global expansion. We are definitely embarking on a global strategy.”

The company plans to launch a technical center in India, where Chinese injection presses are still subject to lofty anti-dumping tariffs.

Other target markets include Brazil and Turkey.

The aggressive global expansion is backed by Yizumi’s progress in China. The company has already submitted its IPO application to the Shenzhen Stock Exchange and started the review process. “We are hopeful that we’ll be able to launch the IPO this year, which will bring in capital that we’ll use to expand.”

In the meantime, Yizumi is constructing two new factories, one in Foshan and another in Suzhou, Jiangsu province. The new Foshan facility is scheduled to start production in first quarter 2013 and the Suzhou one by mid year.

Yizumi is also aiming to launch prototypes of all-electric and two-platen presses in China this year. But Yan commented that servo-hydraulic machines combine the advantages of energy saving, high precision and cost-effectiveness.

HPM NA will have two to three American agents join the sales effort after NPE.

“The market is happy to know HPM is back,” said Flickinger, “and customers are interested to see the new machine.” He is the machine on display will go to Marion and stay there for a month, when the company will prepare service manuals. He said HPM is well prepared for the full roll-out, including trained service staff and available parts.

Traditionally, HPM customers were located in the Midwest, South and Southwest. But with the new opportunity, the brand will reach farther in the U.S. and beyond.


Comments

HPM is back at NPE - but now it's made in China

By Nina Ying Sun
Assistant Managing Editor

Published: April 3, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

Baxter investing $300 million to expand dialyzers production in Alabama

August 29, 2014 12:53 pm ET

Baxter International, Inc. is expanding its Opelika, Ala. manufacturing location to boost production of dialyzers, a key component of hemodialysis...    More

Image

Obituary: Jerry Williams, Prism Plastics co-owner

August 29, 2014 8:50 am ET

Williams founded Prism Plastics with Rod Bricker and Gerry Phillips, after the three left Huron Plastics Group in 1999.    More

Image

Haitian's standardization efforts paying off

August 29, 2014 9:53 am ET

Streamlined design efforts and robust export sales helped propel Ningbo, China-based injection molding machine manufacturer Haitian International...    More

Image

American Starlinger-Sahm begins work on new US headquarters

August 29, 2014 10:18 am ET

American Starlinger-Sahm Inc., which sells equipment for woven plastic bag production, PET recycling equipment, sheet extrusion and laminating lines...    More

Polish injection molder Teknorubber up for sale

August 29, 2014 9:14 am ET

Polish plastic parts maker Teknorubber has been put up for sale following its insolvency filing in March 2014. The company is to be auctioned through ...    More

Market Reports

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report analyzes economic and market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as growth strategies being implemented by thermoformed packaging companies.

Learn more

Pipe, Profile & Tubing Extrusion in North America 2014

U.S. demand for extruded plastics is expected to grow by 3 percent in 2014, with PVC remaining the largest segment.

Plastic pipe will post the strongest gains through 2018, continuing to take market share from competing materials in a range of markets.

Our latest market report provides in-depth analysis of current trends and their financial impact on the pipe, profile and tubing extrusion industry in North America.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

Learn more

Upcoming Plastics News Events

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

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

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

More Events