Zhongtian explores US market at NPE

By Nina Ying Sun
Assistant Managing Editor

Published: April 4, 2012 6:00 am ET

Related to this story

Topics Molds/Tooling

ORLANDO, FLA. (April 4, 6:45 p.m. ET) — Taizhou Zhongtian Plastics Co. Ltd.’s small booth at NPE2012 is filled with large, hollow plastic items – pet houses and wheeled garbage totes of different sizes. The first time NPE exhibitor hopes to open up the U.S. market with its injection molded and blown molded products, backed up by ongoing expansions of two new factories in China.

Even with rising production costs in China, strengthening yuan and shipping cost of large hollow items, the company still is optimistic to give the U.S. market a try, said Susan Zhang, an export manger.

Exports already makes up 40 percent of its business, with Australia being the largest export destination.

“Some U.S. customers are already using our products,” she said, through Zhongtian’s contract production for U.S. manufacturers. But the company is hoping to sell directly into the market.

Part of the rationale behind the effort to expand U.S. sales is to compensate for the decline of export in other markets since the second part of 2011. “Our traditional markets are sort of saturated.”

Its investment on overseas expansion is backed up by fast-paced growth in China’s domestic market, esp. through government bids and contracts. Zhongtian’s total sales are around 300 million yuan (about $48 million). Zhang said its domestic sales are expected to grow 10 to 20 percent in 2012, while export is most likely to stay flat.

To add to its production capacity at its headquarters in Taizhou, Zhejiang province, Zhongtian is launching its second factory, located in Liaoning province in Northeast China. Zhang said the plant is built on a campus of 120 mu (about 20 acres).

Zhongtian is also building a third factory, on about 15 acres of land, in Taizhou, Zhang added. The new plant is scheduled to commerce production in 2013.

The privately owned company is investing 150 million yuan ($24 million) this year to build about 624,307 square feet of new manufacturing space, according to a report on its web site.

Zhongtian has about 50 injection molding presses, plus blow molding machines, welders and other equipment.

Its workforce of 300 is expected to grow about 20 percent with the new factories, but Zhang stressed that the company is increasingly adapting automation technologies and upgrading its existing machinery to increase efficiency.


Comments

Zhongtian explores US market at NPE

By Nina Ying Sun
Assistant Managing Editor

Published: April 4, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

Austrian mold maker seeking North American manufacturing partner

July 25, 2014 1:49 pm ET

An Austrian mold maker is looking for a manufacturing location in North America.    More

Image

Tooling Technology has new private equity owner

July 25, 2014 11:55 am ET

New York private equity firm GenNx360 Capital Partners has partnered with management to buy Tooling Technology Holdings LLC, a diversified Ohio-based ...    More

Image

Wisconsin mold maker doubling facility size

July 16, 2014 2:05 pm ET

A Germantown, Wis. toolmaker is planning to more than double the size of its facility.    More

Market Reports

Plastics Recyclers Data Report & Directory

This exclusive MS Excel database contains all the companies from Plastics News' ranking of top North American Recyclers and Brokers by reprocessed volume and also includes a directory with materials processes, services offered and company contact information. Data is based on primary research by PN editorial staff.

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

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

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