China firm seeks US partners for compounding, distribution

By Nina Ying Sun
Assistant Managing Editor

Published: April 4, 2012 6:00 am ET

Related to this story

Topics Materials, Suppliers, NPE 2012

ORLANDO, FLA. (April 4, 6:45 p.m. ET) — Panjin Zhongrun High Performance Polymers Co. Ltd., which claims to be the second largest PEEK supplier in the world with annual capacity of 1,200 metric tons, is seeking compounding and distribution partners in United States.

As a newcomer to PEEK field, Panjin Zhongrun acquired technology from China’s Jilin University in 2008 and started mass production last year, said Steven Xu, marketing and sales director. Evonik also uses the same technology from Jilin University to make PEEK.

Annual total demand of the global market current logs in at 4,000 metric tons, mostly from the semi-conductor and aerospace industries, Xu said, and the industry leader Victrex alone has 3,000 metric tons of capacity.

With a lofty price tag — about $80 per kilogram – Panjin Zhongrun said its PEEK polymers focus on export to Europe and North America. The Chinese PEEK market in growing by 20-25 percent annually, but the sheer volume still is low – only 2-3 percent of the global total.

The U.S. currently ranks as Panjin Zhongrun’s second largest market, only after Germany.

The company, based in Panjin, Liaoning province, is looking for compounding and distribution partners in the U.S.  Xu said he has arranged to visit a few potential partners right after NPE. “We realize that, unlike Germany, the U.S. market is vast and features regional industry clusters. That’s why we are looking in different regions for multiple partners.”

One of priorities for the company is to raise its profile and make Western customer aware of and trust its products, Xu said.

“We have some price advantages, about 5 to 10 percent lower than Western competitors’, but not more than that,” he said, “We use the same technology as Evonik’s. And we pay the same prices for the monomers, and materials production is not a labor-intensive industry where you’d expect to see a significantly lower ‘China price.’”


Comments

China firm seeks US partners for compounding, distribution

By Nina Ying Sun
Assistant Managing Editor

Published: April 4, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

Akro-Plastic buying German subsidiary from Metabolix

October 24, 2014 3:32 pm ET

Akro-Plastic GmbH, a Niederzissen, Germany-based plastic compounder, has purchased the assets of Metabolix Inc.'s subsidiary in Germany.    More

Image

Automation firms join forces, look to automotive for future growth

October 24, 2014 2:43 pm ET

Hoping to ease the way for automation in some specialized areas of automotive plastics like laser cutting of door panels, a German robot maker and an ...    More

Image

German export sales strong, push for energy savings continues

October 24, 2014 12:34 pm ET

Germany is the engine that drives the European economy — and when it comes to the plastics industry, German machinery is a potent force, an...    More

Image

Arburg expands presence in China

October 24, 2014 11:34 am ET

German machinery maker Arburg GmbH + Co KG has expanded its office in Shenzhen, China, making it the company's first competence center for automation ...    More

Image

BASF pre-tax earnings rise, but will miss financial targets for 2015

October 24, 2014 10:16 am ET

BASF SE has raised its expectations for pre-tax earnings in 2014 but warned that it would not hit its financial targets for next year.    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

More Events