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Longzu Plastic adding metalworking

By: Nina Ying Sun

April 5, 2012

ORLANDO, FLA. (April 5, 5:20 p.m. ET) — Thermoset injection molder Longzu Plastic Molding Co. Ltd. of New Taipei City, Taiwan, is expanding into metalworking, which it believes is helping to grow its traditional plastics business and achieve a high precision and integrated business model.

The example given by sales manger Gary Yang in an interview with Plastics News is a RF switch connector, which he described as a board-mounted receptacle, designed for inspection of high frequency circuit.

“This is a high growth item, probably growing five to 10 times this year,” he said. Applications include cell phones, portable wireless devices, and other wireless and RF measurement equipment.

The company’s new center is equipped to perform metal injection molding, stamping, die-casting, forging and aluminum extrusion. It also injection molds plastics (thermoset, thermoplastic and insert molding) and fluoropolymers.

Yang said he is noticing a clear uptick in the export markets. Longzu exports 40 percent of its products, mostly to the U.S. and Southeast Asia.

The first-time NPE exhibitor hopes to grow the company’s U.S. sales. Longzu has been in St. Louis-based Emerson Electric Co.’s supplier recognition program for years.

Longzu’s production is exclusively located in Taiwan with a fully integrated test center to ensure a zero defect rate, Yang said. On the plastics side, it plans to add three to five machines this year.

Due to China’s rising costs, some Taiwanese manufacturers have moved production from mainland China back to Taiwan, said project manager Frank Wu.

“When they relocate back to Taiwan, they try to improve automation and make higher precision products.”

Just like mainland Chinese exporters, Taiwanese firms are also facing an appreciating local currency against the U.S. dollar, another source of pressure to become more efficient and pursue higher-value-added products. The New Taiwan dollar gained 2.6 percent just during last quarter.

The company expects to grow its sales by 15-20 percent this year from 200 million New Taiwan dollars (about US$7 million). It employs about 100.