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Borch has eye on North American sales

By: Nina Ying Sun

April 11, 2012

ORLANDO, FLA. (April 11, 3:15 p.m. ET) — Larry Mermuys started buying Borch injection molding presses imported from China in 2004 for his company, Tier 2 auto supplier Plastics Plus Inc. in Hamilton, Ontario. “The first ones had issues,” he said. But at NPE2012, he was at Borch’s booth touting the machines as president of Borche North America.

He still is the president of Plastics Plus. But he’s also trying to help the Chinese machinery maker make a larger impact in the North American market.

(The Chinese parent company spells its name Borch, while the North American company uses Borche.)

Mermuys said Borch has been constantly improving and upgrading its products over the years, and 15 of the 19 presses currently in his molding shop are Borch machines.

Borch now exports a third of its machines, well established in Europe and South America, according to Hans Chen, vice president of Guangzhou Borch Machinery Co. Ltd. and president of Upland, Calif.-based Borch Import & Export Inc.

The Guangzhou-based company showcased two presses at NPE, and Chen said he is seeking agents in the United States. “We are ready to speed up our growth in North America, and we are ready in every way – technology, team, and capital.”

Its machines exceed the energy-saving standards set by China’s leading press makers, and offer high-precision and high-speed features, added Joe Tang, director of sales & marketing of Guangzhou Borch. He touted two other advantages, including cost effectiveness and fast service and response. The portfolio includes all-electric and two-platen machines.

“People walk up to our booth and ask whether the machines are on – they just couldn’t believe how quiet these presses are,” Chen said.

Borch’s current production capacity is at about 5,000 machines or 1 billion yuan (US$158.5 million). It is building a new plant in Shaoxing, Zhejiang province, which is expected to launch and double Borch’s capacity in three years.

“After the global recession, the U.S. market now is showing healthy growth. Manufacturers have a critical need for cost-effective equipment to take advantage of the growth opportunity,” Chen said. He said his market research shows that many North American injection molders are looking to replace their outdated machines that are more than 12 years old.

Chen said he’s confident that, “with the right team,” Borch can grow its North American sales to US$100 million over the next three years. He believes that the business will need to start an assembly facility in the U.S., once sales reach a certain point, “and that will happen in the near future.”