Chinese WPC startup sees opportunities locally

By Steve Toloken
Staff Reporter / Asia Bureau Chief

Published: November 6, 2012 6:00 am ET

Zieggy Zhang, GM of Ningbo Helong, at the company's factory in Ningbo (Plastics News photo by Steve Toloken)

Related to this story

Topics Consumer Products, Construction, Materials, Suppliers

NINGBO, CHINA (Nov. 6, 12:15 p.m. ET) — Hoping to take advantage of China’s growing local market for wood-plastic composite decking and other products, a startup Chinese manufacturer has invested 90 million Chinese yuan ($14.3 million) in a new extrusion factory in Ningbo. 

Ningbo Helong New Material Co. Ltd. opened the factory in May, and plans to focus a majority of its initial capacity of 44 million pounds a year on China’s domestic market because it sees growing familiarity and acceptance of WPC, said General Manager Zieggy Zhang.

“In past years people in China did not know about WPC but in recent years WPC factories have shown their products to people with advertisements and [trade] shows, and more and more people know about WPC,” Zhang said, in an interview at the China Sixth International Forum of WPC, held Nov. 3-4 in Ningbo.

He said about 60 percent of its initial production will be targeted to the domestic market, which puts the company somewhat at odds with the traditional export focus of Chinese WPC manufacturers like Helong, which use polyethylene as their main plastic raw material.

Historically exports have accounted for about 70 percent of the industry’s sales, but the domestic share of the Chinese production has been growing.

The main driver for China’s domestic wood-plastic composites market is government projects like parks and public buildings, rather than individual homeowners or buildings as in North America, which is the world’s largest market for WPC, Zhang said.

Also, a high percentage of Chinese urban residents live in apartments, and those in single-family homes that might be potential customers for decking or other outdoor products are in rural areas and generally don’t have as much money as city dwellers, Zhang said.

Helong is targeting about 50 million yuan ($7.9 million) in sales this year and 120 million yuan ($19 million) in 2013. It has 21 Chinese-made extrusion lines at the Ningbo factory, Zhang said.

The company plans to expand capacity to 110 million pounds a year within two years, and as it expands it wants to have its sales evenly split between domestic and international business, Zhang said. It’s targeting Asia and Europe as its main export markets, he said.

The company’s raw materials are recycled PE, sourced mainly from Central and South America and South Africa, along with either wood flour or rice husk.

Helong held a factory open house Nov. 4 in connection with the Ningbo forum, which was organized by the Wood Plastic Composites Committee of the Beijing-based China Plastic Processing Industry Association.


Comments

Chinese WPC startup sees opportunities locally

By Steve Toloken
Staff Reporter / Asia Bureau Chief

Published: November 6, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

NGR introducing BritAS to the US market

January 28, 2015 11:13 am ET

NGR (Next Generation Recyclingmaschinen GmbH) will introduce the BritAS automatic band melt filter to the U.S. market at NPE 2014 — in Booth...    More

Image

Linder showing HDPE recycling system

January 28, 2015 11:08 am ET

Lindner washTech GmbH will show its technology for washing and drying shredded post-consumer plastic, at its NPE 2015 Booth S26189.    More

KM Berstorff showing range of extruders

January 28, 2015 11:05 am ET

KraussMaffei Berstorff will show a wide range of extruder products at NPE 2015, at Booth W903.    More

Image

Boy to mold wrist bands for Make-A-Wish at NPE

January 28, 2015 10:55 am ET

Boy Machines Inc. will run nine of its small-tonnage injection molding machines at its NPE 2015 exhibit, Booth W3303.    More

Image

Citadel opens second compounding facility in China, near Shanghai

January 27, 2015 3:22 pm ET

Citadel Plastics Inc., the American manufacturer of thermoplastic and engineered composite compounds, has opened its second facility in China, outside...    More

Market Reports

Plastics in Automotive: Innovation & Emerging Trends

This special report newly released by PN and sponsored by The Conair Group examines current trends in the use of plastics in automotive, materials innovations and the changing landscape. It includes a review of legislative/regulatory activity impacting vehicle development and lightweighting, market opportunities & challenges for mold and toolmakers, innovative design strategies being implemented by major OEMs and suppliers, as well as a review of key indicators in Canada, Mexico, Brazil and China.

Learn more

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

Injection Molding Market Analysis & Processor Rankings

Plastics News BUNDLED package contains our in-depth Market Analysis of the Injection Molding segment. You will gain keen insight on current trends and our economic outlook.

As a BONUS this includes PN's updated 2014 database of North American Injection Molders RANKED by sales volume. Sort, merge, mail & prospect by end market, materials processed, region, # of plants and more.

Learn more

Upcoming Plastics News Events

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