Davis-Standard planning for growth in China

Rebecca Kanthor
PLASTICS NEWS CHINA

Published: May 19, 2013 2:15 pm ET
Updated: May 19, 2013 2:53 pm ET

Image By: Plastics News photo by Rebecca Kanthor Bob Preston, president and CEO of Davis-Standard LLC, at a news conference in Guangzhou, China.

Related to this story

Topics Machinery, CHINAPLAS
Companies & Associations Davis-Standard LLC

GUANGZHOU, CHINA -- American extrusion and converting technology systems manufacturer Davis-Standard LLC is eying Asia and specifically China as its new second home, in a drive to become a more global company.

"We're committed to expanding our footprint out here," said President and CEO Bob Preston in May 19 news conference in advance of Chinaplas in Guangzhou. "We're not just going to expand our manufacturing footprint, we're going to expand our capabilities in the area of service, after-market and technical support," he added.

Preston and Bob Florence, executive vice president, global sales and marketing, both referred to their previous professional experience in China.

Currently 30 percent of Davis-Standard's business is in Asia-Pacific, Preston said. The company has one manufacturing plant in the region, a 46,300-square-foot factory in Suzhou that opened in 2012.

"We're using Suzhou primarily as a component plant," Preston said, but the company intends to add to its capabilities there. Davis-Standard plans to make its Super Blue and Euro Blue extruders in Suzhou for customers in China and the Asia Pacific, as well as the dsX flex-pack.

The company expects the Suzhou plant to expand to include to research and development by fall of 2014.

But Davis-Standard is already looking ahead.

"We think probably at the end of 2014 we'll probably have outgrown it, and we'll probably have to double the size of it and find another facility," Preston said.

Fred Pereira, the company's president for the Asia-Pacific, said Davis-Standard is considering several options, including expanding in Suzhou or another location in China. He said getting closer to where the raw materials are sourced could drive the decision.

"That would be one of the criteria of selecting a site," he said. "Availability of raw materials, availability of talent, how easy it is to retain people." But he added, "From an ease of management standpoint, something just next door to our [current] site would be ideal."

Preston reiterated that the decision to expand in China is in line with the company's hope to capture more of the China market.

"Ideally we want to produce a machine that [if it] is sold in China, we want to produce it in China," he said.

Bob Florence, executive vice president for global sales and marketing, made the company's goals in the region clear: "I'm looking at doubling our business in Asia Pacific and in China over the next year. It's a pretty aggressive target and I think we can get there," he said. "We think there's great potential here."


Comments

Davis-Standard planning for growth in China

Rebecca Kanthor
PLASTICS NEWS CHINA

Published: May 19, 2013 2:15 pm ET
Updated: May 19, 2013 2:53 pm ET

Post Your Comments


Back to story


More stories

Image

The return of HPM's big presses

December 19, 2014 11:47 am ET

HPM is back in big injection molding machines.    More

Image

Auto, medical, packaging all lead to solid sales for compounding extruders

December 18, 2014 6:00 am ET

Compounding extruder sales tend to be cyclical, but machinery makers report another solid year — thanks to automotive, medical, food packaging...    More

Image

Plastics News Now: Polystyrene helps spur honey production

December 18, 2014 6:00 am ET

Bee farmers are crediting polystyrene with an increase in honey production, plastic toymakers lament shipping delays and plastic bag ban backers are...    More

Image

Bubbles add some flair to 'Plain Jane' PET bottles

December 17, 2014 1:05 pm ET

Ron Puvak and the folks over at Plastic Technologies Inc. see big things coming from some very tiny bubbles.    More

Image

Shipping slowdowns add to season's stress

December 16, 2014 4:02 pm ET

Toy companies know what they want for Christmas: an end to crippling shipping delays at West Coast ports.    More

Market Reports

Flexible Packaging Trends in North America

Our latest RESEARCH report examines trends in FLEXIBLE PACKAGING impacting the North American market including a review of economic conditions, key drivers of growth, materials pricing, M&A activity, sustainability challenges and the outlook for 2015.

Learn more

Plastics in Brazil - State of the Industry Report

This in-depth report examines the Brazilian plastics industry from a historical and geographical context. Our analysts provide insight on economic trends and forecasts, growing manufacturing sectors that utilize plastics, private investment opportunities, market environment challenges, and innovations in R&D.

Data tables and charts on producer prices, trade, plastics production and end market indicators is also included.

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

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

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events