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

Vinyl siding's lead slips, but industry pushing back

July 29, 2014 2:04 pm ET

Vinyl siding continues to be the top cladding choice for home builders and remodelers but fiber cement is gaining ground — at an alarming rate...    More

Image

Material Insights: Bioplastics firms win government funding

July 28, 2014 12:51 pm ET

Also this week, a study takes a look plastic at the ocean surface and comes away with a surprise finding, and new materials capacity announced.    More

Image

Gear pump maker Witte expands in Germany and USA

July 25, 2014 2:15 pm ET

Witte Pumps & Technology GmbH, the German maker of gear pumps for extrusion, has moved into a new headquarters factory in the Hamburg area, and the...    More

Image

DuPont resins help take Nike golf balls 'Fore!'ward

July 25, 2014 1:07 pm ET

It may be difficult to imagine just how much science, not to mention rubber and plastic components, go into a golf ball. But global giant DuPont Co....    More

Image

Plastics News Now: Lego pieces wash ashore 17 years after accident

July 24, 2014 9:16 am ET

Michigan replacing steel with carbon fiber to reinforce concrete on a bridge and we talk economics with Bill Wood.    More

Market Reports

Plastics Recyclers Data Report & Directory

This exclusive MS Excel database contains all the companies from Plastics News' ranking of top North American Recyclers and Brokers by reprocessed volume and also includes a directory with materials processes, services offered and company contact information. Data is based on primary research by PN editorial staff.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events