A. Schulman steps up investment in Asia

By Steve Toloken
Staff Reporter / Asia Bureau Chief

Published: May 22, 2013 1:35 pm ET
Updated: May 22, 2013 1:38 pm ET

Image By: Plastics News photo by Steve Toloken Derek Bristow, A. Schulman's vice president and general manager of Asia Pacific

Related to this story

Topics Materials, Materials Suppliers, CHINAPLAS
Companies & Associations A. Schulman Inc.

GUANGZHOU, CHINA — Materials firm A. Schulman Inc. is in the midst of an expansion that is more than doubling capacity at its compounding plant in Dongguan, China, part of a broader effort to make Asia a much larger portion of global sales.

The Fairlawn, Ohio-based firm added a compounding line for engineering plastics in Dongguan in late 2012, and plans to add one more each for engineering plastics and masterbatches there in the next 18 months.

It's one of a series of investments planned to grow Asian revenues from less than 10 percent of global business to something more balanced with its other major regions, said Derek Bristow, vice president and general manager of Asia Pacific for A. Schulman, in a May 22 interview at the Chinaplas trade show.

"In the next 5 years we would like to quadruple sales in Asia," he said. "We have fairly ambitious growth plans for Asia."

Bristow said the company also is looking at buying other companies or factories: "Obviously we want to grow organically but we are looking seriously at finding acquisitions throughout Asia."

The investments in Dongguan include a 9,000 metric ton compounding line for engineering plastics that started operating in late 2012, and plans for two more lines of 15,000 tons each engineering plastics and masterbatches that will become operational in the next 18 months.

That would bring capacity at the plant from 30,000 tonnes at the start of 2012 to 69,000 tonnes.

"In China we find that the engineering polymers business is doing better than we expected," Bristow said. "China is actually our most profitable business in Asia."

He attributed the success in China partly to the company's links with global manufacturers, and their need for material that meets their specifications at their China factories.

The company in April opened its first factory in India, for manufacturing additive concentrates.

That factory's first production line likely will fill up in six months, and require a second, and the company is also looking at adding compounding capacity for engineering plastics in India in several years, he said.

A. Schulman plans a smaller capacity expansion in Malaysia as well, he said. It also has Asia Pacific factories in Australia and Indonesia.

"Asia Pacific has got a much, much bigger chunk of the investment pie," he said.


Comments

A. Schulman steps up investment in Asia

By Steve Toloken
Staff Reporter / Asia Bureau Chief

Published: May 22, 2013 1:35 pm ET
Updated: May 22, 2013 1:38 pm ET

Post Your Comments


Back to story


More stories

Image

Plastics lead Dow's quarterly growth

October 23, 2014 10:15 am ET

Dow Chemical Co. has announced its third quarter results for 2014 showing a 5 percent increase on the third quarter of 2013, rising to $14.4 billion...    More

Image

A. Schulman reports growth in sales and profit

October 22, 2014 7:58 pm ET

Executives with materials maker A. Schulman Inc. have to be smiling after seeing full results for the firm's 2014 fiscal year.    More

Image

PolyOne takes on LED lighting

October 22, 2014 4:23 pm ET

PolyOne Corp. is making inroads into LED lighting applications with its Therma-Tech-brand material technology.    More

Image

Bergen International adds manufacturing space, extrusion line

October 22, 2014 3:42 pm ET

Chemical foaming agent manufacturer Bergen International LLC recently doubled its manufacturing capacity, added an extrusion line and laboratory...    More

Image

DuPont materials taking more ground in auto, medical, electronics

October 22, 2014 2:41 pm ET

Materials made by DuPont Co. are making inroads with products ranging from auto coolant pipes to circuit breakers to surgical devices.    More

Market Reports

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

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 million dollar plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

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

More Events