China's Chen Hsong opening sales and parts facility in Brazil

Bob Moser
PLASTICS NEWS

Published: May 23, 2013 3:57 pm ET
Updated: May 23, 2013 3:59 pm ET

Related to this story

Topics Latin America Machinery
Companies & Associations

SÃO PAULO, BRAZIL — Injection molding machine manufacturer Chen Hsong has targeted Brazil for its first branch outside of China, opening a sales office and parts facility within the next month, and offering clients in-house financing with rates lower than most Brazilian banks, the company's commercial manager for South America said at Feiplastic in São Paulo.

The 1,200-square-meter stock facility and a support and sales office will be based in São Paulo state with an initial staff of 10, and serve customers in Brazil and the rest of South America. It is a direct reaction to leading Chinese competitor Haitian's strength in export sales in recent years, said Luis Guerra, commercial manager.

Haitian is the No. 1 Chinese supplier of injection molding machines, with Chen Hsong ranking second at home, down from the market leader position it held roughly a decade ago. Chen Hsong recognized the success its competition has had overseas, and felt South America was a market ripe with long-term growth potential, Guerra said.

"We currently rank outside the top 10 in Brazil, but we want to be No. 2 in sales here within the next five years," he said. "For that we must be aggressive, needing to increase our sales 10 times. But we can do it."

Part of that strategy involves Chen Hsong supporting clients with 24 to 36 months of purchase financing by the company, "with very low interest rates, far better than Brazilian banks," Guerra said. The company will also work with small state banks in Brazil and certain state governments that are offering low-interest loan programs for industrial equipment, and don't discriminate against foreign-made machinery.

The company will continue to assemble its machinery in Hong Kong, limiting the Brazilian warehouse to storage of spare parts and 25 to 50 machines. Assembly within Brazil was considered, but even after import taxes are applied the cost of a machine from Asia is still 20 percent less than if Chen Hsong assembled in Brazil, due mainly to higher labor costs and a myriad of domestic taxes, Guerra said

Chen Hsong is established in the Brazilian market, with more than 1,000 machines installed, mostly in the automotive and household goods sectors. The company was nearing 20 new machines sold at Feiplastic as of Thursday.


Comments

China's Chen Hsong opening sales and parts facility in Brazil

Bob Moser
PLASTICS NEWS

Published: May 23, 2013 3:57 pm ET
Updated: May 23, 2013 3:59 pm ET

Post Your Comments


Back to story


More stories

Image

Milacron restructuring Uniloy manufacturing in Europe

April 17, 2015 2:16 pm ET

Milacron LLC plans to consolidate manufacturing of Uniloy blow molding equipment in Europe into its new facility in the Czech Republic city of...    More

Image

Reifenhäuser acquires German spinneret company Enka Tecnica

April 17, 2015 9:31 am ET

Germany-based Reifenhäuser GmbH & Co. KG, a major manufacturer of extrusion equipment, has announced that it is acquiring Enka Tecnica GmbH, a German ...    More

Image

Madison buys Ferry Industries

April 16, 2015 5:22 pm ET

Ferry Industries, the largest manufacturer of rotational molding machinery, was purchased by Madison Industries, a Chicago holding company that is...    More

Image

GN Thermoforming changes management following founder's arrest

April 15, 2015 4:47 pm ET

GN Thermoforming Equipment officials say Georg Nemeskeri has stepped away from active involvement with the company he founded 34 years ago and a...    More

Image

Uway beginning US extruder production June 1 in Ohio

April 15, 2015 3:28 pm ET

Uway Extrusion LLC, a 4-year-old company that builds extruders in China using components from the United States and Europe, will begin U.S. production...    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

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

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

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 15, 2015 - September 17, 2015Plastics Caps & Closures - September 2015

More Events