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 Machinery, Latin America

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

Audacious vandal stuns Taipei Plas

September 29, 2014 4:59 pm ET

Melodrama erupted at the traditionally tranquil Taipei Plas trade show on Sept. 28 when a mysterious intruder flung red paint at the Baumüller...    More

Image

Shini pushes into western China

September 29, 2014 4:28 pm ET

Despite intellectual-property brigands, Taiwan's Shini Plastics Technologies Inc. is zestfully pursuing the enormous Chinese market for plastics...    More

Image

India changes its mind, again: PlastIndia will be in Gujarat

September 27, 2014 1:37 pm ET

TAIPEI, TAIWAN — Less than five months before the opening of India's largest plastics show, PlastIndia, its organizers have decided —...    More

Image

Global giant Foxconn to make, sell molding machines

September 26, 2014 2:48 pm ET

For years, Taiwan's Foxconn Technology Group has been the world's largest contract manufacturer for electronics, with more than 1 million employees...    More

Plastics Machinery Group now offering injection presses

September 26, 2014 10:46 am ET

Solon, Ohio-based Plastics Machinery Group is expanding its machinery offerings by adding injection molding machines to its inventory and adding a ded...    More

Market Reports

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 industry analysis highlights macro industry trends and micro trends faced by companies that do business in Mexico. The report also provides key industry statistics and forecasts to anticipate future industry expansion.

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

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

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