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

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

Arburg expands facility in the Czech Republic

August 1, 2014 8:56 am ET

Germany-based machinery company, Arburg, has extended its subsidiary in Czech Republic.    More

Image

New technology molds plastic with consumable liquid

July 31, 2014 9:40 am ET

A new blow molding and filling technology called LiquiForm has been announced that uses pressurized consumable liquid instead of compressed air to...    More

Buyer plans to sell former Hoover molding, assembly plants

July 31, 2014 2:06 pm ET

A former Hoover manufacturing plant with 150 injection machines in El Paso, Texas, and a nearby maquiladora plant in Juarez, Mexico, changed owners...    More

Image

North American robot sales set record

July 30, 2014 4:46 pm ET

The North American robotics sector is off to its fastest start ever, shattering last year's first-half record, with a first-half 2014 of 14,135...    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 co...    More

Market Reports

Pipe, Profile & Tubing Extrusion in North America 2014

U.S. demand for extruded plastics is expected to grow by 3 percent in 2014, with PVC remaining the largest segment.

Plastic pipe will post the strongest gains through 2018, continuing to take market share from competing materials in a range of markets.

Our latest market report provides in-depth analysis of current trends and their financial impact on the pipe, profile and tubing extrusion industry in North America.

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