Chinese pipe maker Foshan Rifeng in large expansion

By Steve Toloken
Staff Reporter / Asia Bureau Chief

Published: June 13, 2013 12:13 pm ET
Updated: June 13, 2013 12:26 pm ET

Image By: Steve Toloken, Plastics News Li Baiqian, vice general manager of Foshan Rifeng Enterprises Co. Ltd.

Related to this story

Topics China, Construction, Extrusion, Pipe/Profile/Tubing

CHENGDU, CHINA — Chinese pipe maker Foshan Rifeng Enterprises Co. Ltd. is investing 1 billion Chinese yuan ($161 million) in a new factory in Tianjin to expand its geographic reach in northern China and take advantage of what it says is rapidly growing business in China's domestic market.

The company, based in Foshan, Guangdong province in southern China, has started construction on the Tianjin plant and will open it with between 40 and 50 extrusion lines, said Li Baiqian, vice general manager, in an interview at the recent China Plastics Piping Association annual conference.

Li said the company's business in China has been growing strongly — sales up more than 10 percent in 2012, and its growth rate significantly accelerating in the first half of this year.

Rifeng says it's been able to take advantage of consolidation in China's pipe market, as rising costs and other economic challenges are squeezing smaller companies and helping larger, better capitalized firms that can more easily improve their quality and cost position.

"In China there are thousands of pipe companies, but after a couple of years of development, the high-quality companies, those that are much bigger, are winning market share," he said.

The company, which has all of its current factories at several campuses in Foshan, makes multilayer aluminum-polyethylene-aluminum pipe, along with PPR, PEX, PE-RT and PVC pipe, with some of its main markets in water supply and heating systems.

It claims to be China's first company to make multilayer pipe, in 1996.

While Li said the China market is strong for Rifeng, with 2012 sales in plastic pipes of 2.25 billion yuan ($363 million), exports have been flat at about 250 million Chinese yuan ($40 million) for the last two years.

China's rising labor costs and its strengthening currency are hurting Rifeng's export competiveness, Li said.

Still, it's making some pushes into overseas markets, exhibiting recently at trade shows in Mexico and Poland. It said in a statement on its website that the Mexican market has been strong, although globally, export sales remain below the 2008 level of about $50 million, Li said.

He said Rifeng's growth in China is beating the market. Last year, the pipe market grew 10 percent, although that was a significant slowdown from recent years as weaker spending on infrastructure and real estate softened demand, according to CPPA figures released at its annual conference, held June 6-7 in Chengdu, Sichuan province.


Comments

Chinese pipe maker Foshan Rifeng in large expansion

By Steve Toloken
Staff Reporter / Asia Bureau Chief

Published: June 13, 2013 12:13 pm ET
Updated: June 13, 2013 12:26 pm ET

Post Your Comments


Back to story


More stories

Image

Judge limits scope of jury verdict against JM Eagle

December 19, 2014 2:30 pm ET

A federal judge in Los Angeles said Dec. 18 that last year's jury verdict issued against J-M Manufacturing Co. — now JM Eagle — for...    More

Image

Soy-based foam improves window performance, sustainability

December 18, 2014 12:51 pm ET

Launched in April 2013, Madison, Wis.-based WFI Global LLC is making a name in the fenestration market with what it says is a distinct product...    More

Image

Bayer launches PC sheet production in Guangzhou, China

December 17, 2014 6:00 am ET

Bayer MaterialScience (BMS) has started its new polycarbonate sheet production plant at its Guangzhou, China, site.    More

Image

Shipping slowdowns add to season's stress

December 16, 2014 4:02 pm ET

Toy companies know what they want for Christmas: an end to crippling shipping delays at West Coast ports.    More

Image

Ecolean expanding flexible packaging production in China

December 16, 2014 3:07 pm ET

Flexible packaging maker Ecolean AB is opening a new factory and warehouse in China to increase production.    More

Market Reports

Flexible Packaging Trends in North America

Our latest RESEARCH report examines trends in FLEXIBLE PACKAGING impacting the North American market including a review of economic conditions, key drivers of growth, materials pricing, M&A activity, sustainability challenges and the outlook for 2015.

Learn more

Plastics in Brazil - State of the Industry Report

This in-depth report examines the Brazilian plastics industry from a historical and geographical context. Our analysts provide insight on economic trends and forecasts, growing manufacturing sectors that utilize plastics, private investment opportunities, market environment challenges, and innovations in R&D.

Data tables and charts on producer prices, trade, plastics production and end market indicators is also included.

Learn more

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

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

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events