Chinese toy maker Sunshine invests $6 million in expansion

By Steve Toloken
Staff Reporter / Asia Bureau Chief

Published: June 14, 2013 3:57 pm ET
Updated: June 14, 2013 4:01 pm ET

Image By: Sunshine Inflatable Toys Co. Ltd. A production line at Sunshine Inflatable Toys Co. Ltd.

Related to this story

Topics Consumer Products, Film & Sheet, Extrusion, China, Toys

Plastic processor Sunshine Inflatable Toys Co. Ltd. is like a lot of smaller Chinese manufacturers these days, staring at sharply rising labor costs and weaker export markets.

But the company is hoping a 36 million Chinese yuan investment in a new factory and capacity expansion, including adding 20,000 metric tons of annual capacity for PVC sheet production, will help it combat that.

The Jiangmen, Guangdong province-based company announced in early May that it more than doubled its size with a new 28,000 square meter factory, part of a strategy to lower costs by vertically integrating into PVC rolls production.

Sunshine is also looking at some new ventures, including expanding its range of inflatable furniture and having its sister company, P&D Plastic Manufacture Co. Ltd., also in Jiangmen, become certified under a global toy industry program for ethical manufacturing.

With its export markets weak and buyers in overseas markets becoming choosier, Sunshine believes that over time only the larger, better-managed factories in China will survive, said Marketing and Development Manager Angel Wong.

"Clients will be more careful in choosing a good reputation, high-quality and low-risk factory," Wong said in an email to Plastics News. "Service-oriented factories like us will account… for more market share and some small factories will be eliminated."

The expansion, which can support more than 1,000 employees, has made Sunshine into one of the largest companies making inflatable products in Guangdong province, the company said. Guangdong is China's hub for manufacturing toys.

Sunshine currently focuses on overseas markets, and together with P&D, the two companies export about $20 million worth of products a year.

But Wong also said the company plans to start manufacturing products targeting the Chinese market under two new brand names: "Bangel" toys, swimming products and other goods for babies and parents, and "Bluestyle," consisting of inflatable water sport, camping and leisure furniture for adults.

"We are sure the domestic market will become more and more important," she said.

Sunshine started operations in 2009, while P&D was founded in 2004. P&D makes PVC and thermoplastic polyurethane inflatable items, including advertising signs and boats, along with some blow molded polyethylene products.

P&D, which shares some of the same ownership with Sunshine, said its customers include global retail giants like Wal-Mart, K-Mart and Tesco, and Disney.

The company said in late April it had received certification under the International Council of Toy Industries CARE program and believes it will help it expand its business in Europe. The program evaluates factories on compliance with fair labor treatment and health and safety standards.

"Achieving ICTI Certification will enable us to gain greater acceptance with famous European customers," P&D said in a statement. "We are confident in our ability to increase penetration and capture more market share in European markets with our strong partners and innovative products."


Comments

Chinese toy maker Sunshine invests $6 million in expansion

By Steve Toloken
Staff Reporter / Asia Bureau Chief

Published: June 14, 2013 3:57 pm ET
Updated: June 14, 2013 4:01 pm ET

Post Your Comments


Back to story


More stories

Image

Brown signs California's plastic bag ban into law

September 30, 2014 1:38 pm ET

Gov. Jerry Brown (D) made it official today: plastic bags are banned across the entire state of California.    More

Image

Teens put a cap on watery ketchup

September 30, 2014 1:57 pm ET

Whether you spell it ketchup or catsup, use it on burgers or fries, or prefer Heinz or Hunt's, there is one universal problem for the ages: That...    More

Image

Amcor planning more growth in Asia

September 30, 2014 10:24 am ET

Flexible packaging firm Amcor Ltd. is rapidly expanding its presence in the Asian market. The company's top official in the region said it will soon...    More

Image

Uflex to build large flexible packaging plant in western India

September 30, 2014 10:01 am ET

Flexible packaging company Uflex Ltd. is planning a major new plant in the western Indian state of Gujarat.    More

Image

Malaysia's Scientex investing in PE, BOPP film capacity

September 30, 2014 9:51 am ET

Flexible packaging manufacturer Scientex Bhd, based in Malaysia, is planning investment of 300 million Malaysia ringgits ($91.4 million) over three ye...    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