Still independent, Avian plans for growth in China and North America

Rebecca Kanthor
PLASTICS NEWS CHINA

Published: July 11, 2013 2:02 pm ET
Updated: July 11, 2013 2:07 pm ET

Image By: Avian Machinery Mark Miao, general manager of Avian (Shanghai) Machinery Co. Ltd.

Related to this story

Topics Sustainability, China, Machinery, CHINAPLAS
Companies & Associations Conair Group Inc.

Avian (Shanghai) Machinery Co. Ltd., a manufacturer of plastic granulating equipment, is nearing completion of a new plant in Shanghai and planning for growth in North America.

Mark Miao, the company's general manager, spoke to Plastics News about Avian's strategy and plans for the future at the recent Chinaplas show in Guangzhou.

The company has spent three years building its second plant, which is located behind its main plant in Shanghai. The new facility will open by the end of August or beginning of September, he said.

The original plant is 25,000 square meters and the new one will be slightly bigger, at 28,000 square meters. The plant's completion was delayed by a year due to a change in the building design, Miao said.

The company has land for a third plant near the two Shanghai plants, and Miao predicts Avian will put that land to use within 5 years.

Sales to U.S. customers are on the rise, but European orders are down, Miao said. China is still a very strong market, he said.

Last year the company produced 1,200 units overall and that number will more than double by next year, when the company plans to produce 3,000 units, he said. Currently the company's biggest markets are overseas, taking 60 percent of Avian's business. But Miao says he wants to strengthen the Chinese market and balance out the import and export ratio.

"If we can drop the price, Avian will have more customers," he said. But he later added: "I don't think price is a big problem. When a country develops [economically], the prices will increase and increase. This is normal. I think for the company you have to think of a way to make your product more high quality and more automatic and then you can cover the cost."

Avian's distribution and service center in Chicago, set up in 2010, has been doing well, Miao said. "We cooperate with many good companies," he said. "Every year we're increasing sales. This year we'll go over $10 million [in sales], I'm sure."

Looking to the future, Miao revealed that Avian will be expanding its manufacturing to the United States in the near future.

"Avian will still keep China manufacturing and will open a manufacturing plant in the U.S. to support North and South America," he said. "We'll try to produce all [of our] models in the U.S." He gave no other specifics.

Avian was founded in 1982 in Australia and in 1997 the firm transferred production to China. In 2009, the company said it was being purchased by Bredaryd, Sweden-based Rapid Granulator AB, part of IPEG Inc., a global auxiliary equipment company based in the Pittsburgh suburb of Cranberry Township.

But the deal with IPEG and Rapid later fell through — a development that Avian, Rapid and IPEG never announced. Today Miao describes the companies' relationship as a good business partnership.

IPEG CEO Chris Keller gave this statement on the situation: "The acquisition announced in June 2009 did not close. While there is no formal relationship between the parties today, there is a mutual respect for one another."

Big iron at Chinaplas

At the show, Miao showed off what he called the T-rex, which the company billed as the largest shredder in the world. The machine attracted a lot of attention from show visitors. Miao said it offers high capacity and energy savings.

"We already sold one," he said on the second day of the show, and another T-rex was sold by the end of the show.

"We make this so big recycling customers can save space, save energy, [and] save labor costs," Miao said. "One machine has huge capacity. We think there will be very big market for that."

Miao was bullish on his company's outlook. "We feel the recycling market is still strong in China," he said.


Comments

Still independent, Avian plans for growth in China and North America

Rebecca Kanthor
PLASTICS NEWS CHINA

Published: July 11, 2013 2:02 pm ET
Updated: July 11, 2013 2:07 pm ET

Post Your Comments


Back to story


More stories

Image

DuPont-Chenguang JV to produce fluoroelastomers in China

January 29, 2015 12:30 pm ET

DuPont Fluoropolymer Solutions and Zhonghao Chenguang Chemical Research Institute Co. Ltd. are proceeding with a 50-50 joint venture to serve the...    More

Image

China XD to catch up on Sichuan project

January 28, 2015 2:41 pm ET

Automotive compounder China XD Plastics Co. Ltd. (Nasdaq: CXDC) has been working on its fourth production base in Nanchong, Sichuan province since...    More

Image

Plastics help Volt hit new target

January 28, 2015 1:54 pm ET

The 2016 Volt, unveiled at the North American International Auto Show in Detroit in January, features a sportier exterior design — GM calls it...    More

Image

Piovan buys majority stake in Italy's Penta

January 28, 2015 12:04 pm ET

Italian auxiliary equipment company Piovan SpA has acquired a majority stake in the Italian materials handling company Penta srl, based in Poggio...    More

Image

FPI joins curbside recycling group

January 28, 2015 11:47 am ET

Foodservice Packaging Institute is joining the board of the Curbside Value Partnership, a non-profit group that works to improve curbside recycling in...    More

Market Reports

Plastics in Automotive: Innovation & Emerging Trends

This special report newly released by PN and sponsored by The Conair Group examines current trends in the use of plastics in automotive, materials innovations and the changing landscape. It includes a review of legislative/regulatory activity impacting vehicle development and lightweighting, market opportunities & challenges for mold and toolmakers, innovative design strategies being implemented by major OEMs and suppliers, as well as a review of key indicators in Canada, Mexico, Brazil and China.

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

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

Upcoming Plastics News Events

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