Shandong Dawn expands in automotive

By Steve Toloken
Staff Reporter / Asia Bureau Chief

Published: October 28, 2013 3:43 pm ET
Updated: October 28, 2013 3:47 pm ET

Related to this story

Topics Automotive, Materials Suppliers, K 2013, Business News & Features

DÜSSELDORF, GERMANY — Chinese compounder Shandong Dawn Polymer Co. Ltd. is in the midst of a large expansion to meet additional demand in China, particularly in the automotive industry.

Dawn, based in Longkou, has set up a compounding joint venture in Shanghai with Korea Petrochemical Industrial Co. Ltd. and added capacity for thermoplastic vulcanizates and color masterbatch, the latter by purchasing a smaller Chinese firm.

In an interview at the K show in Düsseldorf, Dawn import and export director Derek Zhang said the company, which has annual revenues of about 8.4 billion Chinese yuan (US$1.37 billion), is continuing to see solid growth, in contrast to the general slowdown in the overall Chinese economy.

"We are different: We are growing smoothly,'' Zhang said. "This year we are growing 30 percent in turnover.''

He said the increasing demand for quality in China's automotive market is a big reason for the growth, with Dawn having customers among local Chinese automakers and the foreign-Chinese joint ventures.

"A Chinese-brand car is more and more acceptable to people,'' he said. "It's easier and easier for the Chinese compounder to supply materials.''

At K, the company introduced an injection molding grade of thermoplastic vulcanizates, and said it sees potential in markets like medical. Customers have been asking for injection molding grades since 2007, Zhang said.

"This just came out of the laboratory,'' he said.

The company claims to be China's largest compounder of TPV, and the third-largest in the world. It's adding two European-made compounding lines to give it an additional 10,000 metric tons of TPV capacity by the end of the year, on top of the 20,000 tonnes it currently has.

It has capacity for about 100,000 metric tons of plastic compounds and will add up to 50,000 tonnes with the new Shanghai plant, which began operating in September, Zhang said. As well, the company added a color masterbatch facility in Qingdao by buying a smaller local compounder earlier this year, he said.

The new Qingdao plant has more than 10,000 tonnes of capacity.

Overall, the company has 2,300 employees and more than 30 extrusion lines. It also has a resin trading business, but more than two-thirds of its revenues come from producing and compounding plastic materials, and most of its sales are in China, the company said.


Comments

Shandong Dawn expands in automotive

By Steve Toloken
Staff Reporter / Asia Bureau Chief

Published: October 28, 2013 3:43 pm ET
Updated: October 28, 2013 3:47 pm ET

Post Your Comments


Back to story


More stories

Image

Akro-Plastic buying German subsidiary from Metabolix

October 24, 2014 3:32 pm ET

Akro-Plastic GmbH, a Niederzissen, Germany-based plastic compounder, has purchased the assets of Metabolix Inc.'s subsidiary in Germany.    More

Image

SRG opens second China auto parts factory

October 24, 2014 11:25 am ET

U.S. automotive supplier SRG Global Inc. said Oct. 23 it is opening its second plant in China, an injection molding, plating and painting facility in ...    More

Image

BASF pre-tax earnings rise, but will miss financial targets for 2015

October 24, 2014 10:16 am ET

BASF SE has raised its expectations for pre-tax earnings in 2014 but warned that it would not hit its financial targets for next year.    More

Image

Sabic, Shell cancel expansion for SADAF joint venture in Saudi Arabia

October 24, 2014 9:19 am ET

Saudi Basic Industries Corp. and Royal Dutch Shell have cancelled plans to expand an existing petrochemical joint venture in Saudi Arabia following...    More

Image

Sadara CEO says Middle East now has 20 percent of global ethylene capacity

October 24, 2014 9:33 am ET

Sadara CEO Ziad Al-Labban claims that the Middle East's ethylene capacity is now 20 percent of global production.    More

Market Reports

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

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 analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

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

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