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

Startup post-consumer recycling specialty company Zzyzx wins grant

September 2, 2014 1:33 pm ET

An Allentown, Pa., company is receiving a grant of $737,000 to help support its efforts to develop polymers using post-consumer plastics.    More

Image

A. Schulman buys Australia's Compco, 10th acquisition in 4 years

September 2, 2014 11:13 am ET

Akron, Ohio-based A. Schulman Inc., a supplier of high-performance plastic compounds and resins, said it has acquired a company near Melbourne,...    More

Image

EPA fines RI polymer company

August 29, 2014 1:20 pm ET

A Rhode Island polymer manufacturer has reached a $60,000 settlement with the U.S. Environmental Protection Agency (EPA) for violating federal clean...    More

Image

Chinese compounders seek market shares, often at the expense of margins

August 29, 2014 10:02 am ET

China's largest compounder, Kingfa Sci. & Tech. Co. Ltd., as well as its more automotive-focused counterparts Shanghai Pret Composites Co. Ltd. and...    More

Polish injection molder Teknorubber up for sale

August 29, 2014 9:14 am ET

Polish plastic parts maker Teknorubber has been put up for sale following its insolvency filing in March 2014. The company is to be auctioned through ...    More

Market Reports

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report analyzes economic and market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as growth strategies being implemented by thermoformed packaging companies.

Learn more

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

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