Promens to make major investments in China, Asia

By Steve Toloken
Staff Reporter / Asia Bureau Chief

Published: December 13, 2013 11:02 am ET
Updated: December 13, 2013 11:06 am ET

Image By: Promens hf A factory worker at the first Promens plant in China works on a tool for a rotationally molded product.

Related to this story

Topics Rotomolding, China, Rotational molds

Plastics processor Promens hf is speeding up its expansion into China and launching a broader push into Asia that will see it set up several factories there in the next few years, the company’s top executive in the region said.

The Kópavogur, Iceland-based company dedicated its first China factory on Nov. 30 and will be doubling its manufacturing space there next year, two years ahead of its initial plans, to meet growing demand, said Promens Asia Managing Director Bjarki Gardarsson.

The previously undisclosed Asian expansion is part of a broad push Promens is making in emerging economies including China, India, Russia, South America and Turkey, as it wants to broaden beyond its mainly European manufacturing platform now, Gardarsson said in a Dec. 10 telephone interview with Plastics News.

The company has 43 factories worldwide, but only two in Asia, at the newly opened facility in Taicang, Jiangsu province, and in Ahmedabad, India.

It plans to set up at least three more factories in China, and two elsewhere in Asia, in the next several years, he said.

“We are really expecting to see a strong footprint of Promens in Asia,” Gardarsson said. “I would expect to see us in several locations in China and Asia in coming years.”

Promens employs 3,800 and said it is the world’s largest rotational molder, as well as using other manufacturing processes like injection molding and blow molding.

It said it expects sales this year of 600 million euros ($826.0 million), and last month announced plans for an initial public offering to fund further growth, including in South America and Asia.

Setting up the facility in China has opened doors, Gardarsson said, because its global customer base in industries like automotive and packaging is increasingly looking for suppliers worldwide.

“Now that we have a facility [in China] and can look customers in the eye and promise delivery times and production, we are seeing strong interest from our customers,” he said.

Promens first announced the China facility in April, and at the time planned to double it within three years. But it will double the Taicang factory’s manufacturing footprint to 5,000 square meters within one year, or two years faster than its initial plans, Gardarsson said.

He said the company plans to invest another 6 million to 10 million euros in Taicang in those two years. It could add about one rotomolding machine a year for the next half-decade, and will likely add 10 molding machines and 60 employees in Taicang in the next three years, he said.

Taicang opened last month as a 3 million euro investment with 20 employees. It will initially manufacture insulated tubs for the food industry, but will expand into automotive, medical and personal care sectors.

It plans to add automotive business there in early 2014 and add capabilities for injection and blow molding by the end of next year, he said.

“The new Promens production facility in Taicang represents a very large step in our strategy to leverage our strong customer relationships in rapidly growing economies, where plastics will play an important role in optimizing supply chains, increase food safety and meet the needs of a growing middle class,” said CEO Jakob Sigurdsson, in a statement.


Comments

Promens to make major investments in China, Asia

By Steve Toloken
Staff Reporter / Asia Bureau Chief

Published: December 13, 2013 11:02 am ET
Updated: December 13, 2013 11:06 am ET

Post Your Comments


Back to story


More stories

Image

New Georg Fischer piping site gets 'Tanked'

August 1, 2014 1:21 pm ET

A huge aquarium under construction at a new California facility for Georg Fischer will help educate, and will be on an episode of Animal Planet's...    More

Image

Keep up with China's rapid changes

July 31, 2014 10:33 am ET

In many ways, 1989 was a very special year in history. Plastics News was launched in Akron. Half a world away, China was trying to carry on economic...    More

Image

Plastics News Now: PVC pipe used to help repel sharks from beaches

July 31, 2014 6:00 am ET

Also, we visit Nicolet Plastics which is using a unique employee structure, and Washington D.C. bans polystyrene.    More

Image

Pressure is on to replace aging gas pipes

July 30, 2014 2:47 pm ET

Polyethylene is the plastic replacement material of choice for modernizing the natural gas distribution system — so much so some are concerned...    More

Image

Vinyl siding's lead slips, but industry pushing back

July 29, 2014 2:04 pm ET

Vinyl siding continues to be the top cladding choice for home builders and remodelers but fiber cement is gaining ground — at an alarming rate t...    More

Market Reports

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

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

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