Demand for automation in China pushes Forwell to new factory, IPO

By Steve Toloken
News Editor / International

Published: December 20, 2013 8:50 am ET
Updated: December 20, 2013 8:51 am ET

Related to this story

Topics Machinery, Asia

MUMBAI, INDIA — China’s rapidly rising labor costs are proving to be an opportunity for some — Taiwanese plastics equipment maker Forwell Precision Machinery Co. Ltd. is building a new factory and looking at an initial public offering to tap what it says is growing demand for more automated mold equipment.

The company is investing US $10 million in a new 36,000 square meter manufacturing and research facility in Huai’an, Jiangsu province, which it expects to open in mid-2014, and plans to follow that with a stock offering to raise money for additional expansion.

“Because the labor costs are going up [in China], factories have to go for more advanced systems for the future,” said Victor Lim, Forwell’s acting general manager, in a Dec. 13 interview at the Plastivision trade show in Mumbai.

The company makes equipment for automating mold changes, and plans for the new China factory to focus on developing more automated mold storage and repair systems for the China market, Lim said. It has factories in Changhua, Taiwan, and Ningbo, China, and employs a total of 160 in the two facilities.

The demand for more automation led to Forwell sales globally rising about 10 percent in 2012, with projections that it will be close to the 15 percent target it’s set for this year, said Lim.

The slowdown in the growth rate in mainland China has hurt business, he said, although market conditions are improving in the current quarter.

It’s not been decided how much money the company would plan to raise in the IPO, which is likely to be on a stock exchange in China, Lim said. The listing would happen after the new factory opens and the company has stabilized operations there, he said.

The Huai’an factory will employ about 200 people. About 60 percent of Forwell sales are in the plastics injection molding area, with the remainder in metal forming, but the plastic part of its business is growing faster, Lim said.

Its new mainland China factory will focus on the domestic China market, while its Taiwan operation handles that market and global exports, he said.


Comments

Demand for automation in China pushes Forwell to new factory, IPO

By Steve Toloken
News Editor / International

Published: December 20, 2013 8:50 am ET
Updated: December 20, 2013 8:51 am ET

Post Your Comments


Back to story


More stories

Image

Huntsman closing four pigment plants

March 5, 2015 3:36 pm ET

Huntsman Corp. is closing four plants — three in the U.S. and one in Germany — that make pigments for plastics and other markets.    More

Image

Best Places To Work: No. 7, CMD Corp.

March 4, 2015 12:27 pm ET

There's a lot of innovating going on at the No. 7 company on Plastics News' Best Places to Work ranking.    More

Image

India's plastic processing industry needs 3 million skilled workers by 2020

March 4, 2015 1:30 pm ET

A trained workforce is shaping up to be a major challenge for the Indian plastics industry, which needs 2 million to 3 million more staff by 2020 to...    More

Image

West Coast ports dispute impacts machinery imports

February 27, 2015 5:00 pm ET

Asian machinery companies got caught in the West Coast ports labor dispute — causing some headaches to get equipment ready for NPE 2015.    More

Image

Wittmann, Illig among machinery firms boosting investments in India

February 27, 2015 1:34 pm ET

GANDHINAGAR, INDIA — Expected growth in the Indian plastics market is leading several global machinery firms to make investments there, includin...    More

Market Reports

Flexible Packaging Trends in North America

North America represents about 30 percent of the global consumption of flexible packaging. Annual growth in this region is forecast at 4 percent during the next 5 years.

For more insight on growth opportunities, drivers of growth and the outlook for 2015, download this report.

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

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion 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

Upcoming Plastics News Events

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events