Granulator maker Avian opening US factory in Chicago

Rebecca Kanthor
PLASTICS NEWS CORRESPONDENT

Published: March 14, 2014 1:47 pm ET
Updated: March 17, 2014 5:18 pm ET

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

Related to this story

Topics Sustainability, Pipe/Profile/Tubing, Recycling, United States, China

SHANGHAI — Granulating equipment manufacturer Avian Group will open a factory in Chicago this year, and plans to move its headquarters there in the near future.

After a year of preparations, Avian bought the factory in January and the 60,000-square-foot plant will go into operation in July or August, said Mark Miao, general manager of Avian (Shanghai) Machinery Co. Ltd. and president of Avian Group.

The 5-year-old facility in Chicago’s Manufacturing Zone had been used for storage. Miao called the building “near new,” and he declined to disclose the cost of the investment.

The factory will make granulators, shredders and pulverizers for customers in North and South America. The factory will soon be hiring many American workers, Miao added, although he did not specify an exact number.

He wants to ramp up production quickly.

“This is my dream,” he said. “I want [the factory to be] the same size as [Avian’s factory in] China in the future.”

Within three years, he hopes to reach a capacity of 200 units per year.

Avian already has factories in Shanghai and Australia. Miao said that opening the Chicago plant is a strategic move.

“We think North and South America will be one of the stronger markets for Avian in the near future,” he said. “We want to bring good service and high quality for this market and good cost for this market,” he said.

“Also, the cost of labor in China is getting more expensive,” he added. U.S. manufacturing will help the company save money, Miao said.

“[Because of] the labor and the oil… the [transportation] cost is going up every month [and] every year,” he said. “I think many companies will go to the U.S. in the future,” he said. “The costing is always stable, not like China always changing quickly. This is good for manufacturing. This area is also good to find good technicians if you make a good quality machine.”

 Miao declined to give a time frame for moving Avian’s headquarters to Chicago.

“If we move over there, we can find very good R&D people,” he said, adding, “it is easier to manage there [in the United States].”

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, which is part of IPEG Inc., a global auxiliary equipment company based in the Pittsburgh suburb of Cranberry Township. But that deal fell through.

Meanwhile, Avian also announced product news: At Chinaplas, the company will introduce its second-generation model super heavy pipe shredder.

After two years in development, production on the line started early this year. The machine can handle pipe up to 118 inches in diameter. The line doubles output and cuts energy cost by 30 percent compared to Avian’s first-generation pipe shredder.

“Customers are looking for energy saving and big capacity,” Miao said.

A machine this large became necessary because the market is changing.

“The industry is getting bigger. More people are interested in making pipe,” he said. “Before, it was small pipe. Now everyone wants to make big pipe because the market needs them.”

Avian has built two large pipe shredders for a China subsidiary of JM Eagle that is making a major transmission line to bring drinking water from southern China to areas in northern China.

Avian delivered two shredders to Quanen Eagle High-Tech Piping Co. Ltd., according to Andy Gu, vice president of operations at the machinery maker’s North American operation, Avian (USA) Machinery LLC in Naperville, Ill. Avian USA put together the deal working with officials at JM Eagle’s Los Angeles headquarters. The shredders are at the China pipe plant in Langfang, Gu said.

“It’s a huge project,” Gu said.

One shredder handles scrap PVC pipe and the other high density polyethylene pipe. Both shredders can handle pipe lengths up to 26 feet long. A large hydraulic ram pushes the pipe through the machine.

The larger machine, the PASG-2000, can grind up HDPE pipe with a diameter of up to 6.5 feet. First the pipe goes through a shredder to reduce it to chunks that are about two or three inches in size, Gu said. Then the chunks go through a granulator, and the material can go into an extrusion line.

Avian claims the PASG-2000 is the largest high-capacity heavy duty shredder in the world.

The other shredder, the PASG-1600, is for PVC pipe up to 5 feet in diameter. The pipe goes through a shredder, then a granulator, followed by a pulverizer to turn the PVC into powder. The powder is then conveyed to a silo.

Plastics News senior reporter Bill Bregar contributed to this report.


Comments

Granulator maker Avian opening US factory in Chicago

Rebecca Kanthor
PLASTICS NEWS CORRESPONDENT

Published: March 14, 2014 1:47 pm ET
Updated: March 17, 2014 5:18 pm ET

Post Your Comments


Back to story


More stories

Image

Recycling trade group growing in size, resources

February 27, 2015 4:50 pm ET

DALLAS — The executive director of the Association of Postconsumer Plastic Recyclers is partial to calling his group the little engine that...    More

Image

German molder picks North Carolina for US manufacturing plant

February 26, 2015 4:21 pm ET

UPDATED — German medical goods company Raumedic AG has chosen Mills River, N.C., for its first U.S. manufacturing site and U.S. headquarters.    More

Image

Silicone baby teether company working with Massachusetts recycler

February 26, 2015 1:14 pm ET

A recycling company and a startup will try to keep silicone baby products out of landfill.    More

Image

Plastic Omnium makes China investment push

February 26, 2015 4:35 pm ET

Three of the six new plants that automotive molder Plastic Omnium SA plans this year will be in China, part of a broader push it’s making in...    More

Image

Price and sustainability both key to success for carpet recycler

February 26, 2015 1:28 pm ET

DALLAS — A green message will get you in the door, but ultimately that sustainability message has to be backed up with quality at the right pric...    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