Milacron to double capacity in China, add extrusion, blow molding

By Steve Toloken
News Editor / International

Published: April 25, 2014 1:20 pm ET
Updated: April 25, 2014 1:23 pm ET

Image By: Milacron Tom Goeke

Related to this story

Topics Machinery, China, CHINAPLAS
Companies & Associations Milacron LLC

SHANGHAI — Milacron LLC is doubling the capacity of its China factory, both to expand its production of injection molding machines and begin manufacturing extrusion and blow molding equipment there.

The Cincinnati-based company disclosed details of the investment at the Chinaplas trade fair, held April 23-26 in Shanghai, and company executives said it was part of a move to expand production in both India and China to be more competitive in developing Asian markets.

“The first phase is to build new capacity for our all electrics,” said Milacron President and CEO Tom Goeke, in an interview at the show. “The second is to start utilizing the capacity as well to build some of the other designs that we manufacture in the U.S. and India and Europe, here.”

The investment of between $4 million and $5 million in its Milacron Plastics Machinery (Jiangyin) Co. Ltd. subsidiary in Jiangyin, Jiangsu province, will open in July, and aims to tap more heavily into growth in China, Milacron said.

“We’re building machines in other parts of the world where for the local market here we’re non-competitive,” Goeke said. “We’ll be bringing technology from other regions and manufacturing to be cost effective in the local market.”

The expansion will more than double production capacity to about 950 injection molding machines a year, the company said in a statement.

Milacron has been building its all-electric Elektron series of injection presses there since 2009, and will begin adding production for hybrid injection presses, extruders and, in the longer-term, blow molding equipment, said Gerold Schley, managing director of the company’s Ferromatik Milacron GmbH subsidiary in Malterdingen, Germany, and vice president of China operations for Milacron.

The company is also in the midst of a $10 million expansion of its Ferromatik Milacron India Pvt. Ltd. facility in Ahmedabad that is doubling capacity there.

The Jiangyin investment will expand the range of its Elektron machines there. It added a 30 metric ton press last year and, in the third quarter of this year, will be able to manufacture Elektrons with up to 650 tonnes clamping force.

Servo-driven versions of its hydraulic Maxima series are also being manufactured there now, the company said.

It will also begin exporting the Elektron series to the Americas from Jiangyin this year, after exporting them to Europe starting in 2010, said Toni Bernards, general manager of the Jiangyin subsidiary.

The growth of Jiangyin’s business, though, is being primarily driven by the local Chinese market, which accounts for about 80 percent of sales, Schley said.

“The major focus for us is the Chinese customers, Chinese-owned companies,” he said. “The main focus for us and why we spent the major investment is the China market.”

Bernards said the growth of the all-electric machine market in China is a major reason for the expansion and the company wants to expand its very small market share there from a single-digit percentage to more than 10 percent.

Milacron said in the statement that it could enlarge capacity at the current site to 1,500 machines a year. It said it will deliver its first Jiangyin-built extrusion line in August.

The company also earlier this year bought out the small remaining stake of its local joint venture partner in Jiangyin, a company called Jiangnan Mould & Plastic Technology Co. Ltd., , and owns 100 percent of the factory, Schley said.


Comments

Milacron to double capacity in China, add extrusion, blow molding

By Steve Toloken
News Editor / International

Published: April 25, 2014 1:20 pm ET
Updated: April 25, 2014 1:23 pm ET

Post Your Comments


Back to story


More stories

Image

Yizumi's stock price shoots up

January 30, 2015 11:56 am ET

Chinese injection press maker Guangdong Yizumi Precision Machinery Co. Ltd. has seen its stock price more than double in the first five trading days...    More

Image

US loses top investment destination spot to China

January 30, 2015 11:14 am ET

China has overtaken the United States as the leading global destination for foreign direct investment, according to a new report.    More

Image

China to lead the way on robots

January 30, 2015 11:12 am ET

More industrial robots will be operating in China’s production plants than in the European Union or North America by 2017.    More

Image

DuPont-Chenguang JV to produce fluoroelastomers in China

January 29, 2015 12:30 pm ET

DuPont Fluoropolymer Solutions and Zhonghao Chenguang Chemical Research Institute Co. Ltd. are proceeding with a 50-50 joint venture to serve the...    More

Image

China XD to catch up on Sichuan project

January 28, 2015 2:41 pm ET

Automotive compounder China XD Plastics Co. Ltd. (Nasdaq: CXDC) has been working on its fourth production base in Nanchong, Sichuan province since 201...    More

Market Reports

Plastics in Automotive: Innovation & Emerging Trends

This special report newly released by PN and sponsored by The Conair Group examines current trends in the use of plastics in automotive, materials innovations and the changing landscape. It includes a review of legislative/regulatory activity impacting vehicle development and lightweighting, market opportunities & challenges for mold and toolmakers, innovative design strategies being implemented by major OEMs and suppliers, as well as a review of key indicators in Canada, Mexico, Brazil and China.

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

Injection Molding Market Analysis & Processor Rankings

Plastics News BUNDLED package contains our in-depth Market Analysis of the Injection Molding segment. You will gain keen insight on current trends and our economic outlook.

As a BONUS this includes PN's updated 2014 database of North American Injection Molders RANKED by sales volume. Sort, merge, mail & prospect by end market, materials processed, region, # of plants and more.

Learn more

Upcoming Plastics News Events

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