Chinese machine maker Tederic plans IPO

By Steve Toloken
Staff Reporter / Asia Bureau Chief

Published: April 28, 2014 11:01 am ET
Updated: May 7, 2014 11:43 pm ET

Related to this story

Topics China, Injection Molding, Machinery, CHINAPLAS

SHANGHAI — Chinese injection press maker Tederic Machinery Co. Ltd. plans an initial public offering on the Shanghai stock market. The company also plans to invest 300 million Chinese yuan ($48.6 million) on R&D and capacity expansion in the next three years, the company's top executive said.

Tederic, based in Hangzhou, Zhejiang province, wants to triple its production capacity, add more research and development capability for two-platen and all-electric machines and expand its domestic and international sales and service operations, said CEO Terry Zheng.

The company is one of China’s largest injection molding machine makers and currently produces about 3,000 molding machines a year, but it wants to use the IPO to boost its capacity to 10,000 machines annually by 2017 and open two new factories in Hangzhou, he said.

Zheng stressed that the timing of the stock sale depends on government approval but he said the company is targeting 2015. He declined to say how much money the company hopes to raise but said the firm could say more this summer.

He spoke at an April 26 interview at Chinaplas, held from April 23-26 in Shanghai, and in a follow-up emails and text messages.

Tederic is trying to capitalize in part on growth in China’s building and construction markets, where Zheng said it has a strong position making molding equipment for pipe fittings.

The next five years in that market will be a critical time as China’s builds out its infrastructure and its cities, he said.

The company plans to add five sales and service centers in China and build a network of 30 sales and service offices domestically, as well as improve its international sales and distribution operations and have representation in 37 countries, Zheng said.

Zheng said Tederic currently has annual sales of 700 million Chinese yuan ($113.4 million) but is targeting post-IPO sales of 2 billion yuan ($323.9 million) by 2017.

Besides construction, the company is looking for growth in the automotive, home appliance and packaging markets. It manufactures molding machines with clamping forces ranging from 45-6,000 metric tons, with a focus on machinery from 1,000-4,000 tonnes.

Some of the local industries it supplies have a strong need to upgrade equipment, Zheng argues.

“In China so many home appliance companies use very old machines, almost 15 or 20 years old,” he said. “Now they need new equipment for high quality production and for power savings.”

Tederic had a factory in the Philippines but it sold off that operation recently to make it easier to structure itself to have the IPO, Zheng said. It sold that operation to its Indian agent, SNT Trading Co., he said.

The company currently has 120,000 square meters of manufacturing space in Hangzhou.


Comments

Chinese machine maker Tederic plans IPO

By Steve Toloken
Staff Reporter / Asia Bureau Chief

Published: April 28, 2014 11:01 am ET
Updated: May 7, 2014 11:43 pm ET

Post Your Comments


Back to story


More stories

Image

Major packaging merger includes plastics operations

January 26, 2015 12:24 pm ET

A merger of packaging companies MeadWestvaco Corp. and Rock-Tenn Inc. will create a new company with nearly $16 billion in annual sales.    More

Image

Viking Plastics honored for employee relations

January 26, 2015 12:43 pm ET

Custom injection molder Viking Plastics has won DevelopErie’s 2014 Employer of the Year Award for manufacturing in the Erie, Pa., region.    More

Image

Continental builds low-emission interior trim factory in China

January 26, 2015 12:33 pm ET

Benecke-Kaliko AG is making the largest investment in its history to build an environmentally friendly auto interior trim plant in China, prompted by ...    More

Image

Hyundai Mobis investing $24 million to expand in Slovakia

January 22, 2015 9:28 am ET

South Korean auto parts maker Hyundai Mobis has unveiled plans to invest about 21 million euros ($24.1 million) to modernize and expand the output...    More

Image

Pyramid investing in new presses as it targets sales in medical, technical molding

January 21, 2015 1:40 pm ET

Custom molder Pyramid Plastics Inc. is investing to boost its stake in medical and technical molding.    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