SHANGHAI — Chinese injection molding machinery manufacturer Ningbo Haitai Machinery Manufacture Co. Ltd. is constructing a branch facility in Qingdao, which will be finished at the end of 2014.
The first phase will be 359,000 to 431,000 square feet, said sales manager Peijun Wang, and by the end of final construction in about three years the entire facility will be 1,435,188 square feet, larger than the current Ningbo facility, which is 1,076,391 square feet with 6 production lines. Haitai has many clients in the Qingdao area, including appliance giant Haier Group, said Wang.
“Sales will be quicker and we can serve the clients faster,” he said. He added the company plans on hiring 100 by the end of the year.
“Last year wasn’t bad,” he said in an interview with Plastics News at Chinaplas in Shanghai. The company did 250 million RMB in sales and manufactured 2,000 units in 2013. Some 70 percent of the company’s clients are domestic, he said, while 30 percent are for export to mostly South American, Southeast Asian and Middle Eastern clients.
“We expect to do better than last year, especially in exports,” he said, forecasting a rise of 30-40 percent in export sales. The company’s presence at foreign trade shows has had an impact on sales, he said. This year they will represent at 12 foreign trade shows, and last year they had a booth at about 13.
India’s tariffs on injection molding machines, in place since 2009, have created a challenging situation, Wang said, reporting that Haitai is considering opening a factory in India. “India was a big market for us. Before the market was very good,” he said. The company hopes to enter into a JV with an Indian company. “The laws are supposed to end this year. If they end it, we won’t invest, but if they continue we’ll consider entering.”