High quality, cheaper product key in China

Rebecca Kanthor
PLASTICS NEWS CORRESPONDENT

Published: May 15, 2014 9:55 am ET
Updated: May 15, 2014 9:59 am ET

Related to this story

Topics Materials, Materials Suppliers, China, CHINAPLAS

SHANGHAI — Thermoplastic elastomer manufacturer Kraiburg TPE Gmbh & Co.’s Asia-Pacific director Roland Ritter says that he sees two competing trends in the region.

One is “cheaper, cheaper, cheaper,” he said, referring to companies’ interest in delivering what looks like a product, but isn’t. The other trend, he said, is quality and sustainability.

“In the long run we think it is cheaper to have quality,” Ritter said. “If China wants to survive, it will have to follow the quality trend.”

The company’s new labeling system launched last year is aimed at combating that “cheaper” trend that Ritter spoke of in an interview with Plastics News at Chinaplas in Shanghai April 23-26.

Bridget Ngang Shue Hui, product and marketing manager for Kraiburg, confirmed that a few cases of intellectual property infringement had been found in China.

“We are now collecting this information and later we will take action.” She said the new label system has been a success so far because it is very hard to make the copy.

Ritter said the company’s goal is to expand their contacts in the region over the next few years.

He reported that their growth in Asia is slow but steady.

“Last year we achieved a growth of 15 percent,” he said, and he added he expects this year to be similar. “We’re growing organically.”

In the next two years the company will open offices in Shenyang, Chongqing and Guangzhou.

“I’m reading the Chinese newspapers,” Ritter said, adding he’s following reports of joint ventures by automotive clients. “We know where the companies are going. We’re simply listening.” 

He added that in three years, the company’s capacity will expire at the company’s Malaysian plant, and it will have to begin assessing future expansion. But he said that if expansion doesn’t make sense, the company wouldn’t go through with plans.

Just in the past few months, he said, the company decided not to go ahead with plans to open a plant in India, even though the $3.8 million investment had been approved.


Comments

High quality, cheaper product key in China

Rebecca Kanthor
PLASTICS NEWS CORRESPONDENT

Published: May 15, 2014 9:55 am ET
Updated: May 15, 2014 9:59 am ET

Post Your Comments


Back to story


More stories

Image

2014 leaves some resin firms in the black while others struggle

January 23, 2015 2:37 pm ET

On the financial side, 2014 was good for Hexcel Corp., so-so for Celanese Corp. and it could have been better for Omnova Solutions.    More

Image

Clariant's ColorForward predicts future consumer trends

January 23, 2015 1:33 pm ET

Clariant International Ltd. is marking a decade of color forecasting with the 10th edition of its ColorForward program.    More

Image

The future for PolyOne is colorful

January 23, 2015 1:28 pm ET

PolyOne Corp. is writing four color stories for 2016.    More

Image

Mexico's Polymer Solutions looks to grow, expand offerings with name change

January 23, 2015 12:03 pm ET

British biodegradable additives developer Symphony Environmental Technologies plc's Mexico distributor has changed its name from Plásticos...    More

Image

Drop in oil leads to resin pricing plunge

January 22, 2015 3:16 pm ET

In most Decembers, resin makers try to focus on the holidays and on spending time with their families. This improves their mental well-being and also ...    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