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, China, Materials Suppliers, 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

EPA fines RI polymer company

August 29, 2014 1:20 pm ET

A Rhode Island polymer manufacturer has reached a $60,000 settlement with the U.S. Environmental Protection Agency (EPA) for violating federal clean...    More

Image

Haitian's standardization efforts paying off

August 29, 2014 9:53 am ET

Streamlined design efforts and robust export sales helped propel Ningbo, China-based injection molding machine manufacturer Haitian International...    More

Image

Chinese compounders seek market shares, often at the expense of margins

August 29, 2014 10:02 am ET

China's largest compounder, Kingfa Sci. & Tech. Co. Ltd., as well as its more automotive-focused counterparts Shanghai Pret Composites Co. Ltd. and...    More

Image

Green trend boosts plastic building materials business in China

August 29, 2014 9:42 am ET

The greening of China's domestic building materials market is giving the plastics industry a boost.    More

Image

PP prices rise 5 cents

August 28, 2014 3:59 pm ET

After a one-month break, volatility has returned to the North American polypropylene resin market, with prices increasing by an average of 5 cents per...    More

Market Reports

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report analyzes economic and market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as growth strategies being implemented by thermoformed packaging companies.

Learn more

Pipe, Profile & Tubing Extrusion in North America 2014

U.S. demand for extruded plastics is expected to grow by 3 percent in 2014, with PVC remaining the largest segment.

Plastic pipe will post the strongest gains through 2018, continuing to take market share from competing materials in a range of markets.

Our latest market report provides in-depth analysis of current trends and their financial impact on the pipe, profile and tubing extrusion industry in North America.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events