Shanghai Jwell building new plant, mulling acquisition

The Shanghai-based company (Booth W123020), which employs 2,000 at 13 factories in China, opened the initial phase of a 100,000 square meter (1.07 million square foot) facility in Suzhou, Jiangsu Province this year, driven by growth in China's domestic market.

General Manager Tony Liu said the company is continuing to see demand rising 20 percent a year as the Chinese government ups spending on infrastructure to stimulate demand. The firm is heavily involved in the building and construction sector, and makes extrusion lines for PVC, polyethylene, polypropylene and wood-plastic profiles, pipe and sheet, along with blow molding and recycling equipment.

Liu declined to disclose sales figures.

The Suzhou plant opened earlier this year with 40,000 square meters (430,000 square feet) of space, and plans to open another 40,000 square meters later this year, with the bulk of the factory finished in 2010.

Exports remain a troubled spot for the company, however, dropping 30 percent in the economic slowdown, Liu said, with most of their overseas markets being in other developing economies.

The company is also considering acquiring a European maker of extrusion equipment, because it would like to acquire “advanced management” and because it wants to enhance its brand image, Liu said.

Liu said the company does not do much business in the North American or European markets but exhibits at shows like NPE and the K Fair because it wants to keep in contact with old customers, and because the fairs attract international visitors.

Liu said the company was glad it did not bring any equipment to NPE because it was disappointed in the attendance and had expected more traffic.

While it could not show equipment, he said the firm has developed two new products, an extruder for making 1.6 meter diameter high density PE pipe, which it said is the largest in China, and a seven-meter wide flat die for making sheet for waterproofing or lining ponds.

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