Skip to main content
Sister Publication Links
  • Sustainable Plastics
  • Rubber News
Subscribe
  • Sign Up Free
  • Login
  • Subscribe
  • News
    • Processor News
    • Suppliers
    • More News
    • Digital Edition
    • End Markets
    • Special Reports
    • Newsletters
    • Resin pricing news
    • Videos
    • Injection Molding
    • Blow Molding
    • Film & Sheet
    • Pipe/Profile/Tubing
    • Rotomolding
    • Thermoforming
    • Recycling
    • Machinery
    • Materials
    • Molds/Tooling
    • Product news
    • Design
    • K Show
    • Mergers & Acquisitions
    • Sustainability
    • Public Policy
    • Material Insights Videos
    • Numbers that Matter
    • Automotive
    • Packaging
    • Medical
    • Consumer Products
    • Construction
    • Processor of the Year
    • Best Places to Work
    • Women Breaking the Mold
    • Rising Stars
    • Diversity
    • Most Interesting Social Media Accounts in Plastics
  • Opinion
    • The Plastics Blog
    • Kickstart
    • One Good Resin
    • Pellets and Politics
    • All Things Data
    • Viewpoint
    • From Pillar to Post
    • Perspective
    • Mailbag
    • Fake Plastic Trees
  • Shop Floor
    • Blending
    • Compounding
    • Drying
    • Injection Molding
    • Purging
    • Robotics
    • Size Reduction
    • Structural Foam
    • Tooling
    • Training
  • Events
    • K Show Livestream
    • Plastics News Events
    • Industry Events
    • Injection Molding & Design Expo
    • Livestreams/Webinars
    • Editorial Livestreams
    • Ask the Expert
    • Plastics News Events Library
    • Processor of the Year submissions
    • Plastics News Executive Forum
    • Injection Molding & Design Expo
    • Plastics News Caps & Closures
    • Women Breaking the Mold Networking Forum
    • Plastics in Automotive
    • PN Live: Mergers and Acquisitions
    • Polymer Points Live
    • Numbers that Matter Live
    • Plastics in Politics Live
    • Sustainable Plastics Live
    • Plastics Caps & Closures Library
    • Plastics in Healthcare Library
    • Women Breaking the Mold Networking Forum Library
  • Rankings & Data
    • Injection Molders
    • Blow Molders
    • Film Sheet
    • Thermoformers
    • Pipe Profile Tubing
    • Rotomolders
    • Mold/Toolmakers
    • LSR Processors
    • Recyclers
    • Compounders - List
    • Association - List
    • Plastic Lumber - List
    • All
  • Directory
  • Resin Prices
    • Commodity TPs
    • High Temp TPs
    • ETPs
    • Thermosets
    • Recycled Plastics
    • Historic Commodity Thermoplastics
    • Historic High Temp Thermoplastics
    • Historic Engineering Thermoplastics
    • Historic Thermosets
    • Historic Recycled Plastics
  • Custom
    • Sponsored Content
    • LS Mtron Sponsored Content
    • Conair Sponsored Content
    • KraussMaffei Sponsored Content
    • ENGEL Sponsored Content
    • White Papers
    • Classifieds
    • Place an Ad
    • Sign up for Early Classified
MENU
Breadcrumb
  1. Home
  2. News
News
March 20, 1995 01:00 AM

ROYAL TARGETS LATIN AMERICA, ASIA FOR MANUFACTURING PLANTS

Richard Higgs
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print

    MEXICO CITY - Royal Plastics Group Ltd. is considering manufacturing its extruded plastic housing system in Latin America and Asia. The firm may set up joint ventures or direct manufacturing in Mexico, Argentina and Colombia within two years, and add at least three Asian joint venture plants.

    Royal executives discussed the plans at the March 3 opening of a single-story, private show house, built in Cuernavaca, Mexico, using components from Royal Building Systems (Cdn) Ltd.

    In September, RBS set up a unit, Royal Building Systems de Mexico SA de CV, headed by Italo Tajer, president of Advanced Profiles SA de CV, Royal's profile plant in Altamira, Mexico.

    Advanced Profiles is investing around US$1 million this year to extend its range of extruded profiles. Next month, the firm will add a window profile extrusion line, and a door profile line is planned for later this year.

    Tajer said 20 more window lines will be added in the next two years. He said the market for such plastic windows is just taking off in Mexico and Royal will need to invest about US$4 million over two or three years.

    Vic DeZen, Royal Plastics group president and chief executive, said Royal intends to add RBS extrusion lines at AP when the market justifies it.

    Once demand reaches 4,000 units locally, Royal will launch a $30 million RBS plant with more than 20 extruded component lines next to AP, Tajer said. It initially will have as many as eight lines.

    Royal has invested about $5 million in Mexico, primarily in the AP operation. When the group went public last year, it bought out Tajer's 40 percent share of AP.

    In Argentina, RBS has a joint venture partner and will establish a US$30 million building-parts plant by the end of this year, DeZen said.

    RBS has signed a joint marketing deal with Armando Boulihesen, who heads Royal's local subsidiary, Royal Building Systems (Argentina) SA. This eventually will operate a parts plant there.

    Royal also intends to establish another joint venture housing-parts manufacturing unit in Colombia at the end of this year or early in 1996. He added that Royal is looking at the market potential around SÃŒo Paulo, Brazil.

    In Colombia, RBS is negotiating for a public housing project in the Pacific port city of Buenaventura that could mean supply of as much as 6,000 basic, 323- to 484-square-foot homes during five years.

    In China, RBS is overseeing construction of 300 motel units in a C$2.5 million (US$1.78 million) deal in Haikou, China, with state agency China Minerals and Metals Import and Export.

    The agency bought the units in 1993 and shipped them to China early last year, but permit problems held up their erection until recently, said Angelo Bitondo, RBS general manager. Top group executives, including DeZen, will travel to Beijing this month for talks with government and private sector officials. Royal expects to form a venture with a Chinese business group.

    ``The [Chinese] group is talking of setting up five plants in about two years,'' Bitondo said in a telephone interview.

    He admitted RBS experienced a minor setback in its current Chinese venture, dealing directly with China's federal government. It now is considered better to work with local authorities.

    Royal executives also said they are in talks with a land holding company in Jakarta, Indonesia. RBS is supplying a model center and show units and will do a market study to determine the feasibility of a joint venture production plant. If the project proceeds, the plant eventually will comprise eight to 10 extrusion lines, Bitondo said.

    In Bangkok, Thailand, Royal executives expect to sign an agreement with a potential Thai plant partner. The unnamed firm is a land developer and producer of building products, including some in plastics.

    The Canadians will go to Malaysia to talk to another potential joint venture partner. But Royal plans only one or two joint venture plants in Southeast Asia initially to avoid underuse of capacity. Bitondo would not name the potential partners.

    Royal Plastics reported sales of C$110.2 million (US$78.2 million) for the quarter ended Dec. 31, up from C$87.9 million (US$62.4 million) the previous year. Profit was C$6.8 million (US$4.8 million), vs. C$4.8 million (US$3.4 million) on a pro forma basis for 1993. Excluding pro forma adjustments, profit for the 1993 quarter was C$8.3 million (US$5.9 million).

    RECOMMENDED FOR YOU
    Berry sees growing health care demand in India; new plant to open soon
    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Plastics News would love to hear from you. Email your letter to Editor at [email protected]

    Most Popular
    1
    OSHA: Worker died at plastics firm after duct tape covered safety guards
    2
    Tornadoes, severe weather impact Texas resin plants
    3
    Plastics firms work to eliminate PFAS use as pressure mounts
    4
    Material Insights: Nasty weather knocks some chemical plants offline
    5
    MAPP survey shows ‘struggling' plastics processing sector
    SIGN UP FOR OUR FREE NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Get our newsletters

    Staying current is easy with Plastics News delivered straight to your inbox, free of charge.

    Subscribe today

    Subscribe to Plastics News

    Subscribe now
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter
    • Instagram

    Plastics News covers the business of the global plastics industry. We report news, gather data and deliver timely information that provides our readers with a competitive advantage.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI 48207-2997

    Customer Service:
    877-320-1723

    Resources
    • About
    • Staff
    • Editorial Calendar
    • Media Kit
    • Data Store
    • Digital Edition
    • Custom Content
    • People
    • Contact
    • Careers
    • Sitemap
    Related Crain Publications
    • Sustainable Plastics
    • Rubber News
    • Tire Business
    • Urethanes Technology
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • News
      • Processor News
        • Injection Molding
        • Blow Molding
        • Film & Sheet
        • Pipe/Profile/Tubing
        • Rotomolding
        • Thermoforming
        • Recycling
      • Suppliers
        • Machinery
        • Materials
        • Molds/Tooling
        • Product news
        • Design
      • More News
        • K Show
        • Mergers & Acquisitions
        • Sustainability
        • Public Policy
        • Material Insights Videos
        • Numbers that Matter
      • Digital Edition
      • End Markets
        • Automotive
        • Packaging
        • Medical
        • Consumer Products
        • Construction
      • Special Reports
        • Processor of the Year
        • Best Places to Work
        • Women Breaking the Mold
        • Rising Stars
        • Diversity
        • Most Interesting Social Media Accounts in Plastics
      • Newsletters
      • Resin pricing news
      • Videos
    • Opinion
      • The Plastics Blog
      • Kickstart
      • One Good Resin
      • Pellets and Politics
      • All Things Data
      • Viewpoint
      • From Pillar to Post
      • Perspective
      • Mailbag
      • Fake Plastic Trees
    • Shop Floor
      • Blending
      • Compounding
      • Drying
      • Injection Molding
      • Purging
      • Robotics
      • Size Reduction
      • Structural Foam
      • Tooling
      • Training
    • Events
      • K Show Livestream
      • Plastics News Events
        • Plastics News Executive Forum
        • Injection Molding & Design Expo
        • Plastics News Caps & Closures
        • Women Breaking the Mold Networking Forum
        • Plastics in Automotive
      • Industry Events
      • Injection Molding & Design Expo
      • Livestreams/Webinars
        • PN Live: Mergers and Acquisitions
      • Editorial Livestreams
        • Polymer Points Live
        • Numbers that Matter Live
        • Plastics in Politics Live
        • Sustainable Plastics Live
      • Ask the Expert
      • Plastics News Events Library
        • Plastics Caps & Closures Library
        • Plastics in Healthcare Library
        • Women Breaking the Mold Networking Forum Library
      • Processor of the Year submissions
    • Rankings & Data
      • Injection Molders
      • Blow Molders
      • Film Sheet
      • Thermoformers
      • Pipe Profile Tubing
      • Rotomolders
      • Mold/Toolmakers
      • LSR Processors
      • Recyclers
      • Compounders - List
      • Association - List
      • Plastic Lumber - List
      • All
    • Directory
    • Resin Prices
      • Commodity TPs
        • Historic Commodity Thermoplastics
      • High Temp TPs
        • Historic High Temp Thermoplastics
      • ETPs
        • Historic Engineering Thermoplastics
      • Thermosets
        • Historic Thermosets
      • Recycled Plastics
        • Historic Recycled Plastics
    • Custom
      • Sponsored Content
      • LS Mtron Sponsored Content
      • Conair Sponsored Content
      • KraussMaffei Sponsored Content
      • ENGEL Sponsored Content
      • White Papers
      • Classifieds
        • Place an Ad
        • Sign up for Early Classified