M.A. Hanna Co. is launching its first venture in China: A compounding facility with 13 million pounds of production capacity. Hanna of Cleveland announced Jan. 4 it is entering a joint venture with Suzhou Plastic Factory #1 in Suzhou, about 60 miles west of Shanghai.
Hanna Suxing Plastics Compounding (Suzhou) Co. Ltd. will make nylon 6, nylon 6/6, polypropylene and ABS compounds for the Chinese market, John Hedden, Hanna manager of corporate development said in a telephone interview Jan. 9.
Beginning in December, the company will make compounds under the Suxing - or ``Star'' - brand name and Hanna's Bergamid, Texapol, Monmouth and Maxxam trade names, for auto, appliance and other high-end market areas, Hedden said.
The plant will serve domestic plastic processors and the Chinese operations of transnational plastic processors, Hedden said.
The companies did not release terms of their agreement. However, Hanna said it will own 70 percent of the venture's equity.
To establish the company, Hedden said SPF1 will separate its substantial compounding operations from its larger injection molding operations. It has annual sales of more than $10 million, 40 percent from compounds. SPF1 now does compounding and molding in the same facility, he said. Its compounds are sold under the Suxing name in China.
The venture will have a separate facility, and will serve a wider market in the industrialized provinces of Shanghai, Jiangsu and Zhejiang, he said.
Hanna also will provide technology and know-how to the venture.