An Asian firm plans to begin ramping up injection molding, rotational molding, paint spraying, blow molding, toolmaking and sewing operations by August in a new factory in China.
The firm's existing contract manufacturing operations in Zhuhai, China, employ about 1,000, occupy 130,000 square feet at several sites and use 22 Chen Hsong injection presses, with clamping forces of 75-350 tons.
In 1996, the contract toy manufacturing unit of Shun Hing International Development Ltd. produced 8 million toys and generated sales of about $11 million.
Later this year, Shun Hing will consolidate production by moving about 30 miles to a 200,000-square-foot factory under construction in Zhongshan, China. The facility is the first phase of a corporate expansion program that includes the addition of rotomolding and blow molding capabilities. Employment may double by 1999.
``The purpose is to house all our different factories under one roof'' and vacate the old sites, Frankie Chu said in a telephone interview.
Chu is chairman and chief executive officer of subsidiary Sunny (Overseas) USA Inc. in Diamond Bar, Calif.
The Sunny unit was formed in September to serve as Shun Hing's liaison office in the United States, aiming ``to serve companies that want to access low-cost manufacturing facilities'' in the Far East, Chu said.
Establishing a U.S. office makes Shun Hing different than other original equipment manufacturers in the Orient, Chu said.
``We are targeting companies that want to access Orient manufacturing facilities but want to avoid high incurred costs to set up their own offshore sourcing office,'' he said.
Traditionally, U.S. buyers set up a Hong Kong sourcing office or use a trading house.
Shun Hing quotes lower labor rates than other OEMs, Chu said, because ``our corporate level doesn't carry big overhead'' and the firm maximizes use of ``experienced, China-based middle management to run our operation.''
Shun Hing had total 1996 sales of $50 million. Manufacturing toys and electrical home appliances and conducting international commodity trading accounted for 54 percent. The remaining 46 percent came from real estate development.
Ho Seong Peng, 42, founded the Hong Kong-based company in 1985 on the basis of his experience in toy manufacturing. In 1993, he began to diversify into other markets.