DUSSELDORF, GERMAY — Maguire Products Inc. is expanding in Europe by building a new regional headquarters office and warehouse complex in Britain by the end of the year.
The company also is setting out to conquer the vast market of mainland China after establishing a foothold alongside its German distributor in Shanghai. The auxiliary equipment supplier intends to capitalize on its strong relationship with multinational firms moving into the processor market.
The company's Maguire Europe Ltd. subsidiary is building a 27,000-square-foot facility in Tamworth, England.
At present, the company is operating a small warehouse and office at Tamworth.
The new headquarters will include training, conference and equipment testing areas, and demonstration facilities where Maguire can show its products, including blenders, feeders, loaders, granulators and liquid-color pumps.
``This development reflects our growth and our ambitions for the future as well. ... It continues our philosophy of stocking products for immediate delivery. That is the way of developing the market,'' said Paul Edmondson, general manager of Maguire Europe.
Aston, Pa.-based Maguire Products established its European sales and service office three years ago.
``The intention was to build enough interest and, specifically, a distribution network on the basis that we really cannot sell unless we have local representatives,'' Edmondson said.
His firm aimed to introduce gravimetric blenders in a region where more expensive volumetric and loss-in-weight systems were widely available. The response was good, he said.
``We were taken by surprise at how the [European] market reacted to such new technology and how quickly it accepted American technology. The European market really mushroomed. We're currently selling around 750 units a year here,'' he said in an interview at K'98 in Dusseldorf.
Today, Maguire, with European sales of around $7 million, has a dozen distributors covering 16 national markets throughout the region with Eastern European success already in the Czech Republic. Its busiest markets are in the United Kingdom, France, Italy, Spain and Germany, Edmondson said. He added that European sales are up by 40 percent this year.
``Our next phase will take us to some of the more [geographically] peripheral European markets such as Poland and Greece,'' he said.
The company expects slower growth in Asia.
``Our next frontier is China,'' said B. Patrick Smith, sales and marketing vice president for Maguire Products. ``The market's less sophisticated and will take off less quickly than Europe. But there are as many processors in China today as there are in Europe or in the U.S. They are not highly automated.''
Maguire Products has annual sales of about $28 million.
At K'98, Maguire showed off its new-design Radial granulators, launched initially in the United States six months ago. It also unveiled its Gravimetric Gateway material-management system for networking Maguire blenders plantwide or companywide, with software in five languages.