SAO PAULO, BRAZIL — Nissei ASB Machine Co. Ltd. said it plans to make blow molding machines in Brazil in 2002, after it completes its launch of plants in India and China.
Ichiro Mizuuchi, Nissei president and chief executive officer, said during an interview at Brasilplast 2001 in Sao Paulo that the firm plans to start assembling its one-stage blow molding machines in Brazil next year as a way to cut costs and avoid tariffs.
This is not the first time Nissei has announced plans to manufacture in Brazil. The company made a public announcement in 1998 but dropped the plan in favor of China's more lucrative market, Mizuuchi said.
Mizuuchi said key details for the Brazilian operation, like the location, opening date and number of employees, are undecided.
Brazil's blow molding industry is expected to grow 12-16 percent in 2001, and he said he expects the country's economic and political stability to continue. He said the Brazilian market buys 20-24 PET stretch blow molding machines each year; he estimates Nissei sells one-fourth of them.
Interest rates are way down from a few years ago, and banks are much more comfortable lending in Brazil, he said. The company sells its machines in U.S. dollars.
Nissei exhibited a mock, 3,200-square-foot factory at Brasilplast, with one machine and office space.