Krauss-Maffei Kunststofftechnik GmbH and Cincinnati Extrusion GmbH have announced details of their major contract with rapidly growing Chinese profile and pipe producer Dalian Shide Plastic Industry Co. Ltd.
Krauss-Maffei's portion of the deal calls for supplying 240 extruders, while Cincinnati Extrusion is providing 165 extrusion lines.
The firms announced agreements in principle in May, but at the time would not provide details.
Vienna, Austria-based Cincinnati Extrusion is part of SMS Plastics Technology of Meinerzhagen, Germany. Krauss-Maffei, based in Munich, Germany, is part of Mannesmann Plastics Machinery GmbH.
Dalian Shide first made headlines in 2000, when it announced a $59 million deal to buy 120 extruders and related equipment, from a variety of suppliers, to make PVC window profiles.
With the new order, Cincinnati Extrusion will have supplied a total of 352 extruders to Dalian Shide. The order includes twin- and single-screw units. Some 39 single-screw machines will be installed as coextruders to manufacture colored window profiles.
``Shide is planning to invest in further machines for profiles beginning next year for the southern part of China, and [Cincinnati Extrusion] will be one supplier for this investment,'' said Wolfgang Hild, the supplier's overseas sales manager.
K-M's portion of the business includes 100 machines that will extrude profiles and will be delivered in four lots next year, said spokesman Guido Radig. At least some of the remaining 140 machines will extrude pipe, he said.
Other suppliers selling equipment to Dalian Shide include tooling supplier Greiner Extrusiontechnik of Wartberg, Germany, and Reimelt GmbH, a producer of raw-material handling systems in RÃ¶dermark, Germany.
Dalian Shide's massive expansion includes building 11 new plants across China, with the ability to process about 1.6 billion pounds of PVC annually. That would take its total capability to more than 2.2 billion pounds, making it the world's largest profile extruder.
The company is a major subsidiary of Dalian Shide Group, one of China's largest industrial conglomerates.
Dalian Shide is adding two new profile extrusion plants in Dalian, four others in the southern Chinese city of Zhuhai, another in Chengdu in western China and four on a new production site in Shanghai.
Extruders being supplied by Cincinnati Extrusion are destined for facilities in Chengdu and Shanghai and a laboratory facility in Dalian. Around 100 of the 165 machines ordered will be delivered in the first quarter of 2004, with the balance supplied in the last three months of next year. Production will begin within three months of delivery, Hild said.
Armed with its strengthened capacity, Dalian Shide aims to open up new markets for its profiles outside China. Regions being targeted include Europe, North America, Japan and Korea.
Beyond its huge profiles expansion, Dalian Shide has ambitious plans to manufacture plastic pipe at a string of new plants. The program to develop five or six new pipe businesses across China is still at a formative stage, but cities earmarked for facilities include Chengdu, Anshan in northern China, and Zhuhai in the south, Hild said.
His company also wants to supply extruders for pipe production ``but, up to now there is no production program fixed,'' he said.
Earlier this year, Krauss-Maffei indicated that part of its latest order from Dalian Shide would include 60 single-screw extruders intended for pipe production.
International development is high on the priority list of Shide Group's colorful, young, billionaire owner Xu Ming. In a rare press interview in September 2002, he predicted that his group's international sales will reach $300 million in 2003.
He said the firm's three-year goal was to expand its building materials business into pipe and sheet. After that, it will focus on its petrochemicals business, mainly vinyl chloride monomer and PVC.