Shandong Dawn Group Co. Ltd. is doubling its compounding capacity, but what makes this different from ordinary expansions is that the company does not need to buy additional land. Dawn has developed a 1,600-acre industrial park in Longkou, China, where its 740-acre campus is located.
At NPE 2006 in Chicago, Dawn met with a Canadian food-packaging company interested in locating in the park. The compounder wants more processors to locate there.
``It is our goal to integrate the downstream processing industry to the industrial park,'' said Mi Yongcun, group vice president and general manager of Longkou Dawn Engineering Plastics Co. Ltd. and general manager of Shandong Dawn-BH Elastomer Co. Ltd.
Dawn compounds nylon, polypropylene, polyethylene, high-impact polystyrene, ABS, PET, and alloys such as polycarbonate/PET, PC/ABS and PC/polyester. It also compounds engineering plastics.
In addition, Dawn claims to be the leading Chinese maker of thermoplastic vulcanizates. It said it is the only Chinese company that owns more than one patent related to TPV.
Dawn is planning a broad expansion. ``Our annual capacity of all products will be doubled to [132.3 million pounds] in two or three years, at the latest,'' said Qiu Huanling, director of imports and exports.
``If the overseas market reacts well enough to our reaching-out efforts, the expansion could be achieved by next year.''
About 80 percent of the products are sold in China, but Qiu said exports could go up to 25 percent. Primary export markets are Southeast Asia, the U.S., Germany, Italy and the Middle East.
Domestically, Dawn supplies automakers, home appliance makers and the electronics industry.
``Auto is our largest and fastest-growing end market. Everyone sees the business potential raised by enthusiastic Chinese auto buyers,'' Mi said.
The firm has used agents in the United States since 2004. But Mi said many foreign buyers hold biased views on Chinese resins.
``Although the overall level is lagging far behind the West, the quality of specific materials can be internationally competitive,'' he said.
He said the target in North America is low- to middle-level markets.
Privately held Dawn employs 1,100 with 14 subsidiaries. The company reported sales of 3.5 billion yuan ($438 million) in 2005.