Chinese injection press maker Guangzhou Borch Machinery Co. Ltd. plans to build a factory in Zhejiang to make large-tonnage presses.
Borch, based in Guangzhou in South China, plans to open the 50 million yuan ($6.29 million) factory in early 2007 to shorten its lead times for Shanghai and eastern China, said Hanson Ying, chief marketing officer.
``The demand for machines has risen beyond our capacity,'' he said in an interview at the Applas exhibition, held Aug. 15-18 in Beijing. ``Our main market is in east China. ... We would like to establish there to give a faster response,'' he said.
The company claims it manufactures about 3,000 injection molding machines a year, and eventually wants to produce another 1,000 presses a year in Zhejiang province, south of Shanghai. It will employ 200-300 people there initially, eventually rising to 500, Ying said.
According to the company's Web site, Borch employs 500 at its 560,000-square-foot plant in Guangzhou and does annual sales of 350 million yuan ($44 million).
The new 1 million-square-foot facility, its second, would concentrate on large-tonnage machines, up to 2,400 metric tons of clamping force. Currently the company's largest press is about 1,400 metric tons.
Zhejiang would target the home appliance, automotive and pipe connector and fitting markets, he said.
Ying said the Chinese market for simpler presses is at overcapacity, but he said Borch is trying to add more technology, like higher-speed hydraulic machines and multimaterial molding.
``For the normal Chinese-made machines, there is overcapacity,'' he said. ``For the advanced machines, most of them are imported. We would like to concentrate on this field and replace the overseas imported machines.''
Borch exports about 500 machines a year, including to the Middle East, Eastern Europe and South America, he said.
Ying said Borch is looking to sell off a minority stake. The company is especially interested in finding foreign investors, particularly other plastics equipment companies, because it wants to develop its management skills and technical knowledge, according to Ying.