Compounder PolyOne Corp., which posted record sales of $2.6 billion in 2006, is expanding again in China and boosting market share in Brazil.
Avon Lake-based PolyOne is adding a research and service center in northeastern China, said PolyOne Asia-Pacfic General Manager Willie Chien. The company has not yet chosen a site, but likely locations include Tianjin and Chanchun, Chien said at an event marking PolyOne's 10th year of operations in China.
Chien also said PolyOne will complete its previously announced acquisition of a PVC compounding plant in Dongguan, from Hong Kong-based Ngai Hing Hong Co. Ltd., by the end of March. PolyOne already has plans to expand that plant's annual capacity, now at 33 million, to 44 million pounds, he said.
Customers based in China's northeast account for about 20 percent of PolyOne's sales in the country, Chien said.
Meanwhile, Plasticos Novacor Ltda. will produce specialty compounds for PolyOne Corp. in Brazil.
Diadema, Brazil-based Plasticos Novacor will make PolyOne's Stat-Tek, Lubri-Tech and EdgeTek high-performance compounds based primarily on engineering resins. The compounds will be sold in Brazil and Argentina, and possibly other South American countries, PolyOne officials said in a Jan. 22 news release.
Plasticos Novacor's plant, located near customers in automotive, appliance, electronics and consumer products markets, will sell the PolyOne products in lots of 200-10,000 pounds or more, the release said. Plasticos Novacor has done business in the Sao Paulo area for more than 20 years.
PolyOne's 2006 sales rose 7 percent over 2005 and represent the highest full-year mark - excluding sold-off engineered films and elastomers units - since the firm was created from the merger of Geon Co. and M.A. Hanna Co. in 2000. Profit more than doubled last year, to $123 million.
Sales in the company's international color and engineered materials unit were up 14 percent in 2006, while sales in resin distribution climbed almost 8 percent. For the vinyl business - its largest unit, with 36 percent of total sales - business was basically flat at $926 million in sales. In PolyOne's ``all other'' category, including North American color and engineered materials products, sales rose 10 percent in 2006.
China operations in 2006 accounted for about half of PolyOne's Asia sales, which totaled $130 million. PolyOne has three sites in China, in Shenzhen, Suzhou and Shanghai.