Japan's Ube Machinery Corp. Ltd. and Hong Kong's Cosmos Machinery Ltd. are investing in a Chinese injection press-making factory, a move that will expand their long-standing technical partnership.
A subsidiary of Cosmos has been making Ube presses in China since 2002, under a technology-transfer agreement, but in a March 23 announcement, the firms said they will build a new factory.
Each company will contribute 50 percent of the funding for the joint venture.
The new plant, to open in Wuxi, China, will expand production capacity to 30 machines per year, up from about 20 under the previous agreement. The companies said the venture will have an annual production output of up to 650 million Japanese yen (US$5.5 million).
An Ube executive said the joint venture will start exporting from China, including to the United States.
``At present, the jointly manufactured machines are only sold in China and henceforth the joint venture in Wuxi will be oriented as our factory in China,'' said Yuzuru Yamamoto, president of Ube Machinery Corp. in Ube City, Japan. ``I believe that in the near future, the plastic injection molding machines manufactured in our joint venture will be sold to [the U.S.], Southeast Asia and all over the world.''
The companies said they were motivated in part by increasing demand from China's automobile industry for large-scale presses.
The companies have made Ube's ST and PZIII machines in Wuxi, at the factory of Grand Tech Machinery Group Ltd., a subsidiary of Cosmos.
The joint venture is expected to begin operating in May, in the current facility, before moving to the new facility, the companies said.