Hot-runner supplier Synventive Molding Solutions Inc.'s China strategy of focusing on the automotive market has earned the company 100 percent annual growth since 2005. Now the Peabody, Mass.-based company has decided to enhance it presence in the Chinese electronics/electrical market.
At Chinaplas, held May 21-24 in Guangzhou, Mark Moss, president of Synventive Asia, said his firm's goal is to achieve a 50-50 split between automotive and electronics/electrical sales in China. Automotive represents 70 percent of Synventive's global sales, he said.
Synventive claims 24 percent of the global hot-runner market for the automotive industry, way ahead of the next competitor's 10 percent share. ``The automotive market will still be one of our key focus areas [in China],'' Moss said.
The company is targeting manufacturers of cell phones, connectors, laptops, switches, auto electronics and others. ``Our hot- runner technology can help them improve surface quality, reduce material waste and shorten cycle time,'' Moss said.
The 100 percent growth rate will continue this year, he predicted.
Synventive opened a 30,000-square-foot plant in Suzhou in 2005 and received ISO 9002 approval in October. Components of hot runners still come from local sources and imports from Germany and the United States. But local content will continue to increase, according to Moss.
About half of the Suzhou plant's output is sold in China. The rest is exported to other parts of Asia, as well as indirectly to Europe and North America. Moss said the share of domestic sales in 2007 may increase to 60-70 percent.
The Suzhou plant has been adding staff constantly, he said. With 18 workers added in May, the headcount totals 85 and will top 100 by the end of year. He said the factory turnover remains below 5 percent, relatively low in manufacturing regions in China.
The company opened a branch in Yokohama, Japan, in February, focusing on Japanese automakers and suppliers and their global transplants. Sales and service manager Benjamin Wang said the company recently shipped a hot-half system for making Nissan bumpers to Japan.
Within China, Synventive also has sales offices in Ningbo, Shanghai and Shenzhen.