Chinese-American joint venture firm Qinchuan Future Plastic Machinery Co. Ltd., also known as QC Future, is setting up a wood-plastic composites extrusion factory near Xi'an, China, its first plant for making wood composite products.
Baoji, China-based equipment maker Qinchuan Machine Tool Group Co. Ltd. and Futuresoft Technologies Inc., a plastics technology firm in Millburn, N.J., established QC Future last year as a partnership. QC Future plans to open a plant with 33 million pounds of capacity later this year, said Wayne Song, chief executive officer of the Baoji-based firm and president of Futuresoft.
The plant, in Yangling, will aim to split production between domestic sales, such as doors and frames, and exports in items such as fencing for U.S. big-box home improvement stores, he said.
The factory will operate eight extrusion lines and two pelletizing lines, with QC Future supplying most of the equipment through its machinery manufacturing business, Song said in an interview at the International Symposium of Wood-Plastic Composites in China, Nov. 10-11 in Yangling. He also was interviewed afterward by telephone on Nov. 13.
Song, a native of Sichuan Province, said he sees great potential for the wood composite doors in China, as new housing goes up in the country, much of it in high-rise developments.
Building markets such as flooring are much tougher to crack, because existing Chinese products have price and other advantages. But the market for doors is more open, Song said.
The firm plans to use a mix of wood and PVC with foaming agents for the doors, and target the higher-end market, where doors and frames can cost up to 1,800 yuan, or about $240, he said.
``We are not targeting cheap PVC doors,'' he said. ``This looks like wood.''
Several large Chinese door manufacturers also are developing wood composite offerings, according to Song. QC Future wants its new Yangling plant to make fence extrusions as well, using a mix of wood, agricultural fibers and high density polyethylene.
Song said he owns interest in another Chinese wood composite factory in Qingdao. Last year that factory secured a contract to supply Home Depot with wood composite fencing and other niche products.
The plant is owned by Song and Liu Yong, who is also owner of Faith Group Co., a Manalapan County, N.J.-based PET recycler with a plant in Florence, S.C., and offices in Shenzhen and Ningbo, China. Song said he is a minority owner of QC Future and the Qingdao operation, which goes by the name Sylvanix.
Song's QC Future partner, Qinchuan Machine Tool, is one of China's largest machine tool firms, and also makes plastics equipment under QC Future's name, including extruders and blow molding machines. It employs 2,600 and owns controlling interest in Shaanxi Qinchuan Machinery Development Corp., which is publicly listed on the Shenzhen stock exchange.