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April 28, 2008 02:00 AM

Nissei building China plant

Steve Toloken
Assistant Managing Editor
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    Japanese press maker Nissei Plastic Industrial Co. Ltd., said it plans to open its first production plant in China, making its ANX series machines.

    The firm will break ground for the plant later this year in Shanghai, and start production next year, Nissei President Hozumi Yoda said April 17 at Chinaplas, in Shanghai. The site will have initial production of about 180 injection molding machines a year, a small fraction of the firm's annual production of 3,600 machines, Yoda said.

    Nissei, based in Nagano, Japan, will continue to make key components like controllers, pump units and servomotors at its Japanese factories, he said.

    Nissei is Japan's second-largest press maker, but has lagged some of its rivals such as Sumitomo Heavy Industries Ltd. and Toshiba Machine Co. Ltd. in setting up manufacturing in China

    Yoda said Nissei wants to balance China's cost advantages with maintaining the same quality as its Japanese factories and protect Nissei's intellectual property.

    He said the China plant will start by selling only in China. As labor costs and taxes in China rise, more domestic Chinese firms are upgrading their equipment, he said.

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