In a move to better tap into the growing Asian market, Synventive Molding Solutions Inc. is expanding into a second facility in Suzhou, China, with plans to more than double its production capacity within two years.
The Peabody, Mass.-based manufacturer of hot runners and components said the expansion is necessary to keep up with its continued growth in the region.
The new facility is located near Synventive's existing Asian headquarters, which was established in 2005, said Mark Moss, executive vice president of market and product strategy.
The expansion will take place in two phases, he said in a Jan. 28 telephone interview. The new factory will feature 18,300 square feet of work space in 2010 and will increase to a total of 44,130 square feet in 2011.
The company plans to keep production of larger hot-runner systems in the existing 35,520-square-foot facility, and move production of hot-runner nozzles, tips, and small manifolds to the new facility in March.
The expansion will allow Synventive to add a new, larger test lab and offices for its research and development arm in Suzhou.
The new facility and equipment will undoubtedly enhance our market competitive- ness, said John Jofre, Synventive Asia president, a position Moss held from January 2005 to May 2009. We will seize [growth] opportunities [in China] and turn our increased capacity into actual results in the near future, Jofre said in a news release.
Asia represents about 20 percent of Synventive's global sales, said Moss, compared with 10 percent in 2006. Of course we consider [Asia] to be the highest-growth opportunity.
With 70 percent of its China sales in the auto industry, Synventive has been reaping rewards in what is now the world's largest car market. Moss noted the company is making progress expanding its business into domestic Chinese auto firms.
We also see within China opportunities to get into more electronics and consumer appliances business, such as printers, TVs and handhelds, he said.
Moss said the China business was affected by the downturn in the first two quarters of 2009, but it started to return during the second half, most likely due to stimulus measures Beijing put in place to encourage auto, appliances and electronics sales, especially in the rural areas.
Synventive's Asia operation employs 200, and that figure will increase to 284 by the end of this year. The firm has sales offices in five other Asian countries and Taiwan, plus four in mainland China.
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