Chinese injection press maker Guangdong Yizumi Precision Machinery Co. Ltd. plans to build a factory in the Shanghai area for making large-tonnage machines.
The Foshan, China-based company plans to spend about 50 million yuan ($7.3 million) on a 160,000-square-foot factory in Suzhou to open in summer 2011, said CEO Richard Yan.
While Yizumi said its growth has been solid up 30 percent in 2009, driven by China's domestic market the company also is leery of growing too quickly and worries that demand in China's market overall could be somewhat amplified, Yan said in an interview at the Chinaplas trade fair, held April 19-22 in Shanghai.
Still, he said Yizumi's first half of 2010 will be up 50 percent from the 2009 pace, with its biggest markets being consumer electronics and electrical appliances.
The company is focusing on hybrid machines that are not full-electric but adopt some servo-motor technology to save energy. Yan sees most of the future demand in China coming not at the top end but in midrange machines.
The market demand is in the middle range now, Yan said. It will dominate the market for at least five years, this type of machine.
The company uses various combinations of Chinese and Japanese servomotors and servo pumps, Yan said, noting that while Chinese servo technology is not as good as Japanese or German counterparts, delivery times are much better.
The company plans to focus the Suzhou factory on larger machines of more than 1,000 metric tons of clamping force, and also will be enlarging its product range from the current 1,800-tonne model to 2,200- and 2,600-tonne models.
Right now, Yizumi makes about 250 plastic injection presses a month, and also has sizable units making rubber injection molding machines and die-casting equipment. The Suzhou factory also will make that rubber and die-cast equipment.
Yizumi was founded in 2002, one of several press makers that emerged in that period in South China, started by former executives at Hong Kong's Chen Hsong Holdings Ltd.
Yan held executive positions at Chen Hsong and at Hong Kong's other large press maker, Cosmos Machinery Ltd., before joining Yizumi two years ago.
He said Yizumi also believes it can be competitive long-term in China's market with a more diverse ownership structure designed to make it more responsive to customers.
He said, for example, that the company gives ownership stakes to top management, including in its three divisions: That is one way we compete.
Yizumi also is planning an initial public offering in 2011.
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