Building on a healthy 65 percent growth rate in 2009, German compounder Akro-Plastic GmbH is expanding its capacity in China. The Niederzissen-based company's second Suzhou plant is scheduled to start production in the third quarter.
Akro Engineering Plastics (Suzhou) Co. Ltd.'s existing plant, which opened in 2005, has an annual capacity of 6 million pounds, the company said at the Chinaplas show, held April 19-22 in Shanghai. The new plant has a designed capacity of 88 million pounds, and the first phase will bring 10 million pounds of capacity on line this fall.
The expansion will increase the company's head count from 80 to about 100.
Automotive represents 70 percent of our nylon compounding business, since our German parent company's expertise focuses on the auto industry, said Frank Tao, sales and marketing manager. Other key markets include electrical and electronics as well as industrial equipment.
Tao said the company set the growth target for 2010 in the 50-70 percent range, in line with the growth rate of China's booming auto industry.
Sales in the first few months of this year are right on track. We watch our pace and don't want to grow too fast, he said, because that would put too much pressure on production, quality and service.
Akro's output in Suzhou mostly serves the domestic market, with about 5 percent exported to other countries including Japan.
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