The era of Chinese plastic machinery is arriving, and nobody can deny it, said Mark Miao, general manager of Avian (Shanghai) Machinery Co. Ltd.
Last year Miao sold Avian (Shanghai) Machinery to Rapid Granulator AB, based in Bredaryd, Sweden, but after the sale he stayed on with the company. He said Avian hopes to grow and become the world's largest maker of recycling equipment.
Miao unveiled Avian's latest news at the recent Chinaplas show in Shanghai including the launching of new products, the expansion of manufacturing capacity in Shanghai, and extending it distribution network into the United States.
Among featured products, Avian touted its newly developed, high-energy-efficiency recycling line for post-consumer plastic waste. Miao said the machine offers double the capacity of similar products in the marketplace. Eight units were sold during Chinaplas, for a total of more than 10 million yuan ($1.46 million) in sales.
Avian was founded in 1982 in Australia and in 1997 the firm transferred production to China. Now, under Rapid Granulator, Shanghai-based Avian is operated as an independent brand under the umbrella of International Plastics Equipment Group Inc. in the Pittsburgh suburb of Cranberry Township.
Although Rapid filed for financial reorganization last year in part blaming the cost of the Avian acquisition Miao said Avian is reporting fast sales growth.
Although the financial crisis affected us in early 2009, we saw domestic demand quickly pick up in the second half of the year, he said, Overseas orders also have been on the rise this year, especially for high-capacity, low-energy-consumption recycling machines.
At the April 19-22 Chinaplas show, Miao said regarding the firm's growth: So far this year, we've achieved the same amount of sales as in the entire year of 2009. He added that he expects the firm to more than double annual sales from the 2009 level with exports and domestic sales to increase at similarly fast paces.
About 60 percent of the equipment Avian makes in Shanghai is shipped out of China, while the remaining 40 percent fills domestic needs.
The company is adding 300,000 square feet to its 269,000-square-foot Shanghai plant, as well as boosting capacity there by June 2011, Miao said. Another planned expansion at the site will add nearly 700,000 square feet by mid-2012, he said. The number of employees will increase from 250 currently to more than 800, he said.
The firm said it will launch a U.S. sales and distribution branch this year.
In just five years, Miao predicts, China will become the leader of the global plastic machinery industry, both in the sense of market and production. As for foreign brands that once dominated, those who establish themselves well in China the primary market will win, and those who miss China will miss the future.
Chinese manufacturers are not only expanding in scale, Miao said, they also are increasing their research and technology investments and upgrading technology. It's been 13 years since I returned [from overseas] to China, he added. I have been witnessing the incredible growth and development right here.
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