PolyOne Corp.'s new distribution facility in Shanghai will be its first in Asia — and its first outside North America — when it opens July 1.
“Distribution is the last piece of the puzzle for PolyOne in Asia, said Michael Rademacher, president of PolyOne Distribution Co.
“We have been encouraged by our major health-care customers in North America to locate there. We can support them with products, solutions, and in sales, operations and warehouse capabilities.”
Distribution currently provides roughly 35 percent of the $2.6 billion in annual revenues of the Avon Lake, Ohio, company.
The distribution center will reduce the time it takes for materials to arrive in Shanghai from the U.S. from 60-90 days to just a few days, said Rademacher.
“It frees [customers] up to concentrate on growth and operational efficiencies and will help them get to market faster.”
“PolyOne plans to work with its customers on their material needs, forecasting and planning so we can have the materials they need when they want them,” said J. Scott Horn, general manager of PolyOne Distribution.
“Most of the product our customers will be specifying is produced in the United States.”
Rademacher said the center is focused on health care, but will open up opportunities for other PolyOne materials.
Horn agreed. “It will provide the opportunity for cross-selling for us. They may use our materials, but they also may need our colorants or elastomers,” Horn said.
“The more you can do as a company makes us more valuable. It will also enable us to follow our customers that move to Asia to supply the local market.”
“This new facility will help our customers streamline their logistics and simplify their inventory management,” said Rademacher. “Our expertise is distribution and logistics and we will be able to do that for them. It helps them dramatically streamline their supply chain.”
The distribution operation will be located in existing PolyOne facilities in Shanghai and will leverage existing capabilities in credit, accounting and banking that PolyOne already has in Shanghai.
“It should grow rapidly,” said Horn. “And, over time, customers will be looking to specify more material locally as well. It is a natural entree for us.”