ORLANDO, FLA. (April 6, 1:20 p.m. ET) — Nanjing Useon Extrusion Machinery Co. Ltd. is planning to start a production site in Akron, Ohio, to assemble extrusion equipment.
The Chinese company is “finalizing the plan” with its joint venture partner International Foam Consulting LLC, founded by William Buchanan in 2005. Useon and IFC formed the venture in the second half of 2010 to market and distribute the Useon machines.
“We plan to source electrical parts in the U.S., bring mechanical parts from China and assemble the final products here,” said Ma Ning, Useon general manager.
He added that the scale of production will depend on how the market responds.
Ma said the company is also mulling a new production in India. He said Useon supplies foam machinery to Owen Corning's factories in India and China.
Useon's annual sales are around 60 million yuan (US$9.5 million) and 70 percent of that comes from export.
“China's domestic market competes on price, which makes the margin very thin.” Ma said the addition of production and technological improvement in the U.S. may help raise its profile in China and promote domestic sales.