Shenzhen-based Chinese mold maker King Tech Mould Co. Ltd., a first-time NPE exhibitor, has just finished an expansion that doubles its capacity, enabling the company to accommodate healthy growth it anticipates to see from export markets.
The expansion on the existing site increases its annual capacity to about 600 sets of molds, said General Manager Eric Zhang.
The total export growth is expected to reach 30 percent in 2012, Zhang added, expecting fast growth from France and Poland.
“Our sales growth is not necessarily tied to the general condition of the U.S. and European markets,” Zhang said. “We find the right customers and keep growing.”
North America takes up 30 percent of the total export revenue, and Zhang expects it to grow 15-20 percent this year.
Exports represent 90 percent of King Tech's sales.
With a staff of 100, the company makes precision molds, multicavity molds, large-size molds, two-shot molds, hot-runner molds and insert molds for the automotive, electronics and medical industries, among others. It also takes injection molding work.
Despite rising costs in China and the strengthening yuan, Zhang said he manages to keep the price competitive. The well-established mold supply chain based in Shenzhen helps the company stay lean and act fast.
“There have been a lot of changes in the mold and tooling business since 2008,” he said. Some companies didn't survive, but King Tech kept the business relatively stable and now is back on track for growth.
Sales slipped from $4.5 million in 2007 to $4 million in 2008, and further down to $3.5 million in 2009. They bounced back to about $4.8 million in 2011 and are expected to rise to a record $6.4 million in 2012.