A leading Taiwanese plastic machinery manufacturer and a Chinese medical equipment maker have broken ground on a new joint venture factory in central China.
Fu Chun Shin Machinery Manufacture Co. Ltd. (FCS) of Tainan, Taiwan, and Shengguang Medical Instrument Co. Ltd. of Pingdingshan, Henan province, are jointly building a new injection molding machine factory in Shengguang's medical device incubator industry park.
FCS, ranked as the fourth-largest injection press maker by the China Plastic Machinery Industry Association, said in a statement that the new JV will combine its machinery expertise with Shengguang's technology and resources in the medical field and develop high-precision and high-efficiency medical molding machines.
The JV, Pingdingshan FCS Plastic Machinery Manufacture Co. Ltd., also will produce molds, auxiliary and automation equipment. The 275,000 square foot factory is on a 12 acre lot.
FCS said the location in Pingdingshan complements its existing plants in south China (Dongguan) and east China (Ningbo), forming a national network for production and distribution. It's an important growth engine to expand into central, west and north China and raise FCS' brand awareness and market penetration on the mainland.
Shengguang's products include disposable syringes and, IV supplies. Its parent Shengguang Group operates other businesses including medical products distribution. Privately held Shengguang Group has annual sales of more than 5 billion yuan ($817 million), FCS said.
Publicly traded FCS said its board has also approved an expansion plan for the Ningbo factory without sharing further details, according to a Nov. 11 financial filings.