Chinese JV produces large injection moulder

A 1MN ton Maxima two-platen machine is the first injection moulder to be built by a USA-Chinese joint venture company to compete in the growing Chinese market market.

Milacron says its new China joint venture, Milacron Plastics Machinery (Jiangyin) Co, delivered in April its first China-built injection molding press, a 1MN (1000 tonf) Maxima two-platen machine.

"This is a milestone achievement in several areas," according to Dr Karlheinz Bourdon, Milacron president of global plastics machinery.

"First, it is a large machine, which we have targeted as a window of opportunity in the Chinese market".

"Second, the Maxima is a world-class global design and the Chinese-built machine is identical to models we build in North America and Germany, while featuring a significant portion of Chinese domestic content".

"Third, we are extremely pleased with our team at Jiangyin and the progress they have made." After receiving its business license in June 2004, Milacron Plastics Machinery by mid-July sent a 14-member, multidisciplinary team of Chinese nationals to Milacron's factory in Malterdingen, Germany for 10 weeks of training.

Individuals were trained in specialty areas of engineering, assembly, testing, support and procurement.

They built subassemblies for injection molding machines, then applied that knowledge to team-assembly of a Maxima 1000 press, the same model as the first machine they would build back at the Jiangyin plant, said Bourdon".

""This start-up was a far different challenge from our India JV," noted Bourdon".

""The Indian market is heavily oriented to small tonnage machines".

"Our first machine there was a 50-ton (500kN)".

"While 90% of the China market is concentrated in smaller machines, under 500 tons (5000kN), we chose to compete in the rapidly evolving market for large, world-class molding capabilities".

"This segment is being driven by international companies, particularly automakers and suppliers who are setting up or expanding manufacturing in China"".

""We see a strategic window to gain leadership in meeting that large machine demand".

"Milacron is well positioned to manufacture world-class machines from 500 tons to 4000 tons (5000kN - 4MN) in China," he said.

The large machine focus led Milacron to partner with Jiangnan Mould and Plastic Technology Co (JMP), which specialises in molding for the automotive industry, said Jay Woerner, Milacron vice president of global manufacturing and sourcing.

The Maxima 1000 is one of many large IMMs ordered by the JV partner to be delivered by the end of 2005".

""We had the unique opportunity of an immediate market for large machines with our JV partner," said Woerner".

""We have been able to realise sales while ramping up our manufacturing." Production is underway on several more large Maximas for the JV partner.

In order to fast track production for the automotive molder, Milacron has also delivered two large US-built Maximas, which were installed at the JMP plant in Shanghai.

Milacron projects that market demand should strongly support domestic production of large machines in China, Woerner stressed".

""There may be some future opportunities to export around the Pacific rim, but at this point in time we are not planning to export production from China." However, the decision to build global machine designs could allow opportunities for strategic part sourcing from China, he noted".

""We are very pleased with the progress in developing our supply base to support local manufacturing and feel there could be opportunities in the future to use certain components globally at attractive prices to improve our cost structure.".

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