22 Oct 2004
By David Shaw, ERJ staff
Dusseldorf--Rep Group, the French injection moulding machine maker, has formed an alliance with Tung Yu, a Taiwanese compression mould machine maker. Initially Rep will sell and service Tung Yu equipment in Europe and the Americas.
That is only the first step, said Rep chief executive Bruno Tabar. The two companies also aim to create injection moulding machines which can compete in the Chinese market at a price Chinese customers are willing to pay.
Tabar said customers in China have not been willing to pay the prices which exist in Western Europe or the Americas. Prices in China are up to 60 percent below prices in other markets, he said.
Tabar said Tung Yu has a large factory already in China, and the two companies are currently working to create injection moulding machines which can be made in China and sold there at prices close to the prevailing market price. Tabar expected the details of the deal to be finalised, and production to begin in 2005.
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