By Steve Toloken
China -- Beijing Ju-Ling-Yan Plastic plans to build a new factory in South China next year.
The Beijing-based firm will invest 40 million yuan (€3.7m) to build a plastic and rubber compounding plant in Foshan. The plant will give the compounder a base for the growing automotive industry in the region, to serve both Chinese and Japanese carmakers. Guangdong is one of China's largest automobile manufacturing bases, with significant investments from Japanese carmakers Honda Motor, Toyota Motor and Nissan Motor. Honda, for example, boosted capacity at its joint venture in the province in 2006, to 360 000 cars. That plant exports Honda's Jazz subcompact to Europe.
The Ju-Ling-Yan factory for Foshan is expected to have two extrusion lines supplied by Japan Steel Works, with capacity for about 9000 tonnes per year.
Manufacturing director Zhang Xin said the plant will complement the company's existing capacity of 20 000 tonnes from seven extrusion lines at its Beijing headquarters. Ju-Ling-Yan has already expanded capacity in Beijing by about 20 percent in the past year by adding two extrusion lines.
Xin added that the firm makes PP (polypropylene) compounds for car bumpers, instrument panels and other automotive applications, with about 70 percent of its production ultimately bound for Japanese carmakers. Besides PP compounds, it also compounds rubber, using a mix of Japanese and Chinese extrusion equipment.