Jwell building new factory, mulling acquisition

Chinese equipment maker Shanghai Jwell Extrusion Machinery Co. Ltd. is building a new factory in Suzhou to significantly expand its capacity, as executives say they are looking at an European acquisition.

The Shanghai-based company, which employs 2,000 at 13 factories in China, opened the initial phase of a 100,000 square meter (1.07 million square foot) facility in Suzhou, Jiangsu Province this year, driven by growth in China's domestic market.

General Manager Tony Liu said the company is continuing to see demand rising 20 percent a year as the Chinese government ups spending on infrastructure to stimulate demand. The firm is heavily involved in the building and construction sector, and makes extrusion lines for PVC, polyethylene, polypropylene and wood-plastic profiles, pipe and sheet, along with blow molding and recycling equipment.

Exports remain a troubled spot for the company, however, dropping 30 percent in the economic slowdown, Liu said, with most of their overseas markets being in other developing economies.

The company is also considering acquiring a European maker of extrusion equipment, because it would like to acquire "advanced management" and because it wants to enhance its brand image, Liu said.

Source from Ringier Trade .com