The new 9,300 m2 manufacturing unit in Chongqing is now complete and has already started producing and supplying plastic compounds based on both virgin and recycled plastic raw materials.
“Our investment has been very well received by both existing and new customers,” says CEO Magnus Lindahl.
Since 2005, Polykemi Compounds Kunshan, outside Shanghai, has had a strong presence on the Chinese market. From 2015, sister companies Scanfill AB and Rondo Plast AB also produce in Kunshan.
Polykemi Group is now furtherly expanding by opening their second factory in China. The 9300 m2 manufacturing unit in Chongqing is now producing the same high quality materials as at the other production facilities in Europe and the USA.
“It is one of the most growing regions in the country, with major universities and centers for both manufacturing and research. Many of our customers and their subcontractors are located in the area and thanks to the new manufacturing unit we can provide all our customers with even better service,” explains Magnus Lindahl, CEO of Polykemi Compounds Kunshan and Chongqing.
In the new plant, Polykemi has initially installed two compounding lines and they mostly produce compounds based on PP, PA6, PA66, PC and PC/ABS.
“Based on the mix of material types and the predicted order volumes, we expect the capacity of the two machine lines to be between 4,500 and 5,000 tonnes per year,” says Magnus Lindahl.
In Chongqing there are good opportunities for market expansion in south-eastern China.
In-house production on three continents
Chongqing is located near the populous Sichuan province in central China. A large part of the country’s automotive industry is located there, as well as a significant part of the manufacturing industry for park, snow and garden products. An establishment in the city also opens up opportunities for further expansion towards the provincial capital of Chengdu and the south-eastern parts of China.
“The interest in high quality recycled materials is growing in China, which combined with our virgin plastic compounds gives us a unique position in the market. We have the knowledge of how these materials can be combined for the best results, both in terms of quality and the increasing demands for sustainability that exist today,” says Magnus Lindahl.
The new plant in Chongqing, China, is now producing on two compounding lines and the expected capacity is 5,000 tonnes per year.
The new production facility is another step in Polykemi Group’s efforts to ensure that customers with production on several continents benefit from the same high-quality overall concept, whether they have their production in Asia, Europe or the USA.
“Our strategy is to be geographically close to our customers and offer them the same knowledge and wide selection of customized plastic raw materials on several continents,” says Magnus Lindahl.
In addition to the new investment in China, the group is also building its own manufacturing facility in North Carolina, USA. This facility will also initially be equipped with two production lines and production is expected to start in early 2023. This will enable Polykemi Group to offer both new and existing customers in-house production on three different continents.