Growth in the injection molding sector is pushing up demand for machines in the country. Growing demand for injection moulding machines in China will see the new Nissei plant in Jiangsu province double its output as per Plastics News. The new plant scheduled to start up in October, will hike capacity from the earlier 180 units to make 300 machines in 2010 and 600 in 2011. A manufacturing presence in China will enable the Japanese machine maker avoid the threat of the high tariffs on imported moulding machines.
As part of the Chinese government’s economic stimulus package to increase domestic demand several moves conducive to growth of injection molding sector were taken in the form of lower interest rates, expanding domestic demands, lower export taxes, raising export tax rebate etc.
The 48,900 sq/ft China facility will initially assemble components from Japan but will increasingly use local components starting next year to lower costs.