Greater China plastics technology show case.

China's plastics machinery is a US$1.2 billion industry that comprises some 400 builders, mostly located in southeast coastal, Pearl River Delta and Yangtze River Delta regions. Accounting for 85% of the total, injection molding, extrusion molding and blow molding are the major machinery they produce, among which, injection molding has the largest share of over 50%. The industry has grown at an average rate of 30% per annum in recent years.

With some key players having reached a certain advance level, the locally produced machinery can basically satisfy the needs of the material processors and plastics products molders. However, a gap does exist in variety and sophistication when compared with their state-of-the-art counterparts in Germany and Italy. Machinery such as large-size granulator has to be imported. China exported plastics machinery worth a total of US$130 million in 2001, roughly 10% of its turnover. Import amounted to US$1.12 billion and is still growing at high speed.

The plastics machinery building sector is being driven by the tremendous demand of the fast growing markets of building material, packaging, IT and automotive.

In order to meet the requirements at home and abroad, the machine builders do keep a close track of the technological needs of the user markets that are shown in three aspects: light weight, complexity and functionality. Through technology transfer and joint venture, China is moving fast to digest, adsorb and innovate its own machines. They claim that they will soon be able to master the key technologies involved in gas assisted injection molding and, reactive and reinforced plastics extrusion.

Getting more focused on R&D, the Chinese are wasting no time in the area of micro electronics with the aim to develop the major computer controls in injection, extrusion, blow molding and calendaring.

Meanwhile the local mold makers are striving to catch up with advance technologies such as CAD/CAE and high-speed milling as well as high-speed CAM mold making. Improvements are expected not only in plastics molds but also in mold frames and standard parts. The production cycle in mold making will likewise be shortened.

Recent developments in the plastics machinery building and mold making have shown positive influence to the plastic processors in the sense that new products can now be developed faster and can be made better. Companies involved in plastics products are ready to restructure their product range.

Taiwan: Export-Oriented Industry

Closer to world and to the international level, plastics machinery made in Taiwan reported a production valve of US$783 million in 2001. About 85% or US$664 million worth of plastics machinery were exported with China as its biggest market. Import amounted to only US$266 million.

Since the last decade, many builders have moved their production facilities and assembly to the Main land China in the hope of cutting down their cost and getting a bigger share of the local market.

The SHOW CASE shows a good selection of very practical, high P/P ratio and efficient plastics machinery. The companies have been undergoing globalization since the past few years and have been growing very fast both in the domestic market and overseas.