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GE plastics, a global supplier of plastic resins and an arm of the General Electric Company, is expanding its production lines in China to achieve double digit growth for this year, a senior company official said.

 

"We will further expand our Nansha compounding plant in South China's Guangdong Province this year, aiming to triple the plant's production capacity based on that of 2004," Alan Leung, president of GE Plastics Pacific, told China Daily in an exclusive interview.

 

GE Plastics added eight production lines to its Nansha plant last year and is expected to add another eight lines this year.

 

With sales revenue exceeding 1 billion yuan (US$125 million) in China last year, GE Plastics has two compounding plants in Guangdong and Shanghai and a specialty film and sheet facility in Guangdong.

 

"We are trying to place our plants in places that are closest to our customers," said Leung. "A decade ago, most of our customers were from Pearl River Delta cities such as Zhuhai and Shenzhen. And now we see the second round of the boom in Shanghai and Suzhou in East China's Jiangsu Province."

 

Early reports said that GE Plastics would open a new plant in Nantong, Jiangsu Province, to meet increasing demand.

 

Leung also disclosed that GE Plastics are considering tapping into China's western and northeast regions where there is a comparatively low labor cost and less fierce competition.

 

Leung believes GE Plastics' strong research and development capabilities give it an edge over competitors.

 

In 2003, GE Plastics opened the US$64 million China Technology Centre in Shanghai, one of its four global research and development facilities.

 

GE Plastics recently supplied materials for the Shanghai South Railway Station roofing project, one of the largest single orders of Lexan sheet ever received by the business.

 

The roof, the largest round roof of its kind in the world, protects and illuminates the main interchange for passengers and trains. More than 25 metric tons of Lexan multiwall sheet were used to construct the six 360-metre-long, parallel roof sections.

 

The company's products are used in a wide range of industries such as building and construction, aerospace and transportation and electronics. "We will make more effort to explore the healthcare, automotive and building sectors, all in their nascent stage but boasting huge potential," Leung explained.

 

Although soaring crude oil prices have squeezed the profit margin of the plastics industry, Leung is optimistic about the future of the petroleum-based sector given the fast- growing economy.

 

(China Daily May 9, 2006)