Modern Plastics Worldwide - July/August 2009 - dae uptlax

WORLD TOUR
ity of China’s $586 billion fiscal stimulus
package is destined for infrastructure and
construction, other government initiatives
are boosting the processing sector. Tax
rebates have seen auto sales in China at
record levels of late, while ready availability
of credit and VAT (Value Added
Tax) rebates have boosted capital investment.
A voucher distribution program
has ignited appliance demand, to cite
another example.
As part of its efforts to boost the local
economy, China in January exempted
purchases of injection molding machines
from a 17% VAT burden, a move that
helped drive sales, according to Helmar
Franz, chief strategy officer of Ningbo
Haitian Co. (Ningbo, China). “After an
extended New Year break, buying activity
returned in March and we are now
at 80% of the peak level of 2008,” said
Franz, who has also noticed a fall-off
in production at many multinationals
in China. “In a recession, it’s easier to
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lay off people and cut back on production
in China than in a home market in
Europe.”
Echoing Haitian’s sentiments, Taiwan’s
Fu Chun Shin (Tainan) reported
that orders in January and February
of this year were at just 20% of the
level of 2008. However, “During March
through May, we returned to a level of
70%,” said John Hsieh, planning department
manager. “Outside China, Africa is
doing quite well because it’s not as integrated
into the global economy.”
Packaging progress needs more
efficient equipment
Netstal China Ltd. (Shanghai) is also
“quite happy” with recent business in
China. General Manager Andreas Nydegger
said his company is gaining market
share in the higher cavitation market for
72- and 92-cavity PET perform molding
systems, though this remains a smaller
market than that for lower cavitation units.
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“The key to success in the China market
is (supplying) machines that are easy to
set up and maintain. Chinese processors
are not quite ready for the cavitations of
144 and even 192 that we are seeing in
North America,” said Nydegger. He added
that Chinese processors are showing an
increased appreciation for the benefits of
reliability, less material usage, and faster
cycle times. Although a typical Netstal rigid
packaging system costs four times more
than 15 Chinese machines, production efficiency
is better by a factor of six to seven
and ROI is around one year, he claimed.
Packaging production efficiency will be
a key component of revisions that are to
be made to China’s packaging legislation.
Observers say this change will push industry
consolidation and demand for energy
efficient machinery.
Hosokawa Alpine (Augsburg, Germany)
Divisional Manager Christopher Tarrant
says orders for blown film extrusion
lines such as the ones his company makes
...this that?
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MODERN PLASTICS WORLDWIDE • JULY/AUGUST 2009 35