The German group has spent $2.9m on the plant to produce three-layer blown film lines

The German group has spent $2.9m on the plant to produce three-layer blown film lines

Reifenhauser is setting up a plant in Suzhou, China, to produce three-layer blown film lines. The German firm has spent $2.9m (E2.5m) so far on the plant, which is expected to reach full production in April or May next year.

Reifenhauser Singapore managing director Juergen Rehkopf said he was expecting to sell between five and seven lines within the first year of production and up to 20 lines a year in three years’ time. The plant will only assemble completed lines using components sourced from Chinese suppliers now, although the scope may be expanded later.

Rehkopf said 80% of the lines produced in China would be commodity lines, adding that the lines produced in China would be priced lower than those built in Germany. Also, supplying lines from China would save time and transportation costs for Asian customers. Rehkopf emphasised that the machines made in China use “technology direct from Germany” and there would not be any difference in quality.

More companies in China, Thailand and Indonesia are purchasing better quality lines with higher levels of technology; a large proportion of the Chinese plant’s output will be exported in the first few years. However, China would be an important market since it is expected to show the highest domestic growth rate among Asian countries.

Reifenhauser is currently building a three-layer, 1,700mm IBC line at the Chinese plant, to be used for customer trials, training and demonstration. The line will be equipped with an automatic thickness control system and Reifenhauser’s new SFA centre-surface winder.