Reifenhauser: Production plant in China

Reifenhauser is setting up a plant in Suzhou, China, to produce three-layer blown film lines. The German firm has spent $2.9m 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.

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