Georg Fischer expanding new Beijing pipe plant

Plastic pipe maker Georg Fischer Piping Systems has opened a plant in Beijing to tap what it said is demand for higher-quality building components, as it saw sales growth there rise 45 percent in the first half of the year.

The Schaffhausen, Switzerland-based firm said the 58 million Chinese yuan ($8.7 million) Beijing factory has the capacity to make 20,000 kilometers of pipe annually. China is now its largest market, the company said.

The investment came as the firm announced a partnership in September with Dow Chemical Co. to promote a new Chinese national standard for polyethylene raised-temperature-resistance pipe for hot and cold water applications.

That new standard will create opportunities because it will “carve out a high performance segment” in China’s existing pipe market and increase regulatory standards, the company said. The two firms plan a series of technical seminars across China targeting designers, testing bodies and others.

As China has sought to upgrade its water and gas piping systems, and consumers pushed for more reliable systems, China accounted for 14 percent of GF Piping Systems total sales in 2009, and that is likely to be “significantly more” in 2010, said Pietro Lori, president of GF Piping, in a statement.

The piping systems unit had 2009 sales of 1.06 billion Swiss francs ($1.09 billion), down 13 percent from 2008, as the company implemented restructuring and cost cutting programs. First half 2010 sales in the unit were 584 million Swiss francs ($603.0 million).

Lori said he expects the 16,700 square meter Beijing factory to be at high capacity utilization rates within two years.

It will open with two extrusion lines, with plans to add additional lines to boost capacity to 80,000 kilometers of pipe annually, likely within one year of finishing the initial phase of investment, the company said. That initial phase is expected to be complete in August 2011.

The factory employs 60 now with plans to add another 100 by the end of the initial phase.

The Beijing factory will make building technology systems for hot and cold water installations, along with heating and geothermal systems. It will also make fittings, valves, instrumentation and control technology, and will have an on-site training facility.

The factory gives GF Piping 12 factories in Asia, doubling its footprint there in the last five years, the company said. It opened a manufacturing operation in India last year, and one in Malaysia in 2008.

Source: http://plasticsnews.com