Moulding Manufacturing China Priorities

30 Plastics China Technologies, Markets and Growth Strategies to 2008 

OEMs want a partner overseas for manufacturing and distribution, and being in the custom business requires plastics moulders to go where the customer needs them. A lot of OEM customers have gone to a model where they develop products in North America, and then manufacture globally for better efficiencies and economics. For this reason, OEMs tend to go with one supplier that can support the OEM s needs globally, rather than select two or three suppliers in as many regions. This trend is expected to continue, with increasing emphasis on Asia - specifically, China. 

Moulders who have already gone global agree that locating a plant overseas is not easy. There are risks to these ventures. Despite China s more open tendencies, it is still a communist country, which adds an element of unpredictability. The political tide can turn quickly in China, but such action is unlikely as the Chinese government has as much at stake in foreign investments as do multinationals. 

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