German moulder Oechsler optimistic in China

Ansbach, Germany-based precision injection moulder Oechsler says its China sales are recovering and it plans to proceed with an expansion plan in 2010 if the positive trend continues.

The global recession hit the company’s sales in the fourth and first quarters, says Vincent Chan, deputy general manager of Oechsler Plastic Products (Taicang). “But we’ve seen a recovery in recent months, largely due to Chinese policies to stimulate the auto and appliances markets,” he says.

“Customers’ demand has gradually come back to expected levels. Orders for the second quarter through the fourth quarter are in place and in good shape.”

The wholly-owned Taicang subsidiary was registered in 2004 and started production in 2005. Its current functions include tool making, injection molding and sub-assemblies.

The Taicang factory with a workforce of 240 currently operates in leased space. As the business grew, the company planned to build its own factory buildings in Taicang and bought 23,000 sqm of land in mid-2008, with another 23,000 sqm on reserve. Although the expansion was held off in the face of gloomy global economic conditions, it may proceed in 2010, if growth continues.