Hong Kong Datong Machinery established a joint venture in India

Hong Kong injection molding machine manufacturer Datong Machinery Co., Ltd. has established a joint venture in India with a joint venture manufacturer Jishu-Hozen Machines Pvt. Ltd (India), a local manufacturer of injection molding machine parts in India.

Huada Machinery Co., Ltd. is one of China's largest press manufacturers Datong Machinery Co., Ltd. This joint venture is to expand the company's strength in India.

The new plant in Ahmedabad, India, is held by Jishu-Hozen Corporation and will receive majority approval. In January, it will formally approve and produce the Se Greenline series servo-driven energy-saving injection molding machines from Huada Machinery.

Huang Yewei, general manager of Huada Machinery Co., Ltd. said in an interview with Plastics News • China on March 12th that the new plant is expected to produce about 100 presses this year and that the annual output will be increased to 300-400 units in five years. .

Huang Yewei said in the company statement: “Establishing our own production base in India will allow the parent company Datong Machinery Co., Ltd. to penetrate the Indian market quickly without having to be subject to the high anti-dumping tariff imposed by the Indian government.” He said that the size of the Indian plastics market and its Demand for injection molding machines has grown rapidly in recent years, but high anti-dumping duties have created significant obstacles for press makers in mainland China and Hong Kong, creating favorable opportunities for Taiwanese and Korean manufacturers. Huang Yewei said that the new plant in India is the first overseas plant of Datong Machinery. This move is an important strategic measure for the expansion of the international market and complementing the existing overseas service centers. The plant will use Jishu-Hozen's sales network in major industrial cities in India for product sales.

Hiten Nagadia, a board member of Jishu-Hozen, headquartered in Pune, India, said that since the introduction of anti-dumping duties, the supply of presses in India has been in short supply. Buyers need to wait for a long time, which makes the used machinery popular: “The establishment of our joint venture plant will effectively Fill this market gap."

The initial cooperation between the two parties was to supply seven types of models to customers, but they said that they are striving to become one of India's five largest manufacturers of injection molding machines in 3-5 years.

Datong Machinery Co., Ltd. said in a statement: “Given that the demand for [plastic injection molding machines] exceeds supply, coupled with the huge potential in the Indian market, we believe that we will achieve significant annual sales growth in India in the next few years.”

The two parties said that at present, some of their parts and components are provided by Huada Machinery's factories in China, and other parts are purchased locally in India. Most of the assembly work is carried out by Jishu-Hozen's engineering personnel. Huada Machinery is equipped with on-site software engineers and quality management personnel in Ahmedabad.

The joint venture is called JH-Welltec Machines (India) Private Ltd. Huang Yewei said that the reason for choosing the site in Ahmedabad is because it is India's press manufacturing center.

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