Chan

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

“Customers’ demand has gradually come back to expected levels,” Chan told Plastics News at the recent Chinaplas trade show in Guangzhou. “Orders for the second quarter through the fourth quarter are in place and in good shape.”

The wholly owned Taicang, Jiangsu province-based subsidiary was registered in 2004 and started production in 2005. Its current functions include toolmaking, injection molding and subassemblies.

As business grew, the company planned to build its own factory buildings in Taicang and purchased 23,000 square meters of land in mid-2008, with another 23,000 square meters on reserve. Although the expansion was held off in the face of gloomy global economic conditions, it may proceed in 2010, if growth continues.

The Taicang factory, with a workforce of 240, currently operates in leased space.

“The board is confident in the Chinese market,” Chan said.

Oechsler’s major end markets in China include automotive, appliances, industrial precision and footware, with signature products such as four-component injection molded remote keys. “Automakers in China are willing to raise quality, because the consumers appreciate international premier quality and performance.”

The global company is looking to apply its long-standing expertise in the medical field -- such as precision components for inhalers -- in the Chinese market.

In addition to Ansbach headquarters and the Taicang factory, Oechsler also operates a plastic manufacturing facility in Weissenburg, Germany, and a joint venture molding factory in Lipova, Romania.