Samsung starts up Chinese engineering plastics plant

Samsung Cheil Industries Chemical Division has completed the construction of a new engineering plastics (EP) factory in Dongguan, Guangdong province, China. The DSEP (Dongguan Samsung Engineering Plastics Co., Ltd.) plant, designed to mass produce high value added EP used for mobile handsets and automotive parts, is built on a space of 22,000 sq m and its four production lines have the combined capacity of 27,000 tonnes/year.

The new plant in the manufacturing hub in southern China is strategically significant as Samsung Cheil Industries is now fully prepared to provide engineering plastics to Chinese customers across the country in a timely manner. The company now runs two factories in China -- Dongguan and Tianjin -- and one in Yeosu, South Jeolla Province, South Korea. The three-way facilities will not only boost the overall production volume but also reduce logistical costs thanks to the regional supply system, thereby strengthening the company’s strategic sales and production competitiveness in China.

Cho Nam-sung, CEO of Samsung Cheil Industries said: “By securing a production base in the southern region, which is the biggest market in China, the company has upgraded its supply capacity by a notch. In the future, we will focus on developing high value added next-generation materials so that Samsung Cheil Industries can further beef up its competitiveness in the fast growing Chinese market.”

Samsung Cheil Industries set up its sales unit in Shanghai in 2006 and built the first EP plant with the annual capacity of 24,000 tonnes in Tianjin in 2010, a move aimed at securing a production base in northern China. In 2012, the company expanded its PC 2 plant in Yeosu, increasing its polycarbonate production capacity to 240,000 tonnes/year in a way that achieved a cost competitiveness level in par with global frontrunners.

Samsung Cheil Industries expects that the production hub in Dongguan will help strengthen its competitiveness in the value added materials and production capacity in the rapidly growing EP market in China.


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