Kraiburg TPE on a path of expansion; to increase capacity at Malaysian plant

While some materials companies are consolidating, TPE maker Kraiburg is expanding. According to Roland Ritter, Director Asia Pacific, the company, which has a facility in Malaysia, will expand its current capacity, to be ready for operation in 2017.

“We increased the size of the facility last year to add on another 5,000 tonnes output. By the end of 2017, we will be able to produce 15,000 tonnes/year of TPEs,” said Ritter, speaking to PRA at the recently concluded Chinaplas show in Shanghai.

Furthermore, the Germany-headquartered company has doubled its revenue in Asia, over the last five years, with a 20% increase in turnover in the first quarter of 2016, compared to the same period in 2015.

Globally, the firm has seen its sales revenue increase by 13% in 2015, compared to 2014.

When asked if the slowdown in China had affected sales, Ritter added, “No, in fact, our sales have increased significantly. Perhaps, we can attribute this to the implementation of our R&D and sales/service strategy that are aligned to meet market needs.” He also said that Kraiburg’s business in China has been “positively encouraging.” It has been selling to the Chinese market since 2004.

Though there are no plans for a facility in China, Ritter said the company will be expanding its warehouses to increase “logistical efficiency while providing better services.” He also added that more warehouses will be added on across China in the near future.

To support its growing sales, Ritter said Kraiburg will be adding on more sales staff and technical service teams in China, South Korea (where it is opening an office), Thailand and Vietnam. It also has sales offices in Hong Kong, Taiwan and India, and works with partners in Japan, Australia, New Zealand, Indonesia and the Philippines.

What’s the secret to its success? “We have a motivated staff. Teamwork is important, too.”

At Chinaplas, it was focusing on two new compound series: UV/HF and UV/HF/SF targeting new high flow technology for window encapsulation, for the automotive segment.

“We are investing in new product development and lab testing equipment for the automotive sector,” said Ritter, adding that Kraiburg’s TPE compounds have also been globally approved in the Approved Source List for car models produced in different regions.

“We also recently launched a colour compound service. Our TPEs can be colour compounded upon request,” said Ritter.

Kraiburg commenced operations in Nilai, Malaysia, in 1996, with three staff. In 2002, it expanded and moved to Puchong, and moved again to Seri Kembangan in 2008, when it established a facility. Its initial production capacity was 2,500 tonnes/year. It will be celebrating its 20th anniversary in Malaysia this year, with its current staff force of 80.