Notable Events

Sino-Indian joint venture manufacturing plant for plastic injection moulding machines established in India

An agreement to establish the joint venture of JH-Welltec Machines (India) Private Limited was signed between Jishu-Hozen Machines Private Limited (JHM) and Welltec Machinery Limited (WML) on 13 August 2010 in Pune, India. This joint venture is the manufacturing plant for the production of JH-Welltec brand plastic injection moulding machines in Ahmadabad, India. Mr. Wilson Wong, General Manager of WML, and Mr. Hiten Nagadia, Director of JHM, attended the signing ceremony.

After finishing the legal and company registration procedures, JH-Welltec Machines (India) Private Limited is expected to formally come into operation in mid-October 2010 and start manufacturing the Se Greenline series servo-driven energy-saving injection moulding machines ranging from 90 to 750 tons. The first batch of machines will be delivered to customers in November. This will mark an important strategic move of Cosmos Machinery Limited (CML, the holding company of WML) in tapping the international market in addition to its other overseas service centres.

WML, one of the key wholly-owned subsidiaries of CML, and its Welltec brand injection moulding machines have been enjoying great reputation in the plastic machinery industry. JHM is a prominent Indian manufacturer of injection moulding machine accessories. The joint venture is absolutely a strong alliance in boosting the sales of JH-Welltec brand injection moulding machines in India.

"The joint venture aims to improve the worldwide market arrangements and distribution channels of Welltec injection moulding machines as well as increase the market share of Welltec brand injection moulding machines in India," said Mr. Wilson Wong. "JHM is an experienced machinery manufacturer with high working abilities and technology level which we believe will be capable of keeping machine quality at a very high standard in the new manufacturing base. In recent years, the Indian plastic industry has developed rapidly and there is a year-after-year growth in the demand for injection moulding machines in India. Since 2009, the Indian government has been implementing the anti-dumping rules and imposing high tariffs on injection moulding machines from China, prompting difficulties in selling China-made injection moulding machines in the Indian market. The production base will enable CML to have fast penetration into the Indian market and greatly strengthen the competitiveness of WML without worrying about the anti-dumping regulations. At the same time, we can widen our market by making use of JHM's sales network in many industrial cities in India. It is believed that the sales of injection moulding machines in India will have strong growth in the near future while the set-up can definitely bring mutual benefits to all stakeholders in the long run."

Mr. Hiten Nagadia, a business partner of WML, expressed: "The demand for injection moulding machines has exceeded the supply in the Indian market after the implementation of the anti-dumping rules. The plastic products manufacturers often had to wait a long time before they received the ordered machines. Some of them even chose to buy the second-hand machines. The new joint venture can just fill the market vacancy." Mr. Nagadia is full of confident of the joint venture which he expects will be one of the top five injection moulding machine manufacturers in India within three to five years.