Singapore -- Armstrong Industrial Corp. said 22 Dec that it aims to nearly double its manufacturing size in China in the next three years, by setting up two new plants.
The maker of foam and rubber parts said that, together with its German partner, it has raised the capital of their joint venture by 32.0%.
Armstrong, which specialises in components to cut noise, vibration and harshness for the automotive and electronics industries, aims accelerate its automotive business growth in China.
"Armstrong remains committed to drive sustainable double-digit growth rate for our automotive business in China in the coming years," with a three-pronged marketing strategy across geography, key customers and value-adding products, said Gilbert Ong, chairman & chief executive officer.
"Along with our plans to build new plants, we are actively engaging more OEM customers at the design and development stage to establish a stronger market share in the long term. The group continues to invest and leverage on our regional management and technical capabilities to add greater value to our customers," Ong added, in a company announcement.
Armstrong and its German JV partner, Odenwald-Chemie Gmbh, has raised the capital in its 80% owned Armstrong-Odenwald (Asia) Pte Ltd from S$4.9 million ($3.8 million) to S$6.5 million.
During 2009-10, Armstrong has also increased the size of its existing plants in Changchun, Guangzhou and Wuhan, raising its overall plant capacity in China by 45.2%, from 210 809 sq.ft (19 550 sq.m) to 306 039 sq.ft.
The group said this allowed it to "match the aggressive business expansion plans of major automotive customers, such FAW-Volkswagen and Guangzhou Honda."
Armstrong's automotive business in China had 56% growth in fiscal year 2009 and an unprecedented performance for the first nine months of 2010 with growth of 62.0% from S$15.5 million in 9M2009 to S$25.1 million in 9M2010.
According to Bloomberg, Volkswagen AG intends to build plants in both Jiangsu and Guangdong provinces, as part of its plan to double production output to 3.0 million vehicles in China by 2013. Such buoyant plans coupled with an increasing urbanisation of the Chinese population, has led BOC International to forecast a 15% year on year jump in passenger car sales for 2011.
Armstrong's products include polyurethane foam items among a wide range of plastic and cellular rubber parts, for damping, insulation, sealing, cushioning (DISC) andrelated applications. Armstrong makes its parts by high-performance precision die-cut, rubber moulding, stamping, vacuum and heat press moulding.
Armstrong's operations are housed in its Singapore corporate HQ and factories across Singapore, Thailand, China, Malaysia, Indonesia and Vietnam.