Promens, a plastics processor based in Iceland, has signed an investment agreement with the government of Taicang, Jiangsu, China, to build a new production facility there. A special signing ceremony was held in Beijing, China on April 15. Icelandic Prime Minister, Johanna Sigurdardottir and Chinese Premier Li Keiang were among the attended guests.
The signing ceremony for the production facility was held on the same occasion as Iceland and China signed a Free Trade Agreement (FTA) between the two countries. The FTA, which was signed by the Icelandic Minister of Foreign Affairs and the Chinese Minister of Commerce, is the first FTA China has signed with a European country. “Opening a production facility in China enables us to improve even further our service to customers in China and the rest of Asia, meet demand from our global customers and at the same time reduce the carbon footprint of the company through improved logistics.” said Jakob Sigurdsson, CEO of Promens.
According to Promens, the new production facility in Taicang reduces the need for long distance transport of its products to Asia and thereby decreases delivery times. The city also offers good transportation services to other parts of China and Asia. The new production facility will open in several phases. The first phase includes rotational molding plastics production and will primarily serve the food and material handling industries. Preparations for the new facility are already well under way and the facility will start operation before the end of this year.
The next phases of the project will add other production technologies employed by Promens in Europe. “Thanks to successful partnerships with our most ambitious clients, we are experiencing significant interest from a number of global companies to employ our services in Asia as well. We are excited to be facing tremendous opportunities in a range of industries such as automotive, medical, personal care, chemical packaging as well as food packaging and processing,” said Bjarki Gardarsson, Managing Director of Promens Asia. In addition to a number of Chinese companies, Promens also provides services to an array of international companies, many of whom are already present, or planning to open facilities in China.