In their search for mass production sites, plastic processors tend to set their gaze to the east. While that in itself is nothing new, it just so happens that Chinese companies have now adopted a similar tactic – and when they look east for cheaper manufacturing opportunities, their sights are now focused on the US.

One case in point in Taizhou Fuling Plastics, a Chinese producer of plastic straws, cutlery and other kitchenware, which according to several media reports is planning to set up a plant in Allentown, Pennsylvania / USA. The company reportedly has already rented a production hall, and plans to invest more than USD 21m in the site over the next three years, creating at least 75 jobs. If all goes as planned, the Chinese group intends to set up additional facilities throughout the US in the future.

Being able to produce in Pennsylvania allows the Chinese company to cut down transportation costs to its leading end market – the US. At the same time, however, Taizhou Fuling Plastics says the move was also prompted by rising salaries in China, which is no longer considered to be the world’s “low-cost workbench”. Another advantage of the US site is the availability of cheap energy and feedstock, both a result of the shale gas revolution. The large-scale exploration of shale gas has thus not only turned the tides in terms of feedstock production, it is increasingly having an effect on plastics processing, too.

Andrew Cole