Victor Taichung Machinery enters recycling business

Sep 23, 2008

By Steve Toloken

TAIPEI, TAIWAN (September 23, 2008) -- Taiwanese injection press maker Victor Taichung Machinery Works Co. Ltd. is diversifying into the recycling business with the purchase of Taiwan's largest plastic container recycler.

Victor Taichung, based in Taichung, Taiwan, purchased Sunny Environmental Consultants Ltd. to get a foothold in what it said is the island's growing recycling industry, at a time when the local plastics industry is facing environmental pressure from bag bans and other product restrictions.

Sunny has recycling plants in Tainan county in southern Taiwan and Taoyuan county in the north, where it produces PET, polyethylene, polypropylene, polystyrene and PVC flake. Victor Taichung said it plans to expand the business, and said that Sunny has about 40 percent of Taiwan's plastic container recycling market.

The T$200 million (42.5 million yuan) purchase gives Victor Taichung an 84 percent stake in Sunny, and is the company's first foray outside its traditional businesses of making injection molding machines and machine tools.

Martin Li, senior manager in the overseas marketing department, said the company sees recycling as a good longer-term business. It recently developed its first equipment for the PET recycling industry, introducing a pelletizer last year, and plans to use that equipment in its Sunny subsidiary, Li said.

Li spoke during an interview at the Taipei Plas 2008 show, held September 18 to 22 in Taipei.

Source: PLASTICS NEWS STAFF

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