Relocation to New Factory – The Global Capacity of Yizumi Surpasses 4 Billion Yuan

Last year, the industry prospect had been very promising and Yizumi’s orders had also increased significantly. The production schedules were full each month. Nonetheless, as its capacity was inadequate, some deliveries were delayed. The production capacity issue has been impeding Yizumi’s development. To raise the production capacity, Yizumi moved the product lines of high-speed packaging system and all-electric injection molding machine to Wusha Molding Factory Phase 2 at the beginning of the year. Besides, the phase 2 factory in progress is expected to begin its operation next year. The global capacity of Yizumi will be highly likely to surpass 4 billion yuan next year and the capacity issue will no longer be a headache for Yizumi.

Phase 1 factory attains 350 million yuan of capacity

As the second new factory at Wusha, Yizumi molding factory occupies a land area of more than 90,000 square meters. In December 2016, the phase 1 factory with 23,000 square meters had already begun production. As of now, with the completion of the relocation, the phase 1 factory is mainly used for parts processing, the production of high-speed packaging system and the all-electric injection molding machines.

A new factory will signify an improvement in the capacity. For instance, the current facility can produce at least 30 sets of high-speed packaging systems (machines and molds). By the 4th quarter of 2018, the monthly capacity for high-speed packaging systems is likely to be raised to 40 sets.

Additionally, the all-electric injection molding machine project has a very good head start in the beginning of the year. Many customers in the downstream industries have undergone industrial upgrading resulting in a substantial boost for the demand of the precise, highly efficient, all-electric injection molding machines. The factory currently has received adequate orders. The monthly capacity in the first half of the year is about 20 sets, while that in the second half of the year is expected to be increased to about 30 sets per month.

“The relocation to the new factory will elevate the management efficiencies. The growth in the capacity will also improve significantly. The phase 1 factory is expected to satisfy the capacity requirements in relations to 350 million yuan of sales in the high-speed packaging systems and all-electric injection molding machines,” said James Zhang, Yizumi’s Deputy Managing Director cum General Manager of the Injection Molding Machine Division.

Total production capacity may surpass 4 billion yuan with the operation of the phase 2 factory

On one side of the phase 1 factory, the phase 2 project has been actively undergoing construction in the meanwhile. According to plans, the phase 2 project will increase the production workshops by 57,000 square meters. It is expected to be completed in 2019. At that time, the product line of rubber injection molding machines will also be relocated here from Gaoli factory in Shunde.

Big changes to the two-platen injection molding machine production line are also anticipated this year. In view of the supply capacity of the heavy-duty processing equipment and to further satisfy the demands of auto parts, home appliances industries along the Jiangsu and Zhejiang provinces, the production of two-platen machines will be relocated to Yizumi’s Wujiang production base in the middle of the year. Currently, the Wujiang production base can fulfill 500 million yuan of capacity requirements of the two-platen machines as well as 200 million yuan of capacity requirements of the robotic automation products.

In other words, in the early part of next year, Yizumi’s Gaoli factory will be mainly used in the production of die casting machines. It is expected that the maximum capacity will exceed 1 billion yuan. Meanwhile, the Shunde Wusha injection molding factory and compression molding factory will also be mainly used in the manufacturing of three-platen injection molding machines, high-speed packaging systems, all-electric injection molding machines and rubber injection molding machines. The total capacity can reach 2.2 billion yuan. In addition, the orders received by the factory in India, which had begun operation in June last year, are very promising at the moment. This year, the planned production is 200 to 250 sets of injection molding machines. The existing factories can satisfy a capacity of 150 million yuan.

As such, after the completion and operation of the phase 2 molding factory, four Yizumi production bases in Gaoli, Wusha, Wujiang and India are expected to surpass 4 billion yuan at their maximum production capacities.

An open, global innovation center is on its way

For the future investments, besides the capacity expansion, R&D is also an important target for Yizumi. As of now, Yizumi is planning to build a R&D building of 20,000 square meters, including a testing center for new products and new technologies, a global innovation center, a technology exposition hall, a reporting hall, etc.

In light of the planning for the two centers, James Zhang further reiterated that with the establishment of the Germany’s R&D center, the German team will import from Europe the technology solutions that have been commercialized or pending to be introduced to the market. The German team will also assimilate and apply the technology solutions in the innovation center, in addition to simulating the production environment in the testing center to initiate further testing.

According to plans, the R&D building will be completed and starting its operation at the end of 2019. At that time, it is expected that all global customers and working partners will be witnessing first-hand the accomplishment of “connecting the molding technologies of China and Europe.”

Top view of Yizumi Wusha Molding Factory Phase 1

Workshop of Yizumi Wusha Molding Factory Phase 1

Design Diagram of Yizumi R&D Building