Ryobi to Open Second Die Cast Plant in China

Ryobi announced on Friday the firm establishes the second aluminium die cast plant in China in January 2011. The new 100% subsidiary will be constructed in Changzhou City of Jiangsu Province to produce and sell die casting products. The capital fund is 4 billion yen and the capital expenditure is planned at 9 billion yen by December 2013. The production is expected to start in April 2012. Ryobi targets annual revenue at 2 billion yen in 2012 and 5 billion yen in 2014 for the subsidiary.

The existent subsidiary in Dalian, China supplies die cast products mainly to automakers in northeastern area of the country. Demand for die cast products is sharply increasing along with car output growth in China. The new subsidiary in Changzhou covers the demand in East China where automakers and automotive component makers hold their plants.

The new plant has floor space of 32,000 square meters on a site of 80,000 square meters. The plant will be operated with 270 employees in 2012 and 350 employees in 2014.