China's rapidly rising labor costs have caused headaches for domestic plastics manufacturers, but at the same time, automakers are fast-growing and are constantly expanding to meet rising demand.

Ningbo Weili Robot Technology Co., Ltd. is one of them. The company now has a factory at its headquarters in Ningbo, Zhejiang, and plans to build three more assembly plants nationwide over the next five years.

Steven Chen, general manager of marketing at Weili Robotics Co., Ltd., said: "These new plants will triple our production capacity."

Wei Li Company was established in 2003. Its robotic arms are used for plastic injection molding machines, in-mold labeling systems, and automated auxiliary equipment such as material handling systems. The private company declined to disclose sales figures.

The newly built three assembly plants will be strategically located in South China, North China, and West China. Chen said: “The factory built in South China is expected to be put into operation in 2012 at the earliest.” However, he did not specify the location of the plant. “As for the other two factories, we are still choosing suitable locations. The western factory may be built in Chongqing, and the factory in North China may be built in Tianjin or Qingdao.”

Chen said that these new plants will help reduce transportation costs, which account for about 3-5% of the total cost of equipment.

The growing demand for plastics manufacturers in China is the main reason for their new plant construction.

He said that Wei Li’s robotic arm sales in 2010 grew by about 40% year-on-year, and this year it is expected to reproduce about 30% growth.

Chen said: "As for the automation solution business, we expect at least 20% annual growth will appear in the next three years." He added that this figure is only a conservative estimate. "The trend of [increasing automation needs] has been particularly rapid this year." Its main end markets include food packaging, computers, telecommunications and consumer electronics.

The company currently has about 40% of its products for export, but due to strong domestic market demand, it is expected that the proportion of exports will decline in the coming years.

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