CHINAPLAS: Serving a select section of customers

Telko’s Plastics business unit in China has become a leading supplier of raw materials to industries. Like its Finnish parent, it serves a diverse set of customers from packaging, construction, electric and electronics, medical products and consumer products manufacturing sectors.

“Our clients come from select sections and we provide targeted products for the industries that serve both the local and global markets,” said Sky Wang, Sales director Plastics, China.

Citing the Electric and Electronics (E&E) sector, Mr Wang noted that domestic consumption has risen with China’s improving economy. “Whilst the majority of production of E&E manufacturers is still largely exported, local demand is growing and Chinese brands such as Haier are successful worldwide,” he said.

Mr Wang said the same can be said of the extremely buoyant Medical Products segment. “The medical products industry in China that serves both the domestic and global market,” he said. “Manufacturers operate with high standards and require high-quality products that Telko is able to provide.”

Demand for Green Plastics, a segment that Telko also specialises in, is seeing steady growth.

Ms Hela Velsanto, Technical head Plastics, added that prices are going down. “Compared to traditional polymers, of course, this demand is still quite low, but there is a limit to what the market can take and prices are expected to come down,” she said.

“Biopolymers are starting to become competitive,” Mr Wang agreed, “and there are advantages that some companies and consumers are looking for, so those outweigh the cost.”