JUNE 3 2020
Parsippany, N.J.-based Conventus will operate in Shanghai as Shanghai Conventus Polymers New Materials Co. Ltd. The unit will offer the firm's portfolio of products to processors and end users throughout China, officials said in a news release.
The expansion is part of the company's strategy to grow into key geographic regions, they added. Conventus has been doing business in China for several years. Establishing a legal entity strengthens its position in the market and allows the company to offer service to both local customers and U.S.-based OEMs that it currently supports, officials said.
"Our business is growing quickly and with our extensive product portfolio of specialty engineering plastics, we are firmly positioned as a strategic supplier," President John Jorgensen said. "This important move into China signals our further commitment to key multinational OEMs."
The Chinese initiative will expand Conventus' reach into markets such as electrical/electronics, industrial and health care, according to Jorgensen. With a legal operating entity in China, Conventus can offer its international customers import and export capabilities, local inventory and warehousing and local currency transactions.
Conventus will handle all exporting, importing, insurance, customs clearance, duty costs and freight from port to warehouse to the customer. To serve the Chinese market, the firm also has several warehouses close to customers in East China and South China.
Conventus has four compounding partners in China, each specializing in different areas to offer a full portfolio as well as quick turnaround times and minimal freight costs, officials said. The firm will benefit from lower compounding conversion costs, they added, which will make its products more competitive.
Three local sales reps have been hired, with that number expected to grow in the near future. In China, Conventus is selling its global portfolio of products, including specialty nylons, polysulfones, thermoplastic vulcanizates (TPVs) and custom compounds.
The move into China comes less than a year after Conventus opened a Mexican business unit. Conventus Polymers de Mexico launched in late 2019.