JEC COMPOSITES MAGAZINE - Issue #38 - January/February 2008 - 22

BUSINESS Market survey: Asia Jinmao: 23 years of uninterrupted growth Tianjin is decidedly the place to be. A multitude of Western companies have chosen the city to establish a business foothold in China, including Airbus, Gurit, and Hexcel. It is true that the setting appears to favour entrepreneurs, as Tianjin Jinmao Group’s superlative success would indicate. T he Jinmao Company specializes in handheld tools for professionals and individuals. It is one of the world’s leading producers in that sector, currently exporting about 90% of its production. A singular history It all began in 1984, when former farmer Li Jie created the company, becoming chairman of the board. In the beginning, the company’s business focused on repairing trucks. Only in 1987 did Li Jie start manufacturing caulking guns for the decoration and do-it-yourself (DIY) sector. By 1993, six years later, the company had 200 employees and was exporting more than a million dollars’ worth of merchandise. In those days, exports had to go through Chinese government, and Jinmao did not obtain its own export licence before 1996. That change did much to increase the company’s business and development. In 1997, it built a new plant outside Li Jie’s home village, and added new products to its DIY range. Sales shot up to $4.7 million, 95% going for export. The United A major player Tianjin Jinmao Group Co., Ltd. was established in 1984. The company integrates product development, design, production, sales, and service activities; it has an import & export subsidiary, six business departments, 1,600 employees and 56,000m2 of facilities. The company offers 300 main types of products in eight different Vice-General ranges, which Manager Sunny Yen’s are caulking priority is guns, painting helping the tools, cleaning company adapt to tools, gardening a more difficult tools, extension environment poles, air registers, cut nails, and ladders. Over 90% of the products are exported worldwide. Jinmao’s leading product range (caulking guns) garners more than 25% of the market share in the United States. The company is China’s number-one exporter of caulking guns. Another area where Jinmao stands out is in ladders, both aluminium and composite. The company appears to be The company’s 150,000 m2 of land is more than enough to handle its development. the world’s top manufacturer in that niche, with more than 30% of its ladders being made in composite materials. Jinmao invested heavily for that, and has a dozen production lines that work steadily. At least 250,000 ladders leave the Tianjin plant each year. In 2007, sales in that segment amounted to US$30 million, or about half of Tianjin Jinmao Group turnover. The company controls its process from start to finish for both the composite and the aluminium market segments. JEC Composites Magazine / No38 January - February 2008

JEC COMPOSITES MAGAZINE - Issue #38 - January/February 2008

Table of Contents for the Digital Edition of JEC COMPOSITES MAGAZINE - Issue #38 - January/February 2008