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NEW YORK, Nov. 29 -- BCB Plastics, a new outsourcing firm serving Chinese plastics manufacturers, launched its business today in Nashville, TN, at the International Association of Plastics Distributors annual convention. According to BCB co-founder and chairman, William Xin, the company was formed to act as an agent between plastics processors in the Ningbo region of China and OEMs and resin suppliers in the U.S. Xin says BCB is the first distributor in China to build a manufacturers' cooperative that cuts across vertical segments in the plastics industry. Xin adds that he and his partner Jeremy Haft spent two years researching the fast-growing $40 billion plastics industry in China and discovered that the supply chain is "highly fragmented and inefficient." Xin estimates that the plastics sector in China is growing between 18 and 30% per year, based on the growth in the past 10 years. "BCB is able to achieve significant economies of scale in the buying of virgin, reground, and recycled resins, as well as in the sale of sourced goods into the U.S.," Xin says. "We can also cut negotiation time for U.S. companies looking for a contract plastics processor in China from the typical 12 to 18 months to three months." The company currently represents 650 Chinese processors. Xin outlines BCB's services as follows: -- For raw material and resin suppliers, most of whom sell direct only to China's largest manufacturers, BCB delivers an untapped middle-market. "We can aggregate demand and place orders with resin suppliers that wouldn't typically sell to small- and medium-sized processors in China." -- For distributors, assemblers, OEMs and other buyers of semi-finished plastic products in the U.S., BCB offers a lower-cost, quality-assured method of sourcing from China's manufacturer base. The company's first order, which came a couple of days ago, is from a wedding cake designer who needs plastic "bride-and-groom" figurines. Xin says, however, that BCB will also service markets such as automotive, home electronics, toys, tools, appliances, consumer goods, lighting, and power supply. BCB operates offices in New York City and in Ningbo. Quality assurance engineers and account executives in both locations work together "to insure a smooth sourcing experience, without the typical glitches that often emerge from differences in time and language when doing business with China."
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