FARMINGTON HILLS, Mich.—Jiebao Group Ltd. is looking at North America as a way to expand its growing operation.
The company has set up a sales and technical office in Farmington Hills, its first operation in the region, according to Stan Grabinski, sales and marketing director for the newly created North American business.
Jiebao also is considering creating a manufacturing presence in the U.S. or Mexico in the next few years, depending on how it grows in the region.
A producer of molded rubber and plastic products and a custom rubber mixer, the company is headquartered in Ninghai, China, and operates seven wholly owned subsidiaries and a joint venture.
Its newest operation, JB North America Inc., is looking to extend the company's reach in North America, where it has a nice base to build upon, Grabinski said.
Jiebao selected Farmington Hills for its office due to its proximity to its current customers, he said, adding that it is a city that gives the company access to future customers as well.
“The ease of international access via Detroit International Airport and the available office space that fit our needs at a reasonable price were also major factors in selecting the area,” Grabinski noted.
He said that presently the company manufactures its molded rubber and plastic products at its plants in China. “The growth plan is to acquire North American manufacturing capabilities in the U.S. or Mexico once the organic sales growth targets are achieved for the region.”
Jiebao primarily serves the automotive and industrial markets in Asia, Europe and North America.
Grabinski said JB North America's three-year plan is to pull in between $6 million and $10 million in sales in North America.
Jiebao operates five manufacturing facilities, an elastomer custom mixing plant and a tool manufacturing operation in China.
One plant in Ninghai makes a variety of molded rubber products and materials for vibration control, while another manufactures such rubber goods as air induction hose, boots, bumpers, mats, molded seals and others.
A third facility produces timing belts and v-belts for automotive and industrial applications.
JB North America joins JB Europe in Munich, Germany, as the newest sales and technical centers within the group, Grabinski said.
Jiebao has about 900 employees spread across its subsidiaries. It had sales in the $60 million range in 2014.