Report assesses China's machinery sector

Published: December 18, 2012 6:00 am ET

Related to this story

Topics Machinery

SHANGHAI (Dec. 18. 11:50 a.m. ET) — Improving technology and lower costs have helped Chinese plastics machinery manufacturers compete with Western suppliers. But a considerable number of Chinese suppliers will disappear in the next five years, according to a new study.

Currently there are 546 domestic manufacturers of plastics machinery in China, most of them producing injection molding machinery. The industry is quite fragmented, with the largest 10 manufacturers accounting for only 39 percent of the total sales, according to Georg Stieler of Stieler Technologie- & Marketing-Beratung GmbH & Co. KG, a L"rrach, Germany-based firm with an office in Shanghai.

According to Stieler, higher-end Chinese press manufacturers have been able to build machines that can handle 80 percent of molding applications. That number will continue to rise, resulting in a shift away from German, Japanese and other imported equipment.

At the same time, there is a large price discrepancy between imported machinery from Europe and made-in-China equipment. Imported injection presses cost up to three times as much as domestically produced ones, and imported extruders and granulators cost up to 30 times as much.

“Chinese as well as international machine buyers in China still rely on foreign machines,” Stieler, general manager of the company’s Shanghai branch, wrote in an email to Plastics News China.

“Other important benchmarks where Chinese manufacturers still lag behind are speed, replicability and energy-efficiency,” he wrote.

Chinese companies face challenges to raising their equipment standards.

“The low profitability and a lack of reliable intellectual property rights lead to short-term thinking on the management side,” Stieler noted. “Together with a lack of capable R&D personnel and a high employee fluctuation, this turns out as a vicious circle for many companies.”

The report predicts growth for Chinese-made machinery, with an increase in quality over the next few years. It credits the Chinese government for its strong support to the industry and quoted the China Plastics Machinery Industry Association’s projection of a growth rate of 12 percent through 2016.

Bigger companies are expected to develop more sophisticated machinery and further expand internationally, Stieler said, “We expect a considerable number of players in the low and medium segment to disappear during the next five years.”


Comments

Report assesses China's machinery sector

Published: December 18, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

Sipa buys Automa's PET bottle machinery business

November 28, 2014 10:02 am ET

Sipa SpA has acquired the injection-stretch-blow molding (ISBM) equipment business of Automa SpA. No transaction price was disclosed in the...    More

Image

2014 US machinery shipments up 6 percent

November 25, 2014 5:17 pm ET

Through the first nine months of 2014 U.S. shipments of primary plastics equipment — for injection molding, blow molding and extrusion —...    More

Image

Globalization brings sizable growth, primarily in Asia

November 25, 2014 1:40 pm ET

In 1990, the year after Plastics News published our first issue, there were 33,000 injection molding machines sold worldwide. Fast forward to 2013,...    More

Image

Taipei Plas vandal and German firm trade lawsuits

November 25, 2014 1:26 pm ET

Taiwan businessman Karma Tang, who splashed red paint at German firm Baumüller GmbH's Taipei Plas booth, is in a messy legal battle.    More

Image

Auxiliary equipment maker Ross expands in India

November 25, 2014 1:12 pm ET

U.S. auxiliary equipment maker Charles Ross & Son Co. is expanding in India, opening a new plant early next year in Pune.    More

Market Reports

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events