Report assesses China's machinery sector

Published: December 18, 2012 6:00 am ET

Related to this story

Topics Machinery
Companies & Associations

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

Haitian builds system for Renault's new China auto assembly plant

April 24, 2015 11:10 am ET

A late-comer to the world's largest auto market, French carmaker Renault SA is currently building its first factory in China.    More

Image

Court approves Bekum's European reorganization

April 23, 2015 5:04 pm ET

Blow molding machinery maker Bekum Maschinenfabriken GmbH has announced it received court approval for the reorganization plan it proposed in...    More

Image

3-D printing firm MakerBot closing retail shops, cutting jobs

April 23, 2015 10:33 am ET

The 3-D printing pioneer MakerBot is downsizing.    More

Image

Engel, VW working on joint research into high volume composites in auto

April 23, 2015 9:40 am ET

Engel, the Austria-based manufacturer of injection molding machines, is building one of its largest machines for a research center looking into...    More

Billion shows molding cells

April 22, 2015 9:23 am ET

At NPE 2015, French injection press builder Billion SAS showed fully automated multishot molding of two hollow bodies fitted with a TPE seal and four ...    More

Market Reports

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

Injection Molding Market Analysis & Processor Rankings

Plastics News BUNDLED package contains our in-depth Market Analysis of the Injection Molding segment. You will gain keen insight on current trends and our economic outlook.

As a BONUS this includes PN's updated 2014 database of North American Injection Molders RANKED by sales volume. Sort, merge, mail & prospect by end market, materials processed, region, # of plants and more.

Learn more

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

Upcoming Plastics News Events

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

September 15, 2015 - September 17, 2015Plastics Caps & Closures - September 2015

More Events