Brazilian machine maker shutting down Italian plants

Bob Moser
PLASTICS NEWS

Published: May 21, 2013 4:34 pm ET
Updated: May 21, 2013 4:36 pm ET

Related to this story

Topics Mergers & Acquisitions, Machinery

SÃO PAULO, BRAZIL — The maker of Romi and Sandretto machines is in the process of closing its manufacturing plants in Italy and focusing all of its manufacturing in Brazil.

The company, Indústrias Romi SA, is exhibiting new products at the Feiplastic trade show this week in São Paulo.

Romi, based in Santa Bárbara d'Oeste, Brazil, bought Italy's Sandretto Industrie srl in 2008, with an eye toward expanding in Europe. Sandretto had been under government control for two years.

The process of liquidating the Italian operations began in April. The two plants, in Grugliasco and Pont-Canavese, employ about 150, down from 300 when they were purchased in 2008.

Sandretto workers have long feared that the Italian plants would close. Last year, at the Plast 2012 trade show in Milan, Italy, around 20 Italian employees occupied Romi's exhibit to protest the company's restructuring plan.

At the time, Romi confirmed that it planned to downsize the Italian operations, but officials would not confirm plans to close the Italian plants.

Romi's net operating revenue from its plastic machinery division in the first quarter of this year was 18.88 million Brazilian real ($9.27 million), down 19 percent from the same period a year ago. The company attributed the drop to the liquidation of Romi Italia.

The company expects to realize net savings from the Italian closure by year's end.

Romi sales of plastics machinery in the first quarter totaled 50 units, up 13.6 percent from the first quarter of 2012. Business sectors showing the highest demand in Brazil were automotive, packaging, services and domestic appliances.

Romi maintains a leading market share of 20 percent in Brazil, but that has been reduced over the past decade from 30-plus percent by low-cost imports from Asia.

The new models introduced at Feiplastic will be pushed for sale in the European market by Romi's five sales subsidiaries there, where demand for energy savings across all industries is far greater at the moment than in Latin America, said William dos Reis, director of plastic processing machines.

With a focus on boosting energy efficiency across its portfolio, Romi introduced three new injection press models and one new blow molder at the Feiplastic trade show in São Paulo.

Within its EN series of horizontal injection molding machines, Romi debuted new model EN 380 PVC, offering greater precision and less energy consumption than competing hydraulic models, serving small- and mid-sized PVC applications of up to 380 metric tons.

"We targeted PVC in particular, because its typical long cycles offer an opportunity for great energy savings with this new model," Reis said.

The new EN 450 model also offers advanced precision and energy features, and can produce small- and mid-sized pieces for applications up to 450 tons.

In its EL series of fully electric injection machines, Romi launched the new EL 75, featuring 75 tons of clamping force, high precision that results in up to 25 percent shorter cycle times, minimal waste and noise, and energy savings of up to 60 percent over comparable hydraulic models.

The company's Compacta line of blow molders was also updated with the launch of model C 5TS, featuring up to 512 programming points, a new concept of heads with multiple heat zones and optimized flow, and reduced time needed for color changes. The machine features closing force of 14 tons, and the best energy savings rates yet within the line.


Comments

Brazilian machine maker shutting down Italian plants

Bob Moser
PLASTICS NEWS

Published: May 21, 2013 4:34 pm ET
Updated: May 21, 2013 4:36 pm 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

RPC Group buying Iceland's Promens

November 27, 2014 8:46 am ET

In a major acquisition that combines two rigid packaging companies with international footprints, RPC Group plc has signed a 399 million euro ($497...    More

Image

Huhtamäki selling film division

November 26, 2014 2:10 pm ET

Private equity firm Deutsche Beteiligungs AG (DBAG) will acquire the film business of Finland-based plastics packaging group Huhtamäki Oyj for 141...    More

Image

Visteon in talks to sell its stake in Halla Visteon Climate Control JV

November 26, 2014 9:07 am ET

Visteon Corp. confirmed this morning that it is in discussions with a private equity firm to sell its stake in South Korean joint venture Halla...    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 — g...    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