Demag to boost capacity in China

By Steve Toloken
News Editor / International

Published: August 8, 2013 12:16 pm ET
Updated: August 8, 2013 11:37 pm ET

Related to this story

Topics China Machinery
Companies & Associations Demag Plastics Group Sumitomo Demag Plastics Machinery GmbH

Germany's Demag Plastics Machinery (Ningbo) Co. Ltd. plans to invest at least 7 million euros ($9.35 million) in a significant expansion of its injection press factory in China.

Demag, a unit of Japanese-German press maker Sumitomo Demag Plastics Machinery GmbH, said the expansion of its existing capacity in Ningbo will give it capacity of between 1,000 and 3,000 machines a year there, and expand the tonnage range produced.

It's expected to open in 2015, and is designed to boost Demag's share of the Chinese market, the largest IMM market in the world, as well as increase exports, according to Stephan Greif, CEO of Demag Plastics Machinery Ningbo.

Demag today produces its Systec series of hydraulic machines with clamping forces of 50 to 1,000 tonnes in Ningbo, but Greif said the expansion opens up the possibility of making other machines in Demag's portfolio.

He declined to specify which ones, saying it was still under discussion.

While China's overall plastics machinery market dropped 3.5 percent in 2012, to $7.92 billion, it was a record year for sales and profits for Demag's Ningbo operation, Greif said.

As manufacturing and labor costs rise in China, molders are buying better equipment to remain competitive, and that's proving a boon to foreign brands and upper-end local companies, Greif said.

Demag currently makes about 650 machines a year in Ningbo. Greif also said the factory has become more of an export center in the last five years, with 25 percent of its production exported, mainly to Southeast Asia, the Middle East and Brazil.

Less than 5 percent of its production was exported in 2010, by comparison, and the company has a target of exporting one-third of its Ningbo made machines, he said.


Comments

Demag to boost capacity in China

By Steve Toloken
News Editor / International

Published: August 8, 2013 12:16 pm ET
Updated: August 8, 2013 11:37 pm ET

Post Your Comments


Back to story


More stories

Image

Milacron restructuring Uniloy manufacturing in Europe

April 17, 2015 2:16 pm ET

Milacron LLC plans to consolidate manufacturing of Uniloy blow molding equipment in Europe into its new facility in the Czech Republic city of...    More

Image

Reifenhäuser acquires German spinneret company Enka Tecnica

April 17, 2015 9:31 am ET

Germany-based Reifenhäuser GmbH & Co. KG, a major manufacturer of extrusion equipment, has announced that it is acquiring Enka Tecnica GmbH, a German ...    More

Image

Madison buys Ferry Industries

April 16, 2015 5:22 pm ET

Ferry Industries, the largest manufacturer of rotational molding machinery, was purchased by Madison Industries, a Chicago holding company that is...    More

Image

GN Thermoforming changes management following founder's arrest

April 15, 2015 4:47 pm ET

GN Thermoforming Equipment officials say Georg Nemeskeri has stepped away from active involvement with the company he founded 34 years ago and a...    More

Image

Uway beginning US extruder production June 1 in Ohio

April 15, 2015 3:28 pm ET

Uway Extrusion LLC, a 4-year-old company that builds extruders in China using components from the United States and Europe, will begin U.S. production...    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