Demag to boost capacity in China

By Steve Toloken
Staff Reporter / Asia Bureau Chief

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
Staff Reporter / Asia Bureau Chief

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

Hewlett-Packard jumping into the booming business of 3-D printing

October 30, 2014 2:26 pm ET

The world of 3-D printing has a new player — and it's a major name from the world of office printers: Hewlett-Packard Co.    More

Image

Italian compounder opening first US plant

October 30, 2014 9:45 am ET

The song of the South has led Italian compounder So.F.Ter Group to open its first plant in the United States in Lebanon, Tenn.    More

Image

Five-axis flexibility paying off for Sepro and its customers

October 29, 2014 1:47 pm ET

French robot maker Sepro Robotique expects to generate 78 million euros ($99 million) in 2014 sales — 17 percent more than 2013 — as...    More

Image

Shale development lagging in China

October 29, 2014 1:28 pm ET

Shale gas and its impact on China was the hot topic at the FlexPO conference, held Oct. 22-24 in Shanghai.    More

Image

Majority of China's future polyolefin capacity will come from coal

October 28, 2014 3:45 pm ET

China's polyolefin suppliers are shifting from using oil to coal or natural gas as their feedstock, according to experts at the FlexPO conference, hel...    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

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 million dollar 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

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

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