Toshiba to expand press factory in India, export machines to North America

By Steve Toloken
Staff Reporter / Asia Bureau Chief

Published: December 16, 2013 5:35 pm ET
Updated: December 16, 2013 5:49 pm ET

Image By: Steve Toloken Koji Egashira, P. Kailas and Hiroshi Azuma

Related to this story

Topics Machinery, Asia
Companies & Associations Toshiba Machine Co. Ltd.

MUMBAI, INDIA — Injection press maker Toshiba Machine Co. Ltd. plans to expand capacity at the India factory it bought last year, and use it as a base to export smaller-sized hydraulic machines to North America and later add all-electric and large tonnage machine manufacturing.

Tokyo-based Toshiba bought the Chennai factory in August 2012 from Indian industrial conglomerate Larsen & Toubro, as part of a global strategy to give it better access to India and other emerging markets and build a network of lower-cost production bases throughout Asia.

At the Plastivision 2013 show, held Dec. 12-16 in Mumbai, the company began unveiling the fruits of that work in India, taking the wraps off two new hydraulic machines made using technology from Toshiba in Japan but adapted for manufacturing in India.

The Chennai acquisition plugs a gap in Toshiba’s product range, giving the company its first smaller-sized hydraulics in over a decade, said Hiroshi Azuma, director of Toshiba Machine (Chennai) Pvt. Ltd. The company has focused on all-electric machines.

Beyond providing better access to India, the company said the acquisition gives it an opportunity to re-enter the global market for smaller-sized hydraulics and export the Indian-made hydraulics to North America.

The U.S. market for smaller hydraulics is more than 1,000 machines a year, and Toshiba believes it can capture 10 percent of that market by 2016 from India, said Koji Egashira, group manager of the injection molding machine sales department.

It’s part of an overall plan to grow its sales in North America to 700 machines a year, including all-electrics from its factories in Japan, China and Thailand, and 300 machines in Central and South America in its fiscal year ending March 2016, the company said.

The two new Toshiba-branded, India-built machines unveiled at Plastivision are a 100-ton toggle hydraulic model and a 350-ton ram-style hydraulic.

It plans soon to add other models in the small hydraulic range, up to 450 tons, and plans slightly different versions of the machines for the United States and the local Indian and Asian markets.

The production of Toshiba-branded hydraulics is starting now, but at the Plastivision interview, executives also said they plan to expand capacity in Chennai to accommodate the next phases of their plan, to make large tonnage machines over 1,000 tons clamping force and all-electric machines.

The timing and specific details of the expansion are not yet decided, although at the Plastivision interview, the company suggested expansion is a priority but was delayed because of softness in India’s economy.

“We wanted to expand last year,” said P. Kailas, managing director of Toshiba’s Chennai operation. “We are ready to expand but we are waiting for the market to show positive signs.”

India’s injection press manufacturers made about 2,700 machines in the country in the year ending in March, down from projections of 4,600 machines, Kailas said. The drop-off is mainly due to slowdowns in the automotive market, he said.

Azuma said the Chennai operation will also give Toshiba much better access to the African market, where the former L&T operation has a good sales network. “A lot of Indians invest in African countries,” he said.


Comments

Toshiba to expand press factory in India, export machines to North America

By Steve Toloken
Staff Reporter / Asia Bureau Chief

Published: December 16, 2013 5:35 pm ET
Updated: December 16, 2013 5:49 pm ET

Post Your Comments


Back to story


More stories

Image

Amcor buys Chinese flexible packaging plant

December 18, 2014 1:47 pm ET

Australian-based global packaging company Amcor Ltd. is buying a Chinese flexible packaging business for 211 million RMB (US$31.4 million).    More

Image

Auto, medical, packaging all lead to solid sales for compounding extruders

December 18, 2014 6:00 am ET

Compounding extruder sales tend to be cyclical, but machinery makers report another solid year — thanks to automotive, medical, food packaging...    More

Image

Indian auto parts maker set to buy assets in Germany, Mexico

December 18, 2014 10:35 am ET

Indian auto parts maker Samvardhana Motherson Gropup is buying the assets of insolvent German plastics car parts producer Scherer & Trier (S&T).    More

Image

Bayer launches PC sheet production in Guangzhou, China

December 17, 2014 6:00 am ET

Bayer MaterialScience (BMS) has started its new polycarbonate sheet production plant at its Guangzhou, China, site.    More

Image

Shipping slowdowns add to season's stress

December 16, 2014 4:02 pm ET

Toy companies know what they want for Christmas: an end to crippling shipping delays at West Coast ports.    More

Market Reports

Flexible Packaging Trends in North America

Our latest RESEARCH report examines trends in FLEXIBLE PACKAGING impacting the North American market including a review of economic conditions, key drivers of growth, materials pricing, M&A activity, sustainability challenges and the outlook for 2015.

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