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

Sales, orders climbing for Wittmann Battenfeld

October 22, 2014 4:04 pm ET

Equipment maker Wittmann Battenfeld GmbH expects sales this year to increase 7 percent, to 295 million euros, as it said some key markets, including...    More

Image

Asia continues driving sales for Engel

October 21, 2014 2:42 pm ET

The number seven seems to be special for European plastics machinery makers at the moment — injection press giant Engel Holding GmbH said Oct....    More

Image

Messe Düsseldorf supports Plastindia move, but with reservations

October 20, 2014 2:45 pm ET

Germany's Messe Düsseldorf, the largest overseas partner of the Plastindia show, has given its support to the last-minute move of Plastindia to a new ...    More

Image

Petition asks for Plastindia to move back to Delhi, PIF board member resigns

October 20, 2014 2:28 pm ET

A member of Plastindia Foundation's management board has quit the organization to protest the manner in which the group moved its namesake Plastindia ...    More

Image

Trexel charges patent infringement against Taiwan company

October 20, 2014 3:25 pm ET

Trexel Inc., the supplier of the MuCell microcellular foaming technology, is accusing a Taiwanese company, Chuan Lih Fa Machinery Works, of violating ...    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

More Events