Engel to open second plant in China

By Bill Bregar
Senior Staff Reporter

By Nina Ying Sun
Assistant Managing Editor

By Steve Toloken
Staff Reporter / Asia Bureau Chief

Published: March 27, 2014 12:50 pm ET
Updated: March 27, 2014 1:11 pm ET

Image By: Jessica Jordan Engel's second plant in China will be able to produce 300 presses per year.

Related to this story

Topics Machinery, China
Companies & Associations Engel Holding GmbH

Engel Holding GmbH, the Austria-based maker of injection molding machines and robots, will open a second plant in China — an operation in Changzhou to make injection presses, auxiliary equipment and drive systems, according to Chinese government and press reports.

Government reports from China say the factory will be able to make 300 presses a year and  generate sales of more than 500 million yuan ($80 million).

Gerd Liebig, Engel’s marketing director, confirmed that Engel is opening the factory, when contacted March 27. He declined to give details, saying that Engel plans to make a formal announcement in the next few days.

Engel also will spell out its plans at a news conference at Chinaplas, scheduled for April 23-26 in Shanghai, Liebig said.

Gero Willmeroth, president of sales and service at Engel’s Shanghai operation, also confirmed the news. “I can confirm that we are building something there, and we will be giving details at Chinaplas,” he said.

Engel officials declined to give details, but said the plant will build injection presses, among other products.

According to the website of the local government, the Wujin district of Changzhou city, Engel started construction last fall on the first phase, a 215,000-square-foot building. The government said the investment is 270 million yuan, or $43.4 million.

Engel has posted help wanted ads in China for the new plant at Changzhou, in Jiangsu province. The total land area measures about 20 acres.

Engel apparently has already moved management around to gear up for the new production. In late January, Engel announced that Peter Auinger was moving from his post as managing director of Engel de Mexico SA de CV to fill a new role with Engel in Asia. The new head of Engel Mexico is Héctor Moreno, whom Engel recruited from KraussMaffei Group’s Mexican subsidiary.

An industry source said Auinger is heading the new Engel factory in Changzhou.

The project made the local TV news in China. A report from October showed a backhoe preparing ground and crews beginning foundation work. That TV report said construction was scheduled to finish this May.

Engel has been manufacturing injection molding presses in Asia for 13 years. Engel began assembling small- and medium-tonnage presses in Pyungtaek, South Korea, in 2001. That factory turns out presses with clamping forces under 400 metric tons.

In 2007 Engel opened its plant in Shanghai, to build larger-tonnage machines of 400-4,000 metric tons.

Engel, based in Schwertberg, Austria, has expanded both Asian factories to meet growing demand. Engel has invested 20 million euros ($27.5 million) in sizable expansions of its two factories in the Shanghai and South Korea, in the last few years.

Last year, Engel reported that, for the first time ever, sales in Asia topped sales in the Americas, for the 2012-13 fiscal year. Engel financial reporting defines Asia as including China, Southeast Asia, South Korea, India and Australia.

Speaking before last year’s Chinaplas, Engel officials said Asia will account for 20 percent of Engel sales in 2015.

Engel’s new investment in Changzhou comes as the Chinese market for molding machines is shifting towards more high-performance machines to deal with rising labor and energy costs, and measured by number of machines sold annually, is actually shrinking.

At Chinaplas 2013, Engel projected that China’s injection press market would gradually decrease from 45,000 machines a year in 2012 to 35,000 by 2020. But company officials said the higher-end market more suited to automation would grow.

‘‘You see China going down in numbers, but the higher segment is growing, that’s why we are still growing in China,’’ Willmeroth said at the time.

Stephen Downer, Plastics News correspondent in Mexico City, contributed to this report.


Comments

Engel to open second plant in China

By Bill Bregar
Senior Staff Reporter

By Nina Ying Sun
Assistant Managing Editor

By Steve Toloken
Staff Reporter / Asia Bureau Chief

Published: March 27, 2014 12:50 pm ET
Updated: March 27, 2014 1:11 pm ET

Post Your Comments


Back to story


More stories

Image

Super typhoon ravages South China

July 21, 2014 3:58 pm ET

Super Typhoon Rammasun, the most powerful typhoon that has landed in China in four decades, has left parts of South China devastated, and the local...    More

Image

Windmöller & Hölscher looking to continued growth in China

July 21, 2014 3:40 pm ET

With 2013 global sales of 600 million euros, China has grown into an important export market for Windmöller & Hölscher KG, second only to the United...    More

Image

Material Insights: PE makers declare force majeure

July 21, 2014 1:53 pm ET

Plus, changes in PET bottle resin price, PolyOne closing facilities and CCP Composites gets bought.    More

China launches investments in Belarus

July 21, 2014 10:10 am ET

China is preparing to invest in a major bottle grade PET production project planned by the Belarus PET and polyester fibers producer...    More

Image

Thermoforming Technology Group adds Lyle Industries to its portfolio

July 18, 2014 2:48 pm ET

Thermoforming Technology Group LLC has expanded its thermoforming equipment presence with the acquisition of Lyle Industries Inc.    More

Market Reports

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

Learn more

Plastics Recycling Market Review & Outlook 2014

This special report from Plastics News examines the North American plastics recycling industry and provides insight into indicators that impact market viability, including Resin pricing trends for virgin and recycled market material and historical Resin production trends for post- consumer and industrial waste.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events