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

China's PVC exports face challenges

August 22, 2014 2:14 pm ET

Despite robust growth in the first half of the year, China's PVC exports now faces new challenges, due to trade barriers and new capacity ramping up...    More

Image

Making the most of complexity

August 22, 2014 1:02 pm ET

In the global market for injection molded parts, custom molders have tried a million different ways to differentiate themselves from the pack. Make...    More

Image

Reiloy Westland to build new headquarters

August 22, 2014 12:53 pm ET

Reiloy Westland Corp. will build a 45,000-square-foot headquarters factory, as the Kansas maker of screws and barrels expands under the ownership of...    More

Image

VDMA clarifies Tokyo statement about China

August 21, 2014 2:57 pm ET

Some remarks that VDMA President Reinhold Festge made at a recent press conference in Tokyo turned into sensational headlines in China.    More

Image

Bayer, SCAC partner on water reuse project

August 21, 2014 12:48 pm ET

Bayer MaterialScience (BMS) and Shanghai Chlor-Alkali Chemical Co. Ltd. (SCAC) have entered into a preliminary agreement for the reuse of waste water ...    More

Market Reports

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report analyzes economic and market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as growth strategies being implemented by thermoformed packaging companies.

Learn more

Pipe, Profile & Tubing Extrusion in North America 2014

U.S. demand for extruded plastics is expected to grow by 3 percent in 2014, with PVC remaining the largest segment.

Plastic pipe will post the strongest gains through 2018, continuing to take market share from competing materials in a range of markets.

Our latest market report provides in-depth analysis of current trends and their financial impact on the pipe, profile and tubing extrusion industry in North America.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

Learn more

Upcoming Plastics News Events

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

January 14, 2015 - January 14, 2015Plastics in Automotive

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

More Events