SCHWAIG, GERMANY — The top executive at Demag Ergotech GmbH said June 17 that Demag and an undisclosed partner will market a German-quality injection molding machine made in China.
Wolfgang von Schroter, Demag's executive managing director, made the announcement at a pre-K '98 news conference at the com- pany's headquarters in Schwaig.
He declined to disclose Demag's partner in China, saying Demag will provide more details at the October K show in Dusseldorf, Germany. Demag's parent, Mannesmann Plastics Machinery AG, still must approve the deal.
``I think at the K show we will have this venture in place,'' von Schroter said.
He said Demag already has made some trial machines in China. The company has designed a low-priced machine that it claims still is a high-quality ``German machine,'' because officials learned that Chinese molders don't want poor-quality machines, he said.
Questioned by reporters, von Schroter said the partner is not Hong Kong press builder Chen Hsong Machinery Co. Ltd., which runs large factories in China.
Von Schroter also said Demag is negotiating to renew its collaboration agreement in India with Larsen & Toubro Ltd.
Larsen & Toubro of Mumbay, India, builds Demag machines at a plant operating under the name LTM in Madras, India.
Von Schroter said the deal is under review. Although Demag does not wish to withdraw from India, the German executive said, India's recent nuclear bomb tests have clouded the issue.
``This atomic bomb of India hasn't helped the situation, because we feel that customers in neighboring countries will have some reluctance to buy India-made machines,'' he said.