Austrian machinery builder Cincinnati Extrusion GmbH said it is on course to post a 17 percent increase in sales for 2007.
Driven by strong performances in the U.S. and Russian markets, and the growing acceptance of wood-plastic composite production, 2007 sales stand to grow to 100 million euros ($144 million), from 85 million euros ($122 million) a year ago.
Since re-entering the U.S. market at the beginning of 2006, Cincinnati Extrusion has made headway quickly, according to marketing director Hans Berlisg. A geographical noncompetition agreement SMS GmbH reached with Milacron when it bought the company's non-U.S. extrusion operations in 2000 prevented it from selling in the U.S. until the end of 2005. German private equity group Triton acquired it from SMS GmbH earlier this year.
``We are quite happy with our development in the U.S. This year we will sell over 50 extruders there,'' he said. ``We have dominated the window profile market and are probably No. 1 already.''
Berlisg said the return of its former owner to the European market has not diminished those U.S. gains noticeably. ``We really have not felt the pressure of Milacron in Europe. They have been using their experience in [wood-plastic composites], but it is not easy to sell a U.S. machine in Europe.''
Berlisg said the company has seen similar success in the Russian marketplace. ``This is becoming a very big market and we are doing very well in profile and pipe, especially [polyolefin] pipe. We see very good growth for the future.''
Cincinnati Extrusion also is benefiting from Europe's developing interest in wood-plastic composites, which, while seeded by the solid profile systems used in the U.S., now has developed its own distinctive, hollow-profile products.
``The European market started with trial machines, but this trial period seems to be over. There are now a few companies starting to make [wood-plastic composites], mostly decking,'' said Berlisg.
During the K show, held Oct. 24-31 in Dusseldorf, Deckwood, a Netherlands-based wood-plastic composites developer, signed a letter of intent to buy three Cincinnati systems to install at a Deckwood production unit in the United States.
Cincinnati Extrusion Managing Director Walter Häder said the company's growth plans are fully supported by new private equity owner Triton, which seeks value-adding acquisitions.
Triton also is supporting Häder's plans to implement Six Sigma lean manufacturing principles to help speed delivery and manage cost while increasing production efficiency.
At K, Cincinnati Extrusion showed its latest high-efficiency extrusion model - the direct-drive, high-speed Rapidex Ltd. unit. The 60-millimeter machine is designed to deliver an output of 3,500 pounds per hour in polyolefin pipe applications. A prototype system has been in operation at the Rehau AG plant at Viechtach, Germany, and is on its way to realizing those output rates, said Häder.
The company also has focused on reducing the energy consumption of its machines, fitting energy-efficient AC motors as standard on all of its extruders, along with new barrel insulation and energy-optimized screws.
The company announced at the show that it has, together with injection machinery maker Engel Austria GmbH, embarked on a project with the Vienna University of Technology to develop a simple system for rating the energy efficiency of plastics processing equipment.
Company leaders hope that system eventually may be presented to Frankfurt, Germany-based Euromap - the European Committee of Machinery Manufacturers for the Plastics and Rubber Industries - as the basis for a standard rating system.