Sumitomo (SHI) Demag Plastics Machinery GmbH plans to turn its plant in Wiehe, Germany, into a major manufacturing base for all-electric injection molding machines, the company announced May 29.
The project is part of a 50 million euro ($71 million) investment in the company's Wiehe and Schwaig plants.
Wiehe, which has made both hydraulic and electric machines of up to 210 metric tons of clamping force, will begin to produce Demag's new IntElect-brand machine as well as Sumitomo's SE series.
Focusing our traditional manufacturing base at Wiehe on all-electric injection molding machines will help us be prepared for the revival of demand that will follow the current market crisis, said CEO Tetsuya Okamura in a news release.
The decision to invest in the plants, despite the crisis, reflects the determination of the firm's parent, Chiba City, Japan-based Sumitomo Heavy Industries Ltd., to maintain and strengthen both of the Demag plants in Germany, he added. Sumitomo Demag's European headquarters is in Schwaig.
Wiehe was regarded as the most modern of the three injection press plants in the former East Germany when it was acquired by Mannesmann Demag AG in 1990. Following that deal, the firm made significant investments in the facility to give it some of the industry's most advanced automated machine-making techniques for building Demag's Ergotech presses.
The news from Germany follows Sumitomo Demag's recent decision to sell its share of a joint venture in India to its partner, Larsen & Toubro Ltd. of Chennai, India. Sumitomo said it sold its portion of the venture at the end of March as a result of its new global production strategy.