SCHWAIG, GERMANY (June 22, 10:20 a.m. ET) — Sumitomo Heavy Industries Ltd. is investing 20 million euros ($25 million) to modernize Sumitomo Demag Plastics Machinery GmbH plants in Schwaig and Wiehe, Germany.
The main part of the investment will buy back the Schwaig site from Segro plc, a real estate investment company that bought the plant in 2008, and has been leasing it back to the machinery company. The investment also will be used to buy new equipment and modernize the production facilities.
The company said in a June 20 news release: “With this investment, Sumitomo Heavy Industries is acknowledging the growing market share captured by Sumitomo (SHI) Demag over recent quarters. The buy-back of the production site underlines the high level of confidence placed in Germany as a production location.”
The main Demag facility in Schwaig produces its hydraulic Systec machines and hybrid El-Exis machines.
In 2009, after Sumitomo Heavy Industries acquired Demag, the Wiehe facility was expanded to become an international center for electric machines. Wiehe supplies the IntElect series of electric injection molding machines to worldwide customers.
Sumitomo Demag also makes presses in Chiba, Japan, and Ningbo, China.