Sumitomo sales jump 15 percent

Sumitomo (SHI) Demag Plastics Machinery GmbH reported ongoing growth for fiscal 2017, with sales of 273 million euros.

This year's sales figure marks an increase of 15 percent compared with 2016, when the company had sales of 237 million euros.

The injection molding machinery manufacturer, which has headquarters in Schwaig, Germany, said during an Oct. 18 news conference at Fakuma that forecasts for 2018 are also positive. This marks the fifth year of consecutive growth for the company.

The German-Japanese company attributed the growth to the continued success of its El-Exis high-speed injection compression molding machine — on display at the Sumitomo booth — high demand for its all-electric machines and a deeper focus on thriving regional markets.

CEO Gerd Liebig said he's expecting sales for 2018 to increase by about 10 percent.

"Next year, especially in medical and automotive, we would like to grow significantly," he added.

Liebig, who settled into his current role at Sumitomo at the start of 2017, also said Sumitomo has continued to grow its market in two strategic product areas: packaging and all-electric machines.

The company's market share for all-electric machines and high-speed injection molding machines is expected to reach 20 percent in 2018. Sumitomo said its new generation of IntElect, an all-electric precision injection molding machine that it launched earlier this year, is expected to make "major contributions" toward this anticipated growth, the company said.

Sumitomo has four plants in Japan, Germany and China and more than 3,000 employees. The company is owned by Sumitomo Heavy Industries Inc. in Tokyo.

At Fakuma, Sumitomo is launching its myConnect web-based platform for customers, and it announced plans to create an automation business unit.

The automation unit is headed by Andreas Schramm, a member of Sumitomo Demag's board and the former chief technical officer. He took the new post Sept. 1.

The operation will develop complete automation packages for injection molding. Liebig said Sumitomo Demag is looking at some automation manufacturing but did not provide details.

The main goal, he said, is to position Sumitomo Demag as a consultant to molders on automation. Company officials believe "there is significant potential" for increasing sales in the automation area. Liebig said the machinery maker is boosting its sales, service and engineering systems.

Production and integration of automated systems will happen at the machinery maker's site in Wiehe, Germany, where company officials plan to expand production. Liebig said Sumitomo Demag also is stepping up its cooperation with molders to develop specific advanced automation processes for their molded parts.

Liebig said one key goal is to integrate automation, machinery and parts tracking. Fakuma visitors can see an example: a housing for a car gear shift that, after molding, goes into a laser coding device and is marked on the underside.

Sumitomo Demag is now building an in-house automation testing facility.

The myConnect software platform will give customers a wide range of online services. Sumitomo Demag plans to deliver all its machines with network-compatible equipment and the option of wireless connectivity in the second quarter of 2018.

The standard package contains five modules that handle help support, documentation about the machine, spare parts ordering, a complete history of each and a myConnect app so customers can track their production from any location.

Andreas Holzer, Sumitomo Demag's service manager, said the software shows spare parts shoppers a 3D model that they can turn and disassemble electronically.

Hideki Kuroiwa, chief technical officer, said the new IntElect model continues Sumitomo Demag's work on all-electric injection molding machines. At Fakuma, a 50-ton IntElect II is molding nylon bobbins.

Kuroiwa is a veteran of Sumitomo Demag's parent company, Sumitomo Heavy Industries in Japan. He has worked on injection molding machinery development, including all-electric technology.

The new IntElect is aimed at molders of precision assemblies, engineering components and optical parts, the company said.

"Our aim is to be a trendsetting company for both the packaging industry and our all-electric machine," Kuroiwa said at the press conference.