German machinery maker Arburg GmbH & Co. KG has started construction on a new assembly plant for the production of its large Allrounder injection molding machines and other turnkey systems.
The assembly plant — dubbed Hall 23 — will be located at Arburg's central production site and headquarters in Lossburg, Germany, and is expected to be completed in the second half of 2020.
The building will have approximately 28,500 square meters (306,771 square feet) of usable floor space for production and administration, with 3,700 square meters (39,826 square feet) for technical operations.
Arburg held a groundbreaking ceremony May 16 at the Lossburg site, where it said the project amounts to an investment of "tens of millions of euros."
"In terms of building activity, we have been in a state of rapid progress since 2007: customer center, assembly hall, parking structure, exhibition logistics hall, training center and now a new assembly hall," Michael Hehl, Arburg's managing partner who is also responsible for plant development, said in a statement.
Arburg first announced plans for the new assembly plant in April 2018 as part of a "large two-digit-million euro" investment in the expansion of its Lossburg headquarters facilities.
In 2016, it opened another assembly plant, Hall 22, for the production of its injection molding machines. That facility is close to reaching capacity, the company stated, citing "continuous growth" over the years for injection molding machines with clamping forces up to 650 metric tons.
"We are one of the world market leaders and continue to manufacture our high-quality machines for plastics processing, which our customers then use around the globe, with great success exclusively in Lossburg," Hehl said.
With the expansion efforts, Arburg projects that its central production site in Lossburg will grow by 17 percent to nearly 200,000 square meters (approximately 2.15 million square feet) by 2020.