Schwaig, Germany — Sumitomo (SHI) Demag Plastics Machinery GmbH ended the first half of 2020 in good financial health with the value of incoming orders up almost 25 percent compared to the prior year because of increased demand in the packaging and medical technology markets.
CEO Gerd Liebig said in a news release the Japanese-German manufacturer of injection molding machines is boosting capacity for its all-electric machines to meet sharply rising demand, particularly for its IntElect series.
"Our intentional strategic focus on these two growth markets over the past few years has placed us in a stronger position, helping us to survive during these difficult times with a strong order increase," Liebig said of the packaging and medical segments.
The demand is offsetting a sharp slump in orders from the automotive market and a decline in the consumer goods segment, Liebig added.
As a result of stable sales, Sumitomo (SHI) Demag expects to see a 17 percent increase in year-over-year sales for 2020.
"Our plant in Wiehe [Germany] is operating at full capacity and from November 2020 we will be producing the all-electric small machines at the historic high cycle," Liebig said. "The strategic focus on this series is now paying off in full: By the second half of 2020, we will double our production capacity once again in order to meet demand."
Sumitomo (SHI) Demag has plants in Wiehe, Schwaig, and in Ningbo, China. Its parent company, Sumitomo Heavy Industries in Chiba, Japan, also will start producing the IntElect machines later in 2020.