Injection Moulding Asia Machinery News
Steady demand to accelerate growth In a reality check, analysts are lowering their expectations on China’s rebound for post-crisis recovery, settling instead for a slower growth rate. The steady demand in the machinery sector, a backbone of the country’s economy, may just accelerate the growth rate. But local companies interviewed at the Chinaplas show in Guangzhou in May expect recovery to be aided by export markets while international firms expect the demand for high-tech machines in the country to push their sales.
Targeting the export markets he recent Chinaplas show conjures an actual, albeit, microcosmic arena for the country’s machinery industry. Machinery manufacturer China Haitai Plastic Machinery says that China will remain the world’s largest injection moulding machine production and consumption market for a long period of time. Noting that Russia is an emerging market, a spokesperson said that the foreign market, in general, is growing rapidly; and Eastern Europe remained a good market “despite the lingering Eurozone crisis.” When asked about the company’s growth, he said, “We expect a 50% increase this year.” And though it has business in most of Southeast Asia, it plans to focus on strengthening its presence in Thailand and India. At the show, the firm displayed three upgraded versions of its machines: a multi-colour moulding machine, hybrid machine and a second generation precision servo energy-saving machine. Another exhibitor, Guangzhou-based Borch Machinery says it is taking advantage of the steady growth and acceptance of Chinese machinery in the Asian market, mainly in South Korea, to expand its product range. Overseas Division Manager Haiyan Ma said that the company has enhanced the quality of its machinery to compete with South Korean machine makers LS Mtron and Woojin Plaimm.
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Calls for upgrading machinery standards hina’s plastic product output expanded 11.5% in the first four months of this year, two percentage points higher than the country’s overall industrial output growth, but slowed down from the 16.9% in the same period last year, according to a report from the China National Light Industry Council. The association says the plastics industry has “entered a period of reasonable growth after years of fast development.” During this period, Chinese plastic producers raked in RMB532.7 billion and the country exported RMB16.8 billion worth of plastic products, up 23% compared to last year. Meanwhile, the China Machinery Industry Federation says that structural changes are needed to trim off excess capacity, especially at the lower-end of manufacturing. However, it says that there is not enough capacity in the high-end manufacturing sector. The segment is also veering towards moving up the value chain to remain competitive both in the domestic market and internationally. And many local-based factories are producing machines for export, which are subject to quality standard compliances. German association Euromap, during the Chinaplas show, said that China-made machines that are imported to Europe do not comply with the EU standards. This observation is not just singling out China, the group stressed, but it, together with several trade associations, is batting for a more stringent inspection programme. According to the Italian plastics and rubber machinery trade group Assocomaplast, its inspection programme has found that in the last five years more than 90% of the imported machinery failed to meet safety standards. Thus, Euromap is amenable to a Europe-wide enforcement of the Italian programme since there have been reports of importers avoiding Italian ports and rerouting machinery to other countries with less stringent inspections. And once inside Europe, the machines are transported by land into Italy.
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Borch’s new twoplaten machine with a higher tonnage
Ma said the company also exports its machines to Vietnam, Cambodia, Thailand, Myanmar, Malaysia, Indonesia, and the Philippines. Borch’s strategy in Southeast Asia is to “seize the main markets and develop new markets,” said Ma. But he lamented the stiff price competition. “We must make use of our brand to provide high quality products and fast service to win a bigger market share,” he said, adding that the company expects a 30% increase in turnover this year. As for the other markets, Ma said, “Machines are still in great demand in India but because of the anti-dumping duties imposed by the government, sales have come to a standstill. The situation in the European market as a whole is not very good, especially in Western Europe.” He added, “The Eastern European market has stabilised, while the Russian market has begun to pick up, but the competition is fierce and overall demand is still relatively small.” At the exhibition, Borch showcased a BU600 two-platen machine; a BH200 high-speed IML machine; a BE150 all-electric machine and an RP2190 multi-material machine. 1
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