Injection Moulding Asia Machinery News
Machine makers roll out expansion plans in China Wintec will target the large commodity applications segment and will supply machines that will be different to Engel’s product range, offering reduced modularity and a smaller range of options. With the reduced complexity and specifications, the firm says it will be able to offer more competitive prices and with short delivery times. Basically, it intends to capture the market share currently occupied by Asian suppliers from Taiwan, South Korea and China. “We are entering a segment competing with Asian machines and not Western machines; the price value correlation will show that it is worthwhile for customers to invest in a Wintec machine rather than an Asian one,” said Neumann, adding that all the parts will be made locally, except for the controls that will come from Europe. Engel already operates a facility in Shanghai for producing large machines. “The reason why w e decided to start a second facility is to focus on three main applications: white goods; automotive and technical parts,” added Neumann. Wintec is also establishing a completely independent sales and service structure in China. Another European supplier that already has a facility in China and is on an expansion mode is Demag Plastics Machinery (Ningbo), a 100% subsidiary of Sumitomo (SHI) Demag. It recently broke ground on a EUR7 million facility, located around 10 km from its existing plant in Ningbo. With a built-up area of 12,330 sq m, the plant will come on stream in July 2015. It is expected to have a production capacity of up to 1,000 machines/year from its current capacity of 650 machines/year.
The Chinese injection moulding machine market has undergone a transformation where more hightech machines are being produced domestically. This trend was started by foreign machine makers that are now on an expansion drive, as observed at the recent Chinaplas 2014 show.
More locally made machinery n 2013, China’s total consumption of plastic machinery (excluding parts) was valued at RMB49 billion, compared to RMB49.3 billion in 2012. Of this, imports constituted 23%, compared to 27% the previous year, while local machinery produced was 77%, over the 73% from 2012, according to China Plastics Machinery Industry Association (CPMIA). Meanwhile in 2013, imports of machinery from countries like Japan, Germany, Taiwan and Italy were all down, against 2012 data, with the exception of South Korea. China’s processing market grew by 14.3% reaching USD304 billion in 2013. Hence, the domestic market constitutes the largest sales market for Chinese plastics machinery makers and grew by 12% or a value of RMB42 billion in 2013. China’s largest injection moulding machine maker Haitian International Holdings also recorded higher domestic sales of 18.8% in 2013. But according to Helmar Franz, the company’s Chief Strategy Officer, who was speaking at a media briefing, a slower growth of 5% is expected for 2014, with more challenging times expected.
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Full speed ahead for Engel and Demag China ven with the slower growth expected there is no letting up in plans for expansions. Austria-headquartered Engel Holding is setting up a 22,000 sq m production plant in Changzhou, Jiangsu, through its 100%-owned subsidiary, Wintec Engel Machinery. With 100 employees, the plant is targeting a capacity of 300 machines/year. The core target market will be China, as well as processors in Southeast Asia, South Korea, Taiwan, and India. “Wintec will appeal to processors looking for relatively standardised machines with a limited range of options,” said CEO Peter Neumann, speaking at a media briefing. He also said with Engel’s market share of 11% in Asia, “there is room for growth.”
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Officials from Demag Ningbo recently laid the foundation stone for the new facility in Ningbo, which is planned to come on stream next year
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