Sumitomo Demag Invests $70 Million to Strengthen German Manufacturing Presence

In preparation for the anticipated revival of demand when global markets recover from the economic turmoil, Sumitomo Demag Plastics Machinery GmbH (SDPM) (Schwaig, Germany) plans to invest $70 million to convert its production facility in Wiehe, Germany, into a major base to manufacture a range of all-electric injection-molding machines. Industrial Info Resources (Sugar Land, TX) reports that the firm also plans to strengthen its production facility in Schwaig. SDPM's move to strengthen its manufacturing presence in Germany is in line with the strategic reorganization of production tasks within Sumitomo Heavy Industries Limited (SHI) (Tokyo, Japan).

The Wiehe plant currently produces hydraulic and all-electric machines with clamping forces of up to 210 tons. The upgraded facility will manufacture the firm's range of zero-molding SE-machines, designed for the Japanese market, as well as the new IntElect model for the European market.

The SE range of machines is based on the zero-molding technology that helps to avoid defects and scrap during the production process. It is available in two models: the SE-DUZ with clamping forces of 20-200 tons, and the SE-HDZ with clamping forces of 250-500 tons. The IntElect model is available in the "smart" and "performance" configuration levels, with clamping forces of 50 tons, 100 tons, 160 tons and 210 tons.

In India, the Demag Plastics Group had been active since 2001 through a 50:50 joint venture with Larsen & Toubro Limited (L&T) (Mumbai). In 2002, the joint-venture entity L&T Demag Plastics Machinery Limited (Chennai, Tamil Nadu) set up its first manufacturing unit for injection-molding machines in the country. This was followed by a second factory in Chennai in 2005, which doubled the joint venture's production capacity to 1,000 machines per year with clamping forces of 45-1,200 tons. However, following its acquisition of the Demag Plastics Group in March 2008, SHI announced plans to set up an independent subsidiary in India and sold its stake in the joint venture to L&T. SHI has a long-standing technical collaboration with Windsor Machines Limited (Thane, Maharashtra), which manufactures plastic processing machinery.

SDPM anticipates an early and strong global demand for all-electric injection-molding machines of smaller capacities once markets worldwide begin to recover. With modern information technology equipment and digital home appliances being designed to be sleeker and lighter than earlier models, there is an increase in demand for smaller, thinner, lighter and more complex injection-molded parts and components that constitute these products. This, in turn, requires all-electric injection-molding machines that have high controllability, stability, super precision and reproducibility. The use of high-response servo technology in injection-molding machines, such as SHI's SE-DUZ and SE-HDZ range of products, has proven to be effective in achieving precise motion control.

According to analyses made in early 2007, the demand for injection-molded plastics in the U.S. was estimated to grow at an annual rate of 2.8 percent, equivalent to a market value of $14.7 billion, by 2010. Over the same period, the total cost of injection-molded products in the U.S. was estimated to reach $36.8 billion, with resins accounting for 40 percent of the product costs.