Machinery builders change hands and status

Mouldmakers that often embark on partnership projects with injection moulding machinery suppliers have had a confusing time recently. The players have shifted in several ways in recent months, and more changes can be expected later in the year.

Austrian-based Battenfeld Kunststoffmachinen GmbH is looking for a new owner, after venture capital firm Adcuram (Munich, Germany) announced it wanted to exit the moulding machine business because of chronically low margins. Georg Tinchshert, acting managing director of Battenfeld, says he hopes a new owner will be in place by the end of March. He adds that his company has had about 100 enquiries from interested buyers, and has retained Deloitte and Touche to help sort through them.

Another large injection moulding machine builder, Demag, is being purchased by Japan's Sumitomo Heavy Industries, Ltd. Demag includes Demag Ergotech GmbH (Schwaig, Germany) and Van Dorn Demag Corp. (Strongsville, Ohio). It was no secret the Demag group was up for sale, and the deal is expected to close as of March 3, according to a statement from Sumitomo. The outcome should be an operation with the largest sales figure of injection moulding machinery of any company that manufactures globally, replacing Austria's Engel Holding GmbH. in this position. China's Ningbo Haitian Group Ltd. has the largest sales by number of actual presses sold.
Sumitomo and Demag are conducting the deal through an exchange of stock, with Sumitomo gaining complete control of Demag. Both companies will continue to make all-electric machines and perpetuate some of their brand-names. The big  advantage is that Sumitomo gains a foothold in Europe and other markets where it is currently only a minor player, while Demag loses a Eurocentric approach. Demag ceased manufacturing operations in North America last year, and only conducts sales activities here.

As for Engel, it is still finalising the changes in its North American manufacturing operations, However, all machinery assembly and manufacturing at its Guelph, Ont. headquarters will cease by May, and the building will be sold off. A much smaller facility with about 30 staff involved in sales and in engineering work, especially with robotics and automation, will be housed in another building.

www.battenfeld-imt.com
www.shi.co.jp/english
www.dpg.com
www.engel-ec.com