Sumitomo (SHI) Demag doubling machine production capacity in China

Groundbreaking ceremony in the presence of local political figures

Sumitomo (SHI) Demag China has held a groundbreaking ceremony at its Ningbo site, marking the start of the construction of a new 4,000m² production hall. Attended by the mayor and city councillors from the Beilun district, CEO Pietro Scattarreggia said that the bigger facility sets the company on the path to future growth, creating 50 new jobs and doubling production capacity.

Granted permission to start construction towards the end of 2022, Mr Scattarreggia said that the new facility is set to open in the autumn to coincide with the Group’s 25th production anniversary in China. Putting into context the enormous market potential; he added that the Asian market in general, particularly automotive and electromobility in China, is booming. Mr Scattarreggia continued: “Having experienced the strongest performance in the company’s history in 2021 and subsequent economic slowdown last year as a result of coronavirus policy restrictions, the outlook remains very positive.”

The expansion of the Ningbo production hall not only gives the team more space to manufacture more machines, but also expand production to include the larger tonnage Systec Servo machines. Mr Scattarreggia explained: “Until now, our production has been limited to machines with clamp forces up to 1,000 tonnes. Given the demand for larger precision components, being able to extend our product portfolio up to 1,500 tonnes means we can drastically reduce delivery times for customers in China and Asia.”

With its hybrid drive concept, the Systec Servo series, characterised by its absolute precision, excellent stability and durability, offers manufacturers of automotive, white goods and consumer components a powerful and energy efficient system. With full process integration for flexible and versatile production of larger components.

Mr Scattarreggia said that the Systec series is ideally suited to these processing requirements. To support the manufacturing of these larger and heavier machines, the Ningbo production hall is installing stronger cranes. Additionally, Sumitomo (SHI) Demag China remains committed to reducing its production carbon footprint. An installation of a new solar system measuring 7,000m² last September means that the facility can operate virtually independent of the local energy supply.

In recent years, many production sites in China have felt the impact of power rationing. With a solar source, the Ningbo facility will no longer be affected by future rations. He said: “This is of great significance for production stability.”