Sumitomo (SHI) Demag CEO Gerd LiebigSumitomo (SHI) Demag is celebrating 15 years of German-Japanese partnership. The milestone was acknowledged by CEO Gerd Liebig during a press conference at the beginning of
Fakuma 2023, the world’s leading trade event for industrial plastics processing, held back in October. Over the period, significant synergies have been developed to enhance efficiency and increase market activities. Mr Liebig said: “The integration of the development, quality, and customer service departments between Japan and Germany has now been successfully implemented.”
Another milestone in the 15-year partnership is the significant increase in market share for all-electric machines. Mr Liebig added: “It has more than doubled worldwide.” Announcing further growth in growth in Europe, he remarked: “With the introduction of the IntElect S and PAC-E, we expect an additional increase in market share in the next two to three years.”
Mr Liebig also elaborated on Sumitomo (SHI) Demag’s product strategy, which is based on different platforms. For instance, a platform for all-electric injection moulding machines was established, enabling the production of the small IntElect in Germany, Japan, and from 2024, in China. The second platform concerns hydraulic injection moulding machines with high closing force classes. The Systec platform for machines with a clamping force between 800 and 1,500 tonnes for the automotive industry in Germany and China, is set to launch later this month.
Mr Liebig said: “To increase the number of Systec machines by 70 until 2024 and eventually build 100 machines in China, we invested 3.5 million euros and generously expanded the workshop, which was originally built in 2015. This allows us to meet the increased demand from new, strong automotive manufacturers in China for large machines and significantly reduce delivery times for this platform through integration between Germany and China. The opening of the expanded facility took place on 13 October in Ningbo.”
Challenging economic situationDuring the press conference, Mr Liebig also addressed the current challenging economic situation characterised by high inflation, high interest rates, and particularly in Germany compared to other European countries — very high energy prices. Additionally, the market volume for injection moulding machines in the European automotive industry has significantly decreased as German manufacturers increasingly focus on premium vehicles. Sumitomo (SHI) Demag expects a substantial revenue decline of around 20% for 2023.
Mr Liebig explained: “The demand for injection moulding machines in Europe is also affected by the embargo on Russia, making exports impossible since September 2023.” However, there is more scope for growth in the packaging industry. He predicted: “Another defining factor will be the sharply rising demand for pharmaceutical packaging and closure caps, which will significantly boost the high-performance applications segment. Furthermore, the general demand for all-electric machines, which has seen significant growth in the packaging sector, will now also play an increasingly significant role in the consumer and automotive sectors.”
Mr Liebig said that the current market situation is also characterised by a very weak consumer sector. Mr Liebig. He continued: “Additionally, demand in the electronics industry has also dropped significantly due to its dependency on the automotive and construction industries.” Sumitomo (SHI) Demag expects a consistently high revenue level in the medical technology sector and significantly increased investments in the packaging industry. “Our market share for all-electric machines has more than doubled in the last 10 years and is currently close to 30% for Europe.”
Based on a market survey conducted by Sumitomo (SHI) Demag, international customers say that machine parameters and the competence, speed, and availability of customer service are the most important factors when purchasing a machine. According to Mr Liebig, in recent years, the weighting of decision criteria has seen a significant increase in ‘total cost of ownership’ and ‘energy consumption’.
In October 2023, after winning a bronze medal the previous year, the company was awarded the EcoVadis Silver Medal for sustainable business practices.