Sumitomo (SHI) Demag: 15 years of German-Japanese partnership
Sumitomo (SHI) Demag is celebrating 15 years of German-Japanese partnership this year. This occasion was acknowledged by Gerd Liebig, CEO, during the press conference at the beginning of Fakuma 2023. Over this period, synergies have been developed to enhance efficiency and increase market activities, said Gerd Liebig, CEO. As another milestone in the partnership, the increase in market share for all-electric machines was emphasised. “It has more than doubled worldwide,” stated the CEO, announcing further growth in this strategic focus in Europe: “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.”
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 800t and 1,500t for the automotive industry in Germany and China, is set to launch later this month.
“To increase the number of Systec machines between 500t and 1,500t by 70 until 2024 and eventually build 100 machines in China, we invested 3.5 million euros and generously expanded the workshop, which was newly built in 2015,” explained the CEO.
During the press conference, 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 per cent for 2023.
Increased investments in the packaging industry
“The demand for injection moulding machines in Europe is affected by the embargo on Russia, making exports from the EU to Russia impossible since September 2023,” he explained. There is hope in the packaging industry: “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 segments,” predicted Liebig.
The current market situation is characterised by a very weak consumer sector. “Additionally, demand in the electronics industry has also dropped significantly due to its dependency on the automotive and construction industries,” the CEO explained. 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 ten years and is currently close to 30 per cent for Europe.”
