Demag Ningbo to invest EUR7 m in China expansion

Sumitomo (SHI) Demag Plastics Machinery and its Chinese subsidiary Demag Plastics Machinery (DPG) in Ningbo are planning to expand production capacity in China from 650 to 1,000 injection moulding machines/year, through an investment of EUR7 million.

DPG is currently producing the Systec C machine series in Ningbo with a clamping force ranging from 50-1,000 tonnes. In the future, further machine series from the Sumitomo (SHI) Demag product range will be produced in China. In addition, the firm expects to increase its exports of 25%. Besides the local market, DPG also exports the machinery to Southeast Asia, the Middle East and Latin America.

The expansion of production capacity allows the company to meet the increased demand in China and other markets and pave the way for further increase in its market share, according to Stephan Greif, CEO of Demag Ningbo, who has been managing the Ningbo site since 2005.

DPG has been manufacturing machines for the Chinese and other Asian markets since 1998. DPG located to a new plant in 2007, after having relocated to a larger factory premises with 11,000 m production area after achieving complete capacity utilisation.

The aftersales department with its main base in Ningbo controls employees in Dongguan, Chengdu, Suzhou and Shanghai. The team is responsible for taking new Chinese machines into operation at the customer, for machine acceptances, test runs, die validations, process optimisation and customer training. Back office employees in Ningbo and Dongguan look after spare parts provision and customer-specific special solutions. The aftersales department for imported machines installed in China is responsible for maintenance, training and spare parts sales. In addition to its responsibility for German machines, the aftersales department also looks after machines from European and American production transplants, and represents Sepro Robotique in China. It is responsible for the sales and maintenance of linear robots from the French manufacturer. Additional regional offices in Guangdong (southern China) and Suzhou, Jiangsou province, provide proximity to the customer.

(IMA)

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