Cautiously optimistic for the future, CEO Gerd Liebig provides some context behind the healthy growth curve, which he predominantly attributes to orders placed by thepackaging and medical technologysectors."Ourintentionalstrategic focus on these two growth markets over the past few years hasplaced us in a stronger position,helpingus to survive during these difficult times with a strong order increase".
As with the entireplastics industry, demand from the automotive industryhas slumped sharply for the Japanese-German manufacturer of injection moulding machines. TheGroup’sforecast for the consumer segment is also rather cautious: Due to the tense situation on the labour market and the declining propensity of consumers to buy, the company anticipatesa lower inclinationamong moulders to invest. Incontrast, the packagingand medicalsegments are developing very positively this year, and demand for all-electric machines is also rising sharply. "Tocope with the increasein orders, we areutilisingall available resourcesand increasing production capacities inour IntElect seriesconsiderably. " Liebig continues.
As a result of stable sales, Sumitomo (SHI) Demag expects to report a year-on-year 17percent increase in overall incoming orders for2020. "Our plant in Wiehe is operating at full capacity and from November 2020 we will be producing the all-electric small machines at the historic high cycle. The strategic focus on this series is now paying off in full: By the second half of 2020, we will double our production capacity once again in order to meet demand," says Gerd Liebig.
As a result of thisincrease, Sumitomo (SHI) Demag is pushingahead with the planned cooperation with itsJapanese parent company, with Japan commencingproduction of IntElect machineslater in 2020.