China's plastic processing machinery market dominates
July 06, 2018
In 2005, although the plastics processing machinery market did not show a rapid development, it still showed a steady increase. Especially in the Chinese market, as China’s huge demand for steel has caused the rise of international steel prices to a large extent, foreign manufacturers hope to offset the increase in costs by purchasing plastic processing machines and components in China and thus compete in the competition. The fierce competition in the plastics manufacturing equipment market has led to a steady increase in the market for plastics processing machinery in China; the second-largest presses in the world have taken the lead in China and increased their investment in the Chinese market, hoping to be in China. In the huge market, grab the top spot.
Husky Injection Molding Systems Ltd., the manufacturer of injection molding machines, announced plans to produce small-tonnage injection molding machines of its various models at its Asian headquarters in Shanghai; another manufacturer, Milacron Inc., produced a joint venture in Jiangyin. An injection molding machine has been delivered to customers; Toshiba Machine Co., Ltd. of Japan has established its second injection molding machine assembly plant in Shanghai; Kautex Maschinenbau GmbH, a manufacturer of blow molding machines in Germany, has expanded the scale of its manufacturing facility in Shunde; Krauss, Germany -Maffei Kuntstofftechnik GmbH and Dalian Shide Group announced that they will set up a joint venture in China for the production of extruders; Demag Plastics Group will acquire the shares of Ningbo Haitian Group Co. Ltd., a joint venture partner in Ningbo, to become this Ningbo-based company. The wholly-owned shareholder of the joint venture plant has produced about 1,000 injection molding machines since its establishment in 1998.
The plastics processing machinery market in China has been sharpened by the Huo Huo, but in other parts of the world, dark clouds have emerged. In September 2005, Milacron Inc. was forced to announce that the company plans to close down its plants in Europe and North America. They called the plan "an important measure to reduce costs." Battenfeld's injection molding machine factory in Meinerzhagen It will close and cut 470 jobs. The plant has been manufacturing injection molding machines for 50 years; Mannesmann Plastics Machinery GmbH, headquartered in Germany, announced that Demag Plastics Group will reduce the number of employees from its two injection molding machine factories by 100, one in Schwaig and the other in Wiehe, this year. Earlier, Demag Group has laid off 130 employees in Germany and its factory in Strongsville, Ohio.
Just as the growth of the US plastics processing machinery market was stable, hurricane Katrina and Rita unexpectedly hit the coast of the Gulf of Mexico, destroyed a large number of homes and affected major US refineries. Resin prices soared and there was a supply shortage. In 2004, the increase in resin prices was already high. Foreseeing the next year, high resin prices will completely lose profitable space for already-profitable American plastics manufacturers. If there is no profit, buying new equipment simply cannot be discussed.
