ARBURG
Decline in sales in 2002 / “Price struggles” for injection moulding machines / Slight upturn
Consolidated sales at injection moulding machine producer Arburg GmbH + Co (D-72290 Lossburg; www.arburg.com) fell 17% compared with the previous year to stand at EUR 271m. This was the figure given to the press by company partner Eugen Hehl on the occasion of this year´s “Technology Conference” at the company´s head office in Lossburg. Despite the weak economic climate and an uncertain political situation, some 2,850 customers, including 1,010 from abroad, made the journey to the Black Forest on 20-21 March to attend the Arburg in-house trade fair – a figure which testifies to the high level of customer bonding that has long characterised this company.
The chief reason for the decline, according to Hehl, was a sharp drop in the sales of small machines in particular, where Arburg is regarded as market leader in Europe at least. The fall was partly cushioned by the success recorded with the company´s “new dimension” of machines – in the 2,200 to 4,000 kN clamping force range – which have been successively introduced since 2000. These machines now account for some 10% of incoming orders, and the robot systems that go with them have attained a similar order of magnitude too.
The current price struggle on the injection moulding machine market is causing concern at Lossburg. Hehl described the price reductions of up to 45% being offered to secure market shares as “ruinous competition”. It would ultimately be seen which companies had retained sufficient reserves to keep pace when an upturn set in at some time in the future, he commented with regard to the reports of redundancies in the sector. Arburg, which is so far reputed to have withstood lean periods through the personal commitment of its partners, had 1,866 employees on 31 December 2002. The reports of short- time working that had been necessary from time to time were not elaborated on.
Following completion of the company´s portfolio expansion, Arburg´s new marketing program goes under the name of “Modularity All-round”. This highlights the scope that exists for combining different standardised technical components, such as drive, metering and automation, etc., to produce a “tailor-made” machine.
While the majority of producers are reducing their vertical range of production, Arburg is pursuing completely the opposite strategy. Its already high level of in-house production of 60% is being stepped up still further with the construction of a new plant for tie-bar production. This has been prompted by the bigger components on the higher clamping-force machines, which cannot be manufactured sufficiently rationally by the current process. Corrosion protection is being enhanced at the same time. This is also evident from the appearance of the tie-bars, which will be in anodised black rather than polished chromium.
Outlining the present situation and the prospects for the current year, Hehl explained that there had been a slight upturn in demand in January and February. And one surprising factor in this respect that Plasteurope.com learned in discussions outside the main events – the revival had started on the German market, while the EU market was still showing great restraint. It was impossible to give a forecast for the year as a whole, the Arburg management said, in view of the war.
The chief reason for the decline, according to Hehl, was a sharp drop in the sales of small machines in particular, where Arburg is regarded as market leader in Europe at least. The fall was partly cushioned by the success recorded with the company´s “new dimension” of machines – in the 2,200 to 4,000 kN clamping force range – which have been successively introduced since 2000. These machines now account for some 10% of incoming orders, and the robot systems that go with them have attained a similar order of magnitude too.
The current price struggle on the injection moulding machine market is causing concern at Lossburg. Hehl described the price reductions of up to 45% being offered to secure market shares as “ruinous competition”. It would ultimately be seen which companies had retained sufficient reserves to keep pace when an upturn set in at some time in the future, he commented with regard to the reports of redundancies in the sector. Arburg, which is so far reputed to have withstood lean periods through the personal commitment of its partners, had 1,866 employees on 31 December 2002. The reports of short- time working that had been necessary from time to time were not elaborated on.
Following completion of the company´s portfolio expansion, Arburg´s new marketing program goes under the name of “Modularity All-round”. This highlights the scope that exists for combining different standardised technical components, such as drive, metering and automation, etc., to produce a “tailor-made” machine.
While the majority of producers are reducing their vertical range of production, Arburg is pursuing completely the opposite strategy. Its already high level of in-house production of 60% is being stepped up still further with the construction of a new plant for tie-bar production. This has been prompted by the bigger components on the higher clamping-force machines, which cannot be manufactured sufficiently rationally by the current process. Corrosion protection is being enhanced at the same time. This is also evident from the appearance of the tie-bars, which will be in anodised black rather than polished chromium.
Outlining the present situation and the prospects for the current year, Hehl explained that there had been a slight upturn in demand in January and February. And one surprising factor in this respect that Plasteurope.com learned in discussions outside the main events – the revival had started on the German market, while the EU market was still showing great restraint. It was impossible to give a forecast for the year as a whole, the Arburg management said, in view of the war.
24.04.2003 Plasteurope.com [14740]
Published on 24.04.2003