BATTENFELD
Surge in new orders / Injection moulding still in loss / Strict cost management
At the recent annual financial press conference of SMS AG (D-40088 Düsseldorf), chairman Heinrich Weiss had reason to smile again. For the first time in several years he had positive news about the group's plastic machinery business, Battenfeld Group (HQ: D-58540 Meinerzhagen). Battenfeld's restructuring programme has been successfully completed, and "we are a force to be reckoned with again in the plastics sector," he asserted. Thanks to strict cost management, profits improved substantially in financial year 1996/96 (30 June). The only negative factor was continuing losses in the injection moulding sector, but as Weiss remarked, "we are not the only ones losing money."
Dr. Helmut Eschwey, SMS managing board member with responsibility for Battenfeld, said he expects injection moulding machinery to return to the black before the end of the current financial year. Starting in financial year 1998/99, he forecast annual average growth of around 20% with no decline in employment. In financial year 1996/97, Battenfeld's order volume rose by nearly 20% to DEM 852m. Adjusted for the sale of Battenfeld Fischer Blasformtechnik to Krupp Kunststofftechnik (PIE 21, 1996) the rise was 32%.
The company gained market share in all of its three fields, injection moulding, extrusion and films. Group sales eased forward 1.2% to DEM 822m. Some 47% of overall order volume was for injection moulding machinery, 28% for extrusion and 25% for films. Orders for injection moulding machinery (adjusted for the divestment) rose 33% to DEM 374m. Growth was driven clearly by the automotive sector.
Battenfeld plans to further expand its production facilities outside Germany, with investment likely in the US, India and China. With a global market share of 25%, the company regards itself as undisputed market leader in film production machinery, as well as in pipe and profile extrusion (also 25%), while its position in injection moulding – with 4% of the world market – is sixth or seventh. In certain injection moulding market segments, automotive for example, the goal "is to be number one," said Eschwey.
READER SERVICE: Press conference speech by Heinrich Weiss: PIE-No. 41507 – SMS annual report 1996-97 with detailed information on plastics machinery: PIE-No. 41508 (all documents in German).
Dr. Helmut Eschwey, SMS managing board member with responsibility for Battenfeld, said he expects injection moulding machinery to return to the black before the end of the current financial year. Starting in financial year 1998/99, he forecast annual average growth of around 20% with no decline in employment. In financial year 1996/97, Battenfeld's order volume rose by nearly 20% to DEM 852m. Adjusted for the sale of Battenfeld Fischer Blasformtechnik to Krupp Kunststofftechnik (PIE 21, 1996) the rise was 32%.
The company gained market share in all of its three fields, injection moulding, extrusion and films. Group sales eased forward 1.2% to DEM 822m. Some 47% of overall order volume was for injection moulding machinery, 28% for extrusion and 25% for films. Orders for injection moulding machinery (adjusted for the divestment) rose 33% to DEM 374m. Growth was driven clearly by the automotive sector.
Battenfeld plans to further expand its production facilities outside Germany, with investment likely in the US, India and China. With a global market share of 25%, the company regards itself as undisputed market leader in film production machinery, as well as in pipe and profile extrusion (also 25%), while its position in injection moulding – with 4% of the world market – is sixth or seventh. In certain injection moulding market segments, automotive for example, the goal "is to be number one," said Eschwey.
READER SERVICE: Press conference speech by Heinrich Weiss: PIE-No. 41507 – SMS annual report 1996-97 with detailed information on plastics machinery: PIE-No. 41508 (all documents in German).
31.10.1997 Plasteurope.com [19061]
Published on 31.10.1997