Compounding systems specialist Coperion Holding (D-70469 Stuttgart; www.coperion.com) joined the chorus of companies expressing optimism about business at the recent K 2004 in Düsseldorf. Managing board chairman Wolfgang-Dietrich Hein said he saw clear signs for a turnaround in the machinery market and an end to the rather weak performance seen during the past three years. In 2004, the company expects sales of EUR 315m, including the turnover produced by the newly acquired subsidiary Keya (Nanjing /China; www.keya-cn.com), with incoming orders of EUR 340m (EUR 300m). In 2002, turnover totalled EUR 280m and the company reported sales of more than EUR 300m in 2003. For 2005 and 2006 respectively, the two business divisions are expected to generate a 25% increase.

Over the next three years, Coperion will expand its service and spare parts business. These two segments last represented about 25% of the company´s sales total. Hein is convinced that turnover in these segments can be increased threefold and a 100% increase can be achieved in the spare parts business alone. Price reductions of up to 50% are seen as the key to success. “Price cuts in the area of 20% are not likely to attract any customers these days,” Hein asserted. Dismissing the obvious conclusion that these parts would be produced in Asia, Hein explained that the company planned to use “a significantly less expensive production process.” The new focus on the company´s formerly mostly outsourced spare parts business is also intended to discourage copycat production, which seems to be a pressing problem for Coperion.