Fewer than 6,000 machines were sold in Europe last year compared with 14,300 in 2007 – indisputable proof, if any were needed, that the future of injection moulding machine manufacture is unlikely to be in this region. "We never imagined that the market could cave in like this. For a while, it was stone dead." Peter Neumann, CEO of Engel Holding, shook his head as he spoke, as if he still could not understand what had actually happened. "In the first half of 2008, our sales were still growing at around 20%, and we were heading for a new record."

In fiscal year 2009/2010 (31.3.), Engel (Schwertberg / Austria; www.engelglobal.com) posted machine sales with a value of EUR 358m, 70% of which were models with hydraulic drive, 20% with electric drive and 10% complete systems. The company is confident about its ability to hold on to its market share of 27.2% in Europe.

Worldwide, the machine manufacturer now has a workforce of 3,200 again after reducing the number to 3,000 at the peak of the crisis. A large number of the 800 or so jobs lost were attributable to the closure of the production plant in Guelph / Canada – see Plasteurope.com of 06.02.2008 – where between 200 and 250 large-sized machines were formerly built a year. The regional restructuring has been balanced out by expansion of the plant in St. Valentin / Austria. Neumann emphasised, however, that the closure had not meant any loss of market share in North America. In the United States, Canada and Mexico, Engel puts its share at around 18% – worldwide, 13%.

For 2010/11, Engel anticipates total production of a good 2,300, and perhaps even 2,400 machines of all sizes, which would be just under 60% of the pre-crisis volume. At the Schwertberg site alone, the number of assembled machines dropped from 2,000 before the crisis to its present 1,470 – and that with a capacity of around 2,500 machines.

The impact of the slump in turnover has been softened by sales of special machines – multi-component models and automation – as well as forecast growth in Asia of 5% over the next few years. Both Asian plants – the large machine factory in Shanghai / China and the production of small machines at Engel Machinery Korea in Pungtaek – are operating at maximum capacity. Initial thoughts are being given to doubling the capacity in Shanghai, but the timeframe is not yet clear. What is certain is that Engel will focus its future investments very much on Asia, now the construction in Queretaro / Mexico has been completed. The group will move into its new 2,000 m² pilot plant in June, and operations are due to begin in September.

At the "K 2010" fair in October, under the motto "Inject the Future", Engel will present, among other things, an injection unit 50 for micro-injection moulding (minimum part weight 0.1 g), the "e-Cap 420", another all-electric model for cap production with short cycle times, and the new "Viper" linear robot range. To coincide with this innovation offensive, management is making plans for the expected steel price increase, which is likely to be in the order of 15-20% by the end of 2010. Neumann is considering the introduction of a material surcharge similar to the one introduced a few years ago.