As part of the forward integration of Demag Plastics Group (Schwaig / Germany; www.dpg.com) – now Sumitomo (SHI) Demag – into Sumitomo Heavy Industries (SHI, Tokyo / Japan; www.shi.co.jp), the group’s global production capacities are being restructured. Some EUR 50m will be invested in Germany, where production sites will assume a stronger position within the injection moulding machine division. Along with increasing output from Germany, the plant for small-size machines in Wiehe in the eastern part of the country, is to become a centre of excellence for all-electric injection moulding machinery. The site currently manufactures on a large scale for the US market.

Separately, Sumitomo Demag has sold its share in the joint venture L&T Demag Plastics Machinery (Chennai / India) to its long-time partner Larsen & Toubro (L&T, Mumbai / India; www.larsentoubro.com). L&T Demag Plastics Machinery is the market leader in India, and claims to have an annual capacity of 600 machines. The company exports standard hydraulic and hydro-mechanical machines with clamping forces of between 400 and 5,000 kN to Africa, Australia and the Middle East. Sumitomo operates a production line itself in India, which is also the reason for the sale of its share in the jv. Moreover, SHI also cooperates in India with competitor DGP Windsor India (Thane / India; www.wml.co.in), which is also linked to the German machinery manufacturer Kuhne (Sankt Augustin; www.kuhne.de).

There will apparently not be any changes in China. The Sumitomo components factory and the machine production of Sumitomo Demag will continue on their present scale.