SUMITOMO
Takeover of Demag Plastics Group confirmed / Deal to close in early March / Ergotech and Van Dorn included
The board of directors of Sumitomo Heavy Industries (SHI, Tokyo / Japan; www.shi.co.jp) has agreed to the complete takeover of German injection moulder Demag Plastics Group (DPG, Schwaig; www.dpg.com) on 3 March 2008 – see PIEWEb of 09.01.2008). Seller is MPM Holdings(mpm, Munich; www.mpm-group.com). The deal includes Demag Ergotech with plants at Schwaig and Wiehe / Germany, Ningbo / China and Chennai / India, as well as US-based sales and service company Van Dorn Demag Corporation (Strongsville, Ohio). The transaction price has not been disclosed.
Demag Ergotech, founded in 1922, currently employs 1,331 people. It reported sales of EUR 191m in fiscal 2007 (30 September), a gain of just under 1%. Van Dorn, which ceased production in 2007 (see Plasteurope.com Web of 09.07.2007), had sales of EUR 45.5m, a decline of more than 37% in euro terms.
The Japanese buyer has a broad machinery manufacturing portfolio generating sales of JPY 600 bn (around EUR 3.9 bn) annually. Turnover in the Mass-Produced Machinery Systems segments, to which the injection moulding business belongs, totalled JPY 223 bn (EUR 1.4 bn) in 2006/2007 (30 March), the last fiscal year for which figures are available. As with all Japanese manufacturers, the focus is on electrical machinery.
SHI has made an enormous expansion effort since the year 2000 and now is considered to be Japan’s number two player in injection moulding, with annual output of 4,000 machines. Some 60% of production is exported. Alongside its main site at Chiba / Japan, The company also has US production facilities at Jefferson, Georgia, north of Atlanta. Headquarters of SHI Plastics Machinery (Europe) is at Oude Meer / The Netherlands.
SHI says its decision to acquire the Demag group reflects plans to expand its “competitive” electric machinery technology to injection moulding markets in the US, Europe, Russia, India and Brazil. This segment accounts for around 10% of the German group’s portfolio. With the Demag acquisition concluded, Sumitomo could close ranks to the current injection moulding global market leader, Austria’s Engel group. In terms of units produced, China’s Haitian, with a current annual output of more than 17,000 injection moulding machines, is the undisputed number one.
Demag Ergotech, founded in 1922, currently employs 1,331 people. It reported sales of EUR 191m in fiscal 2007 (30 September), a gain of just under 1%. Van Dorn, which ceased production in 2007 (see Plasteurope.com Web of 09.07.2007), had sales of EUR 45.5m, a decline of more than 37% in euro terms.
The Japanese buyer has a broad machinery manufacturing portfolio generating sales of JPY 600 bn (around EUR 3.9 bn) annually. Turnover in the Mass-Produced Machinery Systems segments, to which the injection moulding business belongs, totalled JPY 223 bn (EUR 1.4 bn) in 2006/2007 (30 March), the last fiscal year for which figures are available. As with all Japanese manufacturers, the focus is on electrical machinery.
SHI has made an enormous expansion effort since the year 2000 and now is considered to be Japan’s number two player in injection moulding, with annual output of 4,000 machines. Some 60% of production is exported. Alongside its main site at Chiba / Japan, The company also has US production facilities at Jefferson, Georgia, north of Atlanta. Headquarters of SHI Plastics Machinery (Europe) is at Oude Meer / The Netherlands.
SHI says its decision to acquire the Demag group reflects plans to expand its “competitive” electric machinery technology to injection moulding markets in the US, Europe, Russia, India and Brazil. This segment accounts for around 10% of the German group’s portfolio. With the Demag acquisition concluded, Sumitomo could close ranks to the current injection moulding global market leader, Austria’s Engel group. In terms of units produced, China’s Haitian, with a current annual output of more than 17,000 injection moulding machines, is the undisputed number one.
15.02.2008 Plasteurope.com [210118]
Published on 15.02.2008
German version of this article...