At an investment of "not less than EUR 10m", the newly founded Zhafir Plastics Machinery (Schwäbisch-Gmünd / Germany; www.zhafir.com) is currently building a development centre for all-electric injection moulding machinery at Amberg / Germany, scheduled to open at the end of 2006, along with a neighbouring assembly block, to be completed in 2007. The finished concept is due to be presented at "K 07" in November of next year. The first machines with a clamping force of up to 5,000 kN will leave the factory in January 2008. An unusual twist is that the overwhelming majority of these premium-segment made-in-Germany machines are destined for China and Asia.

The privately-owned Zhafir was established by Jianming Zhang, CEO of the Ningbo Haitian Group (Ningbo / China; www.haitian.com) and his managing board colleague, Helmar Franz, former CEO and strategist of Demag Plastics Group (DPG, Schwaig / Germany; www.dpg.com), together with unnamed partners. As Franz explains, Europe is not the target market for this machinery, but production here should help the company establish itself successfully in the premium segment of the Asian market.

Haitian is feeling international pressure in its home market and is taking appropriate action to remedy the situation. The goal is to solidify its market share in China – currently 25%. The company also has set its sights on becoming market leader in Asia as a whole, where its machines at present have a market share of a mere 2-3%. Up to now a low-cost mass producer, Haitian is in the process of introducing its first series of all-electric machines, with which it aims to penetrate the medium-priced segment. Zhafir will fill the gap with its "made in Europe" premium machines, approaching from the top segment downwards, and targeting competition with Japanese producers and European-Chinese joint ventures.

In 2005, Haitian, which clearly will define Zhafir´s policy, sold some 14,000 machines worldwide, with exports representing 3,000 of the total. Some 1,100 of the exported machines went to Europe, for installation primarily in Turkey (650), Russia (140) and Poland (120). This yields a market share of around 10%, which Franz hopes to raise to 15% by 2010.