Through its subsidiary Demag Plastics Machinery (Ningbo) Co Ltd, German machinery manufacturer Demag Plastics Group (DPG, Schwaig; www.dpg.com) has begun construction on a new production facility at Ningbo / China. This project will provide space both for machine assembly and machining operations and double current production space to around 9,000 m², Demag president and CEO Klaus F. Erkes said at the "Fakuma" trade fair in Friedrichshafen / Germany. The new building, expected to be completed by mid-2007, also will enable a significant increase in production capacity. Up to now, production has been carried out in rented facilities in the same part of the Chinese port.

Following successful restructuring, Demag is on the right path, said Erkes, addressing the company´s financial situation generally. Although prohibited by the MPM holding from providing specific financial data, he stressed that business in 2006 has developed "very well." Before exceptional items, operations are currently operating in the black. The CEO said the basis for future growth will be a streamlined product portfolio consisting of only three product lines, an expansion of activities with all-electric injection moulding machines, the start-up of the new plant in China and the focusing on key user industries.

Using the slogan "Success needs partnership", the company´s Fakuma exhibit demonstrated its focus on becoming a system partner for complete industry solutions. At present, the systems business, which, apart from machines, also includes moulds, automation, peripherals and raw materials, accounts for around 20% of the total volume, the company believes there is scope for increasing this significantly – particularly for medical and packaging applications. The reason for this is the increasing specialisation of numerous converters.