Chinaplas 2015: Injection molding machine market shows signs of maturation; focus on automation and system solutions

China's new normal is a seven percent economic growth rate but one injection machine builders sees this as a positive sign. "We see more focus on quality as the market transforms to a mature economy," says. Gero Willmeroth, Sales and Service President at Engel Machinery (Shanghai) (booth 4.1J41). "We see a growing premium segment and an increase in sales of system solutions as processors have to compete in the market on a higher level."

To meet these new Chinese market dynamics, Engel has established an Automation Centre at the site of its large-scale machine production facility in Shanghai where automation equipment is configured for local customers. With five automation experts at present, this facility will continue to be expanded within the current fiscal year. "Demand for automation is increasing strongly on account of higher labor costs and needs for efficiency and precision," says Willmeroth. "In a few years we may even see a labor shortage so there is no choice but to use automation solutions, and not just pick-and-place robots but also automated insert placement and assembly processes."

Engel also has eight application engineers stationed in China to support introduction of new, more complex technologies into China that will enable processors to differentiate themselves. "When you introduce new technologies, you have to take your customers by the hand as it is new to them," says Willmeroth. "Support continues after the system is installed in order to optimize it."

Engel has nine production plants worldwide, including three in Asia (Pyongtaek, Korea for small- and medium-size machines up to 500 tonnes; Shanghai, China for machines of 350 to 5500 tonnes' clamping force: and the Wintec plant in Changzhou, China). "Production in Asia covers around 85% of machines sold in Asia," says Willmeroth. "Some specialty machines are imported from Euroipe as are linear motors."

Engel achieved sales of around $1.4 billion in fiscal 2014-2015, up from $1.24 billion the previous year. Asia accounts for 17% of overall sales and with the Wintec investment, Engel clearly has a strategy in place to grow sales further according to Willmeroth.

Further, Engel's employee level has hit 4800, with 320 in Engel China. Engel also offers apprenticeships to 170 young boys and girls in no less than nine professions, thus securing the quality of its products and services in the long term. The program commenced last year in China with 10 apprentices entering a four-year program at the Shanghai plant. Ten more apprentices joined the Shanghai program this year. "Engel manufactures to the same standards worldwide so the people must aloso be on the same level," explains Willmeroth.

Asian premieres at the Engel stand include the e-pic robot-a combination of a linear robot with a swiveling axis-that was first introduced at Fakuma last year and. "Our engineers put a lot of emphasis on the kinematics to reduce energy consumption," notes Willmeroth.

The second Asian debut is a duo 2550/600 molding machine with an integrated Engel viper 20 linear robot in the automotive exhibition area of its stand molding the front grill of a car. "The machine features a lower frame for easy access although if a chute is required for product drop, a higher machine is still available," says Shanghai.