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Injection molding: Sumitomo-Demag is the new name

Article-Injection molding: Sumitomo-Demag is the new name

During a press conference last week at the Fakuma trade show in Germany, Raik Flaemig, marketing manager at injection molding machine maker Sumitomo-Demag, recalled, “I can remember one year ago; there were so many questions (about then-Demag Plastics Group’s future).” In the interim the largest question—who would buy DPG?- was answered with Japanese competitor Sumitomo Heavy Industries (SHI; Tokyo) acquiring DPG in March 2008 and, starting last week, officially renaming the company Sumitomo-Dem

in March 2008 and, starting last week, officially renaming the company Sumitomo-Demag. With the new name plastered in large letters above the firm’s stand and on its machines running during the show, Flaemig said, “I think some of our customers really realized today what happened.” They obviously were not deterred as the company’s stand was essentially ‘standing room only’ for the length of the show.

During the press conference, company officials explained how the companies hope to develop as they move forward and further integrate. Together they have seven production facilities, with 3000 employees and an annual turnover of about euro 600 million, making the combined revenue of Sumitomo and Sumitomo-Demag, with Engel, one of the two largest injection molding machine makers, based on revenues.

The marketing / sales strategy as presented will have the North American market served by Sumitomo’s electric machines, and Demag’s hydraulic and hybrid machines; Demag’s IntElect range of electric machines will not be sold there. In Europe, Demag machines will be marketed. The strategy in Asia matches that of North America. For those IntElect machines, Sumitomo components are sourced for the drives. By next year’s Fakuma show, said Sumitomo-Demag CEO Tetsuya Okamura, the company will have even higher tonnage electric presses of the IntElect brand available, greater than the current 210 tonne sizing. Integration of the machine ranges is scheduled to continue, he added, so that by 2011 “a global machine” will be offered, regardless of region.     

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