October 16, 2024 16:37
During a press conference held yesterday at Fakuma, the German injection molding machine maker Arburg shared insights into its financial and market situation and announced a change in its approach to machine production, which until now had been concentrated at its industrial hub in Lossburg, Germany.
While confirming that the company “was, is, and will remain an independent, family-owned company,” and reaffirming Lossburg as the main production site, Managing Partner and Spokesperson for the Management Team, Michael Hehl, announced the company’s intention to internationalize production with a “local-to-local” approach in terms of both supply chains and assembly of injection molding machines.
This marks a shift from simply equipping machines for customers, which had already been done at local Arburg Technology Factories (ATFs) in the Czech Republic, China, and the U.S., by adding automation and auxiliary equipment.
The first step on this path was taken mid-year with the start of assembly of IMM in Pinghu, China. These machines are intended exclusively for the Asian markets and are sold under the Allrounder Golden Electric EVO brand. A similar project, although not yet fully defined, will eventually be extended to the U.S.
Arburg intends for this move not to lead to a reduction of operations or employment at its German site, although, as in the past, measures to adjust production capacity to demand, such as reducing working hours, cannot be ruled out.
The management of Arburg is concerned about the weak order situation and the difficult economic conditions faced by the German industry and much of Europe. The duration of the crisis and future market developments remain unclear, as several factors are influencing the situation—some cyclical, others structural.
Steffen Kroner, Arburg’s new managing director of finance, controlling, IT, and human resource management, explained that Arburg, like other European manufacturers, is seeing a decline in sales and orders this year, with “sporadic success stories thanks to a number of attractive projects.”
The estimated turnover for 2024 is expected to be around €620 million, compared to €784 million last year, which was already down from the record sales of €875 million achieved in 2022.
According to Kroner, Arburg can rely on several resilience factors, including strong family ownership, a qualified workforce, innovative products and services, and a long-term strategy focused on digitalization and sustainability. These elements, he said, will allow the group to emerge stronger once the crisis is over. Kroner also emphasized the enduring optimism that has always been a hallmark of the German company.
Tobias Baur, newly appointed head of sales and after-sales, provided further details on the market situation. The crisis is affecting all major geographical areas and industrial sectors almost equally, with concerning signals coming from the U.S. and Asia, largely due to the weakening Chinese market.
In terms of industries, the automotive sector remains weak and uncertain, while the electronics/electrical industry has lost some momentum but is still at a good level. The medical and packaging sectors remain relatively stable.
At Fakuma, Arburg is presenting a booth that occupies half a hall, showcasing 11 machines, including the revamped Allrounder 720 E Golden Electric. Another seven injection molding machines are being displayed at partner stands throughout the fair.
In the photo above, from left: Tobias Baur, managing director of sales and after-sales; Michael Hehl, managing partner and spokesperson for the management team; Guido Frohnhaus, managing director of technology and engineering; and Steffen Kroner, managing director of finance, controlling, IT, and human resource management.
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