Engel to invest US$9 mln to expand Shanghai factory

02-May-16

To keep pace with continued growth in the higher end of the market in China, injection machine maker Engel Holding GmbH is investing 60 mln yuan (US$9.2 mln) to expand capacity at its Shanghai factory, as per PlasticsNews. This latest investment will enlarge machining capacity and provide more office space and room for its training programs. “We have expansion plans in China because we are reaching again our limits, we will add another building to add more space for manufacturing,” said Gero Willmeroth, sales and service president at Engel Machinery Shanghai. “In this one we will put another heavy duty machining center for platen manufacturing.” Construction has started and the new machining center is scheduled to be finished by April 2017, he said. Asia accounts for almost 25% of Engel’s 1.23 bln euros (US$1.38 bln) in total sales, or about 300 mln euros (US$336.5 mln). By comparison, the company said its Asia business in 2012 generated only 100 mln euros in sales. China is Engel’s largest market in Asia. The company has injection machine manufacturing plants in South Korea, which also doubled capacity in 2012, and at its new Wintec subsidiary in Changzhou, China, where it has started manufacturing less expensive, more standardized molding machines aimed at the middle of China’s market. Engel’s expansion comes amid some signs of softening in China’s market for plastics equipment.