Demag Plastics to separate from MPM Group

21-Mar-07

A decision to separate the Demag Plastics Group from the remaining MPM Group and manage it independently, has been taken. Seevral overlaps in the product ranges and addressed target segments between Krauss-Maffei, Netstal and Demag Plastics Group which cannot be easily eliminated and hinder the three companies’ ability to fully leverage their potential, has raised the necessity of the separation. This decision has been taken in close cooperation between MPM’s owner and the board of Demag Plastics Group. The decision to separate the Demag Plastics Group is an opportunity to further develop its business in the long term, without the bother of having to take into account objectives and strategies of the other brands, thus implementing its own strategy, focusing on our target customer clusters and provide them with a clearly structured product offering and specific application technologies. Demag operates a well-established production site in China, a joint venture in India, and enjoys a good market position in the US. Restructuring of the Demag Plastics Group, realignment of processes, products and structures in the past 18 months has already shown a positive impact on key financial figures of the compay. The Demag Plastics Group is one of the leading toggle injection moulding machine producers, with a clear focus on small and mid-size machines. The company is well positioned in this fast growing market with its all electric injection moulding machine and packaging solutions. The company is third largest IMM manufacturer in Europe and a prominent player globally.