A 50% plunge in the size of the US injection moulding machine market from 7,500 to 3,400 units a year, has led the Demag Plastics Group to a decision to stop production of injection moulding machines at its Cleveland site in USA. Current US market is dominated by electric machines that comprise over 50% of the market to the detriment of the hydraulic units made at the Cleveland plant. In future, the Cleveland operation will focus on sales, service and technical support for the 11,000 machines supplied to the US market.
The company will depend on production from its manufacturing facilities in Germany and China. Demag's manufacturing structure now comprises plants at Schwaig and Wiehe, in Germany, for high end applications and Asian built machinery produced at its Ningbo and Chennai facilities. Last month, the wholly owned Chinese operation, Demag Plastics Machinery Company, moved into new, larger 13000 sq metres premises at Ningbo.
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