10/29/2012

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Arburg expects 2012 turnover at around the 2011 level

The US business was described as "disproportionately successful” and "excellent” growth rates have been achieved in Mexico, supported to a large extent by the moulding machinery producer's largest customer in the country - a producer of toys - as well as the automotive industry. Elsewhere in Central and South America, high import duties and declining automotive production in Brazil are given by Hehl as the reason behind the subdued Brazilian market in recent years. Nevertheless, Hehl said Arburg will continue to be active in Brazil with an eye on long-term development.[image_0] In Europe, Central Europe has been strong, but Western and Southern European markets have been weak - with Italy an exception however, Hehl observed. There was a slow start to the new year in Germany, but business became more "stable” in the second quarter - before "flattening” slightly in recent months. Following its launch at the 2012 Technology Days open house, Arburg continued its production efficiency theme at Fakuma, Hehl announcing at the fair that the Golden Edition machine series will be supplied with the "productivity package” at no extra charge until the 2013 Technology Days open house. The 2013 event is scheduled for 13-16 March, Arburg's Public Relations Manager Susanne Palm told RFP. Not as bad as 2009 Sales Director Helmut Heinson expanded on the Arburg results presented by Hehl by saying that the company is not concerned about the overall business climate, commenting "I don't believe it will be as bad as 2009”. He confirmed that the Czech Republic and Hungary have contributed in particular to the pleasing results in Central Europe. Although there have been problems in more developed Western European countries, especially The Netherlands and Belgium, and Switzerland has "cooled a little”, Heinson stressed, "none of this is reason for concern”. Heinson said China remains at the peak of the Asian market for Arburg, as a market absorbing a total of around 40,000?60,000 machines/year, of which statistics show 8,000 machines/year as imported, mainly from Japan, but with Taiwanese, Korean and European suppliers all accounting for significant injection moulding machine imports into the country, profiting from a trend towards machines with higher value. Heinson explained this further by saying "If you assume the overall market in China as having declined by 25%, that decline relates to simple applications, while it is the opposite for machines for technical parts”. A clear "No” to production in China Despite the importance of the Chinese market for Arburg, both Heinson and Kraibühler shared a microphone at the Arburg's Fakuma 2012 press conference to jointly confirm yet once again that the answer to whether Arburg will produce machines in China is: "No!”. Heinson continued by coming back to a subject that had been announced as being of concern during the Technology Days open house in March 2012 - the seven weeks transport time from Europe to Asia. He had said at the time that Arburg was looking at "some logistic and organisational possibilities in order get a grip on delivery times for the region”. At Fakuma 2012, Heinson said that improvements in transport and keeping stocks locally will both come into effect by the end of 2012, pointing out "we will have a certain number of machines in stock locally for fast delivery - but the stress will be on standard machines”. There has been strong growth for Arburg in recent years in the wider ASEAN market, including Taiwan. Business in Indonesia has been mainly for packaging applications, involving here both German and local moulding tools, Heinson advised. -DV-

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