Published On: Wed, Jun 8th, 2016

Maag presents as a system supplier after Gala and Scheer acquisition

Under the Dover Corp, Maag Automatik has expanded significantly last year with the acquisition of Gala Industries, a US manufacturer of underwater pelletizing systems, as well as Reduction Engineering Scheer Inc, the maker of pelletizers, rotors and pulverizers.

“From a supplier of pump, pelletizer and screen changer, Maag has now become a system supplier with an expanded product portfolio,” stated Alaaddin Aydin, Director of BU Extrusion, Maag Automatik GmbH at CHINAPLAS 2016. “This is a complete setup instead of selling components only.”

Plastic Machinery

Maag presents as a system supplier after Gala and Scheer acquisition

Both Automatik Plastics Machinery and Reduction Engineering Scheer are makers of strand pelletizers, but the former focuses on virgin materials like polyester (PET) and polyamide (PA) while Scheer is more into polycarbonate (PC) and acrylic pelletizing.

“The combination of automatic scheer allows us to cover the entire market,” Aydin explained.

Likewise, Gala Industries covers a broad market spectrum in underwater pelletizing, which compliments the niche market segment Maag Automatik currently working in.

2015 was a satisfactory year for Maag, who was able to reach its target but suffered a bit from the stagnated polyethylene terephthalate (PET) market.

It was a different story in China though.

“Last year our incoming orders grew by 25% and we expect the same high growth in 2016 judged on a very good first quarter,” said Louie Chen, National Sales Director, Maag Automatik  Plastics Machinery (Shanghai) Co. Ltd.

The company did not suffer much from a stranded Chinese chemicals market because “Maag is closer to down-stream users such as the automotive, electronics and home appliances industries.”

“The lifestyle in China is changing. People demands for ready-to-eat, ready-to-drink food and beverage, so a lot of packaging is coming in and that means a strong extrusion sector,” added Aydin.

He also indicated that global business is picking up again and he expects to achieve the target again and awaits an even better 2017.

Maag will continue to invest in people as well as physical facilities, noted Aydin, “Following the acquisition of Scheer and Gala, we have expanded our grinding capacity in China, and we hopes to increase our locally produced contents as well.”

The company is looking at two sites which can offer more space to accommodate its growth in the future. The move is expected to be made at the end of this year.

Looking ahead, Chen pointed out that PET and PA is suffering from overcapacity in China at the moment, and the market is shifting to new materials like PC and polymethyl methacrylate (PMMA).

“Thermoplastic elastomer (TPE) and thermoplastic polyurethane (TPU) are also gaining momentum,” added Aydin.