Sumitomo continues to invest despite crisis
The Wiehe, Germany, based production facility of injection molding machine specialist Sumitomo (SHI) Demag Plastics Machinery GmbH will be turned into a major manufacturing base for all-electric injection molding machines within Sumitomo Heavy Industries.
Besides the new all-electric IntElect for the European market, the Japanese-German IMM-manufacturer, with European headquarters in Schwaig near Nuremberg, will produce the Japanese SE- machine range as well.
The new designation of the Wiehe plant, that formerly produced hydraulic and all-electric machines up to clamping forces of 210 tons, falls in line with the global strategic reorganization of production tasks within the Sumitomo Heavy
To achieve the company’s strategic and long –term goals of maintaining and strengthening the technological leadership Japanese parent company, Sumitomo Heavy Industries, has decided to invest 50 million Euro into Sumitomo (SHI) Demag
Plastics Machinery GmbH in Germany. “The objective of this strategic decision, which we have taken against the background of the current market crisis, is to maintain and to strengthen both Demag plants in Schwaig and Wiehe.”, explained Dr.
Okamura, spokesperson for the management.
Within the scope of the allocation of responsibilities in its new global production strategy, Sumitomo (SHI) Demag Plastics recently ended its joint venture agreement established with Larsen & Toubro in 1999, viz. L&T-Demag Plastics Machinery Ltd. of Chennai, India. As already announced in March 2008 Sumitomo Heavy Industries is proceeding to establish a subsidiary in India.