Rubber injection moulding machinery manufacturer Klöckner Desma Elastomertechnik expects in three years that its market share in Asia will be upped to 50% of its turnover, according to Harald Schmid, General Sales Manager. Speaking to PRA at last year’s plastics and rubber exhibition in Japan, IPF, Schmid also said that currently Desma’s Asian sales represent 30% of its turnover. The Germany-headquartered company expects the higher market share to be pushed by growth of the automotive sector.
“Our biggest customers are from the automotive industry. In Asia, around 90% of our customers are from the automotive sector, while in Europe it is around 50%. This sector will be the biggest trigger for our growth in Asia,” he explained.
When asked if the company was taking a risk by putting all its eggs in one basket (by relying on just one sector for its growth), Schmid replied, “Even if the market shrinks, we are well positioned to supply higher technology machines to Asia.”
In Japan, the company’s focus is on transplants moving to set up plants in the country as well as family-owned companies that are purchasing higher technology to stay ahead of bigger players, with Schmid adding that it is the smaller companies that are driving the process technology. It was displaying an India-made injection moulding machine, the S3, which features a demoulding table at the front. “This machine is designed for Japanese customers. It has a servogear that features energy savings, and pressure sensors in the mould that adjust the filling degree.”
In China, which is the largest market for the automotive sector globally, Desma has a 2,800 sq m-facility it set up in 2007 in Wuxi, Jiangsu province. It will expand its facility to meet market demands. “We will move to a new location 10 km from Wuxi, to double our capacity.” It expects to produce 200 machines/year for the local market. “Desma China has good growth potential, especially for the automotive market.”
Schmid pointed out that OEM transplants “buy identical machines always in plants close to them and expect the same quality”. He added that Desma’s plants in India and China are also able to make modifications to machinery. “We are confident of future growth as companies move from compression to injection moulding.”
But the company is not immune to market forces that Schmid points out as “rising labour and power costs, even in China and India; increasing costs of raw materials; competition from local and overseas manufacturers and the never ending demands for reduction in prices from OEMs!” Besides India and China, the wholly-owned subsidiary of steel producer Salzgitter operates production sites in Germany, the US and Slovakia.
At its open house last year, Managing Director Martin Schürmann reported that Desma’s turnover will exceed EUR80 million, the number of employees increased from 438 to 504 and by 2017, the company forecasts a turnover of EUR100 million as well as a world market share of 30%. He said, “The order books of Desma are full. Until the second quarter of 2015, the company will be working to capacity limits.”
The company will celebrate its 50th anniversary of operations this year.