Extrusion Machinery Is Coming Mostly From Asia and The Middle East

MachinePoint, an internet-based trader of used machinery, says demand for its extrusion machinery is coming mostly from Asia and the middle East, as companies in developed markets are keeping investments to a minimum. Since 2009, demand for MachinePoint machinery has increased 43% in Asia and 48% in the Middle East, compared with only 5% in the US, the company told European Plastics News. The demand is mainly for pipe machinery, with German brands such as Cincinnati, Battenfeld and Kraus Maffei being the most popular. Demand from European manufacturers is relatively flat as companies take a ‘standby position', says the firm. "They are not moving, neither reducing capacity and therefore selling machinery or investing in new machinery, " the spokesperson said. "They are just trying to hold on to what they have with no investments at the moment, nor in the near future. " In addition, manufacturers are moving equipment to locations with lower labour costs, which removes the need for new investment in these markets. At the same time, MachinePoint does not expect to see worldwide scale major investments in complete, new extrusion plants anytime soon. In the middle term, this could lead to a shortage in the European used machinery entering the market in the ensuing years, says the firm. A number of emerging markets have an active construction market but also a strong local extrusion machinery market, making stiff competition for European models. For example, Indian local brands such as Rajoo Engineering, Kabra Extrusiontechnik and Mamata Brampton Engineering control 80% of the extrusion market in the country, says MachinePoint. Source: European Plastics News