ENGEL and guests celebrate 10 years of large-size duo machines from Shanghai at the significantly expanded plant
25.09.2017
For ENGEL Machinery, 2017 is a special year: Ten years ago, the plant opened and the first large-size machine produced in Shanghai was delivered. Just in time for this anniversary, ENGEL has completed the second large expansion in the history of the plant. ENGEL celebrated both milestones in Shanghai, together with more than 500 guests including customers and partners, in mid-September.
“We are very proud of what we, together with our employees, have achieved here,” said Gero Willmeroth, Sales and Service President at ENGEL Machinery (Shanghai), who welcomed the guests from all regions of China, other Asian countries and beyond. In his speech he emphasised that there were three main pillars on which the success of the site is built: “Our customers, whom we have grown together with over the years, the management in Austria, who pave the way for us with continuous investments, and our staff, who with great dedication and enthusiastic team spirit ensure we meet the latest challenges and always provide maximum customer satisfaction.” Gero Willmeroth thanked them all on behalf of the entire management team. He was particularly pleased that 24 of the initial employees were able to attend the anniversary celebrations. “For China, such a long period of employment with one company is still something special.”
With 50 employees, ENGEL Machinery (Shanghai) began building the large-size machines for the duo series in 2007. Today the subsidiary of ENGEL AUSTRIA employs a workforce of around 450 – and rising. “By the end of the current fiscal year in March 2018, we will employ 500 people here,” says Willmeroth.
ENGEL organised an extensive programme for the anniversary and opening ceremony. Before the official speeches, guests were invited on tours of the factory and a machine demonstration. The new production hall was furnished for the gala dinner with live music in the evening.
In-house training secures production quality
ENGEL Machinery (Shanghai) was established as the second of three production plants in Asia. As injection moulding machines with low and medium clamping forces have been built in Korea since 2001, Shanghai was always planned as a purely large-size machine plant. Especially in Eastern and Northern China, there are many automotive suppliers with a high demand for large-size machines. In addition, there are more qualified skilled workers in Shanghai than in most other regions of the country, and the large international airport is also located here. “Many decision-makers from Europe first land in Shanghai on their trips to China and use the stopover to visit our plant,” says Willmeroth. Apart from automotive components, front frames and housing parts for TVs, drums for washing machines, boxes and pallets as well as large technical components such as fan propellers are produced in Asia on duo injection moulding machines.
“Although our original customer base mainly consisted of large international corporations and Western-orientated companies, more and more Asian plastics processors are now among our customers,” said Dr Stefan Engleder, CEO of the Group, during the celebrations. “Asia – with China at the forefront – has developed from the extended workbench of the world to an extremely quality-orientated market with a huge domestic demand. We also notice this from the constant increase in demand for automated system solutions for increasingly sophisticated, highly integrated injection moulding processes. ENGEL is at home in this field and is one of the preferred partners worldwide.”
As sister factory to the ENGEL large-size machine plant in St. Valentin, Austria, ENGEL Machinery (Shanghai) is subject to the strict Austrian quality management system. The work processes are identical in both plants. “A duo machine manufactured in Shanghai can only be distinguished from one produced in St. Valentin by its name plate,” says Willmeroth.
In order to be able to guarantee its customers in Asia this high quality over the long term, ENGEL started to train its next generations of skilled personnel in Shanghai four years ago. Forty-five young people are currently being trained in three technical vocations according to the Austrian model of dual professional training. In July of this year, students of the first training course took their examinations. All eight graduates achieved outstanding results and were hired as permanent employees.
More than 3000 square metres of additional floor space
Uncompromising quality and proximity to the customer – these factors are the basis for ENGEL's ongoing success in Asia. Willmeroth names continuous investment in the sites as a third factor. The first major expansion was carried out in Shanghai in 2012. The expansion doubled production capacity. Now ENGEL has completed the second extensive plant expansion just in time for its 10th anniversary. ENGEL invested 7.5 million euros (55 million renminbi yuan) in the latest expansion. Two new building complexes were added. The existing office building was lengthened to create an additional 1000 m² of office space. A new production hall was also built, expanding large-size machine production by 1600 m². In addition, new offices and the training workshop are located in the new hall. It is significantly larger and more modern than the old one.
With the rapid growth in personnel over the past few years, office space had become far too tight. In addition to service technicians and sales staff, who are often distributed all over China, ENGEL is strengthening its automation and technology know-how at the site. In 2015 a dedicated automation centre was founded in Shanghai for its Chinese customers. Over the past few months application technology has been strengthened and separate business units created for Asia.
Further growth in Asia expected
Of its global turnover of 1.36 billion euros in the 2016/2017 fiscal year, ENGEL generated 20 percent in Asia. 90 percent of this stemmed from local production in China and Korea.
“Asia remains one of the regions with the strongest growth,” says Dr Christoph Steger, CSO of the ENGEL Group. This is due mainly to the very dynamic markets in Southeast Asia and China's strong demand for integrated and automated manufacturing solutions. Increasing integration means manufacturing processes are growing in complexity, which requires even more intensive cooperation between ENGEL and its customers. “More and more, we are becoming a partner for continuous process optimisation over the complete life cycle of the machines and production systems,” says Steger. “Our investment in the Shanghai site reflects this trend.” ■
ENGEL milestones in Shanghai
2005 Founding of ENGEL Machinery (Shanghai) Co., Ltd.
2007 Inauguration of the large-size machine plant and delivery of the first injection moulding machine produced in Shanghai
2012 Doubling of production capacity
2014 Dual professional training programme launched
2015 Establishment of a dedicated automation centre for China
2016 Delivery of the 1000th duo machine produced in Shanghai
2017 Introduction of business unit structure for Asia
2017 The first apprentices pass their exams and are hired in permanent employment
2017 Expansion in production capacity and enlargement of the office building
2017 ENGEL Machinery (Shanghai) celebrates its 10th anniversary