Sumitomo (SHI) Demag doubling machine production capacity in China

Spatenstich für einen Erweiterungsbau am Standort Ningbo. / Groundbreaking ceremony in the presence of local political figures.

Sumitomo (SHI) Demag China has hosted a groundbreaking ceremony in the presence of local political figures at its Ningbo site, welcoming the start of construction for its new 4,000 square metre production hall. Attended by the mayor and city councillors from the Beilun district, CEO Pietro Scattarreggia marked the occasion announcing that the bigger facility sets the path for future growth, creating 50 new jobs and doubling production capacity.

Granted permission to commence construction towards the end of 2022, Scattarreggia reports that the new facility is set to open in autumn 2023 to coincide with the Group’s 25th production anniversary in China. Putting into context the enormous market potential, the CEO affirmed that the Asian market in general, particularly automotive and electromobility in China, is booming. “Having experienced the strongest performance in the company’s history in 2021 and subsequent economic slowdown last year as a result of coronavirus policy restrictions, the future outlook remains very positive,” Scattarreggia confirms.

The expansion of the Ningbo production hall not only gives the team more space to manufacture more machines, but also expand production to include the larger tonnage Systec Servo machines. “Until now, our production has been limited to machines with clamp forces up to 1,000 tons. Given the demand for larger precision components, being able to extend our product portfolio up to 1,500 tons means we can drastically reduce delivery times for customers in China and Asia,” reports Scattarreggia. He cites this above all else as the strategic rationale for the expansion.

With its hybrid drive concept, the Systec Servo series, characterised by its absolute precision, excellent stability and durability, offers manufacturers of automotive, white goods and consumer components a powerful and energy efficient system. With full process integration for flexible and versatile production of larger components.

The Systec series is ideally suited to these processing requirements, reports Scattarreggia. To support the manufacturing of these larger and heavier machines, the Ningbo production hall is installing stronger cranes.

Additionally, Sumitomo (SHI) Demag China remains committed to reducing its production carbon footprint. An installation of a new solar system measuring 7,000 square metres last September means that the facility can operate virtually independent of the local energy supply, claims the CEO.

In recent years, many production sites in China have felt the impact of power rationing. With a solar source, the Ningbo facility will no longer be affected by future rations. “This is of great significance for production stability,” ends Scattarreggia.