Engel is expanding its market share worldwide

Near Stuttgart, ENGEL opened its fourth branch in Germany in spring 2013. With an area of 700 square meters, the ENGEL Deutschland Technology Forum Stuttgart has the largest technical center of any ENGEL branch.

ENGEL Germany Technology Forum Stuttgart 2

The robot factory in Dietach has been producing at a steady pace since autumn 2012. With the introduction of flow assembly, delivery times could be shortened.

ENGEL Dietach

ENGEL Korea

The management team of ENGEL Holding GmbH from left to right: Stefan Engleder (CTO), Gotthard Mayringer (CFO), Peter Neumann (CEO), and Christian Pum (CSO).

"ENGEL is perceived in the global injection molding markets as a stable family-owned company that consistently expands its system provider role and is application-oriented and innovative." Dr. Stefan Engleder, CTO

"The demand for European high technology in Asia remains unabated. We expect to continue increasing our sales in China as well." Christian Pum, CSO

"The very successful development over the past years confirms that we are on a very good path with our strategy. We will continue this path ambitiously." Dr. Peter Neumann, CEO

ENGEL Schwertberg Manufacturing

23 million euros were invested by ENGEL in the 2012/2013 fiscal year to expand its headquarters in Schwertberg. Further construction measures at the site are planned.

The capacity of the two Asian manufacturing plants in Shanghai (left) and Korea (right) has been doubled.

ENGEL St. Valentine's

ENGEL achieved a worldwide turnover of 950 million euros in the 2012/2013 fiscal year, setting a new record. Compared to the previous year, the group, headquartered in Schwertberg/Austria, increased by 14 percent. Since 2009/2010, this results in a total increase of 165 percent. For the next three years, ENGEL expects further growth of around five percent annually.

"Our goal is to be a leader in creating customer value," emphasizes Dr. Peter Neumann, CEO of Engel Holding, to the international trade press ahead of K 2013. "Customer proximity is the key. This means, on the one hand, the continuous expansion of our global production capacities, sales, and service structures, and on the other hand, the consistent alignment of our products and technologies with the specific requirements of individual country markets and target industries. The very successful development over the past years confirms that we are on a very good path with this strategy, which we are ambitiously continuing."

Worldwide, Engel has gained market share. Significantly contributing to this has been the strong commitment in Asia. In the relevant Asian market (European and Japanese technology), ENGEL now holds a 10 percent market share. In America, the market share is 18 percent, and in Europe, Engel has managed to increase from 27 to 30 percent in just three years.

Energy efficiency, system business, and industry solutions drive growth
Technologically, this growth is primarily driven by energy-optimized machine concepts, integrated and automated system solutions, as well as industry-specific developments. In 2012/2013, Engel was able to significantly expand its market share in the competitive segment of medium-sized injection molding machines, thanks to ecodrive servo hydraulics. Currently, more than half of all hydraulic Engel machines are equipped with ecodrive.

Regarding target industries, Engel reports the highest growth in automotive and packaging. Engel's market share in packaging is now over 20 percent. "Plastic packaging is currently experiencing strong growth, from which we are benefiting disproportionately," says Christian Pum, Managing Director of Sales at Engel Holding. "Currently, around twelve percent of all injection molding machines in Europe are used in the packaging industry. The trend is moving towards larger machines for high-cavity molds and high-performance solutions with energy-efficient drive concepts."

Across industries, the share of system solutions including automation continues to rise. Engel benefits significantly from this trend. About 50 percent of all automated production cells supplied by European injection molding machine manufacturers come from Engel. The company is now a global leader in the automation of injection molding processes. Germany, with its high level of automation and process integration, is a key driver of innovation in automation technology. Overall, automation is gaining importance worldwide. For example, increasingly automated system solutions are being requested from China as well. Engel is also one of the preferred suppliers there. "Our company is perceived in the global injection molding markets as a stable family business that is consistently expanding its system provider role and is application-oriented in its innovation," says Dr. Stefan Engleder, Managing Director of Engineering at Engel Holding.

Germany is the most important market – Southeast Asia is growing rapidly
About 20 percent of its global sales are generated by ENGEL's German subsidiaries. Germany is thus the most important country market for the machinery manufacturer. Following in volume are Turkey and Russia in Europe, in second and third place. Overall, 65 percent of sales come from Europe. The American markets contribute 17 percent, and Asian markets 18 percent to total sales.

The North American market developed very positively in 2012/2013. New impulses come from the medical and packaging industries. In Mexico, growth is mainly driven by investments from the international automotive industry. The most important market in America is Brazil, with a steadily growing volume over the past years. Overall, Engel was able to participate disproportionately in the American growth in the completed fiscal year.

In Asia, the company achieved a revenue of 145 million euros in 2012/2013 – also a new record. The largest share comes from China, the world's largest market for injection molding machines. Although the overall volume in China shrank last year, the high-tech segment continued to grow, and China will remain the most important market in Asia in the future. "The market for simple low-tech machines is declining in China, while the demand for sophisticated injection molding solutions continues to grow," explains Christian Pum. "Demand for European high-tech solutions remains unbroken. We expect to further expand our sales in China."

The markets in Southeast Asia are growing at an especially rapid pace, particularly in Thailand and Indonesia. Overall, the company has tripled its sales in Southeast Asia over the past two years. Despite a relatively weak year in 2012/2013, Engel also expects rising sales in India in the coming years.

Continuous investments lay the foundation for further growth
The increasing global order intake is being addressed by the company through continuous expansion of its production capacities and sales structures. In total, Engel invested more than 57 million euros in its sites during the 2012/2013 fiscal year. The lion's share of 40 million euros remained in Austria and was used for the expansion of the headquarters in Schwertberg, the expansion and modernization of the large machine factory in St. Valentin, and the introduction of flow assembly in the robot factory in Dietach.

Among the largest international investments is the massive expansion of the two Asian production plants. Both the large machine factory in Shanghai and the small and medium machine factory in Pyungtaek City (Korea) doubled their manufacturing capacities, and the sales structure in China was also strengthened. Engel is the only Western injection molding machine manufacturer with two production facilities in Asia. Currently, three-quarters of the Asian sales are from regional manufacturing. As of April 1, 2013, Engel established a branch in Bangkok to better meet the rising demand from Southeast Asia in the future.

Strategically, two investments in Germany are of great importance. The Hagen site – home of Engel Automation Technology Germany – was expanded in early summer 2012 with additional assembly space and offices for new employees, and in spring 2013, the fourth German subsidiary, Engel Germany Technology Forum Stuttgart, was inaugurated.

Personnel-wise, further subsidiaries were strengthened during the 2012/2013 fiscal year, including in Turkey, Russia, and Mexico. At the same time, the number of employees in Austria increased. Overall, the company currently employs more than 4,300 people worldwide.

Since its founding in 1945, the company has been 100 percent family-owned and independent of external investors, ensuring stability and a long-term perspective for customers, partners, and employees. With CEO Dr. Peter Neumann and CTO Dr. Stefan Engleder, two family members hold operational responsibility in the management. In keeping with the connection between tradition and innovation, the owner family is now involved in the fourth generation.