Arburg, a leading German manufacturer of injection moulding machines, is expanding its assembly operations in China as part of its strategy to strengthen its global presence. Speaking at a press event ahead of the company’s annual Technology Days, Michael Hehl, Arburg’s managing partner and management board spokesman, acknowledged current global economic challenges but remained optimistic about the company’s prospects.
“Such times offer opportunities to those prepared to seize them,” Hehl stated.
Adapting to Market Shifts
Arburg has demonstrated adaptability throughout its 102-year history. As European markets increasingly prioritize resilience, efficiency, and economic viability, the company is refining its product offerings. Arburg now provides a diverse portfolio, ranging from high-end production systems to cost-effective standard solutions.
A growing skills gap and labor shortages have also influenced the company’s strategy. According to Guido Frohnhaus, managing director of technology and engineering, Arburg is investing in simplified, role-based machine control systems to enhance usability and reduce the burden on operators.
Expansion into Emerging Markets
Arburg is significantly enhancing its assembly operations in China, with plans to expand production and office space to approximately 11,000 square meters by the second quarter of 2025. The expansion is intended to increase capacity rather than relocate production. Additionally, the company is evaluating opportunities in North America, reflecting its strategic goal of increasing global presence.
The decision to expand assembly outside Germany marks a major shift for Arburg, which has historically maintained a fully domestic manufacturing base. This move aligns with the company’s broader efforts to diversify operations while keeping core production capabilities in Germany.
Financial Challenges and Strategic Adjustments
In 2024, Arburg faced financial setbacks, with consolidated sales totaling approximately €600 million—below the initial forecast of €620 million and a 23% decline from the previous year. Managing director of finance, K. Kroner, attributed this downturn to ongoing economic uncertainty. In response, Arburg has implemented socially responsible workforce reductions and introduced short-time working measures across its German facilities since January 2024.
Despite concerns over market instability in Europe and slow growth in the Americas, Arburg sees strong growth potential in Asia. Tobias Bauer, managing director of sales and after-sales, highlighted the company’s focus on navigating potential tariffs on European goods.
Optimism in After-Sales Recovery
A positive development for Arburg has been the recovery of its after-sales business, which is now performing at levels comparable to the previous year. This suggests that customer production activities remain steady, even as businesses remain cautious about new investments. Bauer expressed optimism that improving economic conditions could trigger renewed growth and investment in the near future.