Arburg Eyes Assembly Plant in North America

At the same show where it launched a machine outside of Germany for the first time, the family-owned and Lossburg, Germany-headquartered injection molding machine supplier acknowledged that it will be assembling machines outside the country for the first time as well, scouting North American sites for a facility, with plans to do the same in Asia.

Speaking at the company’s NPE2024 press conference, Arburg GmbH + Co KG COO Guido Frohnhaus and Arburg USA CEO Martin Baumann acknowledged the company will be “internationalizing its value chain and installing an assembly plant in North America,” in a bid to strengthen customer support, reduce lead times and shorten time to market. Citing the installed base of 14,000 injection molding machines in the U.S., Arburg says such a move supports its “local-to-local” customer focus and manufacturing strategy.

In terms of business performance, Arburg says that in the first quarter of 2024, order levels in the America’s and the U.S. are currently below 2023 levels. In 2023, Arburg generated revenue of €780 million ($835 million), which was down 11% from 2022. Year over year, the company notes that “orders are and remain weak,” with no current signs of change, although aftermarket activity was going better, and company officials at the show say a strong NPE and Chinaplas painted a more optimistic picture going forward.

At the show, while the company acknowledged it would build an assembly facility in North America, it doesn’t currently know where it will be constructed as it continues to scout locations with plans to “make decision in a few months.” Arburg also says it will look to make a similar move in Asia, although the company didn’t offer any details on that future move.