According to the market study carried out by plastic universal, with the participation of a few suppliers representing nearly 90 percent of sales

The annual meeting plastics universal organized to bring together the leading companies in the sector of Spain injection was held last January in the seat of the Spanish plastic Center in Barcelona. As usual, the representatives of the different signatures, representing nearly 90 per cent of sales at Spain, held a round table where they analyzed and contrasted changes experienced by the sector of injection last year. A meeting of which emerged interesting ideas that have marked the year 2004: a dramatic increase in sales of Asian machine to the detriment of the European and the second hand market; the industry of agricultural and food packaging as a potential source of growth for the sector of the plastic or aspects relating to the sector itself in Spain, as the need for a regulatory body that group and to ensure the companies that form the segment of the injection Spain, if not the unanimous conviction that the fair Equiplast Barcelona held at a date little suitable for exhibiting companies.

Situation of market, concerns of the employer, changes in the sector. These and other issues behind the meeting on an annual basis that plastics universal maintains the key decision makers of the panorama of suppliers of plastic injectors in Spain. One of the conclusions of the same is that Spain has a park aged nearly 20,000 machines for molding by injection.

Responsible for signatures of as Actronic (Billion), Arburg, Battenfeld, Centrotécnica (Italtech, Boy), Coscollola commercial (Krauss Maffei), Demag, Erinca, Ferromatik, Fultech Systems (Chen of Plastics Machinery), Helmut Roegele (Engel), Husky, industries Deu, Italprensas Sandretto, JTP, Just In Time Plastics (APM)Negri Bossi, Netstal, (Oima and BM Biraghi) Karplast and Protecnos, put in common aspects relating to the progress of a sector that, given the current situation of slowdown in economic growth, also has been able to be affected.

A first point at which all were agreed was appropriate bit of dates in which will be held the pageant Equiplast, from 14 to 18 November, in Barcelona. Most people consider that the fair has been organized on a date that little benefits to exhibitors. They consider that the ideal time to celebrate the event would be in October, because the negotiations taking place in the framework of a fair in the second half of November are accounted for in the next year.

Investment and technological upgrading have been and are two of the most high-profile concepts in this and other sectors. But… is technology a guarantee of success of a company in the sector? Angel Lozano, Battenfeld, States that "technology does not guarantee success, but helps to achieve this." I think that the companies in the sector at least in three large groups of companies, must be distributed taking into account the type of product manufactured. The first would be the companies who need to use the highest technology machines because their products require an extreme quality requirement and often suffer from other downstream processes with high added value. In the second, that volume is higher than the previous one, also need high-tech machines, although the demands of quality of the products they manufacture are high but not as extreme as in the previous group. A third group could be defined as the sector of the industrial piece and covers all the branches of transformer production. The quality requirements are not high but in price competitiveness is extreme, get the lowest price of the transform piece it seems the only goal. "In any case the processor must look to the future and be aware that there are no margins to make defective productions or with high energy consumption and, in the case of realizing them, these costs always impact directly on the industrial net profit".

Invest in new technologies, special machines or machines equipped with special functions help to ensure the implementation of commitments, achieve shorter cycles and be more competitive. Success, was said in the meeting, however, it does not guarantee at a time of intense competition in the market with a strong Asian machines in the Spanish market entry. "We want to impose another kind of machine, but prices send and on the hydraulic machine price is still lower."

José a. Rodríguez (Negri Bossi) said: "the technological innovation is vital for the manufacturer of machines for both the own transformer". In an industry where precisely the pressure of the prices of Asian products is suffering, it is essential to differentiate themselves through a bet for new products of higher technology and marked distances with competitors in these countries of low prices. In this sense, there is certainly a concern by the transformers by implementing new technologies or systems of transformation, even if the investment is increased, allowing them have a savings in costs of labour and an improvement in the quality of their products. "An example of course are the machines of fully electric drive which, albeit slowly, as with any important innovation was introduced in our market with great satisfaction of those industrialists who have decided to take that step".

Invest in new technologies, special machines or machines equipped with special functions help to ensure the implementation of commitments, achieve shorter cycles and be more competitive

According to Josep Piró, responsible for Netstal machinery, "we are in a world where you have in mind more the facade and the car you see outside, the machine that works inside." "The businessman lives a time with small margins that despite low interest rates, much else ponders their investments and thus the Spanish Park of injectors is very old fashioned." "It is true that until 2000 was invested, but more on expanding that renewed, so that a large percentage of injection molding in Spain machines are now obsolete and are not profitable". As it Piro, take into account other countries there in a rotation of 75 to 85 percent of equipment seven or ten years while in Spain last twenty years. He added that we are going through a time in which mergers they prevail and in which an employer is more concerned to find buyer for his company, to invest in order to compete. He also regretted that the automobile sector from time to time threatens to leave.

The meeting gave rise to debate different points of view regarding the future of the simple machine. While there are those who provide for the small and simple machine of European origin will disappear in ten or twenty years, another group of the there present believes that the prices of such machines will decrease and will continue to be marketed

The loss of competitiveness for the prices, the rise of the Spanish inflation towards neighbouring countries, require that "in order to be competitive must increase much productivity." "And this is only achieved through training and the investment in technology," says the head of Netstal, which adds that, often, the Spanish industrial, little given to the risk, "only invests when it already has signed the order for your client".

Xavier Llinás, Director General of Husky Iberia is more optimistic, "Compared with the alien, in Spain growth of injection machine is higher than other countries." "The trend is still upward, and I think that this must evaluate it positively".

Pedro Ordejón, Director Gerente of Demag Ergotech Spain, it considers that not only the companies fail to come to Spain and others are going, but subsidiaries have lost weight. "Now the decision-making is carried out exclusively in Germany, Italy, or even in China, where are the mother houses." "They are which also distribute the sales at the international level to globalize orders, units, prices, descuentos…"

This is unanimous opinion at the meeting. The client notes that, for the same price as a rebuilt machine, you can purchase an Asian model and that this is the general tone that employers are maintaining. Lozano (Battenfeld) aims that "the employer must raise that the second-hand market is disappearing at a rapid pace and that they should not expect obtaining large income, as it was the case years ago for the sale of their machines old which in many cases have more than 20 or 25 years of continued use." "They must modernize Park quickly if they want to remain technologically competitive in the market today".

"Multinational corporations also are buying Chinese machine", says Joaquín Rabinad, Manager of Ferromatik.

José Alberto Villatoro, of Protecnos, shares this argument "is no longer profitable to rebuild an old machine." "It is worthwhile to buy imported machine, that will always offer the advantage of new product, with current technology, to very similar price". Agustín Durán, of Centrotécnica, is of the view that "it might not be profitable to rebuild a certain tonnage machinery, front the cost of the Asian machines, but on machines of more than 600 tonnes of clamping force is, not only because of the high cost of the new equipment", but because the added value of reconstruction and technical update of these machines it is justified. "And in fact this small niche market of opportunity still exists."

According to Antonio Muñoz, commercial Director of Coscollola commercial (representative of Krauss Maffei), "the strategic version from our head office in Munich, where Krauss Maffei, is clear." "Spain automotive sector is at a point low." It adds that "the sector that has represented one of the pillars for the Spanish industry is affected." "In addition, national capacity in r & d to create new products is limited".

Diversification is an interesting possibility for the sector of the injection. The growing demand for food packed by a change in eating habits and the ageing of the population have encouraged the manufacture of new products, materials, and designs for the packaging sector. In this sense, injection sector sees a potential market in this segment. According to Pedro Ordejón (Demag) "people, especially the young and the elderly, look for products packaged and easy to open." "The figures speak for themselves: in United States, 80 per cent of the population consumes precooked food, which generates a huge consumption of packaging".

The importance of new technologies here plays a fundamental role, as well as develop new materials and applying new and innovative designs to the packaging, it is that should bring a number of features and benefits to the container such as an increase in the conservation of productsincrease the expiration dates or to preserve the aromas of the product.

He also points out that this ageing of the population results in a substantial increase of medicines and medicinal applications requiring new packaging. Ordejón (Demag) also believes that increasingly consumed less product thermoforming and increasingly more injected product.

The agriculture segment is also a suggestive market for the packaging sector.

The meeting gave rise to debate different points of view regarding the future of the simple machine. While there are those who provide for the small and simple machine of European origin will disappear in ten or twenty years, another group of the there present believes that the prices of such machines will decrease and will continue to be marketed. "The simple machine will not disappear even though growing competition from Asian machine". Ordejón (Demag) suggests that even one of Demag plans for the next five years is to promote the small machines.

This Piro (Netstal) points out that "the reality is that the prices of standard machines are"

"down to very low levels due to the great competition that are on the market by the Asian machine".

Lluís Llorca, of industries Deu, wondered "What we mean by European machine?" Designed and manufactured in Europe? Manufactured in Asia (for example) under European design, but with Asian labor? "If in the latter case the machine is not European, from my own experience we can say that these types of machines can compete in quality and of course in prices with European".

Entry into the market of a large number of Asian product requires the sector to raise the quality of the new machines from Asia. is the quality like? a client can trust a Chinese machine, for example? Lluis Llorca continues: "Asia has a great capacity to manufacture products with quality." It is the case of companies that manufacture in this continent, China, Taiwan, Korea, etc. "Everything depends on the degree of technological design that sustains this manufacturing."

Joaquín Rabinad (Ferromatik) says that "Asian competition being the match between European manufacturers for the price to be more and more fierce." Which offers the lowest price is the selling. "Sometimes the price bid even arrives at the cost of manufacture of the machine, that is the reality."

Villatoro (Protecnos) believes that "European competing very closely with the Chinese, specifically, machines machines of more than 140 tonnes." And that we are seeing it every day, when we see our competition offers. "This is an unquestionable reality."

Not all gathered together share the opinion. According to Ordejón (Demag), "it is impossible." There is a logical variation simply in cost, the standard of living, of manufacturing costs of a Chinese machine to a 60 percent European. "It is impossible that they can compete."

"In this sense, Villatoro (Protecnos) considered that competition for selling injectors is very aggressive to the point that some European companies are selling below their operating costs and that is the great current concern."

Vicente Pérez, of JTP (APM) it considers that it is a mistake to distinguish between machinery Asian and European, when we look at the market of the standard machine/application/material, the quality of manufacturing and technology from service, for example, manufacturers of Taiwan equals and even beats some European products, with very competitive prices.

The minimum quality required market already occur today in almost all the marks present on the market

Another added difficulty in selling injectors in Spain, in the opinion of Muñoz (Coscollola) is that "a large part of the decisions are taken in other countries". An argument that shares Demag "multinationals do not ask offers." You are informed that there is a project launched by your represented. "Then check the technical branch responsible in Spain to give their views,". Vincent Pérez, of JTP (APM) replicated to this large market in Spain is not in the hands of multinationals, but small and medium-sized private manufacturers, which are those which constitute the large sales figures.

J. a. Rodriguez (Negri Bossi) thinks "European machines of lesser tonnage is will continue to manufacture and competing with Asian machines or any other future provenance." Undoubtedly be taken new manufacturing systems, or even to produce them in those European countries where costs are cheaper to make them more competitive potential. "But even in spite of the differences that exist with the machines Asian, its quality and performance will continue to enjoying a very comprehensive customer sector preferences."

Small businesses are the most affected by the current weakness. So much that the gathered there consider that there are many that will gradually disappear: "a company with four or seven machines is not feasible, unless it is a family business." Mini companies will the same way that the mini spread has no future in Galicia, nor have in the plastics industry. "Which has left to die his machinery slowly, suddenly her may not be renewed".

Rabinad (Ferromatik) believes that "the problem is that some family businesses have too been based on low costs." As it has not renewed machinery, their machines are quite old and may not get new customers. "These go to other companies with more modern machinery that is currently offered at very competitive prices to be able to inject those parts". It adds that "the family business for many years has made lots of money rather than invest in new machinery has invested it in other things".

However, Villatoro, of Protecnos, believed to be value to small businesses, which are necessarily force to 'resist', as they usually support the needs of a family economy. But this transposition of criteria ends up becoming endemic in our country, because it distorts the purpose of the company, only becoming an economic means of 'better survival'.

This Piro (Netstal). "The sector has relied too much on cheap labour and little in the research, quality and productivity, and if not invest in training and technology, will go wrong because here we are no longer cheap." "A country which does not create wealth not be sustained."

According to j. a. Rodriguez (Negri Bossi) "the family business in this sector, as in many others of the Spanish industry in general, has been and continues to be a major engine in the economic activity of the plastic sector." Remember that it is by far the most significant percentage of the Spanish manufacturing industries. "It is true that some firms having no assured continuity in their descendants, have failed to term updates to machines, systems management, etc., that the times require, but a significant number of them has become more professional and carried out the precise actions to adapt to the conditions of the market."

Bernardo Alberca, Italprensas Sandretto, thought it "the injection of plastic is and will remain a very important factor in the process of transformation in all sectors of the industry." In this sense Spain in 10 years has experienced a major change in the technological aspect. But it is also true that 15 or 20 years ago also was an important Park of injection machinery and during that time have been able to produce situations similar to the of today.

The minimum quality required market already occur today in almost all the marks present on the market. "Therefore there is more competition for prices, what will differentiate a brand of another will be the Organization of Service post-sale that offers the speed of response, his real presence in the different areas of the territory and even involvement in the production process of the client".