Skip to main content
Sister Publication Links
  • Plastics News
  • Plastics News China
  • European Rubber Journal
SustainablePlasticsFINAL
Subscribe
  • Login
  • Register
  • SUBSCRIBE
  • News
    • Recycling
    • Sustainability
    • Bioplastics
    • Technology & Materials
    • If it’s up to MacRebur, the US may soon be travelling on plastic roads
      Unilever, Alibaba launch China’s first large-scale closed-loop plastic recycling system
      IneosStyrolution-Antwerp-main_i.jpg
      EU provides funding for sustainable ABS project
      Sabic and Plastic Energy to start construction on new commercial-scale recycling unit
    • Opinion: The future of sustainable plastic
      Vinyl organisations in US, Australia sign MOU to explore sustainability programme reciprocity
      IneosStyrolution-Antwerp-main_i.jpg
      EU provides funding for sustainable ABS project
      Huhtamaki welcomes LCA results on environmental impact of single-use packaging
    • Covestro adds its bio-TPUs to Desmopan product range
      Yield10 Bioscience announces milestone achievement with plant-made PHA
      Novamont advances vertical integration growth strategy with acquisition BioBag
      British researchers make sustainable polymer from sugars in wood
    • Injection Moulding
    • Blow Moulding
    • Extrusion
    • Thermoforming
    • 3D printing
    • Technology
    • Materials
    • Machinery
  • Opinion
    • View Point
    • Opinion: The future of sustainable plastic
      A year to remember
      Opinion: California introduces world’s toughest plastic bottle recycling legislature – will other markets follow?
      Opinion: What to expect from plastic that protects our kids
  • Events
    • Our Exhibitions
    • Plastics Industry Awards (PIA)
    • Ask the Expert
    • Sustainable Plastics Live
    • Reifenhäuser Technologies Livestreams
    • Plastics News Europe Live Archives
    • Plastics Recycling Show Europe
  • Prices & Resources
    • Polymer Prices
    • Data Reports
    • White Papers
  • Contact
    • Advertise
    • Media Pack
  • Subscribe
    • Magazine
    • Newsletters
    • List Rental
  • Digital magazine
    • Digital Magazine
  • Multimedia
MENU
Breadcrumb
  1. Home
  2. News
October 09, 2020 03:59 PM

Engel blames automotive market for slumping sales

Catherine Kavanaugh
Plastics New Staff
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    ENGEL Austria

    Stefan Engleder, CEO Engel

    Injection moulding machine builder Engel Austria GmbH is looking at back-to-back annual sales declines of 20 percent, in part because automotive manufacturing slowdowns caused by the pandemic exacerbated other problems in that market.

    The 75-year-old company saw sales of 1.3 billion euros for its 2019-20 fiscal year that ended in March, CEO Stefan Engleder said at an Oct. 8 virtual news conference.

    "The outlook for this fiscal year, as we are half way through, we estimate will decline again by approximately 20 percent," Engleder said.

    Company officials said machine orders from automakers had already slowed because of doubts about future power train concepts as well as uncertainty about the fallout from the Dieselgate scandal, where cars were rigged to pass emissions tests.

    "Investment has been held back by the OEMs because they're still threatened with high penalty out of the diesel scandal," Chief Sales Officer Christoph Steger said. "And there's overcapacity in production facilities all over the world regarding automotive. We don't see a very near recovery in terms of increased market demand for products that support the production of cars and trucks."

    The family-owned business based in Schwertberg, Austria, also saw decreased machine sales to the teletronics industry because consumers are hanging on to their phones and televisions longer.

    However, Engel officials said packaging, medical and technical molding are proving to be stable and growing markets.

    "The technical molding industry combines infrastructure, toys, home appliances and tools. It has remained comparatively stable in its demand and it has become today the biggest share in Engel's portfolio," Steger said.

    The stay-at home trend is helping, he added.

    "It's probably not only a trend but an obligation. When staying at home people start do-it-yourself projects and buy tools and other products," Steger said.

    The packaging market not only remains stable for Engel through the COVID-19 crisis, the CSO said it highlights the important contribution of plastics in regards to hygiene and the delivery of goods.

    The ongoing public discourse about plastics hasn't been very productive, he added.

    "We call it plastic bashing, not because we don't see the problems plastics are causing in our environment, but basically because everything is mixed up," Steger said. "There's no objective or constructive discussion ongoing. It's toward a bashing movement."

    ENGEL Austria

    Chief Sales Officer Christoph Steger

    A couple bright spots for Engel include the medical market and truck/SUV segment of the auto market. Medical business has "grown substantially" with customers investing in their facilities to meet high demand for respiratory and testing devices, Steger said.

    Also, there's "huge demand" for trucks and SUVs even as sedan sales decline.

    "The industry isn't booming but its stable and its growing," Steger said.

    Company officials expect the automotive market recovery to be more than a matter of months, but they see a strong role for plastics.

    "No matter which drive concept succeeds, it is leading to new applications and innovative technologies because at the end of the day, the lighter the car is the farther it can go whether it's a hybrid car, all-electric car or still a combustion engine car," Steger said.

    Engel officials also put a spotlight on new technology, including the e-mac 130, which is a compact machine with a clamp force of 130 tons, and an all-electric micro-moulding machine with an LSR injection unit to produce parts with a shot weight below 0.1 grams.

    "We believe there is a niche for this type of application, especially in the automotive sector or medical field. We have a lot more sensors and we need more seals and LSR is a big megatrend anyway," Engleder said.

    Get our newsletters

    Staying current is easy with Sustainable Plastics' news delivered straight to your inbox, free of charge.

    Reserve your subscription today

    Subscriptions to Sustainable Plastics, the leading Pan-European magazine for the circular plastics industry are coming soon.

    Subscribe now
    Connect with Us
    • LinkedIn
    • Twitter

    "In a changing world, Sustainable Plastics is a constant: a platform the plastics industry can rely on to deliver the news and knowhow impacting the industry going forward”

    SustainablePlasticsFINAL
    Contact Us

    11 Ironmonger Lane, EC2V 8EY
    United Kingdom 
    Tel: +44 (0)1622 370570

    Customer Service:
    1-313-446-0450

    [email protected]

     

    Resources
    • Advertise
    • Sitemap
    • Careers
    • Subscribe
    Affiliates
    • Plastics News
    • Plastics News China
    • LSR World
    • European Rubber Journal
    • Urethanes Technology
    • Tire Business
    • Rubber & Plastics News
    • Automotive News
    • Automotive News Europe
    • Crain Publications
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • News
      • Recycling
      • Sustainability
      • Bioplastics
      • Technology & Materials
        • Injection Moulding
        • Blow Moulding
        • Extrusion
        • Thermoforming
        • 3D printing
        • Technology
        • Materials
        • Machinery
    • Opinion
      • View Point
    • Events
      • Our Exhibitions
        • Plastics Recycling Show Europe
      • Plastics Industry Awards (PIA)
      • Ask the Expert
      • Sustainable Plastics Live
      • Reifenhäuser Technologies Livestreams
      • Plastics News Europe Live Archives
    • Prices & Resources
      • Polymer Prices
      • Data Reports
      • White Papers
    • Contact
      • Advertise
      • Media Pack
    • Subscribe
      • Magazine
      • Newsletters
      • List Rental
    • Digital magazine
      • Digital Magazine
    • Multimedia