Bookmark 08-08-2012

Sumitomo (SHI) Demag: Expensive Repurchase

The Japanese parent company Sumitomo Heavy Industries (SHI) Ltd. is investing EUR 20 million in the injection molding machine manufacturer Sumitomo (SHI) Demag Plastics Machinery GmbH. The biggest item is the repurchase of the grounds and buildings of the sales and factory site in Schwaig, Germany, which the previous owner, the holding company Madison Capital Partners, Chicago, USA, had sold to a property company. The investment plan also includes purchasing new processing machinery and modernizing the production systems in the Schwaig factory near Nuremberg, Germany, and the Wiehe factory in Thuringia, Germany. According to the press release, Sumitomo Heavy Industries is thereby acknowledging Sumitomo (SHI) Demag’s growing market shares in previous quarters and, through the repurchase, underscoring its strong confidence in Germany as a manufacturing base.