Arburg, the prominent German manufacturer of injection moulding machines, is expanding its assembly operations in China as part of its strategy to strengthen its presence in global markets. During a recent press event preceding the company's annual Technology Days, Michael Hehl, Arburg's managing partner and management board spokesman, acknowledged the current global economic difficulties but expressed confidence in the company’s ability to thrive despite the challenges. "Such times offer opportunities to those prepared to seize them," Hehl stated.

Arburg's adaptability has been evident throughout its 102-year history. As European markets increasingly prioritize resilience, efficiency, and economic viability, Arburg is adjusting its product offerings to align with these demands. The company now provides a diverse portfolio, ranging from complex, high-end production systems to efficient standard solutions that focus on cost-effective manufacturing.

The growing skills gap and labor shortages have influenced Arburg's strategic direction. According to Guido Frohnhaus, managing director of technology and engineering, the company is investing in simplified, role-based machine control systems to ease the burden on operators and improve usability.

Expanding its footprint in emerging markets is a key focus for Arburg. The company is actively enhancing its assembly operations in China, with plans to increase its available production and office space to approximately 11,000 square meters by the second quarter of 2025. This expansion is designed to bolster capacity rather than relocate production. Additionally, Arburg is evaluating opportunities to expand in North America, reflecting its strategic push for increased global presence.

The decision to expand assembly outside Germany marks a significant shift for the company, which previously kept its manufacturing base entirely domestic. This expansion aligns with Arburg's broader efforts to diversify its operations while maintaining its core production capabilities in Germany.

Financially, the company faced setbacks in 2024. Arburg’s consolidated sales totaled approximately €600 million, falling short of the original forecast of €620 million and marking a 23% decline compared to the previous year. Steffen Kroner, managing director of finance, attributed this downturn to ongoing economic uncertainty. To manage these challenges, Arburg has employed socially responsible workforce reductions and introduced short-time working measures across its German facilities since January 2024.

Despite concerns about market instability in Europe and sluggish growth in the Americas, Arburg sees Asia as a region with strong growth potential. Tobias Bauer, managing director of sales and after-sales, highlighted the company's vigilance in navigating potential tariffs on European goods.

One promising development has been the recovery in Arburg’s after-sales business, which is now performing on par with the previous year. This indicates that customer production activities remain steady, though businesses are still cautious about new investments. Bauer expressed optimism that improved national and international conditions could trigger renewed growth and investment in the near future.