Engel closes Austrian moldmaking division

Austrian injection molding machinery maker Engel is closing its moldmaking operation at its headquarters in Schwertzberg.

The move, which will be implemented within the next six months, is part of a strategic review of its systems integration capabilities, the company said.

Engels moldmaking unit employs approximately 60 people and has been a part of Engels operations for more than 50 years. The unit produced between 20 and 30 injection molds a year, according to Engel group marketing director Gerd Liebig, 90 per cent of which are multi-component designs for the automotive industry supplied as part of systems packages. Now, more and more demand is in new industries such as packaging. In the past it has been difficult for us to work with specialists in these areas when we have our own moldmaking, he said.

The company plans to establish a mold project planning team, which will be located in Schwertberg. The team will liase with moldmakers on a project-by-project basis.

Engel says no job losses are expected as a result of the move, as existing staff will transfer to other positions within the company.