Engel to modernize North American operations

Engel Austria GmbH has announced that it will invest US$4 million over the next three years to modernize its North American production network. Additionally, Guelph, Ont.-based Engel Canada Inc., a subsidiary of Engel Austria GmbH, has announced that it will focus on the production of all-electric machines and the packaging industry.

According to the company, the improved integration of its two North American facilities will allow the Guelph plant to “optimize processes, improve flexibility and reduce costs.”

The company’s refocusing may result in layoffs, but Engel did not demonstrate the scope of the downsizing.

“With a reduced market for standard machines, especially for the production facility in Canada, some changes in manufacturing processes are required to maintain profitability,” said Engel North America president Steven Braig in the press release. “Engel North America will utilize the expertise of the parent company Austria or Engel’s factory in Asia, to enable us to provide a quality product at a competitive price.”

Engel also announced that it would open the Technology and Training Centre in York, Penn. York-based Engel Machinery Inc. has traditionally focused on the production of larger machines.

Braig was named the CEO of the company’s North American operations in June 2007, replacing outgoing CEO and president Walter Jungwrith. At the time, Engel had indicated that Braig would be based primarily out of Engel’s York facility. Additionally, as part of its pre-show press conference for the K Show, the company announced its plans to focus on large-capacity machines in York and on small- and medium-sized machines in Guelph.

“Guelph will concentrate on the production of Speed and E-Motion machines from 200 to 500 tonnes clamping force as well as on special machines and systems adapted to the growing market for all-electric machines and machines for packaging applications,” the company noted in a June press release.