Injection molding OEM restructures
In the face of a lingering lull in the sales of injection molding machines, Van Dorn Demag has launched a number of...
August 27, 2002 by Canadian Plastics
In the face of a lingering lull in the sales of injection molding machines, Van Dorn Demag has launched a number of restructuring and organizational changes. The Strongsville, OH-based company and Demag Ergotech GmbH have formed an alliance to combine their North American marketing, sales and service functions. Staff has been re-assigned and/or eliminated where there was a duplication of duties between the two companies. According to a press release, Van Dorn Demag will reduce its workforce by a net 7% as a result of these restructuring efforts.
"Though we have begun to see positive signs in certain segments, the overall demand for injection molding machines is still lagging," says Bill Carteaux, Van Dorn Demag president and CEO.
The company is also conducting an internal review of operations in order to find ways to increase operational efficiencies.
"Other manufacturers have or will go through a restructuring process and be forced to layoff some of their workforce," Carteaux claims. "Unfortunately, it is not new to the industry."