A publicationof the ARBURG group

Number 8 Spring 1998

Information concerninginjection mouldingtechnology and market news

JUBILEEJUBILEE

75 years of the Hehl company

75 years of the Hehl companyA great beginning to a great jubilee

ARBURG ecologyEnvironmental protection with a system

ARBURG productionSMD - PCB assembly: Working on the surface

Notice board

ARBURG subsidiariesHONG KONG: An important springboardon the route to China

ARBURG financeFit for the Euro

ARBURG serviceCustomer orientation allround

User reportTwo Jubilees - An effective co-operation

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C O N T E N T S

Technology and developmentNew: ALLROUNDER C JUBILEE

ARBURG GmbH+CoArthur-Hehl-StrasseD-72290 LossburgTel.: +49/7446-33-0Fax: +49/7446-33-33 65e-mail: today_kundenmagazin@arburg.comWebsite: www.arburg.com

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1998 is a very special year for ARBURG. We are celebrating 75years of the continued existence of the Hehl family firm. 75years of the Hehl family firm means 75 years of expanding andinnovative production in Lossburg: from our point of view, anexcellent reason for celebration. In 1998, a year which is fur-ther enhanced by the K Trade Fair in Düsseldorf, we intend tohold fitting celebrations.And we have had a really special idea to accompany these cel-ebrations. As our Jubilee gift to you, we present in this issue acomplete new engineering series: the ALLROUNDER C JUBILEE.This combines the tried and tested engineering technology ofthe C series with the modern control theories of SELOGICAcontrol. We are convinced that this represents a wide rangingmachinery generation for the industry.Our Jubilee confirms us in all our most important areas of ac-tivity. To transform a family operation into a company which isactive world-wide within just 50 years, a company which canhold its own within the sector against strong competition fromlarge multi-national corporations, with its own special blendof business concepts, shows clearly that, at the decisive part-ing of the ways, we have chosen the right path.We remain, as we always have been, an internationally inde-pendent, innovative company in a leading market position,producing products of the highest quality which fulfil customerneeds. The enthusiasm of those who work for us is transmittedto our customers and our partners. Our company concept issummarised in our company motto: ARBURG – Allrounders foreconomic efficiency in injection moulding.On the basis of our experience, we are confident that we cancontinue to ensure ARBURG’s extraordinary success in the fu-ture.We hope that you will find the new issue of ARBURG today in-formative and enjoyable.

Eugen Hehl Karl Hehl

75 yearsof the Hehl company

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7 5 Y E A R S O F T H E H E H L C O M P A N Y

Even in its Jubilee celebra-tions, ARBURG is settingstandards: the official open-ing of the Jubilee year for the75 years continuing existenceof the Hehl family companywill remain an unforgettableexperience for the invitedguests, for several reasons.

On the one hand there was acelebration of a Jubilee, whichwas undoubtedly an outstandingevent for the sector, and on theother hand there was a surpriserevelation to the audience of along-guarded secret. In a grandunveiling ceremony, underpinnedwith music and lighting effects,the ARBURG management pre-sented to the public a completenew machine series: theALLROUNDER C JUBILEE. The pres-entation of the entire series atonce, showing the whole rangefrom low clamping force machinesup to the large machines, wassomething quite new and wasmuch admired.

And this surprise effect was asuccess not only in Lossburg: onall five continents, the official startto the Jubilee year was markedwith a special Jubilee event at all

ARBURG locations, and also withsome of our trading partners,within the various global timezones.

Celebrations were held inJapan, Hong Kong, Singapore,(jointly with Thailand and Indone-sia), Malaysia, the USA, Poland,Denmark, Belgium, the Nether-lands, Turkey, the Czech Republic,Switzerland, Spain, Italy, France,the UK, Austria, Sweden, Brazil,Mexico, Israel, Australia, Koreaand South Africa. In Lossburg,many ideas had been put forwardto present our VIP public with atruly memorable day.

Enthusiastic audienceSales Manager Heinrich Fritz,

with professional authority, pre-sided over a packed (in the truestsense of the word) two-hour offi-cial programme.

“I have never seen anythinglike today in our sector, but withARBURG you have to be preparedfor anything,“ commented one ofthose present, who has had manyyears experience of the sector, tak-ing evident pleasure in the extentof the celebrations and the flaw-lessness and “surprise“ quality ofthe event.

A happy mixtureMuch value has been placed on

the harmonious variety of the pro-gramme. Historical resumés in theform of speeches alternated in asmoothly running sequence withmultimedia presentations showingARBURG’s historical achievementsand developments and also the in-novative position held by the com-pany today.

After a speech of welcome byManaging Director Heinrich Fritz,which dwelt on the historical mile-stones of ARBURG’s developmentand parallel events in world his-tory, the Chairman of the Board ofManagement Eugen Hehl gave hisview of the history of the com-pany: “When our father, ArthurHehl, began manufacturing surgi-cal instruments in Lossburg in1923, no-one could truly haveforeseen that this bold entrepre-neurial step would ever result insuch success on a world-widescale“.

Thanks expressed for supportAlthough pleasure in this suc-

cess is well justified, the hard workwhich went with that successshould not be forgotten: “Whenwe look back, on a day of jubileecelebrations like this one, there ismuch that may seem easy, almosttoo easy, like a game.“ During hisspeech, Eugen Hehl eloquently ex-pressed his thanks to the wives ofthe Hehl family company, and alsoto the men and women employedby the company: the success ofARBURG was the success of a com-pany family, and all had contrib-uted to that success, whatevertheir position. Here he quoted theletter of good wishes sent by theIsraeli trading partner: “ARBURGALLROUNDERs strike a bridge fromthe past into the future“. Thismotto could not have suited thetone of the event better.

Humorous anecdotes fromKurt Schaber

Following on from the greatapplause with which Eugen Hehl’sspeech was received, the pro-gramme moved towards anotherhigh point. With the former SalesDirector for Germany, KurtSchaber, who left at the end of1996 to enjoy a well-earned retire-ment after 36 years of service to thecompany, ARBURG had secured awell calculated audience successat its Jubilee event.

Kurt Schaber, still very wellknown to all customers, led usthrough the decades with a seriesof anecdotes. The guests presentenjoyed many stories which, onthe one hand, demonstrated thebest Swabian traditions of dili-gence in business matters of the

A great beginning toa great jubilee

ARBURG management, but at thesame time also illuminated the everpresent humane concept of “do-ing business“ and “letting busi-ness be done“.

The new series is revealedAnd now the moment had

come: ARBURG lifted the veil fromthe secret it had kept so well for solong. The ALLROUNDER C JUBILEEentered the stage. Following theunveiling, which set new stand-ards in its ceremoniousness, theManaging Director of Manufactur-ing Herbert Kraibühler and Manag-ing Director of Sales Heinrich Fritzheld a short dialogue pointing outthe technical and commercial ad-vantages of the JUBILEE series.

75 yearsof the Hehl company

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7 5 Y E A R S O F T H E H E H L C O M P A N Y

The best possible equipmentFour different injection units

are available for the ALLROUNDERC JUBILEE. 270 and 320 C operateeither with a 100 or a 250 unit,while the 370 to 520 C machinescan also be supplied with the 350or 675 units.

From the dialogue between thetwo Managing Directors, it wasclear that many of the arguments infavour of the new series had origi-nated in the Swabian “ideas fac-tory“. The audience evidently tookthe same view: there was lengthyapplause in appreciation of thoseactive in and responsible for thisdevelopment, for an unforgettableexperience in Lossburg, and con-gratulations for an extraordinaryJUBILEE, followed by a remarkablebuffet meal which provided ampleopportunity for individual talksand exchange of information, andfinally tours of the companypremises.

With its highly interesting tech-nical features, the JUBILEE editionfrom ARBURG possess‘ one advan-tage which can be seen at aglance: customers are being of-fered tried and tested machinecomponents combined with an ul-tra-modern control technology –all in a JUBILEE package which isalso highly interesting from theeconomic point of view.

The concept is modular,naturally

The modular design of theALLROUNDER S finds its logicalcontinuation in this series also.JUBILEE machines can be suppliedwith either SELOGICA orDIALOGICA user shell, with clamp-ing forces of 300 to 2000 kN, fourdifferent injection units and tie bardistances between 270 x 270 and520 x 520 mm.

Twice as goodUsing the graphic sequence

programming of the SELOGICAuser shell, machine operators cancarry out even complex injectionmoulding tasks easily and quickly.Handling and peripheral equip-ment can (optionally) be inte-grated directly into the sequenceprogramming.

As an alternative to the graphicSELOGICA user shell, the JUBILEEcustomer can also order hisALLROUNDER with the known andproven DIALOGICA shell using se-lective menu logic. Standard forthe DIALOGICA is the automaticvalidation control which effec-tively prevents faults in program-ming.

75 yearsof the Hehl company

JubileeJubileeJubileeJubileeJubileeMarch ‘98

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The already well knownALLROUNDER C technology hasbeen combined with the latestSELOGICA control technology.The modular design has been re-tained as a logical consequence inthis series also.

JUBILEE machines can be sup-plied with either SELOGICA orDIALOGICA user shell, with clamp-ing forces from 300 up to 2000 kN,four different injection units andtie bar dimensions from 270 x 270to 520 x 520 mm. The wide varietyof standard equipment is com-pleted with a series of options bywhich optimum solutions can befound for all requirements.

quence, only those adjustment fig-ures are shown which are actuallyavailable. Expensive and time con-suming programming is thus con-siderably reduced.

The automatic validation checkgives protection from faulty pro-gramming. Comprehensive qualitycontrol functions, paired with op-tional graphic evaluations, permitquality control statements whichare close to production.

Handling and peripheral equip-ment can (optionally) be directlyintegrated into the sequence pro-gramming, making the setting upof the ALLROUNDER C JUBILEEeven simpler. Special sequences

Since 1923, practical solutionshave been produced with ex-pertise and precision inLossburg, and these havesince become known world-wide. Naturally our custom-ers should also profit fromthe 75 year Jubilee of ourcompany.

Another of these innovations,and indeed a very special one, wasput on the market internationallyat the same time as it was revealedwith all due ceremony as part ofour 75th birthday celebrations: theALLROUNDER C JUBILEE series.

New:New:New:New:New:ALLROUNDER C JUBILEEALLROUNDER C JUBILEEALLROUNDER C JUBILEEALLROUNDER C JUBILEEALLROUNDER C JUBILEE

SELOGICA control: Every-thing central and to hand

With the graphic sequence pro-gramming of SELOGICA, the ma-chine cycle can for the first time beput together using graphic sym-bols. The representation of the se-quence appears as an easily under-standable flow diagram which canbe seen at a glance. Each step ofthe cycle can be quickly identifiedand directly modified where nec-essary, by calling up the parametericons from the sequence program-ming.

Here, depending on the ma-chine equipment, mould data andtask data, and also the cycle se-

75 yearsof the Hehl company

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T E C H N O L O G Y A N D D E V E L O P M E N T

no longer need to be separatelyprogrammed, but can be freely puttogether on the monitor owing tothe flexibility of the control.

With the “window“ display,the sequence programming andthe parameter page selected viathe appropriate symbol can beshown simultaneously on the di-vided screen. This makes program-ming easier by direct matching.Using the following extendedfunctions:– Production control (automatic

switch on etc.),– Extended monitoring (mould

status etc.),– Extended drive movements

(ejectors etc.),– Quality control (fault evalua-

tion etc.),– Optimisation / user help (freely

programmable parameter pagesetc.),

– Documentation (protocols andmonitoring etc.)

the ALLROUNDER C JUBILEE canbe precisely adapted to all injec-tion moulding requirements.

DIALOGICA programminginterface as alternative

As an alternative to the graphicSELOGICA user shell, theALLROUNDER C JUBILEEs can alsobe supplied with the knownDIALOGICA shell in selectivemenu logic. Here also, parameterswhich are not needed can be sim-ply eliminated. The automatic vali-dation check, which effectivelyprevents faults in programming, isalso standard.

Various interfaces are availablefor controlling robotic handlingequipment and peripherals for theDIALOGICA. In addition, up to 8programmable inputs/outputs forcyclical connection of externalequipment are possible.

The DIALOGICA has the follow-ing extended functions to offer:– Extended monitoring,– Extended drive movements,– Production control,– Optimisation / user help,– Quality control,– Documentation,– Operating data,– Injection,– Mould movements,– Curve presentation.

The keyboard and monitor arelocated on a flat, swivable pen-dant immediately adjacent to thesafety gate, which ensures an opti-mum overview in each operationalphase. The design and colour ofthe new machines are based on theALLROUNDER S series, which infuture will provide the standard forthe entire ARBURG range of ma-chinery.

Stable machine baseThe machine base for the Jubi-

lee ALLROUNDER consists ofwelded steel frame. It carries notonly the entire hydraulic systemincluding oil tank and pumps, butalso the electric motor and theequipment for regulating the tem-perature of the machine. The baseand the hydraulic distributionmanifold are set on vibration bear-ings, so that the machines are qui-eter and less subject to vibration.Oil temperature and control cabi-net temperature are controlled byseparate cooling circuits and thesupport yoke temperature is manu-ally controlled as standard. An au-tomatic control is also possible asan option. Up to 10 manually op-erable circuits are available to con-trol the temperature of the mould.Automatic regulated control is op-tional here also.

ALL

ROUN

J UBI

LEE

High performance hydraulicsystem

The hydraulic requirements arecontrolled by two distributionmanifolds. All valves are arrangedon these units close to the slaveunits and are therefore easy to serv-ice. The injection regulator isstandard. The clamping unit canbe adapted to any preconditionsby various hydraulic add-on stages,a distinction being made betweenthe following variants:– T1: The energy saving version

with a regulating pump for se-rial, regulated machine move-ments with stroke-dependent,regulated end ramps.

– T2 regulated: Operates withtwo regulating pumps, mouldclamping force is programma-ble and regulated, nozzle con-tact is programmable.

– T2 servo regulated: Equipmentalso with two regulatingpumps. Additionally, servovalve closed loop to mouldclamp for increased accuracy indrive movement and position-ing, mould clamping forcemaintained by servo regulatorvia second pump.With the hydraulic systems of

stage T2, simultaneous drivemovements can be carried out forfaster cycle times.

via two ejector programmes. Therapid connect coupling simplifiesthe connection between ejectorand mould.

ALLROUNDER C JUBILEEs canoptionally be fitted with hydrauliccore pulls, e.g. for pulling cores inthe mould or for operating an un-screwing unit for threaddemoulding. The connectionswith screw couplings are mounteddirectly on the moveable mount-ing platen.

Practical modular design:The injection unit

Four different injection unitsare available for ALLROUNDER CJUBILEEs. The 270 and 320 C oper-ate either with a 100 or a 250 unit,and machines from 370 to 520 Ccan also be supplied with 350 or675 units. The hydraulic assem-blies with hydraulic screw drive,rapid action coupling, materialhopper and cylinder are independ-ent modules and are therefore con-venient for robotic handling andcleaning. The cylinder module inturn consists of a heated plasticis-ing cylinder, a plasticising screwand a nozzle.

Clamping unit: Preciseopening and closing

The robust design of the clamp-ing unit ensures high precisiondrive movements. The separatedrive cylinder system permits effi-cient oil exchange, which ensureshighly accurate advance travel andoptimum clamping. Both hightravel speeds and slow travel underhigh force can be achieved with-out problems.

The clamping unit, guided byfour tie bars, is further character-ised by long bearing surfaces ofthe solid and stable box type con-struction of the moving platen.From the 370 C JUBILEE upwards,there are vertical supports on themoving clamping side, in order toensure that the planes are abso-lutely parallel and that there isminimum form wear. The hydraulicejector with rapid action closing isintegrated in the clamping systemand can be flexibly programmed

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T E C H N O L O G Y A N D D E V E L O P M E N T

9

The adjustable cylinder heatingis programmed via the controlunit. The regulating parameters areself-optimising and adapt to differ-ent control distances automati-cally.

The cylinder and injection con-trol are standard, and the screwposition regulator with controlledback pressure and nozzle contactforce is the first option stage. Thesecond optional additional stageavailable is the injection processcontrol. By means of an internalpressure sensor acting in conjunc-tion with the position-regulatedscrew, perfectly precise injectionand dwell pressure characteristicscan be achieved.

Each of the four injection unitscan be combined with three (andin the case of the 675 unit four)

cylinder modules of varying diam-eter and three wear resistancegrades for cylinder and screw. Forspecial procedures (LSR,Duroplast, powder etc.) there arefurther modules in various sizes.The connection between the screwand the hydraulic drive of the cyl-inder is made by means of a rapidconnect coupling with push-to-close action. All supply lines forthe injection unit are created cen-trally via a plug-type connector onthe cylinder module.

A parting line device for linearmould filling and VARIO versionfor horizontal free displacement ofthe injection unit (options) are fur-ther technical variants which addto the range of applications ofALLROUNDERs.

High technology for theJubilee

The Jubilee ALLROUNDER ide-ally combines tried and testedstate-of-the-art technical compo-nents with a new and innovativemachine concept. With the modu-lar construction, operators have allthe freedom they need in program-ming, resetting, production andservicing, without having to sacri-fice ergonomic considerations andsimplicity in implementing operat-ing requirements. The variouspractice-oriented grades of ma-chine permit the customer to meet

his specific day-to-day productionrequirements at the configurationstage of the ALLROUNDER, with-out having to exclude future appli-cation alternatives.

With the ALLROUNDER CJUBILEE, ARBURG has proved yetagain that the most important fea-ture of injection moulding ma-chinery is practicality, and there-fore flexibility. The name“ALLROUNDER“ has stood for thisprincipal feature of all ARBURGmachines for many years, and thisremains especially true for the“Jubilee edition“ for our 75th

birthday.

75 yearsof the Hehl company

Powerful indicators for the in-novative force of fischerwerke,which today is valued by millionsof home workers and craftsmen,are the number of individual in-ventions (more than 1600) andproducts which are known fortheir excellence world wide. Andthe managing partner KlausFischer already has the reputationof extending his innovativethought in the matter of productsto the company as a whole. For thelast 17 years the 47-year old son ofthe company’s founder has beenChairman of the Board of Manage-ment.

Fixing systems (fischerdübel),technical construction systems(fischertechnik) and automotivesystems (fischerCBOX) all originate

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U S E R R E P O R T

from the same company, which to-day is a group of companies withmore than 2,725 employees, DM560 million consolidated annualturnover and 23 subsidiary compa-nies from Brazil to China.

At the main site in Tumlingen,ARBURG’s innovative engineeringtechnology has long been greatlyvalued: plastics parts are producedhere for the three main sectors ofthe business on 114 injectionmoulding machines. More thanhalf of these machines are fromARBURG, including six dual com-ponent design machines. Atpresent, in the plastics sectoralone, ca. 6.5 million plugs aremanufactured daily in Tumlingen.

gion, have a successful workingco-operation and each have a longcompany tradition. In 1998, theARBURG Jubilee year, fischer em-ployees are celebrating the50 years of their company’sexistence. There is certainly goodreason to be proud of theircompany: the fischer group ofcompanies has long been knownas a supplier of brilliant ideas.fischer is “one of the most innova-tive medium sized companies inGermany“, was the judgementin manager magazin, and Baden-Württemberg’s Prime MinisterErwin Teufel can congratulate him-self on having such “Swabian pat-ent smiths“ as ARBURG andfischerwerke based in his FederalLand.

1998 is truly an extraordinaryyear for the German plasticsindustry, with ARBURG cel-ebrating its 75 year Jubileeand one of its long term cus-tomers, the plug manufac-turer fischerwerke havingbeen in existence for 50 years.For decades the Tumling-based company has turned toARBURG technology for itsproduction of plugs, whichare known the world over.

Thus the machine specialistand the plug manufacturer – bothbased in the northern Black Forestarea – are connected by muchmore than good neighbourlyrelations: both are among the ma-jor employers of their home re-

Historical production site: at the plastics process-ing plant in Tumlingen, more than 6.5 million plugsare produced daily on 114 injection moulding ma-chines.

TTTTTwo Jubilees - anwo Jubilees - anwo Jubilees - anwo Jubilees - anwo Jubilees - aneffective co-operationeffective co-operationeffective co-operationeffective co-operationeffective co-operation

idea at the right time. However, af-ter thorough testing, the trainedmetal worker was forced to realisethat the British product would inpractice only present further prob-lems, and so he set about develop-ing a plug himself.

In 1958 the grey fischer fixing S,made of nylon, was put on the mar-ket. There was much head shakingamong building experts at the ideathat this valuable plastic

should simply disappear into thewall. But Artur Fischer, who likesto be known as “the man with5500 patents“, knew what he wasdoing: nylon is characterised by

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A N W E N D E R B E R I C H T

50 years of the fischercompany – a success story

The company was founded in1948 by the 29-year-old ArturFischer. As early as 1950 turnoverhad reached DM 164,000. Thirtyyears later, his son Klaus, also 29at this time, took over the companywith a total turnover of 160 mil-lion – and increased this turnoverto 560 million in the financial year1997.

This success has been based onfischer innovations: everyone inthe fifties still used wooden blocksheld together by plaster, or bushesfilled with hemp, for screwing ob-jects to walls; but for the last 40years grey plastic has been the ob-vious choice: nylon plugs “madeby fischer“.

In 1953, when Artur Fischerwas given the opportunity of tak-ing over the manufacture of anEnglish plastic plug in his hometown of Tumlingen, he realisedthat this unassuming object wouldoffer hitherto unsuspected solu-tions for fixing problems. He “hada feeling“ that this was the right

high chemical and thermal resist-ance, immense long term loadbearing capacity, good resistanceto ageing and neutral corrosioncharacteristics. The nylon plugthus offered, and continues to of-fer, the ideal prerequisites for longterm secure fixing.

The highest productionfigures

Since then, more greyfischer fixing S plugs have beenproduced than any other type ofplug in the world, and it is themost often copied! This tiny butimmensely strong object has notonly made day-to-day work in DIYand professional building easier,but has formed its own market infixing technology. This is evidentfrom over 860 fischer inventions inthe field of fixing technology, aproduct range of over 1,000 typesof plug and the highest number ofbuilding authority licences grantedby the Deutsche Institut für Bau-technik (DIBt) in Berlin.

Internationally in demandfischer has long been regarded

as problem solver number 1 in allareas of fixing technology – plas-tic plugs, steel bolts, compositeanchorings. At fischer’s own re-search centre, top quality productsare developed, from the new plugfunctioning principle (FUR) to thefuture-oriented service feature (theelectronic catalogue).

fischer is also internationally indemand: whether in the Euro-tun-nel or the Belt-Querung in Den-mark, the London underground orthe Amsterdam Arena, the MoscowSavings Bank or the Jin Mao build-ing in Shanghai: fixing systemsfrom Tumlingen are there.

75 yearsof the Hehl company

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A R B U R G S E R V I C E

for more than 25 years, by its pres-ence on the market, efficient serv-ice provision and the detailedtraining programmes offered.

Optimum service: What thismeans to ARBURG

An effective service departmentcannot simply limit itself to offer-ing support when technical prob-lems arise with machines, but mustindicate its competence to the cus-tomer before he has even boughtan ALLROUNDER, by a variety ofcustomer care services.

ARBURG has set up a networkof such interconnected servicesectors, consisting of:

– A telephone service– Customer service– Spare parts sales with high

availability and short deliverytimes

– Advice on application aspects– The Technical Centre– Training.

Telephone serviceWith a telephone call,

ARBURG’s customers can oftensave themselves time consumingand costly visits from fitters. Forthese cases, ARBURG has set up itsown telephone diagnosis serviceas the most important componentof its service provision. This is op-erated in Germany by three servicetechnicians in Lossburg and by allemployees in customer service cen-tres. Indeed, in ca. 70 % of cases,problems can be diagnosed andsolved on the telephone.

However, if the problem cannotbe clarified by telephone as ex-pected, all service technicians canbe reached by pagers or mobilephones, so that they can be on sitewith the customer as quickly aspossible. The equipment of thecustomer service vehicles with over5,000 spare parts also helps in therapid removal of functional de-fects.

Internationally, the trained em-ployees of the ARBURG branchesare the first contact partners in“problem cases“. Here also, a cus-tomer telephone service is avail-able for the removal of any obsta-cles in the path of problem-freeproduction.

Customer service: Effectivehelp with problems

An effective customer servicecan be of decisive importance,since loss of production can be re-duced by rapid removal of faults.ARBURG has therefore set up aworld-wide co-operative customerservice operation which ensuresrapid help to customers experienc-ing technical difficulties. Themodel for this comprehensiveservice network is Germany with17 service points and over 60service technicians. In more than80 % of cases, these specialists canbe on site with the customerthe same day.

From Lossburg, ALLROUNDERsare sent out all over the world. Theproportion of exports is ca. 60 %of overall production. There aretrading contacts with 110 coun-tries. This high proportion of over-seas trade requires an effective,flexible service network in addi-tion to efficient machine design.30 ARBURG sites in 20 countriesensure effective supplies to allARBURG customers worldwide.

Spare parts service:Computer supported forfastest delivery times

In order to offer comprehensivecustomer service, it must also bepossible for spare parts to be avail-able in as short a time as possible.

In Lossburg, ARBURG has thisdirect access. It has a modern,computer controlled warehousewith ca. 35,000 replacement partswhich, if they are available in themain store and are ordered before4 pm, can be sent off on the sameday. In urgent cases parts canreach the customer by 9 am on thefollowing day.

In addition to the warehousesat the main site, all service pointsin Germany are equipped with acomprehensive stock of spareparts. In addition, Lossburg has adirect “on-line“ connection withall European and US agencies. Allstocks of spare parts, includingspare parts for customer service ve-hicles, can be directly called up,in order to guarantee the shortestpossible delivery time on an inter-national level also.

Finally, via T-online, Germancustomers can themselves ascer-tain whether a spare part for anALLROUNDER is available, andwhat it costs. Orders can beplaced at any time with a 3 % dis-count.

In recent years various cus-tomer surveys have been initi-ated in the injection mouldingsector and also withinARBURG, to determine whatthe principal criteria are fordeciding on the purchase of amachine.

The results of the surveybrought to light some interestingfacts: the first categories were alloccupied with entries referring toafter sales service. In other words,for the majority of customers thedecisive factor when purchasingmachines is not price, but cus-tomer service which is speedilyavailable, spare parts which can besupplied promptly or an efficienttelephone service.

ARBURG has known from anearly stage that provision of highquality injection moulding tech-nology alone is not sufficient toprovide a comprehensive serviceto customers. For this reason, thecompany has been passing on itsextensive expertise to customers

Customer orientationCustomer orientationCustomer orientationCustomer orientationCustomer orientationallroundallroundallroundallroundallround

Dies ist Blindtext für eine kurze Bildbeschreibung

Comprehensive advice rightfrom the start

Right from the start, ARBURGoffers its customers ongoing prac-tical co-operation in order to reachwell-founded and comprehensivesolutions to all problems in injec-tion moulding. Sales engineers andapplication engineers providesupport with valuable hints andsuggestions, e.g. regarding layoutof parts, fill flow analyses, cycletimes and also quality control.

From individual machines,through processing of special ma-terials right up to planning andproduction of whole systems withALLROUNDERs and peripherals(automation), the technical depart-ments and systems technicianshave a thorough knowledge. Expe-rienced specialists address suchmatters as the setting up of themachines, the selection of controldevices and materials suitable forthe operating tasks in question,the form of the mould, the use ofrobotic handling devices and trialinjections in the technical centresat Lossburg, Rednitzhembach,Radevormwald and in theARBURG branches.

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A R B U R G S E R V I C E

Training: The right basisARBURG offers more than

200 machine-based foundationcourses, general courses and spe-cialist courses annually. Approxi-mately 60,000 participants haveavailed themselves of these coursesover the last 30 years. Subdividedinto plastics technology, machineinstallation, servicing and inten-sive practice courses, they can beused by participants to extendtheir basic knowledge ofALLROUNDER functions, choice ofmaterial and maintenance, andthus effectively improve the useand flexibility of their machines.The theories taught in the coursescan be immediately put into prac-tice by the participants on the ap-propriate machines, so that opti-mum machine handling skills areacquired. The extensive documen-tation written specifically for eachcourse provides customers withthe right answers to questions andproblems.

In addition to the training ses-sions in the main site at Lossburg,technical staff also hold courses inRadevormwald, Rednitzhembachand St. Ingbert, so that partici-pants do not have to make longjourneys. Independently of thetraining courses in Germany, thereare also seminars offered in all

branches worldwide, held by localstaff and specifically geared to thecountry in question.

Material and productionplanning: The basis for shortdelivery times and maximumquality

The ever-increasing quality re-quirements for the sector, the ex-pansion of machine programmingand the specialisation ofALLROUNDER technology havebeen provided by means of a sys-tem for production planning andmaterial flow. The most up-to-datemachinery is available on the mar-ket when required and in accord-ance with customer needs. Furtherconsiderations are minimum deliv-ery times and a favourable coststructure.

Today the company has an effi-cient planning and material flowsystem at its disposal, one whichcannot be bettered worldwide andwhich has a constant positive in-fluence on ARBURG’s productivity.

For the individual processingmachines in parts manufacture, thecapacity in use is determined fromthe order/deadline range of theproduction schedule. Dependingon the urgency of the case, theprocessed parts are either sent di-rectly for assembly or are kept in

automated warehouses. This en-sures maximum availability, par-ticularly in the supply of spareparts. Naturally this affects pricesin a way which is favourable to thecustomer.

DM

DM

DM

DM

DM

EURO

EURO

EURO

EURO

EURO

14

A R B U R G S E R V I C E

The Euro timetable:

May 1997: Start of ARBURGproject group.

1st May 1998: Consultation of EUfinance ministers regarding the listof participants in the third stageof economic and monetary union(EMU).

2nd May 1998: Decision of EUstate and government headsregarding participants andmembers of the future EuropeanCentral Bank.

1st January 1999: The Eurobecomes the new legal currencyof participating member states.At ARBURG and all Europeanbranches, invoices may also besent out in Euros from this date.

31st December 2001: The DMwill remain as house currency atARBURG until the end of 2001and the Euro will be nominallyhandled in-house as anotherforeign currency up to this date.

1st January 2002: By this date atthe latest, Euro notes and coinsshould be in circulation.

motivation and identification of allemployees for and with “theircompany“. Comprehensive qualitymanagement has been achievedfrom delivery up to final assembly.The checking of dimensions, con-nections, interfaces and functionsare of vital importance here. 100 %checks are always carried outwhere this is particularly impor-tant, above all for electronic ma-chine components, so that forpractical purposes defects in thisarea can be excluded.

On the other hand, the largenumber of items manufacturedmake it necessary in some areas toresort to random sample testing,for example in metal working. Tocheck the complex processes whichtake place in metal-cutting pro-duction, in the turning shop andgrinding shop, co-ordinate meas-uring machines are used, whichprovide three dimensional testing.

Material processing and testingare based on the same initial data.In the CADAM system used byARBURG, the Development Depart-ment’s CAD data are available bothfor NC programming via the soft-ware tool CAM-Kit and also for themeasurement technique using GMP(graphic measurement program-ming).

All the approximately 10,000different items of testing equip-ment of the company are regularlychecked for accuracy by an exter-nal laboratory. ALLROUNDERs alsoare subjected to one final compre-hensive check before they leavethe factory. The checklist pre-scribes a lengthy machine run onthe test bench to check function-ing capacity.

All test processes carried out atARBURG are documented. Thesereports clearly show test se-quences, test equipment, targetvalues, tolerances etc., so that thequality of the materials/parts usedcan be verified at any time.

In Lossburg, efforts are continu-ally being made to improve serviceprovision, so that the client is of-fered not only injection mouldingtechnology optimally tailored tohis needs, but also essential com-prehensive servicing. The com-pany philosophy shows this com-mitment, for “Quality allround“ isthe motto on which all activities ofthe company are based.

ISO

9001

QUA

LITY

ISO 9001: The right to expectquality

In order to make it clear, bothnationally and internationally, whatquality standards the company setsfor itself and its products, ARBURGwas certified for ISO 9001 as earlyas 1995. Within a period of twoyears, a relatively short period for acompany of the size of ARBURGemploying over 1600 peopleworldwide, the company was ableto specify, establish and documentthe ISO requirement criteria for alldepartments in such a way that apositive overall assessment couldbe given.

The certification process wasparticularly time consuming notleast because the production levelin the company, at over 60 %, isrelatively high. ARBURG was alsotested for its ability to fulfil theISO 9001 criteria. This standardcovers not only production butalso development, assembly andcustomer service.

The results are reflected not onlyin an opti-m i sa t ionof all com-pany proc-esses, butalso in in-creasing

15

A R B U R G F I N A N C E

nationally and internationally. Theteam, formed around MichaelGrandt, has developed the follow-ing basic points for a Euro strat-egy:

1. The DM will remain thehouse currency at ARBURG untilthe end of 2001, and the Euro willbe nominally handled in-house asanother foreign currency until thisdate. All existing in-house statis-tics will be drawn up on a DM ba-sis until then. After that time,transactions in terms of value willbe carried out only in Euros.

2. By the end of 2001 / begin-ning of 2002 all planning and cal-culation data and statistics mustbe capable of being convertedinto Euros “at the touch of a but-ton“.

“There will be no negativechanges for our customers,“stressed Michael Grandt. With theintroduction of the Euro, the trans-parency of the individual Euro-pean markets will be markedly in-creased as a result of the harmoni-sation of prices, and sales opportu-nities for German products will bedecisively improved.

Until now, the European inter-nal market has been decisivelycharacterised by the many differentcurrencies and the associatedconversion obstacles. After thenecessary EDP conversion proce-dures have been carried out(which, with ARBURG’s far-sighted planning, will not causeany great problems) these conver-sion problems on the Europeanmarket will disappear.

The German economy, with itsvery strong exports orientation,has in the past been particularlyaffected by exchange fluctuations“in sympathy“, and this currencyrisk has inevitably had a negativeeffect on the German market andthe investment mood.

ARBURG sees the conversion tothe Euro, with all its problems, asan opportunity to bring further im-provement to tried and tested pro-cedures and to further increase theaccuracy of planning and calcula-tion. The whole process is, inci-dentally, extremely cost-intensive:finance expert Grandt estimates thecosts required by the planning andorganisation of the conversion ataround DM 3 million.

Fit forFit forFit forFit forFit forthe Eurothe Eurothe Eurothe Eurothe EuroIn the matter of the currencyconversion from the DeutscheMark to the Euro, ARBURG isin the forefront once again:according to Michael Grandt,the Managing Director of Fi-nance, a project team hasbeen working for some timeto make ARBURG fit for theEuro.

The management want the com-pany to convert to the new all-Eu-ropean currency as soon as possi-ble. From January 1999, it will bepossible for invoices at ARBURGand all affected branches to bemade out in Euros also.

The introduction of the Eurohas far reaching consequences forthe economy and for consumers.In addition to important changesin the competitive situation,which will necessitate correspond-ing strategic realignments, theconversion will also have a tre-mendous effect on in-house proc-esses and will necessitate carefullythought out reorganisation meas-ures.

For a simple transfer of the com-pany sectors affected from today’sworld to tomorrow’s is not possi-ble, either for ARBURG or for anyother company. Far reachingchanges in processes and struc-tures are being undertaken to makeARBURG fit for the currencychangeover.

Complex company areas suchas accounting, EDP, contracts, in-surance, purchasing, despatchand marketing are affected by theforthcoming changes, and for thisreason a team of experts has beenformed at ARBURG to undertakethe work associated with thepreparation, co-ordination and im-plementation of all restructuringmeasures to be introduced, both

“However, if we make no prepa-ration for the introduction of theEuro, we risk far higher costs forconversion procedures which atthat stage will be compulsory, andalso possibly problems with regardto supplies and marketing, so thatin the worst possible case entiremarkets could break away,“ wasMichael Grandt’s comment onARBURG’s far-sighted attitude.

PCB assembly: Working onthe surface

SMSMSMSMSMDDDDD----- The advantages ofSMD technology

In addition to savingsin terms of time and cost,

the SMD process has thefollowing additional advan-

tages:■ Reliability; line resistance

and line capacitance remain al-most unchanged with SMT

housings; the use of ICs increasesthe reliability of the assemblygroups still further.■ Extension of automatic assem-bly, since connection wiring is notnecessary.■ SMT assembly machines are sig-nificantly cheaper and at the sametime more efficient.■ The boards can be up to 50 %smaller since SMDs are smaller.■ SMDs, being lighter, also mini-mise the mechanical load onboards and housings.■ The lack of connecting wiresand holes for these wires in theboard makes boards easier andcheaper to produce.■ Because of the reduction andshortening of conductor tracks,the boards are more compact andeasier to reproduce.■ Mixed assembly with wiredcomponents occurs only withelectro-mechanical components,but here also SMD-type plugs andrelays are sometimes available.

“Make or buy?“ is a questionwhich every company mustask itself today when consid-ering the manufacture of com-ponents for new products. If acompany decides in favour ofin-house production, theremust be clear advantages jus-tifying the company’s acquir-ing its own production equip-ment.

At ARBURG also, serious con-sideration has been given to theidea of having PCB assembly forALLROUNDER machine controlsprovided from outside the com-pany.

The reasons why the companyfinally decided to carry out thisprocedure as an “in-house“ solu-tion are clear: quality, flexibilityand economy were the main argu-

16

A R B U R G P R O D U C T I O N

ments for acquiring an SMDinsertion system.

The investment has beencharacterised by the economicproduction of small batch quanti-ties of optimum quality, minimumset-up times and short lead times.

Other considerations whichshould not be underestimatedwere (and still are) access to newdevelopments on the componentsmarket and support of developersthrough component manufactur-ers.

SMT: A definitionThe abbreviations “SMD“ and

“SMT“ stand for “Surface MountedDevice“ and “Surface MountedTechnology“. In this “surfacemounting“, the connecting wiresdo not have to be inserted throughthe soldering eyes of the PCB.

This methodhas proved itself aboveall because of the greater integra-tion and connection density andthe miniaturisation of the units.However, very much greater preci-sion and therefore better quality ofassembly groups can be achievedthrough SMT. In SMT, the compo-nents are simply placed on a PCBimprinted with solder paste. Thecomponents float in this solderpaste, which consists of fine glob-ules of diameter 30-50 µm, activa-tors, resins and fluxes, until theyare soldered in the reflow furnace.

18

ARBURG ECOLOGY

There are some companieswhich, simply by virtue of their lo-cation in tourist and leisure re-gions, have automatically had aspecial sense of responsibility to-wards the environment “from thecradle“. ARBURG is the best exam-ple of this type of responsiblecompany. The 75- year history ofthe company is characterised by itsefforts to keep the environmentaleffects of its production as few aspossible.

Respect for nature as a basisfor environmental protection

Production at the company,which is smoke-free, has providedfrom as early as the eighties an ex-emplary environmental conceptwhich is in particular based onavoidance of waste and careful useof resources, but also on reusingused materials and environmen-tally friendly waste disposal meth-ods.

The range of measures imple-mented extends from hiring clean-ing cloths and work clothing onthe production line and non-dis-posable towels in the companycloakrooms, to the environmen-tally friendly manufacture of com-plete ALLROUNDER components

on production systems which donot waste resources, and the opti-mum use of energy.

New working methodsbring advantages for theenvironment

By the use of plasma nitridingin the hardening process in thesurface technology sector, thehighly poisonous hardening saltswhich had to be disposed of asspecial waste at special sites are nolonger produced. About four tonsa year of these salts (mostly con-taining cyanide) are now nolonger a burden on the environ-ment as a result of the use of thisnew technology.

With the plasma nitriding sys-tem, environmental protection tar-gets for the next few years are al-ready being fulfilled. There is alsoan improvement – a double advan-tage – in the corrosion protectionof treated parts as a result of usingthis system. Components can nowbe included in this treatmentwhich have to be primarily pro-tected against corrosion butshould also be protected fromwear, so that the range of parts inthe nitriding furnaces has beenconsiderably extended.

The heat released during thenitriding process in the furnaces istransferred via a cooling jacket to awater circuit. A heat pump drawsthis heat from the water and con-veys it to the company heating sys-tem. In addition, ARBURG savesca. 40 % in processing energy bya specific system optimisationmeasure, i.e. thermal insulation.The introduction of surface layerhardening for dosage screws,which has been in operation sincethe second half of 1997, has had asimilar effect on processoptimisation and, at the same time,brings environmental advantages.

ARBURG was awarded the Etacertificate for introducing theplasma nitriding process. The Etacompetition is organised by theBaden-Württemberg Association ofPower Stations in association withEnergie-Versorgung Schwaben AGin recognition of companies con-tributing to environmental protec-tion by rationalising energy use.

Process control technology inARBURG buildings makeseffective use of availableenergy

As a logical consequence,measures to optimise capacity andtotal energy requirements in allsectors of the company are beingimplemented. Process controltechnology in the buildings of thecompany covers all productionand administrative departments.Heat is recovered both via heat

pumps (in the case of processingwaste heat) and also by means ofEconovent systems (ventilationsystems), while speed-controlleddrive systems make efficient use offurther energy saving potential. Anew bus-based lighting systemcontrols the light situation in pro-duction rooms, depending on ex-ternal and internal conditions. Thevariable light intensity uses re-sources without waste and thusfurther contributes to protection ofthe environment.

The new block-type thermalpower station (BHKW) has, sincethe beginning of 1997, ensurednot only optimum warm water pro-vision for the cleaning baths, butalso the supply of electricity intothe company’s own network (cf.also ARBURG today 7). TheBHKW’s electrical output of 290kW is sufficient to meet the needsof 150 average households.

The air-conditioning for themulti-purpose building housingthe company administration, andfor the central EDP and variousprocessing machines, is to be pro-vided by these systems in the me-dium term. As part of the necessaryreplacement of cooling systemscontaining CFCs by the so-calledabsorption type refrigerating ma-chines which operate on the prin-ciple of water evaporation, thesemeasures should be successivelyconcluded by 1999.

EnvironmentalEnvironmentalEnvironmentalEnvironmentalEnvironmentalprotection with aprotection with aprotection with aprotection with aprotection with asystemsystemsystemsystemsystem

19

Coating instead of paintingFor some years ARBURG has

been using a plastics coating sys-tem for the surface treatment ofmany ALLROUNDER components.Only a small percentage of ma-chine parts are still “wet“painted, and this has meant thatthere has been a considerable re-duction in the resulting paintwastage as a problem material.

A large proportion of themould machines in the metalworking sector are already pro-vided with cooling lubricantsthrough central systems, in whichthe lubricants are subjected to in-tensive treatment by filtering,cooling and removal of unwantedoil by suction. Regular analysesmake it possible for any changesin the cooling lubricant to be de-tected at an early stage. Servicelife of approximately two yearscan thus be achieved. A new cen-tral system is currently beingbrought into use, so that twoolder systems have been closeddown.

Avoidance of waste isfurther aided by separation

A further central aspect of re-cycling within the company isseparate plastics waste collec-tion. In the in-house injectionmoulding operation, it is possibleto collect waste plastic separatelyaccording to grade and colourand to send this waste plastic onfor efficient recycling.

In the administrative depart-ments of ARBURG, used paperand computer printouts are shred-ded and the resultant materialused as packaging in the dispatchdepartment, thus saving largequantities of wood shavings.

Special machines ensure thatany polystyrene packaging is re-duced to small chips and is re-turned to the dispatch circuit foruse as packaging.

ARBURG’s comprehensivepolicy of reusing materials andnot wasting resources is thus con-vincing by virtue of its productionmethods, which produce littlewaste and are environmentallyfriendly, and also by virtue of thesolutions adopted, which aresometimes unusual. The effortsbeing made by the company areillustrated by the projected certifi-cation of environmental manage-ment to ISO 14000, which is en-visaged for the middle of 1998.

. . INFO . . . INFO . . . INFO . . . INFO . . . INFO . . . INFO . . . INFO . . . INFO . . . INFO . . . INFO . . INFO . . . INFO . . . INFO . . . INFO . . . INFO . . . INFO . . . INFO . . . INFO . . . INFO . . . INFO . . INFO . . . INFO . . . INFO . . . INFO . . . INFO . . . INFO . . . INFO . . . INFO . . . INFO . . . INFO . . INFO . . . INFO . . . INFO . . . INFO . . . INFO . . . INFO . . . INFO . . . INFO . . . INFO . . . INFO . . INFO . . . INFO . . . INFO . . . INFO . . . INFO . . . INFO . . . INFO . . . INFO . . . INFO . . . INFO . . INFO . . . INFO . . . INFO . . . INFO . . . INFO . . . INFO . . . INFO . . . INFO . . . INFO . . . INFO . . .

Jürgen Schray (41, photo)has been appointed the new headof ARBURG Application Technol-ogy, having previously been headof the ARBURG Technical Centre.He comes with a sound back-ground for his future activities:after training and working as atoolmaker, he worked inARBURG’s design department.Following in-house training in ap-plication technology, he passedthe examination in plastics skillsin 1988 in Würzburg.

Antonio K. Schmidt (33) isthe new ARBURG Sales Managerfor optical discs (OD). His veryfirmly based experience in the ODsector was gained in the course ofvarious activities in the rapidlyexpanding market. After trainingas an electrician and a period as aservice technician, he completedhis Abitur and higher education inmanagerial economics, spendingsome time abroad in Brazil.

The new ARBURG OpticalDisc Laboratory has recently beenopening its doors: with its mod-ern equipment and expert serviceprovided by ARBURG OD special-ists, this institution will presentan attractive introductory centrefor interested parties and custom-ers in future.

On 26th March, in Madrid,ARBURG opened Spain’s secondARBURG Technology Centre(ATC) in response to considerablecustomer interest in the Iberianpeninsula.

On 7th April 14 trainees cel-ebrated the completion of theirtraining. Again the results wereexcellent: 9 candidates achievedan overall grade of 2.0 or aboveand received a gift of books.

Guests at the official Jubileeopening on 5th March were offi-cially the first to be able to ad-mire the luxurious newly refur-bished reception area of the par-ent company at Lossburg.

INFO

INFO

INFO

INFO

INFO

INFO

. . . . Notice board . . . . . .

17

guides the components along theshortest path, the assembly headstake the components out of thefeeders with vacuum suction cupsand place them in the solder pastein the correct position on theboard. A checking station subse-quently checks the boards for opti-mum transport position and fault-free assembly.

The assembled boards are thensent by conveyor to the reflowsoldering system and soldered in aprotective gas atmosphere. Theprotective gas atmosphere of theconvection furnace ensures lowoxidation levels and thus im-proved quality of connections,and consequently fewer failures,longer lasting boards and, ulti-mately, greater customer satisfac-tion. In comparison with the re-flow systems used previously,which operated with radiant heatonly, it is no longer necessary toadjust the solder profile.

The link up between ARBURGitem numbers, roll bar codes, andfeeder bar codes is carried out onthe PC in the form of an item num-bers-coding matching, which alsoprovides an effective method ofstock management for productionplanning.

SMT at ARBURGAfter five years of having these

devices produced externally andbeing able to acquire some experi-ence in this field, ARBURG has,since March 1997, had its ownSMT-based PCB production assem-bly in addition to conventionalboard insertion with wave solder-ing equipment. In particular, theboards for the SELOGICA machinecontrols are produced here. In thechoice of system components, itwas quality and flexibility of thesystem rather than assembly capac-ity which were the deciding fac-tors. The control electronics nowconsist of 90 % SMT assembledboards.

The SMT system is an in-linesystem consisting of a screenprinter, an assembly machine anda reflow soldering unit. The assem-bly machine is the main compo-nent of the system, and this is de-signed for precision, universal useand set-up time optimisation ratherthan for maximum speed, as is thecase with the system as a whole.The five feeders of the machineoperate with different film thick-nesses. The machine can take allrolls, so that assembly can takeplace in any order, since the feedercodes are read and recognised au-tomatically. This minimises set-uptimes and makes the production ofeven small batch quantities eco-nomically viable.

The assembly section consistsof two independent assemblyheads each having five vacuumneedles and an integrated adhe-sive dispensing head. In a se-quence which is constantly beingoptimised, and which always

Schedule expectations arefulfilled in practice

These words express in brief thepositive experience gained so farby the company with SMD tech-nology. High assembly groupquality and assembly group repro-ducibility go hand in hand withallround flexibility, which meansthat even batch quantities of 1 canbe achieved economically withoutany problems at all. Thus, for ex-ample, it was possible to run 0-se-ries for development purposes un-der production conditions.

Not least, servicing and mainte-nance are made easier by the newtechnology. Progressive develop-ment with the emphasis on modu-lar design has, together with theintroduction of SMD technology,enabled the number of PCBs to bereduced. Simply by the position-ing of a rotary switch, multiple useof a board in the SELOGICA can beachieved. Not only does this havepositive effects on equipment andthe provision of the spare partsservice, but also engineers havefewer problems on site with cus-tomers as regards replacement/in-stallation of SMT PCBs. Maximumflexibility with simultaneous useof rationalisation potential and

simplified, high quality produc-tion: for ARBURG these are suffi-cient reasons for the decision toacquire its own SMD system.

.....H

ongk

ong.

...20

A R B U R G S U B S I D I A R I E S

HONG KHONG KHONG KHONG KHONG KONG:ONG:ONG:ONG:ONG:An importantAn importantAn importantAn importantAn importantspringboarspringboarspringboarspringboarspringboardddddon the ron the ron the ron the ron the routeouteouteouteouteto Chinato Chinato Chinato Chinato ChinaAn important centre forARBURG’s strong represen-tation in the Asiatic Pacificarea as a whole is the HongKong branch, formed in1992. This branch providesservice to the plastics indus-try in Hong Kong, Macao andthe border regions of south-ern China.

Seven staff, together with theexperienced ARBURG branchmanager Sunny Poon, contributeto the great success of our branchin the former British crowncolony, the sovereign functions ofwhich were handed over to thePeople’s Republic of China in ac-cordance with contractual agree-ments in the course of last year.Two employees are responsiblefor sales and five more for main-tenance and customer service.

The branch has its own spareparts store which ensures effi-cient and rapid delivery of sup-plies to customers in the region.An interesting point is that, onthe basis of production reloca-tion, 50 % of all machines sold bythe Hong Kong branch are alreadysold over the border to southernChina.

The Asiatic region has, how-ever, always been of special inter-est to ARBURG because of thestrength of the local economy andgrowth rates. Even the currentwide fluctuations in the economicsituation do not in principle alterARBURG’s general long term atti-tude towards the region as awhole.

Before ARBURG set up its ownbranch in Hong Kong, its interestsin the region were represented bythe trading company Melchers,and ARBURG was thus able tocontinue its activities in HongKong after setting up the branchwithout losing any ground. Evenat this early stage, further loca-tions in China were planned, al-though the regional settlementdetails were not yet clear.

sential basic activities has beenundertaken both by the HongKong branch and the branch of-fice in Shanghai. These are essen-tial prerequisites for ARBURG’sfuture ability to respond to theenormous consumer potential ofChina, which is characterisedabove all by increased quality re-quirements on production equip-ment and products.

At the moment, however,there are still many bureaucraticand market regulatory hurdles inthe way of contact with China.Thus, for example, very high cus-toms duties and rates of valueadded tax on machinery importscurrently have a negative effecton the build up of business.Within the context of its „smallsteps“ strategy, ARBURG is en-deavouring to overcome these ob-stacles and to continue to extendits business contacts with Chinafrom its bases in Hong Kong andShanghai. Quite simply, custom-ers who are active internationallyexpect a presence of this kindfrom an international marketleader in engineering construc-tion in such an important market.

80 % of the market potential,which has been estimated at be-tween 15,000 and 25,000 ma-chines annually, is divided be-tween ca. 70 Chinese companies,the technical standards beingvery much below those of westernmachinery producers. In these cir-cumstances also, ARBURG seesgreat opportunities in three targetareas: joint ventures, subsidiariesof international companies withtheir own production in Chinaand, in future, increasingly alsowith Chinese partners. CD pro-duction in China has been shownto be particularly capable of ex-pansion, and this is likely to re-main of interest for the worldmarket (producers and consum-ers) in the medium term also.

Branch office in ShanghaiOn 1st July 1997, the company

took the next step in strengthen-ing its market presence: since thisdate, ARBURG has had its ownbranch office in the Shanghai Ger-man Centre. Before this, from1989 onwards, a service techni-cian represented ARBURG on sitein Shanghai as part of a co-opera-tion agreement. Since the open-ing of the office, which is subordi-nate to the Hong Kong branch,three staff have been responsiblefor sales, service and administra-tion. From Shanghai, service isprovided for the whole extendedregion, the Yangtse Delta and theindustrial areas of central China.

Special marketrequirements

The Chinese market differs inmany respects from the other Asi-atic markets, and therefore re-quires special treatment andgreat judgement. Language, men-tality and a different service cul-ture affect contact and communi-cation with individual Chinesecustomers – a demanding task,with which our Hong Kong branchunder the management of SunnyPoon seems equipped to deal ex-tremely successfully.

It was the increasing demandfrom long-standing European andAmerican customers for a serviceprovision for their new projects inChina which had a not inconsider-able influence on ARBURG’s deci-sion to enter into this type ofcommitment in the area.

ARBURG’s carefully thoughtout concept of taking small stepsin its expansion on the Chinesemarket is now in full swing. A sys-tematic market operation with es-