Makino reports on significant growth in Europe and Asia

Japanese machine tool manufacturer Makino Milling Machine Co., Ltd. reports on a financial year of stable global turnover. Major growth in the export business compensated for a weakened demand in the domestic market. Despite vast political uncertainties around the world, record-high turnover levels were achieved in the Americas, Europe and Asia. Orders from Europe were up by more than 70% with major contributions from the aerospace and industrial components sectors. In the year of its 80th anniversary, Makino will launch numerous new technologies at the EMO in Hannover where a wide spectrum of 5-axis, automation and Industry 4.0 solutions will be exhibited.

Financial Year 2016

At Makino’s press conference in Kirchheim unter Teck, Germany, on 27th June, Dr. P. Anders Ingemarsson, President & CEO of Makino Europe, reported on global consolidated turnover of Yen 153,641 million, -5.1% compared to last year (+1.7% in local currencies) for the Financial Year 2016, ending on 31st March 2017. Although in Japan, the Group suffered from a decline in turnover by -7.9%, new record levels were achieved in all other regions, following growth rates in the Americas by 10.3%, Europe by 8.5% and Asia (excluding Japan) by 4.2%, compared to last year (in local currencies). The Group Operating Income reached Yen 9,660 million, the Group Net Income Yen 7,596 million.

Positive development in Europe

Orders in Europe saw an increase of more than 70% owing to large contracts from the aerospace industry and significant improvements in the industrial com-ponents business. Particularly positive developments were seen in France, Italy, Spain and Poland. “The investments made in expanding staff and infrastructure are paying off and the outlook for the Financial Year 2017 is promising”, Inge-marsson pointed out. Favourable market conditions accompanied by the launch of a wide range of new technologies at EMO 2017 in September will fuel the boost into the second half of this financial year.

Sustained growth in China and India

In Japan, the decreased business is mainly attributed to the development in the die and mould market. In addition, there has been a general hesitation in capital expenditures throughout the year. In the present financial year, increased in-vestments are expected, in particular in the automotive industry where many new models will be introduced. Moreover, additional volume is expected to be generated following Makino’s massive investments in new machining centres for automotive die and mould applications. Last January, Makino opened a new technology centre in Nagoya to further strengthen its local technical support ac-tivities in the region.

The positive development in the rest of Asia mainly emanates from the production machinery market. Major progress in orders was achieved in China, where growing opportunities emanated from the IT and automotive markets, and in India, where the business related to two- and four-wheel vehicles as well as agriculture applications increased. The trends in China and India are expected to continue during the present financial year. In addition, enhanced functionality of smart phones will lead to an increased demand on high-end machine tools. To tackle the enhanced need for machining centres in the Asian region, Makino is currently making a major investment to expand the production capacity in Singapore.

US consumables business merging with Global EDM Supplies

Earlier this year, Makino Inc. in the US implemented two important steps in strengthening its position in North America: In January, a new technology centre was opened in Monterrey, Mexico; later on, Makino announced its merger with EDM consumables supplier Global EDM Supplies. The merger will support the expansion of Makino’s SST Consumables business, providing customers with broader geographic reach, greater product diversity and increased accessibility to experienced technical services and support.

Although the US operations saw a significant increase in turnover compared to the Financial Year 2015, reaching a new all-time-high, orders were behind last year’s result due to a decline in the automotive market and delays of large orders in the aerospace industry. In view of the positive prospects in the semiconductor industry and the postponed opportunities in aerospace, orders are expected to exceed past years’ levels.

Makino’s 80th anniversary: Loaded with new technologies

In its 80th anniversary year, Makino looks at the future with a clear focus on cutting-edge innovative technologies, offering dedicated solutions to customers from a large variety of industries. “At EMO in September, Makino will launch a wide spectrum of new technologies, featuring horizontal and vertical 5-axis and EDM solutions for industrial components, die and mould as well as aerospace applications, all prepared for automation and Industry 4.0”, Ingemarsson said. “We will showcase a brand new, flexible yet rigid, horizontal 5-axis machine for parts production, highly dynamic vertical 5-axis machines for impeller produc-tion, new vertical 5-axis machining centres for high-speed processing of moulds for automotive parts and a new generation EDMs, just to mention a few exam-ples.”

For further information please contact:
Andreas Walbert
Head of Marketing and Product Planning
Phone: +49 7021 503-201
E-Mail: This email address is being protected from spambots. You need JavaScript enabled to view it.
Website: www.makino.eu

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