Sumitomo Demag to close US machinery plant

About 40 people will be laid off at the plant, located about 60 miles north of Atlanta, according to Jim Mitchell, executive vice president of Sumitomo Demag in North America. Sumitomo Demag announced the news 22 June at NPE2009.

The Japan-based Sumitomo Heavy Industries built the factory in 1998, 10 years before its acquisition of Demag, to get a foothold in the US press assembly market.

The combined Japanese and German machinery maker has been making changes to its manufacturing base since the buyout deal last year. On 29May, officials announced a €50m investment into the company’s plants in Wiehe and Schwaig, Germany. Sumitomo Demag is turning the small-machinery plant in Wiehe into a major manufacturing base for all-electric injection molding machines.

Over the years, Sumitomo has expanded the range of machines assembled in its US plant in Pendergrass, but the Georgia operation did not make all model sizes.

“We have always stocked machines and brought machines in to meet customer needs. That will not change,” Mitchell said.

Sumitomo Demag now will supply North American customers with all-electric presses built in Wiehe and Chiba, he said.

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