Sumitomo (SHI) Demag exits hydraulic market   

Sumitomo (SHI) Demag plans to discontinue production of hydraulic injection molding machines in an effort to make the division more profitable. 

The company said it will focus on high-end, all-electric molding machines in response to increasing demand for all-electric presses.  

The plastics machinery segment was listed as an “underperforming business” in parent company Sumitomo Heavy Industries’ Medium-Term Management Plan 2026. 

The report said its plastics machinery business has suffered from sluggish machinery demand everywhere except China and shrinkage in the European market caused primarily by a slowdown in the automotive industry. It listed as future risks the impact of U.S. tariffs, intensifying price competition and increased competition in the European market from Asian brands. 

The phase-out has already started and will continue into 2026, according to a timeline in the report. It also will discontinue about 40 percent of current injection molding machine models. An unspecified number of jobs will be eliminated.