New Machines Put Focus on European Markets
Doosan unveils a radical new machine design, introduces large machines and aims to double German sales within five years. VP Jaeyoon Lee details the strategy.
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Which are the most important new products for Doosan at the EMO Hannover 2013?
Jaeyoon Lee: At the Doosan Infracore Machine Tools Fair held in May, we unveiled the Puma SMX, which are being launched in the European markets at the EMO. Featuring a new design, the Puma SMX is a next-generation multitasking machine tool, comprising a turning centre and a machining centre, that boasts enhanced productivity and work convenience. Also, with the new exteriors, the Puma SMX delivers a stronger image and enhanced user-convenience. It is an important model because it represents Doosan’s product development direction based on customer and market needs. Furthermore, we have developed the DNM200/5AX and the NHP8000 to target the aerospace industry and the DBC130 II to target the oil and gas markets. We will also develop our compact Y-axis machine, the Lynx 220LSY, and expand our share of the ‘multitasking equipment’ market.
Why did you decide to change your machine design with this new product introduction?
Lee: Since renewing our designs in 2007, we have continued our pursuit of technology, quality and service innovations, thereby enhancing our profile. Our new designs pursue a stable, solid overall appearance and user-friendly ergonomic design features. Our high-end series designs will reflect customer needs and be further advanced. Our general base series designs will pursue practicality and satisfy customer needs while offering differentiated value. For our rollout plans, we will apply the new design to new models beginning in the second half of 2013, and gradually expand the new design. In 2015, we will apply the new design to all our models.
How many machines does Doosan plan to sell in Germany this year?
Lee: We posted sales of over €30 million in the German market in 2008, and expect to renew our 2008 German sales peak this year, too. Our products have been highly acclaimed for their quality, reliability, and competitive prices by our German customers. We will bolster our sales capabilities in southern Germany, the area with the largest demand, explore major customers in the automobile industry, and continue to expand our product diversity. We aim to more than double our sales within five years.
What are your targets for the European markets?
Lee: Europe accounts for a 25% share of the total global market and includes such advanced markets as Germany and Italy, and emerging markets such as Eastern Europe and Russia. As such, Europe is a highly attractive market. We have experienced some difficulties in Europe due to the ongoing financial crisis here. But we have continued to supply new products, and have bolstered our marketing and sales networks, thus maintaining our growth. As such, we expect to post over €300 million in sales this year, surpassing our 2008 sales peak. Important markets include Italy and the UK, which have the top market shares, Germany and France, both of which have big sales potential, and emerging markets with great growth potential such as Eastern Europe, Russia and Turkey.
What is your plan with large machines in Europe?
Lee: Our large machines are developed to suit the needs of European customers. We also offer consulting and services through our expert engineers, and we deliver fast. For example, in line with the needs of the European market, we have developed and upgraded large vertical turning centres (VTS), tailoring them for the aerospace, oil and gas, and large machining job shop markets. Based on the needs of our European customers, we will unveil machines equipped with Siemens’s controllers at EMO. In addition, we have constructed multitasking double-column machining centers for Europe and have beefed up the large-machine application engineers.
Will you produce in Europe?
Lee: We have no plans as yet to construct any European plants, but we will review the possibility according to the market situation.
What are your overall production plans?
Lee: Our projected production capacity of 23,000 machines in 2016 includes three Korean plants and one Chinese plant. In the emerging markets, we will bolster our competitiveness in terms of performance, quality and price, and grow accordingly. In Europe and Korea, we will unveil high-value-added products, and provide support solutions, including system solutions, training, and engineering support.
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