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North American leader in wood-plastic composites
Milacron ready to springboard into global extrusion markets,
leveraging technology leadership and worldwide infrastructure
North American leader in wood-plastic composites
to again offer complete product line worldwide
October 2004 – With the year-end expiration nearing on its non-compete agreement in the extrusion business outside North America, Milacron Inc. (NYSE: MZ) is laying the groundwork to reintroduce its advanced extrusion systems and technologies to overseas markets starting in 2005. The company plans to leverage its North American leadership positions in wood-plastic composite extrusion and replacement screws and barrels, along with its well established worldwide manufacturing, sales and service.
"We used the five-year hiatus to consolidate our North American position as the number-one technology supplier in the fastest-growing segment of the extrusion market – wood-fiber plastic composites,” said Jim Abbiati, president of Milacron's applied processing businesses. “And we've continued to strengthen all our process technology, as well as our entire line of parallel and conical twins, and single-screw extruders. Applications for wood-plastic composites are exploding for several reasons. The material itself is cosmetically appealing and, compared to wood, essentially maintenance-free. Furthermore, it's a ‘green’ product because a good portion is sawdust that would have ended up in landfills. Wood-plastic is already well established in markets such as decking, and it's now catching on for applications such as siding, marine products, window frames and many others."
Over the past five years, Cincinnati Milacron twin-screw extrusion systems have gained a strong technology lead with the addition of three new sizes in the conical line, which now ranges from 35 mm to a dual-vented 96 mm machine – the largest conical in the world, targeted to wood composite. The same holds true for parallel twin machines, where the Cincinnati Milacron line now includes 93 mm, 115 mm, 140 mm, and 172 mm sizes, with two L/D options (26 and 33:1) for all models.
"Rounded out by our single-screw line, we have leading technology for nearly every extrusion discipline, including pipe, profile, sheet, siding, wood composite, tubing and co-extrusion applications, to name just a few,” Abbiati said.
In addition to being a leading supplier of new equipment, Milacron is one of North America’s largest rebuilders and manufacturers of parallel and conical twin screws, the heart of the extrusion system. “We invested heavily to become the supplier of choice for replacement screws and barrels for all brands of extruders,” stressed Abbiati. “In so doing, we have earned the trust of North American processors with our advanced technology in this area, and we have enhanced our market share for new machinery as well. We intend to rapidly transfer this successful business model and our respected name to regions we've been restricted from for the last five years.”
Milacron will rely on its existing global infrastructure to quickly penetrate overseas markets for extruders and replacement screws and barrels. “We have production facilities in Germany, Italy, Czech Republic and India," Abbiati pointed out. "We’re currently ramping up for machine production in China and we have sales and service representatives around the world, so we will hardly be starting from scratch. We are in an exceptionally strong position at home, with the infrastructure for a rapid launch of our products and services abroad.”
At the end of 1999, while retaining its fast-growing North American extrusion business, Milacron sold its European-based extrusion business to SMS Aktiengesellschaft and agreed not to compete in extrusion outside North America for five years.
First incorporated in 1884, Milacron is a leading global supplier to the plastics processing industry with technologies and aftermarket services and support for the three most common methods of processing plastics: injection molding, extrusion and blow molding. Also a leading global supplier of industrial fluids, Milacron has about 3,500 employees and major manufacturing facilities in North America, Europe and Asia. For further information, visit www.milacron.com or call the toll-free investor line: 800-909-MILA (800-909-6452).
