The following is an interview article by Chan-Sung Park, Injection Molding Machine Division Leader of LS Mtron, published in the Korean magazine "HANDLER".

“We are confident to dominate a new market in the post-corona era through the diversification of customized products”

- Actively try to expand a new market in the post-corona era through the diversification of customized products

The COVID-19 pandemic originated with a cluster of mysterious, suspected pneumonia cases in the city of Wuhan, the capital of Hubei, China. The disease outbreak has caused tremendous ‘uncertainties’ throughout the year. However, even in the midst of the COVID-19 crisis, Korea received nationwide attention by successfully continuing its quarantine and economic activities without blocking borders and areas.

In the ‘People’ section of a New Year issue, we met Chan-Sung Park, Injection Molding Machine Division Leader of LS Mtron, a leading injection molding machine maker in Korea. We talked about the strategy to overcome the risk from coronavirus, a new year"s business plan, and the prospects in the injection molding machine market both at home and abroad in the "Post-Corona Era".

LS Mtron’s Injection Molding Machine Division Leader, Chan-Sung Park

First of all, looking back on the year of 2020, how can you evaluate the LS Mtron injection system business?

In conclusion, the injection molding machine business was not bad overall last year. From February to July, it was quite tough for China Corporation due to the influence of COVID-19, but the recovery pace has quickened since then, and the operation capacity in automotive and home appliances has risen to around 80%. In particular, many changes have occurred in the way of life since the pandemic, and home appliances that respond to it have shown a lot of growth benefitting from it.

In addition, many countries, including the United States and European countries closed borders, but Korea did not block its economy and trade based on K-quarantine, thereby creating a new market demand in the fields of video and home appliances and providing many opportunities.

COVID-19 has strengthened protectionism to protect domestic industries and jobs and continued deglobalization, including the reorganization of the global supply chain centered on the country and regions, the spread of localization and regionalism in the production and supply chain, and the deterioration of human exchange due to strengthening immigration control. Meanwhile, the demand for the US market has increased dramatically as the US government quickly implemented various support measures, so we could get an opportunity.

Despite the severe impact of COVID-19 at home and abroad, we were able to maintain an increase in sales last year, and I think that the market outlook for this year will be also positive.

Why do you expect the market to grow more than last year?

All economic indicators show that the economy for 2021 will be better than 2020. We are seeing a good market outlook for 2021 as we obtained many orders for injection molding machine at the end of 2020.

On the domestic side, experts say that there will be the demand for Samsung Electronics’ white goods will increase, so we are planning new investment to raise the production capacity of Gwangju Plant.

On international markets, the global market will recover due to economic recovery and base effects, as the border closures caused by COVID-19 start to be lifted in 2021. Accordingly, the injection molding machine market is expected to expand. Especially, we have high expectations because as I mentioned earlier, the orders in the Chinese market are very good in the fourth quarter of 2020, as well as great performance in the US market. Besides, we are looking forward to the expansion of the injection molding machine market because our injection molding machine clients are extending their business abroad along with their principal contractors.

LS Mtron is also taking the lead in communication with clients blocked by COVID-19. The photo shows a demonstration of the new product at LS Mtron’s China Corporation held in August

Please explain in detail the new product “a low-bed vertical injection molding machine WIZ-VR,” which was unveiled at the end of last year and will be actively marketed from this year.

As the production of insert molding products has been increasing recently, the vertical injection molding machine market is showing an increase worldwide. In this situation, ‘a low-bed vertical injection molding machine WIZ-VR’ was born after four months of development in 2020 under the slogan ‘Energy Saving Hybrid Vertical IMM’.

"WIZ-VR", which is optimized for multi-cavity insert molding, is a low-bed vertical injection molding machine to produce insert-molded special products, and its mechanical structure required for a variety of molding fields is one of the features. In particular, WIZ-VR is characterized by not only the safety of the operator, but also convenience, work efficiency, high reproducibility, high responsiveness, and ultra-precise stability control. In addition, WIZ-VR"s hybrid system has a wide range of strengths, such as high reproducibility, high responsiveness, and ultra-precise stable control, as well as cooling water saving and maintenance cost reduction, heat reduction of hydraulic system, and improvement of injection holding pressure control performance. It is a product that can enhance customer convenience and actively respond to Smart Factory by applying Keba Controller.

This product was developed through the JDM (Joint Developing Manufacturer) between LS Mtron and DONGSHIN HYDRAULICS, which has accumulated know-how and manufacturing capability by focusing only one item, injection molding machines for half a century. LS Mtron suggested to DONGSHIN HYDRAULICS that "let"s develop together’ in order to find a win-win model, while avoiding cannibalization in a difficult situation like these days.

A meaningful model was completed, since DONGSHIN HYDRAULICS takes on manufacturing and LS Mtron takes charge of sales. If we supply it to our clients who require both vertical and horizontal injection molding machines at once and if we increase the responsiveness of services, we can expect to get good results.

In the vertical injection molding machine market, 150 to 250 tons are the main models. So, we tried to develop these models last year, so we were able to achieve good results. We have a plan to develop large models of 400 tons or more in earnest this year.

We are expecting 20~30% market share of the domestic vertical injection molding machine market this year.

Low-bed Vertical Injection Molding Machine WIZ-VR

Please analyze what you think is the strength of LS Mtron in the vertical injection molding machine market.

LS Mtron develops and supplies vertical injection molding machines with a variety of product lines, including small, medium and large hydraulic hybrid, electric, and two color/dissimilar injection molding machines. That’s why the burden of investment risk is much less.

In addition, most of the users for vertical injection molding machines are the vendors of companies such as batteries and automobiles. They have to manufacture and supply with the approved production facilities after their principal contractors receive the approval and rating test for the production facilities. Therefore, this market is quite difficult to access. However, in the case of the low-bed vertical injection molding machine WIZ-VR, it may produce better results than the market thought, since the product was developed with the responsibility as a large company and specialized technology.

Injection molding machine makers around the world including Europe and Japan have preoccupied the market and raised brand awareness through joint development with global conglomerates. I think that it is worth competing if we develop jointly with principal contractors through up-front investments and expand the market.

We have a full lineup of electric injection molding machines and the ONE* Series, which is recognized in the premium market, so we can take the risk of pre-investment development. I think there will be good results if we try to increase brand awareness and expand the market by making a major investment in R&D.

LS Mtron"s Injection Molding Machine Products

LS Mtron"s Global Network

You said you are expecting a sales increase in the overseas market in 2021. Lastly, please tell me about the strategy for overseas markets.

LS Mtron’s injection molding machine is the history of industry in Korea. We are doing our best for customer’s success with our world class quality and technology and striving to become a "global No. 1 leader’ in the field of industrial machinery and high-tech parts.

LS Mtron is constantly pursuing changes and innovation with a progressive spirit of challenge and enthusiasm despite a crisis. We keep challenging to pioneer a new niche market in spite of the prolonged difficulties of COVID-19.

We are planning to actively target overseas markets based on our corporations and branches around the world. In particular, LS Mtron"s injection molding machine was well evaluated in the US market last year. Accordingly, we plan to expand investment in resources such as personnel and warehouses in sales, service, and inventory sectors. We have no special competitiveness. We will just strengthen our agents and distributors’ ability to respond to customers so that we can maintain the good relationships that we have with clients.

In 2021, we expect a big increase in both domestic and overseas markets, and we are looking forward to achieving the goal of growth in total revenues. LS Mtron will continue to change and innovate, and we are committed to helping our clients to create values through constant technical development based on the spirit of challenge and passion.

■ Edit: plastic handler(www.ihandler.co.kr)