LS Mtron’s acquisition of DJA PMD,

A new opportunity to expand the base in the US market and leap forward!

The recent acquisition of DJA PMD(Plastic Machinery Division) by LS Mtron Injection Molding Machine Division(Hereafter “LS Mtron”) is drawing attention. In response to the continued sales increase in the U.S. and the trend of expanding global investment amid the economic recovery, the company held the signing ceremony for the first time with DJA during the NPE2018(one of the three major global plastics exhibitions), and since their first meeting, they have kept relationship as a partner.

Through this signing ceremony, LS Mtron expects that it will be able to achieve annual sales of KRW 50 billion to KRW 100 billion in North America.

■ They acquire DJA PMD in response to expanding global investment from the recovery of the US economy

At 8:00 a.m.(KST) on April 14(Wednesday), LS Mtron Division Leader Chan-Sung Park, LS Mtron Sales Manager Jae-Nam Hyun, DJA’s MR. Ted Haykudo and DJA’s Mr. Peter Gardner joined the online signing ceremony to acquire DJA’s PMD(Plastic Machinery Division, hereinafter “DJA”) by LS Mtron Injection Molding Machine Division.

LS Mtron's Injection Molding Machine Division said they held this signing ceremony to acquire DJA’s Daiichi Jitsugyo(America), Inc. PMD(Plastic Machinery Division), which was the U.S distributor, in order to cope with the continued sales increase in the US market and the expanding global investment amid the economic recovery in the U.S.

DJA met LS Mtron for the first time during the NPE2018, and since then, it has shown steady growth of sales in North America as a partner.

In the future, LS Mtron's U.S. sales division will be divided into the Atlanta division where the exiting U.S. Corporation is located, and the Chicago division that has been acquired this time. Therefore, it is expected not only to increase the sales of existing Korean clients who have entered the U.S., but also to move a step closer to local clients in the traditional rust belt area of the U.S. 

■ Expected to achieve annual sales of 100 billion won in North America

At the signing ceremony, an official at LS Mtron said “We have been conducting business in the US until now, focusing on medium- and large-sized hydraulic injection molding machines and Korean clients. But through this signing ceremony, we have laid a solid business foundation to extending its business into electric molding machines and local clients, and this is an opportunity to take a leap forward and achieve infinite growth.” Also, he said “We will make hard effort to achieve remarkable results by investing heavily in the US business, so please watch us with lots of attention.” 

“With this acquisition, we hope to achieve 100 billion won of annual sales in North America, whose sales is around 50 billion won, up 100% in the future”, he added.

Meanwhile, according to expert industry market research IBIS World, the market size of the US plastics manufacturing industry in 2020 is estimated at 104.3 billion dollars. The plastics manufacturing industry, which has recorded an average annual growth rate of 0.9% for five years since 2015, is expected to record an annual growth rate of 1.4% by 2023, with the rise of industrial products and manufactured products.

In particular, experts predict that the automotive plastics market will grow to about $68.58 billion by 2025 because the use of plastics in parts is on the rise due to the lightweight trend of the automobile industry, the introduction of new technologies, and design flexibility. In addition, after the pandemic of COVID-19, there is the rapidly growing demand for general-purpose plastics(medical plastic films, acrylic plates for screens, etc.) as well as engineering plastics.

EDITER : LEE MYEONG  KYU