BARTLETT, Ill.—Rep Corp. and its global affiliates are offering rubber and thermoplastic elastomer molding companies a credit on new injection presses if they'll agree to scrap their older machines.
The program will give credit of up to $40,000—or 30,000 euros in Europe—on any of Rep's machines within its G9, RTIP or RTAXS injection press lines. The amount of the credit depends on the size and type of press being purchased and the older molding machine's size, condition and age, said Rep Corp. President Tim Graham.
The machines don't have to be an exact match in size. Graham said a customer could scrap a 150-ton machine and buy a 400-ton press and the credit would be calculated with those parameters.
The offer also precludes any already highly discounted machines.
While 40-year-old Rep Corp. wants to sell more new presses through its offering, it also wants to generate interest in reducing the inventory of older machines. While they can last 30 to 40 years, they simply don't have the technology, controls and speed of more recently designed products, Graham said.
“A slew of machines were sold in the mid to late '70s, and they tend to go from one company to another,” he said. “We'd like to entice them to scrap those, take them off the market and buy something new.”
In some cases, molders keep their older presses at their plants, even if they're not using them, Graham said. The rubber industry can be slow-moving, he said, and Rep is hoping to create interest in both upgrading production and getting something back for a veteran machine.
Other benefits of replacing old units with new ones include less energy consumption, lower maintenance costs, reduced risks of shutdowns or molding system failures, better molding options, improved ergonomics and faster payback for the customer, Graham said.
Rep Corp.—whose global parent, Rep International, is based in France—requires the molder to validate the scrapping of its old machine and then the credit toward a new machine can be applied. New presses can be anywhere from $400,000 for larger standard models down to $100,000 for smaller ones, with options affecting the final price, he said.
The credit program is running through July 31, though Graham said if it is successful the company may keep it in place longer. Rep announced the implementation of the program March 16.
The rubber injection molding machine business is tied heavily to the automotive sector, and the reduction of vehicle manufacturing in the U.S. has hurt the molding segment, Graham said. Global markets such as China and South America are improving, but at the expense of North America.
“We see the market improving, but likely it will never be what it once was,” he said.
In other Rep news, the company recently unveiled its redesigned Web site at www.repinjection.com.
The site details the firm's full complement of injection molding machines; gives information on molding technologies pioneered by Rep and a company history; lists and details the firm's services; gives current news; provides links to the product range of presses made by Rep's Taiwanese partner Tung Yu Hydraulic Machinery Co. Ltd.; and offers downloads and back issues of the company magazine, Rep News.