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    Demand for used PET equipment keeps rising



    Sales figures on the used PET machinery sector have been consistently growing over the last few years; more so than in other sectors, such as glass or cans packaging. Demand nearly doubled in 2009 compared to the previous year and has shown continued growth in 2010, according to specialist company MachinePoint Consultants SL.

    Founded in 1999 and based in Valladolid, Spain, it is a significant trader of used plastic and beverage machinery in the world. Demand has been particularly strong during the two years of recession. Cesar Rodriguez, founder & managing partner, says that the growth in sales means that the PET machinery niche segment has continued to invest in capital equipment, which frees up previously-owned machines for processors who are working within tight budgets but still need good quality equipment.

    The key drivers contributing to the growth of the used-equipment sector include innovations and new technologies, coupled with high output machines and lower power consumption. Combining these criteria with new ancillary technologies and complementary services and products raise cost-effectiveness and attractions in the market. As a result, MachinePoint expects a pattern of stable growth in the demand for used PET equipment in upcoming years, in parallel with growth in demand for new machinery, especially in Latin America and Asia. The market is likely to see further internationalization.

    Europe: largest market but international growth is strong

    The overwhelming majority (85%) of the total of used plastics equipment MachinePoint sells is to customers in Europe but it sources around half of its supplies come from elsewhere in the world. This is not right, MP sells 60% of their machines outside Europe!
    What it is located in Europe is our sourcing, 85% of all our plastics and beverage used machines are sourced in Europe
    In PET market the difference is that sourcing is done more globally, 50% of PET used machines are sourced outside Europe, and only 20% sold in Europe. Means the PET market more international than the rest.
    The PET beverage segment is more global, with only around half of equipment sourced from Europe while only 20% are sold in the EU. Whatever the market, the company says that distance seems to be of little concern when customers are searching for good quality used PET equipment.

    MachinePoint expects the market balance to keep shifting. The growth in emerging regions such as Latin America, west and southern Africa, the Middle East, India and south-east Asia leads to a fallback in Europe’s position. Latin America is particularly strong; companies appear to have already completely recovered from the recession and they are fully focusing on their future expansion plans.

    The African market has challenges with telecommunications, which impacts on MachinePoint’s business. Projects with African companies, especially in the north and west, are longer-term and require 24 months, on average, to be closed successfully. However, the regular flow of important enquiries means that Africa is in the top three markets for its PET machinery activities.

    MachinePoint is investing a lot in India, where it has a local sales office. Demand for good technology at competitive prices is strong in both India and Pakistan. South-east Asia is also an active market, which the company serves in collaboration with local organizations.

    The CIS area (Russia and neighboring republics) declined from very busy prior to 2008 to low levels during the recession period. Rodriguez said that there are indications of recovery appearing now and a return to full activity is expected by mid-2011. The company also has a strong presence in Poland, eastern Europe’s largest market.

    Top brands sell best

    MachinePoint has a strategy of working only with top brands in each of its market sectors. The reason for this is that such equipment retains the residual value necessary to make them interesting for the used market. Furthermore, commercial operations on a global scale require a logistical infrastructure, which means that only equipment and brands with appropriate levels of infrastructure will be cost-effective for the used machinery business.

    In the PET beverage packaging market, MachinePoint trades preform, caps and closure systems; blow-moulding machines; filling lines for water, CSD and non-carbonated drinks; and carton packaging lines for juices and dairy products. The company says that Husky is the preferred brand for used injection moulding machinery. Its particular attributes are: leading position in the original equipment market; good shelf life; high residual value; and very strong after-sales service worldwide, which makes the required levels of maintenance practical. Most of the Husky equipment sold by MachinePoint is audited by Husky itself, which helps with buyer confidence and sense of security. MachinePoint is also able to offer financing through its Finance division, which operates as a separate company dedicated to providing solutions for industrial equipment purchase.

    Second only to Husky in used injection moulding machinery is the PET-LINE production system from Netstal. The leading brands (by demand) in used blow- and stretch blow-moulding equipment are Sidel, Krones, SIPA, SIDE, Nissei and Aoki – with local variations. IBM Nissei machines are popular in India; local technical services and OEM presence are significant factors influencing demand for used machinery in local markets.

    Key points

    The key to make it smoothly for buyers and sellers of used machinery, is to count with the right assessment during the whole process. MachinePoint team does consultative selling, where customers are asses on every technical, legal and logistic issue along the whole process.

    MachinePoint says that prospective purchasers need to bear certain important points in mind when buying used PET machinery. First, they need to ensure they have access to qualified engineering and maintenance providers in their region. The equipment has to be complemented by an assured supply of reliable and cost-efficient ancillary products. It is vital to have all the manuals and instructions. Dismantling, loading and packaging the machine should be personally supervised, in order to make certain that the equipment is not damaged during the process. MachinePoint is prepared to look after logistics tasks, such as arranging the right transport, insurances, legal issues, export-import docs, etc.

    Sellers, too, have to be aware of the issues involved. The process can be complex and time-consuming; operators themselves are unlikely to have the experience and expertise in-house, which is where a company like MachinePoint can be invaluable, in providing access to an international network of lawyers technicians, machine manufacturers, forwarders, riggers, brokers, dealers, agents and auctioneers. It bases its reputation on selecting the best machinery and providing the best available engineering and logistics service to its customers. It can deal with collection, legal agreements, dismantling, packaging, loading, transportation, customs formalities, commissioning or repairing the machinery.

    International scope

    MachinePoint Group is an internationally-operating organization that is dedicated to providing what it calls ‘smart equipment solutions’ to selected niche markets. MachinePoint Used Machinery, as its name indicates, is the division dedicated to the trading of used machinery. It has a team over 40 people and a well-established international presence, which enables it to make international trading of used machinery easier and more secure for both buyers and sellers. It has sold machines in 85 different countries around the world, has experience and expertise in valuating used equipment and can be found in most of the major European markets. It has representation in Germany, Italy, Poland and Russia, as well as its European and world HQ in Spain, and maintains offices in North Africa, India and Turkey. It has strategic partnerships in Latin America, with OEMs worldwide and relationships with local sellers in various markets. The company has plans to further expand its global presence.

    The requirements for sellers vary, depending on their circumstances. For some, time is key in order to liberate space in their factories for new equipment. For others, price is the highest priority – which has led MachinePoint to turn down some equipment, as overpriced. New machinery has seen price decreases over the last few years and this affects used machinery prices, too. Some manufacturers would rather invest their time in getting maximum profitability in the sale of their used equipment. Rodriguez says that selling used equipment is time consuming and involves risks and there is an opportunity cost in committing resources to used machinery selling and not to core business. International transactions are complex, as are payment methods, as well. Dealing with certain countries’ letter of credit and local specifications can become complex and he recommends careful thought before committing to undertake such disposals without professional help.

    MachinePoint Group has also MachinePoint Finance, the division dedicated to provide financial solutions to the equipment industry and MachinePoint Food Technologies, division that does turn key projects and process for the beverages, dairy and agro-food industry.

    MachinePoint Media Department
    Gema Alvarez
    Email: galvarez@machinepoint.com
    Tel: + 34 983 54 99 00



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