Tobacco Asia

Volume 20, Number 4

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46 tobaccoasia / Issue 4, 2016 September / October By Nattira Medvedeva Back in the 1980s, reconditioned machinery was in high demand around the world. At that time, new tobacco machinery was very expensive, there were only a number of cigarette machinery manufactur- ers, and only big tobacco companies could afford to buy new machines. A little over three decades later, after high-and-low demand cycles, it seems that the jury is still out on whether the demand for reconditioned or refurbished machinery could possibly be on the upswing once again. Yea: demand is growing The tobacco industry has faced a lot of challenges lately, whether it be new laws and regulations com- ing into effect, increased taxes on tobacco prod- ucts, or increased anti-smoking efforts from gov- ernments and the public health sector, all of which have affected consumer consumption, and, in turn, the production and sales of tobacco products. In their efforts to become more efficient and remain competitive in the market, many compa- nies have started looking into buying refurbished machinery over new ones when appropriate, as the costs can be significantly different. And then, of course, sometimes it is not about the cost of the machines, but more about operations efficiency. "We experience closures of cigarette facto- ries and capacity adjustments in the global mar- ket," said Andreas Panz, executive vice presi- dent rebuild at Hauni. "Therefore, quite a lot of relocation as well as refurbishment of machinery is taking place. During the relocation process an overhaul and/or full-rebuild is often requested by customers. Hauni is one of the industry's leading company in systems for tobacco processing and cigarette production. "The business for refurbished machinery is growing. It is driven by the relocation of exist- ing machines with a trend towards electrical solu- tions. As we jointly develop customized solutions with our clients to optimize the installed machine base, we can see an opportunity for a positive development in this sector of our business in the years to come independently of the cigarette vol- ume trend." "Based on the close cooperation with our global customers, we have experienced that it is not the manufacturers, but the client's need that determines the products and services we offer. Customer demands have driven us to expand our offerings for our large installed machine base: to- day we can provide tailor-made maintenance pro- Refurbished Machinery's Growing Demand: Yea or Nay? Decouflé's Nano makers are suitable for use in any production facility.

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