The UK plastics industry has approximately 5,700 firms, employing 180,000 people and turning over £26 billion per year. Figures show we have around 1,500 UK-based injection moulding companies with around 14,000 moulding machines.
Haitian International
Based on industry figures, the typical machine is a 250-ton clamp force, 20 years old, and has hydraulic motors. It uses the equivalent of 50 households of electricity yearly, meaning the UK fleet of moulding machines consumes the equivalent of 700,000 households of power.
The turbulent energy market is generating a sharp spike in costs for manufacturers; yet, investment in new efficient technology continues to be weak. Technology is moving quickly, and the UK will likely fall further behind our European neighbours if the mindset doesn’t change.
So, how much are these old machines costing us? Premier Moulding Machinery, who has been the Haitian International distributor in the UK for 20 years, shed light on the issue.
[GD] How can energy efficiency drive growth across the board?
[CR] Moulding machines typically account for 60% of a moulder’s total energy consumption. Our latest “Generation 5” machines normally demonstrate savings of over 80% as opposed to fixed or variable pump technology, and 20-40% versus traditional servo hydraulic machinery.
We tend to base our calculations on return on investment (ROI) at £0.14 per unit. This shows a payback between three and five years for our clients. Most companies depreciate their capital equipment over ten years and keep it for 20, making a 3-year payback truly compelling. During the height of the energy crisis, customers were paying 30p, 40p or even 70p per unit, which, in some cases, resulted in ROI in under 12 months.
But it isn’t just about energy savings; the technology shift has produced lower cycle times, production efficiencies and connectivity gains, boosting manufacturers’ competitiveness.
[VE] I think customers’ mindset of not investing has been influenced by the machinery's traditionally high prices. This made replacing old machines more challenging and resulted in moulders keeping them for over 20 years. When asked, “Will your machines be running in 20 years?”, I usually reply with another question. Yes, they will be, but would you want them to? This is where the computer parallel comes in: would you run your business on a 20-year-old computer when technology evolves rapidly?
[CR] The UK runs Europe’s oldest fleet of moulding machines outside of Romania, and we need to reverse this if we want to stay competitive in global manufacturing. If our key moulders, or their supply chain, run 20-year-old tech, OEMs will look elsewhere.
[GD] How can the Government support manufacturers to achieve this competitive edge?
[CR] The Government can help, and I think it would be a win-win. Energy security is a top priority if we consider what is happening around the world.
They recently announced plans to build several small modular reactors (SMR) to increase energy availability in the UK. One SMR will cost £1.8 billion on average and produce enough electricity for one million households.
If our sector upgraded all outdated machinery, we could cut energy consumption by the equivalent of 500,000 households, saving the Government £900 million.
Instead of spending money on nuclear reactors that will come on stream in ten years, the Government could implement schemes to swap energy-hungry machines. This would bring an immediate impact. Theoretically, they could afford to replace all the old machines in the UK at a total cost of £750 million, making this cheaper than a nuclear reactor. In turn, this technology upgrade would improve productivity, reduce cycle times, boost competitiveness, safeguard jobs and lower the UK’s carbon footprint. I’m not suggesting the Government should pick up the bill for the industry, but incentives like interest-free loans, Carbon Trust grants and taxation have proved to work quickly and inexpensively.
[GD] Do you think automation can play a role in this?
[CR] We have some of the lowest levels of automation in Western Europe. The shared fear is, “Will automation take away our jobs?”. We have a massive backlog of vacancies within the sector, often at the basic operator level where automation is most easily introduced. The recent increase in national insurance has shed light on labour costs while making robotics far more affordable. Low-energy, Cartesian Robots can pay for themselves in 12 months, even on a single eight-hour shift.
[VE] The question is, “Why wouldn’t everyone do it?”. I think it's for fear of the unknown, both with robots and AI. It’s time to embrace technology rather than ignore it.
Haitian is a great example of how quickly world-class manufacturing is developing. In 2024, the company manufactured and sold 56,000 machines globally. The main factory in China has reduced its headcount from 1,200 to 400 over the past four years through automation, while output went up 300%. However, the workforce at Haitian has not been cut; it has evolved to work efficiently with technology, driving growth, innovation and competitiveness.
In conclusion, new technology can bring valuable energy savings, giving manufacturers a fast return on investment. The enhanced functionality, improved cycle times and connectivity are a bonus that comes with the lower energy consumption. And automation is part of the equation, helping manufacturers stay competitive globally.