The Hindu : Front Page : High demand for second-hand equipment

Online edition of India's National Newspaper
Sunday, May 28, 2006

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High demand for second-hand equipment

M. Soundariya Preetha

COIMBATORE: A number of industries in Coimbatore, both textile mills and foundries, are buying used machinery and sometimes even the entire plant from foreign countries, including Europe. This is mainly because of the long delivery schedules for new machines, said industry representatives here.

At least 10 leading textile mills were either looking out or in the process of finalising negotiations with units abroad to buy the entire plant. The machines are relocated to India and operated here. "We get these machines at 17 per cent to 20 per cent less cost than the new domestic machines and with better technology too," said a textile mill source here. "Some of these are very high technology machines, especially the cards, combers and ring frames with auto drafting." These were mainly from the European Union as a number of mills were getting closed there. A number of units got the equipment piecemeal also. What drives the mills for these machines were delivery periods, easy handling for workers and technology, said the source.

With regard to foundries, the secretary of the Coimbatore District Small Industries Association, K. Illango, pointed out that at least half-a-dozen units were planning to buy foundry equipment from closed and working units in Europe and also the US.

These were mainly in the "high pressure moulding line" and were modern machines used to make products for the export market. This equipment formed nearly 15 per cent of the investment cost in a foundry.

With a number of units on an expansion mode, they looked out for machines available in these countries mainly on the internet and through contacts, checked out the details and finalised the negotiation.

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