Engel Set for Further Growth
In the 2015–2016 financial year, Engel Austria GmbH was again able to achieve an increase in turnover. Worldwide, the Engel Group with headquarters in Schwertberg, Austria, generated EUR 1.25 billion in turnover. For the company's current financial year, the numbers continue to point to growth. In the 2016–2017 financial year, almost EUR 100 million are being invested in the further expansion of facilities and capacities. Austria is one area of focus for investments.
"In the 2015–2016 financial year, we were able to consolidate our excellent market position in Europe and have expanded our market shares in Asia and America even further," reports Dr. Christoph Steger, CSO of Engel Holding. Despite the overall slight slowdown in growth and the decline in a few individual markets, the company is expecting order intake to remain at a high level for the 2016–2017 financial year.
Focus on Asia
Asia is the most important growth market for Engel, although the overall growth in China, the largest market there, continues to slow down. The trend towards greater quality, the pressure on prices that is also increasing in Asia, and the new challenges facing society are making it necessary to invest in advanced technology and automation in an increasing number of areas. Engel is benefiting from this trend. Teletronics follows the automotive industry as the second-strongest contributor to turnover for Engel in Asia. Growth motors include the fields of infotainment, vehicle assistance systems, automotive electronics and precision optical components.
Engel is the only western injection molding machine manufacturer producing machines at multiple sites in Asia for the local markets. In 2001, the production plant for injection molding machines with low and medium clamping forces was opened in Pyungtaek City, South Korea. Since 2007, Engel has been producing large-size machines at its plant in Shanghai, and with the founding of Wintec as a secondary brand in 2014, a third plant in Asia was established in Changzhou, China. In the meantime, the Engel Group achieves 85 % of its turnover in Asia with its local production.
Aside from Asia, North America is currently one of the most dynamic regions in the world. Car sales figures and overall consumption are remaining at a high level. Other factors include a renewed appreciation for goods produced in the country and the fact that the sometimes very old machinery is now being modernized and brought back to a competitive level with innovative technologies. Due to the fact that Engel had already appointed Business Unit managers for North America two years ago, it is now in a good position to participate very successfully in the upswing.
In Europe, Engel successfully continued to consolidate its large market share in the 2015–2016 financial year, and was even able to significantly expand its share in the packaging sector. Among other things, this was due to large projects in the area of beverage caps. Germany remains one of the markets with the highest turnover for the Engel Group.
Investments for Further Growth
Altogether, Engel is investing almost EUR100 million in different company locations in the 2016–2017 financial year. The largest part will remain in Austria. Construction work on a significant expansion of the company headquarters in Schwertberg has been underway since the summer of last year. While construction was still ongoing, the scope of the expansion was enlarged. Instead of two, the new building will now have three upper floors. The new building is connected with the technology center that was completed in 2009 and provides more than 10,000 m2 of floor space. Of these, more than 6,000 m2 are reserved for new offices to strengthen the sales and service teams. A new apprentice workshop is being built on approx. 1,300 m2 , and around 300 m2 will be available for day nursery facilities. Further building measures for the Schwertberg site are already in planning. The focus lies on increasing capacities for assembly. Among other things, the North Hall that was built in 2013 will be expanded.
Parallel to the expansions at the company headquarters, construction work has begun at the location of Engel large-size machine plant in St. Valentin in Lower Austria. By late summer of this year, two warehouses will be completed, and then in the autumn, work will start on an additional production hall.
The component plant at Kaplice in southern Bohemia, Czech Republic, is being equipped to increase the machine assembly capacity. By the autumn of 2017, production floor space will be more than doubled. In addition, an even larger administrative building is being constructed, because the number of employees is not just growing in production, but also in administrative areas.
In Asia, the focus for investments this year lies on Shanghai. There also, both the production facility and the office wing will be significantly expanded by April of 2017. Construction of the production hall has already begun. It will provide 1,600 m2 for additional CNC processing machines. 450 m2 of floor space is being added for offices and the apprentice workshop.
Engel Austria GmbH
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