Semperit begins expansion at Czech Republic hose plant

VIENNA, Austria—The Semperit Group's Semperflex business has launched an expansion project at its large hose production site in Odry, Czech Republic, that includes construction of a new plant and a significant boost in capacity.

More than $13.6 million is being invested in the new factory, located next to its Semperflex Optimit hydraulics facility on the site, and raise capacity for the production of hydraulics hose by about 30 percent, a company spokeswoman said.

Semperit did not release additional details about the new plant, including its size and the number of employees it will add. It did say that the expansion will result in an increase in the size of its work force in Odry.

Construction of the factory is expected to be completed in 2015's second quarter, the spokeswoman said. At that time, the additional production capacity will come on line, she said.

Located in the eastern region of the Czech Republic, the Optimit hose plant has been part of the Semperit Group since the company purchased the facility in 1998.

The Semperflex business achieved a significant rise in hose sales and gained a great-er market share in 2013, according to Thomas Fahnemann, who is CEO of Semperit A.G. Holding. "We see additional growth potential in the future based on our high quality products and enhanced customer service.

He said the firm can meet the strong strong demand for Semperflex hoses, "intensify our partnerships with key customers and therefore secure future growth by expanding our production capacities in Odry."

While the company has been impacted recently by a weaker market environment, it said, the firm has profited from strong global growth in the mechanical engineering, construction and mining sectors.

Semperit said the need to catch up with demand in emerging markets along with infrastructure expansion ensures that there will continue to be a need for construction and agriculture machinery.

Semperflex boasts a strong market position for its hydraulic and industrial hose in those areas, the company said.

Hose produced at the Odry factory is not only for the Czech Republic, the spokeswoman said, but also for the European sector, where the Semperflex lines of products are making significant gains, and beyond that for the global market.

The Semperflex Optimit plant in Odry is the largest hose complex in Europe, Semperit claimed, thanks principally to the company's engineering knowhow and a longstanding tradition in the production of premium hose products.