Semperit to expand capacity, work force in Poland

BELCHATOW, Poland—Semperit A.G.'s Sempertrans business is expanding its production capacity and work force at the firm's conveyor belt plant in Belchatow.

About $44.7 million is being invested in the project, which also includes the addition of new machinery, according to a spokeswoman. About 100 jobs have been added, giving the factory a total of 570 employees. About 440 of those focus on conveyor belts.

Semperit's goal is to double capacity at the Belchatow plant by the time the project is completed in 2017. And, it said, thanks to state-of-the-art technology and machinery, production at the factory will be more efficient in the future.

A boost in capacity was needed because of growing sales and high demand for Sempertrans' belts and other products, the firm said.

“We have established our position as a producer of high quality conveyor belts and a solution provider with top services among demanding customers,” said Thomas Fahnemann, CEO of Vienna, Austria-headquartered Semperit.

Because of that, he said, the company can gain market share steadily, “even in an overall difficult economic environment.” With the additional capacity at the plant, he added, the Sempertrans business, which is part of Semperit's industrial products group, can continue to expand, open new markets “and push our global expansion, as planned.”

Fahnemann said Poland offers ideal production conditions for the industrial sector because the country has highly qualified employees, competitive energy costs and is located in close proximity to important markets and key customers.

The conveyor belt market is growing by roughly 3 percent annually worldwide, according to Boris Illetschko, head of the Sempertrans business. He said the three biggest growth areas are Asia, Australia and South America.

Megatrend mining and the increasing demand for energy and raw materials determine market growth for conveyor belts, he said.

In addition to mining, Sempertrans' products are used in the steel and cement industries, power stations and the transport industry. The spokeswoman said Sempertrans' Belchatow plant is the largest conveyor belt production site in Europe and specializes in heavy duty steel cord and textile belts.

A research and development center located at the site continuously develops new products, she said, with its most recent addition being an energy saving belt used by several major customers.

Semperit is coming off another strong first half and said that satisfactory development is expected for the entire year.

The group's consolidated revenue for the first six months rose by 1.6 percent to $506.8 million, while organic revenue growth was up 5 percent, excluding one-time consolidation and acquisition effects.

Net earnings increased slightly to $28.4 million for the period from $28.3 million in 2014, thanks principally to a strong performance and high capacity utilization in the industrial sector, which compensated for weaker results in the firm's medical sector, the firm said.

Fahnemann noted the company's industrial group—made up of Sempertrans, Semperflex and Semperform—performed considerably better than the overall market. Revenue for the group rose by 6.4 percent to $291.5 million for the first half.

Profitability in the medical sector was negatively impacted by up-front costs from a new Malaysian glove plant, which will begin operating in 2016 “and will generate growth in revenue and earnings,” Fahnemann said.

Revenue on the medical side of the operation dropped 4.2 percent to $215.3 million because of a change in the firm's method of consolidation, the company said.

Semperit is continuing with its expansion of production capacities in both the industrial and medical businesses, it said. The firm said the additional capacities gradually will be available this year and in 2016.