VIENNA, Austria—Hose manufacturer Semperflex has completed construction of its third addition in the last three years at the firm's complex in the Czech Republic and already has launched a fourth expansion at the site.
One of several large business units within the Semperit A.G. Holding group of companies, Semperflex spent about $23.3 million on the newly completed production facility that was added to its Semperflex Optimit complex in Odry, Czech Republic, a company spokeswoman said.
Its recently completed addition will enhance the capabilities of what the firm said is Europe's largest hose facility. New machinery also is being added, the spokeswoman said, and additional jobs are being created.
Production at the site, which opened in early November, will ramp up in the first quarter of 2018, she said. Details on the size of the expansion and the new machinery were not released.
"We are creating additional jobs in the high double digit range," the spokeswoman added. "With more than 850 employees, Semperflex Oplimit is one of the largest employers in the region as of today."
Vienna-based Semperit, which was founded in 1824, kicked off its expansion program at the sprawling complex in 2014 when it began constructing a new production hall. After it was completed in 2015, the company started on the second expansion, which was finalized in 2016. In the summer of 2016 the firm launched the third addition that it recently completed.
High quality products and a strong sales performance were cited by Semperit CEO Martin Fullenbach as the prime reasons for the new expansion. He said Semperflex has managed to increase sales and market share despite difficult economic conditions.
"Demand for our hydraulic hoses is so high that we had to start the next expansion step immediately after having put the latest expansion stage into operation in the spring of 2015," he said. "By further expanding our factory in Odry, we are creating the necessary capabilities to continue fully meeting our customers demand and to secure our growth path on the production side."
One of the leading global manufacturers of hydraulic and industrial hoses, Semperflex plans to add hydraulic hose capacity at the Odry plant on a step-by-step basis starting at the end of 2017 and the beginning of 2018, according to the company.
After the newest factory is fully operational, the complex will have a manufacturing capacity for hydraulic hose that is about 30 percent higher than at the beginning of the investment program at the Czech Republic site in 2014.
Next up for the company will be the addition of another plant, which also will be a separate production hall. The spokeswoman said the facility is expected to be about the same size and produce a similar volume of hose as the recently completed facility, she said.
Once completed, which is expected in the second half of 2018, the fourth expansion will add new machinery and additional personnel, the spokeswoman said.
Semperflex Optimit, which exports about 90 percent of its products, primarily serves the European market, as does its facilities in Italy, Germany and Austria. The company's plant in Thailand makes hose for the U.S. and Asia while its factory in China produces hose for the Chinese market.
Semperflex said it plans to further strengthen its market position by continually expanding its production capacities at its facilities and increasing its presence in growth markets. In 2016, the firm generated revenue of about $238.2 million.
Its parent Semperit is an internationally oriented group that develops, produces and sells highly specialized rubber products in more than 100 countries.
Semperit's businesses serve the medical and industrial sectors. They produce examination and surgical gloves, hydraulic and industrial hose, conveyor belts, escalator handrails, construction profiles, cable car rings, and products for railway superstructures. Semperit employs about 6,500 and generated sales of a little more than $1 billion during 2016.