VIENNA, Austria—Semperit A.G. Holding plans to invest about $110 million at its Odry, Czech Republic, factory to boost carbon-neutral hydraulic hose production.
It will add a new section at the large plant for the highly automated manufacturing of the hose, boosting the operation's production capacity for hydraulic hose by about another 105 million linear feet per year. That will allow the facility to produce a total of 650 million feet of hose annually.
Semperit said it is focusing on sustainability and automation as it moves forward with the project. Production of the additional hose is expected to begin in new area of the factory by 2025, the firm said. The project is the final stage of a plan to increase capacity at all factories operated by Semperit, the company said.
At the Odry plant alone, the Vienna-headquartered company has invested about $265 million since 1998.
"By investing heavily in Odry, the Semperit Executive Board will be guaranteeing the ongoing organic growth of Semperflex, our successful hose division, and ensuring that we can continue to support our customers, who are on track for exceptional expansion in the future," according to Karl Haider, CEO of the Semperit Group.
He added that being close to its key customers in Europe brings benefits such as more manageable supply chains, faster deliveries, reduced carbon emissions and transportation savings. "From this strong position, we can aim to disproportionately increase our market and supply share and achieve continued growth above the market average," Haider said.