Semperit intends to locate production in North America

VIENNA, Austria—Semperit A.G. Holding intends to expand its manufacturing arm into North America, though exactly where or when that will take place has not been determined.

A spokeswoman for the rubber product maker would not disclose further information on the expansion.

However, the company did say it is looking to reduce its heavy dependence on the European market—and to do that successfully, an expansion into North America is necessary, CEO Martin Fuellenbach said. The firm already has a strong presence and a solid base of customers in North America, and intends to build on that.

"We are expanding in one of the world's largest economic zones by investing in local production," he said. "This is the first step of our focus activities, which will be accompanied by increased customer support in the region."

Fuellenbach said the company is striving for closer proximity to its customers to serve markets faster and more effectively. The expansion will be a pilot program for local manufacturing and regional market development.

Semperit also is making other significant moves to improve and make the company stronger.

Topping the list is the creation of a new strategy in the firm's industrial sector. The first step is being implemented and the industrial division will be reorganized into four segments rather than three, with profiles and rubber sheeting separated from the Semperform segment and operated as a new segment called Semperseal, Semperit said.

Semperform will continue to focus on handrails, sheave and bull wheel liners for rope ways, ski foils and engineered solutions, the spokeswoman said.

Both changes are part of an ongoing restructuring and transformation project that Semperit said has progressed successfully and delivered a continuous increase in profitability over the last two years.

Other segments that comprise the company's industrial sector include Sempertrans, which manufactures conveyor belts, and Semperflex, a producer of hydraulic and industrial hoses. Semperit also operates a large medical business, called Sempermed, a maker of surgical and examination gloves.

The company's executive board is reviewing options for the medical operation, a move intended to upgrade and improve the business, Semperit said.

"The situation in the medical sector continues to intensify," the spokeswoman said. "Semperit's relatively competitive position has recently deteriorated significantly. Against this background, strategic options for the medical sector are currently under review."

She declined to offer further details.

With the aim of identifying and developing new growth regions and industries, the firm also is creating a new organizational unit, called the Customer Excellence Center, to upgrade the firm's focus on underdeveloped industries; the digitization of its product portfolio; and the analysis of possible applications for the firm's product range.

In another significant move, the company named Kristian Brok chief operating officer to complete the firm's executive board.

According to Peter Edelmann, chairman of Semperit's supervisory board, Brok is "a true specialist and industry insider."

For the last 10 years, Brok has worked for competitor Trelleborg A.B., most recently serving as a member of the executive board of Trelleborg Sealing Solutions, where he was responsible for the Global Operations Elastomers business unit. Polymer-based sealing solutions for critical applications has been the focus of his career, Semperit said.

Brok has 20 years of management experience in high specification manufacturing and, at Semperit, will use his knowledge extensively, concentrating on the development of the firm's lean program as well as management of its supply chain and mixing business, the company said.