Semperit boosting hose capacity at Austrian site

VIENNA, Austria—Another significant expansion project has been launched by Semperit A.G. Holding at its large Odry, Czech Republic, hose operation.

With an eye on maintaining sustainable organic growth in the short and long terms, the company plans to invest about $110 million in the project that includes the addition of a new production facility, expected to span about 183,000 square feet, a company spokeswoman said.

She said the new plant will be constructed near Semperit's present manufacturing complex in Odry, which covers more than 3 million square feet and has a work force of about 950, on the firm's existing property. The new plant will be used for production of carbon-neutral hose.

Hydraulic hose production capacity at the complex will be boosted another 105 million linear feet, which ultimately will allow the complex to produce about 650 million linear feet of hose annually.

Also included in the investment will be new automated machinery and an unspecified number of additional employees, according to the spokeswoman.

Semperit, which is focusing on sustainability and automation as it moves forward with the project, expects to have its addition and improvements at the new building completed by 2025.

Its latest project is the final stage of a plan to increase capacity at all of the firm's factories, which have each benefited from significant investments in the last few years.

At the Odry plant alone, the Vienna-headquartered company has invested about $265 million since 1998.

"Hose production (at the new site) will be powered exclusively by renewable energy at what will be the world's first carbon-neutral hose production facility," according to the spokeswoman.

Virtually all of the machinery at the new factory will be automated, she said.

"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," Semperit Group CEO Karl Haider said.

Semperflex Managing Director Gerfried Eder noted that remaining close to the firm's customer base in a key market like Europe "brings us benefits like more manageable supply chains, faster deliveries, reduced carbon emissions and savings on transportation."

From that strong position, Eder added, "we can aim to disproportionately increase our market and supply share and achieve continued growth above the market average."

Even though capacity at the Odry complex will be increased, the overall water consumption at the site will drop by about 30 percent once the new plant is completed, the company said.

Because of the automated production process at the new facility, "we will be raising the bar for staff productivity, process stability and consistent product quality higher than ever before," according to Michael Adelbauer, director of operations at Semperflex.

"We will also be making life easier for our employees and removing elements of their jobs requiring physical effort and exertion, meaning that almost every step of our workflow could be performed by anyone," he said.

Semperflex accounted for around 29 percent of the Semperit Group's total revenue in the first quarter of 2022. In addition to its factory in the Czech Republic, the business produces its hydraulic and industrial hose at plants in Austria, Thailand and China.