Semperit completes €27m expansion at Czech plant

Vienna – Austrian rubber engineering group has completed a €27-million expansion of its hose production plant in Odry, Czech Republic.

Through the  expansion, annual production capacity at the Semperflex facility has increased to 100 million metres of “high-quality hoses”, which are used in the construction and transport industries, Semperit said in an 8 Nov statement.

“Odry is… an example of how we purposefully and continuously strengthen our competitiveness in a dynamically growing market,” said Martin Füllenbach, chairman of Semperit AG Holding.

The company launched the expansion, “immediately” after finishing another multi-step investment programme launched in 2015.

The Austrian group invested nearly €15 million in expanding the site in 2015, increasing its production by 40% by mid-2016.

The move, according to Füllenbach, was made in response to “the strong demand” for the company’s hydraulic hoses. In addition, Füllenbach has identified further expansion potential in the Odry factory for the coming years.

Semperit took over the production plant through the acquisition of its Czech competitor Optimit 20 years ago and has since continuously expanded and modernised the unit.

Over the past two decades, the plant’s revenue has increased sixfold while capacity has been raised fixfold. Semperit said it has invested a total of €150 million at the location during the period.

In its Semperflex segment, with around 23% of the group’s total revenue, Semperit produces hydraulic and industrial hoses in the Czech Republic, Austria, Italy, China, and Thailand.

Semperit claims to be the world number 3 for its hydraulic hoes, and number 2 within Europe. Semperflex customers include Austrian cranes manufacturer Palfinger AG and German producer of high-pressure cleaners Kärcher GmbH.

The Vienna-based rubber group announced in August that it was, as part of its ongoing restructuring, studying the profitability of Semperflex production site in Rovigo, Italy.

Semperit launched its major restructuring earlier this year in response to weak results last year.