EUR 15 million will go into the expansion of Semperit’s hose production facility in Odry, Czech Republic. This will increase production capacities of industrial hoses by about 40 % by the second quarter of 2016. Even after the recent coming on stream of additional hydraulic hose production capacities, Semperit is quickly progressing with the expansion of Europe’s largest hose plant. “We succeeded in significantly increasing sales volumes in recent years and gained additional market shares in spite of the weak economy”, says Thomas Fahnemann, chief executive officer of Semperit AG Holding. “The hydraulic hose capacities put into operation in January 2015 are already well utilised. We are further expanding production in Odry in order to continue on our growth path and satisfy the strong demand for industrial hoses”. The investments are designed to extend production capacities for industrial hoses by the middle of 2016.
Capacity for mandrel built industrial hoses utilised mainly by the construction, oil and transport industries, will be increased by more than half. Production capacity for extruded long length industrial hoses, used by the welding and mechanical engineering industries and for automobile manufacturing, amongst other purposes, will be raised by about one-third at the turn of the year 2015/16. The new industrial hose production process will be even more efficient and of superior quality thanks to the application of state-of-the-art robot technology. New hydraulic hose capacities are already being well utilised In 2014 Semperit invested more than EUR 10 million to expand hydraulic hose production in Odry. As a result the production capacity available to Semperflex in the Czech Republic climbed by about 30 %.
These additional capacities have already been in operation since January 2015, and are already well booked with customer orders. Against the backdrop of the current challenging business environment, medium to long-term demand for hoses is expected to be positive. Demand will be driven by long-term global growth in the mechanical engineering and construction industries as well as in mining. In particular, emerging markets catching up with developed countries and infrastructure expansion will ensure ongoing demand for hydraulic and industrial hoses integrated into construction and agricultural machinery. The outlook for capital expenditure (CAPEX) of the Semperit Group in 2015 is planned at about EUR 75 million (2014: EUR 74 million), of which approximately EUR 50 million relates to growth investments.