23. July 2014

Schlemmer Group opens new production facility in Korea

The new plant in Daegu increases the number of Schlemmer production sites worldwide to 22

The Schlemmer Group has announced the opening of its 22nd production site. A new plant with a production area of around 1,000 square metres officially went into operation in the Korean city of Daegu on 28 June. The site, which has been set up for Schlemmer’s industry business segment, offers an initial production capacity of around 12 million metres of corrugated tube per year. Kim Jong-Chan, Chief Investment Office for Daegu Metropolitan City, gave the opening speech at the ceremony. The Schlemmer Group’s CEO Josef Minster and CFO Christian von der Linde were also present at the opening ceremony, along with Norbert Hausfelder, Vice President Industry, plant managers from Germany, Morocco, China and France and Schlemmer employees from Korea.

“With the launch of the new plant, we are opening our production site for the Asia region. In keeping with our tradition, here, too, we will start by producing corrugated tubes, initially on three extrusion lines. Over the course of the coming year, we will extend production to include injection-moulded components too,” says Norbert Hausfelder, Vice President Industry at Schlemmer.

Josef Minster, CEO of the Schlemmer Group, sees the opening of the new plant as another building block in the Group’s globalisation strategy. “Schlemmer first adopted its internationalisation strategy back in the 1980s and has been pursuing it consistently ever since. The Asian market offers us a great deal of potential for growth, especially in the industrial sector. Our declared aim is to double our revenue to over € 400 million by 2020. The plant in Daegu will play an instrumental role in this.”

Corrugated tubes and other special components offered by the Schlemmer Group are required not only in the automotive sector, but also in other areas of industrial manufacturing. To begin with, the plan is for the new plant in Korea’s fourth largest city to supply products primarily to customers from the railway, mechanical engineering and shipbuilding industries. Having a local production site in Asia saves transport costs, thus making Schlemmer products particularly competitive. Schlemmer has already managed to build up extensive business relationships in the region over the past few years, thanks to a sales office which it runs as a joint venture with a Korean Company. The decision to set up its own production site in Asia was made last year.