SFS is investing in its future growth
SFS Group has ramped up its capital expenditure this year to enlarge its manufacturing footprint, thereby setting the stage for further growth. In addition to several international projects, SFS is investing approximately CHF 50 million (€43 million) in the expansion of its sites in Switzerland.
SFS is investing over CHF 100 million in 2017 to strengthen its international competitiveness and maintain its good sales momentum. This sum exceeds the previous investment peak set in 2014.
Electrification of automobiles is growth driver
The trend towards autonomous driving will accelerate the electrification of vehicles and both trends represent major growth drivers for SFS. The development and installation of precision components require production capacity and necessitates substantial capital expenditure. In addition to production lines for cold forming, machining applications and hardening, SFS is investing about CHF 12 million out of the CHF 20 million total investment to expand its heat treatment capacity in Heerbrugg, Switzerland. The new facility, where construction is now complete, and the installation of new equipment lay the basis for realising customer projects in the pipeline. This will ensure future growth at the automotive division. For next year further investments are planned.
Acquired customer projects necessitate capacity expansion
Approximately CHF 1.8 million is being invested to expand capacity in Hungary. Recently acquired new projects, the installation of new production equipment and the need for additional floor space for finishing processes, ranging from chrome plating to assembly operations, made these investments imperative. The new production building ensures future growth with key customers in the automotive industry and will increase efficiency and competitiveness.
Broader product range requires larger logistics platform
SFS is one of the leading suppliers of fasteners, construction tools and architectural hardware in Switzerland. In order to offer customers an even broader range of products, capacity at the logistics centre in Rebstein, Switzerland - one of the most modern logistics sites in Europe - is being expanded at a cost of about CHF 11 million. The new building will increase storage space by about 5,000 pallets as well as 27,000 container spaces in the automated small parts warehouse. Construction is scheduled to be completed by the end of 2018
Raising the bar in blind rivet manufacturing
To maintain a high level of manufacturing readiness and capture economies of scale, blind rivet manufacturing operations in Europe are being centralised at the factory in Thal, Germany. Thanks to the construction of a new facility for approx. CHF 14 million, the blind rivet manufacturing capacity in Germany will be doubled by end of 2018. This capital expenditure project will bring a lasting improvement in the competitive profile of the riveting division (GESIPA).
For more information on the expenditure project read: https://www.fastenerandfixing.com/insight/the-completion-of-evotion/
Strengthening of competitive position in China
The electronics division (Unisteel) in Nantong, about an hour's drive from Shanghai, is building a new production hub of approx. 75,000m2 at a cost of about US$35 million (CHF 34.7 million) to consolidate its business activities and sharpen its competitive edge in China. Consolidating the division’s sites in the Shanghai region at one location will create synergies and boost production capacity for growth projects. Construction is scheduled to be completed at the beginning of 2019.
Expansion of production capacity
The Medical division (Tegra Medical) is growing rapidly in Costa Rica. In order to create the necessary capacity to handle this growth, the division has leased a second production building adjacent to its existing site. Besides Tegra Medical's core production technologies, the new site will also offer components using the SFS core technology plastic injection moulding. Customers will thus be able to choose from an even wider range of products and services going forward.
This high level of capital expenditure reflects SFS Group's attractive project pipeline and lays the groundwork for the realisation of future growth potential. Thanks to these investment projects, SFS is confident it will maintain its currently good growth momentum.
Will joined Fastener + Fixing Magazine in 2007 and over the last 10 years has experienced every facet of the fastener sector - interviewing key figures within the industry and visiting leading companies and exhibitions around the globe.
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