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Wirtgen going for growth

The Wirtgen Group has held a highly successful Technology Days event at the brand new Kleemann facility in Göppingen near Stuttgart. Some 2,600 people attended this year's event, the largest of the three held so far by the firm. A key focus for this year was highlighting the full integration of the Kleemann crushing equipment operation within the Wirtgen Group. The previous Technology Days events were held at the Hamm facility in Tirschenreuth and at the Wirtgen headquarters in Windhagen. Following the Kle
May 28, 2012 Read time: 4 mins
Investment has been substantial in the brand new Kleemann facility, which is equipped witht he latest CNC machine tools
The 364 Wirtgen Group has held a highly successful Technology Days event at the brand new 261 Kleemann facility in Göppingen near Stuttgart. Some 2,600 people attended this year's event, the largest of the three held so far by the firm. A key focus for this year was highlighting the full integration of the Kleemann crushing equipment operation within the Wirtgen Group. The previous Technology Days events were held at the 228 Hamm facility in Tirschenreuth and at the Wirtgen headquarters in Windhagen.

Following the Kleemann acquisition, Wirtgen built an all-new factory at a Greenfield site in Göppingen. In all some €57 million was invested in the purpose-built factory, which features the latest in 866 CNC controlled production and manufacturing technology. The Wirtgen Group is particularly strong in the roadbuilding market, where the company is an undoubted leader in the field. The new Mineral Technologies division of the Wirtgen Group is also seen as having major growth potential for the future. Joint president Jürgen Wirtgen said, "We've got some tremendous expansion ahead of us and we're already well positioned in that market."

Head of the Kleemann operation is Dr Gerhard Schumacher and he commented, "The integration of two companies is not an easy process but in our case it has worked extremely well and we've worked hard to each that in 4 ½ years."

With the Kleemann brand now being supplied through Wirtgen's worldwide operations, the company expects strong growth. The company will capitalise on its strength in the USA, Central America, South America, South Africa, Australia an across Europe to expand sales for Kleemann.

However, the new Kleemann plant is not the only new factory the Wirtgen group has erected and Jürgen Wirtgen said, "In all our factories we have invested heavily."

In fact, the Wirtgen Group has invested in all of its production facilities in Germany in the last few years, building new plants for the Hamm compaction, 1194 Vögele asphalt paving and Wirtgen milling and stabilisation machine ranges. The new Vögele facility at Ludwigshaven cost some €100 million and this is the biggest single investment in the Wirtgen Group's history, as well as being the largest and most modern asphalt paver manufacturing facility in the world according to the firm.

Although Germany is a high cost manufacturing base in some regards, the Wirtgen Group is keen to capitalise on the country's reputation for high manufacturing quality as this offers a major sales benefit. His brother, joint president Stefan Wirtgen said, "At the moment 90% of our production volume is in Germany and it is going to stay that way."

The company has also performed well during the recent period of market turbulence. Jürgen Wirtgen explained that the company maintained its workforce and continued to invest in research and development even as the economic crisis hit in late 2008 and during 2009. The firm was even able to benefit by hiring key engineering expertise from other companies during this period and Jürgen Wirtgen said, "Our investment strategy is clear."

Stefan Wirtgen commented, "All our investments were large and these were anti-cyclical. There are advantages of being a family-owned company as you can think beyond the crisis, to the long term. We said we want to come out of the crisis stronger than before and with €1.5 billion sales we are back to our growth phase."

The firm does intend to reorganise the facility it operates in Brazil however to increase output and Wirtgen is also increasing output in India. Stefan Wirtgen said, "We've taken a new step in India. We moved out of the old facility in Bangalore because it was too small. The first step is production of a new soil compactor that has been specifically designed for India. We have interesting growth potential there."

The company has its eye firmly on developing worldwide sales, with its Chinese manufacturing facility and sales outlets becoming an increasingly important part of its operations. And other key investments include a training facility in Nashville, a sales and service operation in Ankara to help boost the firm's share of the Turkish market and new buildings in Poland and Australia.

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