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Press conference – Financial statement of materials handling company TGW

The business year 2011/2012

2012-23-08

(Wels, Austria, 23rd August) The materials handling company TGW from Wels, Austria, is on its way to becoming an international corporation. After having opened new sites in China, Brazil, Turkey, Switzerland as well as Denmark, the company wants to be present on all relevant and international core markets by 2015. This reports TGW’s president Georg Kirchmayr on today’s financial statement press conference in Linz. In the business year 2011/2012 (concluded on 30th June), TGW generated a revenue of more than 362.3 million Euros. This is an increase by 22 per cent compared to the previous year. Considering the year before, TGW grew another 34 per cent. The EBIT amounts to 17.9 million Euros. TGW now employs more than 1.500 people and will be further expanding its headcount.

Starting in autumn, the headquarters in Wels will be expanded by an additional office wing to provide space for another 200 employees. In England, a new office building will be built and 20 new employees will be hired. In Brazil, the company will soon be relocated to a bigger building and in the US, the additional office site in Grand Rapids has been moved into. The human resources growth strategy at the headquarters in Wels is accompanied by the “70newJobs” campaign, which makes TGW transparent as an Austrian company with international prospects and as an attractive employer with all its facets.

The massive growth is due to customers such as Adidas, Audi, Bentley, Esprit, Gap, H&M, Hilti, Intersport, Jack Wolfskin, Kärcher, Lenze, Roche, Salewa and Weltbild. They all work with equipment, software and know-how of conveyor and storage technology specialist TGW from Wels. President Georg Kirchmayr, “To enable our customers to have their goods at the right time, at the right place, they need an in-house logistics network within a company. We provide the know-how, the system solutions and the project competence”. TGW Logistics Group is a leading global systems integrator of automated materials handling solutions.

Expansion in Austria and worldwide

The international orientation of TGW has been pushed on during the past few years. A new entity was founded in Shanghai and in the medium term, a new production site should be built there. In Brazil, a joint venture with a local company in São Paulo was established, to be able to work the South American market. The newly founded subsidiary in Switzerland not only serves the local market, but is also available as competence centre for highly dynamic logistics installations. Since recently, the representation office in Istanbul has worked the Turkish market, and an own office in Denmark has been established from where the Norwegian market is served, too.

Kirchmayr: Future potential predominantly outside Europe

On the whole, TGW counts 14 entities in Europe, North America, South America and Asia. There are production sites in Austria, the US and Brazil. The long-term goal is to operate production sites on all continents, which are relevant for automated materials handling solutions. In the current core market Germany, the industry is working to capacity. In general, the level of automation is basically very high in German speaking areas. This particularly applies to the automotive and the mechanical engineering industries. “The focus of automation projects in Europe is shifting towards the retail business”, states Georg Kirchmayr.

The TGW boss sees growth potentials predominantly outside Europe. “In the US, the level of automation in the materials handling business is much less than in Central Europe. In warehouse logistics, automation has just started to establish itself”, says Kirchmayr. In China, he estimates a longer warm-up time. The Middle Kingdom indeed is a future market, automation in logistics, however, is not yet common. “The replenishment of big cities with consumer goods via large distribution centres offers exciting perspectives”, emphasises TGW’s president. About the growth market Brazil, Georg Kirchmayr mentions: “With TGW’s investment in CSI in Brazil, we are perfectly prepared for expanding in the Latin American region.”

Sustainable investment pays off: For example Great Britain

TGW Limited in Great Britain was founded in 2007 with only three employees. The long-term establishment of over five years has paid off. Strong demand comes from all industries, mostly from retailers. Today, TGW lists companies such as the exclusive online apparel retailer Net-a-porter among its customers. Also the British supermarket chain Ocado relies on logistics know-how by TGW. 86 employees generate a revenue of 57 million British Pounds, or 72.6 million Euros. Thus, Great Britain ranks after Germany which represents the core market with about 36.5 per cent of the total revenue, followed by Spain and the US.

TGW employees ensure expansion

To implement a complex TGW installation, people from various fields of expertise are required: from IT, automation and mechanical engineering to electro-mechanics and administrative know-how. Education and further training is very important for the materials handling company TGW. The agenda includes on-the-job training, a trainee programme ensures skilled young professionals. Moreover, apprenticeship training is of great importance to TGW. All in all, 110 apprentices will work at TGW in September. The training team, consisting of trainers for each profession and specialist trainers in various specialist fields of expertise, ensure high-quality training. An information campaign accompanies TGW’s plans to hire a further 70 employees. Until 2015, 200 new positions are planned. Georg Kirchmayr: “Besides the current personnel requirements, TGW also declares its belief in a successful, cosmopolitan and transparent company, the reputation of which is significantly influenced by its employees.” TGW strengthens its collaboration with educational institutions by intensive co-operations with schools, Universities of Applied Sciences and Universities.

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