HydraSpecma’s Swedish division is ramping up production sharply in Sweden. It is also setting up a new head office in its home town of Gothenburg.
The hydraulics company HydraSpecma, owned by the Danish industrial conglomerate Schouw & Co., is investing approximately DKK 60 million to set up new production facilities and build a new head office in Gothenburg for its Swedish division.
The Danish hydraulics company Hydra-Grene acquired Sweden’s Specma Group effective 1 January 2016, and while Hydra-Grene is a leading supplier of hydraulics to the wind turbine industry, Specma is a major supplier of parts and components used for the production of vehicles and it has become an indispensable business partner to truck makers such as Volvo, Scania, MAN, Renault and others.
“At Specma, we’ve seen surging demand for hydraulics products in recent years, and we have opened new factory sites in both Poland and Finland in the first six months of 2019 alone. Later this year, we will be opening a new factory in India,” said Morten Kjær, CEO of Specma, and he continued: “We’re now seeing a strong need to expand production in Sweden, and we're excited that our owners are willing to continue investing for our company to grow at a time when many others are waiting to see how the market develops.”
Specma’s current manufacturing facilities and head office are located in central Gothenburg with no expansion options available. Instead, the company has acquired an 18,000m2 site close to the motorway network and Gothenburg’s Landvetter Airport and plans to build a state-of-the-art production and logistics unit along with R&D and test facilities. The new site will also serve as head office for the company’s almost 900 employees:
“For our company, which was founded in Gothenburg 101 years ago, this is an investment for the future. Our production facilities in Sweden, like those in Denmark, must apply state-of-the-art technology to be able to compete with low-salary regions. To do that, we apply the latest automation and LEAN principles, and our new factory will be certified to the advanced IATF 16949 standard, which is a must for tier 1 suppliers to the automotive industry,” said Morten Kjær, and he continued:
“We currently have test facilities for lifetime tests of hydraulic hoses, fittings, etc., and we are able to simulate how hydraulic hoses function in a future application, thereby reducing time to market for our business partners. That includes using virtual reality testing facilities, where our customers can test the assembly of products still under development.
He adds that Specma will also offer its customers rapid prototyping using 3D printing, and that this is an area the company expects a lot from in the coming years.
HydraSpecma grew its revenue by 7% to DKK 1.1 billion in the first six months of 2019, and its earnings were up by an impressive 24% to DKK 78 million. Schouw & Co. CEO Jens Bjerg Sørensen is absolutely confident about HydraSpecma’s potential:
“HydraSpecma is uniquely positioned in the hydraulics market as a supplier to the wind turbine and automotive industries, among others. So it clearly makes sense to invest for growth when our customers are experiencing a stable and high level of business activity,” he says.
HydraSpecma generated revenue of about DKK 2 billion in 2018, of which Specma contributed almost DKK 1.2 billion. Specma currently has operations in Sweden, Poland, Finland, China, India, Brazil, the UK and Norway.