Home >Record order intake fuels TGW's global push
Record order intake fuels TGW's global push
10 September 2013
Automated warehouse solutions provider TGW is continuing its international expansion plans to have presence in all core markets by 2015.
In business year 2012/2013 (ending 30 June), the company focused on strengthening its market position and establishing reliable infrastructures in its newest international subsidiaries.
Orders worth 455 million Euros allowed TGW to surpass its record and achieve a 25 per cent increase on the previous year. The company started with an order book of 335 million Euros going into the new business year, and revenue rose to 388.9 million Euros – an increase of 7.35 per cent. EBIT (Earnings Before Interest and Taxes) was 16.2 million Euros. In addition, TGW now employs 1,680 people worldwide, which is the company’s highest level to date.
In the business year 2012/2013, the main focus was on strengthening the market position and the structures of its newest subsidiaries. TGW president Georg Kirchmayr said: "It is our goal to stay on course for growth. We will achieve this by increasing our market share in already established markets and by further internationalising our business. TGW has a solid basis for this.”
In China for example, a qualified local team is developing the market and next year, a TGW installation for the Chinese e-commerce empire CNSS will go live.
At the beginning of this year, TGW acquired the remaining 50 per cent of a joint venture in Brazil. The entity in São Paulo is now completely in TGW’s hands and secures access to the entire South American continent. A large-scale project in the Russian fashion industry, in addition to a couple of other projects, led the way to first successes in the Russian market.
The record order intake of 455 million Euros can also be traced back to the biggest order in TGW’s history. This is in Schafisheim, Switzerland, where TGW will be implementing a new distribution centre for the Coop Group, which will be finished in 2016.
Major investments in new markets, subsidiaries and technologies
The consolidated revenue of the TGW Group increased by 7.35 per cent to 388.9 million Euros. The EBIT slightly decreased to 16.2 million Euros due to major investment into TGW’s international subsidiaries as well as research and development. Georg Kirchmayr commented: "The development of future markets such as China and Brazil, and the expansion of our newest subsidiaries are crucial steps for our growth. Furthermore, we will continue to invest in the development of new electro-mechanical equipment and software for our installations.” TGW’s most recent electro-mechanical product is its STINGRAY shuttle system, of which 1,000 have been sold in the past year alone. Further developments will enter the market in the new business year.
TGW continues to search for new employees to support its expansion plans. "We are hiring additional employees to strengthen our team, specialising in international project management but also in controls and software commissioning,” says Kirchmayr.
More than 100 employees were added to the headcount during the last year, which led to further investments in new buildings. In the UK a new building is being constructed in Market Harborough, Leicestershire and the 4.5 million Euro expansion of the existing head office in Wels, Austria, will be finished in the next few weeks creating an additional 200 workplaces.
TGW’s customers include international brands such as Adidas, H&M, Gap, Esprit, Jack Wolfskin, Bentley and Kärcher.