Munich Planning for Schaltbau’s new EUR 50 million plant in Velden, Lower Bavaria, had already begun in 2019, before Corona and the Ukraine war. However, in view of the interrupted supply chains and increased electricity prices, the decision to locate in Germany and use a decentralized energy supply with solar power has proven to be far-sighted. “Of course we see ourselves confirmed,” said CEO Jürgen Brandes to the Handelsblatt. “Our energy concept should be the blueprint for the most modern production in Europe.”
In view of the global crises and increased transport costs, many companies are considering bringing their production closer to home again. “With highly motivated, well-trained employees, you can react to changes much more quickly and flexibly,” says Schaltbau CEO Brandes.
The specialist for direct current protection technology also relied on automation at home when planning its new plant – and not on low wages abroad – when the existing production in Velden reached its capacity limit.
The premises for production have changed throughout the industry. For a long time it was all about manufacturing as cheaply as possible. According to a survey by Roland Berger, many local companies were even considering giving up completely due to the strong cost and efficiency pressure.
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But that is changing in many places. “The view of competitiveness in the manufacturing industry is changing from a mainly cost-oriented to a holistic view, in which CO2 emissions, political risks or the increased complexity of supply chains also play a much larger role,” says Marcus Berret, Global Managing Director Director at Roland Berger. Companies that realign their production now would have the chance “to turn it from a liability into a competitive advantage”.
Renewable energies, less oil and gas
The new Schaltbau factory – the topping-out ceremony is being celebrated these days – integrates a 1.4-megawatt photovoltaic system, battery storage and a direct current network. The latter is regarded as a forward-looking technology for the integration of renewable energies into production, partly because there are no conversion losses.
Schaltbau is thus using a technology that is also the focus of its own business. Because the company produces protective technology that enables the safe use of direct current. Switching off direct current creates an arc, which is dangerous. Sagittarius should ensure safety.
The manager has expanded production in Germany.
For a long time, the products were primarily in demand in the railway industry. However, direct current products are now also in demand for high-energy batteries for electric cars and in industry. “Completely new sales markets have emerged for us here,” says Brandes.
Growth could now accelerate. In order to reduce dependence on Russian gas and oil, the transformation of energy supply and mobility is likely to gain momentum.
Schaltbau has ambitious plans for its core business. Brandes intends to double the sales of Schaltbau GmbH to around 300 million euros in the coming years. The new plant in Velden should help here, which in the final expansion stage, based on the number of units, should have five times the capacity of the old location.
Factories on the intelligent DC grid
The fact that Schaltbau’s “Next Factory” is CO2-neutral and powered by an innovative direct current system powered by photovoltaics was originally planned primarily as a commitment to climate protection. “Our young managers in particular pushed the issue forward,” says Brandes. But now the concept is helping to reduce electricity costs by 35 percent and secure the supply. In addition, Schaltbau can avoid expensive purchases at peak times and use its own batteries during this time.
Schaltbau also sees the factory as a model solution for future customers who want to modernize their production. The interest in the industry is there. With the research project “DC-Industrie2”, the federal government had also initiated projects for the direct current supply of production halls.
“With a local direct current network in the factory, it is easier to compensate for energy fluctuations that, for example, are caused by weather-related renewable energies or increasing fluctuations in the public supply network,” said Timm Kuhlmann from Fraunhofer IPA in Stuttgart. All electrical systems in factories could be coupled to form an intelligent DC network. Among other things, tests were carried out in the new Mercedes flagship factory Factory56.
For Schaltbau, the factory is also a symbol of a new beginning. The company, founded in 1929, has an eventful history behind it. After a painful restructuring, the company was taken over by the financial investor Carlyle for around 700 million euros last year and taken off the stock exchange. “The comparatively short-term thinking of the capital market sometimes prevents sensible long-term decisions,” says Brandes. Without the listing, you can rebuild in peace and plan for the future.
High degree of automation
The Bavarian company is a specialist in direct current technology, which is used in wind turbines, solar systems and fast charging stations for e-mobility. The demand for protection technology from Schaltbau is also increasing accordingly.
Manufacturing in Germany is only possible with a high degree of automation. The small parts warehouse in the new plant is fully automated, ceiling-guided swarm robots and driverless transport robots are to be on the move. The storage is done by palletizing robots.
The automation industry is expecting a special boom. “There has been a trend for some time, for example, to bring some production back to Europe,” said Marc Segura, who recently headed ABB’s robotics division, to the Handelsblatt. “This effect will continue to increase.”
Schaltbau now wants to concentrate entirely on electrical engineering. The company once had big expansion plans and bought several mainstays together. For example, the train door specialist Bode is part of the portfolio. “In the long term, we will realign the Schaltbau Group into a high-growth specialist in DC protection technology,” says Brandes. In the future, Schaltbau should therefore concentrate on the direct current technology business.
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