Kreuzwertheim | Kurtz Ersa will achieve sales of around 290 mio. Euro and – despite a 50 mio. Euro decline in sales – a positive result in the financial year, which is characterized by geopolitical tensions and a global recession. At the beginning of the year, moderate growth was still expected for 2024, as forecast by leading economists. However, due to the global political and economic uncertainties, business performance was at a lower level.
A central element of our business strategy is the implementation of our “global footprint”. This means that we produce where our markets are and where we can be competitive. This does not mean that we now arbitrarily distribute everything we build in Germany around the world. We specifically manufacture where we are no longer competitive in the “high-price location of Germany” or where geopolitical conditions dictate localization. In this way, we are systematically driving forward our planned internationalization. Specifically, in 2024, in addition to intensifying our business activities in India, this included opening new application and demo centers in Vietnam and Thailand and opening our branches in Singapore and Romania.
Another important milestone was the opening of our new production facility in Ciudad Juárez (Mexico) in September. With the commissioning of the plant, capacities in Mexico are being further expanded and supply chains optimized. The expansion also led to a deepening of expertise from Europe to Mexico, so that even more competent support for Kurtz Ersa customers in the region is now guaranteed – also thanks to the expanded Mexican team. Other positive developments include new sales companies in Romania and Singapore. This reflects the great importance of the sales markets in Europe and Southeast Asia. In order to further expand our customer service and support there, all preparations have been made to be able to serve customers in close proximity with our own location in Singapore from January 1, 2025.
In the Electronics Production Equipment segment, personal customer support was maintained at a high level and the broad range of products and services was presented at trade fairs and customer events. Key applications and technology trends – such as AI, electromobility, smart homes, smart factories, green energy generation and mobility in urban centers – are at the forefront here. The strategy of offering solutions from a single source is confirmed by the increasing demand for automated production lines. The Automation division under the new management of Managing Director Hubert Baren with its two locations in Wertheim and at our subsidiary SCHILLER AUTOMATION in Sonnenbühl is making an important contribution here. The Moulding Machines division with its foam and foundry machines is realigning itself with the new Managing Director Andrea Carta and is also consistently globalizing its range of services. The new Additive Manufacturing business area with its start-up character is currently intensifying its market penetration following the “proof of concept” phase and has been able to win its first printing orders and deliver prototypes to selected customers.
Kurtz Ersa currently has around 1,600 employees under contract. In 2024, 30 new trainees started at Kurtz Ersa; in total, we currently have 110 trainees and dual students, which means a trainee ratio in Germany of around 10%. The “Pulse Check”, the employee survey carried out at the German sites in the fall, once again showed a positive development in all the clusters surveyed. For example, the employees´ commitment to Kurtz Ersa was very pleasing – over 80% of the workforce is very satisfied with Kurtz Ersa as an employer. Despite the difficult market environment, the company is continuing to recruit; there are currently around 30 vacancies with a focus on R&D and software.
It is also pleasing to see the constant further development of the measures for the “GoGreen250” sustainability initiative, with which Kurtz Ersa aims to be CO2-neutral by the time it celebrates its 250th anniversary. By winning the silver medal in the ESG rating, the Kurtz Ersa Group has come a big step closer to its CO2 target. ESG stands for “Environment, Social and Governance” and measures the voluntary contribution of companies to sustainable development over and above legal requirements. In this ESG rating, Kurtz Ersa was up to 31 points above the industry average in all four categories (environment, labor and human rights, ethics, sustainable procurement). Particularly noteworthy: Kurtz Ersa is among the top 4% of companies in its core competence, the electronics industry, that make a contribution to sustainability above and beyond the legal requirements.
“In view of the difficult circumstances, we are not dissatisfied with the result achieved – on behalf of the Kurtz Ersa management, a big thank you goes to the entire workforce,” said Thomas Mühleck, newly appointed CEO in September. “It is important to be close to our local customers without neglecting the plants in Germany. ‘Made in Germany’ is no longer enough today, the local competition is too strong for that. But our combination of central expertise and regional market development can give us decisive advantages. This is why we are consistently implementing our ‘Global Footprint’ strategy. We have prepared ourselves for a market environment that will remain tense in 2025 and are tackling the implementation with courage and confidence. Thanks to our global orientation, our many innovations and our clear focus on the requirements of our customers, we definitely see opportunities to grow moderately against the trend in mechanical engineering!”
