Despite the major challenges presented to companies by the global Covid-19 pandemic, Vecoplan AG reveals it has been able to continue with its successful development and further invest in the company.
The supplier of machines and systems that shred, convey and process primary and secondary raw materials in the production and materials cycle reported that business is currently running as profitably as in the previous year. In fact, even with the country in lockdown and huge challenges presented by Covid, revenue was already level with last year by the end of H1, said the company. Vecoplan felt this was reason enough to continue to invest in production modernisation and personnel.
“Despite Covid-19, our business is still very stable, since we’re working through a high backlog of orders. One reason for these orders is our development offensive and the resulting product launches of recent months,” said Vecoplan Group CEO, Werner Berens.
Having listened to the market, the company from Germany’s Westerwald region, developed machines to match demands. These new developments have expanded Vecoplan’s product portfolio, enabling the company to provide its customers with comprehensive support, even in very difficult applications. This, in turn, leads to a continuously-high number of requests. However, Vecoplan Group CFO, Michael Lambert explained, “there will be a time lag in the recovery of incoming orders because, although the demand for Vecoplan machines is enormous, many companies are taking their time over final investment decisions due to the uncertainty of the current situation.”
The company’s goal of increasing added value for its customers, as well as the strong demand for its products, were key factors in Vecoplan’s decision to invest several million euros in the further modernisation of its production. The company intends to use this investment to build up capacities and optimise processes. Vecoplan will invest the lion’s share of the capital in the production of shredding technology and around a third of it in conveying and storage technology. The subsidiary in North Carolina, USA has already invested around 10% for the mobile shredding business. “Thanks to these investments, we can continue to meet the demands of the various markets,” said Mr Berens.
Since the outbreak of the pandemic, Vecoplan has been able to avoid measures, such as short-time work, job cuts and shutdowns. Michael Lambert said: “We still expect the markets to fully recover, so we’re continuing to invest in the training and further education of our employees – and we’ll even be greatly expanding our workforce.” The Westerwald company also strengthened its service division in recent months with 10 new employees.