MARCHTRENK. There would have been many arguments against an investment of this magnitude in Marchtrenk – other leading industrial companies have shown this: labor costs too high, bureaucracy too burdensome, social and environmental standards high – so expansion will take place elsewhere.
However, despite an export quota of 97 percent, the internationally active intralogistics specialist TGW Logistics has decided to expand its production capacities at its headquarters in Marchtrenk in Upper Austria, rather than to expand one of its production sites in China or Bavaria, even though “the region has lost some of its attractiveness in key indices in recent years,” as the management emphasizes.
From September 2024, around 100 million euros will be invested in an additional 20,000 square meter production building and a highly automated storage system for pallets and containers with a floor space of 6,700 square meters, which is scheduled to be completed in 2026. “We decided to invest in Upper Austria after a very intensive analysis of other locations – for a number of reasons, including the good training of the specialists,” said Henry Puhl, who has been managing the company since February of this year. His predecessor Harald Schröpf retired.
More jobs through expansion
TGW helps customers such as Puma or Zalando and numerous medium-sized companies to deliver their goods to customers more efficiently, more quickly and, above all, more automatically. International online retail in particular is setting the bar high for mechatronics, robotics and software control. In high-bay warehouses, goods have long been brought from A to B and correctly picked by autonomously driving robot carts. This means that jobs can be saved.
The opposite is the case at TGW due to the major investment. Around 300 additional jobs are expected to be created, although this project will be the first time that TGW itself will use autonomous robots that can transport containers with parts from the warehouse to the assembly area completely independently.
Image: TGW
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Image: TGW
Many new positions will need to be filled for shift work (currently only two shifts due to the drop in orders). Of the 4,400 employees across the group, 2,500 currently work at the Upper Austrian locations in Marchtrenk (900) and Wels (1,600). 300 more will now be added.
The past financial year was not easy for the group, as reported: earnings before interest, taxes, depreciation and amortization slipped into the red by 600,000 euros after a plus of 39.1 million euros in the 2021/22 financial year. Sales of 955 million euros (after 924) were achieved. In 2023/24 (as of June 30), the trend in sales and profits is showing an upward trend again, the company says. A profit will be made.
“We have consciously made this decision now because we believe in the potential of the industry. We expect that the reluctance of intralogistics customers worldwide to invest will be over by 2026,” says Puhl confidently. The 100 million will be financed from equity and through banks.
