Vecoplan invests millions and enjoys further success – despite Covid-19
The consequences of Covid-19 are extremely serious, presenting many companies with major challenges in 2020. However, Vecoplan AG has been able to continue with its successful development. The business of the leading supplier of machines and systems that shred, convey and process primary and secondary raw materials in the production and materials cycle is currently running as profitably as in the previous year – and after the first half of the year, revenue was even at the previous year’s level. 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,” says Werner Berens, CEO of the Vecoplan Group. Having listened to the market as always, the future-oriented company from Germany’s Westerwald region developed and marketed 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, 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,” says Michael Lambert, CFO of the Vecoplan Group.
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, even in these difficult times. 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 ten percent for the mobile shredding business. “Thanks to these investments, we can continue to meet the demands of the various markets,” says Berens.
Since the outbreak of the pandemic, Vecoplan has been able to avoid measures such as short-time work, job cuts and shutdowns. “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,” says Michael Lambert. The Westerwald company also strengthened its service division in recent months with ten new employees.