Grenzebach Group Grows Despite Challenging Circumstances
- Opportunities in strong core business areas and global developments
- Strategic positioning and focused investment in innovative technologies
- Entrepreneurship, high resilience, and close cohesion across the Group
HAMLAR/Germany. 2024 was a positive business year for the Grenzebach Group. Amidst a challenging geopolitical and economic landscape and the impact of flooding at the headquarters in Hamlar, the Group still succeeded in registering a year of growth. This positive development can be attributed to the proximity to the market and customers, targeted investments in core business areas, and the outstanding commitment of employees at all locations worldwide.
Key Financial Indicators for 2024*
Dr. Steven Althaus, Grenzebach Group CEO, communicated stable key figures that demonstrate the company's resilience in the face of an ever-changing market environment: Revenue rose by 5 % to 483 million euros, though incoming orders remained at the previous year's level of 495 million euros. The operating result (EBIT) is 21 million euros, and the cash flow from operating activities is positive.
“We overcame numerous challenges last year, including the catastrophic flooding in Hamlar and geopolitical changes. We are staying on track and shaping change in the market together with our customers. After all, more than ever before, customers expect us to react quickly to changes. We will continue to develop and adapt our business for further success. This is why proximity to our customers remains the key to success.”
Core Markets and Global Development
In the Glass area, demand for glass production technologies and solutions for photovoltaic systems in Asia remains high. Trends have also been positive in North America. Following previous years' exceptionally high order levels, the market is normalizing and becoming increasingly saturated, leading to a 15 % decline in incoming orders. In Europe, demand was well below expectations. The Chinese market is exhibiting stable sideways movement. The US market offers new opportunities for expansion, which are supported by investments in the US locations and targeted program management with key customers. A major advance in the Glass business is the further development of the annealing lehr, resulting in increased efficiency and precise control of the heating and cooling sections.
Grenzebach remains on course for growth in the Building Materials area. Demand for calcining and gypsum board plants remains high. Incoming orders normalized after the strong previous years and fell by 18 %. A demand for more sustainable products and solutions is expected to rise in the coming years. Investment in energy-efficient technologies such as the Ultra High-Efficiency Dryer and carbon-neutral melting processes meet current demand and stimulate interest in profitable future technologies.
Strategic Realignment and Investments
Grenzebach is sharpening its focus on the core businesses of Glass and Building Materials as well as the growing business fields of Power & Energy (USA) and Casting (China). As part of a strategic realignment, a review was conducted of the Intralogistics, Additive Manufacturing and Friction Stir Welding business fields, as well as the subsidiary inos Automationssoftware.
The market environment for Intralogistics remains challenging. Incoming orders rose by 10 %, and the Data Center Solutions product area showed promising growth opportunities. The increasing demand for high-performance data centers represents enormous potential for Grenzebach, and the Group will invest more in this area. By contrast, for business reasons, the decision was made to completely phase out the automotive sector. Existing contractual obligations will be fulfilled, with a view to winding up operations by 2027.
The Power & Energy business field recorded a 108 % increase in incoming orders, far exceeding its budget targets. With demand remaining high, Grenzebach is investing in a new location in Beachwood, Ohio, which will officially open in June 2025. Synergies between Power & Energy and Data Center Solutions also present additional opportunities for growth.
In the Special Technologies area, incoming orders rose by 13 %. The Casting business is characterized by a stable business situation. Other notable successes included the prototype development in the Additive Manufacturing area and the transformation of Friction Stir Welding into a system integrator.
Investment in Sustainable Technologies and Global Locations
Grenzebach invested 7 million euros specifically in research, development and the expansion of global infrastructures. The focus of development work in the Building Materials and Glass businesses was on energy-efficient, resource-saving, and digital solutions to optimize plant efficiency, minimize the carbon footprint, and open new business models. In the Casting business, automation solutions were implemented to maintain quality standards and increase efficiency. International investments in locations, including Beachwood (USA) and Iasi (Romania), are increasing production capacity and market flexibility.
Althaus continues: "It's not only our global positioning that matters, but also the way we work together as a Group in the interests of our customers. We are now benefiting from a group-wide ‘Operational Excellence’ initiative launched in 2023, which we are continuing to pursue."
Resilience and Future Orientation
The severe flooding in June 2024, which affected the headquarters in Hamlar for several weeks, had a lasting impact on infrastructure and production. It was and is a watershed moment for the location. Nevertheless, the ability to deliver was guaranteed thanks to global cooperation. In the aftermath of the floods, a transformation process is necessary. The strategic adjustments made in response to the flooding reinforce the company's resilience in the long term.
The Grenzebach Group believes it is well positioned for the future. "Our customers expect fast responsiveness and tailor-made solutions. Through our unwavering pursuit of excellence and customer satisfaction, we are consolidating our position as a trusted global partner," concludes Althaus.
Additional Information
*The financial indicators mentioned are provisional. The attestation and adoption of the consolidated financial statements are pending.
