Two thirds of sales for global market leader in industrial training and education and one of the largest suppliers of automation technology, Festo AG, were generated outside Germany in 2004. Despite continuing adverse currency effects, Festo succeeded in growing sales by some 7% over its previous fiscal year.
In South Africa, the ability to be a single-source resource for automation projects consolidated Festo's position in the local market. As the provider of a complete range of pneumatic components and integrated systems, this trend is expected to continue, due to manufacturing activity. Festo Didactic continues to experience high growth, both in the number of attendants on their approved training courses and in sales of training systems to the education sector, as a result of local skills development initiatives.
The global market for automation technology grew in 2004, driven by strong growth outside Europe. Following the strong demand from car manufacturers and their suppliers in 2003, there was a marked shift in 2004 toward activities with customers in the printing machine and machine tool industries.
Festo was able to adapt to the shift in demand toward project business by extending its product and service portfolio and expanding its systems business. There was strong worldwide growth in the field of handling technology, driven by demand for ready-to-install solutions and sub-systems. Festo succeeded in extending its leading position in Germany in this segment.
With its globally aligned corporate strategy based on speed and flexibility, Festo was well prepared for the upturn in new orders, which started in late 2003 and continued in 2004. In 2004, Festo AG invested over 100 million Euros in its global facilities. The company thus laid the foundation for further qualitative and quantitative growth in sales, which is expected in the next five years. At its largest production and logistics facility in Rohrbach, Germany, Festo has secured its leading position in global market supply with an investment of 30 million Euros. By realising its 'Production on demand' strategy, Rohrbach will become one of Europe's most modern manufacturing sites for cylinders, handling systems and electrical drives.
Festo's new Centre of Excellence for Electronics in Ostfildern Scharnhausen, opened in December 2004, is designed to extend international technological expertise, geared toward future customer needs. With almost clean-room conditions and leading-edge manufacturing and testing technology, the facility will produce electronic components and PCBs for new mechatronic products with integrated intelligence and diagnostic functions, such as CPX valve terminals or electrical drives.
While Festo is a supplier for factory automation it is increasingly involving itself in process automation and can already, in 2005, supply sector-specific products for the process industry 'from a single source'. In 2005, Festo further aims to add global market share in its systems business.
Festo can provide solutions for a wide range of applications in automation technology. Festo technology also includes condition monitoring, high-speed solutions, services or training - which were presented at this year's Hannover Fair. Some 70 new products from the company premiered in Hannover, including numerous new electrical drives.
For more information contact Heimo Spreng, national sales manager, Festo, 011 971 5500, [email protected], www.festo.com
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