The HARTING Technology Group based in Espelkamp, Germany, sizably increased its turnover for trading year 2016/17 that ended on September 30. The family owned and managed global company saw a 14.7% increase in turnover, up to €672 million ($791 million) – the highest figure in the company’s 72-year history.
“We are really pleased with the growth in business, said Company Chairman Philip Harting. “We are still on course towards becoming a global company. More than ever before, our success relies on our global corporate network of development, production and distribution companies. Customers see our products as some of the world’s best connectivity solutions and services in our industry.”
The transport technology, machine manufacturing and automation and robotics markets were the main drivers. All of the regions where HARTING has a presence contributed to the Group’s positive results. Turnover went up 12% in Europe (excluding Germany) and the Middle East (EMEA), reaching €225 million. But the biggest increase was seen in Asia/Pacific and the Americas regions – each showing a 22% rise. Turnover went up to €158 million in the Asia/Pacific region and €73 million in the Americas region. And business growth in Germany was also positive. “I am particularly pleased that we have gained ground in our home market,” said the chairman. At home, Technology Group turnover went up 11% to €216 million. The Technology Group generated two-thirds of overall turnover outside Germany (67.8%, previous year’s 66.7%).
The Technology Group is progressing with its international growth strategy and extending its global production network, with new plants in Chennai (India) and Agnita (Romania). There was also major expansion in Sibiu. Components for charging points for electric cars are manufactured in Sibiu and Agnita.
HARTING produces encapsulated cables and cable harnesses at the new plant in Silao, Mexico. Following the initial ramp-up phase, staff numbers are scheduled increase significantly from the current 35 over the next three years. Mexico is the partner country for HANNOVER MESSE 2018. “And we are expecting plenty more momentum from this,” said Philip Harting.
Strong turnover growth and investment in the future have had a positive effect on personnel, explained Michael Pütz, Senior Vice President Human Resources. The number of employees (including trainees) rose to 4,639 in the 2016/17 trading year—an increase of 8.2%. 104 new jobs were created in Germany, and 249 at international production plants and subsidiaries. As of September 30, a total of 2,500 people were working at German HARTING locations and 2,139 overseas.
The Technology Group saw a positive start to the 2017/18 trading year. “Our gut feeling is good, as the order situation is good,” said Philip Harting, pointing to the automotive and other sectors. After VW, the HARTING Automotive subsidiary is now also a Tier 1 supplier to the BMW Group.
”We started the new trading year with a good tailwind and are more optimistic about development than we were a year ago. But we remain vigilant,” stressed Harting. The Technology Group is anticipating a 5 to 6% increase in turnover for the current 2017/18 trading year – slightly above market growth. The German Electrical and Electronic Manufacturers’ Association (ZVEI) expects a 4% growth in the global electrical market over the next calendar year.