SSi Schaefer to expand Johor factory

sSI Schaefer has just signed a building contract to expand their steel manufacturing production area by almost 30% to meet the growing demand from APAC and Middle East/Africa. Confirmed by Brian Miles, Regional Managing Director, this is the latest round of investments the company has made over the last three years. “We now have 34,000m2 of production and warehousing at our Simpang Renggam site in Johor with a staff of 350,” he said, adding, “The total new investment budget is €6 million, which includes a new German-made rolling mill similar to machines operated by our parent company in Germany. This will roll all profiles in AS/RS or rack-clad buildings, plus the machinery for preparation of special steelwork profiles.” “With land and labour-costs rising, we are seeing an increase in enquiries for high-rise racking systems. Shipping a heavy steel profile halfway around the world is obviously not cost-effective; therefore, the SSI Schaefer management has agreed that Asia should become a competence centre for the design and supply of these systems,” said Miles. “We have now built over such 50 systems throughout APAC, incorporating Germanmade profiles with our own product. With the new machinery, we can become fullyindependent. We will be able to deliver these systems to the market faster and at competitive prices.” “This investment was made after securing major automation projects in Australia, Indonesia and China,” concluded Miles, “By 2014, it will represent close to 50% of the company’s return for APAC, Middle East / Africa.”