Industria
Phoenix Contact aligns its structures even more internationally and brings its value creation closer to the sales markets
Global challenges, such as tariffs and geopolitical uncertainties, are also influencing the decisions made by Phoenix Contact. "The political framework conditions are volatile, and we as a company must remain flexible and adaptable", explained Leidecker. The company is positioning itself for the future, aiming to accommodate the global growth that is being witnessed in particular in the core regions of China , India , and the USA . As part of this, Phoenix Contact is further expanding its local value added chains in these countries.
Developments in China remain positive for Phoenix Contact. "We are known there as a 'Chinese-German company' and we benefit from our long-standing presence and good reputation", said Leidecker, describing the situation. The markets are also developing stably in other regions, including the USA and Mexico . The company is relying on a balanced international presence in order to spread risks and seize opportunities.
Global supply chains depend on capacity, technology, and speed. For this reason, Phoenix Contact is investing in Mexico , in the Querétaro region. This 20,000 square meter location, of which 10,000 square meters is for production, will play a central role in the global production network in the future. The Querétaro region is located in central Mexico between the central ports of Veracruz and Manzanillo , and is logistically well-connected to the US.
Phoenix Contact opened a new location in Vietnam at the beginning of November. This is a strategic milestone for Phoenix Contact in Southeast Asia . The plant near Ho Chi Minh City combines production and logistics for the core businesses of Power Reliability and Automation. This location, with around 100 employees and state-of-the-art manufacturing processes, will serve regional and global markets.
Phoenix Contact is also clearly committed to Germany as a location, as demonstrated by its extension to the existing logistics building in Blomberg. This building is scheduled for completion in 2028. The fully automated logistics building will provide 200,000 m³ of additional storage volume. At more than
100 million euros , this is the company's largest single investment. The decision for the logistics building is a future-oriented investment.
This year, Phoenix Contact is experiencing a moderate market recovery in the upper single-digit range. This is a positive development compared to 2024. Nevertheless, we have not yet recovered the decline in sales witnessed in 2023. We will continue to focus on our core business as well as on the sustainable alignment of our structures. Phoenix Contact is expected to close the fiscal year 2025 with a turnover of 3.3 billion euros .
"Despite all the challenges, we are convinced that technology is the key to a sustainable future", stated Leidecker. Therefore, Phoenix Contact also focused on innovation, cooperation, digitalization, artificial intelligence, cybersecurity, and energy resilience at this year's trade fair appearance. These topics are the levers for the future. Phoenix Contact also demonstrated practical applications that offer real added value to its customers.
Sustainability also remains a central issue for Phoenix Contact. The company is working in a targeted and continuous manner to design its processes and products more sustainably, from development, through production, right through to logistics. "The current regulatory density makes it difficult for companies to implement sustainable solutions quickly and efficiently. "That said, sustainable business practices and economic success are not mutually exclusive", stated Leidecker.
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