Yearbook_2023/2024

Compression – Strategy and market development support growth course

Compression

The Compression Division recorded a significant increase in sales in 2023 and secured its leading global position in compressor service. A new plant in China and new service locations in Saudi Arabia and the USA are supporting global expansion. Rapid progress is also being made in the field of hydrogen mobility.

After a high-growth previous year, Compression again recorded impressive sales growth of 17.5 percent in 2023. With around 2,500 employees, the HOERBIGER Group’s largest Division gained market share worldwide and is now the global number one in reciprocating compressor service.

Wolfgang Sautter

"The basis for our steady growth is innovation in our core business as well as in our growth markets."

Wolfgang Sautter
Head of Compression Division
and Member of the Executive Board

 

Investments in production facilities
To accommodate the global expansion, HOERBIGER opened new service locations in Saudi Arabia and the USA last year. In addition, considerable investments were made in production facilities to successfully manage the enormous growth and increase productivity. At the plant in Pune (India), the entire production process for components in air and industrial compressors market was optimized, thereby increasing the competitiveness of the Air & Industrial market segment. Photovoltaic systems were installed at some sites, making an important contribution to reducing CO2 emissions.

The new plant in China is a milestone in modernization. After a construction and relocation period of only twelve months, a new building was realized in the industrial metropolis of Changzhou, which now unites the activities of the two HOERBIGER Divisions Compression and Safety in China under one roof. The state-of-the-art factory has space for 250 employees and has been in full production operation since December 2023.

In addition to investments in the locations, HOERBIGER also made further progress in digital transformation. The ERP systems and processes were standardized worldwide (the STREAM project). This not only optimizes production processes and internal workflows throughout the Group, but also brings significant customer benefits. For example, production capacities can be balanced directly across plants as required to reduce customer delivery times. And all this with the highest quality.

H₂ mobility gains momentum
In Vienna, HOERBIGER is intensively researching and developing the topic of hydrogen mobility. Following the successful establishment of the Hydrogen Research Center and product development, the first prototype of the new H2 compressor package was installed at Wiener Netze in November 2023. The economical compressor system with high reliability for hydrogen refueling goes into operation in 2024 and supplies the first public buses in Vienna with hydrogen. HOERBIGER has also won its first orders from other customers.

HOERBIGER Motion Control GmbH, based in Bavaria, is a new member of the Compression family. The company, which specializes in piezoceramic products, supports growth in the Flow Control and Motion Control business and secures the supply chain for bending actuators for piezo valves. Innovation is particularly important in this market segment: LasGAM was developed from a customer problem and a solution idea in a record time of just ten months. This is a piezo-controlled gas mixing system that increases the efficiency of metal laser cutting by up to 50 percent. Initial orders underline the customer benefits and secure a further growth area for Flow Control and Motion Control.

Initiatives for 2024
The Compression Division will continue its growth path in 2024 and is aiming to gain further market share. The goal is to exploit all market opportunities and further increase efficiency. The “Customer Centricity 90” project aims to shorten delivery times to meet customer requirements even better. The market launch of new products is also planned, with the focus on growth initiatives in the areas of aviation and industrial technology, hydrogen mobility, digital products in service, and emissions reduction. These future-oriented topics promise great growth potential for the coming years.

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