Germany-based material handling system supplier SSI Schaefer is expanding its steel manufacturing production facility in Johor, Malaysia, by almost 30% to meet the growing demand from the Asia Pacific (APAC) and Middle East & Africa (MEA) regions.
This $7.7 million investment includes a new German made rolling mill, which will roll all profiles that are used in AS/RS systems or rack clad buildings, in addition to machinery for the preparation of special steelwork profiles.
“With land and labour costs rising, we are seeing an increase in enquiries for high rise racking systems. Shipping heavy steel profiles halfway around the world is obviously not cost effective; therefore, SSI Schaefer management has agreed that Asia should become a competence centre for the design and supply of these systems. The new machinery will enable us to deliver these systems to the market faster and at very competitive prices,” says Brian Miles, regional managing director, Schaefer Systems International.
“This investment was made after securing major automation projects in Australia, Indonesia and China. Automation is becoming a significant proportion of the company’s turnover, and by 2014 it will represent close to 50% of the company’s return for APAC and Middle East & Africa,” adds Miles.