© VARTA AG Electronics Production | January 16, 2020
600 new German jobs as VARTA expands production again
The lithium-ion battery market continues to experiencing growth, currently the market is poised to continue to move forward with an annual growth of about 30% – and VARTA wants a big piece of the pie.
The company says that it has therefore decided to significantly expand its production capacity; once again. And also more quickly than originally intended. Following last year’s plans to increase production capacity to over 150 million cells per year from 2022, VARTA is now looking to expand its capacity to 200 million cells per year – and is planning to implement this by the end of 2021. The current plan would have the company at a production level of at least 100 million cells per year as early as mid-2020. “Our future clearly lies especially in the field of lithium-ion technology. Here, as an innovation leader, we set the industry standards. This has allowed us to gain unique competitive advantages, which we safeguard through patents and rapid advances in innovation. With the accelerated expansion of our production capacities announced today, we are not only continuing to build on our strong market position, but are also creating further 600 new jobs in our region,” Herbert Schein, CEO of VARTA AG, says in a press release. As one can imagine, the capacity expansion requires an additional investment volume of around EUR 125 million (for additional 50 million cells per year). VARTA intends for the investment volume to be financed by using the cash flow from operating activities, advance payments from customers and, in the medium term, the cash flow of the newly acquired VARTA Consumer business. The company also have the option to draw on a revolving credit line of EUR 80 million. The investments will be made at the two main production sites in Germany, in Ellwangen and Nördlingen. At the Ellwangen site, alongside lithium-ion cell production, a new production facility aims to significantly expand the company’s electrode production. At the Nördlingen site, lithium-ion cell production will also be increased by establishing a new production facility adjacent to the existing plant. With the planned increase in the production capacity the company is will create around 600 additional jobs in this area.