Zollner navigates 2024 with strategic expansions
During the Evertiq Expo in Berlin earlier this year, Evertiq had the chance to talk to Manfred Amberger, Senior VP of Marketing and Sales at EMS provider Zollner Elektronik AG
A lot has been happening with Zollner recently, including an expansion in Costa Rica. What can you tell us about that, beyond what we already know?
“Yes, we recently expanded in Costa Rica, increasing the size of our site there. But in addition to that, we also have ongoing construction in Tunisia, where we're expanding as well. One key focus for us is securing skilled workers, which are a scarce resource globally. Due to the geopolitical situation, we see demand shifting – from China to the US, to Eastern Europe, and back and forth. As an EMS provider, we need to be where the customers need us, which means we need to have solutions in all locations.”
Mr Ambager says that one influence behind the decision to expand in Costa Rica are the various acts they’ve introduced. There are similar policies in Europe as well.
“Customers require local support, whether it's from the East or West coasts of the US, or from Costa Rica. We serve our customers from these different sites, offering a combination of low-cost, high-complexity, and low-complexity solutions, all while being local to the customer.”
The expansion in Tunisia—when can we expect that to be fully operational?
“We've already started with a rented building for the expansion, but we're also currently also under construction. I believe by next year we should have our own site up and running in the Tunisia area.”
Zollner has certainly been busy in the first half of the year. How has it been overall?
“Like many others, we felt a bit of a softening in the first half of the year, after the pandemic. A lot of customers had high stock levels they needed to work through. But we're now seeing more and more signs that this should flatten out. And we see already some signs from customers that demand is increasing. It's not the same for each and every industry, but for the most part. And Zollner serves, at least seven main industries, which gives us the potential to leverage growth.”
Can we expect this levelling out to continue, and maybe even see growth in the near future?
“Yes, that's what we expect from the market, and what we're already seeing.”
So the second half of 2024 should be better?
“This is what we said and analysts have said all the time. By the fourth quarter, things should pick up, and we're already seeing good signs of that, fortunately.”
