MANUFACTURING

The ANDRITZ GROUP runs 57 manufacturing and service sites in Europe, North America, South America, and Asia. These sites manufacture and assemble the key components for ANDRITZ equipment and systems. The highly qualified and experienced staff, as well as state-of-the-art production equipment and continuously improved processes, ensure the highest product quality and reliable, on-time order execution.

Manufacturing strategy

In order to remain successful and competitive on the global markets, ANDRITZ pursues a clear strategy to continually enhance its manufacturing competence and presence. The focus is on expanding the manufacturing presence in the growth markets of China, India, and South America, and on further developing and expanding well-established sites in Europe and North America.

The broad product portfolio, from single components to complete machines and to complex plants and services, holds specific challenges with regard to manufacturing equipment and cyclicality management. Procurement management is continuously optimized and adapted to the prevailing market requirements.

ANDRITZ’s manufacturing strategy is based on in-house manufacture and purchase of manufacturing services, taking into account the optimum utilization of its own capacities. In accordance with this make-or-buy strategy, all process-relevant key components for plants and individual products are made and assembled at ANDRITZ’s own workshops. Simple components, on the other hand, are purchased from qualified suppliers, who are subjected to regular quality checks and on-time performance monitoring.

Investments focus on new manufacturing technologies, automation, capacity adaptations at bottlenecks, and targeted enlargement of the value-added chain.

Capacity and time management

Short lead times and on-time production require precise planning, as well as committed and flexible employees. Internally, ANDRITZ uses flextime contracts and a high portion of temporary workforce to cope with cyclical fluctuations and peaks in workload. In addition, handling of the outsourced business volume is continuously improved by efficient supplier management; the pool of suppliers is permanently enlarged with new, qualified companies.

Professional project management ensures that ANDRITZ meets its contractual milestones over the entire manufacturing process chain, from order intake to start-up.

Major developments in 2008

To be able to process the large order backlog as of December 31, 2007 according to schedule, the purchase of manufacturing services was increased during the first half of 2008 – in addition to the full utilization of existing Group-wide manufacturing capacities. As a result of the global economic weakness, workload began to decrease in some segments, particularly in PULP & PAPER, during the second half of 2008. In the HYDRO business area, on the other hand, workload increased during the same period.

The program initiated to achieve the global target of establishing World Class Standards at all existing and newly acquired manufacturing sites was continued, and the following additional projects were implemented:

The acquisition of GE Energy’s hydropower activities has added winding bar manufacture in Lachine, Canada to ANDRITZ HYDRO’s manufacturing capacities. As a result of the acquisition of the majority interest in the GE Hydro Inepar do Brasil joint venture, now ANDRITZ HYDRO Inepar do Brasil (AHI), a manufacturing site for electrical equipment and large mechanical parts in Araraquara, Brazil, as well as a turbine service site in Tampere, Finland, have been integrated into the ANDRITZ manufacturing network.

The acquisition of Kufferath with two manufacturing sites in Düren, Germany and Levice, Slovakia has added technical cloth production to ANDRITZ’s manufacturing capabilities.

Activities for the assembly and testing of stock pumps were combined at the Sanshui, China site. The new pump test center was started up, and construction of the new assembly and logistics center for pumps was commenced.

In Regensburg, Germany the first fully automatic assembly line for wire baskets was successfully started up.

ANDRITZ Kft., Hungary received an award from Siemens Power Generation as ‘Supplier of the Year’ for welded parts.

Manufacturing and service locations of the ANDRITZ GROUP:

EUROPE
Austria: Graz (headquarters of the ANDRITZ GROUP), Weiz Denmark: Esbjerg Finland: Päiverinne, Hollola, Savonlinna, Tampere, Varkaus France: Châteauroux, Saint Martin Le Beau Germany: Bretten-Gölshausen, Düren, Hemer, Cologne, Krefeld, Ravensburg, Regensburg, Senden Great Britain: Hull, Newcastle-under-Lyme Hungary: Tiszakécske Netherlands: Den Helder, Geldrop Norway: Jevnaker Romania: Sibiu Slovakia: Humenné, Levice, Spišská Nová Ves Spain: Madrid Sweden: Nälden, Örnsköldsvik, Växjö, Vallentuna Switzerland: Kriens

NORTH AMERICA
Canada: Brantford, Lachine, Saskatoon Mexico: Morelia USA: Arlington, Houston, Lakeland, Muncy, Pell City, Pittsburgh, San Leandro, Scott Depot, Spartanburg

SOUTH AMERICA
Brazil: Araraquara, Pomerode, Vinhedo

CHINA
Foshan, Sanshui

ASIA (without China)
India: Bhopal, Chennai, Faridabad Malaysia: Selangor Singapore: Singapore