Rheinmetall subsidiary - Automotive supplier Pierburg plans to invest millions
Pierburg Pump Technology, a automotive supplier based in Hartha, Saxony, intends to expand its business field. The company plans to invest 30.7 million Euro, according to its subsidiary of the stock-listed Rheinmetall AG. The Saxon Economic Ministry has approved funding of 7.66 million Euro for these measures from the Federal-State Program "Joint Task Improvement of the Regional Economic Structure".
"Pierburg Pump Technology has recognized the signs of the times," says Economic State Secretary Thomas Kralinski (SPD) during the presentation of the grant. Pierburg is broadening its scope and will tap into new markets beyond the automotive sector using new technologies.
Intense competition in the core business
In the current core business, the production of water pump systems, Pierburg Pump Technology GmbH faces intense competition. Therefore, the company intends to tap into new markets such as Pedelec drives, supercondensators, hydrogen system components, house heating pumps, and switchgear parts by 2027. Planned is the acquisition of corresponding machines, plants, and assembly lines. For the production of supercondensators, Pierburg reportedly converted an existing, unfinished hall.
"Political support is important for us to be able to offer further highly qualified jobs in the region," says Managing Director Christoph Müller. The funding is a help in setting the right course for the future.
Currently, there are approximately 400 employees in Hartha on a total area of 45,000 square meters, working in various departments. The site has belonged to the Rheinmetall Group for more than 30 years.
- The investment from BMWi further underscores theAutomobile industry's interest in supporting innovative Business segments likePierburg Pump Technology.
- With the funding from BMWi and Rheinmetall AG, Pierburg Pump Technology is making a significant Investment in the millions in new technology for its expansion into new markets.
- The partnership betweenPierburg Pump Technology and Rheinmetall AG in theAutomotive industry will also benefitRheinmetall's other Business segments, such as Rheinmetall Defence.
- The expansion ofPierburg Pump Technology's business field into non-automotive industries such as Pedelec drives and hydrogen system components is a strategic move to diversify its revenue streams in the face of increasing Competition in the core business.
