Schott relies on semiconductors and augmented reality glasses

In the glass packaging business for medicines and vaccines, the boom is followed by a dip. Schott does not see this as a problem and is also focusing on other products.

, and Mark Rodriguez

2024 January 2 . 5:54 AM

2 min read

The glass technology group Schott AG. Photo.aussiedlerbote.de

Turn of the year - Schott relies on semiconductors and augmented reality glasses

The Mainz-based specialty glass manufacturer sees growth potential in business with the semiconductor industry and with glass for augmented reality glasses. CEO Frank Heinricht also expects growth for the pharmaceutical division, which will be listed on the stock exchange in 2023. The fact that Schott is included in many products but is not recognizable as a name from the outside does not bother him. "That's the fate of a materials group," Heinicht told the German Press Agency in Mainz.

Glass is playing an increasingly important role in the semiconductor sector, the company boss emphasized. "Modules on plastic chips are reaching their limits due to temperature problems. Glass can bring many advantages here," explained Heinricht. Special glass can be used to build modules that have a precisely determinable expansion at certain temperatures thanks to certain material mixtures.

He sees "blockbuster potential" for augmented reality glasses. Augmented reality (AR) means augmented reality; digital objects are superimposed on the real environment for users of these glasses. Heinricht said that these glasses require several hundred coatings and lenses, which have to be placed on top of each other. "We are on board with a very big player in this field." Schott has set up a plant in Malaysia with around 500 employees. "This is an area in which we are investing heavily."

In the household appliances and pharmaceuticals sector, Schott, like other companies in the industry, recently had to contend with large inventories held by customers during the coronavirus pandemic. Employees at the company's headquarters in Mainz and in Mitterteich in Bavaria were put on short-time working - in the production of Ceran cooktops and in the production of glass tubes and rods for the pharmaceutical industry, among others.

"Removable syringes are a huge issue"

"The important thing is that the market itself is growing solidly," said Heinricht. Schott will continue to benefit from the increasing number of injectable drugs with its glass packaging or syringes for medicines. Vaccinations also remain a driver, "not only Covid, but also RSV and a possible combination vaccination against Covid-19, RSV and influenza." Schott also wants to take a slice of the boom in syringes, such as those produced by Novo Nordisk and Eli Lilly. "Removable syringes are a huge topic," said Heinricht. "We are on board and a sought-after partner."

According to Heinricht, Schott intends to invest the proceeds from the IPO of the pharma division this fall primarily in the green transformation, investments in machinery and acquisitions. "We now have more options here." Possible takeovers are being looked at in the pharmaceuticals, optics and liquid glass segments in medical technology. Schott is looking at how the portfolio can be sensibly supplemented without too much investment.