Bosch Rexroth – Strengthening Their Regional Presence
January 9, 2024
Bosch Rexroth knows it’s critical that their products are available to customers when and where they need them. So, to improve the availability of their products and the delivery speed, they’re continuously developing their regionally balanced Bosch Rexroth production network, while also aiming to create high-performing, resilient and sustainable supply chains.
In 2022 they increased investment in their global production network, across 46 production sites, to €274 million, the highest figure in ten years. Not only have they been modernizing existing sites – investing in buildings, machinery and tools, but they’ve also established new innovative sites. Their goal is to produce regionally, and therefore close to their customers and suppliers. This not only contributes to cost and risk reduction, but also strengthens their presence as a local company in the respective region. Furthermore, these measures will also enhance their sustainability, as they’ll optimize production processes and reduce transport distances.
New Bosch Rexroth plant in Slovenia
Bosch Rexroth has been operating successfully in Slovenia for 25 years. Up until recently the production and engineering of automation and electrification solutions has been carried out at production facilities in Škofja Loka, Železniki and Šenčur. These three existing sites in Slovenia have been merged into a new plant in Brnik, which now bundles and expands the existing manufacturing in the region. All of the approximately 400 associates of Bosch Rexroth in Slovenia are now working at the new Brnik site.
The newly built location next to Ljubljana Airport will create additional space for growth and future activities in manufacturing and engineering, for example in the electrification of mobile applications. The core products produced in Brnik are motors for all kinds of automation and electrification solutions. This supports the shift from combustion engines to electric drives in off-highway mobile applications such as cranes and excavators. The manufacture of these products at the new Bosch Rexroth factory has been gradually ramped up since June 2023.
The new plant in Brnik creates more than 120 new jobs in manufacturing and engineering. It features a 24,500 square meter production facility and offers plenty of space for future growth and development of the company in this area.
New Bosch Rexroth plant in Mexico
Bosch Rexroth’s new manufacturing plant in Querétaro, Mexico, will increase capacity and help them strengthen local production for the North American factory automation and hydraulics market, as well as shortening delivery routes.
The new 42,000 square meter manufacturing plant has had a €160 million injection and will create about 900 jobs by 2027.
Production has already begun, with the manufacturing of hydraulic pumps, motors and valves for mobile machinery such as excavators, forklifts and tractors underway since June. We’re also preparing to ramp up production of other hydraulic components and linear motion technology products.
Their local-for-local strategy helps them increase the capacity, flexibility and robustness of supply chains, reduce the CO2 footprint by manufacturing products locally, and achieve shorter delivery times. With their growing production capacity in this region, they can react even faster than before to customer requirements and meet the growing demand for components and solutions, serving customers even better and more efficiently in the future.
Investment in Bosch Rexroth’s sites in Lohr am Main, Germany
They are currently investing over €125 million to increase the performance and future viability of their industrial hydraulics and factory automation business at their headquarters in Lohr. The focus will be on coordinated investments, modernization, bundling, and optimization. Here are some examples.
Electrification and Automation business unit
They have invested around €25 million in the electronics manufacturing and logistics of our Automation and Electrification business unit to support the development of their industrial automation business.
Besides investing in their electronics production, to ensure high quality, flexibility and efficiency, they’re building a new logistics center specifically for the automation business. A floor area of around 8,100 square meters will create space for around 10,000 high-bay storage locations for pallets and around 63,000 small load carriers.
Both incoming raw materials and manufactured products and spare parts will be stored there or prepared for shipping. In future, almost three times as much storage and logistics space will be available. These developments will enable us to meet our customers’ increasing demands for ever higher product availability, while helping them to process orders and service requests faster and more efficiently. Not only that, but they will have space for the further development of the automation products business. Construction started in 2022, and commissioning is planned for the first quarter of 2024.
Industrial Hydraulics business unit
At their foundry in Lohr, they’ve spent around €40 million on more modern technologies and improved processes. This includes optimizing the casting plant, integrating new automated equipment for fettling, and expanding the melting operation with a new melting furnace. Casting is one of their core competences. Their foundry produces complex and highly stressed hydraulic castings for delivery to Bosch Rexroth plants worldwide and is an essential part of their supply chain. With the investments and optimizations in Lohr, they want to strengthen their strong market position in high-quality hydraulic casting, which they have built up in recent years.
To improve processes and provide space for growth, they plan to build a new logistics center with state-of-the-art warehousing and logistics facilities at a cost of around €20 million. The new facility will measure around 8,400 square meters and will balance the flow of materials and intermediate storage in production, speed up delivery to customers and significantly reduce transport within Lohr.
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