A medium-sized company specialising in sheet metal processing in Hessen, Germany, expanded and modernised its production facilities to meet modern standards. This safeguarded existing jobs, created new ones and allowed their rural town to become industrially competitive.
- 29 January 2020
Originally, we received the order to create 15 new jobs. Because of the good economic situation, 50 new employees joined the company within three years. We are very pleased and proud of it.
The 60-year-old company, Franz Hof GmbH, manufactures components, special parts and housings from sheet metal. The project allowed the company to carry out structural extensions of its existing establishment and buy new machinery.
A fully automatic high-bay warehouse was built and state-of-the-art laser, punching and bending machines were bought. A new enterprise resource planning (ERP) system was introduced, and the company’s IT system was upgraded. Through this modernisation programme the company exceeded expectations and created around 50 new jobs over three-years.
Job creation
Franz Hof was founded in the early 1960’s as a locksmith. Today it is a rapidly expanding subcontractor for blanks – blank, flat pieces of steel that can be pressed to make parts – and assemblies made of steel, stainless steel and aluminium. It makes parts for operating tables, motorhomes, machine tools and the aviation industry, in flexible quantities. The project allowed the company to change its production processes and machinery and bring them up to date with current standards and automation.
The company initially expected to create 15 new jobs with the upgrades. However, it did so well economically that it was able to hire 50 additional employees. Franz Hof now has a current workforce of 120.
Competitive advantage
The investment into Franz Hof was a way of securing the company’s long-term future. Buying new machinery enabled the company to meet current market prices for its products. This allowed it to pass savings directly onto customers, giving the company a clear competitive advantage.
Franz Hof is in Haiger, a country town in the state of Hessen. Investment in the company boosted this mainly rural region’s economic and production output.One of the company’s principles is ‘our doors are always open’. Even the craftsman situated next door is one of their customers. It supplies 350 customers in over 20 different industries.
Total investment and EU funding
Total investment for the project “Extension of an establishment” is EUR 4 050 000, with the EU’s European Regional Development Fund contributing EUR 405 000 through the “OP Hessen EFRE” Operational Programme for the 2014-2020 programming period. The investment falls under the priority “Enhancing the competitiveness of SMEs”.