02/14/2022 | News
BIRCO invests in future growth and the Baden-Baden site
Frank Wagner, managing partner of BIRCO GmbH explains: "Of course we would have been happy about a positive decision, because the merger would have offered great opportunities for both companies. The Federal Cartel Office has decided otherwise. But we accept the decision, although we still disagree on the narrow market definition of line drainage used instead of surface drainage, which we consider relevant. However, this decision has no impact on BIRCO's strategic orientation and operational business. We have been very successful independently for 95 years, and this is exactly the path we are now continuing on."
Despite the pandemic, BIRCO can look back on two very successful financial years in 2020 and 2021. All key earnings figures showed double-digit growth, so that the company is well positioned for the future in every respect.
Economic success and entrepreneurial independence allow BIRCO to make the largest investment in the company's history to date in the current year. Frank Wagner adds: "Before we even entered into talks with ACO about a merger, we had already begun to realign BIRCO for the future with numerous innovations in recent years. Major investments in new technologies and expansion of our manufacturing capacities will raise our productivity to a new level. This will further strengthen our market position."
In the last three years, BIRCO has already invested more than 1 million euros in the production of large-format channels and has thus achieved a unique position on the market for these products. The already commissioned new concrete plant (see picture) with numerous other infrastructural measures, a building permit for which is expected in May of 2022, will far exceed this amount. With a total investment volume of 6 million euros, BIRCO is taking a further step towards expanding capacity and consolidating its technological leadership.
In addition, numerous other future projects are already underway with a focus on digitalisation and sustainability. Managing Director Christian Merkel elaborates: "It is exactly the right time to realise these investments. As a manufacturing company, we need a future-proof digital infrastructure to facilitate our internal processes, but also in particular for our external partners and customers in the market place. Likewise, we need to concentrate on BIRCO's sustainability. Energy efficiency, resource consumption and, above all, the quality of work and life of our employees are increasingly becoming critical competitive factors, especially in the labour market. Current and future employees should expect that we as a company also accept this social responsibility. We have clear goals and big ambitions in this regard."
BIRCO remains wholly committed to the Baden-Baden site with a view to strengthening and expansion. Frank Wagner continues: "Baden-Baden and Sinzheim are, and will remain, BIRCO's key locations. But this would have been no different in the event of a merger. We are an integral part of the region and there is no reason to give up this valuable connection. On the contrary, we are expanding the site and focusing on growth. Baden-Baden is our home!"
The division of responsibilities between the two managing directors, Frank Wagner and Christian Merkel, will continue on from the previous year. As a partner, Frank Wagner will take responsibility of the long-term, strategic issues. Christian Merkel leads BIRCO's operational business with his management team. Christian Merkel affirms: "We have a long-standing management team and equally experienced and competent employees who do a great job, even in turbulent Corona times. An extremely confident team has been built up over the years. I consider it a great privilege to lead BIRCO into the future with this team."
There are no changes for the partners in the market. BIRCO remains the reliable partner with the highest quality standards in every aspect of this collaboration. Production continues to take place at the company's headquarters in the Herrenpfädel in Baden-Baden. Most of the logistics are handled by the logistics centre in Sinzheim.
The growth-oriented planning is also expressed in the need for new employees. BIRCO is hiring and looking for additional employees in numerous divisions. Frank Wagner concludes: "After it became clear in April 2020 that no family member would lead the company into the fourth generation, I assured our employees that sooner or later I would only hand BIRCO over to owner-managed entrepreneurs who share the same values as we do. BIRCO has excellent and experienced, as well as young, innovative employees who form the heart of our company. They all deserve a very special thank you for their many years of loyalty and outstanding commitment!"
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