Jungheinrich long-term strategy to focus on sustainability, profitability and efficiency
Jungheinrich’s new plans highlight sustainability, profitability and efficiency as the driving forces for the next five years and beyond.
The new strategy focused on business objectives including:
- A sales target of over €5 billion for 2025 including potential merger and acquisition activities. Organic revenue is expected to exceed €4.6 billion, based on an annual growth rate of at least 5%.
- Automation, digitalisation and energy systems as key areas of growth and innovation including guided vehicles, automated warehouses, software and robotics.. Priority is being given to further development of the “digital warehouse” with the aid of artificial intelligence and Big Data. The aim is to open up new markets for an event stronger market position, especially in e-commerce. The company anticipates an annual market growth of between 7-10% in this area.
- Expansion of global presence with focus on Europe, China and North America. Together, these account for around 80% of the world market in intralogistics. The company plans to increase the share of its revenue outside Europe to over 20%.
- Optimisation and digitalisation of internal and customer centred processes to increase efficiency. Ongoing projects such as DEEP (Digital End-to-End Processes) and N-Ex-T (Network -Excellence Technics) will be further developed.
- Anchoring sustainability as a foundation for all group activities, based on a holistic, transparent approach that takes equal account of economic, ecological and social aspects. Jungheinrich is already among the most sustainable 2% of companies within its industry. It has joined the 50 Sustainability and Climate Leaders initiative in order to support the fight against climate change and has set itself the goal of achieving carbon neutrality.
The strategy is divided into twelve sub-strategies, which in turn are implemented in around a hundred specific initiatives within the company. All business divisions across the globe are involved in the implementation with clearly defined roles and responsibilities.
Dr Lars Brzoska, chairman of the board of management said, “Our intention is to be our customers’ first choice over the long term, offering them added value through forward-looking solutions and technologies. We want to help shape economic, ecological and social developments, creating sustainable value for all our stakeholders. Our 2025+ strategy means we now have fully charged our batteries in all aspects, bundled ideas and strengths, and set the course for a bright future in intralogistics.”
Dr Volker Hues, member of the board of management, finance said, “With our 2025+ strategy we are laying the foundation for the long-term success of our group. Jungheinrich already has a very sound balance sheet and a high liquidity reserve. With our focus on return on investment and operating cash flow, we are securing our financial flexibility. Thus, even in economically difficult times, we are always in a position to implement the necessary strategic measures and guarantee the financial independence of the group”.
Photo shows Dr Lars Brzoska