SVOLT Europe responds to current market developments: Expanded sales focus and adjustment of location strategy.
SVOLT Europe is expanding its sales focus and, in light of this, has also reassessed its location strategy. The reasons for this include the current highly volatile automotive market, the current lack of planning and legal certainty for the construction of production facilities and the fact that an extensive customer project will not be realized as planned.
Kai-Uwe Wollenhaupt, President SVOLT Europe & Senior Vice President of SVOLT Energy Technology Company Ltd, said:
The automotive market is currently struggling with considerable fluctuations and challenges all over the world, mainly driven by the transformation to electric mobility.
“This is leading to some drastic strategy adjustments for some car manufacturers. At SVOLT, in addition to already low planning certainty at various levels — from the threat of international punitive tariffs to market distortions due to lengthy and unevenly distributed subsidies — a significant customer project has now also been lost. On top of this, the renewed discussions about the end of combustion engines in the EU are having a counterproductive effect on the planned localization efforts.”
Reassessment of location strategy
In order to take account of this volatile market situation and remain competitive, SVOLT Europe has expanded its sales focus and reassessed its location strategy. As a result, the Lauchhammer site in Brandenburg will not be realized as planned. The use of the site in Heusweiler in Saarland is still being planned in the context of the sales expansion that has now been decided. The complete turnkey handover of the site will take place on July 1, 2024.
Kai-Uwe Wollenhaupt, President SVOLT Europe & Senior Vice President of SVOLT Energy Technology Company Ltd, said:
“We would like to take this opportunity to express our sincere thanks for the support, cooperation and trust placed in us at both the local and state levels in Brandenburg and Saarland, as well as by our partners. I would also like to particularly emphasize the commitment of my colleagues who have worked so hard for the success of SVOLT in Europe,”
“Despite these developments, SVOLT remains strongly committed to Europe. We will take all opportunities to implement positive impulses for the economy and the environment, together with our customers and partners.”
No change in Überherrn in Saarland
Contrary to reports in the media, there is currently no change in Überherrn. The Überherrn municipal council’s resolution on the articles of association is still awaiting approval from the responsible ministry. This means that the necessary building law and permit has not yet been created. In addition, legal action against the construction project has already been announced as soon as the building law has been created. It is therefore currently not possible to predict when final legal certainty will be achieved. However, legal certainty is an essential prerequisite and therefore the crucial basis for planning how to proceed. As soon as there is legal certainty, the next step is the final economic feasibility study. SVOLT Europe estimates that this process will still take some time. It would be pure speculation to provide more precise information on the timeline, as many things are beyond SVOLT Europe’s control and sphere of influence. At the present time, SVOLT Europe has no other direct obligations in Überherrn. Struktur Holding Saar (SHS) is currently responsible for the Linslerfeld.
Expansion of sales focus gives new perspective
In addition to the sale of individualized battery systems for electric cars, SVOLT Europe will now also focus on business areas in which standardized batteries and their systems can be used, which are more easily scalable and quicker to implement. These include batteries for commercial vehicles, stationary energy storage systems and their battery cells (so-called Energy Storage Solutions, or ESS for short) and applications in the non-automotive sector. This gives SVOLT Europe a broader base, ensuring greater resilience and helping it become more future proof.
While the aim of the sales expansion is diversifying its product portfolio, SVOLT also has the goal of being able to meet the already high demand for high-quality energy storage solutions outside of the passenger car sector in a more agile manner. SVOLT’s strong international network guarantees that projects can be implemented quickly. With this broader strategic focus, SVOLT Europe believes it is well positioned to operate optimally in a constantly changing market environment.
Kai-Uwe Wollenhaupt, President SVOLT Europe & Senior Vice President of SVOLT Energy Technology Company Ltd, said:
“Technological innovations continue to be the foundation of our strategy. In recent years, we have made considerable investments in the research and development of new battery technologies that are suitable for a wide range of applications. Going forward, we will focus this innovative strength more intensely on business areas from the non-automotive sector,”
Drive batteries for electric cars remain important
SVOLT Europe continues to consider electric car manufacturers target customers. However, with the adjustments now announced, capacities will also be used, for example, for the distribution of ESS solutions in Europe.
Kai-Uwe Wollenhaupt, President SVOLT Europe & Senior Vice President of SVOLT Energy Technology Company Ltd, said:
“We continue to see ourselves as an innovation partner to the automotive industry. However, the current market situation suggests diversification to secure our economic future in the medium term,”
“This is a decisive step toward becoming more resilient to market fluctuations while also making a significant contribution to the global energy transition. The shifting of our sales focus is therefore an investment in the future. It shows our extensive commitment as a pioneer of technological development to offering innovative solutions that not only make economic sense, but also have a positive impact on our environment.”
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SVOLT Europe responds to current market developments: Expanded sales focus and adjustment of location strategy. source
