Production on currently 6,000 ^m2

Until the 10,000^m2 production facility is up and running, it is necessary to bridge the gap and handle a number of large projects on the current 6,000^m2. Plant manager Christian Schlief has also resorted to an unusual solution - he has cut a hole in the façade of the production hall. "It's the only way I can get the many orders, including almost 40 m long storage and retrieval machines, produced at the same time," says the graduate engineer. Over the past five years, the East Westphalian company has seen a clear trend towards higher storage and retrieval machines, which approach the rack storage locations and automatically store and retrieve hundreds of pallets per hour. "40 m is nothing unusual, it's now standard," adds Christian Schlief.

The coronavirus pandemic has made one thing clear: Westfalia is operating in an industry of the future. "Prices for logistics services and transportation are going through the roof," says Andreas Gartemann, Managing Partner of Westfalia, outlining the market situation. According to the Shanghai Containerized Freight Index (SCFI), the sea freight price for 20-foot standard containers rose by 127 percent between April and November 2020, while the World Container Index (WCI) recorded an increase of up to 198 percent for 40-foot containers. "In addition, just-in-time availability of products can no longer be taken for granted," adds Gartemann. Storage space is becoming increasingly scarce and consequently more expensive. This plays into the hands of the Borgholzhausen-based company, as Westfalia relies on particularly compact and therefore efficient storage systems.

Planning security until 2022

It is therefore hardly surprising that the company can currently look back on well-filled order books that keep it busy and provide planning security well into 2022. However, the sometimes ambitious scheduling requirements of customers and sudden changes to deadlines are a challenge. "After all, we are not alone on the construction site and often have to react flexibly to changes in deadlines on site. We therefore need more buffer capacity in the plant to be able to deal with such changes in the project business," says Plant Manager Christian Schlief. Yet another reason not to put the expansion plans on hold in 2020, a year characterized by uncertainty due to the coronavirus, but to actually accelerate them.

Following the purchase of 7 hectares in 2019, the shareholders of the Westfalia Group, Andreas Gartemann and Siegbert Wortmann, acquired a further 2 hectares for expansion options directly on the A33 slip road towards Osnabrück last year. Siegbert Wortmann, founder and CEO of the IT company Wortmann AG from Hüllhorst, acquired a majority stake in the Westfalia Group in 2010 and, together with Andreas Gartemann and Matthias Upmeyer, subsequently led the long-established company back to its former economic strength.

New company location at Teuto 1

On January 1, 2023, the intralogistics specialist will relocate completely from Industriestrasse to the Borgholzhausen/ Versmold Intermunicipal Industrial Estate (IBV). Originally, two construction phases were planned, with only production initially being relocated to the new site at Am Teuto 1. This plan was fundamentally reconsidered due to the pandemic, among other things, so that a new administration and office building will also be built at the IBV at the same time.

"Corona has shown us all how the world of work will change. Mobile working and working from home will certainly remain to a certain extent. However, we are also seeing a strong desire among our employees for personal contact. Telephone, messenger services or video telephony are not a complete replacement after all," says Andreas Gartemann, explaining the reasons for merging the construction phases. The passionate volleyball coach also draws a sporting comparison for the Westfalia team: "Our project business is like a decathlon that combines many different disciplines. A spatial separation would simply not have been ideal for the close integration of the departments and our claim to the perfect logistics project for our customers."

Energy-saving building complex

Office and administration space at the new site will be^increased from around 3,000 to 5,000^m2 , while production and storage space will be increased from around 6,000 to 10,000^m2. The planned building complex measuring around 140 by 66 meters will be built using energy-saving construction methods. Heating will be provided by an air heat pump. The roofs of the building and the partially covered parking spaces will be equipped with photovoltaic systems. "Our compact high-bay warehouses have always made a contribution to sustainability. In future, we will also be able to contribute to a reduced_{CO2 footprint} at our new site," says Gartemann.

Adhesive system manufacturer Bostik moves into Westfalia property

The relocation of the entire company will also pave the way for Westfalia's direct neighbor, the adhesive system manufacturer Bostik, to consolidate its locations at the headquarters: Bostik has purchased part (around 5,000^m2) of the current Westfalia site of around 21,000^m2 and will lease the remaining part and the existing buildings (around 15,000^m2) on a long-term basis. The management signed the corresponding contract at the end of 2020.

The Westfalia Group has two reasons to celebrate at the beginning of the year. "In addition to the imminent start of construction, we are celebrating our 50th company anniversary on February 18. We are delighted to continue to make a clear commitment to the Borgholzhausen site with the new building," says Gartemann. "Thanks to the Wortmann Group and the support of the towns of Versmold and Borgholzhausen, we can continue to grow successfully and continuously throughout Europe with our current workforce of almost 250 employees in a central economic location. With an annual turnover of more than 40 million euros, we have been very stable throughout the difficult 2020 financial year for many companies."

Customers, who mainly come from the food, beverage, packaging and corrugated board industries, were understandably reluctant to invest in new systems last year. "However, we were able to win several large orders at the turn of the year. Our significantly expanded service division with its service and modernization business as well as the strong growth in the software and IT area also put us in a good position for the next 50 years of active customer support based on partnership."

Plan for the IBV works

For the mayors of Versmold and Borgholzhausen, it is another milestone in their cooperation on the inter-municipal industrial and commercial area. Thanks to the now completed A33, the IBV is conveniently located in the middle of the economically strong region, so that numerous companies have settled on the 50 hectares developed by the special-purpose association over the last 20 years. "The marketing and development of the last prime plot of just under 9 hectares is almost complete. And we are also achieving what we hoped for with Westfalia: To keep successful, expanding companies from the region at the site and to be able to secure and create jobs," says Michael Meyer-Hermann, Mayor of Versmold and Chairman of the Association Assembly. "There was always criticism that such large areas were being sealed," says Dirk Speckmann, Chairman of the IBV Association and Mayor of Borgholzhausen, looking back.

"It was therefore also important to us that the companies build as space-savingly and sustainably as possible. For example, the roof of the new hall of the neighboring logistics company B&S will be equipped with a 2.1 megawatt photovoltaic system. I'm also impressed by Westfalia's new building with its high energy standards and its extensive use of solar energy through photovoltaics on the roof and even partly on the parking lot."