Phoenix Contact plans an extensive investment program for medium to long-term growth

Investments

In order to prepare Phoenix Contact for growth in the medium to long term, Phoenix Contact has planned an investment program of more than one billion euros over the next five years.

The first measures for the extension to the existing logistics building at the Blomberg location have already been launched. The fully automated building will provide 220,000 cubic meters of additional storage volume. In the future, it will also be possible to supply customers outside of Germany directly from here. At around 100 million euros, this represents the largest single investment in the company's history. At the location in India, three new buildings with production, logistics, and office spaces, with a footprint of 70,000 square meters, are being built. The investments here amount to around 40 million euros. "With this expansion in capacity, Phoenix Contact is responding to the challenge of making global supply chains more resilient and minimizing dependencies on individual regions of the world", explained Leidecker.

China is the fastest developing market for e-mobility with its own approaches to mobility. Phoenix Contact is therefore expanding its e-mobility production capacity with a new facility in Lishui, China. The foundation stone was laid at the end of June 2023. At this new production site, Phoenix Contact E-Mobility will develop and manufacture various charging cables for electric vehicles, which will be supplied to Chinese automobile and charging infrastructure manufacturers. The company relies on local-for-local sourcing, where the purchasing, production, and sales markets are located close to each other. The new building has a total footprint of around 26,000 square meters, of which 20,000 square meters is production and storage space and 6,000 square meters is office space.

Building 60 – sustainability and efficiency in industrial applications

With Building 60 at company headquarters, Phoenix Contact is setting new standards in terms of sustainability and efficiency. This investment is an example of the vision of an All Electric Society in which carbon-neutral electricity is the central energy source. The building is designed such that it will not only cover its own energy requirements with self-generated electrical energy, but will also have a positive energy balance during operation. The amount of energy generated will be greater than our own requirements.

Phoenix Contact's investment in this production and technology center amounts to around 35 million euros. With 18,485 square meters of floor space for 400 workstations, the building illustrates the networking of the energy, mobility, infrastructure, and building sectors. The result is a tangible blueprint for scalable solutions that can be used to network entire districts in the spirit of an All Electric Society.

In the building, thermal energy is integrated into a heating network at the local level – using heat pumps and a 1,500 cubic meter ice storage system. The demand for heating, cooling, and the generation of waste heat from the processes is integrated in such a way that enthalpy exchange is possible. The first stage involves the use of battery storage systems, a photovoltaic system with an output of 1,100 kilowatt-peak, an open-field photovoltaic system with an output of 1,500 kilowatt-peak, and a partial DC power grid. Connected to this is a bidirectional charging infrastructure for e–mobility based on the premise of vehicle-to-grid. The installation of a DC power grid for industrial use is a deliberate strategic decision, as this will play a crucial role in driving the energy revolution forward – renewable energy sources, battery storage systems, and e-mobility are based on direct current and can thus be integrated more easily.

Sustainability: part of the corporate strategy

This October, Phoenix Contact published its first sustainability report. The report, which relates to 2022, is structured in accordance with the GRI standards and is based on the three cornerstones: Environmental, Social, and Governance. Those interested in reading the report can download it from the website.

In order to be able to show as precisely as possible what impact its products have on the environment, Phoenix Contact creates a Product Environmental Footprint (PEF) for each individual product. Up to 18 environmental indicators are taken into account for this, with the company focusing on the carbon value of its products. Other indicators, such as land use or water consumption, are also calculated when the data is available. The entire value chain is examined, from product design and the choice of raw materials, through the manufacturing process and distribution of the item, to the use and end-of-life phase of the products. By examining and calculating the PEF, conclusions can be drawn from the environmental indicators for internal processes. Based on this knowledge, Phoenix Contact is constantly improving its processes in order to reduce its environmental impact and conserve resources.

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