Thinking ahead: KHS modernizes German headquarters in €20 million investment

27 May 2020 --- The KHS Group has invested €20 million in modernizing its headquarters in Dortmund, Germany. In a bundle of measures underway since 2015, the global provider of filling and packaging systems for the beverage industry has built a huge, approximately 4,300 m2 production shop and fully renovated another. KHS identified the headquarter modernization as a means to further automate and digitize its production processes and remain competitive in the long-term.

The construction work will finalize in the spring, marking the end of an extensive optimization operation at the KHS production site in Dortmund. According to Plant Manager Dr. Joachim Konrad, the upgrades were essential to strengthen KHS’ competitiveness. “As a company active worldwide, we find ourselves in a competitive situation and want to carry on manufacturing in Germany. We’ve therefore further digitalized and automated our infrastructure and processes in production.”

Modernization secures long-term future
Key features of the modernization include extending the production area and renewing the machine park. At the Juchostraße site, KHS has erected a completely new production shop. In an area measuring 4,300 m2, the systems supplier has created conditions that enable the relevant technology for container and pack conveyors to be merged and order processing to become more efficient.KHS converted one of its oldest production shops and brought Sheet Metal Manufacturing in line with state-of-the-art technology.

KHS has also modernized one of the oldest production buildings on the company premises. With an investment of €6 million in this individual project, the engineering company has renewed the shop floor and roof and also optimized its Sheet Metal Manufacturing Department housed in the hall by incorporating new technology that includes a faster, more efficient fiber laser, a combined punching/laser machine and a larger, fully networked sheet metal warehouse.

The modernizations yield many benefits for KHS customers in the beverage industry, including leading global brands. “Demands are becoming more complex. Like when you configure a new car nowadays, we can customize our filling and packaging systems to suit the precise requirements of the respective customer,” explain Konrad. “We cater to the huge individualism of each customer with our cleverly compiled, standardized product modules that allow systems to be designed and constructed in automated processes.” KHS continues to simplify its production sequences through numerous optimization measures.KHS employees in Sheet Metal Manufacturing are now benefiting from future-proof workstations.

Boosting the regional economy
Local employees also profit from the site’s extensive modernization. KHS has also upgraded the factory canteen and various office complexes, including the workstations in various company departments. With around 1,200 personnel, the Dortmund facility manufactures machines for labeling, pasteurization and bottle washing, among other equipment, plus container conveyor technology for industrial beverage production.

For KHS, the modernization represents a big commitment to its Juchostraße production facility, Konrad indicates. “The Dortmund plant is extremely important to the KHS Group, also because of its standing as our international company headquarters. With our investments we’re making it fit for the future. This sends out a strong signal to the regional economy.”

KHS plans to make local commitments above and beyond its facility upgrade. The enterprise is helping to devise a Science 2.0 master plan that the Dortmund council adopted in November of last year. In the field of production technology, KHS is engaged in an exchange of expertise together with representatives from other companies and the TU Dortmund.The modernization secures jobs at the Juchostraße factory where KHS employs approximately 1,200 people.

“We’re pleased to be doing our bit for a strong regional economy and can apply our practical experience in this area. As a large industrial employer, we also benefit from well-trained specialist workers,” Konrad adds.

In other KHS news, the company had planned to launch its secondary packaging system for can shrink replacement at interpack 2020 before the event was postponed due to coronavirus concerns. The technology can replace the shrink film used to package multi-packs of 12-24 beverages with more environmentally sustainable alternatives. The first stage in this new project has been completed together with a “big, international beverage producer,” KHS shares.

In March, Alpla developed a 1 L reusable and refillable PET bottle in partnership with KHS. Alpla optimized the bottle’s neck and base design to bring the total weight down by 10 g.

Edited by Joshua Poole