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A Leadec employee configures an inverter at a conveyor belt.

Leadec sees itself as a winner of the transformation

Many automakers and automotive suppliers are struggling with the transition to electromobility. This is not the case with the industrial service provider Leadec. “For us, the transformation means significantly more opportunities. We have new players among manufacturers, be it in China or the United States. In addition, there are battery manufacturers and cell producers. Basically, that also means more factories that need to be looked after,” says Leadec CEO Markus Glaser-Gallion.

 

Leadec’s approximately 17,000 employees can be found at 350 locations around the globe. They mostly provide services for production facilities of car manufacturers such as VW, Daimler, BMW, Ford or General Motors. For example, Leadec takes over the maintenance of buildings or machines. The expertise extends to the design and implementation of a smart factory.

 

 

 

Man and woman inside a factory, both wearing safety clothing and helmets.
Leadec is looking for about 400 employees in Germany alone.

As manufacturers want to save money in the combustion engine sector, they outsource more value creation activities. “Especially in the engine and transmission sector, we have received many orders that are for longer periods and considerably more sophisticated,” says Glaser-Gallion. For example, he says, Leadec has been awarded an eight-year contract at Daimler’s Arnstadt/Thuringia site for V8 engine components. “It includes our entire range of services from maintenance to facility management.”

 

At the same time, new manufacturing plants for alternative drives are being added. For example, Leadec has gained early experience in the field of battery assembly, supplying Daimler Accumotive in Kamenz with the complete lower battery housing section. “References like this one help us tap into this new field,” says Glaser-Gallion. As a result, e-mobility accounts for a significant portion of new business.

Leadec does its main business with the auto industry but plans to broaden its reach in the future. “For us, it’s only a small step from conveyors in the automotive industry to parcel service providers’ distribution centers or the food industry,” says Glaser-Gallion. Already, he says, the company’s dependence on the automotive sector has dropped from 90 to 70 percent. Further company acquisitions by the end of the year are expected to bring in more than 100 million euros in additional sales.

 

When the former Voith division Leadec was sold to Triton in 2017, the targets were ambitious. For example, sales were to reach 1.5 billion euros in 2022. But the coronavirus and the sale of the Veltec division, which specializes in power plants, are delaying the plans. When the mark will be reached is difficult to predict, says Glaser-Gallion. “This year we are targeting 950 million euros, which is already back to pre-crisis levels. Next year, we want to be well over a billion.”

 

One obstacle is the lack of skilled workers. Since Leadec competes with Daimler, Bosch or Porsche, jobs are often not easy to fill. For example, Leadec is looking for about 400 employees in Germany alone. Glaser-Gallion: “It’s a battle for talent.”

 

The article was first published on November 15th, 2021 on automobilwoche.de