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ORAFOL Group invests 85 million Euros

  • Plastics processor ORAFOL expands its production and logistics infrastructure at the corporate headquarters
  • At least 85 million euros will be invested in the Oranienburg, Germany location by 2023
  • Increased presence on the global market, with a focus in the United States

ORAFOL, a leading processor and finishing specialist in the plastics industry, is expanding its production site and corporate headquarters in Oranienburg, Germany. Over the next three years, the company will invest at least 85 million euros in the Oranienburg location. The group is also expanding its presence in the global market, with investments in the United States. One of the main goals of the expansion is to acquire new and forward-looking technologies. By significantly expanding its production and logistics capacities in Germany and expanding its portfolio of solutions through acquisitions, the company responds to the growing global demand for high-quality plastic solutions, for example, in the automotive sector.

Dr. Holger Loclair, Chairman, CEO & President of the ORAFOL Group, “ORAFOL sees itself as a development partner for the industry. Our modern production processes and facilities allow us to deliver new plastic solutions that will be needed in almost every future industry, such as self-adhesive specialist films. And not just in Oranienburg, but all over the world.”

Most of the new production facilities involve plastic coating. The advantage of these state-of-the-art facilities lies in their efficiency and quality of the coatings produced.

The increase in production has made expanding logistics a top priority. The ability to deliver products quickly and seamlessly to customers worldwide is a key competitive advantage in the market.

Marcel Janßen, Senior Vice-President Engineering & Technology of the ORAFOL Group, “Our customers benefit from our large warehouse capacities. The ultra-efficient logistics at the Oranienburg site help ORAFOL stand out from the competition. This is a service that is critical to our success.”

By constantly adapting its business processes, ORAFOL could cushion the impact of the coronavirus pandemic on the company’s profits in the 2020 fiscal year. Not only will the first quarter of the current fiscal year (Q1/2021) close at pre-pandemic sales and profit levels, it will also be one of the most successful quarters in the company’s history.

Dr. Holger Loclair, “Our company is expanding. So far, we have not allowed the pandemic to slow down our plans. The success of our plans hinges crucially on speed. Delays cost a lot of money and are to the detriment of our customers, whose production often depends directly on ours.”

The pace of implementation of the ORAFOL investment plan in the 2021 financial year and the on-time implementation of the aforementioned projects will heavily depend on several factors.

The first factor is a targeted vaccine rollout in Germany. Involving company health programs in the rollout can help achieve this. ORAFOL would like to offer vaccinations to its workforce through the company physician as soon as sufficient vaccines are available. The second factor is the availability of raw materials. The Purchasing & Logistics division decided early on in 2020 to make additional purchases across all material groups. The company also leased additional warehouses for various solvents, adhesives, and pigments. So far, the company has not experienced any interruptions in production due to disruptions in the global supply chains. The third factor is the smooth and on-time granting of all approvals, especially by the Brandenburg Environmental Protection Office (LfU).

Dr. Holger Loclair, “We are a medium-sized industrial company that has grown tremendously in the last few years. The Brandenburg location has also benefited from this growth. As a tradition-rich company in the state of Brandenburg, it is crucial that our importance to the region be recognized.”