The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
Dubai / Emirates Business
Phoenix Contact, an electrical engineering company recently released the company’s growth figures for 2015 and strategic growth plans for 2016. “We achieved our planned revenue growth of eight percent in 2015 and are therefore in a strong, secure market position,†stated Chief Executive Officer Frank Stührenberg at a press conference, expressing his satisfaction with Phoenix Contact’s economic growth over the past year. The corporate group’s revenues reached AED7.8 (€1.91) billion in 2015.
“However, we are aware that nearly half of that growth resulted from temporary exchange rate effects,†Stührenberg added, in explanation of these results. “Bearing that in mind, we will keep a close eye on ‘real’ market development this year and modify our investment decisions accordingly.†The industrial electronics manufacturer invested AED 556 (€135) million in the expansion of the corporate group in 2015, while adding another 500 employees on board last year.
Phoenix Contact is expecting moderate revenue growth of roughly five to seven percent for the current year. Stührenberg is confident in his outlook. “We want to surpass the AED8 (€2) billion mark in 2016,†he said.
The company wants to invest approximately AED618 (€150) million in national and international expansion activities. An investment of AED90.7 (€22) million will increase production volumes at the site in Poland. A new, 3,300 sq-mt factory in Russia will be completed by the end of 2016. Phoenix Contact has also invested in acquiring stakes in Leadsoft, a Chinese software company that develops cloud solutions for engineering tools, and Ecologix Sensor Technology GmbH.