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$50m commitment in SA

Clipsal makes $50m commitment in South Australia

Clipsal Australia announced today that after almost 40 years it is moving from its Bowden base as part of a long-term, $50m expansion plan in SA.

Executive General Manager Erik Scholz says the Bowden site includes Clipsal’s Australian head office and manufacturing facilities largely based upon aging plant operating out of more than 20 buildings.

Other operations are conducted at a number of other, smaller sites around metropolitan Adelaide.

“By today’s standards it is very difficult to develop best practice manufacturing processes in such uncoordinated facilities”, says Mr Scholz.

“We are looking to identify and develop a new world-class facility which will encompass all of the current Bowden site non-metals operations, Clipsal Integrated Systems and the National Distribution Centre operations and staff.

“The new facility will include provision for finance, purchasing, human resources and research and development for the Schneider Electric Asia Pacific region.”

Mr Scholz says the new site should be ready by late 2008 or early 2009.

Macquarie Goodman has been engaged to help select and secure the new site and facility and it is hoped this will be within a 10 kilometre radius of the current Bowden location.

“We expect to be able to confirm the location within the next 3 months”, says Mr Scholz.

“Bringing our processes together within a large open plan facility will allow for fewer logistics transactions, shorter lead times, less inventory and better utilisation of space.

 

Clipsal - Demand the brand

“This will translate into improved customer service, improved market competitiveness and, importantly, make for a better place to work.”

He says that in preparation for the move, there will be a consolidation of all Adelaide-based metals and related operations to the current Wingfield manufacturing site which will also be upgraded and refurbished to create a new centre of excellence for metals operations.

It is anticipated that the overall financial commitment to these projects will be in the range of $50m over the next decade.

“This strategic move will produce great outcomes for our business and help us to continue on our successful course.

“It will involve major changes in our operations and we are fully committed to manage well and effectively these changes for both our employees and our customers.”

Mr Scholz says Clipsal intends to remain the pre-eminent manufacturer and supplier of electrical products for the industrial, commercial and domestic markets in Australia and a significant player across the Asia-Pacific region as part of the Schneider Electric Group.

This move sends a clear signal that we are confident and committed to our future in SA.”

 




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