Production and logistics

NORMA Group produces and sells more than 40,000 products and has 25 production sites worldwide. In addition, it has a network of numerous distribution, sales and competence centers that enable it to supply its customers in the respective regions on time.

Production and capacity utilization

The degree of capacity utilization of NORMA Group’s production and distribution sites varies between the global sites. In the countries where NORMA Group’s business is still being established, the capacity utilization of the production plants can still be increased in some cases. Forward-looking investment decisions there ensure that sufficient space is available for the flexible expansion of production. In the industrialized countries and markets in which NORMA Group already has a long-standing market position, production space and capacities are largely fully utilized. NORMA Group’s goal here is to optimize production processes by increasing efficiency in such a way that additional capacities are created where possible within the existing area.

The capacity utilization of the production facilities can be varied according to customer demand and the order situation. Several different products with various specifications can be manufactured using the current production lines within the individual product categories by performing minor retooling measures. This allows production to be aligned with current customer demand.

In the 2024 fiscal year, the war in Ukraine also meant that no deliveries were made to Russia and Belarus as a result of the foreign trade laws that were enacted. The ongoing war in the Gaza Strip and Lebanon and the conflicts in the Red Sea did not lead to any relevant supply bottlenecks or delivery difficulties in the 2024 fiscal year. The effects of these conflicts on the supply chains are continuously monitored, supported by digital risk warning systems. The longer transport times are compensated for by extensive advance planning of the container transports concerned between Europe and Asia.

Production capacities optimized, expanded and partially automated in fiscal year 2024

NORMA Group invested in various areas of its business activities in fiscal year 2024.

In the EMEA region, investments mainly related to the further expansion of production for fluid and piping systems, particularly in the Electromobility division. In addition, capacity for clamp production was expanded at various locations. The modernization and further development of production facilities and tool concepts also played a key role in the EMEA region.

The Americas region focused its investment activities on the further expansion of production capacities in the Water Management area, among other things. The automation of production facilities and the modernization of infrastructure were also relevant areas of investment. Investments were also made in the Americas region to build up production capacity and tools for a product innovation in Mobility & New Energy. The modernization of production processes and tools for connector elements and clamp production was also a key topic.

In the Asia-Pacific region, investments primarily related to the expansion of capacity for the localization of clamp production in the Chinese market. The focus there was also on an automated internal supply warehouse as well as testing and validation capacities.

In the 2024 fiscal year, investments were made in optimizing and automating production workflows and processes. The focus was on production as well as physical logistics and warehousing.

The following table provides an overview of the most significant investments in the current reporting year.

Continuous optimization of the entire value chain

At NORMA Group, all internal process steps in the value chain are constantly examined for optimization potential. The Global Operational Excellence Management System is an important tool for meeting this objective. This system is used to analyze existing processes, identify potential for improvements, introduce the appropriate measures for implementation and realize cost saving projects. As a result, many processes have already been automated and standardized in recent years, so that significant economies of scale have been achieved.

NORMA Group has been implementing the NORMA Group Production System (NPS) at all of its production plants worldwide since 2014. The goal of the NPS is to increase operational performance, safety, delivery reliability and quality at the plants and to identify and realize further cost savings. NORMA Group uses a “toolbox” of lean methods for this purpose. These include the 5S methodology, the daily Gemba walk, setup time optimization using SMED (Single Minute Exchange of Die) and TPM (Total Productive Maintenance). As part of the SCM transformation at NORMA Group, these and other tools, such as Kanban, are also being introduced in logistics. Furthermore, a standardized problem-solving process ensures that internal and external customer complaints are processed more quickly and effectively.

Customer proximity and a secure supply chain

In order to keep its supply chain costs as low as possible, NORMA Group strives to keep the value chain as short as possible and avoid intermediate steps that do not add value via other NORMA Group sites. The goal is to manufacture close to the customer, which not only leads to an optimization of working capital and supply chain costs, but also minimizes delivery risks, reduces negative effects on the environment and ensures the higher flexibility that is increasingly being demanded. The value of short and direct delivery routes is essential. This became clear again in 2024. The ongoing geopolitical tensions and the associated short-term fluctuations in availability and demand are the main influencing factors here. Consequently, capacity bottlenecks at ports and the resulting shortage of sea containers, sea transports in particular kept posing new challenges for the logistics of internationally operating companies, including NORMA Group. The Company remains committed to reacting flexibly to fluctuating customer demand at all times despite longer transit times. This also includes the “Step Up” program implemented in mid-2023. In the 2024 fiscal year, for example, targeted measures were implemented to achieve efficiencies in supply chain management throughout the EMEA region. The availability of products also improved significantly once more. This positive development puts NORMA Group in a position to better support the sales of its products in the future.

Despite the demand for short logistics routes, cross-border deliveries are often unavoidable for NORMA Group in order to meet customers’ needs and requirements at all times. Optimized and secure customs processes are therefore indispensable. For this reason, NORMA Group participates in various customs trade partnership programs in the US and the EU, for example. Through supply chain security programs, in particular the Authorized Economic Operator (AEO) and Customs Trade Partnership against Terrorism (C-TPAT), which are part of the global Compliance Program, NORMA Group strives to ensure a legally compliant supply chain. By conducting regular audits of all its business partners, the Company is able to rule out the supply of legally sanctioned third parties. In addition, internal organizational instructions and regular reviews ensure compliance with the relevant statutory export control regulations.