Lemken, the balance sheet confirms levels reached in 2015
The German company closed 2016 with a turnover of 325 million euros, the same level reached in 2015. Lemken's performance in eastern European markets was very positive, while Germany and France recorded a standstill. New technologies make their debut in 2017, among them the Azurit single-seed drill
Despite the financial turbulence recorded in 2016 in the sector of agricultural machinery, the German Lemken, specialized in the production of technologies for tillage, has consolidated its position on the market, confirming the results achieved in 2015 with a turnover of 325 million euros at the end of 2016. A positive performance also due to the penetration of the German firm in central and eastern Europe markets—Hungary, Romania and Bulgaria. Indeed the company, based in the North Rhine-Westphalia region—its headquarters are in Alpen, not far from Essen—has expanded greatly in these areas. A markedly positive trend has been recorded also in Russia, but especially in Ukraine, where sales have even doubled. Traditional markets have, on the contrary, recorded a less positive trend. While the “Old Continent” remains on the whole the main buyer of the German company (just under one third of the total sales are recorded in western Europe), markets in countries such as Germany (26% of sales) and France were affected by an unfavorable economic situation in 2015. Great Britain is an exception in Europe: despite setbacks caused by Brexit, the response of the market to Lemken products was quite positive. On the whole, in 2016, the company’s exports amounted to 241 million euros, with a slight increase compared to 2015 made possible especially by the economic upswing in eastern Europe (33% of sales). In the period being considered, exports amounted to 74% of the total production. Lemken manufactured a remarkable 12,800 machines in 2016, a figure that could grow in 2017, because of some important novelties, especially in the area of seeding. Lemken had in fact announced that it intends to further develop the range of Solitair 25 pneumatic seed drills, while it will also be presenting the Azurit model, the first single-seed drill to be manufactured in the Alpen plant, which will be initially sold with a six metres working width. Also the agricultural electronics sector will present some important novelties: starting in 2017 the company will present the latest CCI-50 terminals with a 5.6 inch display, that will equip all the compatible ISOBUS products.
Anthony van der Ley, Managing Director of Lemken, commenting the results achieved in 2016, said that: “The past year has once again shown just how difficult it is to foresee developments in a specific sector. We are very pleased that we were able to deliver on our ambitious planning by the end of the year. This was made possible mainly by the outstanding commitment and flexibility of our employees. Also, I believe it is worth noting that the company’s investments in manufacturing technology and logistics proved effective in allowing us to optimize our existing production capacities.
“A number of new buildings were indeed completed in 2016, including a pre-fabrication department and Lemken AgroFarm, a facility for training - both classes and field tests - Lemken dealers and buyers of the technologies designed by the German firm. “These investments, totalling 16 million euros in 2016, form part of our long-term strategy, in that they are important for ensuring ongoing modernisation. Lemken is a family business, we act consistently and prudently, which will stand us in good stead once revenue in farming improves and the market for agricultural technology picks up again as a consequence.”
