Nilpeter expands production facilities

Nilpeter A/S, has invested approximately Euro 3,5 million in an extensive expansion of its production facilities at the company's headquarters in Slagelse, Denmark.

Nilpeter's CEO and owner, Lars Eriksen says the company chose to carry out such extensive modernisation and expansion of production in Denmark, instead of moving it to other countries, due to the high level of technical expertise and industry knowledge present in Denmark. ‘We researched the option of outsourcing but decided to retain both our Danish and US production facilities,’ says Eriksen ‘Denmark is equally competitive when compared
to many less developed countries. Production equipment costs in Denmark are comparable to those in the Far East. The hourly wages are certainly lower in less developed countries, but this is more than offset by the extremely high level of expertise available in Denmark.’

Nilpeter's acquisitions include a new machining center as well as a 'Flexible Manufacturing System' (FMS). This will enable more flexible production capabilities. The system can operate unmanned outside normal business hours, and will allow Nilpeter to adjust production output according to demand.

Nilpeter's US subsidiary has also undergone comprehensive expansion and a new machine production facility was opened last spring. Since the 2001 acquisition of Nilpeter's American competitor, Rotopress in Cincinnati, the Danish-owned company has doubled its output to the American market and increased the number of its US employees by 50 percent.
In the past few years, Nilpeter has established subsidiaries in Thailand, China, Germany and Brazil, and the company now exports 97 percent of its production worldwide. Local offices and subsidiaries are located in more than 65 countries around the world.