Jenoptik invests 100 million euros to open new factory

On May 30th, Jenoptik announced on its official WeChat account that after approximately two and a half years of construction, its new factory in Dresden, Germany, with an investment of nearly 100 million euros, has officially opened. This is the largest single investment project in Jenoptik's recent history.

Jenoptik President and CEO Dr. Stefan Traeger stated that this new factory will make Dresden an important base for Jenoptik's micro optics business.

Why does this German optoelectronic giant attach so much importance to the new Dresden factory? What is the overall planning layout?
In fact, the opening of Jenoptik's new factory in Dresden has consumed a lot of energy and funds, which is due to the adjustment of its strategic planning. The ultimate goal is to serve its semiconductor equipment business line and seize the future European market ahead of schedule.

As early as 2017, Jenoptik proposed the More Value strategic blueprint, aiming to precisely invest the company's technological advantages in high growth future markets such as semiconductors and electronics, life sciences, medical technology, and intelligent mobility. Through photon solutions, it creates significant added value for customers, employees, and shareholders, driving the company to achieve above average growth and profitability improvement.

In 2022, Jenoptik adjusted the direction and focus of the company and proposed the "More Light" concept, aiming to transform from an industrial enterprise group to a key technology company. In April 2022, Jenoptik underwent an internal business restructuring, forming an advanced photonics solutions department and strengthening the company's photonics capabilities. This new business unit will combine activities in different fields such as semiconductor and electronics, life sciences and medical technology, and optical metrology.

At that time, Hans Dieter Schumacher, Chief Financial Officer of Jenoptik, disclosed to the public that the company's structure would be further simplified, evolving from a diversified group to a pure photonics manufacturer. By 2025, three-quarters of the company's total revenue would come from the "advanced photonics solutions" department.

This prophecy is accelerating, and in 2023, the main driving force for Jenoptik's business growth will be the Advanced Photonics Solutions division, primarily benefiting from strong demand in the semiconductor equipment industry.

Jenoptik's mid-term financial report for the second quarter of 2024, released in August 2024, shows a significant increase in revenue and pre tax income for the first half of 2024. Among them, the total revenue reached 540.8 million euros, a year-on-year increase of 7.1%, mainly driven by the strong performance of the advanced photonics solutions department and non photonics business companies.

It is worth mentioning that Jenoptik has achieved a significant growth of 18.9% in the European market, which may be an important factor for Jenoptik to focus on Dresden, Germany.

Jenoptik mentioned in the announcement that it is expected that by 2025, when Jenoptik's new production base in Dresden begins operations, the semiconductor equipment business line will be further promoted, and the new factory will produce high-end optical equipment and sensors, mainly for semiconductor lithography applications.

Now, the new factory invested nearly 100 million euros by Jenoptik has finally been officially put into operation. It is reported that the new factory has greatly expanded the production capacity of highly complex micro optical components and sensors, which are mainly used in semiconductor lithography and detection systems, as well as laser material processing systems.

In addition, to support the implementation of the "More Value" strategy, Jenoptik proposed operational excellence ESG、 The four core initiatives of human resource management and digitization. Among them, in terms of human resource management, Jenoptik attaches great importance to the introduction and cultivation of outstanding talents. By building a sound training system and incentive mechanism, it has successfully attracted and retained a group of high-quality professional talents.

In September 2024, Jenoptik's supervisory board announced the extension and confirmation of Dr. Traeger's term as Chairman of the Executive Board, with a new term of three years starting from July 1, 2025, and a corresponding contract extension until June 30, 2028. Dr. Traeger has been serving as the President and CEO of Jenoptik since 2017, as well as a non-executive director of AIXTRON SE. This extension of his term demonstrates Jenoptik's recognition of Dr. Traeger's leadership and his expectation for him to lead the company to new heights.

Overall, as an established enterprise with over 150 years of professional experience in optics, sensor technology, and precision machinery, Jenoptik's strategic direction adjustment can be considered a "huge change" for the company.

Abandoning non core businesses and focusing more on areas that are truly needed for the future is Jenoptik's strategy to cope with the ever-changing market. In the fiercely competitive laser industry, which is currently in a period of crazy reshuffling, the corporate wisdom that can last for 150 years is also a "business strategy" worth learning for other enterprises.

Source: OFweek