Bell Equipment Open European ADT Factory
South African manufacturer aims to increase its share of the European market with the opening of a new assembly plant in Germany
Last October the first Bell Equipment articulated dumptrucks rolled of the production line at the South African manufacturer’s new European assembly plant in Eisenach, about 200km north-east of Frankfurt, Germany. Located on a 10ha site, the 6,000m2 plant will produce ADTs for the European and North American markets, initially using partially assembled kits from Bell’s main factory in Richards Bay, South Africa, combined with major components from independent European suppliers.
Bell say this major strategic investment in Germany is a demonstration of the company’s continued commitment to the European market and a clear indication that they plan to stay at the forefront of ADT technology.
‘The Eisenach factory, which involves an initial start-up investment of Euro 13 million, is our first foreign production facility outside South Africa,’ says Bell Equipment’s chief executive, Gary Bell. ‘Our latest D-series trucks have been very successful and production at our Richards Bay factory has almost doubled in the past two years, largely to cater for our increasing share of the European market, which is now about 20% and represents nearly half of our current production. With the increased volume of trucks that we are now selling in Europe, it makes sense to go into local manufacture.’
According to the company, the new plant will be central to their future business plans over the next five to 10 years and will contribute towards reducing costs and cutting manufacturing cycle times. ‘By building trucks in Germany we will considerably reduce the working capital previously needed to fund the supply of European-sourced components and shipment back to our factory in South Africa only to fit them into trucks to ship them back to Europe,’ explains Mr Bell. ‘The Eisenach plant will allow us to take three months out of the production process, making us more flexible and responsive to our customers needs while producing a higher-quality product.’
Until now ‘European’ Bell ADTs required eight to 12 weeks between order and delivery, a lead time that has now been reduced to a matter of days. With a planned total of around 40 production employees per shift, the plant will have an output capacity of 11 machines a week.
‘Our objective is to build 400 articulated dumptrucks at Eisenach in 2004 on a single-shift basis and to double production by 2006, while at the same time increasing the European content,’ says Mr Bell. ‘We aim to provide our customers with the lowest cost-per-tonne solution. Unlike our two main competitors, who also make their own engines, transmissions and axles, we focus on providing equipment incorporating independent leading-edge technology from specialist major engine, transmission, axle and other component suppliers such as Mercedes, ZF, Allison, Rexroth, Behr, Bosch and many others.’
The assembly line at the Eisenach factory, which is geared up for the parallel production of different models, is currently focusing on the larger B35D and B40D ADTs, but these will be joined by the smaller B25D and B30D by April this year. With the exception of the smallest B20D model, Bell intend to produce the entire range of ADTs in Germany, including the current top of the range B50D, by the end of 2004.
Included among the first batch of trucks to roll off the assembly line last year was a B40D destined for a customer in the UK. Commenting on how the new plant will affect Bell’s UK operations, George Wilson, managing director of Bell Equipment UK, says: ‘The opening of the factory in Germany will be a strategic advantage for us as it places us closer to the market and provides commitment and positive reinforcement to our customers that we are now well established here in Europe.’
He adds that the company will now be able to further improve the quality of the trucks and provide more value for money to customers. In addition, whereas machines manufactured in South Africa go through final inspection in Richards Bay and then pre-delivery inspection by national dealers after shipment, the final inspection at Eisenach will be followed by delivery direct to the customer, reducing delivery times considerably.
According to Mr Wilson, the UK currently accounts for about 50% of Bell Equipment’s 20% share of the European market, which the company first entered six years ago. Bell now have a population of about 1,000 trucks in Europe and aim to increase their European share of the ADT market to 25% by the end of 2005 and further boost their share of the UK market beyond 30%.
‘We have achieved significant growth in the UK in the past two years following the introduction of our current D-series trucks and are now a leading contender in the UK market. When buying an ADT, customers in the UK want a reliable, efficient product that will give them better all-year-round utilization in the poor underfoot conditions normally found in the northern hemisphere. The balanced footprint and evenly distributed highest power-to-weight ratios of the Bell ADT are key to the product’s performance and our success in this region,’ he says.
Bell Equipment UK, Unit 6C Graycar Business Park, Barton Turns, Barton-under Needwood, Burton-on-Trent, Staffs DE13 8EN; tel: (01283) 712862; fax: (01283) 712687; email: [email protected]; website: www.bellequipment.com
Last October the first Bell Equipment articulated dumptrucks rolled of the production line at the South African manufacturer’s new European assembly plant in Eisenach, about 200km north-east of Frankfurt, Germany. Located on a 10ha site, the 6,000m2 plant will produce ADTs for the European and North American markets, initially using partially assembled kits from Bell’s main factory in Richards Bay, South Africa, combined with major components from independent European suppliers.
Bell say this major strategic investment in Germany is a demonstration of the company’s continued commitment to the European market and a clear indication that they plan to stay at the forefront of ADT technology.
‘The Eisenach factory, which involves an initial start-up investment of Euro 13 million, is our first foreign production facility outside South Africa,’ says Bell Equipment’s chief executive, Gary Bell. ‘Our latest D-series trucks have been very successful and production at our Richards Bay factory has almost doubled in the past two years, largely to cater for our increasing share of the European market, which is now about 20% and represents nearly half of our current production. With the increased volume of trucks that we are now selling in Europe, it makes sense to go into local manufacture.’
According to the company, the new plant will be central to their future business plans over the next five to 10 years and will contribute towards reducing costs and cutting manufacturing cycle times. ‘By building trucks in Germany we will considerably reduce the working capital previously needed to fund the supply of European-sourced components and shipment back to our factory in South Africa only to fit them into trucks to ship them back to Europe,’ explains Mr Bell. ‘The Eisenach plant will allow us to take three months out of the production process, making us more flexible and responsive to our customers needs while producing a higher-quality product.’
Until now ‘European’ Bell ADTs required eight to 12 weeks between order and delivery, a lead time that has now been reduced to a matter of days. With a planned total of around 40 production employees per shift, the plant will have an output capacity of 11 machines a week.
‘Our objective is to build 400 articulated dumptrucks at Eisenach in 2004 on a single-shift basis and to double production by 2006, while at the same time increasing the European content,’ says Mr Bell. ‘We aim to provide our customers with the lowest cost-per-tonne solution. Unlike our two main competitors, who also make their own engines, transmissions and axles, we focus on providing equipment incorporating independent leading-edge technology from specialist major engine, transmission, axle and other component suppliers such as Mercedes, ZF, Allison, Rexroth, Behr, Bosch and many others.’
The assembly line at the Eisenach factory, which is geared up for the parallel production of different models, is currently focusing on the larger B35D and B40D ADTs, but these will be joined by the smaller B25D and B30D by April this year. With the exception of the smallest B20D model, Bell intend to produce the entire range of ADTs in Germany, including the current top of the range B50D, by the end of 2004.
Included among the first batch of trucks to roll off the assembly line last year was a B40D destined for a customer in the UK. Commenting on how the new plant will affect Bell’s UK operations, George Wilson, managing director of Bell Equipment UK, says: ‘The opening of the factory in Germany will be a strategic advantage for us as it places us closer to the market and provides commitment and positive reinforcement to our customers that we are now well established here in Europe.’
He adds that the company will now be able to further improve the quality of the trucks and provide more value for money to customers. In addition, whereas machines manufactured in South Africa go through final inspection in Richards Bay and then pre-delivery inspection by national dealers after shipment, the final inspection at Eisenach will be followed by delivery direct to the customer, reducing delivery times considerably.
According to Mr Wilson, the UK currently accounts for about 50% of Bell Equipment’s 20% share of the European market, which the company first entered six years ago. Bell now have a population of about 1,000 trucks in Europe and aim to increase their European share of the ADT market to 25% by the end of 2005 and further boost their share of the UK market beyond 30%.
‘We have achieved significant growth in the UK in the past two years following the introduction of our current D-series trucks and are now a leading contender in the UK market. When buying an ADT, customers in the UK want a reliable, efficient product that will give them better all-year-round utilization in the poor underfoot conditions normally found in the northern hemisphere. The balanced footprint and evenly distributed highest power-to-weight ratios of the Bell ADT are key to the product’s performance and our success in this region,’ he says.
Bell Equipment UK, Unit 6C Graycar Business Park, Barton Turns, Barton-under Needwood, Burton-on-Trent, Staffs DE13 8EN; tel: (01283) 712862; fax: (01283) 712687; email: [email protected]; website: www.bellequipment.com
