, 3,369 of them worked in Germany (2020: 2,971), and 2,004 at the international locations of the Hansgrohe Group (2020: 1,743). Our dedicated staff managed to train more than 650 new employees and integrate them into their teams during the pandemic, says Kalmbach. Thats an unbelievable achievement. In recognition of their extraordinary commitment, all employees around the world received an incentive payment totaling 5 million in 2021. Last year, the Hansgrohe Group was awarded in Germany the Top Employer 2021 seal for outstanding working conditions, and the company has already received this award again in 2022.
Hansgrohe continues to invest in safe and modern workplaces at all locations both in production and administration. Having learned from the pandemic, the company now relies more heavily on individual work time models. In areas where its practical, fixed requirements and rigid rules about who can work in the office or remotely, and when, were eliminated in the summer of 2021. Each team decides together on how best to structure internal processes and availability for the benefit of customers and other employees.
Investments in Growth, Innovation, Digitalization, and Sustainability
Despite current political and economic uncertainties, the Hansgrohe Group is sticking to its planned investment in a new location in Serbia. For up to 85 million, the faucet and shower manufacturer plans to build a manufacturing plant in the city of Valjevo. Faucet production by the end of 2023 is expected. With this investment, were reinforcing our production network in Europe, says Hans Juergen Kalmbach, Chairman of the Hansgrohe SE Executive Board. Its part of our global production strategy to keep supply chains and transport routes short and secure.
At the same time, the company is also investing in its existing German locations. The Schiltach manufacturing plant is being modernized with a price tag of 12 million and, beginning in mid-2022, will operate as a production facility for the design brand AXOR. The Alpirsbach location is also being renovated and will begin operating as an innovation park in summer 2022.
The Hansgrohe Group invested a total of 51.3 million (2020: 46.8 million) in 2021. In addition to investing in modernizing various locations, funds were also dedicated to production particularly mechanical processing, plastic injection molding, and assembly. There were also key investment projects for advancing digitalization in production, logistics, and administration.
Digital communication is also a must when it comes to marketing new products and has become extremely important for addressing trade customers. Because the most important industry trade fairs were canceled due to the pandemic, the Hansgrohe Group presented its innovations for bathrooms and kitchens virtually at the Hansgrohe AquaDays in March 2021. New products, such as the hansgrohe Vivenis faucet program and the AXOR One collection, were the highlights at this digital event, which Hansgrohe regularly complements with online trainings and e-learning courses for trade partners.
The innovative strength of Hansgrohe is regularly confirmed by third parties. For example, the company has been named one of the Top 100 Innovators of German SMEs for the fifth time in a row. The AXOR and hansgrohe brands won numerous design awards in 2021, including German Design Awards in Gold, iF Gold or red dot Winner Awards. Since 1974, Hansgrohe has been making a name for itself with its design expertise; to date the number of design awards has grown to over 700.
In 2021, the manufacturer of high-quality faucets, showers, and shower systems also continued to invest in its sustainability. All German sites are climate neutral in terms of direct emissions and energy consumption. By the end of 2022, all international sites will follow.
2022 Prospects
The past two years were largely shaped by the pandemic and its effects. Even in 2022, the pandemic will continue to influence our daily lives, says CEO Hans Juergen Kalmbach. Well also continue to face global supply and material shortages and increasing energy prices. So far, weve managed to ensure the supply of our plants without holding up production. In fact, weve set some ambitious goals in terms of sales growth and increased efficiency again for 2022. Were pleased with the first several weeks of this year. However, the current war in Ukraine, the economic downturn, and increasing inflation put everything at risk. At the beginning of the month, the Hansgrohe Group decided to cease all its activities with Russia until further notice. To begin with, no further products will be delivered to Russia and no new orders accepted. Focus is on the 36 employees in Russia and offering them the best possible support. The Hansgrohe Group does not operate any sales offices or subsidiaries in the Ukraine. However, the company is working with twelve sales representatives, all of whom are in relative safety in the western part of the country. Now, Hansgrohe is helping its business partners to bring their families to safety in Germany and to find accommodations in the Black Forest.
The share in sales of these two markets is not particularly important for the company, which is why the direct effects are not expected to be very high. However, the indirect effects of the war on the global economy, soaring energy prices and inflation, are more difficult to predict for Hansgrohe. Were broadly positioned with our international business activities, says Hansgrohe CEO Hans Juergen Kalmbach. We are therefore also aiming for above-market growth in 2022. Well continue to rely on our Hansgrohe team spirit and our flexibility. Solidarity is at the heart of our thought process and behavior, which has allowed us to overcome many difficult situations. However, more than anything else we hope that no more people, whether Russian or Ukrainian, suffer or die senselessly and that we can all look forward to more peaceful times again through diplomacy, understanding, and the willingness to negotiate on all sides.
About the Hansgrohe Group Setting the Beat of Water. Since 1901.
With its brands AXOR and hansgrohe, the Hansgrohe Group, based in Schiltach/Southern Germany, enjoys a reputation as a leader in innovation, design and quality within the bath and kitchen industry. Founded in 1901 in the Black Forest, the company gives water form and function with its faucets, showerheads and shower systems. The 120-year history of the company is marked by innovations, such as the first hand-held shower with multiple spray types, the first pull-out kitchen faucet, and the first wall bar to hold a hand-held shower.The company holds more than 18,500 active property rights. The Hansgrohe Group stands for long-lasting quality products and for responsibility towards people and the environment. Sustainable production of resource-conserving products is central to the companys business activities around the globe. With 34 subsidiaries and 20 sales offices supplying products in 152 countries, the globally active company in the sanitary industry is a reliable partner to its customers in all regions of the world. The Hansgrohe Group, its brands and products have won numerous awards, including more than 700 design prizes since 1974. The products of the Hansgrohe Group are found worldwide: on renowned cruise ships, in luxurious 5-star and boutique hotels, in international metropolitan cities, in extraordinary spas, exclusive bathrooms of lodges and luxury villas, public facilities, as well as in countless private homes. The Groups high quality standards are ensured by seven wholly-owned production facilities: four in Germany, one each in France, the United States and China. In 2021, the Hansgrohe Group generated a turnover of EUR 1.365 billion. It employs around 5,400 people worldwide, about 60 percent of whom work in Germany.