V-Zug opens a new factory

After a seven-year project and investments of CHF 70 million, the V-Zug Group has opened its new refrigerator factory in Sulgen in the canton of Thurgau. Every third refrigerator purchased in Switzerland will come from there in the future.

Step by step, production is approaching normal operation."410 would be the goal, but we can test 390 refrigerators here today," says project manager Daniel Minder. In V-Zug's new refrigerator factory in Sulgen, he manages the system that checks and packs the fully-assembled refrigerators. This is done almost automatically: wheeled robots automatically pick up the refrigerators and bring them to the test stations.

The refrigerators are high, and they often seem to tilt. "They may look shaky, but none have ever tipped over," says Minder. There have been some obstacles to overcome since the plant has been running for the first time in March. "Two robots sometimes got caught with each other," but now it's running almost smoothly.

Automation is a top priority in the entire production process: From the high-bay warehouse with space for 4,500 pallets, to the production of the individual components and the foaming of the polyurethane insulation to the final assembly – although manual work is still required to insert the drawers and shelves.

Restrained during the pandemic
"It’s a different way of working than in the old Arbon plant," says Patrik Rechsteiner, Head of Operations at V-Zug Kühltechnik. The shell construction in Sulgen was completed in 2019, and the systems were then installed and a long moving phase began – precisely during the pandemic. "We learned to appreciate the digital means of communication," says Andreas Albrecht, Managing Director of V-Zug Kühltechnik. "Some machines were actually set up via Microsoft Teams."

The plant has now been ceremoniously opened after seven years of planning and construction and CHF 70 million of investment. It's the only refrigerator factory in Switzerland, and 145,000 refrigerators could be produced here in two-shift operation every year. 170 people work here, not only in production, but also in development. A photovoltaic system on the roof covers around 20% of the electricity consumption.

The history of the new plant began earlier. V-Zug took over the refrigerator department of the former Arbonia Forster Holding in 2013. But they continued to build refrigerators at the previous location. "But we were only renting there, and knew that we had to look for a new location," says Andreas Albrecht. The fact that it worked out in Sulgen is not only due to the new neighbour, Belimed AG, which had a right to purchase the area, but also to the canton of Thurgau, which approved the project, despite the moratorium on zoning.

The V-Zug plant in Sulgen has 170 employees
Andreas Albrecht, CEO of V-Zug Kühltechnik AG in Sulgen
The inner workings of the refrigerators are waiting for assembly
Peter Spirig, CEO of the V-Zug Group
Automation and efficiency are very important in the refrigerator factory                  Photos: Reto Martin

Whether the new V-Zug plant right next to the railway line is a "bijou in Aachthurland", as government councillor Walter Schönholzer described the construction at the opening, can be discussed. But it is definitely a confession, said Andreas Albrecht at the opening act.

Industrial location strengthened
This is a commitment to Switzerland that would have been praised a few years ago. "But it could also have asked whether production in the highest price country Switzerland was worthwhile at all," said V-Zug CEO Peter Spirig. But times have changed. "Corona, the systemic conflict between China and the USA, and now the war in Ukraine have called globalisation into question." As a result, production in Switzerland has now taken on a new significance.

The effects of these crises can already be felt today. "Electronic components in particular are currently difficult to procure," says Peter Spirig. "We are living from hand to mouth." Long supply chains have had their difficulties, which is why V-Zug is also examining how supply chains can be shortened. "Thanks to automation, personnel costs play a smaller role in industrial production," he adds. As a result, more things can be produced profitably in Switzerland and Europe.

Not ahead in terms of costs – but in terms of quality
This also fully applies to refrigerators. "We have modern machines that can be quickly converted," explains Peter Spirig as he walks through the production hall. "Thanks to these systems, we can produce very flexibly." This comparatively small plant can thereby also be operated profitably –while the competition builds plants with capacities of half a million and more. "But we're not aiming for cost leadership here either," says Spirig. Our focus is on quality and innovation, "for which you can also charge a corresponding price".

The capacity could also be expanded, however. "We still have room here to expand production," says Peter Spirig. Growth is still possible before such a step becomes necessary, however. V-Zug currently produces just under 100,000 refrigerators a year. This means that every third refrigerator purchased in Switzerland comes from here. Some refrigerators also go abroad, but the export share is less than 15%.