The technology company is present on many military platforms, acting as a supplier for “European Sky Shield” and the Boxer armored vehicle.

The managing director of the technology company VINCORION in Wedel, Dr. Stefan Stenzel, is looking forward to 2024 with a positive outlook: “We have a lot of exciting projects in the works and have already delivered for major Bundeswehr armor projects. Our company’s turnover and net income will continue to increase,” explains Stenzel. He expects sales to grow in 2024.

VINCORION specializes in the provision of military energy supplies and has been operating independently since mid-2022. The company offers a range of modern generators for mobile use in the armed forces. VINCORION also supplies the energy systems of the Patriot and IRIS-T air defenses. Important components for power supply and weapon stabilization in armored vehicles such as the “Leopard 2”, the “Puma”, and the “Boxer” are also manufactured by the medium-sized industrial company, which has sites in Wedel, Altenstadt, and Essen.

Air defense in the “European Sky Shield”

For Stenzel, a currently important project in the defense sector in Europe is the development of the “European Sky Shield”: “Protection against air attacks, whether by fighter aircraft, long-range missiles and ballistic missiles, or cruise missiles, artillery, and drones, is of outstanding importance,” says the Managing Director.

“The European Sky Shield initiative is developing an integrated, multi-layered ground-based air defense system for as many European countries as possible. From a German perspective, it will be based on three platforms: IRIS-T, the “Patriot” system, and Arrow 3. VINCORION plays an important role here by supplying both IRIS-T and Patriot with tactical electrical power and enabling these systems to operate completely independently of public infrastructure in the field.”

Stenzel emphasizes that VINCORION’s new energy supply solutions follow the guiding principle of “Green Defense”: In addition to the benefits in terms of CO2 emissions, “green military solutions” ensure a reduction in logistics requirements, which in turn saves emissions, means less capacity is tied up, and increases the safety of soldiers.

The “Zeitenwende” must continue

Stefan Stenzel urges politicians in Germany to stay on course with the “Zeitenwende” and the equipment of the armed forces. “Politicians are still not turning all the signals green. The defense industry in Germany is still in a state of uncertainty. Big announcements are followed by cuts. In this nebulous situation, the industry still has no planning certainty. We would like to see more stringency and clarity from politicians for 2024.”

However, there are also positive signs: “The demand for tanks remains high with new technologies,” Stenzel notes. “The second batch of Puma has now been finally ordered, and other countries are also ordering the Leopard 2 and the Boxer.” It is also important to continue to reduce bureaucracy in procurement, even if great progress has already been made at the Federal Office for Procurement.

Attractive jobs for skilled workers

VINCORION is also planning further recruitment in the new year and offers attractive jobs. New employees are being sought at the sites in Wedel and Altenstadt in particular. In 2023, 90 new employees could be hired. “The shortage of skilled workers is affecting many industrial companies. VINCORION is no exception, but we still manage to attract talented employees and recruit new talent with very good social benefits and exceptional products,” says HR Manager Nina Römhild. The company has around 800 employees, 480 of whom work at the Wedel site. The low fluctuation rate among employees fell further over the course of the year – and is now only around three percent.

Media Contact:

Florian Hanauer
PR-Manager
VINCORION Advanced Systems GmbH
Feldstrasse 155
22880 Wedel, Germany
Phone: +49 4103 60-2250
Mail: florian.hanauer@vincorion.com

[/vc_column_text][/vc_column][/vc_row]

Wedel. Claus Ruhe Madsen, Schleswig-Holstein’s Minister for Economics, visited the technology company VINCORION in Wedel on Friday, April 14, to learn more about the situation in the German state’s industrial SME sector. The minister stressed that the German Armed Forces must be equipped quickly and that there shouldn’t be any further delays in procurement.

In a conversation with Madsen, Stefan Stenzel, managing director of VINCORION, explained the industry’s desire for planability and reliability from policymakers. He also showcased the latest developments in the industry related to, for example, “green defense” and ways to cut carbon emissions.

Procurement Cannot Be Allowed to Drag On

“The defense technology industry is extremely important to Schleswig-Holstein’s economy,” Madsen noted. Germany’s northernmost state is home to approximately 30 companies in this sector that employ roughly 7,000 people and indirectly provide as many as 20,000 jobs. The industry also includes a significant number of industrial SMEs – such as VINCORION.

“The state government wants a good portion of the 100-billion-euro special fund for Germany’s military to be invested here in the North,” Madsen emphasized. “New material for the military must be procured quickly; this is necessary both in terms of security policy and economic policy.” The minister expressed understanding for the fact that it causes problems for the industry when procurement processes take a long time. The industry needs binding commitments in order to plan, Stenzel explained. If equipment is given to Ukraine, for example, it will take up to 24 months to be replaced. This is because material is also sometimes difficult to obtain.

No Stigma When It Comes to Providing Loans

The fact that defense companies have difficulty obtaining loans from banks in times of military threat is not acceptable in this day and age. “There can’t be any stigma associated with this. That would be to disregard the importance of the defense industry to the state. And it would also run counter to our foreign policy and security policy interests.”

This situation was caused by ESG (environment, social, governance) criteria and the EU taxonomy, which imposes new rules on banks when it comes to providing loans. Defense technology must be recognized as sustainable to facilitate financing. Madsen plans to raise the issue not only with banks in the state, but also to continue talks about the potential involvement of the state-owned KfW Bank.

The German Armed Forces’ Investment Backlog Must Be Eliminated

The war in Ukraine has shifted the public’s perspective on the need for a military that is operationally ready and also on the defense technology industry in general, Stenzel told the minister. “In this respect, we can expect that the needed investments in our military will now also be made in Germany as soon as possible.”

Stenzel pointed out that his company still has not received any concrete orders from the 100-billion-euro special fund – even though numerous defense contractors have submitted inquiries. “The special fund has been specifically earmarked for equipment gaps and to replace old equipment. It’s absolutely clear that the defense budget needs to be increased by 20 to 30 billion a year.” This would be the only way to finance the army’s costs, which are rising due to inflation. In 2022, VINCORION was able to hire 79 new employees in Wedel, and will continue hiring this year. The company is also expanding its workforce at the Altenstadt site in Bavaria. “Finding skilled workers for the industry is not easy, however, not in Wedel and not at any of our other sites,” Stenzel noted.

Cutting-Edge Technology Manufactured in Wedel

Stenzel emphasized that SMEs also played a major role in technological development in Schleswig-Holstein. Addressing Madsen, who is also minister for technology, he said, “we design and manufacture hybrid systems for power generation at VINCORION.” This includes electronics and components such as the starter motor for the Leopard 2 tank or the motor that turns the vehicle’s turret. Weapon stabilization is cutting-edge technology that is manufactured here in Wedel. VINCORION is also working on technological solutions in the civilian sector, such as an innovative electronic rescue hoist being developed for its customer Airbus Helicopter, which meets the highest safety standards worldwide.

Climate change is playing a growing role not only in society as a whole, but also in the defense sector, VINCORION’s managing director explained to the minister during his visit. “We are working to make production processes at our company, corporate management, and also our products themselves more sustainable and carbon-efficient,” Stenzel said. The topic of “green defense” is becoming increasingly important, he noted, adding that “as a company, we stand fully behind the goal of reducing the carbon emissions generated by armies such as the Bundeswehr.”

Stefan Stenzel, Managing Director of VINCORION, welcomes Economics Minister Claus Ruhe Madsen in Wedel. Foto: VINCORION

Press Contact:

Florian Hanauer
PR-Manager
VINCORION Advanced Systems GmbH
Feldstrasse 155
22880 Wedel, Germany
Phone: +49 4103 60-2250
Mail: florian.hanauer@vincorion.com