At the close of its 111th financial year on 30.6.2023, Magnet-Schultz (MSM), specialists for electromagnetic solutions, can report a consolidated group turnover of 444 million Euros. This corresponds to a slight increase of more than 3% compared to the previous year, thanks in particular to the strong American market with fewer disturbances in the supply of energy and raw materials than in Europe and Germany.
The potential of renewable energies in electricity and heat is also economically and sustainably exhausted at MSM, with the goal of CO2 neutrality in the Allgäu by 2035. We find the parallel ongoing reduction of base-load-capable capacities, growing dependence on foreign supply and raging prohibition culture instead of technological openness and private-sector-driven innovations extremely critical for Germany as an industrial location. Furthermore, the excessive bureaucratisation and documentation mania in many areas are further burdening the economy with non-value-added activities. And at the vocational and technical schools in Memmingen, modern investments in substance and equipment are urgently needed in order to offer young people and companies in the region equally good opportunities in the future. We are in constructive dialogue with the city in this matter.
Our strong team continues to push product and process innovation internally forward and new applications in electromobility, commercial vehicles and hydrogen valve technology will bring future growth. In the past financial year, MSM invested over 50 million Euros in new projects and technologies as well as capacity expansion and rationalisation in the Allgäu region alone. The production starts for various large orders with double-digit million sales in the next few years are being prepared at full speed. The global market demand in the automotive industry has recovered parallel to the global supply situation, but there is currently a slowdown in automation technology and hydraulics and the cost situation remains difficult.
MSM increases wages and salaries by three times 3% until the end of 2024 and pays out the full inflation compensation premium of € 3,000 in three tranches. In addition, education, health care (e.g. MRI children's examination tube for the Klinikum MM) and social institutions as well as culture and sports clubs were supported with a total of more than € 100,000 in donations in the past financial year. We employ a good 2,000 people in Memmingen, of which 125 are currently apprentices and dual students, and another 45 apprentices and 8 students will be hired in autumn 2023. With six other companies in Germany, USA, Switzerland, China, England and Italy, the MSMgroup currently has 2700 employees. With our plants in China and the USA, we continue to grow internationally in a diversified manner and can successfully serve "local for local" globally.