SGM Moves Production to Denmark

	David P. Meyer

A year and a half ago, Peter Johansen took ownership of the Italian lighting company SGM and started facilities in Aabyhoj, Denmark. Now the entire production, warehouse, and administration are combining in a new 6,500 sq. metre facility in Aarhus, Denmark.

In the intervening 18 months since Johansen became CEO, the company has launched a new LED product range, established a global distributor network, and worked with top international tours.

"We anticipate that this move will create up to 400 new jobs over the next two years," Johansen says. The strategy is based on the business model Johansen has implemented throughout the past four decades with a number of successful start-ups that quickly converted into market leaders-including Martin Professional in the 1980s.

The new 6,500 sq. metre facility is located in Aarhus, and renovations have been initiated to create a state-of-the-art production environment. Meanwhile, the Danish labour force is already increasing dramatically. By the end of 2013, SGM expects to have moved all production activities to Denmark.

"It is true that labour costs are higher in Denmark, but this evens out with the savings related to international sea and air freight costs," Johansen says. "On top of that, there is the 'feel-good' factor, knowing that all future products will be manufactured under the most acceptable working conditions and environmental considerations, while it enables us to monitor compliance and uphold strict quality control."

This accelerated program has been made possible by a significant strengthening of the capital base, as Danish investment company, Industri Udvikling, last month confirmed a 30% stake in the Group. The company's equity now stands at nearly 9.5 million euros.

Investment director from Industri Udvikling, Lars Buhl, comments, "SGM and Peter Johansen have demonstrated an impressive phase of development. In a very short time, they have not only developed numerous new products, but they have also gained acceptance on the market. I believe that Peter Johansen and his team have 'done it again' and that SGM's prospects are excellent."

This development coincides with the appointment of David P. Meyer (former COO at Velux) as chairman of the board. Johansen says, "Now that SGM has passed the startup phase and is into the growth phase, it makes perfect sense to have such experience and competence in our management."

"SGM is an innovative and customer-focused company based on highly skilled and dedicated employees. SGM sets new standards in an industry where customer focus, creativity, and speed are the key for success. It is motivating and inspiring to be part of a company with such significant growth and high potential. Add to this the fact that this growth is based on national labor makes SGM a great asset for Denmark. There should be more businesses like SGM," Meyer says.