Written by Thomas Geiz, Master Electrician, Vertical Market Management Infrastructure, Phoenix Contact Deutschland GmbH, Blomberg, Germany

Comprehensive protection against unauthorized access

Digitalization has long since become a part of our private daily lives. More and more people are convinced by the advantages of smartphones, tablets, networked TVs, and PCs. No one wants having to go without weather apps, GPS systems in cars, or online banking. But wherever there is light, there is shadow. With digitalization, new forms of crime have developed. The various options of Ethernet-based networking can also be used to substantially influence the availability of the technology. Reports of malware attacks and their serious consequences appear in the media on an almost daily basis. It is therefore crucial that the digitalization of processes is accompanied by a solid strategy for the implementation of IT security. This applies to all companies and employees – regardless of whether they are already on the digital way, or still operating system visualization equipment running on old Windows XP machines.

Open solution increases flexibility and networking capability

Remote control technology is an essential component in the automation of water management systems. In the course of digitalization, Ethernet-based solutions offer numerous advantages here, but also present some challenges. Operational considerations such as the integration of existing technology and access security can be solved easily and economically with the PLCnext Technology automation platform.

An app for easy automation

With PLCnext Technology, Phoenix Contact has developed an open automation platform which tailors to the needs of plant operators as regards digitalization, IT security, modularity, usability, and efficiency. Among other things, the solutions stands out because the existing automation and remote control infrastructure can be used along with it. The input and output modules of the Inline automation kit installed years ago can thus remain in use, which significantly reduces the expenses for the migration of the existing automation and remote control system.

Whether it’s about a new remote control infrastructure or the migration of an existing system: The PLCnext Technology ecosystem lays the foundations for the digital transformation in remote control technology while also meeting the requirements regarding IT security in accordance with industrial standards.

Phoenix Contact achieved sales of EUR 2.38 billion in 2018 with sales growth of 8%. At the same time, the number of employees increased to 17,400 worldwide.

“From a global perspective, we had very good growth figures in the markets, but had to accept negative currency effects,” says CEO Frank Stührenberg.” In Germany, still our most important market for Phoenix Contact, we again achieved a very good result with 7%. There was double-digit growth in all regions of the world”.

The company invested €207 million in IT infrastructure, machinery and equipment as well as buildings. An amount in excess of 200 million euros will again flow into investments this year. In China, for example, Nanjing, the headquarters of our Chinese subsidiary, will expand its production and logistics facilities to a total of 23,000 m². The location will be completely built according to Industry 4.0 standard. The site in France will invest 15 million euros in logistics and office space by 2020. The logistics in Harrisburg, USA, will be expanded by 7,700 m². A new building for printed circuit board connection technology with 10,300 m² is currently being built in Blomberg. Development units, laboratories and product management offices in the immediate vicinity of the production building will find their home here.

In the current year 2019, a budget of 7% of sales for research and development will primarily serve product technology for digital transformation as well as solutions for the future markets of energy, mobility and infrastructure.

At the Hannover Messe, which began on April 1, Phoenix Contact, once again, was the third largest exhibitor presenting its solutions for the digital transformation. With a total of 2,500 m², the company was present at 11 trade fair stands.

Learn more about our highlights and focal points at Hannover Messe.

Click here to know more about who we are and what we do.

Happy New Year!

Here we are uncovering to you the top rated topics and most read news of 2018!

In case you missed out on any of this, you now have another chance to read it.

Multi-level terminal blocks for building installation save space

Our installation terminal blocks are impressing users with their low and compact design.

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Suitable for everyone

The complete portfolio of electronic circuit breakers provides intelligent protection for your power supply system. Take advantage of the easiest handling and simple product selection.

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High speed, future proof data transmission

The new splice boxes from Phoenix Contact ensure continuously reliable data transmission in real time. With their compact, uniform design, the splice boxes ensure ample interior space for secure connection of fiber optics.

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PLCnext Technology – The platform for limitless automation

Enhance your automation thinking and discover the world of open automation with us.

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Efficient laser marker

The TOPMARK NEO laser marker redefines laser marking: with compact dimensions and easy operation via the integrated color touch display, it creates particularly robust and high-quality industrial markings.

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The narrowest surge protection for I/Os and controllers

The narrowest pluggable device protection with an overall width of 6 mm, type 3 / Class III, with remote indication contact and Push-in connection technology. Also suitable for DC applications.

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QUINT DC UPS for industrial networks

The new Quint DC UPS uninterruptible power supply can be integrated into established networks and continues to supply your systems without interruption even in the event of a mains failure.

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Compact high-performance power supply

For the first time, Phoenix Contact’s QUINT POWER power supply is offering superior system availability in the power range up to 100 W in a very small size.

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Phoenix Contact – Key partner on the road to a smarter world

Ulrich Leidecker, President of the Business Area Industry Management and Automation, spoke at a press conference held at the SPS IPC Drives specialist automation trade fair in Nuremburg (November 27-29, 2018) about the positive development of the business situation, with sales for 2018 forecast to be more than € 2.3 billion by the end of the year.

Globally, the growth rates are good across all markets, even though there were negative currency effects in a large part of these markets. The Chinese market has continued to recover and, as in 2017, we are again experiencing double-digit growth. In the US, growth is slightly better at over 15 percent, but still slightly below the growth results of Europe, where – not including Germany – we have achieved 16 percent. With an almost 30 percent share of global sales, Germany is still the most important market for Phoenix Contact. A very good result is expected again for this market – this year with a growth of 7 to 8 percent. In total, the global growth is around 12 percent. Converted into euros, the nominal growth will be well above 8 percent.

The in-part turbulent market development – growth exceeded 20 percent in certain significant areas – has led to considerable challenges in the supply chain and in cost increases. We met this increasing development of sales by investing in all company divisions. We have therefore increased capacities significantly again this year: In Nanjing, China, the headquarters of our Chinese subsidiary, significant extensions across a total of 23,000 m² are being created in the areas of production and logistics. The facility will be built completely in accordance with the Industrie 4.0 standard. For the first time, large parts of the machine park and in particular the new logistics area will be completely automated with the PLCnext Technology controller solution. The total volume of investment in China in 2018 amounts to approximately € 30 million. The rapidly increasing demand in India requires a significant expansion of local production, the capacity of which has been practically doubled with the 2018 extensions. The total investment here amounts to approximately € 10 million.

Another focal point of the investments is the continuous expansion of the machine and plant park, which supports the opportunities of digitalization in our own company and translates the idea of “Industrie 4.0” into practical applications. From collaborative robots through to driverless transport systems, the latest technologies that support the consistency of digital value added chains and that increase efficiency in production are being used. The total sum of investments in 2018 will therefore amount to more than € 200 million.

As in previous years, our outlay for research and development is approximately seven percent of global sales. The total number of employees will have increased by approximately 1,400 to almost 17,500 in 2018. Without including acquisitions, the number of personnel in Germany will have increased by more than 500 employees.

Leidecker made a special point of mentioning that the largest acquisition in the history of the company so far would be completed on 2018-12-31. We have acquired the two companies SKS Kontakttechnik and Pulsotronic from the SKS Gruppe, a group of companies with whom we have been working in close cooperation for many years. The two companies will bring further technological and manufacturing expertise to the Phoenix Contact Group – and, naturally, will expand our production capacity. This acquisition will also increase the Phoenix Contact Group workforce by 400 employees.

PLCnext Store – Platform for software solutions

In order to be able to keep pace with the speed of technical developments, which is increasing significantly throughout the world, new approaches need to be found to harness existing knowledge on a broader basis. Against this backdrop, Phoenix Contact presented the PLCnext Store at this year’s SPS IPC Drives. This is a platform that makes it possible for all developers and market participants to offer self-developed software solutions and to purchase existing software solutions. For example, anyone who has developed a solution for pumping stations, lighting systems or driverless transport systems will be able to recoup their own expenses much more quickly by providing and selling this solution in the PLCnext Store. Those looking for suitable solutions or providers will be able to find what they are looking for much more quickly here in the future. The “App Store”, which is used so naturally in everyday life, is thus entering the industrial world. The idea of openness is of particular importance for market acceptance. Therefore, all providers – as well as competitors – will be able to place their software products for the PLCnext Technology controller solution on the market via the PLCnext Store.

Reflecting on 10 years of Phoenix Contact in the Middle East

Celebrating 10 years of the establishment of our subsidiary in Dubai, being the first in our industry to establish a regional office, Phoenix Contact Middle East extends its sincere thanks to the leaders of the UAE and to all our business partners and valued customers in the region for their continued support, cooperation, and trust.

Phoenix Contact’s history has been shaped by a passion for innovation and technology. For generations, the firm has been committed to offering its customers the best quality in every respect. Phoenix Contact continues to invest in groundbreaking technology and in new products which will lead the industry in the upcoming times.

The firm’s approach is based on a solid foundation of trust and partnership. This motivates the company to take responsibility and gives it the needed freedom to come up with new ideas. In order to work together as closely as possible with their customers, they have established reliable local structures, supported by trusted channel partners to support their customers in their business wherever they are in the MENEA region.

Marwan Abdulaziz Janahi, Managing Director of Dubai Science Park, said: “Phoenix Contact was one of the very first businesses to establish in Dubai Science Park, and has since played an integral and pioneering role in developing our vibrant community of more than 350 companies and 3,600 industry professionals. It is with pride to have witnessed Phoenix Contact grow from strength to strength, as it is our mandate to support our partners. We wish Phoenix Contact our heartiest congratulations on journeying with us for the past 10 years.”