Sick and E+H form venture targeting process sector
20 August 2024 
The German sensor manufacturer Sick has formed a joint venture with the Swiss measurement specialist Endress+Hauser covering decarbonisation technologies for process applications. The JV is part of a wider strategic partnership between the companies aimed at supporting customers in the sustainable transformation of the process sector. The deal will also see around 800 employees in Sick’s sales and service operation for process automation being transferred to Endress+Hauser.
The latest announcement follows the signing of a Memorandum of Understanding between the two companies in October 2023, which stated their intent to jointly market and develop Sick’s analyser and gas flow meter technologies. They say their product portfolios are complementary, allowing them to offer process industry customers a broader range of technologies and services, and a higher pace of innovation.
The new joint venture will develop and produce process-related systems for decarbonisation. Sick and Endress+Hauser will each hold a 50% stake in the JV. Sick will contribute its Cleaner Industries production plants, as well as around 730 employees from various sites in Germany, to the JV, which is expected to start operations at the end of this year, providing that it receives approval from the relevant authorities.
Until then, there will be no changes for the companies’ process automation customers. Sick’s core business in factory and logistics automation, which accounts for more than 80% of its sales, will not be affected by the partnership, and will benefit from a stronger focus, according to the company.
“Our aspiration is to drive the sustainable transformation of the process industry and to support our customers in leveraging the opportunities presented by decarbonisation,” says Sick chairman, Dr Mats Gökstorp. “That is why Sick and Endress+Hauser are combining their technological and market expertise. In the interest of our customers and employees, we look forward to the strategic partnership and to shape the future of process automation together.”
“This strategic partnership opens up opportunities for growth and development for Sick and Endress+Hauser,” adds E+H CEO, Dr Peter Selder. “We are taking this path because by collaborating and networking we can achieve more together in a reasonable amount of time than either side could on its own – for the benefit of our customers, employees and both companies.”
Around 800 Sick employees focusing on Cleaner Industries in its global Sales and Service Units in 42 countries will transfer to Endress+Hauser sales centres, where they will market the joint venture’s products to customers in the global process industry, aiming to reach new markets and to open up new fields of application.
The two companies say that continuing to offer employees attractive working conditions, and reinforcing their expertise in the area of process automation, are “key priorities”. Workers’ representatives in Sick are said to support the partnership and have helped to prepare the planned transition “in close collaboration” with their employer.
The two partners say that their process product portfolios are complementary. Sick’s Cleaner Industries business develops and sells analysers for applications such as emissions monitoring. It also produces ultrasonic flow meters. Under the new agreement, Endress+Hauser will take over worldwide sales and servicing of these products.
Sick, founded in 1946, has more than 12,000 employees worldwide and generated revenues of €2.3bn in 2023.
Endress+Hauser – family-owned, like Sick – is a leader in measurement and automation technology for process and laboratory applications. It employs almost 17,000 people and in 2023 achieved sales of more than €3.7bn.
