We can win the race with the USA

The announcement was striking: at the beginning of the week, the VDMA, the mechanical engineering association, announced that it was halving its growth forecast for the robotics and automation sector. The main reason was that the domestic business was stagnating due to the ongoing economic weakness.

For David Reger, this was not surprising, as the automotive industry is one of the largest customers in Germany, and its problems with the transition to electric mobility make headlines almost daily. Reger does not see this as a temporary phenomenon: "The classic robotics business will come to a standstill," he predicts, especially as manufacturers from China are significantly pushing into the European market.

"We have to open up new markets," says the 36-year-old CEO and founder of the Swabian robot manufacturer Neura Robotics in an interview with the F.A.Z., immediately indicating the direction: humanoid robots.

Orders Exceeding One Billion Euros

In the film industry, humanoid machines have been a staple since the space saga "Star Wars," but in reality, there is still a lack of artificial household help that washes clothes, mows lawns, or tidies children's rooms. It is clear that the market for such robots would be global and worth trillions.

Reger sees the shifting strategy of Apple as a sign that the race for big money is gaining momentum. In the spring, the Californians first ended their development work on their own car before it was leaked that the company was redirecting resources to developing household robots. Other tech giants like Google can also fund their robotics divisions with substantial budgets.

Arm in Arm: David Reger and His Industrial Robot Maira

David Reger and his industrial robot Maira, produced in Metzingen, symbolize this shift. Neura now also has locations in Munich and the USA.

Reger's statement sounds surprising: "We can win the race with the USA." By this, he means his own company and Germany as a whole. There is a lot of knowledge about fundamentals and applications at universities and research institutions. Germany's old problem is to translate these strengths into business models and scale them quickly.

Start-up Aims for a Leading Position

"We need to be bolder and set ambitious goals," Reger repeatedly demands. This week, he was a sought-after guest at a conference on artificial intelligence and robotics hosted by the Ministry of Economic Affairs in Berlin. Until recently, his demands were often laughed at, Reger says, but today he is allowed to sit on panels and be heard. Doubts seem warranted, though, when a German start-up aims for a leading position in the world market. Where does the confidence come from?

Reger mainly touts that Neura Robotics has control over the entire value chain—from designing a highly complex robotic arm to the software for the platform that controls the machines. American competitors can often present attractive promotional videos online but have little to show in practice.

He compares Neura to Apple, which initially developed hardware with iPhones and iPads and then laid the foundation for a multi-billion-dollar service business with its own software platform. Neura's product range includes simple collaborative robots that can safely work alongside humans in factories, as well as the cognitive model Maira, which can engage in conversations and interactions.

The Order Book is Full of International Orders

This business forms the basis on which Neura aims to achieve more than 100 million euros in revenue and profitability next year. Currently, the company is growing in the triple digits, Reger says. Although the planned annual production of around 3,500 robots in 2024 is a drop in the ocean compared to industry giants like Mitsubishi or Fanuc, the outlook seems rosy:

The order book contains contractually secured orders worth more than one billion euros from customers like Kawasaki and Omron, Reger says. In May, Neura gained some attention with its appearance at the Automate trade show in Chicago, the most important industry meeting in North America.

Through its platform, 50 robots were controlled for demonstration purposes. Again, Reger draws a comparison to the Apple Store: At Neura, customers can teach their machines desired skills such as welding using special apps, instead of programming each unit individually.

Bought Out of China

Neura aims to take the next decisive step with its household robot Mipa. This machine can scan rooms and autonomously perform its tasks thanks to artificial intelligence. Developers are currently working on the third generation of Mipa, which should be ready by the end of the year. Reger does not commit to a date for market readiness. However, he has no doubt about the breakthrough. "It's like autonomous driving: it takes a little longer, but it will come."

Reger, originally from Rottweil in Baden-Württemberg, is a trained model builder and designer. He worked for about seven years for Mabi AG, a Swiss machine manufacturer, gaining experience with industrial robots. In 2019, he founded Neura Robotics in Metzingen, a city known nationwide as an outlet city.

Investors Came After House Pledge

Lacking investors from Europe or America, he brought in a financially strong partner from China with Han's Laser Technology, although Reger is a sharp critic of the sale of the Augsburg-based robot manufacturer Kuka to China. He managed to keep the rights and patents in Metzingen. However, this arrangement became problematic during the Corona pandemic because no money could be transferred from China.

Reger pledged his house and bought out the Han Group. He then raised about 100 million euros from investors, including Inter Alpen Partners, Vsquared, Prime Pulse, HV Capital, and Exor, the investment company of the Italian Agnelli family. Reger holds the largest stake.

In recent years, Neura's factory site in Metzingen has expanded rapidly. A new production facility will soon open nearby. The goal there is AI-supported robot production with minimal personnel.

Neura manager Jens Fabrowsky, who has already built a state-of-the-art chip factory for Bosch in Dresden, is responsible for the implementation. However, the number of employees will soon exceed 300. Although there is no immediate financial pressure, Reger says he has several attractive offers on the table.

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Original article: https://www.faz.net/aktuell/wirtschaft/unternehmen/humanoide-roboter-wir-koennen-das-rennen-gegen-die-usa-gewinnen-19800292.html

https://neura-robotics.com/

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