Sustainable RFID Production Made-in-Europe

AEG Identifikationssysteme has been part of the AEG AG Group since 1989. From the very beginning, the company focused on labeling and identification technologies. In 1996, AEG ID was spun off from the parent group. In 2003, AEG ID became independent and was established as a limited liability company with its headquarters in Ulm. This year, the company’s history of technological development culminated in the stable company takeover by a new, experienced management team.

Since 2023, Norbert Knapich, who has been with AEG ID since 2004, has led the company as Managing Director. Simon Arch holds the position of Head of Sales (CSO) and Head of Marketing. He has been with AEG ID since 2007. Norbert Knapich and Simon Arch focus on consistency, sustainability and solution-oriented proximity to the customer.

1. Is there a recipe for success for the company’s 30-year history?

Norbert Knapich: To answer your question in a few words: AEG ID has an enormous vertical range of manufacture. The only raw material we purchase is silicon. All other components are produced at the main site in Ulm, or at the production site in Vrchlabi, Czech Republic.

We can therefore adapt optimally to challenging situations or specific customer requirements. We have control over all production steps, from the chip, to the finished product. Our current product portfolio meets the requirements of a constantly evolving market.

Simon Arch: I would also like to add that it is not just us in the management team, but also the entire team that is on hand with expertise for any individual solution. This means that when a reader is sold, the engineer responsible knows that it was his project. He developed the hardware and software completely on his own responsibility.

This results in a high level of identification, satisfaction and a sense of responsibility at AEG ID. We see ourselves as a soccer team and always act together.

2. The main company location is in Ulm, in southern Germany. What does ‘Made-in-Germany’ mean for AEG ID?

Simon Arch: ‘Made-in-Germany’ is not trivial in terms of energy and labor costs. Nevertheless, this strategy gives us an enormous competitive advantage. Since 2008, we have been producing entirely in Europe at two locations. In concrete terms, 60 percent of all products are manufactured in Germany and 40 percent in the Czech Republic.

This constellation has enabled us to cushion supply bottlenecks very well during the COVID-19 pandemic. We were able to supply our customers with transponders and readers as agreed. That is why ‘Made-in-Germany or Europe’ primarily stands for high-quality products and a reliable supply chain. However, without our automation strategy in production, the transformation to ‘Made-in-Germany’ would not have been possible.

3. What special orders do customers approach you with?

Knapich: More often than expected, RFID systems are installed that do not lead to success or may even cause complications. That’s when we come into play. Our orders primarily include technological challenges that cannot be overcome with standard applications.

As we cover the entire frequency range, low, high and ultra-high frequency as well as NFC, we can offer flexible solutions. On-site test applications also build on trust with the customer.

Arch: Initial installation or simple implementations are of course also part of our projects. Our customers want to identify, automate, digitize, record, control, secure or even authenticate. The range is enormous.

Understanding the key data of the customer’s existing processes and the desired goals for process optimization are the first steps in finding a solution. Only then can the appropriate transponders, antennas and readers be determined. Each installation must be adapted precisely to the customer’s requirements and the existing infrastructure. We help our customers to make their processes operational and efficient.

Knapich: : I’d also like to add that we primarily offer solutions in the areas of access control, time recording, animal identification, industrial processes, track and trace, container management as well as traceability, inventory, maintenance and testing. We have developed new readers and solutions for these areas that combine a wide variety of reading algorithms and that integrate the latest bus systems.

With its corporate history, the high-tech company is one of the pioneers of RFID technology in Europe. The RFID solution for the Coca Cola Group in the early 2000s was a spectacular achievement. At the time, AEG ID developed an RFID-supported filling control and keg identification system for the beverage giant. This application is still in operation today. Almost simultaneously, the company launched glass transponders for the identification of animals. Further industry and sector solutions followed.

Today, AEG ID has flexible production capacities and handles both small quantities and large international orders. The company is represented worldwide by its long-standing partner network. The RFID systems are in use from Hawaii to Japan and from Norway to South Africa.

1. “From the chip to the finished transponder” is one of your slogans. Does AEG ID produce the chips for transponders itself?

Arch: Yes, we produce the chips in a wide variety of designs, options and customer-specific printing technologies with a high level of vertical integration at our production facilities in Ulm and Vrchlabi. The only raw material we purchase is silicon.

2. What data is relevant for RFID solutions?

Knapich: The focus of the applications is on transponders that record production data, for example in industrial production. In photovoltaics, for example, the panels must always be supplied with a certain wattage. However, the cells themselves always deliver different wattages.

Although the number per batch is very homogeneous, it varies considerably across all batches. This means that the producers must have batch-controlled production. Transponders that uniquely identify the panel and thus enable the exact recording of production data are therefore essential.

3. What role does counterfeit protection play in RFID solutions?

Knapich: Whenever a manufacturer wants to ensure that the original product is used and that this product cannot be plagiarized, encryption algorithms are used. Our transponders offer this feature.
4. Are hybrid solutions also part of the portfolio?

Knapich: Yes. We also offer transponders for technologically more demanding projects. Transponders that have combinations of different frequency ranges in one product are required for secure access and time recording in particular. Some solutions also require two different transponders in the same frequency range.

5. What performance must transponders have when it comes to the cybersecurity of industrial processes?

Arch: The requirements for RFID transponders are currently increasing, as transponders in systems and machines must not be vulnerable to attack. This means that data communication must be encrypted. Our products deliver this performance.

6. How is the portfolio of transponders set up?

Arch: We manufacture transponders in a wide variety of shapes, designs and frequencies. We already have a standard product portfolio, mainly for the sectors of animal identification, industry and logistics, security, testing and maintenance technology as well as kegs and containers. Customer-specific transponders represent another large sector.

7. Which readers does AEG ID offer?

Knapich: Our reader portfolio includes mobile and stationary devices for all frequencies. We offer the ARE H9 LF handheld reader with medium range for mobile data capture in the animal sector as well as in industry and logistics. It offers excellent performance in logistics. We manufacture stationary readers for harsh industrial environments and desktop applications.

The ARE i9x LF reader, for example, combines all common LF algorithms in one device, can be installed directly on metal and has a connection for an external antenna. Our new ARE i2.0x reader series is a very powerful further development of the existing devices for industrial applications.

Arch: The ARE i2.0x product series is the successor to the ARE i2 series, which is used in large numbers worldwide. These new devices master a wide range of reading technologies and algorithms in one device. In principle, they cover everything from the past to the future.
8. New devices generations – what does this mean for customers?

Knapich: We are somewhat unique at this point. Most providers always adapt their current portfolio to new devices and no longer keep older device generations in stock. It’s different with us. We can also meet the device requirements for the older RFID applications previously installed. We therefore also supply customers who are using legacy systems.

For industrial automation, we supply RFID solutions that can work with both old systems and new technologies.

AEG ID has been certified as a climate-neutral company by Fokus Zukunft since 2019. The company received the climate-neutral status because unavoidable CO2 emissions were neutralized beyond the required level by investing in internationally recognized climate protection projects.

Once it’s CO2 footprint had been calculated, AEG ID worked with Fokus Zukunft to introduce measures to reduce CO2 and offset unavoidable emissions with the help of high-quality climate protection certificates.

1. Why is sustainability such an important corporate goal for AEG ID?

Arch: We have understood what the Intergovernmental Panel on Climate Change has conclusively demonstrated – avoiding emissions costs only 0.6 percent of annual value creation, whereas repairing the damage will cost many times more if we continue to act as before.

2. Is the economic argument the only one?

Knapich: No, the economic argument is of course just one of many. But for us as a private company, it is a very important one. A climate-neutral company like AEG ID has a competitive advantage in times where there is a shortage of qualified workers. According to a recent survey by the Federal Ministry for the Environment, 91 percent of respondents in Germany want an environmentally and climate-friendly economy. We offer this.

Qualified and motivated employees therefore respond positively to our certification. In addition, we actually have customers for whom a neutral carbon footprint represents a decisive criterion.

3. How do you achieve your sustainability goals?

Arch: First and foremost, we manufacture our components ourselves and produce our products entirely in Europe. 40 percent of our transponders are manufactured in the Czech Republic and 60 percent in Germany. The readers and antennas are also manufactured in Germany. This fact alone means that our resource consumption and CO2 footprint are relatively small.

Knapich: On the other hand, we support climate protection projects in countries of the Global South, where they have the greatest impact on development. They simultaneously strengthen economic development, improve people’s living conditions and protect our planet. This is linked to offsetting our greenhouse gas emissions.

By purchasing climate protection certificates in 2022 and 2023, we have completely offset our CO2 emissions. We are using these certificates to support a forest conservation project in Brazil and a hydropower plant in Uganda.

4. What specific climate protection initiatives is AEG ID involved in?

Arch: We have been a founding member of the Berlin-based Alliance for Development and Climate Foundation since 2018. We are also a member of the Climate Initiative of the Senate of Economy, which was founded in 2011. We also work together with Fokus Zukunft to promote both regional and global climate protection projects.