Page 7 - Best of 2019 English

learn a lesson from the way this confrontation has played out: those who threaten want to negoti- ate – and negotiations have to be conducted with self-confidence and consistency.
STIL: Let’s move on to a more internal perspective. How are going to navigate through the year 2020? Prof. Fuhrmann: The half-life of entrepreneurial decisions in an industrial corporation should cer- tainly be a few years. This is the case with us. We’re sticking to our strategy that ongoing improvement and long-term future orientation go hand in hand. We don’t want to get into the position of being forced into a corner – and this is not going to hap- pen. We want to be masters of our own fate. There are also several examples in the recent history of the steel industry where companies or parts of companies were at risk of becoming the pawn of various outside protagonists. In order to avoid this, we prefer to face up to shifting conditions well in advance.
“FitStructure 2.0” is the continuation of our internal optimization program. Here, we’re not simply applying across-the-board cuts: we’re pro- ceeding in a selective manner as required by devel- opments. Measures differentiated in this way are always geared to the needs of the respective sub- sidiaries and their individual market environment. We also take care to ensure close communication with employee representatives. By 2022, we aim
to generate at least EUR 240 million in earnings improvement potential through “FitStructure”.
This goal is ambitious – but our approach is promising. At Peiner Träger GmbH, we managed to swiftly complete an in-house restructuring program within just a few months – despite much pessimistic talk, not least in the capital market. To be frank, putting KHS on the right track took longer. But here, too, entrepreneurial success was achieved by means of new management, product innovations and streamlined processes in pro- duction and service. We’re currently pursuing a similar strategy in the area of precision tubes.
STIL: What are we doing to promote growth? Prof. Fuhrmann: As is already known, we won’t be aiming for volume growth in the steel compa- nies but instead focusing on qualitative improve- ments. And we’re investing considerable sums of money for this purpose: construction of the third hot-dip galvanizing line at Salzgitter Flachstahl, for example, as well as a new heat treatment line in Ilsenburg; both are geared towards producing steel products of the very highest quality on a global scale. In the trading area, we recently made an acquisition to expand our sales network in the Netherlands. In Mexico, the expanded precision tubes plant is in the ramp-up phase, with the
aim of supplying our customers in the NAFTA region with sophisticated products. The “factory of the future” is currently going into operation at DESMA Schuhmaschinen (see STIL 4/19). A total
of around EUR 750 million in capital expenditure is planned over the next three years. In addition, EUR 280 million will be spent on research and development in the same period. As you can see: we’re investing confidently and with a focus on the future, and we’re well on track – on an ongoing basis! We don’t intend to become complacent in good times, nor will be putting an end to projects that have good prospects during a slump.
STIL: In our STIL cover story we are showcasing SME customers. What can we learn from them as a corporation?
Prof. Fuhrmann: An great deal ... and I believe we have already gone a long way in terms of adapting what we have learned to date. If you look at our decentralized Group organization, you’ll un- doubtedly see that we’re specifically positioned in
a customer-oriented and market-oriented manner. In the five business units under the management holding, subsidiaries of varying size are able to act with a large degree of independence. This gives us an organizational set-up that allows elements of central control and optimization where necessary, while at the same time ensuring direct market proximity for rapid action. Being on an equal foot- ing with customers is particularly important to me here. This includes having in-depth knowledge of our customers’ needs and processes, unconditional commitment to service and quality, maintaining intense customer contact, and professional han- dling of critical situations. I have a substantiated impression that we’re doing well here as compared to competitors. Of course, it's not just a matter of structural and process organization – in the final analysis the mindset is crucial, regardless of the size of the company.
We’ve also been working towards this with our mission statement and the comprehensive initia- tives arising as a result. This is why our motto in 2017 was: “Clearly on course towards customers” – so as to gear our thinking and actions even more specifically to their needs.
In discussion at the Handelsblatt conference: Professor Fuhrmann and Federal Minister for the Environment, Svenja Schulze
SALZGITTER INSIDE 7
Photo: SZAG