19.01.2013 Views

PDF [2.4 MB] - Kolbenschmidt Pierburg AG

PDF [2.4 MB] - Kolbenschmidt Pierburg AG

PDF [2.4 MB] - Kolbenschmidt Pierburg AG

SHOW MORE
SHOW LESS

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

Orders up by<br />

around 60 percent<br />

Wiesbaden. A leading supplier of<br />

X-ray scanners, the Wiesbaden-based<br />

Heimann Systems group has once<br />

again shown a sharp surge in orders<br />

received. Following the 50-percent<br />

gain in 1999, orders booked in 2000<br />

will rise by around 60 percent to just<br />

under € 156 million (up from € 98<br />

million), order backlog advancing<br />

commensurately by a predicted just<br />

under 89 percent to over € 98 million<br />

(up from € 52 million in 1999). Due to<br />

invoice timing technicalities, sales at<br />

The latest news from the Rheinmetall group 5/2000<br />

Newsline<br />

Das Profil<br />

Newsline<br />

Shareholders’ letter of <strong>Kolbenschmidt</strong> <strong>Pierburg</strong> <strong>AG</strong> – orders buoyant<br />

Automotive’s profitability healthy<br />

Düsseldorf. As reported in the most<br />

recent newsletter from the management<br />

holding <strong>Kolbenschmidt</strong> <strong>Pierburg</strong> <strong>AG</strong>, the<br />

<strong>Kolbenschmidt</strong> <strong>Pierburg</strong> group continued<br />

its successful performance in the<br />

third quarter of 2000, with sales up by<br />

approximately 19 percent to €1.315 billion<br />

(period between January and September<br />

2000). EBDIT in the first nine<br />

months of 2000 totaled €141.6 million,<br />

at €18.7 million this being clearly higher<br />

than last year (plus 15.2 %). EBT totaled<br />

€31.1 million compared to €3<strong>2.4</strong> million<br />

in the related period last year. The<br />

group which had a workforce of 12,315<br />

persons worldwide at the end of September,<br />

has full order books and anticipates<br />

sales distinctly above €1.7 billion<br />

for the entire fiscal 2000.<br />

Developments in detail: The third<br />

quarter of 2000 saw an impressive<br />

continuation of <strong>Kolbenschmidt</strong> <strong>Pierburg</strong>’s<br />

successful first six months’ performance,<br />

with year-earlier sales in the<br />

third quarter beaten by almost 14 percent<br />

in the period July through September<br />

2000. The major ingredients of this<br />

sales boost were the acquisition of Magneti<br />

Marelli’s pump business at the<br />

start of 2000, a high-riding US dollar,<br />

and organic growth. As a consequence,<br />

<strong>Kolbenschmidt</strong> <strong>Pierburg</strong> was able<br />

to capitalize on the ongoing upswing in<br />

a number of important markets to<br />

achieve for itself even greater gains.<br />

The group was unaffected by faltering<br />

demand for new cars, especially in Germany,<br />

this sluggish situation continuing<br />

into the 3rd quarter of 2000. German<br />

carmakers were able to outweigh<br />

slumping domestic demand with further<br />

export advances and <strong>Kolbenschmidt</strong><br />

<strong>Pierburg</strong> penetrated deeper<br />

into attractive foreign markets.<br />

In a period invariably weak on account<br />

of annual vacation shutdowns,<br />

the group nonetheless generated a<br />

pretax profit. At a total € 31.1 million for<br />

the nine months ended 30 September<br />

2000, this is almost a repeat of the<br />

successful € 3<strong>2.4</strong> million for the 1999<br />

nine-month period. At € 38.8 million,<br />

EBIT reached the good 9-month figure<br />

for 1999 (€ 39.2 million) while the EBIT<br />

margin for the first nine months of this<br />

year amounted to 3.0 percent. Sales<br />

are expected to continue positively in<br />

the fourth quarter of 2000.<br />

€ 110 million will be slightly below<br />

the € 117 million for 1999.<br />

The jump in orders during 2000 is<br />

mainly due to healthy business in<br />

freight scanners and success in the<br />

keenly contested U.S. market for baggage<br />

scanning systems, product inspection<br />

units (especially in the food<br />

industry) and in the biometric sector.<br />

Meriting special mention is the breakthrough<br />

in the U.S. market where for<br />

the first time the Federal Aviation<br />

Administration (FAA) awarded Heimann<br />

Systems a megaorder for hand<br />

baggage scanning systems.<br />

Added momentum was generated<br />

Automotive inside: <strong>Kolbenschmidt</strong><br />

<strong>Pierburg</strong> delivers the complete aluminum<br />

engine block, pistons, plain bearings<br />

as well as oil and water pumps<br />

for Porsche’s 6-cylinder Boxter engine.<br />

With sales of € 1.315 billion between<br />

January and September 2000, <strong>Kolbenschmidt</strong><br />

<strong>Pierburg</strong> generated 18.6 per-<br />

(Continued on page 2)<br />

by new international security requirements<br />

effective from 2003 for 100percent<br />

control of check-in luggage at<br />

airports. A case in point: Heimann Systems<br />

won a massive order for fitting<br />

out Düsseldorf airport with an X-ray<br />

system for fully automatic explosives<br />

detection.<br />

Heimann Systems is a subsidiary of<br />

Aditron <strong>AG</strong>, which comprises the Electronics<br />

sector within the Rheinmetall<br />

group. With more than 16,000 units<br />

and systems installed in 150 countries,<br />

the Heimann Systems group has<br />

established itself as a world leader in<br />

the market for scanners used in X-raying<br />

mail, luggage, and cargo.


Newsline<br />

Shareholders’ letter of <strong>Kolbenschmidt</strong> <strong>Pierburg</strong> <strong>AG</strong> – orders buoyant<br />

Automotive’s profitability healthy<br />

(Continued from page 1)<br />

cent or € 206 million more sales than<br />

in the same year-earlier period. Non-<br />

German sales, especially high in the<br />

first six months, remained steady at 66<br />

percent for the first three quarters.<br />

Newcomers Zollner Pistons and Magneti<br />

Marelli pumps together contributed<br />

€ 96 million to sales while the euro’s<br />

frailty added another €33 million,<br />

compared with 1999. Hence, the remaining<br />

€ 77 million (up 7 percent) attributable<br />

to organic growth clearly outpaced<br />

worldwide automobile output of 5.5<br />

percent. All the divisions played their<br />

part in this vigorous internal growth.<br />

Discounting the acquisitions, parity<br />

changes and division reshuffles, air<br />

supply/ pumps added €14 million, pistons<br />

€26 million, plain bearings €14<br />

million, aluminum technology €14 million,<br />

and motor service € 8 million to<br />

the group’s growth.<br />

The rapid like-for-like expansion of sales<br />

in the first nine months of 2000 was<br />

engendered both by successful product<br />

start-ups and substantial increases in<br />

shipments of existing products. Moreover,<br />

customers continued to call off in<br />

large quantities products which, in fact,<br />

had been earmarked for phase-out.<br />

From January to September 2000, the<br />

Automotive group spent € 121 million<br />

on additions to tangible assets (including<br />

leased assets), thus exceeding by<br />

around 6 percent the level of depreciation<br />

(including rental expenses). The capital<br />

expenditure (including leases) of<br />

€45 million in the third quarter of 2000<br />

was again mainly related to new OEM<br />

projects which over the years ahead will<br />

sow the seeds for further lucrative growth.<br />

These include fresh orders for magnesium<br />

intake manifolds, electropneumatic<br />

valves, electronic EGR systems,<br />

and new types of pistons for direct-injection<br />

diesel engines. Another<br />

focus of expenditure was the continuation<br />

of low-pressure casting projects for<br />

engine blocks, whose series production<br />

is due to be launched in 2001. The<br />

rationalization and improvement of manufacturing<br />

processes were further focal<br />

expenditures.<br />

With spending heavy in the final quarter<br />

of 2000, 12-month capital expenditure<br />

by <strong>Kolbenschmidt</strong> <strong>Pierburg</strong> will, in<br />

absolute terms, once again match the<br />

year-earlier level, although measured<br />

against the sharp gain in sales, relative<br />

expenditure in 2000 will be underproportionate.<br />

The appreciable rise in depreciation<br />

is attributable to the salesrelated<br />

heavy spending in 1999 and<br />

2000. As a proportion of sales, however,<br />

depreciation was up only slightly.<br />

As of 30 September 2000, the <strong>Kolbenschmidt</strong><br />

<strong>Pierburg</strong> group had a workforce<br />

of 12,315. Because of successful<br />

rationalization efforts and despite higher<br />

sales, the total headcount was around<br />

100 below that at the close of the<br />

first two quarters in 2000. Compared<br />

with 30 September 1999, the group employed<br />

only an additional 527 persons,<br />

457 of which at Livorno, Italy. Hence,<br />

the gain is almost exclusively due to the<br />

acquisition of Magneti Marelli’s pump<br />

operations, and so the organic growth<br />

of around 7 percent has been engendered<br />

with no significant workforce expansion.<br />

This trend is the outcome of<br />

both successful shakeup projects (including<br />

at the Zollner location of Fort<br />

Wayne, USA) and a reshuffled product<br />

mix containing a higher proportion of<br />

outsourced items. The sole reasons for<br />

the pronounced increase in personnel<br />

expenses are the addition of the Zollner<br />

and Magneti Marelli pump operations<br />

and the weaker euro versus the U.S.<br />

dollar. As a percentage of sales, these<br />

expenses declined.<br />

As to earnings: At €38.8 million, EBIT<br />

by <strong>Kolbenschmidt</strong> <strong>Pierburg</strong> for the first<br />

nine months of 2000 was virtually the<br />

same as for the first three quarters of<br />

1999 (€39.2 million). EBT for the period<br />

reached € 31.1 million (down from<br />

€3<strong>2.4</strong> million). At €141.6 million, EBDIT<br />

hiked up 15.2 percent or €18.7 million.<br />

Four of the six divisions achieved appreciably<br />

improved results compared<br />

with 1999, thus maintaining the<br />

group’s earnings level.<br />

Despite having to pay for the restructuring<br />

at Zollner, the pistons division<br />

managed to extend its earnings, thanks<br />

mainly to the German and Brazilian<br />

operations. Buoyant business in the<br />

European market meant that earnings<br />

by the plain bearings division topped<br />

the already high year-earlier level.<br />

Aluminum technology as the engine<br />

block division managed to pare quite<br />

appreciably its year-earlier losses<br />

through substantial increases in series-<br />

2<br />

production sales in the course of this<br />

year and is budgeted to break even by<br />

2001. Motor service, the aftermarket division,<br />

more than doubled earnings<br />

over the first three quarters of 1999.<br />

With earnings down to €5.1 million, the<br />

air supply & pumps division failed to<br />

come up to expectations, due to the release<br />

of an accrual providing for € 4.2<br />

million in 1999 and now redundant<br />

and, especially, the phase-out of profitable<br />

products while low-profit products<br />

were ordered in large numbers. Invoice<br />

timing technicalities meant that MotorEngineering<br />

earnings were down.<br />

The soft Euroland currency eroded the<br />

overall earnings when the negative<br />

dollar earnings of the US companies<br />

were translated into euros in <strong>Kolbenschmidt</strong><br />

<strong>Pierburg</strong> accounts. The group<br />

has made the most of its substantial organic<br />

growth in order to fully offset such<br />

profit shrinking factors as cost inflation<br />

and price squeeze. For the first three<br />

quarters of 2000, the return on equity<br />

(ROE) reached 17.3 percent while the return<br />

on total capital employed (ROCE)<br />

amounted to 11.3 percent.<br />

The prospects: The group is confident<br />

as to the rest of the year that, just as the<br />

preceding three quarters, the fourth will<br />

again show a significant improvement<br />

over 1999. As a consequence, 12month<br />

sales by the <strong>Kolbenschmidt</strong> <strong>Pierburg</strong><br />

Group are likely to comfortably exceed<br />

€ 1.7 billion. Earnings in the<br />

fourth quarter are not expected to quite<br />

match the exceptionally high level of<br />

a year ago. Present order schedules<br />

from the OEMs will allow the group to<br />

launch into 2001 with sales again up.<br />

Newsline<br />

Newsline is a summary of the most<br />

important news articles published<br />

in “Das Profil”, the company newspaper<br />

of the Rheinmetall group<br />

Publisher: Rheinmetall <strong>AG</strong><br />

P.O. Box 104261, D-40033 Düsseldorf<br />

Responsible: Dr. Klaus Germann<br />

Editor-in-chief: Rolf D.Schneider<br />

Issue: December 2000/January 2001


Newsline<br />

European Works Council operational<br />

Düsseldorf. Established: the new<br />

European Works Council (EWC) for<br />

Rheinmetall’s companies in EU member<br />

states and Switzerland officially<br />

started work a few weeks ago. The<br />

EWC established during the constituent<br />

meeting held on 15 November<br />

2000 in the Relaxa Hotel at Ratingen<br />

has 13 members from seven countries:<br />

Erik Merks (6th r/chairman of<br />

the EWC – STN Atlas Marine Electronics/Hamburg),<br />

Manfred Solmersitz<br />

(r – STN Atlas Elektronik/Bremen),<br />

Leopold Degyse (2nd r –<br />

SAIT/Zeebrugge), Gerhard Wille (3rd r<br />

– Richard Hirschmann Austria/Rankweil),<br />

Gerhard Grasmeier (4th r – KS<br />

Gleitlager/St. Leon-Roth), Dietrich<br />

Moh (5th r – <strong>Pierburg</strong>/Neuss), Peter<br />

Winter (2nd l – STN Atlas Elektronik/Bremen),<br />

Friedhelm Henzel (4th l<br />

– Heimann Systems/Wiesbaden),<br />

Antonio Reis Vilaca (5th l – Electromecânica<br />

Portogesa/Trofa), Fabrice<br />

Rossi (7th l – Société Mosellane de<br />

Pistons/Thionville), Cor von der Ploeg<br />

(8th l – RadioHolland Marine/ Rotter-<br />

Good marks for<br />

Automotive<br />

Düsseldorf. For the first time, the international<br />

rating agencies Moody’s<br />

and Standard & Poor’s analyzed <strong>Kolbenschmidt</strong><br />

<strong>Pierburg</strong> <strong>AG</strong>, Düsseldorf.<br />

Standard & Poor’s rated <strong>Kolbenschmidt</strong><br />

<strong>Pierburg</strong> with “BBB” for longterm<br />

and “A-2” for short-term liabilities.<br />

Moody’s assessed the company<br />

with “Baa2” for the long-term issuerrating.<br />

These indications are positive<br />

dam) and Michael Ahlmann (3rd l –<br />

STN Atlas Elektronik/Bremen). Ahlmann<br />

stood in for Karl Fuchs (Jagenberg<br />

Maschinenbau/ Neuss) who,<br />

like his Spanish colleague on the<br />

EWC Jose Luis Navarro (Carbureibar/Abadiano)<br />

was unable to<br />

attend owing to other commitments.<br />

Also present at this official photo session<br />

in front of the conference hotel<br />

were Heike Wiemer (7th r – secretariat<br />

of EWC/group works council of<br />

Rheinmetall <strong>AG</strong>/Neuss), Joachim Stöber<br />

(6th l – management IGM metal<br />

workers’ union and responsible<br />

secretary of the European metal workers’<br />

association) and Dieter Niederste-Werbeck<br />

(l), executive board<br />

member and labor relations director<br />

of Rheinmetall <strong>AG</strong>. Niederste-Werbeck<br />

represented the employer during<br />

negotiations concerning the related<br />

group works agreement for the<br />

EWC prior to its establishment. Incidentally,<br />

Merks, Rossi, Vilaca and von<br />

der Ploeg are the members of the<br />

managing committee of the EWC.<br />

and equal to those of the parent company<br />

Rheinmetall <strong>AG</strong>.<br />

As the agencies emphasize, <strong>Kolbenschmidt</strong><br />

<strong>Pierburg</strong>’s credit worthiness<br />

is based on its sound positions in the<br />

global car component industry, its international<br />

clientele and its independence<br />

from single car manufacturers.<br />

The experts describe the know-how in<br />

fabrication as excellent and the range<br />

of products as of superior quality. The<br />

low debt ratio and the high cash-flow<br />

leave sufficient scope for further acquisitions.<br />

The <strong>Kolbenschmidt</strong> Pier-<br />

3<br />

Alliance with<br />

Atlantis Systems<br />

Bremen/Brampton. Rheinmetall<br />

subsidiary STN Atlas Elektronik<br />

GmbH of Bremen, Germany and Atlantis<br />

Systems International Inc. of<br />

Brampton, Canada have formed a<br />

strategic alliance to develop and<br />

distribute Atlantis’ family of tactical<br />

naval training systems. The Bremen-based<br />

company will have sales<br />

and marketing responsibility for the<br />

complete Maritime Tactical Training<br />

product line of Atlantis Systems.<br />

This new transatlantic pact underscores<br />

Rheinmetall DeTec <strong>AG</strong>’s desire<br />

to expand and intensify its successful<br />

role in the North American<br />

market, where the company is eager<br />

to expand its market share.<br />

As Ulrich Grillo, chairman of the<br />

board of management of STN Atlas<br />

Elektronik GmbH, points out: “The<br />

combination is ideal: Atlantis offers<br />

excellent technology that’s been<br />

tried and tested by navies worldwide,<br />

while STN Atlas Elektronik has<br />

decades of experience in developing<br />

highly advanced sensors, systems<br />

and simulators for naval applications.<br />

This alliance definitely<br />

puts us in a position to play a decisive<br />

future role in the growing market<br />

for naval training and instruction systems.”<br />

Under the terms of the alliance,<br />

STN Atlas Elektronik has sole responsibility<br />

for the sale and marketing<br />

of new systems, while the tasks<br />

of R&D and services will be divided<br />

between the companies. From the<br />

standpoint of existing customers,<br />

the alliance will have no bearing on<br />

contractually agreed service and<br />

warranty agreements.<br />

burg group is well prepared for risks<br />

resulting from possible cyclical fluctuations<br />

in car production and from<br />

increasing competition by high innovation<br />

capacity and its prudent financial<br />

management.<br />

According to Standard & Poor’s the<br />

net income should go up on medium<br />

term, as the profitability of a pump<br />

production plant acquired from Magneti<br />

Marelli earlier this year in Italy<br />

will improve and as the development<br />

in the aluminum technology division<br />

turns out to be satisfying.


EXCHANGING INFORMATION: Michael Deaver (l),<br />

deputy chief-of-staff in the White House under President Ronald<br />

Reagan (1981–1989) and now vice chairman of Edelmann<br />

Public Relations Worldwide, talking to Dipl.-Math.<br />

Klaus Eberhardt, chairman of the executive board of Rheinmetall<br />

<strong>AG</strong>. Besides talking about the presidential elections in<br />

the USA (the outcome of which was still not known at the time<br />

of Deaver’s visit), the two used the opportunity to discuss the<br />

possible impact of the election on politics and the economy<br />

in the United States of America and the transatlantic relationship.<br />

Eberhardt once again emphasized that the American<br />

market is a key market for products and systems of the<br />

Rheinmetall group and that even higher investments are<br />

planned for this region in future. Incidentally: Deaver already<br />

visited Rheinmetall as a guest speaker on the occasion of the<br />

Rheinmetall management conference in January.<br />

Changes to the<br />

management<br />

Walter R. Kaiser (54), until now management<br />

board chairman of Hirschmann<br />

Electronics GmbH & Co. KG, Neckartenzlingen,<br />

has resigned from the company<br />

as of November 30, 2000.<br />

Appointed to succeed him is Reinhard<br />

Sitzmann (52), who took on the<br />

position as of December 1, 2000. At the<br />

same time, Sitzmann has been appointed<br />

senior executive officer of<br />

Aditron <strong>AG</strong>, Düsseldorf, the parent<br />

company of Rheinmetall’s Electronics<br />

sector of which Hirschmann Electronics<br />

is a member. Sitzmann has been<br />

management board chairman of PAT<br />

GmbH, Ettlingen, a world leader in construction<br />

machinery electronics since<br />

1998.<br />

As successor to Sitzmann at PAT,<br />

Laurence Burns (49) has been appointed<br />

management board chairman.<br />

Burns has been with the company since<br />

the start of 1999.<br />

Newsline<br />

Ernst Odermatt, 52, has been appointed<br />

by the supervisory board of<br />

Rheinmetall DeTec <strong>AG</strong> to the post of<br />

deputy member of the corporation’s<br />

board of management, effective 1 January<br />

2001. Odermatt, who joined<br />

the Oerlikon Bührle group in 1978,<br />

has, as head of the Oerlikon group,<br />

been a member of Rheinmetall De-<br />

Tec <strong>AG</strong> senior management ever since<br />

the takeover of Oerlikon Contraves<br />

by Rheinmetall on 21 December<br />

1999. On the Rheinmetall DeTec <strong>AG</strong><br />

board, Odermatt will have operational<br />

responsibility for Oerlikon Contraves,<br />

the world’s leading supplier of<br />

air defence systems.<br />

As of 1 January 2001, the board of<br />

management of Rheinmetall DeTec<br />

<strong>AG</strong> will consist of Ernst-Otto Krämer<br />

as chairman; Ulrich Grillo, deputy<br />

chairman with responsibility for financial<br />

operations and controlling<br />

as well as chairman of the board of<br />

management of STN Atlas Elektronik<br />

GmbH; Mario Gabrielli, director of<br />

human resources and operations;<br />

4<br />

LARGE ORDER: Heimann Systems GmbH will equip<br />

Düsseldorf airport with fully automatic baggage inspection<br />

systems for 100% inspection of checked-in baggage by mid<br />

2001. Düsseldorf is the first airport worldwide to use a complete<br />

multilevel system from the product range of Heimann<br />

Systems and to comply with the safety requirements of the<br />

international aviation authorities: Starting 2003 all checked<br />

in baggage has to be subjected to a hundred percent<br />

inspection. For a total of € 7.2 million five systems of the first<br />

inspection level and four systems of the second level are<br />

smoothly being integrated into the existing baggage conveying<br />

system. “The new requirements of the international aviation<br />

authorities provide an important contribution to increase<br />

flight safety. Already today we provide the technology necessary<br />

for realization”, says Hans A. Linkenbach, president<br />

of Heimann Systems. Photo: Flughafen Düsseldorf GmbH<br />

Ernst Odermatt of Oerlikon Contraves<br />

<strong>AG</strong>; Detlef Moog of Rheinmetall Waffe<br />

und Munition GmbH; and Gert Winkler<br />

of Rheinmetall Landsysteme<br />

GmbH.<br />

Michael Heinzemann has been appointed<br />

deputy member of the management<br />

board of STN Atlas Elektronik<br />

GmbH (Bremen) with effect from 20<br />

September 2000. The 44 year-old industrial<br />

engineer has taken over from<br />

Gert Winkler who had joined the management<br />

board of the company in<br />

Bremen on an interim basis. Winkler<br />

has taken over as chairman of the management<br />

board of Rheinmetall Landsysteme<br />

GmbH, Kiel, a company which<br />

was founded recently. Winkler is also a<br />

member of the executive board of<br />

Rheinmetall DeTec <strong>AG</strong>.<br />

Heinzemann who was a member of<br />

the management board of Henschel<br />

Wehrtechnik GmbH (Kassel) will be<br />

responsible for the land and airborne<br />

systems and the simulation systems<br />

divisions at STN Atlas Elektronik<br />

GmbH.


Newsline<br />

From 2001 onwards: International Accounting Standards at Rheinmetall<br />

Group accounts according to IAS<br />

Düsseldorf. In October 2000, the executive<br />

board of Rheinmetall <strong>AG</strong> decided<br />

that International Accounting Standards<br />

(IAS) should be introduced for the financial<br />

statements of<br />

Rheinmetall <strong>AG</strong><br />

and its companies<br />

from the year<br />

2001 onwards. So<br />

far, the group’s<br />

accounts have been<br />

prepared in<br />

compliance with<br />

the German com-<br />

mercial code<br />

(HGB). The IAS are<br />

internationally accepted accounting<br />

procedures already used by many DAXlisted<br />

companies (for instance Bayer,<br />

Henkel, Lufthansa and RWE); numerous<br />

other corporations like Volkswagen <strong>AG</strong><br />

are in the process of converting to IAS.<br />

The International Accounting Stan-<br />

dards warrant transparent<br />

accounts that<br />

allow international<br />

comparison. Contrary<br />

to the HGB procedures<br />

which are<br />

still in use – that have<br />

a strong focus on<br />

protecting the rights<br />

of creditors (with an<br />

emphasis on the<br />

principle of caution)<br />

and are influenced<br />

by tax regulations –<br />

the IAS give special<br />

attention to the information<br />

made available<br />

to investors. The<br />

main objective is to<br />

give a true and fair<br />

Dr. Ulrich Hauck<br />

view of the financial position, financial<br />

performance and cash flows. Rheinmetall’s<br />

decision to introduce the IAS is<br />

therefore in line with the expectations of<br />

the banks and capital markets. In addition,<br />

interim financial reports of the Rheinmetall<br />

group will have a much higher informative<br />

content after the introduction<br />

of IAS, a fact that is particularly important<br />

for the presentation of Rheinmetall <strong>AG</strong><br />

on international markets.<br />

The conversion to new accounting<br />

standards affects not only external accounting<br />

issues but also internal reporting<br />

procedures, and this will apply on<br />

all group levels. Since, for legal reaso-<br />

ns, the subsidiaries will still be required<br />

to prepare their annual financial statements<br />

in compliance with the German<br />

commercial code in future, these will be<br />

prepared in form of a so-called HBII once<br />

the conversion to IAS has taken place.<br />

The consolidated financial statements<br />

of the divisions, sub-groups and<br />

group will only contain the IAS statements<br />

(HBII) of the Rheinmetall companies.<br />

The last consolidated statements<br />

conforming to the German commercial<br />

code will therefore be prepared for the<br />

year ending December 31, 2000.<br />

The conversion to IAS is being accompanied<br />

by an ambitious schedule that<br />

will make particular demands on the<br />

accounting staff throughout the group.<br />

The first statement in compliance with<br />

IAS to be prepared for the year ending<br />

December 31, 2001 will require the availability<br />

of like-for-like figures for the previous<br />

year. This therefore means that –<br />

Actions 2000/2001 Sept. Oct. Nov. Dec. Jan. Feb. March April May June July Aug. Sept. Oct. Nov. Dec.<br />

Preparation and presentation<br />

of conversion concept<br />

Project work<br />

(Project teams and<br />

steering committee)<br />

Reporting forms and<br />

accounting guidelines<br />

Training<br />

Preparation of<br />

financial statements<br />

as at 31.12.2000<br />

Review of financial<br />

statements at companies<br />

Business planning<br />

acc. to IAS<br />

once the annual financial statements in<br />

accordance with the German commercial<br />

code have been completed as at December<br />

31, 2000 – a parallel consolidated<br />

statement complying with IAS will likewise<br />

be necessary for the same period.<br />

Consequently, the members of the<br />

Rheinmetall group will also be required<br />

to transform their financial statements<br />

for 2000 in a format meeting the requirements<br />

of International Accounting<br />

Standards.<br />

Preparations for the conversion are<br />

under way. In October 2000, eight project<br />

groups under the leadership of the<br />

corporate accounting organization of<br />

5<br />

Rheinmetall <strong>AG</strong> (Dr. Ulrich Hauck, Karin<br />

Crombach) – working in close collaboration<br />

with the group’s auditors PwC Deutsche<br />

Revision (Düsseldorf) – started to<br />

prepare the new IAS accounting procedures<br />

including the related reporting<br />

packages. Significant decisions concerning<br />

the accounting and valuation regulations<br />

in accordance with the IAS are<br />

due to be reached by the steering committee<br />

(consisting of the financial management<br />

of Rheinmetall <strong>AG</strong> and its subgroups)<br />

by the end of the year. Certain<br />

modifications of the existing data processing<br />

systems will be necessary in order<br />

to implement the IAS.<br />

The success of the conversion process<br />

will depend very largely on the<br />

commitment of the staff responsible for<br />

accounting at Rheinmetall. They will<br />

now be given the chance to have an active<br />

part in the fundamental renewal<br />

and modernization of accounting prac-<br />

Holding<br />

Groups<br />

Individual companies<br />

The conversion of accounts to International Accounting Standards (IAS) is<br />

based on an ambitious schedule which will make utmost demands on the<br />

accounting personnel throughout the Rheinmetall group.<br />

tices. It will also be<br />

important to give<br />

personnel working in<br />

accounting and controlling<br />

departments<br />

the necessary training.<br />

Once the annual<br />

financial statements<br />

have been<br />

prepared for the fiscal<br />

2000, these persons<br />

will all participate<br />

in a comprehensive<br />

training program<br />

that is due to<br />

be launched in the<br />

second half of March<br />

2001, initially with<br />

the involvement of<br />

personnel belonging<br />

to the accounting departments of the<br />

Rheinmetall companies (the milestones<br />

for the project are shown in the diagram<br />

on this page).<br />

Contacts for the IAS project are firstly<br />

the above-mentioned project team at<br />

Rheinmetall <strong>AG</strong> (Hauck/Crombach);<br />

competent experts in the groups are Ulrike<br />

Renner (responsible for Automotive<br />

sector), Roland Müsse (Electronics) and<br />

Sven Gronemeyer (Defence). Responsable<br />

at Jagenberg <strong>AG</strong> is Rolf Jensen.<br />

Dr. Ulrich Hauck*<br />

*Dr. Ulrich Hauck (36) is accounting manager at<br />

Rheinmetall <strong>AG</strong> and, in this capacity, is responsible<br />

for the group-wide conversion of accounting<br />

principles IAS.


Pu bl i cbid to ta ke<br />

over Jage n b e rg<br />

D ü ss e ld o rf / N e uss . On De ce m b e r<br />

14, 2000, the officia l term for acce pt<br />

i ng the vol un ta ry pu bl i c bid announced<br />

by R h e i n m e ta l <strong>AG</strong> to ta ke over all<br />

p re fe r red sto ck o u t sta n d i ng of J a ge nb<br />

e rg <strong>AG</strong> (ISIN DE 000 621 2038) co mm<br />

e n ced. Rheinmeta ll <strong>AG</strong> is o f fe r i ng €<br />

2 .30 for ea ch sha re of J a ge n b e rg prefe<br />

r red sto ck, hence aro und 65%<br />

a b ove the cl osi ng price quoted on the<br />

day p re ce d i ng the pu bl i cbid announ-<br />

N e wsl i n e<br />

ce m e n t. The period for acce p t i ng this<br />

bid for Jage n b e rg pre fe r red sto ck will<br />

ex p i re at the cl ose of J a n u a ry 2 2 ,<br />

2 0 0 1 .<br />

A t p resent, Rheinmeta ll ow ns 8 6 %<br />

o f J a ge n b e rg <strong>AG</strong>’s n o nl isted co m m o n ,<br />

and 3% of the pre fe r red, sto ck. The cap<br />

i ta lsto ck is d i vided into 20, 0 0 0, 0 0 0<br />

no-par shares, viz. 12,000,000 of<br />

common and 8,000,000 of n o nvo t i ng<br />

preferred stock. Rheinmetall consid<br />

e rs i t sbid a to ken of i t s pa rt i cular resp<br />

o nsi bil i t y to the pre fe r red sto ckh old<br />

e rs o fJ a ge n b e rg <strong>AG</strong> and, by payi ng a<br />

share price well above the pre-an-<br />

“On fast lane” wi t h<br />

i n teg ra ted ante n nas<br />

N e cka rte nzl i nge n . Richard Hirschmann<br />

GmbH & Co. (Necka rte nzl i nge n )<br />

has booked orders from Daimler-<br />

C h rysle r, Audi and V Wfor the deve l o pm<br />

e n tand production of i n teg ra ted ante<br />

n na systems. T h ese syste m s a re intended<br />

for seven diffe re n tve h i cle typ<br />

es, incl u d i ng the su ccessor model to<br />

the pres e n tE- class o f Me rce d es Be nz ,<br />

the new Audi A4 and the so-called<br />

“ Super” Passa to fV W. The ord e rs ha ve<br />

6<br />

n o un ce m e n tcl osi ng price, is o f fe r i ng<br />

them the opp o rtun i t yto wi t h d raw fro m<br />

J a ge n b e rg <strong>AG</strong>, whose exe cu t i ve boa rd<br />

has welcomed Rheinmetall’s voluntary<br />

public takeover bid and recomm<br />

e n ds i t s sto ckh old e rs to acce p ti t.<br />

R h e i n m e ta ll st ill i n te n ds to divest<br />

J a ge n b e rg, pre fe re n ce being given to<br />

a solution where Jage n b e rg as a<br />

w h ole is s old to a prosp e c t i ve investo<br />

r. Rheinmeta ll has d e cided in<br />

fa vor of a vol un ta ry ta ke over bid si n ce<br />

p rosp e c t i ve investo rs will ma i nl y b e<br />

i n te rested in acq u i r i ng all o f J a ge nb<br />

e rg <strong>AG</strong>’s sto ck .<br />

New co n t ra c t– inspection ca pa ci t yd o u ble d<br />

Eu ro tun n e lo p ts for HCV s yste m s<br />

Fol ksto n e / Wi esbaden. H e i mann Systems,<br />

the wo r ld ’ slead i ng ma n u fa c turer<br />

and su pplier of X- ray i nspection systems,<br />

has b o o ked a fu rther order fro m<br />

Eu ro tun n e l pl c. (Grea t B r i tain). In placi<br />

ng this o rd e r, the British opera tor of<br />

Eu ro tun n e ll o ca ted at Fol kstone in Ke n t<br />

a i m s to increase the ca rgo insp e c t i o n<br />

ca pa ci t yin order to secu re globa lca rgo<br />

t ra f f i ct h rough the Cha n n e lTun n e l. T h e<br />

co n t ra c tco m p r is es the delive ry and insta<br />

llation of a new sta t i o na ry X- ray i nspection<br />

equipment as we ll as t h e<br />

m o d e r n i zation of the exist i ng Eu rosca n<br />

s ystem. Both syste m s a re pa rt o f H e imann<br />

Systems’ Heimann Ca rgo Visi o n<br />

(HCV) ra nge of p roducts, deve l o p e d<br />

sp e ci f i ca ll yfor X- ray s e cu r i t yi nsp e c t i o n<br />

o fl oaded trucks and co n ta i n e rs .<br />

These inspection systems produce<br />

rad i oscopic, high-definition ima ges o f<br />

ve h i cles and loaded go o ds, which are<br />

then ana l y zed by t rained secu r i t yp e rs<br />

o n n e l. As a result, illega lor da nge ro us<br />

go o ds and su bsta n ces su ch as ex pl osives,<br />

even hidden in a sea led co m pa rtm<br />

e n tor in the drive r ’ sca bin, can be dete<br />

c ted as i f the frame of the truck we re<br />

transparent. An inspection doe s not<br />

ta ke more than 10 minutes a t the most<br />

and avo i ds ma n u a ls ea rch of ve h i cles .<br />

T h is new co n t ra c t re f le c t s the co mm<br />

e rcia l su ccess o f the inspection syste<br />

m s for the Eu ro tunnel, with a cu rre<br />

n t f l ow of 4,000 to 5,000 trucks<br />

e ve ry day. It is a lso the resul to f a su ccess<br />

ful co o p e ration between Eu ro tunn<br />

e l and Heimann Syste m s a ro und the<br />

co n ception of a tu r n ke y i nsta lla t i o n ,<br />

p e rfe c t l y su i ted to the sp e ci f i cte ch n ica<br />

ln e e ds o f the custo m e r.<br />

The new Heimann Ca rgo Vision stat<br />

i o na ry e q u i p m e n twill o f fer the most<br />

re ce n t te ch n ol o g i ca l fea tu res d e veloped<br />

by the co m pa ny, for insta n ce an<br />

i n creased inspection ca pa ci t y o f 3 0<br />

ve h i cles per hour.<br />

The modernization of the cu r re n tEuroscan<br />

system, in operation si n ce<br />

1993, will i n clude new visu a l i za t i o n<br />

and ima ge pro cessi ng fea tu res a n d<br />

will a ll ow for a si g n i f i ca n t e n ha n cem<br />

e n to f va r i o us co m p o n e n t so f the system,<br />

e.g. co nve yi ng of ve h i cles, qualit<br />

y and pre cision of X- ray i ma g i ng.<br />

T h ese HCV s ystems, which will b e<br />

o p e ra t i o na la t the British entra n ce of<br />

the Cha n n e l Tunnel, will d o u ble the<br />

cu r re n t i nspection ca pa ci t y. Fu rt h e rm<br />

o re, both syste m s will be opera t i ona<br />

l on a 24 hour basis. De l i ve ry o ft h e<br />

new system is sch e d uled for ea r l y<br />

2 0 02, and the upg rade of the cu r re n t<br />

Eu roscan system will be co m ple ted by<br />

the end of 2 0 02. The pro je c t will b e<br />

ha n d led in su ch a way t ha t ca rgo inspection<br />

fa cil i t i es a t Eu ro tun n e l will b e<br />

o p e ra t i o na land effici e n ta ta ll t i m es .<br />

Eq u i p m e n t f rom the Wi esbad e n -<br />

based sp e cia l ist is a l read y in servi ce at<br />

n u m e ro us ke y co m m e rcia lt ra f f i cp o i n t s<br />

in Eu rope and wo r ld wide. 13 insp e c t i o n<br />

s yste m s ha ve been ta ken into operation<br />

at va r i o us s ea p o rts, airport s a n d<br />

b o rder loca t i o ns si n ce 1991. The la test<br />

i nsta lla t i o ns a re loca ted at the Va a l imaa<br />

border crossi ng (Finland), at t h e<br />

Po rt o fTe ma in Gha na, Ro t te rdam in the<br />

N e t h e r la n ds, Su ba raya and Jaka rta in<br />

I n d o n esia. T h is yea r, Heimann Syste m s<br />

has been awa rded new co n t ra c t swi t h<br />

the Mexi can, Japa n ese and Britis h<br />

Customs. By the end of 2001, Heima n n<br />

Syste m s will ha ve delive red more tha n<br />

21 syste m so f the HCV fa m il yso tha tt h e<br />

co m pa ny is n ow the leader in the co ntainer<br />

inspection system ma r ke t.<br />

an ove ra l value of a pp rox. 15 mill i o n<br />

per yea r. The diffe re n tm o d e ls will b e<br />

produced over a period of several<br />

yea rs.<br />

The possi ble us es o f i n teg ra ted ante<br />

n na syste m sra nge from the re ce p t ion<br />

of radio and TV b road cast s to mobile<br />

radio co m m un i ca t i o ns and sa te ll<br />

i te na vi gation through to co n t rol o f<br />

the ce n t ra ll o cki ng or sta n d by h ea t i ng<br />

system. Currently, only two compan<br />

i es in the wo r ld ha ve the te ch n i ca l<br />

k n ow - h ow for su ch ante n na syste m s :<br />

the Delphi su bsi d ia ry Fu ba (Bad S a l zd<br />

e t fu rth) and Hirsch ma n n .


Newsline<br />

Avior laser projection system from STN Atlas Elektronik GmbH<br />

High quality in visual projection<br />

Orlando/Bremen. World premiere:<br />

at the end of November 2000, STN Atlas<br />

Elektronik GmbH (Bremen) gave<br />

its first presentation of the new laser<br />

projection system Avior to the international<br />

public at the I/ITSEC in Orlando,<br />

Florida. The excellent response to the<br />

system is reflected by positive sales<br />

figures. Avior is distinguished by unlimited<br />

focus depth, a high variety in<br />

colors and brightness, absolute color<br />

stability and constant color convergence.<br />

With Lufthansa and the German<br />

Air Force, the reference list already<br />

includes two prominent customers<br />

from the civil and military sectors.<br />

Being influenced<br />

by our visual perceptions<br />

and impressions,<br />

we need optical<br />

information. On closer<br />

consideration,<br />

we find that modern<br />

visual systems have<br />

become an indispensable<br />

means of<br />

realistically reproducing<br />

our environment<br />

– particularly<br />

when it comes to<br />

meeting the increasingly<br />

stringent flight<br />

training requirements<br />

in the field of<br />

flight simulation.<br />

With its new and<br />

powerful Avior laser<br />

projection system,<br />

STN Atlas Elektronik<br />

GmbH can now offer<br />

unrivaled qualities in visual projection:<br />

unlimited focus depth, a high variety<br />

in colors and brightness, absolute<br />

color stability and constant color<br />

convergence. By virtue of this new<br />

technology, simulators can now be<br />

provided with visual systems by far superior<br />

to any projection systems available<br />

in the past, with a degree of realism<br />

that is absolutely unique.<br />

The electronics specialist from Bremen<br />

has already booked its first orders<br />

from customers planning to use<br />

Avior for flight simulation. Lufthansa<br />

Flight Training GmbH will use the new<br />

laser projection system to upgrade its<br />

existing flight training simulators. As<br />

part of the so-called daylight cockpit,<br />

simulator projection is to be improved<br />

to suit the training requirements for<br />

highly qualified flight crews. Avior is<br />

capable of artificially creating daylight<br />

conditions, something that was not<br />

possible in the past. In addition, calligraphic<br />

lights (for example, runway<br />

lights) can be projected with a quality<br />

that is astonishingly good. The development<br />

of the daylight cockpit has<br />

been promoted by the senate of the city<br />

of Bremen.<br />

Another customer due to receive Avior<br />

for flight simulation purposes is the<br />

German Air Force which intends to<br />

equip eight new full-mission simulators<br />

for Tornado combat aircraft with<br />

Flight simulation: a dome with laser projection heads and four target display<br />

projectors gives an extremely realistic visual impression. This, in turn, helps to<br />

ensure that highly qualified flight crews – like those flying the Tornado combat<br />

aircraft of the German Air Force – will be given the best possible training.<br />

the new laser projection technology.<br />

The German contracting authorities<br />

BWB in Koblenz have chosen STN Atlas<br />

Elektronik together with CAE Elektronik<br />

GmbH (Stolberg) to deliver the<br />

simulators for the Air Force.<br />

The simulators with a dome projection<br />

system (300°x120° field-of-view)<br />

will each incorporate a 13-channel laser<br />

display system of the type Avior.<br />

As a digital system, the fail-safety of<br />

Avior is excellent so that maintenance<br />

requirements are minimal.<br />

One of the many advantages will be<br />

particularly useful for the Tornado simulator:<br />

the system is fairly compact<br />

(the projection head weighing about<br />

eight kilograms) with small installati-<br />

7<br />

on dimensions due to the separation<br />

of projection head and laser source.<br />

Thanks to this, it is possible to build<br />

much lighter and more compact Full<br />

Flight Simulators (FFS) with e.g. an electrical<br />

motion system, in other<br />

words, without a hydraulic compartment.<br />

The first simulator for the Tornado<br />

to be equipped with the Avior technology<br />

will be installed in Holloman,<br />

USA.<br />

Thanks to numerous hitherto unequalled<br />

qualities, Avior will be approved<br />

for so-called D-level simulators;<br />

these are certified and approved flight<br />

simulators meeting the requirements<br />

of the Joint Aviation<br />

Authorities (JAA) and<br />

Federal Aviation Authority<br />

(FAA).<br />

Avior will also resolve<br />

one of the problems<br />

often encountered<br />

with simulators:<br />

the weight of<br />

the projectors. Professional<br />

projectors<br />

– being the bigger<br />

variant of the video<br />

beamers increasingly<br />

replacing conventional<br />

televisions<br />

in many households<br />

– capable of producing<br />

images of up to<br />

several square meters<br />

in size, are very<br />

heavy and therefore<br />

difficult to integrate<br />

in simulators mounted<br />

on a motion system. With Avior,<br />

only the very light projection head has<br />

to be integrated in the actual simulator.<br />

The laser source can be located<br />

outside the simulator. Moving images<br />

are transmitted by fiber-glass cable.<br />

Moreover, it will be possible to operate<br />

several projection heads from only<br />

one laser source in future.<br />

STN Atlas Elektronik is using the<br />

new system for flight simulation purposes.<br />

The mentioned advantages<br />

over conventional systems are particularly<br />

beneficial for Full Flight Simulators<br />

where the excellent center-ofgravity<br />

improvement (due to the low<br />

weight) will allow far lighter and more<br />

compact FFS with electrical motion<br />

systems.


Newsline<br />

Mine clearance vehicle at the border between North and South Korea<br />

Rhino performs a historic mission<br />

Hamburg/Paju/Kiel. On 26 September<br />

2000 a Rhino mine clearance system<br />

from Rheinmetall Landsysteme<br />

GmbH (MaK/Kiel) and a Minebreaker<br />

2000 from Flensburger Fahrzeugbau<br />

Gesellschaft mbH were loaded onto an<br />

Antonov at Hamburg airport, from<br />

where they were flown to Korea. The<br />

Republic of Korea had purchased both<br />

of these vehicles at short notice for mine<br />

clearance operations to be carried<br />

Being used on the border between<br />

North and South Korea: the Rhino mine<br />

clearance vehicle from Rheinmetall.<br />

DMI cooperates<br />

with STN Atlas<br />

Bremen/Lyngby. The Danish Maritime<br />

Institute (DMI) based in Lyngby<br />

(Denmark) and STN Atlas Elektronik<br />

GmbH (Bremen) will jointly market<br />

their extensive range of advanced<br />

products in future. The joint portfolio<br />

ranges from low-end computer based<br />

training (CBT) to high-end full mission<br />

simulators in the areas of both bridge<br />

and engine room simulation as well<br />

as the associated courseware. Major<br />

benefits for the customers are firstclass<br />

integrated training concepts,<br />

combined with the necessary nautical<br />

competence, and a flexible and<br />

strong sales network.<br />

In September 2000, the Danish Maritime<br />

Institute (DMI) and STN Atlas<br />

Elektronik GmbH officially signed a<br />

cooperation agreement with the aim<br />

out in the border region between<br />

North and South Korea. The Russian<br />

Antonov aircraft flew the two vehicles<br />

weighing a total of more than one hundred<br />

tons via Kiev to Seoul from where<br />

they were then transported on a flatbed<br />

trailer 40 km northward to the border<br />

town of Paju.<br />

Before traffic connections between<br />

the North and South can be restored to<br />

normal conditions, an area of 660,000<br />

square meters with a suspected<br />

100,000 mines will have to be demined.<br />

In the light of the rapprochement<br />

between these two Korean states, it is<br />

planned to complete a four-lane highway<br />

and restore the interrupted railway<br />

link between the two countries. The<br />

Korean government has set up an ambitious<br />

schedule for these two projects,<br />

namely to have the work on the<br />

highway and railway tracks completed<br />

by September next year.<br />

Yet before construction work can actually<br />

get started, the entire region will<br />

have to be cleared of mines. The Korean<br />

army has assigned more than 2,800<br />

soldiers from eight different battalions<br />

to this task and has complemented existing<br />

equipment with modern tools<br />

and machines purchased from abroad.<br />

The Minebreaker 2000 and Rhino –<br />

of a close partnership<br />

in the<br />

field of nautical<br />

simulation. The<br />

agreement was<br />

signed by Arne<br />

Hasle Nielsen,<br />

managing director<br />

of DMI<br />

and Ulrich Sasse,<br />

general manager<br />

of the<br />

STN Atlas simulation<br />

systems<br />

division. The<br />

agreement is the result of a strategic<br />

investigation undertaken jointly by<br />

the two organizations during the last<br />

months.<br />

DMI is an internationally recognized<br />

developer and supplier of advanced<br />

maritime training and education systems.<br />

In addition, the DMI provides<br />

PC-based ship handling simulators as<br />

8<br />

both of which have demonstrated<br />

their outstanding capabilities in the<br />

course of various international demining<br />

operations were literally purchased<br />

“on-the-spot”. The tight schedule<br />

of the Koreans did not leave scope for<br />

the normal purchasing routine where<br />

production is generally not started before<br />

the order is in hand. Consequently,<br />

the Korean’s prime focus was on<br />

proven mine clearance systems meeting<br />

stringent safety requirements,<br />

and on the immediate availability of<br />

the equipment. Both of the systems<br />

fulfilled these requirements.<br />

Specialists from the two manufacturers<br />

have accompanied the two vehicles<br />

to Korea in order to give Korean<br />

personnel a thorough and quick in-situ<br />

familiarization with the systems.<br />

The companies from Kiel and Flensburg<br />

will also be providing the technical<br />

service for the equipment in order<br />

to repair any damage resulting from<br />

wear and tear without loss of time.<br />

Korean authorities have pointed out<br />

that a mine clearing operation of this<br />

magnitude in such a short time is quite<br />

unique, particularly as the density of<br />

mines in the border region between<br />

North and South Korea is far greater<br />

than, for instance, in Bosnia or Kroatia.<br />

Cooperating: Arne Hasle Nielsen (r) and Ulrich Sasse<br />

well as part-task ship bridge simulators<br />

and training courseware dedicated<br />

to nautical applications including<br />

state-of-the-art mathematical models.<br />

STN Atlas Elektronik is one of<br />

the leading training system suppliers<br />

including simulators and training<br />

equipment for nautical and naval training<br />

purposes.


Newsline<br />

Rheinmetall Landsysteme GmbH founded<br />

Concentrating forces<br />

for armored vehicles<br />

Ratingen. Pointing the way forward,<br />

Rheinmetall DeTec <strong>AG</strong> of Ratingen has<br />

taken a further step in consolidating<br />

Germany’s armored vehicle industry.<br />

Effective 1 January 2000, Rheinmetall<br />

DeTec has consolidated its hitherto separately<br />

operating subsidiaries Henschel<br />

Wehrtechnik of Kassel, KUKA<br />

Wehrtechnik GmbH of Augsburg and<br />

The wheel-mounted armored vehicle<br />

Luchs, also used by the German SFOR<br />

troops in Bosnia, is the well-known<br />

product of Henschel which is now part<br />

of Rheinmetall Landsysteme GmbH.<br />

MaK System Gesellschaft mbH of Kiel<br />

into a single corporation, Rheinmetall<br />

Landsysteme GmbH. The move brings<br />

together the expertise and long-standing<br />

experience of these companies. A<br />

leading supplier of ground forces<br />

equipment, Rheinmetall DeTec has a<br />

workforce of nearly 10,000 and annual<br />

sales of approximately € 1.6 billion.<br />

With about 1,400<br />

employees, RheinmetallLandsysteme<br />

GmbH is a<br />

world-class supplier<br />

of highly advanced<br />

wheeled<br />

and tracked armored<br />

vehicle systems.<br />

Gert Winkler<br />

has been appointed<br />

chairman<br />

of the board of management,<br />

and will<br />

also have special<br />

responsibility for<br />

engineering. Also<br />

appointed to the<br />

board are Klaus<br />

Sander, sales, and<br />

Dr. Peter Merten,<br />

finance and controlling.<br />

Rheinmetall DeTec <strong>AG</strong> is thus systematically<br />

pursuing its strategy of adjusting<br />

to the changing requirements of<br />

the market. As early as 1990, the company<br />

embarked on a policy of active<br />

portfolio management, the first German<br />

defence contractor to do so. As a result,<br />

Rheinmetall DeTec is capable today of<br />

producing highly competitive products,<br />

even under difficult market conditions.<br />

Thanks to this assertive strategy, Rheinmetall<br />

DeTec has developed into a viable<br />

single-source supplier of weapons<br />

and ammunition, wheeled and tracked<br />

armored vehicles, and vetronics (vehicle<br />

electronics). On this basis, the<br />

company has emerged as one of Europe’s<br />

leading suppliers of high-tech ground<br />

forces equipment.<br />

The companies Henschel and KUKA<br />

were both acquired at the end of 1999.<br />

These new assets, along with MaK System<br />

Gesellschaft, significantly widened<br />

the array of vehicle systems offered<br />

by Rheinmetall DeTec. Now that these<br />

companies have been combined to<br />

form Rheinmetall Landsysteme GmbH,<br />

further synergy effects are expected.<br />

The newly launched company is<br />

squarely oriented to the needs of the<br />

customer. The location concept has<br />

been devised to make optimum use of<br />

During a visit to Henschel in Kassel, the German Minister of Defence Rudolf<br />

Scharping (r) and the chairman of the executive board of Rheinmetall DeTec <strong>AG</strong>,<br />

Dr. Ernst-Otto Krämer, unveiled a panel displaying the name of the recently<br />

launched Rheinmetall Landsysteme GmbH.<br />

9<br />

The air-transportable, amored vehicle<br />

Wiesel 1 built by MaK System Gesellschaft<br />

mbH (now part of Rheinmetall<br />

Landsysteme GmbH) can be used as a<br />

crew transport, reconnaissance and<br />

ambulance vehicle.<br />

resources, while simultaneously maintaining<br />

existing knowledge and expertise.<br />

To this end, administration and<br />

sales have been centralized in Kiel,<br />

while the production and maintenance<br />

units have been consolidated at the<br />

Kassel and Unterlüß locations.<br />

In order to safeguard Rheinmetall<br />

Landsysteme’s technological edge, development<br />

and engineering of the<br />

company’s high-tech products will take<br />

place at the following locations, each<br />

with a specifically defined mission:<br />

★ Kiel: Combat support systems, demining<br />

equipment and tracked vehicle<br />

technology<br />

★ Kassel: Command and reconnaissance<br />

systems and wheeled vehicle<br />

technology<br />

★ Unterlüß/Augsburg: Weapon platform<br />

systems, especially automatic<br />

cannon turrets (as well as ammunition<br />

flow components in Augsburg).<br />

The new company’s<br />

sales, R&D,<br />

production and<br />

administrative<br />

operations are currently<br />

being reorganized<br />

in accordance<br />

with a stringent<br />

timetable.<br />

Successful implementation<br />

of these<br />

restructuring measures,<br />

combined<br />

with greater concentration<br />

on core<br />

competencies, will<br />

ensure that Rheinmetall<br />

continues<br />

to be a leading<br />

supplier of systems<br />

and equipment<br />

both at home<br />

and abroad.


Major order<br />

from Mexico<br />

Paris/Wiesbaden. Heimann Systems,<br />

the world’s leading manufacturer<br />

and supplier of X-ray security<br />

inspection systems, has been<br />

awarded a major order by the Mexican<br />

customs (Administracion General<br />

de Aduanas de Mexico) The<br />

order worth more than 3.7 million<br />

US dollars comprises the delivery<br />

of an innovative HCV-Mobile<br />

equipment to be used by the Mexican<br />

customs to fight against contraband<br />

and traffic of illegal substances.<br />

Heimann Systems is the<br />

first company to equip the Mexican<br />

customs with a cargo inspection<br />

system for manifest verification.<br />

In an effort to modernize their<br />

entire operations, the Mexican customs<br />

had undertaken a comprehensive<br />

review of all potential suppliers<br />

of mobile security inspection<br />

equipment. They have selected<br />

Heimann Systems’ HCV-Mobile because<br />

of the technological advancement<br />

of this equipment.<br />

The HCV-Mobile system, which<br />

will be put into service by the end<br />

of this year, will be operated by fully-trained<br />

Mexican customs staff. It<br />

will be operated at the port of Veracruz<br />

which is the main Mexican<br />

seaport registering the highest levels<br />

of cargo movements.<br />

The HCV-Mobile system consists<br />

of a fully integrated transport vehicle<br />

and a scanning boom to provide<br />

an autonomous system,<br />

which does not require a fixed installation<br />

or any external services.<br />

After driving to its designated location<br />

the system is ready to begin<br />

full operation in less than 30 minutes<br />

and once set up, the HCV-Mobile<br />

can scan a loaded truck in less<br />

than 2 minutes or approximately<br />

25 trucks per hour (load, wheels,<br />

tank, chassis and cabin). Full mobility<br />

allows the unit to be operated<br />

on almost any level surface. The system’s<br />

high penetration capability<br />

combined with its unique sensor<br />

array enables the HCV-Mobile to<br />

scan fully-loaded containers and to<br />

give a high resolution X-ray image,<br />

comparable to that obtained from<br />

Heimann Systems larger and more<br />

powerful stationary systems.<br />

Newsline<br />

FIRST HAND INFORMATION for General Eric Shinseki (5th r), Chief of Staff<br />

of the US Army during his recent visit to the AUSA exhibition stand of the Rheinmetall<br />

DeTec <strong>AG</strong> group in Washington. Shinseki who also visited the European<br />

center of competence for army systems in Unterlüß these days, was given a<br />

thorough briefing on the 105 mm smoothbore weapon system, the related family<br />

of munitions and the program of armored vehicles. Representatives at the exhibition<br />

included (from l to r) Eckard Lomann (Rheinmetall Landsysteme/RLS), Klaus-<br />

Dieter Seip (Rheinmetall W & M), Alois K. Osterwalder (Oelikon Contraves), Volney<br />

F. Warner (US representative of Rheintech Inc./Washington), Eric Prummenbaum,<br />

Manfred Eggers, Dr. Josef Jörg and Dr. Bernhard Halstrup (all RLS) and Allen Buckley<br />

(Oerlikon Contraves). As the most important exhibition for army systems in the<br />

USA, the AUSA 2000 (Association United States Army) welcomed about 27,000 visitors;<br />

there were 600 exhibitors, of which ten percent were from abroad.<br />

A hidden<br />

champion<br />

Wiesbaden/Kassel. Heimann Systems<br />

GmbH is one of the five winners<br />

of the campaign “Hesse, here is the future”.<br />

More than 100 Hessian firms<br />

had entered the competition to win<br />

the Hidden Champions award. Ultimately,<br />

Heimann Systems secured a second<br />

place together with three other<br />

companies. “Hidden Champions” is<br />

an initiative launched jointly by the<br />

state of Hesse and the association of<br />

Hessian employers. The award is bestowed<br />

on companies that play a leading<br />

role in specialized fields of the<br />

market and that are distinguished by<br />

globalization, innovative power and<br />

entrepreneurial spirit. The prize-giving<br />

ceremony was attended by the Hessian<br />

minister of trade and industry, Dieter<br />

Posch, and the vice president of the<br />

association of Hessian employers,<br />

Paul Coenen, representing the initiators<br />

of the event. In his speech Hans A.<br />

Linkenbach, president of Heimann Systems,<br />

remarked that the “company’s<br />

workforce is constantly committed to<br />

developing innovative products and to<br />

finding customer-oriented solutions.“<br />

10<br />

Order from<br />

Switzerland<br />

Bern/Bremen. Rheinmetall subsidiary<br />

STN Atlas Elektronik GmbH of Bremen<br />

has received a major order from<br />

Switzerland. The company will equip<br />

120 armored vehicles of the Swiss<br />

Army with observation and reconnaissance<br />

equipment. The contract with<br />

Gruppe Rüstung has now been signed<br />

in Bern. STN Atlas Elektronik is a member<br />

of Rheinmetall DeTec <strong>AG</strong>, Ratingen,<br />

responsible for defence activities<br />

of the Rheinmetall Group.<br />

The Swiss Army will receive 120 armored<br />

vehicles for gunnery commanders<br />

within the next years. The related<br />

orders were placed with three companies,<br />

among them STN Atlas Elektronik<br />

as supplier for the observation equipment<br />

with thermal imager, CCD camera<br />

and laser range finder. In addition to<br />

the control unit and the test equipment<br />

for field and depot maintenance,<br />

the scope of delivery also comprises<br />

spare parts packages. Furthermore,<br />

the order includes training courses<br />

and systems. Four systems will be delivered<br />

within a preproduction batch in<br />

the fall of 2001.


Certification sets<br />

further standards<br />

Nova Odessa. Successful project<br />

conclusion with a model character:<br />

some weeks ago KS Pistões Ltda., a<br />

Brazilian subsidiary of KS <strong>Kolbenschmidt</strong><br />

GmbH, was the first <strong>Kolbenschmidt</strong><br />

<strong>Pierburg</strong> piston manufacturer<br />

outside Germany to be certified in accordance<br />

with ISO 14001 (environment<br />

management system) and BS<br />

8800 (occupational health and safety<br />

management system). The subsidiary<br />

with its headquarters in Nova Odessa<br />

(Sao Paulo) whose 1250 employees<br />

will produce about 14 million pistons<br />

this year (a new record!) has again set<br />

new standards that should also have<br />

a positive effect on business in future.<br />

Commenting on the certification,<br />

Americo Rajczy, the commercial director<br />

of KS Pistões Ltda., pointed out<br />

Newsline<br />

PAT delivers dynamic vehicle weighing systems – checkpoints in Germany<br />

Fight against overloaded vehicles<br />

Ettlingen. Determined fight against<br />

overloaded vehicles: the traffic telematics<br />

division of the PAT group has<br />

booked two major orders for vehicle<br />

weighing systems to be provided at<br />

freeways in Germany (PAT GmbH, Ettlingen)<br />

and the Netherlands (PAT Krüger<br />

bv. Holland). These orders worth<br />

more than € 3.5 million were won largely<br />

on grounds of PAT’s extensive experience<br />

with dynamic weighing systems<br />

and system integration and the<br />

Part of PAT’s vehicle weighing systems:<br />

the portable PC with a display of values<br />

exceeding allowable thresholds to<br />

allow efficient police operations.<br />

group’s high competence regarding<br />

the practical implementation of digital<br />

video systems.<br />

According to Laurie Burns, chairman<br />

of the management board at PAT, the<br />

“new strategy of integrating additional<br />

sensors that complement our own<br />

range of products both technologically<br />

and in terms of application potential<br />

is bearing first fruits.” In the words<br />

of Dr. Dieter Cichon, in charge of product<br />

management and development:<br />

“The consistent development and application<br />

of digital video systems has<br />

provided a sound basis for various<br />

video-based traffic monitoring applications.<br />

These capabilities will give us<br />

the competitive edge in future acquisition<br />

projects.”<br />

A measuring point network with dynamic<br />

weighing systems for high<br />

speeds is being established throughout<br />

Germany. The first tender comprises<br />

13 measuring points on German<br />

freeways in Bavaria, Brandenburg,<br />

Mecklenburg, Western-Pomerania,<br />

North Rhine-Westphalia and Saxony-<br />

Anhalt. All vehicles on every lane of<br />

the freeway will be detected and classified<br />

automatically at the measuring<br />

points.<br />

that the “company is now well-equipped<br />

for the future, especially as we<br />

have already fulfilled requirements<br />

which will be a precondition for securing<br />

new orders from 2001/2002 onwards.<br />

The certification has a model<br />

character, especially in Brazil, and it<br />

will also improve the reputation of the<br />

German industry in the country.”<br />

The pistons manufactured on advanced<br />

production facilities in Nova<br />

Odessa are delivered to all continents:<br />

about 70 percent of parts produced<br />

are shipped abroad (e.g. to<br />

Europe, the USA, Mexico or Australia).<br />

And the quality is excellent, as<br />

evidenced by the high sales figures<br />

generated. In addition to the 1999<br />

Supplier of the Year distinction recently<br />

awarded by General Motors,<br />

KS Pistões has also received quality<br />

awards from VW do Brasil and Maxion<br />

International this year, both of<br />

which have a long tradition in busin-<br />

11<br />

As a minimum, the right-hand lane<br />

will have weighing sensors integrated<br />

in the surface of the roadway. Cichon:<br />

“Freeway traffic will not be influenced<br />

by the measurement sensors. Our HS-<br />

WIM system (High Speed Weighing In-<br />

Motion) determines the axle loads of<br />

trucks at speeds of up to 120 km/h,<br />

allowing for certain tolerances.” Based<br />

on the individual axle load values,<br />

the system then determines the<br />

total weight of multiple axle groups<br />

and the actual weight of the vehicle.<br />

There are limit values for the maximum<br />

allowable axle load and the total<br />

weight for every class of vehicle. The<br />

system can produce an alarm signal<br />

as soon as a limit value is exceeded.<br />

Seven of the 13 measuring points in<br />

Germany will additionally be equipped<br />

with a digital video system that<br />

will help police to identify overloaded<br />

vehicles and to filter such vehicles out<br />

of the moving traffic. The digital video<br />

system consists of a color camera, a<br />

data transmission link and a portable<br />

PC with digital image processing. An<br />

image of the overloaded vehicle and<br />

the overload percentage data are sent<br />

to the police officer at the point where<br />

the vehicle is to be filtered out of the<br />

moving traffic.<br />

ess with KS Pistões. Maxion (a joint<br />

venture with International Inc./USA)<br />

is a major diesel engine manufacturer<br />

located in Porto Alegre in the<br />

south of Brazil.


Newsline<br />

Interview with Mario Gabrielli of Rheinmetall DeTec<br />

Conflicts can only be resolved with a strong partner<br />

Ratingen/Berlin. The recommendations<br />

of the independent Weizsäcker commission<br />

(set up by the German government) on<br />

the reform of the German armed forces<br />

were announced some time ago as were<br />

the proposals of the German minister of<br />

defence, Rudolf Scharping, on the reorientation<br />

of the German armed forces which<br />

– as Germany’s biggest employer – (currently)<br />

have around 320,000 soldiers and<br />

some 130,000 civilian employees. Experts<br />

are unanimous in their opinion that one of<br />

the prime aims of the reform will have to<br />

be the (re-)orientation of military structuresto<br />

the tasksofcrisismanagementand<br />

crisis prevention. Any issues concerning<br />

the future of the services naturally also affect<br />

the future of the defence industry in<br />

Germany. To discuss the impact on the industry,<br />

Newsline spoke to Mario Gabrielli<br />

(57), a member of the executive board of<br />

Rheinmetall DeTec <strong>AG</strong> – under whose umbrella<br />

a European center of competence<br />

for ground forces has been established<br />

within a matter of only a few years. The latest<br />

example of the integration of capabilities<br />

in the military sector is the recent<br />

establishment of Rheinmetall Landsysteme<br />

GmbH, marking a further step towards<br />

a further concentration of systems capabilities<br />

in the armored vehicle sector in Germany<br />

and Europe (see also related article<br />

in this issue of Newsline).<br />

Newsline: How would you assess the recommendations<br />

and proposals announced<br />

by the Weizsäcker commission and<br />

Rudolf Scharping?<br />

Gabrielli: The commission did a good<br />

job of the tasks set: allowing for security<br />

risks and the interests of the German state,<br />

the commission proposed new structures<br />

which will not only involve adjustments<br />

but also genuine reforms. The defence<br />

minister’s reform concept adopts<br />

the fundamental recommendations of<br />

the commission although he has, for instance,<br />

more than doubled the proportion<br />

of conscripts, for obvious reasons.<br />

Newsline: Basically, therefore, the proposals<br />

confirm that the defence and alliance<br />

capability of the German armed forces<br />

and hence also of the German army<br />

are a firm element of today’s society.<br />

Gabrielli: Yes, that is correct. The general<br />

public is fully supportive of the principles<br />

of a German defence capability and<br />

the ability to operate within the alliance,<br />

in other words the German population is<br />

in favor of a democracy that is “fit for military<br />

tasks”. Election results over the years<br />

have impressively demonstrated just<br />

this. The establishment of the German<br />

Bundeswehr, the membership in NATO<br />

and the subsequent growth of a powerful<br />

defence industry<br />

would not have been<br />

possible without the<br />

democratic support<br />

of the nation.<br />

Newsline: Nonetheless,<br />

particularly<br />

also as a result of<br />

the collapse of the<br />

Mario Gabrielli<br />

12<br />

Soviet power, geostrategic<br />

conditions<br />

have changed dramatically as have the<br />

tasks facing the armed forces and German<br />

foreign policy.<br />

Gabrielli: These changes have been given<br />

due consideration not only by the<br />

German government and parliament but<br />

also by the German armed forces. Looking<br />

at the German constitution, it is evident<br />

that the German government has extended<br />

its security tasks far beyond the<br />

original intent of actual national defence.<br />

Article 24, para. 2 of the German constitution<br />

states the following: “For the maintenance<br />

of peace, the Federation may join a<br />

system of mutual collective security; in<br />

doing so it will consent to such limitations<br />

upon its sovereign powers as will<br />

The transport vehicle Fuchs being used as an ambulance<br />

vehicle in Bosnia.<br />

bring about and secure a peaceful and<br />

lasting order in Europe and among the<br />

nations of the world.” In addition to this,<br />

the United Nations charter, chapter VII,<br />

states that actions are to be taken in the<br />

event of “a threat to the peace, the<br />

breach of peace or an act of aggression”<br />

. . . to assign the air force, navy or army . . .<br />

“to maintain or restore international peace<br />

and security.”<br />

Newsline: In terms of the German Bundeswehr<br />

this means that the tasks will . . .<br />

Gabrielli: . . . surely concentrate on the<br />

following core areas: the Bundeswehr will<br />

have to defend Germany and its allies<br />

against military threats and attacks; the<br />

fundamental commitment towards national<br />

defence therefore continues to be an<br />

important task. Internationally, the German<br />

armed forces are simultaneously making<br />

an important contribution towards<br />

military stability and integration on a European<br />

scale, and – in cooperation with<br />

international forces – are helping to bring<br />

under control and manage crises in Europe<br />

and elsewhere in the world.<br />

Newsline: The logical consequence is<br />

therefore that the tasks under German law<br />

and international treaties cannot be fulfilled<br />

without soldiers and weapons.<br />

Gabrielli: And it is also logical that an armaments<br />

industry is an essential prerequisite<br />

for this. This is equally true for Germany<br />

where the defence industry, being a<br />

private sector industry, has to deal with<br />

very restrictive legislation. In many other<br />

European states, the armaments industry<br />

is nationalized and in the light of this export<br />

policies are must less restrictive than<br />

here in Germany.<br />

Newsline: What you are saying is that,<br />

given the restrictive export policy in Germany,<br />

the competitiveness of the German<br />

defence industry is at a<br />

disadvantage . . .<br />

Gabrielli: ...which is<br />

one of the fundamental<br />

rules of economic dealings,<br />

as anyone will<br />

know: one doesn’t have<br />

to be an expert to understand<br />

this. We urgently<br />

need an EU-wide harmonization<br />

of European legislation<br />

for armament<br />

exports.<br />

Newsline: The German<br />

defence industry, and especially<br />

the companies of the Rheinmetall<br />

group operating under the umbrella of<br />

Rheinmetall DeTec <strong>AG</strong> have managed to<br />

maintain their systems and core capabilities<br />

in important areas of military equipment<br />

for the German forces and partly also<br />

those of allied nations, and they have<br />

managed to do this despite drastic reductions<br />

in terms of personnel and capacities.<br />

Can the industry survive such an ad-<br />

justment process under the existing conditions?<br />

Gabrielli: Any attempt to reduce the existing<br />

status of the German defence industry<br />

even further would not only undermine<br />

and violate our fundamental, statutory<br />

principles but would also unacceptably<br />

diminish Germany’s ability to fulfill its international<br />

peacekeeping obligations in<br />

accordance with the UN charter. Germany<br />

would no longer be a dependable partner<br />

within the international community of nations.<br />

This also illustrates the immense<br />

political significance of the defence industry.<br />

It plays a vital role within the scope of<br />

national and international peacekeeping.<br />

Newsline: In the final declaration of the<br />

UN’s millennium summit held in September<br />

2000 in New York, many heads of government<br />

and state – including the German<br />

chancellor Schröder – spoke out in<br />

favor of a reinforcement of UN peacekeeping<br />

missions. An area where the German<br />

Bundeswehr will also have to show<br />

greater commitment in future.<br />

Gabrielli: The 15 members of the UN Security<br />

Council have indeed decided to prepare<br />

a new concept for peacekeeping missions<br />

of the United Nations and to strengthen<br />

the role of the UN. In doing this, the<br />

UN intends to ensure that peacekeeping<br />

forces will be able to react more quickly to<br />

crises in the future. Besides, Kofi Annan,<br />

the UN secretary general, only recently<br />

supported a whole lot of far-reaching recommendations<br />

made by an international<br />

commission chaired by the former Algerian<br />

foreign minister Lakhdar Brahimi; this commission<br />

has called for “robuster” UN peacekeeping<br />

operations. Amongst other things,<br />

the report says that, when the UN dispatches<br />

troops on peacekeeping missions,<br />

they must also be willing to stand up to the<br />

powers of war and their forces and must be<br />

determined to conquer these forces.<br />

Newsline: According to the intent of the final<br />

declaration of the millennium summit of<br />

the UN Security Council, this is also to be<br />

achieved by better training and equipment.<br />

Gabrielli: The requirements laid down<br />

by the Security Council cannot be fulfilled<br />

without thoroughly trained soldiers and<br />

modern weapon systems. Which is where<br />

we come back to the fundamental principle:<br />

the armed forces need a powerful defence<br />

industry to enforce and maintain<br />

peace in regions of conflict.<br />

Newsline<br />

Optical fibers<br />

for Control Net<br />

Neckartenzlingen. Richard Hirschmann<br />

GmbH & Co. (Neckartenzlingen)<br />

has booked an order from Allen Bradley<br />

Inc. (Mayfield Heights/USA), a subsidiary<br />

of Rockwell Automation, for the<br />

development and production of an<br />

optical fiber module for the field bus<br />

Control Net. Allen Bradley will market<br />

the module worldwide under its own<br />

name. The order worth approx. three<br />

million German marks spans a period<br />

of three years.<br />

Field buses like the Profibus, Device<br />

Net or Control Net are used for data<br />

transmission in industrial communication<br />

networks. Optical fiber modules<br />

convert electrical signals into optical<br />

signals. The advantage offered by such<br />

systems is that they can cover distances<br />

of several kilometers without<br />

requiring intermediate amplification,<br />

and the signals are insensitive to<br />

electromagnetic interference phenomena<br />

frequently occurring in production<br />

environments.<br />

Hirschmann is one of the renowned<br />

manufacturers of optical fiber modules<br />

Hirschmann<br />

has a new name<br />

Neckartenzlingen. Richard Hirschmann<br />

GmbH & Co. KG (Neckartenzlingen)<br />

is now operating under a<br />

new name: Hirschmann Electronics<br />

GmbH & Co. KG. This new name reflects<br />

the increasingly global orientation<br />

of the Hirschmann group.<br />

Already today, nearly 60 percent of<br />

sales are generated abroad. The<br />

marketing companies in Europe and<br />

overseas will likewise operate under<br />

the name of Hirschmann Electronics<br />

in future. As a subsidiary of the<br />

listed Aditron <strong>AG</strong>, Hirschmann is a<br />

member of the Düsseldorf-based<br />

Rheinmetall group. Hirschmann‘s<br />

products range from mobile transmission<br />

and reception systems to<br />

analog and digital broadcasting<br />

technology through to network components<br />

and field bus systems for<br />

the automation sector. With a workforce<br />

of 2,700 persons worldwide,<br />

Hirschmann achieved sales of 576<br />

million German marks in 1999.<br />

13<br />

Insensitive to electromagnetic interference:<br />

optical fiber modules from<br />

Hirschmann for data transmission in<br />

industrial communication networks.<br />

for various field bus applications.<br />

Manfred Jakob, international sales<br />

manager of the automation and network<br />

solutions division, points out: “In<br />

the past, our program did not include a<br />

module for Control Net, which is a<br />

standard widely used in the USA. The<br />

order from Allen Bradley has now given<br />

Hirschmann access to the North American<br />

market, where the Rockwell group<br />

is one of the leaders in the automation<br />

business.”<br />

Film/foil division<br />

now strengthened<br />

Rudersberg/Niederkassel-Mondorf.<br />

A member of the Jagenberg<br />

Group, Lemo Maschinenbau GmbH,<br />

Niederkassel-Mondorf, Germany, is<br />

taking over with instant effect the<br />

business operation of SMR Stiegler<br />

Maschinenfabrik GmbH at Rudersberg<br />

close by Stuttgart. The move<br />

enables Lemo Maschinenbau<br />

GmbH to further round off its product<br />

lineup. Lemo will continue to<br />

run the Rudersberg location as a<br />

production and R&D center probably<br />

with a staff of around 40. Stiegler’s<br />

existing expertise will be utilized,<br />

further developed and enhanced<br />

through this bundling of resources.<br />

Lemo intends to integrate the<br />

newly acquired operation into its<br />

own global marketing and service<br />

network and hence ensure that<br />

Stiegler customers, too, will benefit<br />

from existing customer proximity in<br />

product development and aftersales<br />

service.


Newsline<br />

Between 29 September and 3 October 2000, 15 journalists from renowned European newspapers and magazines<br />

traveled to the USA to collect first-hand information on the activities of the <strong>Kolbenschmidt</strong> <strong>Pierburg</strong> group in North<br />

America. The tight schedule included visits with <strong>Pierburg</strong> Inc. in Fountain Inn/Greenville (South Carolina) and Karl<br />

Schmidt Unisia Inc. in Marinette (Wisconsin). One of the group of journalists was Christian Bartsch (72) who worked for<br />

the German newspapers Frankfurter Allgemeine Zeitung, Süddeutsche Zeitung and the Swiss Automobile Revue.<br />

Bartsch (born in Klein-Polkwitz, Lower Silesia) who has written about his impressions of <strong>Kolbenschmidt</strong> <strong>Pierburg</strong>’s activities<br />

in the USA, is rated as an expert in this field: after school and an apprenticeship as a car mechanic, he went on<br />

to study mechanical engineering in Dresden and Berlin; after his university studies, he developed two-stroke engines<br />

for four years and then worked in the industrial control and measurement sector for some years. In 1961, he moved on<br />

to work as a technical journalist for the paper Motor Rundschau (Frankfurt am Main); Bartsch<br />

has been working as a free-lance journalist, author and consultant to renowned German<br />

companies – primarily in the automotive sector – since 1970. Summing up his personal impressions<br />

of the trip, Bartsch stated: “During our short trip through the USA, we journalists<br />

got to know the “other side” of <strong>Kolbenschmidt</strong> <strong>Pierburg</strong> that will help to secure the group’s<br />

future. The group is in the process of conquering the New World, at least its automotive sector.<br />

And we learned about future developments to be tackled by <strong>Kolbenschmidt</strong> <strong>Pierburg</strong>.<br />

There is certainly plenty of work on the road ahead!”<br />

<strong>Kolbenschmidt</strong> <strong>Pierburg</strong>: great success with German technology<br />

A circumspect approach to the USA<br />

Greenville/Marinette. When Europeans<br />

refer to the USA, they may mean<br />

Florida, New York or perhaps Hollywood<br />

and Los Angeles. We know about<br />

the last war in the States, the war<br />

between the north and south and obviously<br />

about the Indians from films<br />

and literature. But what about <strong>Kolbenschmidt</strong><br />

<strong>Pierburg</strong>? What have they got<br />

to do with the USA? In point of fact,<br />

quite a lot – and a lot more in future,<br />

too. The following article gives some<br />

impressions gained during a short trip<br />

through the United States.<br />

“What you see there are all potential<br />

customers”, said Dr. Dieter Seipler<br />

with broad smile. What he actually<br />

meant were the large American limousines,<br />

pick-ups and SUVs (special utility<br />

vehicles) on a crowded street. Some<br />

of them already have pistons from <strong>Kolbenschmidt</strong>,<br />

originating from the joint<br />

production program with Unisia JECS,<br />

a Japanese piston manufacturer. Other<br />

vehicles may be equipped with Pier-<br />

burg parts, “but still not enough” in<br />

the opinion of Seipler, who points out<br />

that this will certainly change in the<br />

years to come; after all, the company<br />

only entered the US market with its<br />

own production in 1996. Given this<br />

short period of time, the company has<br />

achieved a lot.<br />

In 1995, the executive board of <strong>Pierburg</strong><br />

<strong>AG</strong> decided to establish a production<br />

plant in Greenville, South Carolina,<br />

in the south east of the USA.<br />

There were many reasons for choosing<br />

this site, particularly the vicinity of<br />

BMW in the neighboring town of Spartanburg,<br />

DaimlerChrysler in Alabama<br />

and especially VW in Mexico. The infrastructure<br />

in the region is excellent; a<br />

further bonus has been that the state<br />

of Carolina helped with tax incentives<br />

and with the training of the initial<br />

workforce. As explained by Willy Ruefenacht,<br />

president of <strong>Pierburg</strong> Inc.,<br />

“we had to teach the employees the<br />

metric system.” Although the system<br />

Production started in late summer 1996: the <strong>Pierburg</strong> Inc. plant at Fountain Inn.<br />

14<br />

Rosa Lee, a <strong>Pierburg</strong> Inc. employee in<br />

Greenville (South Carolina) since 1998<br />

at the functional test stand of line 3<br />

where fuel tank modules are being<br />

tested for DaimlerChrysler.<br />

has existed in the USA for more than<br />

three decades, it has never really been<br />

used. Distances are still measured in<br />

miles, as evident everywhere on the<br />

signposts and even on the speedometers<br />

in cars. And inches are still a common<br />

unit as are many other older units<br />

of measurement.<br />

The first gasoline modules left the<br />

new factory in Greenville on the first of<br />

August 1996, and by the end of the<br />

year the company had generated sales<br />

worth two million dollars. Today, sales<br />

are in the order of 30 million dollars,<br />

and the trend is up. Initially, only four<br />

products were manufactured; today,<br />

(Continued on page 15)


35 different products are produced.<br />

Ruefenacht is optimistic that sales will<br />

have doubled within the next four to five<br />

years, especially as customers now<br />

include General Motors (GM) and Ford<br />

(orders from the latter having been<br />

won against stiff competition). The<br />

production of throttle bodies and of oil<br />

and water pumps is due to be launched<br />

shortly. More than 800,000<br />

throttle bodies are to be delivered to<br />

GM alone per year. And further components<br />

will follow.<br />

The technology for all of these components<br />

originally came from Germany<br />

and this is where the development<br />

center will remain. <strong>Kolbenschmidt</strong><br />

<strong>Pierburg</strong> is, however, also in the process<br />

of establishing development centers<br />

in Fort Wayne and Auburn Hills near<br />

Detroit in order to be able to serve<br />

US carmakers more quickly. The first<br />

Willy Ruefenacht Frank Pohlmann<br />

components were all-German; today,<br />

about 50 percent come from Germany<br />

and the rest are manufactured in the<br />

USA. To achieve this, <strong>Pierburg</strong> took its<br />

suppliers like Alfmeier, Mikron, Friedrichs<br />

+ Rath, Norma and others to the<br />

States to warrant top quality.<br />

Michael Thiery who was sent to the<br />

USA by <strong>Pierburg</strong> and has returned to<br />

Germany in the meantime has drawn<br />

attention to the fact that Germany and<br />

the USA have a totally different approach<br />

to technical developments.<br />

Whereas a constant forward-looking<br />

approach is pursued in Germany, this<br />

is less prominent in the USA. There have<br />

been short development bursts<br />

when new engines or other car components<br />

had to be developed. The new<br />

components were then checked out<br />

thoroughly (in which context it is worth<br />

noting that US carmakers benefit from<br />

far bigger pre-series than are common<br />

Newsline<br />

<strong>Kolbenschmidt</strong> <strong>Pierburg</strong>: great success with German technology<br />

A circumspect approach to the USA<br />

(Continued from page 14)<br />

Some 50,000 pistons leave the production plants of Karl Schmidt Unisia Inc. in<br />

Marinette (Wisconsin) every day.<br />

in Germany). Once this stage was reached,<br />

the product was left unchanged<br />

for as long as possible.<br />

“To determine weaknesses, we perform<br />

failure analyses and load tests like<br />

endurance runs on a few components.<br />

In America, some 1000 components<br />

have to be tested before seriesproduction<br />

is launched and this is how<br />

they find defects – rather an expensive<br />

method in our opinion”, says<br />

Thiery. “We will combine the two methods<br />

in order to bring the failure rate<br />

down to zero”. One of the next steps in<br />

this direction will be to automate production<br />

processes even further in order<br />

to assure the quality both in Germany<br />

and the USA.<br />

Things haven’t got quite this far,<br />

however. Currently, 120 employees of<br />

which 80 are female work at the plant<br />

in Greenville. The average age is 36.<br />

Assuming that an annual average of at<br />

least five percent of hours missed is<br />

common in Germany, the corresponding<br />

figure for the USA is less than<br />

one. Compared to an average of 210<br />

working days per year in Germany,<br />

Americans work for 249 days – one<br />

entire production month extra. According<br />

to Willy Ruefenacht, the workforce<br />

in America is highly motivated. Incidentally,<br />

about 90 percent of US-Americans<br />

do not have a passport, i.e. have<br />

never left their country – hardly surprising<br />

considering the size of their<br />

country. Commenting on the level of<br />

education in the USA, Ruefenacht<br />

points out that this is lower. “Besides,<br />

they have nothing like the German<br />

15<br />

qualification system (apprenticeships<br />

etc.). We either have unskilled workers<br />

or people who have graduated from<br />

college.”<br />

Leaving the warm summer temperatures<br />

of Greenville, we flew northward<br />

via Chicago to Marinette, lying in the<br />

north of the USA where <strong>Kolbenschmidt</strong><br />

and the Japanese manufacturer Unisia<br />

built a joint production site for pistons<br />

in 1990 – probably the world’s largest<br />

piston factory. Following the purchase<br />

of the US piston manufacturer Zollner,<br />

<strong>Kolbenschmidt</strong> is now the biggest piston<br />

manufacturer on the US market<br />

and ranks second in the world. Frank<br />

Pohlmann, president of Karl Schmidt<br />

Unisia Inc. (KUS) in Marinette, points<br />

out that there are only three other major<br />

piston manufacturers in the world.<br />

The smaller companies have either been<br />

taken over or have disappeared<br />

from the market. <strong>Kolbenschmidt</strong> <strong>Pierburg</strong><br />

has secured an excellent position<br />

and, above all, it is determined to<br />

achieve further growth.<br />

KUS in Marinette presently delivers<br />

50,000 pistons per day. Another<br />

40,000 pistons are manufactured in<br />

Fort Wayne and 10,000 in a Canadian<br />

<strong>Kolbenschmidt</strong> factory. In other words,<br />

about 100,000 pistons per day are<br />

produced on the North American continent<br />

alone! Customers include all engine<br />

manufacturers in the USA, ranging<br />

from Harley Davison for which<br />

KUS is the sole supplier, to ship engines<br />

from OMC and all carmakers<br />

through to large diesel engines. An in-<br />

(Continued on page 16)


(Continued from page 15)<br />

teresting point is that Ford, GM and<br />

DaimlerChrysler still produce about 27<br />

percent of their pistons themselves –<br />

strictly supported by their unions<br />

which are adamant that none of the<br />

people involved in piston manufacture<br />

should lose their jobs. A situation that<br />

cannot be sustained in the long run<br />

because only specialists like <strong>Kolbenschmidt</strong><br />

<strong>Pierburg</strong> are capable of making<br />

the necessary advance developments<br />

required in this sector. This is<br />

why, in the course of the last 25 years,<br />

German carmakers have been transferring<br />

ever bigger shares of their development<br />

and production to suppliers<br />

who have long since started<br />

doing their own development work.<br />

Marinette welcomed us with cool<br />

temperatures and autumnal colors –<br />

although the Indian Summer was expected<br />

to start two weeks later – and<br />

with the only hotel in the town. We were<br />

all the more impressed when we saw<br />

what Frank Pohlmann and his deputy<br />

Richard Dishaw, also development manager<br />

at KUS, had to offer us. The trend<br />

from component to module deliveries<br />

is equally evident for pistons. Although<br />

some pistons are still delivered without<br />

rings, GM and Ford demand modu-<br />

Newsline<br />

<strong>Kolbenschmidt</strong> <strong>Pierburg</strong>: great success with German technology<br />

A circumspect approach to the USA<br />

Dr. Dieter Seipler, chairman of the executive<br />

board, explaining the goals for<br />

the <strong>Kolbenschmidt</strong> <strong>Pierburg</strong> group in<br />

the USA to a group of 15 journalists.<br />

His message: further growth.<br />

les having the piston<br />

with rings, bolts and<br />

connecting rod. Since<br />

<strong>Kolbenschmidt</strong> in<br />

Neckarsulm, Germany,<br />

also casts engine<br />

blocks, the road<br />

to the short-block engine<br />

is not far away,<br />

and <strong>Pierburg</strong> could<br />

contribute numerous<br />

other components<br />

up to and including<br />

the intake manifold.<br />

The short-block engines<br />

could then quickly<br />

be complemented<br />

to complete, assembled<br />

engines readyfor-installation<br />

which<br />

are still manufactured<br />

and assembled<br />

by carmakers nowadays.<br />

<strong>Kolbenschmidt</strong><br />

<strong>Pierburg</strong> still has a lot<br />

of work to do in the<br />

years to come. In Marinette<br />

Dr. Dieter Seipler,<br />

chairman of the<br />

executive board of <strong>Kolbenschmidt</strong> <strong>Pierburg</strong><br />

<strong>AG</strong>, outlined the projects for the<br />

future, including high-pressure pumps<br />

for injection. He emphasized that the<br />

development of new materials is considered<br />

the most important research<br />

project as the trend toward high engine<br />

performance with simultaneous downsizing<br />

will accelerate in future. Times<br />

are not getting easier for the supplier<br />

industry, especially as – to comply with<br />

future exhaust limit thresholds – pollution<br />

emission values will have to be reduced<br />

by another 50% and fuel consumption<br />

by about 20% although car<br />

manufacturers demand lower prices<br />

despite the technological advances<br />

made. Seipler remarked that these requirements<br />

can only be met if the<br />

group continues to grow.<br />

Which innovations are on the horizon<br />

for the piston sector? <strong>Kolbenschmidt</strong>’s<br />

diesel piston with potted<br />

cooling channel is to be installed in<br />

the 1.9 liter VW TDI with 110kW/150 hp.<br />

A relatively new product from Marinette<br />

is the articulated piston for utility<br />

vehicle diesel engines, out of which<br />

the pure steel piston will be derived:<br />

16<br />

Certified machine operator Bonnie Dobbin, who has been<br />

with Karl Schmidt Unisia Inc. (KUS) in Marinette since<br />

1986, at the automatic final inspection station, checking<br />

out the Saturn piston for General Motors.<br />

this will probably go into series-production<br />

in about seven to ten years time.<br />

For VW, <strong>Kolbenschmidt</strong> has also<br />

developed the piston for the direct injection<br />

gasoline engine (FSI) which<br />

features a complicated crown surface<br />

to support the combustion process.<br />

This system will allow fuel savings of<br />

about 15 percent. Other projects include<br />

high heat-resistant aluminum alloys,<br />

coatings and composites with<br />

other materials. These examples illustrate<br />

just some of the many different<br />

tasks for the next decade. Even before<br />

the decade is over, spark ignition and<br />

diesel engines will work with homogenous<br />

combustion and emit practically<br />

no pollutants whatsoever.<br />

<strong>Kolbenschmidt</strong> <strong>Pierburg</strong>’s commitment<br />

in the USA has been a major<br />

step, rendered possible by the technologies<br />

developed in Germany. The<br />

group’s plants in the USA will only continue<br />

to show above-average performance<br />

if the parent company in Germany<br />

continues to create innovative<br />

products. And this is something we<br />

are pretty certain about.<br />

Christian Bartsch


Order backlog<br />

up 16 percent<br />

Neuss. Jagenberg <strong>AG</strong>, Neuss, supplier<br />

to the international paper, film,<br />

foil production and conversion companies,<br />

has shown a significant increase<br />

in order intake during the year<br />

2000. As of September 30, 2000, Jagenberg’s<br />

order influx had grown 5.8<br />

percent over the year-earlier € 258.8<br />

million to reach € 299.6 million. As a<br />

consequence, orders on hand as of<br />

Newsline<br />

A partner of the armed forces and industry – Rheinmetall DeTec<br />

Poland – a strategic market<br />

Warsaw/Ratingen. The fall of the<br />

Iron Curtain, the reunification of Germany,<br />

the collapse of the Soviet Union<br />

and the disappearance of the Warsaw<br />

Pact have fundamentally changed the<br />

boundary conditions for the armed forces<br />

of Germany and Poland alike, and<br />

for the defence industries of these nations.<br />

Poland has become an important<br />

military ally of Germany within NA-<br />

TO and – as a future member of the European<br />

Union – has also developed into<br />

a significant economic partner.<br />

The development of the market in<br />

Poland has been and will be determined<br />

very largely by the following factors:<br />

Poland became a member of NA-<br />

TO on 12 March 1999; Poland has applied<br />

for membership in the EU and<br />

under the six-year plan announced by<br />

the Polish defence minister, decisions<br />

are due shortly on the procurement of<br />

new military systems and the upgrading<br />

of existing systems.<br />

Based on the regulations (issued by<br />

the council of ministers on 17 November<br />

1999) governing the reorganization<br />

of the Polish defence industry, consisting<br />

of 37 government-owned companies,<br />

ten research institutes, twelve<br />

maintenance establishments and<br />

three trading companies and also on<br />

the privatization initiative, cooperation<br />

ventures with the Polish industry<br />

now have an entirely different framework.<br />

Privatization is an important<br />

step towards becoming fit for international<br />

competition and cooperation.<br />

Amounting to about 860 million German<br />

marks, the procurement budget<br />

for this year is relatively low. Nonetheless,<br />

given the size of the country, its<br />

September 30, 2000, gained a very<br />

heartening 15.6 percent and totaled €<br />

222 million. In the first three quarters<br />

of 2000, sales by the Jagenberg group<br />

grew to € 211.1 million, up 5.8 percent<br />

over the first nine months of 1999.<br />

Both divisions, paper technology<br />

and film/foil technology shared<br />

equally in this upswing. Thanks to a<br />

brisk order inflow for slitters and coaters<br />

as well as major international<br />

projects, again including contracts<br />

with well-known North American customers,<br />

order received by paper<br />

armed forces with 240,000 soldiers,<br />

the positive economic development –<br />

an economic growth of six percent is<br />

predicted for this year – and the modernization<br />

and standardization requirements<br />

of the armed forces, Poland is<br />

rated as a strategic growth market for<br />

the defence industry.<br />

As a partner of the armed forces and<br />

the industry of Poland, Rheinmetall<br />

DeTec <strong>AG</strong> is actively committed to the<br />

Distinguished by the Polish “Defender”: the observation<br />

and reconnaissance equipment BAA from STN Atlas Elektronik<br />

GmbH. Pictured here is the advanced opto-electronic<br />

observation and reconnaissance system forming part<br />

of the reconnaissance vehicle MRDM2.<br />

Polish market. The medium to long<br />

term strategy of the Rheinmetall DeTec<br />

group is:<br />

★ to tap sales potential on new markets<br />

by offering innovative, affordable<br />

products tailored to the relevant requirements<br />

★ to improve the international competitiveness<br />

by means of alliances, mergers<br />

and acquisitions.<br />

This will also help to strengthen the<br />

integration and the interoperability of<br />

17<br />

technology advanced by around 10<br />

percent. A steady intake of orders in<br />

the USA and the rebounding Asian<br />

markets meant that orders booked by<br />

film/foil technology jumped by as<br />

much as 18 percent over 1999.<br />

For the whole of 2000, Jagenberg<br />

expects an order gain of over 20 percent<br />

compared with 1999. With international<br />

markets for specialty machinery<br />

for the paper, film, and foil industries<br />

making good recovery, Jagenberg<br />

<strong>AG</strong> will be able to launch into fiscal<br />

2001 with a solid order backlog.<br />

Poland in the alliance and to promote<br />

cooperation in the defence industry.<br />

Poland has been an important customer<br />

of Oerlikon Contraves for seven<br />

years; the latter entered into an important<br />

strategic cooperation with the prime<br />

contractor Radwar (Warsaw) to improve<br />

the combat effectiveness of the<br />

Loara air defence system. In addition to<br />

this, the 35 mm gun of Oerlikon Contraves<br />

is being built under license by the<br />

Polish company Huta<br />

Stalowa Wola in Stalowa<br />

Wola. The observation<br />

and reconnaissance<br />

equipment BAA<br />

of STN Atlas Elektronik<br />

GmbH has been selected<br />

to improve the<br />

performance of the<br />

Polish reconnaissance<br />

vehicle BRDM2;<br />

this order has been<br />

placed by the Polish<br />

prime contractor WZM<br />

Siemanowice (Siemanowice).<br />

MaK (Kiel), recently<br />

incorporated in the<br />

new company Rheinmetall<br />

Landsysteme GmbH, has entered<br />

into a marketing cooperation for<br />

armored vehicles with the Polish company<br />

Bumar Labedy (Gleiwitz).<br />

The members of the Rheinmetall De-<br />

Tec group will continue to offer their<br />

competence in the defence systems<br />

and services sector as a partner of the<br />

armed forces and industry of Poland.<br />

Dieter Hanel*<br />

*Dieter Hanel (55) is the marketing manager of MaK<br />

System Gesellschaft mbH, Kiel, which was recently<br />

integrated in Rheinmetall Landsysteme GmbH.


Newsline<br />

Rheinmetall Landsysteme GmbH in Kiel delivered 100th air start unit<br />

International success<br />

after only a few years<br />

Kiel. A milestone: Rheinmetall Landsysteme<br />

GmbH recently handed over<br />

the 100th air start unit. It is the tenth<br />

unit of this type delivered to Saudi Arabian<br />

Airlines which had placed the order<br />

following the highly successful<br />

operation of the seven air start units<br />

already delivered last year. When all<br />

units under the present order have been<br />

delivered, Saudi Arabian Airlines<br />

will have a total of 26 MSU 400, one of<br />

the new units being intended for the<br />

Royal Fleet of the Kingdom of Saudi<br />

Arabia. The air start unit is a gas turbine<br />

driven ground support equipment<br />

used to start the engines of aircraft<br />

whose onboard power supply is inoperative.<br />

Since 1976, the company has been<br />

working on the integration of gas turbine<br />

units developed for airborne applications<br />

into military and commercial<br />

ground equipment. It soon became apparent<br />

that the necessary peripheral assemblies<br />

such as<br />

gear box, fuel control,<br />

and electronic<br />

control unit could<br />

be implemented<br />

much more economically<br />

on the basis<br />

of vehicle-specific<br />

know-how.<br />

For numerous military<br />

programs,<br />

Rheinmetall Landsysteme<br />

GmbH<br />

developed auxiliary<br />

power units<br />

(APU) for modern<br />

military vehicles<br />

using both airborne<br />

components<br />

such as parts of<br />

the gas turbine and the company’s expertise<br />

in this sector. The Leopard 2<br />

and M1 Abrams main battle tanks were<br />

equipped with prototype APUs,<br />

whereas the South Korean Armored<br />

Recovery Vehicles K 1 were equipped<br />

with series-produced APUs. These<br />

units were developed and built in a<br />

close cooperation with Hamilton<br />

Sundstrand, USA, one of the top manufacturers<br />

of APUs for aviation.<br />

At the beginning of the 1990s, experts<br />

in Kiel started to examine the<br />

possibilities of using this special knowledge<br />

in commercial programs as<br />

well. Investigations were conducted<br />

into the various possible applications,<br />

such as in the field of cogeneration power<br />

plants, stand-by power supply for<br />

high speed trains and ships.<br />

The result of a study showed that not<br />

only increasing quantities but also performance-enhanced<br />

ground support<br />

equipment would be required by the<br />

growing market for civil aviation and<br />

the new generation of aircraft which<br />

was at that time due to be introduced.<br />

In particular, there was a demand for<br />

air start units for the new generation of<br />

aircraft engines. Two or even three<br />

units of the equipment that was in service<br />

then were needed to start the engines<br />

reliably. The Kiel based company<br />

succeeded in developing a much more<br />

powerful air start unit, the MSU 200<br />

Used at many airports around the world: the air start unit of Rheinmetall Landsysteme<br />

GmbH (Kiel). The 100th ASU was handed over to Saudi Arabian Airlines.<br />

and 400, using Sundstrand’s gas turbine<br />

APS 2000 and the APU of the<br />

Boeing 737-300, -400, -500. MaK’s air<br />

start unit MSU 200 is capable of starting<br />

all aircraft engines of the Airbus family<br />

and the Boeing family up to B 747-<br />

400, while the twin unit MSU 400 can<br />

even start all known engines of existing<br />

and future generations of aircraft.<br />

The company belonging to Rheinmetall’s<br />

Defence sector started develo-<br />

18<br />

Justifiably proud of the 100th air start<br />

unit: the ASU production team.<br />

ping its air start unit in April 1995. Only<br />

one year later, the first production unit<br />

was delivered to Leipzig airport. Another<br />

six air start units were delivered to<br />

various European customers in 1996.<br />

And in 1997, the company finally succeeded<br />

in selling the first unit to a customer<br />

in the USA. This was the beginning<br />

of the worldwide marketing of the<br />

air start unit. Presentations of the<br />

unit’s capabilities, characteristics, efficiency<br />

and performance by means of a<br />

demonstrator were carried out for interested<br />

customers in South-East Asia,<br />

the Middle East and Scandinavia.<br />

The good results of these demonstrationsconvinced<br />

various customers<br />

and led to<br />

further contracts.<br />

In 1998, air start<br />

units were ordered<br />

by customers from<br />

the USA, Saudi<br />

Arabia, and Scandinavia.<br />

And the<br />

company succeeded<br />

in qualifying<br />

the MSU 200 as<br />

the standard<br />

equipment of SAS<br />

and the MSU 400<br />

as the standard<br />

equipment of Saudi<br />

Arabian Airlines.<br />

Meanwhile, air<br />

start units are in service at airports in<br />

thirteen different countries on three<br />

continents.<br />

The excellent experience which customers<br />

have gained with the systems<br />

and the customer-oriented service<br />

that is provided are the reason why the<br />

company has managed to assert its<br />

position internationally against the<br />

conventional units of the competitors<br />

in less than five years.


Newsline<br />

MSI uses electronic trade platform for car components<br />

TecCom for access via Internet<br />

Frankfurt/Neckarsulm. TecDoc Informations<br />

System GmbH of Cologne<br />

(established in 1994) whose founding<br />

members included the former <strong>Pierburg</strong><br />

GmbH and Siemens Business<br />

Services GmbH & Co. OHG (Munich)<br />

have transformed their e-business<br />

project TecCom, associated with the<br />

development and marketing of an electronic<br />

trade platform for car components,<br />

into TecCom GmbH (Unterschleißheim).<br />

Besides the very successful<br />

electronic catalog on CD-ROM,<br />

an e-business “branch” solution is<br />

now also available for the European<br />

automotive aftermarket, specifically<br />

for the automotive parts industry and<br />

parts trade and for repair shops. One<br />

of the more than 20 renowned European<br />

supplier companies that founded<br />

TecCom is MSI Motor Service International<br />

GmbH. MSI – which was likewise<br />

established not so long ago –<br />

recently completed its first and very<br />

successful exhibit with its two trade<br />

marks <strong>Kolbenschmidt</strong> and <strong>Pierburg</strong> at<br />

the Automechanika 2000.<br />

Commenting on the international ecommerce<br />

initiative entitled TecCom,<br />

currently covering <strong>Pierburg</strong>’s entire<br />

trade program, MSI’s managing director<br />

Torsten Stiller explains that “this<br />

modern solution offers a complete<br />

Subsidiary in Greece<br />

Athens. STN Atlas Elektronik GmbH now has its own<br />

subsidiary in Greece. The new 100% subsidiary with its<br />

headquarters in Athens is a stock corporation, operating<br />

under the name of STN Atlas (Hellas) Monoprosopi E.P.E.<br />

The trade name is STN Atlas (Hellas) E.P.E. STN Atlas<br />

(Hellas) E.P.E was already established in June of this year.<br />

The main purpose of the company is to look after the interests<br />

of the parent company in the case of orders from<br />

the contracting authorities in Greece, and to deal with<br />

the related offset agreements. Like many other countries,<br />

Greece has regulations specifying that governmental<br />

orders should preferably be placed with Greek<br />

companies. These requirements also apply to Greek subsidiaries<br />

of foreign companies to the extent that Greek<br />

persons are employed by the subsidiary. This applies to<br />

STN Atlas (Hellas) E.P.E. For STN Atlas Elektronik GmbH,<br />

this new subsidiary is another step towards the greater<br />

internationalization and globalization of the company,<br />

at the same time allowing for the justifiable interests of<br />

the purchasing countries which are demanding the appropriate<br />

involvement of their local industries.<br />

Also available via the Internet thanks<br />

to TecCom: <strong>Pierburg</strong>’s system program<br />

from MSI Motor Service International<br />

GmbH.<br />

and comprehensive system with<br />

which our business processes can be<br />

included in our logistic system even<br />

faster and even more cost effectively<br />

than in the past. <strong>Pierburg</strong> products<br />

contained in the electronic parts catalog<br />

can now be ordered via the Internet;<br />

in addition, availability data, price<br />

and catalog data can be transmitted.<br />

Moreover, MSI can now send its<br />

customers delivery note and invoice<br />

data electronically. In other words:<br />

19<br />

this new e-commerce concept developed<br />

out of the electronic portal Tec-<br />

Doc and the electronic marketplace<br />

TecCom is one of the most effective<br />

systems of its kind.” MSI’s <strong>Kolbenschmidt</strong><br />

system program will be marketed<br />

via the new product disk (electronic<br />

Internet-based product catalog)<br />

which was also presented at the Automechanika<br />

2000.<br />

Looking back: in early 1994 the aftermarket<br />

division of the (former) company<br />

<strong>Pierburg</strong> GmbH was one of the<br />

founding partners of TecDoc Informations<br />

System GmbH which has been responsible<br />

for the concepts, updating<br />

and marketing of the electronic catalog<br />

of car parts. The TecDoc database<br />

on CD-ROM which is updated every<br />

three months is a real “hit”. According<br />

to figures published by the Colognebased<br />

company, more than 15,000<br />

CDs are distributed throughout Europe<br />

per quarter. These CDs contain the catalog<br />

data of the automotive supplier<br />

industry in electronic form, with more<br />

than half a million articles from more<br />

than 100 manufacturers, of which some<br />

90,000 are provided with illustrations.<br />

Added to this, about 10,000 CD-<br />

ROMs are based on the vehicle park<br />

and search structure of the TecDoc export<br />

version.<br />

150th scanner for USA<br />

Jena. Heimann Biometric Systems GmbH (HBS), one of<br />

the leading manufacturers of technology for the digital<br />

capturing of fingerprints in police applications recently delivered<br />

the 150th scanner of the LS1/P+ Livescanner type<br />

since series production was launched in the fall of 1999.<br />

The scanner was shipped to Sagem Morpho Inc. (Tacoma/USA),<br />

a long-time OEM customer and one of the<br />

pioneers regarding the integration of advanced HBS finger<br />

and palm scan technology into AFIS automatic fingerprint<br />

identification systems. In the words of Dr. Bernd Reinhold,<br />

president of HBS: “With 150 LS1/P+ (the FBI certified, international<br />

scanner version) and another 500 LS1/P (the specific<br />

scanner version developed for the Japanese market)<br />

sold to many users and countries all over the world, HBS<br />

has established itself as a permanent and reliable key<br />

source of this kind of product on the market. We are proud<br />

to see that our strong development efforts over the last<br />

years and our customer-oriented commitment paid off so<br />

well. This would not have been possible so quickly without<br />

the help and demands from our partners, amongst them<br />

Sagem Morpho Inc. is playing an important role.”


Newsline<br />

Successful product development at Heimann Systems GmbH (Wiesbaden)<br />

ProLine system sets<br />

standards for future<br />

Wiesbaden. Omnipresent at the<br />

World Exposition Expo 2000 and in<br />

daily use in 150 different countries all<br />

over the world: X-ray inspection systems<br />

from Heimann Systems GmbH, a<br />

member of the Aditron group. ProLine,<br />

the most recent system concept from<br />

the company has once again set standards<br />

in radiographic screening technology.<br />

ProLine is distinguished by modern<br />

image processing functions, an<br />

optimized working environment and<br />

an attractive design. Based on its new<br />

modular system concept, the Wiesbaden-based<br />

company will be able to further<br />

expand its market leadership in<br />

the field of X-ray screening equipment<br />

for persons and baggage at airports.<br />

The new system is not only trend-setting<br />

– its development has also given<br />

further impetus and incentives for the<br />

future.<br />

In view of growing competition especially<br />

on the American market, Heimann<br />

Systems GmbH<br />

decided in 1996 to<br />

adopt a new approach<br />

to product development.<br />

Focusing on<br />

cost saving aspects, a<br />

project team was set<br />

up to perform an<br />

indepth analysis of<br />

X-ray screening equipment<br />

for baggage.<br />

Stefan Aust, Heimann<br />

Systems product manager<br />

for baggage<br />

screening equipment,<br />

points out that “longterm<br />

aspects and considerations<br />

had to be<br />

taken into account due to the seven to<br />

ten year functional cycle of such systems.<br />

This meant that future market<br />

requirements had to be identified.” An<br />

intensive exchange of information therefore<br />

took place between the team<br />

members of Heimann Systems and external<br />

authorities, ultimately resulting<br />

in an entirely new system generation.<br />

Commenting on the initial stages of<br />

project work in the team, Aust explains<br />

that “to start off with, we got together<br />

with all involved: this group consisted<br />

of representatives from the relevant<br />

authorities, airport operators and security<br />

personnel as the actual operators<br />

of the equipment. The different requirements<br />

and concepts of the individual<br />

groups were defined in the course<br />

of the discussions held.”<br />

At the same time, the “stress” research<br />

group of the institute for research<br />

and development of industrial medicine<br />

at Heidelberg University prepared<br />

an expertise on ergonomic requirements<br />

relating to X-ray screening<br />

equipment used at airports. The study<br />

(commissioned by Heimann Systems)<br />

conducted under the leadership of Professor<br />

Horst Meyer indicated various<br />

deficits regarding the ergonomic design<br />

of the working places – for instance,<br />

no arm rests were provided at<br />

that time or the stand casing did not offer<br />

enough foot space. The experts<br />

from Heidelberg came to the conclusion<br />

that an adjustable system would be<br />

recommendable.<br />

Heimann Systems’ advanced ProLine system concept: the flexible modular<br />

system providing an optimized working place design for baggage screening<br />

personnel has been well received on the market.<br />

Remarking on the significance of the<br />

research order, Aust pointed out that<br />

conventional ergonomic designs of systems<br />

installed at airports revealed<br />

considerable weaknesses. The harmonization<br />

of European regulations on the<br />

protection of health and industrial safety<br />

has made the ergonomic design of<br />

working places used to screen baggage<br />

at airports all the more essential. Industrial<br />

designers were therefore engaged<br />

in order to develop new possibilities of<br />

achieving an aesthetic design coupled<br />

with a greater system flexibility.<br />

20<br />

The excellent cooperation of the team<br />

members with each other and with experts<br />

from outside the company boosted<br />

the creativity of all involved. New<br />

ideas were developed and introduced<br />

under the responsibility of team members<br />

and without time pressure. This<br />

unique form of product development<br />

gave rise to an innovative overall solution<br />

which, as a modular system, can<br />

be adapted to the individual requirements<br />

of customers.<br />

The new operator-oriented concept of<br />

the working environment has a direct<br />

impact on the quality of security<br />

checks. Aust emphasizes that higher<br />

passenger volumes and greater quantities<br />

of baggage have increased the<br />

psychological pressure on security personnel.<br />

System operators have to decide<br />

within a matter of seconds whether<br />

or not the screened baggage presents<br />

a potential threat. This is why it is particularly<br />

important to give due consideration<br />

to the “human factor”.<br />

Optimum support from security personnel<br />

was therefore essential during<br />

product development. Different assignments<br />

and job rotation have necessitated<br />

a greater system flexibility and the<br />

ability to adjust systems to different<br />

persons. This has been<br />

achieved by providing<br />

an electrical height-adjustment<br />

feature allowing<br />

easy adjustment<br />

and by implementing<br />

an adjustable backsupport<br />

to relieve the<br />

strain on the operator’s<br />

back. The HITraX system<br />

technology with<br />

an entirely new online<br />

image analysis process<br />

is a further contributing<br />

factor. Another asset is<br />

that the new system reduces<br />

screening times<br />

considerably.<br />

By virtue of its advanced technology<br />

and high reliability, ProLine is ideally<br />

tailored to working requirements in<br />

high-security screening areas. About<br />

one quarter of baggage screening systems<br />

from Heimann Systems has been<br />

equipped with these options for ergonomic<br />

working places, and the trend<br />

continues to be positive. Aust concludes<br />

that Heimann Systems has created<br />

a trend-setting system with its new Pro-<br />

Line equipment generation, which was<br />

patented by the German patent office in<br />

Munich on 21 June 2000.


Newsline<br />

David Packard Excellence in Acquisition Award<br />

Innovative cooperation<br />

and cost efficiency<br />

Washington/Zurich/Oberndorf. Oerlikon<br />

Contraves Pyrotec <strong>AG</strong> (OCP) and<br />

Mauser Werke Oberndorf Waffensysteme<br />

GmbH (MWO) along with other<br />

companies have received the 1999 David<br />

Packard Excellence in Acquisition<br />

Award from the US Under Secretary of<br />

Defense for Acquisition, Technology<br />

Advanced amphibious assault vehicle of US Marine Corps.<br />

and Logistics. Christoph Panek (Mauser<br />

Werke), Oskar Brodmann and Allan<br />

Buckley (both from Oerlikon Contraves<br />

Pyrotec) accepted the certificate on<br />

behalf of Rheinmetall DeTec <strong>AG</strong>.<br />

This distinction is awarded once a<br />

year to mark extraordinary acquisition<br />

projects in the defence sector. In 1999,<br />

the award was given for the innovative<br />

cooperation and cost-efficient approach<br />

relating to the procurement of a<br />

new weapon system (gun turret) and<br />

the related ammunition for the advanced<br />

amphibious assault vehicle (AAAV)<br />

of the US Marine Corps. As possible<br />

suppliers of the ammunition, OCP and<br />

Mauser cooperated closely with the responsible<br />

procurement authorities.<br />

Their commitment has not only led to<br />

this award but also resulted in the conclusion<br />

of a contract for the delivery of<br />

the ammunition for test purposes.<br />

The AAAV procurement project was<br />

launched in the early nineties. At that<br />

time, the US Marine<br />

Corps decided<br />

that the existing,<br />

traditional amphibious<br />

vehicles<br />

should be replaced.<br />

One of the<br />

main reasons for<br />

this decision was<br />

that the vehicles<br />

have to be brought<br />

very near to the<br />

shore by the carrier<br />

ship of the US<br />

Navy, a fact which<br />

obviously reduces<br />

the surprise effect<br />

quite considerably<br />

and makes troops<br />

and vehicles far<br />

more susceptible to hostile attacks.<br />

The new AAAV will be launched at a<br />

greater distance where it is not visible<br />

from the shore and can then move on<br />

the water’s surface towards the coastline<br />

at a speed of 30 knots, even in<br />

stormy seas. Once the vehicle has arrived<br />

on shore, it then drives on land<br />

and continues its mission as a conventional<br />

armored assault vehicle. The 33<br />

ton heavy vehicle requires a crew of<br />

three and can transport 18 fully equipped<br />

soldiers. The AAAV trial period of<br />

several years currently taking place also<br />

involves technical ammunition<br />

tests and service trials.<br />

Oerlikon Contraves Pyrotec <strong>AG</strong> and Mauser Werke Oberndorf Waffensysteme<br />

GmbH have proposed this ammunition for the AAAV: a long arrow projectile made<br />

from heavy metal with a driving band integrated in the plastic covering. The projectile<br />

is capable of penetrating solid and special armor of considerable thickness.<br />

21<br />

The Greek army will receive 54 Short<br />

Range Air Defence Systems (Shorad)<br />

from STN Atlas Elektronik GmbH<br />

(Bremen). The system will consist of<br />

the weapon system with entire<br />

opto-electronics as well as the radio<br />

equipment. It will be integrated on<br />

vehicles of the type “Wolf”, to be<br />

built under a license agreement by<br />

the Greek company ELBO.<br />

Shorad systems<br />

for Greek army<br />

Athens/Bremen. The Greek army<br />

will receive 54 Short Range Air Defence<br />

Systems (Shorad) from STN<br />

Atlas Elektronik GmbH. The related<br />

contracts were recently signed with<br />

the Greek Defence Agency (GDA) in<br />

Athens. The order has a total value<br />

of 134 million €. Deliveries are<br />

scheduled to commence in the second<br />

half of the year 2002. The contract<br />

includes a cooperation agreement<br />

with the Greek partner EBO as<br />

well as extensive offset agreements.<br />

The order represents a further<br />

milestone with regard to the<br />

international marketing of the<br />

export variants of the German light<br />

air defence system LeFlaSys which<br />

is being series-produced in Germany.<br />

The Greek systems of the type<br />

ASRAD Hellas (Atlas Short Range<br />

Air Defence) will consist of the weapon<br />

system with the entire opto-electronics<br />

as well as the radio<br />

equipment. It will be integrated on<br />

vehicles of the type “Wolf”, to be<br />

built under a license agreement by<br />

the Greek company ELBO. The order<br />

also covers the training facilities<br />

in form of a classroom simulator<br />

as well as three on-board simulation<br />

systems from the Simulation<br />

Systems division of STN Atlas Elektronik.


Newsline<br />

GM distinction awarded to KS Pistões Ltda.<br />

Brazilian subsidiary<br />

is Supplier of the Year<br />

Detroit/Nova Odessa. High praise<br />

from a competent authority and also a<br />

premiere for <strong>Kolbenschmidt</strong> <strong>Pierburg</strong>’s<br />

piston division: KS Pistões Ltda. in Nova<br />

Odessa, a Brazilian subsidiary of KS<br />

<strong>Kolbenschmidt</strong> GmbH (Neckarsulm),<br />

has received the 1999 Supplier of the<br />

Year award from General Motors Corp.<br />

(GM/Detroit). This prestigious award,<br />

celebrating its eighth consecutive<br />

year, is given annually by the world’s<br />

biggest carmaker to its best global<br />

suppliers in recognition of their superior<br />

performance during the previous<br />

year. KS Pistões – the piston manufacturer<br />

was proposed directly by the GM<br />

subsidiary Opel – received the distinction<br />

for its 1.8 l piston which is delivered<br />

to Opel’s engine plant in Hungary.<br />

Hosting the event, Harold R. Kutner,<br />

group vice president of GM responsible<br />

for worldwide purchasing and<br />

North American production control<br />

and logistics, remarked that KS<br />

Pist_es is “one of<br />

our best and brightest<br />

suppliers. It is<br />

an honor to have<br />

them working with<br />

us. Their contributions<br />

to General<br />

Motor’s overall<br />

success are immeasurable.<br />

We<br />

look upon the Supplier<br />

of the Year<br />

award as an impor-<br />

tant recognition of<br />

their value as an<br />

automotive industry<br />

supplier.”<br />

An assessment<br />

which Rajczy, commercial<br />

director of<br />

KS Pistões Ltda<br />

was proud to confirm:<br />

“This is the<br />

first time that the<br />

Automotive sector’s piston division<br />

has received this highly coveted award<br />

from General Motors. The excellence<br />

of quality, logistics service and cost effectiveness<br />

offered by KS Pistões in<br />

connection with the very intensive<br />

technical and commercial support<br />

Clearly delighted with the award:<br />

Americo Rajczy (c), commercial director<br />

of KS Pistões Ltda. in Nova Odessa<br />

in the federal state of Saõ Paulõ. Shown<br />

with him are Hans H. Demant (l),<br />

executive director international development<br />

center and member of the<br />

executive board of Adam Opel <strong>AG</strong> (l)<br />

and Frank L. Colvin, vice president engineering,<br />

General Motors Europe.<br />

from our headquarters KS <strong>Kolbenschmidt</strong><br />

GmbH in Neckarsulm fulfilled<br />

our customer’s expectations and has<br />

now been recognized by the prestigious<br />

1999 Supplier of the Year award.<br />

We are all proud of this award which,<br />

amongst other things, makes us stand<br />

out in the Brazilian market and motivates<br />

us – and naturally all others, too –<br />

to reach even greater levels of customer<br />

satisfaction.”<br />

The GM Supplier of the Year award<br />

began as a global program in 1992.<br />

Award-winners are selected by a global<br />

team of executives from purchasing,<br />

engineering, manufacturing and<br />

logistics who base their decisions on<br />

supplier performance in quality, service,<br />

technology and price. This year,<br />

General Motors honored 181 suppliers<br />

from 22 countries for their excellence<br />

throughout 1999; thirteen winners were<br />

from Brazil. Commenting on the nomination<br />

which is quite remarkable,<br />

Rajczy pointed out<br />

that “the GM subsidiary<br />

in Brazil<br />

had nominated<br />

twelve local suppliers;<br />

we were the<br />

only Brazilian company<br />

proposed by<br />

Opel.”<br />

KS Pistões Ltda.,<br />

a member of the<br />

<strong>Kolbenschmidt</strong><br />

<strong>Pierburg</strong> group,<br />

has been operating<br />

in Brazil since<br />

1968. The company<br />

which has a<br />

workforce of some<br />

1250 employees<br />

will produce approximately<br />

14 million<br />

pistons this year –<br />

a new record for<br />

the site (+ 18.6 %<br />

compared to 1999). 70 % of the products<br />

are exported to Europe, the USA,<br />

Mexico and Australia. An important<br />

share of KS Pistões’ production is<br />

shipped to companies belonging to<br />

the international General Motors<br />

group.<br />

22<br />

The new C-class of Mercedes-Benz:<br />

<strong>Kolbenschmidt</strong>-<strong>Pierburg</strong> have once<br />

again delivered components and systems<br />

for every aspect of the engine.<br />

Automotive in<br />

new C-class<br />

Stuttgart/Neckarsulm/Neuss. Dynamism<br />

and driving pleasure: these<br />

are the outstanding features of the<br />

C-class automobiles from Mercedes<br />

Benz (which is a member of the<br />

DaimlerChrysler group) – and many<br />

of the components are from <strong>Kolbenschmidt</strong><br />

<strong>Pierburg</strong>. Recently, the new<br />

C-class from Mercedes Benz celebrated<br />

its international premiere after<br />

a development period of four<br />

years and investments totaling approx.<br />

1.36 billion euros.<br />

This also signaled the launch of a<br />

whole package of technical innovations<br />

which the manufacturer<br />

claims are unequalled in this segment<br />

of the market: never before<br />

has such a strong emphasis been<br />

laid on safety and comfort in this<br />

class of automobile; and added to<br />

this, the new C-class guarantees<br />

utmost dynamism and driving pleasure.<br />

One of the partners contributing to<br />

these innovations with its technical<br />

products and technological knowhow<br />

is – once again – the Automotive<br />

sector of the Rheinmetall group.<br />

In fact, the new limousine has a quite<br />

a number of components and modules<br />

from <strong>Kolbenschmidt</strong> <strong>Pierburg</strong><br />

under its bonnet. The ultra-light magnesium<br />

intake manifold for the 6cylinder<br />

engines is delivered by the<br />

air supply division of <strong>Kolbenschmidt</strong><br />

<strong>Pierburg</strong>. The EGR mixing chamber,<br />

the air mass sensor and the new intelligent<br />

electrical drive module<br />

EDM-I all help to reduce pollutant<br />

emissions. The new high-pressure<br />

side channel pump warrants a reliable<br />

supply of fuel even under extreme<br />

driving conditions.


Newsline<br />

Mass deacidification facility inaugurated at Wimmis<br />

Cultural treasures<br />

preserved for the future<br />

Wimmis. The red carpet is rolled out<br />

in Wimmis (in the Bernese Oberland):<br />

On 1 September 2000, the world’s biggest<br />

and most modern mass deacidification<br />

facility for paper was inaugurated<br />

at Nitrochemie Wimmis <strong>AG</strong>, Switzerland.<br />

Persons attending the event<br />

included Ruth Dreifuss from the federal<br />

assembly, officials from libraries<br />

and archives and representatives from<br />

Ruth Dreifuss from the federal assembly discussing the significance<br />

of paper deacidification with Gregor Stockmannn<br />

(r), chairman of the management board of Nitrochemie <strong>AG</strong><br />

and fellow board member Beat Steuri (l).<br />

trade and industry, political and cultural<br />

groups.<br />

Paper which has been manufactured<br />

on an industrial scale since the middle<br />

of the nineteenth century is susceptible<br />

to acid-induced decay owing to<br />

the chemical treatment applied. The<br />

cultural treasures contained in the old<br />

documents and books will decompose<br />

unless they are preserved. In the<br />

course of the last thirty years, libraries<br />

and archives have come to realize that<br />

the problem of acid-induced decay<br />

can no longer be resolved with individual<br />

conservation measures but that a<br />

mass solution to the problem must be<br />

sought. Ultimately, this realization<br />

prompted a joint governmental and<br />

private initiative in Switzerland to preserve<br />

precious cultural assets for future<br />

generations.<br />

Visitors attending the inauguration<br />

at Nitrochemie Wimmis <strong>AG</strong> were offered<br />

a festive program: after the musical<br />

introduction, Gregor Stockmann,<br />

chairman of the management board of<br />

Nitrochemie Wimmis <strong>AG</strong>, welcomed<br />

the guests. In his opening speech, he<br />

pointed out that “working in cooperation<br />

with Nitrochemie <strong>AG</strong>, the Swiss<br />

national library and the Swiss federal<br />

archives joined forces to launch a<br />

trend-setting project to preserve our<br />

cultural assets.”<br />

Emphasizing the significance of<br />

mass deacidification<br />

in Wimmis, Ruth<br />

Dreifuss from the federal<br />

assembly remarked:<br />

“Culture is<br />

to remember. The<br />

decay of paper means<br />

the loss of culture.<br />

The Swiss national<br />

library and Swiss<br />

federal archives alone<br />

have about 3000<br />

tons of documents<br />

endangered by acidinduced<br />

decay.”<br />

To preserve these<br />

documents, the two<br />

organizations launched<br />

a joint project<br />

in 1990 and initiated<br />

the production of a mass deacidification<br />

facility for paper in Switzerland. The<br />

government-owned facility is operated<br />

by Nitrochemie Wimmis <strong>AG</strong> (Wimmis)<br />

which has the necessary know-how<br />

and also has a certified quality and environment<br />

management system. In the<br />

words of Beat Steuri, a board member<br />

alongside Stockmann: “Although originally<br />

a business specializing in mili-<br />

Robert Guyer at the control monitors<br />

of the computer-controlled system.<br />

23<br />

Paper (produced on an industrial scale<br />

since 1850) is prone to acid-induced<br />

decay. Paper deacidification is the only<br />

method to preserve documents.<br />

tary materials, Nitrochemie Wimmis<br />

<strong>AG</strong> also operates in the civil sector<br />

with an emphasis on chemical activities<br />

– a capability that is particularly<br />

important for mass deacidification, especially<br />

regarding the chemistry of cellulose<br />

fiber, the base material used in<br />

paper production.” To attain the high<br />

quality standards demanded by the<br />

national library and federal archives of<br />

Switzerland, the Swiss system was<br />

technically improved, advanced and<br />

extended to include a reconditioning<br />

system (the so-called “papersave<br />

swiss” method).<br />

The facility operating according to<br />

the Battelle method is designed to<br />

handle a capacity of 120 tons per year.<br />

It consists of two treatment chambers,<br />

each with a volume of about ten cubic<br />

meters, the related process technology<br />

and a tank store for storage and<br />

preparation of the chemicals used for<br />

treatment. Depending on the format,<br />

16 to 20 running meters of books or<br />

documents weighing between 450<br />

and 900 kg can be treated in one<br />

batch per treatment chamber. The system<br />

is controlled and monitored by<br />

computers.<br />

The facility which was already taken<br />

into operation in March this year allows<br />

the national library and federal archives<br />

each to have 40 tons of archived<br />

material and books deacidified<br />

every year. In addition to the twothirds<br />

capacity employed by these two<br />

institutions, one third (approximately<br />

40 tons) will be available for public<br />

and private archives in Switzerland<br />

and neighboring countries.<br />

In the opinion of Stockmann, the<br />

“mass deacidification facility is a good<br />

example of a successful public-private<br />

partnership project. This is also reflected<br />

by the five new jobs created at<br />

Nitrochemie Wimmis <strong>AG</strong> as a result of<br />

this project.”


AESTHETIC VIEWS as seen by the<br />

artist. Two prominent German photographers<br />

have once again captured<br />

many surprising effects and artistic<br />

motifs. The photos presenting various<br />

defense products from Rheinmetall<br />

DeTec <strong>AG</strong> and its subsidiaries will be<br />

included in the calendar for the year<br />

2001 and will also be used to visualize<br />

the products of the Defence sector,<br />

especially also within the scope of<br />

international marketing activities.

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!