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

Create successful ePaper yourself

Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.

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!