PDF [1.6 MB] - Kolbenschmidt Pierburg AG

The latest news from the Rheinmetall Group 

Naval training 

Simulation systems from 

Rheinmetall Defence are an essential 

instrument offering outstanding naval 

training conditions (pages 4 + 5). 

3/2007 

Coordination 

Coordination: As head of 

Corporate Offset Management, Joost 

van Gemert is breaking new ground 

in the Rheinmetall group (pages 6+7). 

Rheinmetall Defence has introduced a new organizational structure 

Strong partners on markets worldwide 

Düsseldorf. Strong partnership on international 

markets: with effect from 

July 1, 2007, Rheinmetall Defence has 

introduced a new organizational structure 

with a clear focus on international 

markets. This new structure is based 

on the six business units Land Systems, 

Weapon and Munitions, Propellants, 

Air Defence, C4ISTAR, Simulation 

and Training. With their product 

groups, each of these business units 

will be responsible for defined market 

segments. In addition to its special regional 

sales offices and teams, Rheinmetall 

Defence has companies in Canada, 

Italy and Greece with a so-called 

portal function; these businesses operate 

regionally, partly with a complete 

value-added chain, are responsible for 

their sales and profits and can serve 

their regional customers with the complete 

product portfolio of Rheinmetall 

Defence. 

One face to the customer – this is 

what Rheinmetall Defence with its 

strategic focus on national and international 

markets seeks to provide with its 

new organization. The previous four 

business units that operated along the 

lines of their corporate structures (e.g. 

legal entities) have been replaced by 

six new business units that combine 

specific system activities and are responsible 

for their operating results. 

With the three national portals, these 

six units constitute Rheinmetall Defence. 

In other words, the business 

units and national portals will act as the 

general point of contact and competent 

systems partner for customers – and 

not the individual Rheinmetall subsidiaries 

as was the case in the past. 

Concentrated know-how and competence: the six market-oriented business units. 

Rheinmetall intends to use its 

strengths even more efficiently in competitive 

markets in coming years. All the 

more so as the group has a number of 

promising assets: its extensive product 

portfolio with a focus on land systems is 

complemented by the group’s ability to 

design and implement highly sophisticated 

systems. Rheinmetall’s longstanding 

customer relations are already 

highlighted by the group’s global pres- 

ence (currently, exports make up for 

around 63% of defence sales, of which 

80% are achieved in 30 different countries), 

a number of international co-operations 

and – footing on these – the market 

lead in numerous target segments. 

Rheinmetall CEO Klaus Eberhardt – 

supported by the other executive 

board members Detlef Moog, Heinz 

Dresia, Helmut Merch and Ingo Hecke – 

(Continued on page 2) 

Composing: Kristina Frei

Newsline 

Land Systems Weapon and Munitions Propellants Air Defence C4ISTAR Simulation and Training 

Armoured vehicles 

Turrets + weapon stations 

Supporting vehicles 

Command and 

functional vehicles 

Services 

Direct fire 

Indirect fire 

Infantry 

Protection systems 

Plant engineering 

(Continued from page 1) 

who is also the CEO in charge of Defence 

activities, on the strategic reason 

for the reorientation: “The reorganization 

aims to consolidate commonalities 

under the umbrella of Rheinmetall 

Defence and enhance the management 

of the group. We intend to expand our 

system capabilities even further – by 

decentralizing responsibilities to the 

maximum degree possible – and 

hence to raise our profile on markets. 

One of the main 

targets of our new 

structure is to 

support and 

strengthen 

growth on international 

sales 

markets.“ 

Commenting on 

entrepreneurial 

functions within 

the Defence group, 

Eberhardt adds 

that the new Defence 

organization 

defines and identifiesresponsibilities 

very clearly 

since the six business 

units are 

centers of competency; added to this, 

(internal) coordination processes will 

be optimized and the capacity to act 

dynamized. “With its new structure, 

Rheinmetall Defence is now well prepared 

and – above all – ready for further 

steps towards the consolidation of 

the European land systems industry.” 

One important feature of the reorganization 

is the mentioned allocation of 

competencies and market responsibilities 

to the six business units and (cur- 

Issue: August/September 2007 

Propellant systems 

Civil chemistry 

Newsline is a summary of the most 

important news articles published 

in “Das Profil”, the company newspaper 

of the Rheinmetall group 

2 

Ground based AD 

Naval AD 

Services 

rently three) national companies with 

their portal function. These portals in 

Canada, Greece and Italy/Mediterranean 

region plus the regional sales 

offices will likewise strengthen international 

business, backed by the six regional 

sales teams responsible for the 

markets in the USA, Scandinavia, western 

and eastern Europe, Asia, Australia 

and the rest of the world. 

Further key objectives of the new 

structure are: to strengthen the entre- 

preneurial role of the business units 

that are each managed by a managing 

director responsible for sales and profits 

(see also info box “System portfolio 

streamlined”), to define rules for cooperation 

and intra-group accounting 

within the newly organized Defence 

unit and to explicitly lay down tasks 

and functions of the new business 

units and the legal entities. 

Although the legal entities that will 

continue to exist in future (e.g. Rhein- 

Reconnaissance 

Command 

Fire control 

Airborne systems 

Publisher: Rheinmetall AG 

P.O. Box 10 42 61 

D-40033 Düsseldorf 

newsline@rheinmetall.com 

Flight simulation 

Land simulation 

Maritime and 

process simulation 

Rheinmetall Defence has introduced a new organizational structure 

Strong partners on markets worldwide 

One face to the customer – with a strategic focus on national and international markets. 

metall Landsysteme GmbH, Rheinmetall 

Defence Electronics GmbH, 

Rheinmetall Waffe Munition GmbH, 

Oerlikon Contraves AG) will feature less 

prominently in future, they will give the 

business units comprehensive support 

where infrastructure, development, 

project management, production, purchasing 

and quality management, human 

resources, accounting and finance/controlling 

are concerned. Last 

but not least, the new Rheinmetall 

Defence organization 

will manage 

marketing activities 

centrally, develop 

strategic 

planning processes 

and integrate 

these in central 

business planning, 

and adapt 

management reporting 

to the new 

structure (see p.3). 

According to 

Rheinmetall CEO 

Klaus Eberhardt, 

the new organization 

will send out 

clear signals with 

regard to the 

group’s market profile and future 

strengths – both inside and outside 

Rheinmetall. “Rheinmetall Defence is 

synonymous with a strong partnership 

on international markets. Our new structure 

will boost growth, especially on markets 

abroad, and hence help to lastingly 

secure the future of our group. Simultaneously, 

it will concentrate responsibilities 

in the business units to which market 

segments, core competencies and 

technologies are clearly allocated.” 

Composing: René Dahlmanns 

Responsible: 

Peter Rücker 

Editor-in-chief: 

Rolf D. Schneider 

Grafic arts: Joachim Oszinda

Newsline 

Rheinmetall Defence with its new organization – providing a streamlined system portfolio tailored to global markets. 

Düsseldorf. Reorganized into six independent 

business units – Land 

Systems, managed by Klaus Sander; 

Weapon and Munitions, Achim Papperger; 

Propellants, Beat Steuri; Air 

Defence, Bodo Garbe; C4ISTAR, Luitjen 

Ennenga and Simulation and 

Training, Ulrich Sasse – Rheinmetall 

Defence has streamlined its system 

portfolio and will raise its profile on 

national and international markets. 

The business units that are responsible 

for their sales and P&L – as companies 

within an (overall) company – 

now combine the extensive product 

portfolio of Rheinmetall Defence with 

a clear focus on market aspects. 

IAI + Rheinmetall 

team up for Wabep 

Paris/Düsseldorf. In the presence of 

Dr. Peter Eickenboom, State Secretary 

in the Federal Ministry of Defence, and 

his Israeli counterpart, Pinchas Buchris, 

representatives of Israel Aerospace Industries 

Ltd. (IAI) and Rheinmetall Defence 

signed a far-reaching agreement 

at the Paris Airshow. The two firms are 

cooperating closely in the development 

of a reconnaissance and strike system 

network using loitering munition (LM) 

assets of the latest generation for operational 

ground forces. Within the scope 

of this network, an integrated capability 

to precisely locate and engage specific 

targets will be achieved. The alliance 

between IAI, distinguished by longstanding 

experience with loitering attack 

systems, and Rheinmetall De- 

Rheinmetall’s Technical Publications 

unit which specializes in TechPubs for 

military aviation, army systems/air vehicles 

and commercial aircraft will be 

managed as an independent company 

in future. A brief comment on the role 

and function of Rheinmetall Defence in 

future: The executive board of Rheinmetall 

Defence will concentrate even 

more strongly on the strategic orientation 

of the group’s defence arm, will 

manage the business units and national 

portals (Canada, Italy, Greece) strategi- 

fence, milestone to establish joint activities 

for new market opportunities 

and to combine the expertise from the 

two firms to the benefit of the customers. 

As the first program of the 

new cooperation, the companies 

plan to implement a weapon system 

for standoff-capable engagement of 

single and pinpoint targets (German 

abbreviation: Wabep), as desired for 

procurement by the Bundeswehr. The 

Wabep project envisages a network 

consisting of the tactical reconnaissance 

system KZO by Rheinmetall 

Defence acting together with Loitering 

Munitions offering strike capabilities 

by IAI. The two system elements 

(KZO and LM) are networked and deployed 

as an integrated system. The 

open system architecture will also allow 

networked solutions in conjunction 

with both current and future reconnaissance 

and effector elements. 

3 

cally and coordinate their interests. 

The business units and national portals 

– each being responsible for their 

sales and profits – will develop strategies 

for their target markets, define 

their business focus on defined market 

System portfolio focused 

segments, develop and tap sales markets 

and act as innovation drivers. The 

legal entities (companies) will provide 

the necessary infrastructures and supply 

administrative support and shared 

services that may be used by several 

business units. 

KSPG: Squeeze 

out now resolved 

Stuttgart/Neckarsulm. Kolbenschmidt 

Pierburg AG’s extraordinary 

general meeting resolved on 

June 26, 2007, in Stuttgart to transfer 

to majority stockholder Rheinmetall 

all shares owned by minority 

stockholders. In return for a 

€ 36.76 cash compensation per 

no-par share, the remaining free 

float of some 2.4 percent of Kolbenschmidt 

Pierburg stock will be 

transferred to Rheinmetall Berlin 

Verwaltungsgesellschaft mbH. Once 

the squeeze-out resolution has 

been entered into the Company’s 

Commercial Register, Kolbenschmidt 

Pierburg AG will cease to be 

listed but continue to operate in the 

legal form of a stock corporation. 

Composing: René Dahlmanns

Newsline 

Eckernförde naval base welcomes press 

Success factor simulator 

experienced first-hand 

Eckernförde/Düsseldorf. Stormy winds 

greet the journalists as they get off 

their bus – hiding behind upturned collars, 

the more experienced naval writers 

mumble that this sort of weather is 

typical of the Baltic coast. Rheinmetall 

has invited the media to the Eckernförde 

naval base – and a good dozen 

representatives of the European media 

have accepted the invitation to this little 

town to the north-east of Kiel. Eckernförde 

has a long tradition as a garrison 

town and was the home port of 

German submarines in the days of the 

German Kaiser. Today, Eckernförde is 

home to the 1st submarine flotilla and 

the Specialized Naval Response Forces 

(SEK M) as well as the training center 

for submarines (AZU). 

Having entered the U31, a submarine 

of the new class U212A, the guests 

soon notice that one thing is scarce on 

board a sub – and that is space. Once 

they have maneuvered themselves 

more or less elegantly through the entrance 

hatch, the visitors are confronted 

with a confusingly large number of 

pipes, tubes, cables and levers. Not a 

square inch of the submarine is wasted. 

The fact that submarine crews con- 

sider the U212A submarine particularly 

comfortable and spacious comes as 

quite a surprise to the first-time visitor. 

Yet compared to older subs like the legendary 

VIIc in World War II or the 206A 

class submarine first taken into service 

in 1974, the new vessel is in a different 

league in terms of operational performance 

and comfort on board. 

Some of the visitors wonder how 

sailors manage in such constrained 

conditions under stress – in darkness 

or in the case of water ingress – while 

the naval officer explains the delights of 

a second wet cell (after all, the 206A 

submarine only has one such compact 

“bathroom”). Commander Volker Brasen, 

the commanding officer in charge 

of the training center for submarines is 

quick to supply an answer: “Training is 

crucial for submarine crews, even more 

so than in the past since the new 212A 

submarines are technologically far superior 

to their predecessors and therefore 

also much more complicated, so 

that the demands on crew training are 

naturally higher.” 

Simulation systems from Rheinmetall 

Defence in Bremen are an essential instrument 

offering outstanding naval 

training conditions. Every single training 

aspect can be trained on the simulator 

from Bremen – with training covering 

areas such as basic knowledge, 

for example how to maneuver and 

steer the submarine, or practising the 

interaction of the commanding crew 

under realistically simulated conditions 

and training emergency situations 

on board, e.g. if a fire has broken 

out or there is water ingress. The systems 

developed by Rheinmetall engineers 

in Bremen provide a genuine re- 

production of the combat information 

center (CIC) – using original components 

identical to those used on board 

submarines. 

“The Bundeswehr attaches considerable 

importance to realistic training 

conditions, both in terms of the technical 

equipment of the simulators and 

with regard to the scenarios presented,” 

says Claus Bornhorst, Head of 

Sales Maritime and Process Simulation 

at Rheinmetall Defence in Bremen. Explaining 

the advantages of this ap- 

4 

Eckernförde, home to the 1st submarine 

flotilla of the German Navy and the submarine 

training center equipped with simulation 

systems from Rheinmetall Defence. 

proach, Bornhorst remarks: “Although 

the original components are more expensive 

than non-originals, the reproduced 

CIC in the simulator is identical 

to the original so that training is extremely 

realistic.” 

Those who should know whether this 

is true – namely the submarine crews 

themselves – agree fully with Bornhorst’s 

appraisal: the general opinion 

Submarines of the class 212A are rated as the most modern of their type. Advanced simulation technology from Rheinmetall 

in Bremen has been used for the development of the vessels and training of the submarine crews. 

is that simulator training meets all the 

requirements with respect to technical 

safety and tactical training, and operation 

and control are easy to learn in 

spite of the many different functions. 

Commenting on his experience with 

the simulator, lieutenant commander 

Lars Ruth, commander of the U31, 

adds: “It feels just like being on board 

the real vessel.” 

The close cooperation between the 

navy and Rheinmetall Defence in Bre- 


Photo: Presse- und Informationszentrum Marine 

Photo: HDW

Newsline 

Submarine simulators from Rheinmetall Defence are used to train submarine crews in Europe and throughout the world. 

Eckernförde naval base welcomes press 

Simulator experienced first-hand 

(Continued from page 4) the heart of the submarine – the revo- duced or heat generated could give 

men during simulator development lutionary fuel propulsion system. On away the position of the submarine. 

has definitely paid off. For instance, the face of it, the bulky matt-silver And fuel cells allow the submarine to 

several officers accompanied the proj- block looks rather inconspicuous but stay submerged for weeks at a time – 

ect in situ throughout the seven-year the insides of the power plant are something that only nuclear-powered 

development period of the system for something of a revolution. Not a word submarines were able to do in the past. 

the U212A in order to tailor the simula- on the performance – this is a closely Time to “resurface” for the journaltor 

exactly to the requirements of mod- kept secret but even the known facts ists who are clearly relieved to leave 

ern naval warfare. The un- 

the submarine through 

conditional focus on the 

the narrow hatch and 

needs of the customer is 

inhale some fresh air. 

also reflected by the ex- 

Although the hatches 

cellent reputation Rhein- 

had been left open, the 

metall’s simulation ex- 

air was not exactly fresh 

perts enjoy in this spe- 

inside the submarine. 

cialized market. The spe- 

An hour in the steel “cicialists 

are known for 

gar” was quite enough 

their dependability when 

for most of them, and – 

it comes to delivery 

having gained an in- 

dates, in fact they somesight 

into life on board 

times deliver ahead of 

a submarine – it is 

the agreed date. And 

highly unlikely that any 

thanks to their efficient 

of the journalists would 

quality assurance sys- 

readily swap with the 

tem, acceptance tests by 

sailors who spend up to 

the customer rarely give 

260 days a year at sea 

rise to rework. 

and are often sub- 

Crew members of the 

merged without daylight 

U212A are regularly trained 

for days and weeks on 

on simulators from Rhein- 

end. All agree that servmetall. 

The capabilities of 

ice on board a subma- 

experienced, older naval 

rine is an extreme situa- 

personnel are likewise 

tion demanding out- 

checked on systems from 

standing physical and 

Bremen. Commander Brasen points out are more than impressive: the propul- mental stamina which can only be as- 

that submarine crews are only released sion system operates practically silentsured by excellently trained personnel. 

for naval operations if they have the relely, and the only reaction product is dis- Sophisticated simulation systems from 

vant performance verifications. 

tilled water – which is not only environ- Rheinmetall Defence offer a small, al- 

On their tour of the submarine, the mentally friendly but also a perfect beit significant contribution towards 

media representatives are also shown camouflage. After all, any sound pro- this goal. Bernhard Schenk 

5 

Photo: HDW

he distinguishing feature 

of our defence customers 

is that they are always 

governmental institutions 

and organizations. For 

political reasons, these 

customers naturally primarily 

wish to place orders with their 

own national defence contractors. As 

soon as a contract is to be concluded 

with a foreign company, an offset requirement 

is raised. This is where the 

term ‘offset management’ comes into 

it,” explains Joost van Gemert, head of 

Corporate Offset Management at 

Rheinmetall Defence in Düsseldorf. 

Offset is a term used to describe a 

compensation business that is generally 

carried out on a foreign market. 

What may sound simple by definition 

is in fact highly complicated when it 

comes to the practical fulfilment of related 

obligations. Offset has many 

different facets. 

“Fundamentally, our foreign business 

partners want 100% offset. This 

can be achieved by purchasing from 

local suppliers in the country of the 

customer, by relocating production capacities 

or by transferring technological 

know-how,” explains van Gemert. 

Newsline 

By experience, the Dutch expert on 

offset has distinguished the following 

characteristics: “Different priorities 

are evident, depending on the country 

of origin of the partner. Whereas business 

transactions in Western Europe 

are considered purely from a political 

standpoint, the relocation of production 

capacities and hence the creation 

of local jobs are of prime importance 

in Eastern and Southern Europe. In 

the Middle East, offset is used to di- 

versify the local industry, for instance, 

by way of technology transfer.” 

The offset manager’s job is to secure 

the best possible advantage 

from offset transactions for his own 

company in negotiations that can be 

quite tough. Frequently negotiations 

will bring a commercial benefit to 

both parties. 

To give an example: in 2002 the 

Greek government placed a contract 

with the consortium consisting of 

Rheinmetall boosts first-quarter sales and earnings 

Howaldtswerke-Deutsche Werft AG 

(HDW) and Ferrostaal AG to modernize 

three type 209 submarines of the 

Hellenic Navy. The Greeks wanted a 

major part of the work with components 

supplied by HDW to be 

performed by the Hellenic Shipyards 

in Attica. While involving and 

strengthening the local industry (and 

thus securing jobs), this also meant 

that HDW was spared the relatively 

expensive return of the submarines to 

Offset management with 

focus on compensation 

6 

Germany – in other words, both parties 

benefited from the deal. 

It is not always easy to arrive at such 

results in an offset agreement, but 

old hands like Joost van Gemert know 

exactly what to do. Commenting on 

some of the key requirements for a 

successful offset manager, the man 

from Nimwegen says: “Apart from 

commercial skills and knowledge in 

financial management, experience is 

vital in this business.” 

Off to a sound start in fiscal 2007 

Düsseldorf. Düsseldorf-based Rheinmetall 

AG got off to a good start in 2007 

with first-quarter sales and earnings 

clearly increased. The 7-percent sales 

advance resulted in a definite EBIT improvement. 

As confirmed by Rheinmetall’s 

CEO Klaus Eberhardt at the annual 

stockholders’ meeting in Berlin, 

both corporate sectors, Automotive 

and Defence, achieved an appreciable 

expansion in business volume. For all 

of 2007, Rheinmetall expects continued 

growth and rising earnings. Eberhardt: 

“As expected, this fiscal year is 

off to a good start and so we are optimistic 

regarding the months ahead and 

look forward to solid growth and rising 

earnings at Automotive and Defence.” 

In the first three months of 2007, 

Rheinmetall generated seven percent 

added sales, up from € 852 million in 

the first quarter of 2006 to € 912 million. 

This resurgence in business was 

all the more evident in terms of order 

intake which soared 35 percent to € 

1.1 billion (up from € 843 million). As 

a consequence, order backlog for the 

group at just under € 3.4 billion is 17 

percent higher than a year ago (€ 2.9 

billion). 

The group’s EBIT for the first quarter 

hiked from € 34 million to € 44 million; 

the EBIT margin improved accordingly 

from 4.0 to 4.8 percent. EBT leaped from 

€ 23 million to € 31 million while net income 

advanced by € 5 million to € 22 

million. Earnings per share (EpS) after 

minority interests of € 1 million climbed 

from € 0.45 to € 0.60. 

The Automotive sector continued on 

the path of growth in the first three 

months of this year. Despite ongoing 

price pressure and unfavorable exchange 

rates, sales mounted three percent 

to € 583 million, again outpacing 

stagnant world auto production (down 

0.2 percent in the quarter). 

Automotive’s EBIT for the first quarter 

rose six percent to € 34 million. The 

chief reasons for this growth were the 

profit contributions from added sales. 

The EBIT margin inched up from 5.7 to 

5.8 percent. 

At € 328 million, the Defence sector 

reported its highest-ever sales in the 

first quarter, the year-earlier volume being 

exceeded by 15 percent. Above all, 

sharp gains were recorded by the Land 

Systems and Weapon Munition divisions. 

Order intake in the first three 

months of 2007 reached € 550 million, 

almost double that of the previous 

year’s € 282 million. The largest contributor 

was the Air Defence division 

which booked orders for just under € 

300 million in the first quarter of 2007. 

With sales up to this extent, Rheinmetall 

Defence’s EBIT in what is a normally 

weak quarter, showed a significant 

gain of € 3 million to € 11 million. 

The EBIT margin rose commensurately 

from 1.0 to 3.4 percent. 

Assuming a stable global automotive 

climate and a constant development in 

defence expenditures, the Rheinmetall 

group is sticking to its target of an average 

annual growth rate of at least five 

percent. Based on sustained solid operating 

performance by its two sectors, 

Automotive and Defence, Rheinmetall 

expects to close fiscal 2007 with 

broadly improved earnings.

Newsline 

Joost van Gemert heads Corporate Offset Management at Rheinmetall Defence 

Allowing for offset requirements 

Düsseldorf. As head of Corporate Offset 

Management, Joost van Gemert is 

breaking new ground in the Rheinmetall 

group. Not only did the 45 yearold 

Dutchman take on a new post with 

the Düsseldorf-based group at the beginning 

of 2007, but the function 

which reports directly to the board 

member Helmut Merch was only recently 

created to take into account the 

growing importance of offset management. 

“Exports are gaining in significance 

as a source of growth for Rheinmetall 

Defence. To secure our success 

on foreign markets, we need to look after 

the needs of our customers. Our 

business partners abroad should have 

a central contact within the group for 

all their concerns,” says van Gemert. 

In the past, offset management was 

the sole responsibility 

of the respectivebusiness 

unit managers. 

“In creating 

the central 

function of a 

Corporate Offset 

Manager we 

have now closed 

the gap: I consider 

myself as a 

sort of liaison 

and coordination 

officer for 

my colleagues 

from the various 

Defence activities 

(Susanne 

Heemsath, 

Simona Vöge, 

Karl-Heinz 

Platzke, Thilo 

Sachau, Dirk tho 

Seeth, Wolfgang 

Wunsch, Peter 

Tömp, Regina 

Beyer, Raphael Jespers, Bo Larsson and 

Gerda Schalch-Bolliger), and as a first 

contact for our customers,” notes van 

Gemert, adding: “It is not without reason 

that offset management is on a par 

with aspects like financing and legal issues; 

after all, offset is hugely important 

for a defence contractor.” 

Joost van Gemert, father of four 

sons, is a teamworker. “Offset management 

will not be transformed into 

a one-man-show simply because the 

new function has been created at 

Rheinmetall. I will always try to find 

the best possible solution in close 

cooperation with my colleagues at 

Rheinmetall Defence.” 

The Dutchman is enthusiastic about 

the working conditions and excellent 

organization at Rheinmetall – and 

praises traditional German values in 

this connection. “Generally speaking 

the Germans are well organized and 

this is especially true for Rheinmetall 

where competencies are clearly 

distributed, people work with a clear 

target in mind, and communication 

lines are short and effective. Besides, 

I am granted direct access to the responsible 

executive management 

and given sufficient freedom to do my 

job.” He adds: “To be honest, I actually 

prefer working in Germany to the 

Netherlands.” 

Coordination function: Joost van Gemert, head of Corporate Offset Management. 

And he knows what he is talking 

about: Joost van Gemert spent ten 

years working as global sales manager 

for Lucent Technologies in Hilversum, 

a global manufacturer of communication 

technology. In the course 

of his work there he not only got to 

know the ins and outs of business life 

in Asia, North and South America, Europe 

and South Africa but also established 

a network of good contacts. 

“Only about 600 persons are involved 

in offset management worldwide so I 

suppose you could compare them to a 

7 

big family. I know more than half of 

them personally. Since trust is crucial 

in our business, a good personal relationship 

with colleagues from our 

business partners is invaluable.” 

Joost van Gemert who takes an interest 

in old-timers and is an avid sailor 

and tennis-player in his spare time, 

finds his job at Rheinmetall particularly 

challenging – also because he sees 

the group as becoming Europe’s leading 

supplier of technology for the 

ground forces. Looking ahead, the 

experienced manager is convinced 

that the company with its strong tradition 

will be successful: “In a few 

years time, Rheinmetall should be 

able to achieve in the land systems 

and defence electronics sector what 

EADS has already achieved in the 

military aeronautical 

field. 

The preconditions 

for this 

are excellent: 

Rheinmetall 

has the technologies, 

the 

resources and 

the support of 

the governmentalinstitutions, 

and it is 

ambitious 

enough to attain 

these targets,” 

says the 

experienced 

manager. 

Joost van 

Gemert intends 

to play his part 

in making this 

success a reali- 

Photo: Danetzki + Weidner 

ty, and he has 

already developed 

clear ideas 

for the future: “I aim to improve coordination 

between our Automotive and 

Defence sectors for offset deals in future. 

Formerly, offset business in these 

two sectors was largely planned independently. 

I will do my best to find solutions 

on group-level in future.” 

The offset manager with an MBA from 

Rotterdam University is currently working 

on a new offset guideline for the 

group, and is actively involved in the 

fulfilment of offset obligations in Scandinavia, 

the Netherlands, Greece and 

the Middle East. Bernhard Schenk

Photo: Andrea Schreier 

Newsline 

Newsline interview with managing director Michael Heinzemann, Rheinmetall Hellas 

A local gateway for 

Rheinmetall products 

Athens/Düsseldorf. Rheinmetall Defence has had its own subsidiary in Greece 

since March 2004 when Rheinmetall Hellas S.A. was officially established. In taking 

this step, the Düsseldorf-based group which has a long tradition in successful cooperation 

with the Greek armed forces and enjoys an excellent reputation in the country, 

underlined the significance of this market – a step that has turned out to be very 

successful, as pointed out by managing director Michael Heinzemann (51) during 

an interview with Newsline. Headquartered in the Kolonaki district of Athens, the 

company has three locations (Athens, Komotini and Mandra) with a total of 10 employees. 

Both from a professional and a personal standpoint, the establishment of 

Rheinmetall Hellas presented quite a challenge to Kassel-born Heinzemann, a graduate 

in electrical and industrial engineering, and an ex air force officer (1978 to 1986). 

Newsline: A brief glance at the shareholder 

structure of Rheinmetall Hellas 

– with Rheinmetall Defence Electronics 

GmbH of Bremen, Rheinmetall Waffe 

Munition GmbH of Ratingen, Kielbased 

Rheinmetall Landsysteme 

GmbH and Oerlikon Contraves AG of 

Zurich, Switzerland, each holding a 

25% stake in the company – makes 

one thing perfectly clear: the Defence 

subsidiary is operating in a market that 

represents the entire range of Rheinmetall 

activities. So, in reality, this is 

one business working on behalf of all! 

Heinzemann: Yes, that is correct. In 

view of the successful market activities 

of Rheinmetall and the good standing 

of our products, and also due to growing 

competition and the expectations of 

the Greek customer regarding local industrial 

participation and offset, Rheinmetall 

decided in 2003 to enhance its 

direct commitment on the Greek market 

and be closer to the customer. 

Newsline: And you were charged with 

establishing the Greek subsidiary? 

Heinzemann: Indeed, in March 2004 

Rheinmetall Hellas was created as a 

stock corporation, acting as the local 

gateway of Rheinmetall Defence for the 

Greek customer. The shareholders are 

the four companies just mentioned. Besides 

assisting and coordinating sales 

activities of the Defence group, our 

main task is to carry out project man- 

agement, development and maintenance 

tasks in order to increase the local 

value-added and generate offset. 

Newsline: Tasks which are clearly being 

performed with considerable success! 

Heinzemann: Rheinmetall Hellas got 

off to a good start and has already produced 

a co-production volume and offset 

worth tens of millions of euros. 

Newsline: Which projects does this 

involve? 

Heinzemann: To give some recent examples: 

the delivery of the fire control 

Well positioned: Michael Heinzemann, managing director of Rheinmetall Hellas. 

system, the Inochios command system 

and the weapon system L55 for the 

Leopard 2-HEL main battle tank, the 

operational readiness of the Leopard 

2A4 main battle tank handed over to 

the Hellenic Army and the upgrade of 

the Velos air defence system. The Greek 

armed forces plan to invest billions in 

defence systems in coming years. 

Newsline: Do you think Rheinmetall 

stands good chances of securing orders 

from Greece? 

Heinzemann: Yes, I think our chances 

are good, especially as a lot of our 

products are ideally suited to meet the 

requirements of the customer. Given 

the market potential and the attractiveness 

of our product portfolio, it is hardly 

surprising that the Greek armed 

forces are among our key account customers. 

8 

Newsline: Nonetheless, the Greek 

market has its very own distinctive 

characteristics including the call for 

“local content” and “offset”. What exactly 

does this mean? 

Heinzemann: When military equipment 

is procured from abroad, the 

Greek government demands the industrial 

involvement of the local defence 

industry, the so-called industrial participation. 

The underlying aim is to return 

some of the tax money invested 

abroad to create local added value, and 

thus to secure jobs in Greece. 

Newsline: When placing orders with 

foreign businesses like Rheinmetall…. 

Heinzemann: …..the Greek government 

also requires so-called offset 

business. Essential criteria determining 

the placement of an order are not 

just the correct product qualities and 

low prices, but also attractive co-production 

and offset programs. 

Newsline: Is Rheinmetall Hellas a 

perfect example of the internationalization 

of Rheinmetall Defence’s business 

activities? 

Heinzemann: Yes, I would say so. The 

company is registered in Athens, certified 

in accordance with ISO 9001:2000 and 

approved by the Greek armed forces as a 

security-checked local supplier. The 

Rheinmetall Hellas team already contributes 

significantly toward the targeted 

increase in defence exports to 70 percent. 

Newsline: Wolfgang Kühn (see articles 

on pages 16 and 17) who joined you in 

the middle of 2006 is someone who has 

ventured abroad in this day and age of 

globalization. In a way, the establishment 

and management of a foreign company 

was a terra incognita for you, too. 

On a more personal note, do you feel you 

have benefited from this? 

Heinzemann: Despite all the harmonization 

hitherto achieved in the European 

Union, the job here demands an 

intensive understanding of local specificities, 

especially in terms of corporate 

and tax law. 

Newsline: Is that all? 

Heinzemann: Of course not. A broad 

knowledge of all business processes is 

needed which, in turn, calls for an understanding 

of many aspects for which a larger 

business usually has large numbers of 

specialists. The combination of a new career 

challenge with daily life in a Mediterranean 

culture and society has broadened 

my horizon and is what makes this assignment 

abroad so appealing. 

Newsline: In other words, you would 

do it again? 

Heinzemann: Very definitely!

Photos (3): Thomas Klink 

Newsline 

Typical tasks carried out in the new Applications Laboratory: Assistant chemist Andreas Klier fills the pressure reactor with a 

solution of the special product being tested (left). Klier’s colleague, Renate Mittermaier is seen here adjusting the cold immersion 

bath circulator, which supplies cold water to the stainless steel coolers of the solution circulation apparatuses. 

Nitrochemie Aschau weighs in with interval scale technology from Mettler-Toledo 

Precise indicator of product quality 

Aschau. Nitrochemie Aschau GmbH 

(NCA) of Aschau am Inn is the first chemical 

company in Germany to use software-supported 

interval scale technology 

from Switzerland’s Mettler-Toledo 

(MT). Installed in the Applications Laboratory 

of the company’s Technology Center 

(in the chemical intermediates production 

section), it is used for a special 

product – a systematic response to the 

extremely stringent 

quality requirements 

of NCA’s customers. 

Moreover, the company 

can apply the 

analysis know-how 

gained in this context 

to other products too. 

Dr. Karl-Christian 

Bart, 34, operations 

assistant in the NCA 

Chemical Intermediates 

department, explains 

the physicalchemical 

background 

of the measurement 

process used in the 

state-of-the-art MT 

scale technology: 

“What we’re measuring 

is the consumption 

of a gas taken 

from the buffer container, and subsequently 

transformed in a mini pressure 

reactor with a catalytic solution made by 

Nitrochemie. We do this with the help of 

interval scale technology and a new 

kind of precision scale from Mettler- 

Toledo, which is mounted on top of the 

buffer container. The weight data are 

then transmitted online via our network 

to a server-client-based software (Lab X 

balance), and stored in a connected 

database.” For quality assurance purposes, 

the weight data generated in this 

way can be quickly accessed in electronic 

form at anytime, anywhere. 

As Dr. Bart goes on to explain, gas 

consumption per unit provides a direct 

indication of a chemical product’s reaction 

kinetics, and thus its quality: 

“By comparing the consumption detected 

by using a standard catalyser, 

we can determine the activity of the 

manufactured product.” (“Activity” is 

the measure for the effective concentration 

of atoms, ions and molecules in 

a solution.) 

Just to explain: Kinetics is a category 

of physical chemistry; it deals with the 

temporal sequence of chemical reactions 

(reaction kinetics) or physicalchemical 

processes (e.g. diffusion, material 

precipitation on surfaces). Anoth- 

9 

er aspect of reaction kinetics is the investigation 

of reaction mechanisms. It 

is important for controlling chemical reactions 

(e.g. influencing material conversion 

through temperature, concentration, 

catalysers or the type of reaction 

control). 

What may sound very scientific here 

has a decisive impact on performance 

and reputation. Dr. Ludwig Waldmann, 

head of Production 

Chemistry 

at Nitrochemie, 

explains the 

most important 

market-specific 

benefits of interval 

scale 

technology: 

“The stringent 

quality requirements 

of our 

customers with 

regard to this 

product mean 

that we have to 

have dependable, 

assured 

results of analysis 

that are reproducible 

at 

any time. And 

this is exactly what the Mettler-Toledo 

scale technology lets us do. What’s 

more, it shows that we’re on the cutting 

edge, which is a definite confidence 

booster for our customers. Now 

we’re able to evaluate product quality 

immediately, which has a positive impact 

on flow-through times in production”. 

Moreover, the new analysis 

know-how can be put to use in other 

products as well. 

Reliable and reproducible analysis: Dr. Ludwig Waldmann (l.), head of Production 

Chemistry at Nitrochemie Aschau GmbH, and his assistant, Dr. Karl-Christian 

Bart, are using state-of-the-art interval scale technology from Mettler-Toledo (MT).

Newsline 

Fire Control Unit FCU 40mm HV from Rheinmetall Defence in operation (left): the distance is measured by means of the laser 

range-finder, other sensors measure the relevant influence factors like air pressure, temperature, target line angle and canting. 

These values and the known ballistics are used to compute and automatically set the angle of elevation. The gunner therefore always 

has the target at the center of the angle of view. Night mission: The new fire control unit is also available as a smaller and 

lighter unit (as a fire control visor) – and is particularly well suited for hand-held weapons and shoulder-fired anti-tank weapons. 

Fire control technology from Rheinmetall Propellants unit 

Enhancing the efficiency of ABM 

Stockach. Advanced ammunition concepts 

– like the new 40mm air burst ammunition 

(ABM) for the grenade launcher 

of RWM Schweiz AG – need equally 

advanced technologies to fire the ammunition 

as efficiently as possible. Situated 

near Lake Constance in South Germany, 

Stockach-based Oerlikon Contraves 

GmbH (OCD) has set new standards 

in fire control technology, ideally 

complementing ABM systems to further 

enhance the efficiency of ammunition 

concepts. This has been rendered possible 

by modern fire control systems of 

the type FCU 40mm HV (High Velocity), 

allowing the projectile to be programmed 

with innovative technologies 

and hence permitting the optimized deployment 

of high-tech ammunition. 

Gerhard Wieland, head of mechanical 

and electrical design and responsible 

for fire control units at Oerlikon Contraves 

GmbH: “Fire control is an essential 

prerequisite to program ABM ammunition. 

The destruction of the projectile 

at a defined distance means that 

targets located inside or behind protective 

covers can be engaged, e.g. in 

trenches or behind walls.” 

According to 50 year-old Wieland 

from Höri, a peninsula at the western 

end of Lake Constance, this is one of 

the main advantages of the combination 

of modern ABM ammunition with 

advanced fire control systems. Furthermore, 

the fire control unit FCU 40mm 

HV offers superior hit accuracies in 

daylight and higher hit rates at night. 

Distances are measured by laser 

range-finding, sensors measure the 

other relevant influence factors – air 

pressure, temperature, target line angle 

and canting. Commenting on the 

basic concept, Wieland points out: 

“These values and the known ballistics 

are used to compute and automatically 

set the angle of elevation. The gunner 

therefore always has the target at the 

center of the angle of view.” The other 

sensors like the laser or terrain angle 

sensor are likewise orientated precisely 

to the target. “This allows a direct 

target change from one target to the 

next and quick engagement. Most competing 

products have to be restored to 

the neutral position when a new target 

is chosen.” 

The flight time calculated by the fire 

control system is inductively sent to the 

projectile via a coil – contrary to conventional 

products where the values 

are radio-transmitted after the projectile 

has left the barrel. Says Wieland: 

“Our fire control units don’t need a radio 

link which is easily jammed.” 

OPI award for 

two years running 

Hiroshima/Neckarsulm. For the 

first time ever, the Japanese facility 

KS Kolbenschmidt K.K. has succeeded 

in winning the OPI award for two 

years running — in 2005 and 2006. 

In fact, this represents an outstanding 

achievement since the location 

has once again managed to top its 

excellent year-earlier performances. 

It was only in 2003 that KS Kolbenschmidt 

took over from Mazda Motor 

Corporation the piston production of 

10 

Influence factors which should not be 

underrated are the air pressure and air 

temperature as they change the air 

density and also aerodynamic drag. An 

exact measurement of the target parameters 

is therefore crucial. The laser 

range-finder measures the target range 

with an accuracy of ± 2 meters. Wieland 

explains why this accuracy is so important: 

“At a target range of 1000 meters, 

an air pressure reduction of only 100 

hPa – corresponding to a terrain elevation 

of 1000 meters – increases the firing 

distance by 15 meters; a temperature 

increase of 25 degrees causes a 

similar deviation.” This means that 

OCD’s modern fire control systems 

which are capable of exactly determining 

and using the target parameters are 

extremely well suited for use in conjunction 

with ABM ammunition, and 

are – in this combination – therefore 

particularly appropriate for existing 

tactical scenarios. 

Microtechno Corporation, Hiroshima, 

Japan. The acquiree had since 1972 

been manufacturing pistons and other 

precision parts for the automotive 

and further sectors of industry. 

At the time of takeover, sales 

added up to around € 20 million and 

the workforce totaled 120. Today, 

around 220 employees generate 

sales just short of € 38 million 

(2006) with the production of pistons 

for auto engines, light- and 

medium-duty commercial vehicle engines 

as well as assemblies and 

built-in engines for Hino Motors, 

Subaru, Mazda, Shibaura, and Iseki.

Neckarsulm. With revenues of € 707 million, KS Kolbenschmidt 

GmbH again raised sales in fiscal 2006, topping its 

year-earlier figure by an emphatic 10.8 percent. Annually, 

over 6,000 employees at sixteen plants across the world (including 

licensees) develop, produce, and market pistons for 

passenger and commercial vehicle spark- and compressionignition 

engines. The corporate headquarters in Neckarsulm 

has been producing pistons now for over 80 years. Founded 

in 1910 as Karl Schmidt GmbH by Karl Schmidt (son of Christian 

Schmidt, the founder of NSU-Motorenwerke), the company 

first started building its aluminum pistons back in 

1920. Today, the Neckarsulm facility’s workforce of over 

1,250 plus presently 44 apprentices manufacture pistons 

Newsline 

State-of-the-art steel piston production at KS Kolbenschmidt in Necksarsulm 

Ultimate performance properties 

here are basically two 

types of steel pistons: the 

articulated-shaft type consisting 

of steel plus aluminum 

and the all-steel 

monobloc piston. Both varieties 

are manufactured 

by KS Kolbenschmidt: the former at the 

U.S. plant Karl Schmidt Unisia Inc., 

Marinette, and the latter, the all-steel 

variety at Neckarsulm. 

Due to their ability to address the 

toughest challenges in terms of durability 

and robustness, all-steel pistons engineered 

for ultimate performance, are 

presently gaining ground worldwide. The 

design developed 

by the Neckarsulm 

engineers is based 

on a shaft-guided 

piston with a long 

shaft supported at 

the top edge. The 

resulting linearity 

leads to good 

acoustic properties 

(cavitation) 

while allowing ample 

design latitude 

in the piston ring 

zone which is im- 

portant in terms of 

Photo: Thomas Klink 

oil consumption 

and blow-through 

volume properties. 

Effective temperature control is assured 

by a sealed coolant chamber. 

Moreover, oil consumption has been 

reduced by 55 percent compared with 

today’s standard-production articulated-shaft 

pistons. The friction-welded 

design and the use of quenched and 

tempered steel (for high tensile and 

endurance strength) allows peak pressures 

of up to 250 bar. 

It was as early as the start of 2006 that 

steel pistons first went into series production 

highly successfully following an 

extremely brief development phase. In 

order to cater for the highly buoyant order 

situation as a result of the business 

from the chief customer for steel pistons 

(DAF Trucks N.V., see also Commercial 

Vehicle of 2007 with Pistons from 

Neckarsulm), the Neckarsulm location 

invested in a new steel-piston production 

line. 

The manually loaded line used hitherto, 

was supplemented by a fully automated 

facility for all-steel pistons, subsequently 

commissioned in September 2006. “This 

ultramodern production line is capable of 

turning out annually over 180,000 pistons 

for pressures of up to 250 bar,” explains 

Michael Janssen, in charge of Project 

Management and Process Development 

for the Pistons Project. 

Before, however, the finished steel pistons 

are shipped out to customers a series 

of sophisticated machining steps 

needs to be carried out. The raw part is 

11 

from either aluminum or steel. Alongside the production of 

aluminum pistons for spark- and compression-ignition passenger 

car engines, the Neckarsulm plant since has been 

very successfully building steel pistons for commercial vehicle 

engines since the start of 2006. The same location 

also develops, produces and markets a range of large-bore 

pistons that go into a variety of stationary engines, marine 

diesels, and locomotives. With the commercial vehicle market 

presently flourishing and manufacturers’ order books 

brimming, sales by this product group have in the meantime 

climbed to 15 percent of total revenues. A further highlight 

is the fully automated production line for steel pistons 

recently successfully commissioned at the Neckarsulm plant. 

Neckarsulm-based Kolbenschmidt launched its highly successful steel piston production 

for commercial vehicles. Pictured here: Gerhard Luz (l) and Michael Janssen. 

supplied by the foundry as a premachined, 

heat-treated component. The 

pallet-mounted parts then move onto KS 

Kolbenschmidt’s fully automated conveyor 

belt which routes them to the 

downstream machining operations. 

The pistons are then turned/milled for 

fitting-in accompanied by the premachining 

of the piston pin hole, and the finishmachining 

of the piston crown. Following 

the turning of the piston ring groove, the 

pin hole is precision bored at the heart of 

the production line by a machine specially 

developed for this purpose by Kolbenschmidt. 

The coolant passage is then 

sealed by laser welding. Also, the pistons 

are given their 

final surface profile 

and exterior geometry 

before, having 

been deburred and 

cleaned, they undergo 

a special surface 

finish. Finally, quality 

inspection and 

identification coding 

are carried out. It 

is a part of KS strategy 

that the all-steel 

pistons are readied 

for shipment in the 

production line. 

In order to address 

international 

markets and the 

demands of global customers, a further 

automated production line has already 

been ordered and will be taken 

into operation before year-end 2007. 

The uptrend in the steel-piston segment 

is reflected, moreover, in several 

development projects commissioned 

by other commercial vehicle customers. 

In all, therefore, KS Kolbenschmidt is 

facing a bright future in this segment.

Newsline 

Pierburg GmbH’s Emission Control business unit powerfully positioned worldwide 

A talented specialist 

in emission reduction 

Neuss. For almost 18 months now, Pierburg’s former Emission Control product 

group has been operating as an autonomous profit-center style business 

unit. With altogether four locations outside of Germany in Lanciano, Italy, Ústí 

nad Labem, Czech Republic, Abadiano, Spain, and Fountain Inn, USA, as well 

as three German plants in Neuss, Berlin and Hartha, this unit is a globally 

successful specialist in all aspects of automotive emission reduction, specifically 

nitrogen oxides (NOx) and hydrocarbons (HC). Pierburg’s emission-reduction 

systems, particularly the various exhaust gas recirculation (EGR) 

valve options, are nowadays employed by nigh all the international carmakers. 

sman Sari, Senior Manager 

Development for 

EGR (automobiles), explains 

the available 

product range: “Our 

lineup comprises solutions 

for both sparkand 

compression-ignition engines, for 

automobiles and trucks. In all these instances, 

the EGR valve in all its manifold 

options is our star product. Irrespective 

of whether pneumatic, electric 

or motor actuated, with or without 

bypass, with or without the new cooler 

unit, over six million valves are sold annually 

to the international automotive 

OEMs, representing indisputable proof 

of their star quality. We are in a position 

to offer our customers precisely 

what they need, from rugged, generalpurpose 

solutions to components em- 

bodying maximum controllability and 

dynamic response. Those customers 

combining our EGR valves with other 

Pierburg options such as the aluminum 

cooler or the exhaust-gas flaps for regulating 

pressure differences, achieve 

further marked reductions in nitrogen 

oxide emissions.“ 

Javier Egurrola, Head of the Emission 

Control unit, adds: “Besides the recirculation 

of exhaust gas, the use of secondary 

air systems is another proven 

option for lowering gasoline engine 

emissions. Injecting air into the exhaust 

gas manifold results in an 

exothermal oxidation of the hydrocarbons 

still remaining in the exhaust gas 

which, in turn, leads to a significant reduction 

in these emissions and also in 

carbon monoxides. A spin-off: the heat 

released by this reaction assists the 

downstream catalytic converter in 

reaching more readily its operating 

temperature, essential in achieving further 

emission reductions. Here, too, we 

have the suitable systems.“ 

Dr. Holger Paffrath, Senior Manager Development 

for Secondary Air Systems, 

explains: “Besides our standard classic 

comprising a low-noise secondary air 

pump shielded against spray and dust 

by a welded plastic housing and driven 

by an encapsulated D.C. motor, we have 

since 2003 also been offering a larger, 

low-noise secondary air pump able to 

feed sufficient secondary air to both high 

capacity gasoline engines and vehicles 

12 

with engine compartments having limited 

installation space. Either pump can 

be mounted to the engine or the body of 

the car. For the latter option we also supply 

a modular assembly kit comprising a 

clamp and absorbers to eliminate structure-borne 

noise.“ 

Paffrath goes on: “To avoid an exhaust 

gas backflow into the secondary air 

pump or its immediate environment as 

well as any uncontrolled influx of air into 

the exhaust system outside of secondary-air 

operation, we are also offering 

three different types of secondary air 

valve: firstly, an on/off check valve (remarkable 

for its low pressure-losses); 

secondly, our vacuum-independent secondary 

air valve that opens automatically, 

depending on the pressure generated 

by the secondary air pump and can 

therefore dispense with an electric actuator 

and all the vacuum hose lines and, 

thirdly, our electric secondary air valve 

that combines the advantages of the 

check valve with those of the secondary 

air valve while offering the added benefits 

of rapid opening/closing times and 

ample opening force. This electric secondary 

air valve can also been fitted with 

an integrated pressure sensor to address 

future requirements regarding onboard 

diagnosis (OBD II) and electronic 

on-board diagnosis (EOBD).“ 

The third product group comprises 

the already-mentioned exhaust-gas 

flaps. These flaps are not only used to 

reduce emissions, they also enhance 

vehicle drivability. Dr. Karl-Heinrich 

Talented specialists in emission reduction: Javier Egurrola (r.) and Osman Sari seen here with a motor-actuated EGR valve. 

Lösing, Senior Manager Development 

for EGR valves (trucks) and for exhaustgas 

flaps, comments: “In the case of 

emission control, these flaps can be 

combined with DeNOx catalytic converters, 

in other words converters for 

abating nitrogen oxide emissions. By 


Photo: Markus J. Ferger

egulating the exhaust gas inflow, depending 

on temperature, the flap ensures 

that the converter is more or less 

always working to optimum efficiency, 

a factor that also extends its servicelife 

considerably.” 

“Another example,” continues the 58year-old 

exhaust gas specialist “is to 

ensure compliance with future EURO 5 

standards which specifically in the case 

of diesel engines increasingly call for 

low-pressure EGR for achieving an especially 

high rate of recirculation. There 

is also the sequential turbocharger feature, 

of growing significance on diesel 

engines, where an additional smaller 

turbocharger ensures that the power 

boost available is delivered even at low 

engine speeds. 

Last but not least, 

noise control on 

upscale vehicles 

is a factor for consideration;various 

sound profiles 

are selectable, 

from a muffled 

to a throaty 

sports car style 

roar.” “Neither 

should we forget,” 

adds Lösing, 

“the EGR 

valves for commercial 

vehicles 

that work at temperatures 

of up to 

180° C under punishing 

conditions 

of aggressive exhaust 

condensate 

and pressure 

surges as steep 

as 1,300 bar/sec. These valves are necessary 

to ensure that trucks and buses, 

too, can comply with current and future 

emission standards.” 

Javier Egurrola continues: “What really 

distinguishes us from competition is 

the know-how and experience of our 

employees accumulated through more 

than 30 years of market presence, and 

enabling us nowadays to mix and 

merge a diversity of components (e.g. 

EGR valve with bypass or the new cooler), 

thus creating new, innovative and 

nonetheless rugged products matching 

the highest standards of quality and 

customer demands. Our entire team as 

well as their profound knowledge re- 

Newsline 

Pierburg GmbH’s Emission Control business unit powerfully positioned worldwide 

A specialist in emission reduction 

(Continued from page 12) 

garding our products and present and 

future emission control techniques 

and, not least of all, the expectations 

and needs of our customers—these are 

the key factors that set us apart from 

competition.” 

As to the future, the Emission Control 

business unit perceives itself as strategically 

well positioned. Egurrola: “The 

advantage of having an autonomous 

profit-center style business unit is that, 

unlike previously, it assumes full responsibility 

for such factors as design, 

timing, profit and quality throughout a 

product’s lifecycle. Secondly, the business 

unit is focused on a specific product 

sector and can leave the development 

of tomorrow’s products to the Advanced 

Engineering department. This, 

Powerfully positioned product portfolio: Dr. Karl-Heinrich Lösing (l.) Senior Manager 

Development EGR (trucks) and Exhaust-Gas Flaps and his Secondary Air Systems 

coworker, Dr. Holger Paffrath, with the latest high-temperature exhaust gas flap. 

in turn, results in a more efficient division 

of labor. And, finally, a structure 

such as this functions according to a 

global vision that starts with group 

guidelines and is reflected in the global 

coordination and meshing of activities 

within the various departments 

and branches with a view to achieving 

a common goal. All this gives us the energy 

to confidently cope with future developments 

and actively help shape 

the future of the automobile.” 

Pierburg expert Lösing has a quite 

specific notion of how this future will 

shape out. “We can be certain that in 

future the entire area of engineering 

development and simulation will play a 

13 

much more predominant role in the relationship 

between the carmakers and 

their suppliers. Also likely to undergo 

considerable change are the requirements 

regarding flexibility in terms of 

engineering design changes and the 

perception of the engine and the auto 

as complete systems in themselves.” 

Adds Sari, his engineering colleague: 

“In future, our customers will require 

even more than today technical support 

in the design and test phases. 

They will also expect us to park on their 

premises one of our application engineers 

for direct consultation.” 

A glance at the list of projects currently 

in the pipeline indicates that the 

Emission Control business unit is focusing 

its product range closely on futurerequirements 

and emission 

standards. 

Alongside a new 

generation of EGR 

valves, we find 

such undertakings 

as EGR 

valves for commercial 

vehicles 

or for exceptionally 

high flow 

rates, others with 

an integrated bypass 

function or 

else for low-pressure 

operation. A 

further item on 

the agenda is an 

optimized sec- 

Photo: Markus J. Ferger 

ondary air sys- 

tem. 

Javier Egurrola 

concludes: “The 

new business 

unit set-up is a sustainable system to 

help us achieve present and future performance 

targets. Since its conception 

we have attained over 30 percent 

added productivity through the resulting 

changeover in process layout and 

materials flow. Moreover, through improved 

First Time Quality (FTQ) we have 

managed to upgrade our Overall Equipment 

Efficiency (OEE), in some cases 

by over 50 percent. Measured against 

our business plan we have also shown 

a 17-percent sales boost. From such a 

promising baseline we are certain of 

having laid for ourselves a sound foundation 

and hence look forward to solid 

business progress in the years ahead.”

Rheinmetall buys 

Zaugg Elektronik 

Düsseldorf. The Rheinmetall 

group continues to expand its defence 

technology portfolio, taking 

up a 100% stake in Zaugg Elektronik 

AG of Lohn-Ammannsegg, 

Switzerland, effective 1 January 

2007. Jointly owned, Zaugg Elektronik 

was previously controlled 

via a holding company. 

The takeover represents another 

important strategic step in Rheinmetall’s 

consolidation of the European 

land systems sector, 

strengthening the group’s status 

as a single-source supplier of 

medium- and large-caliber ammunition. 

As well as widening its 

range of products, the acquisition 

reduces Rheinmetall’s dependence 

on external suppliers and 

opens up new sales opportunities. 

An internationally renowned manufacturer 

of military fuse systems, 

Zaugg Elektronik AG supplies numerous 

European and North American 

defence contractors with 

highly specialized fuses for medium- 

and large-caliber ammunition. 

Newsline 

The Swedish Defence Materiel Administration has awarded Rheinmetall Waffe Munition GmbH an order for Birdie 118 aircraft 

decoys for Swedish Air Force helicopters. The decoys will be delivered in 2007 and used in future international operations. 

Sweden contracts 

Birdie 118 system 

Stockholm/Düsseldorf. The Swedish 

Defence Materiel Administration 

has awarded Rheinmetall Waffe Munition 

GmbH an order for Birdie 118 aircraft 

decoys for Swedish Air Force helicopters. 

The decoys will be delivered 

in 2007 and used in future international 

operations. 

Birdie, an acronym for “Bi-spectral 

InfraRed Decoy Improved Efficiency”, is 

a proprietary development of Rheinmetall 

Defence. The Birdie represents a 

new departure in protecting helicopters 

against modern infrared-guided 

surface-to-air and air-to-air missiles. It 

is also uniquely effective in countering 

shoulder-launched Manpads. 

It can be used in any 1x1” Nato standard 

dispensing system for aircraft 

self-protection, and is also available 

in a 2x1” caliber version, the Birdie 

218. Numerous Nato and national 

Amoun batteries 

with good results 

Kuwait City/Rome. Some weeks ago 

the very first firing campaign with four 

advanced Amoun batteries from 

Rheinmetall Italy – including two of 

the systems delivered to the Kuwaiti 

armed forces a short time ago – was 

conducted in the middle of the desert 

about 100 km to the west of Kuwait 

City. The official handover of these systems 

had been celebrated in the presence 

of high-ranking visitors. 

Five Aspide missiles were launched 

from SAM missile launchers during the 

tests; the test team also fired 35mm 

anti-aircraft guns six times. The test results 

were excellent and to the full satisfaction 

of all involved. The systems 

employed for the first test campaign 

consisted of two Amoun batteries, 

each with a Skyguard Fire Control Unit 

(FCU), two 35mm anti-aircraft guns 

and two SAM missile launchers. The 

delivery agreement for the two Amoun 

systems that served as a partial replacement 

for the five batteries that 

had disappeared during the Iraqi invasion 

had been concluded in 2002 and 

officially finalized a few months ago. 

14 

tests have proved the Birdie’s effectiveness 

against even the most advanced 

guided missiles with twocolour 

analysis. 

Rheinmetall Weapon and Munitions, 

a business unit of the Düsseldorfbased 

Rheinmetall Defence group, is 

one of the world’s leading manufacturers 

of self-protection systems and 

decoys for protecting military and 

civilian assets. The Swedish order 

represents a breakthrough in the international 

market. 

Claudio Koporossy, sales director at 

Rheinmetall Italy in Rome on the successful 

test campaign: “The firing 

tests were organized in four sessions; 

the first three were basically training 

and exercising and the last day was 

the VIP event attended by numerous 

high-ranking visitors, including the 

Chief of Staff of the Armed Forces and 

his deputy, all forces commanders 

and many generals.” 

The third missile launch was particularly 

notable according to Koporossy: 

“A so-called friendly target 

was simulated. The Aspide missile 

has a self-destruction mechanism 

which can be triggered from the Skyguard 

system – something that was 

done in this test. This allowed us to 

demonstrate an important function 

of the system that permits missile 

destruction in flight if – at the last 

minute – a target is identified as 

friendly.” 

Thanks to the outstanding results 

of the test campaign in Kuwait, sales 

manager Koporossy rates the 

chances of further system deliveries 

to Kuwait - to substitute the three 

Amoun batteries that went missing in 

1990/1991 and have not yet been replaced 

– as good.

Newsline 

The “Train the Trainer” conference has been held for the second time, this time at MSI in Dormagen. Our picture shows Dr. Berthold 

Franz (Senior Manager Competence Center Test Field) during the tour of Pierburg GmbH in Neuss, which was also part of the program. 

while the MSI seminar participants learn, among other things, about the range of tasks performed by the engine test beds. 

Second “Train the Trainer” seminar — this time at MSI in Dormagen 

Multipliers for an optimized service 

Neuss/Dormagen. Following its premiere 

in 2005, the second Pierburg 

“Train the Trainer” conference has now 

been held, this time at the MSI location 

in Dormagen. Alternating each year 

with the “Train the Trainer” seminar 

(TtT) at Kolbenschmidt in Neckarsulm, 

service technicians and engineers at 

this international training event are familiarized 

in depth with the Pierburg 

products 

available 

worldwide 

for the aftermarket. 

The 

focus of this 

year’s TtT 

was not only 

on the communication 

of technical knowledge, but also on 

sales and marketing information. 

This year, 27 people from 15 countries 

attended the four-day event. The Pierburg 

technical training attracted not 

only important MSI business partners 

from Ireland, Portugal, the UK, the 

Netherlands, Italy, Romania, Norway, 

Israel, Bulgaria and Greece. In fact, employees 

from MSI’s own companies — 

KS Motorac (France), KS Istanbul 

(Turkey), MSI Asia and KS Motor Ser- 

vice (Czech Republic) — also seized the 

opportunity to obtain information from 

the Technical Market Support staff in 

Dormagen on Pierburg products which 

they can later pass on to their customers 

in their respective countries 

and regional markets. 

“Our partners and customers that we 

train thoroughly during the TtT are effectively 

the extended arm of MSI in 

their own countries. After training, 

these so-called multipliers are in a 

much better position to offer their customers 

locally a good and quality service. 

This way they can successfully 

serve and penetrate the market,” explains 

Dustin Smith, head of the Dormagen 

location. 

The multipliers’ range of tasks then 

also includes — in each case locally — 

the holding of technical training sessions, 

the establishment of a technical 

15 

service, and the improvement of the 

technical hotline, sales, and the assessment 

and handling of complaints. 

The conference with its mix of theory, 

distribution information, marketing and 

practical details thus went down very 

well with everyone attending. A tour of 

the Pierburg location in Neuss, which 

was also part of the program, practical 

work on the test engines at the MSI 

training center 

in Dormagen, 

and various 

lessons 

on theory, 

covered diversified 

topics 

of interest to 

everyone 

which will enable 

them to hold various MSI and Pierburg 

activities in their own markets and 

have a positive impact on sales. 

Smith sums up: “Since interest in the 

Pierburg and Kolbenschmidt products 

is constantly growing — the growth in 

the attendance levels from 11 in 2005 

to 27 this year says it all — I am convinced 

that we shall be able to welcome 

further new participants and 

partners to the next Pierburg TtT conference 

in 2009.” 

Pictures: Michael Rennertz

Newsline 

Engineer Wolfgang Kühn takes internationalization as a career opportunity 

Open-minded and highly inquisitive 

am inquisitive by nature, always eager 

to gain new impressions and be 

given new tasks. I never had the 

chance to spend an extended workrelated 

period abroad during my 

studies; that is why I am really glad 

Rheinmetall Defence offered me 

the opportunity to work for the Greek 

subsidiary.” In fact, Wolfgang Kühn 

started working for Rheinmetall Hellas 

S.A. in Athens nearly a year ago and 

has had no regrets. 

Since July 2006 the 36 year-old engineer 

from Dresden has been working 

as a technical author responsible for 

the entire documentation of the Greek 

version of the PCP command system 

for the ASRAD (Advanced Short Range 

Air Defence) system, consisting of various 

operating and maintenance manuals 

as well as spare parts catalogs for 

the system components. 

“To fulfill so-called offset requirements 

in the project, the technical 

manuals for the 

command system 

designed by 

Rheinmetall Defence 

of Bremen 

were to be prepared 

at Rheinmetall 

Hellas. 

This called for the 

system expertise 

and involvement 

of a documentation 

specialist – 

to meet these requirements, 

a job 

description was 

drawn up in co- 

operation with 

Jörg Daniel, director 

of the Technical 

Publications/Logistics Engineering 

business unit,” explains Michael 

Heinzemann, chairman of the board of 

directors and managing director of 

Rheinmetall Hellas since 2003. 

Kühn, who had joined the technical 

publications unit in 2004, was just the 

man for the job. Not only did he have 

the necessary technical know-how 

thanks to his extensive authoring experience, 

but he was open-minded 

and highly motivated when asked 

about the extended assignment 

abroad – something that is not always 

a matter of course, even in times of 

globalization. Comments Heinzemann: 

“During discussions with employees at 

our German sites, we often find our 

staff reserved when we ask whether 

they would be willing to work abroad, 

even if only for a limited period. There 

are many different reasons for this 

ranging from family commitments to 

fear of the unknown.” 

Kühn has not found it difficult to combine 

work abroad with family life. The father 

of an eight year-old son points out: 

“As my family and I live in Dresden anyway, 

the place of work is only of secondary 

importance. The train from Dresden 

to Bremen takes approximately 6 hours, 

a flight from Dresden to Athens with all 

the related traveling and waiting times 

takes roughly the same time.” 

The move to Athens was obviously 

not a leap in the dark as Rheinmetall 

employees are given maximum assistance 

when they go abroad – a point 

that Wolfgang Kühn is quick to confirm: 

“After my first visit to Athens, I was 

promised all the help I needed, for in- 

Has been working in the Greek capital Athens since the middle of 2006: Wolfgang 

Kühn works for Rheinmetall Hellas as a technical author for special documentations. 

stance, while looking for accommodation 

and registering, and both Rheinmetall 

Defence of Bremen and Rheinmetall 

Hellas kept to their promises.” 

Kühn is especially grateful for the fantastic 

support given by his colleague in 

Athens Despina Solkidou. 

Social issues naturally also play a 

role at the group’s many subsidiaries 

and branch offices around the globe. 

Provisions – for instance, the assurance 

of employment at Rheinmetall on 

Kühn’s return from Greece or the integration 

in the company’s own social 

benefits scheme – are just as important 

as obligations on the part of 

Rheinmetall Hellas – like e.g. health in- 

16 

surance, flights home or special flights 

in emergencies. Says Kühn: “All of 

these aspects are really well organized, 

meaning that I don’t face any risks in 

connection with my work out here.” 

The Greeks are also very pleased with 

their “new” employee who has more 

than ten years of authoring experience. 

Apart from Kühn’s technical experience 

with various types of documentation, 

his extensive expertise and his high 

level of motivation, Heinzemann finds 

his human qualities particularly praiseworthy. 

“Thanks to his open-mindedness, 

Wolfgang Kühn very quickly settled 

into his new life in a different company 

and country.” 

And how does all of this affect Kühn’s 

family? “Obviously, it is slightly different 

living 3000 kilometers away from one’s 

family but thanks to good flight connections 

and the support of Rheinmetall I 

spend between six and eight days a 

month at home with my family. Besides, 

modern communication 

media like 

internet and telephone 

are useful in 

maintaining “normality”, 

and my 

son is naturally always 

eager to explore 

the 4.5 million 

Greek capital.” 

Kühn – who 

passed his degree 

in communications 

engineering 

at the Technical 

Photo: Studio 91 - Georgios N. Anastasopulos /Athen 

College of Deutsche 

Telekom in 

Leipzig in 1996 – 

says his decision 

to work abroad 

has paid off both professionally and privately. 

“Professionally, because I have 

been able to improve not only my core 

competencies but also capabilities like 

teamwork, project and time management; 

privately, because I have learnt to 

deal with a totally new and different 

mentality and culture. Also, I have been 

given an insight into business operations 

outside my home company and 

been lucky enough to meet lots of different 

people.” Kühn’s experience has 

been positive all round, his greatest 

challenge being the complete and utter 

chaos during rush hour – and this normally 

doesn’t end ‘til about one o’clock 

in Athens! Bernhard Schenk

ichael Heinzemann 

(photo), chairman of 

the board of directors 

and managing 

director of Rheinmetall 

Hellas is convinced 

that an extended 

period of work outside Germany 

is extremely useful. “All senior 

executives working for major corporations 

with an international focus like 

Rheinmetall should consider a longer 

period abroad as an essential part of 

their career.” Industrial engineer 

Heinzemann decided to do just this a 

few years ago. The former air force officer 

has been instrumental in establishing 

the Greek subsidiary of Rheinmetall 

in Athens, and can draw on his own experience 

when discussing the benefits 

of working abroad. “The daily confrontation 

with the different culture, the 

legal specificities and the working 

habits and routines of our customers in 

situ give us an insight into local conditions; 

this helps us secure orders and 

manage projects successfully.” 

The involvement in all aspects of a 

project activity and greater individual 

responsibility for tasks often performed 

by others are useful in acquir- 

Newsline 

ing further capabilities. “For instance, a 

development engineer will learn a lot 

about project management and commercial 

aspects of a project,” says 

Heinzemann. Another important side 

effect that is becoming increasing important 

in the day and age of globalization: 

“In the local teams, the German 

colleague will initially be perceived as 

the “foreigner” and has to learn to adjust 

to the local working culture. This 

teaches him or her to adopt a more relaxed 

approach to work and may eventually 

show that other ways of working 

(in other words, not the typically German 

approach) may actually be equally 

successful.” 

The managing director of Rheinmetall 

Hellas S.A. considers Wolfgang Kühn’s 

assignment to Greece as exemplary: 

“His willingness to take on a new job in 

a working environment that was totally 

new to him tipped the scales in his favor. 

The combination of technical expertise 

with openness toward new 

tasks is the key to success abroad.” 

Order for 18 light weight Manpad Cueing Systems 

Netherlands procure 

MCS from Rheinmetall 

Düsseldorf. During the last decade 

Manpad teams have become a vital 

part for air defence scenarios of rapid 

reaction and object protection forces. 

To improve the capabilities and mission 

profiles of their Manpad forces the 

Dutch Armed Forces ordered 18 light 

weight Manpad Cueing Systems (MCS) 

from Rheinmetall Defence. The innovative 

system is supposed to close the 

capability gap of connecting Manpad 

teams to a real time situational awareness 

picture. 

The Rheinmetall Manpad Cueing System 

comprises a Cueing Device, the Communication/Cueing 

Processor Unit (CCPU) 

and the Manpad Weapon Terminal. This 

Terminal is the heart of the system. The 

ruggedized computer is configured to display 

and handle real time surveillance data 

as well as airspace control means. 

Within the Weapon Terminal all required 

orders and commands like fire 

control and target data can be transmitted. 

Pursuant to the reports and in- 

17 

Heinzemann believes that employees 

like Wolfgang Kühn who are not afraid to 

take on responsibility in a foreign subsidiary 

or branch of the Rheinmetall 

group are essential to the success of the 

group. “The planned increase in exports 

by Rheinmetall Defence will only be attainable 

if we move even closer to our 

customers abroad. A professional representation 

abroad is a key to success.” 

Last but not least, any assignment 

abroad offers employees interesting 

career opportunities. Commenting on 

the career chances for the engineer 

Improving human skills 

formation about status and position of 

Manpad teams, the portable Weapon 

Terminal provides cueing information 

to the gunner. This information is displayed 

by the Cueing Device that visually 

guides the Manpad gunner to cue 

the missile to the assigned target. The 

Cueing device can be non-permanently 

fixed to Stinger launch tube. 

The Cueing Device consists of a stateof-the-art 

display with six LEDs to display 

different commands like direction 

(up, down, left, right) fire control orders 

(in range, abort) and additional engagement 

information (target leaving 

engagement range). 

The Communication/Cueing Processor 

Unit is interfaced to the Weapon Terminal, 

GPS and the Cueing Device. Via a field cable 

connection the CCPU is connected to 

the Tactical Network Communication Layer 

(TNCL), that includes a DSL Modem. 

Communication between the Manpad 

team to the command system is ensured 

by a tactical radio interfaced to the TNCL. 

from Saxony, Heinzemann says: “The 

necessary adjustments abroad and the 

acceptance of a different – albeit European 

– cultural group which differs in 

many ways from the German culture, 

the close cooperation with Greek colleagues 

in an international team and 

the high level of self-determination at 

work are all helpful in improving the human 

skills of individuals and hence 

making people like Wolfgang Kühn fit 

for (future) management activities.” 

To improve mission profiles of their 

Manpad forces the Dutch Armed Forces 

ordered 18 light weight Manpad Cueing 

Systems from Rheinmetall Defence. 

After receiving high-precision direction- 

and position data from GPS or 

compass the CCPU converts and assigns 

the information for the Manpad 

and the assigned target. The unit is also 

responsible for the control of the 

display of the Cueing Device. 

In fact, the Rheinmetall MCS is an innovative 

attempt to connect Manpad 

forces to the information and communication 

network of modern air defence 

scenarios by standardized interfaces 

and protocols. The MCS receives, converts, 

screens and displays all required 

information of real time networks (e.g. 

local air picture, recognized air picture) 

for the operation area as well as airspace, 

fire- and weapon control orders.

Newsline 

Consignment stores common practice at Pierburg GmbH 

Maximum level of supply certainty 

Neuss. Manufacturers of advanced 

products have to keep up with the latest 

developments – not only where 

R&D are concerned but also in all other 

areas of their business. One such innovation 

is the modern warehousing concept 

Neuss-based Pierburg GmbH introduced 

in 2005, making logistic management 

much more efficient and 

therefore contributing significantly toward 

the success of Pierburg. 

The consignment store model introduced 

makes stock control much easier. 

With the suppliers, the store facilitates 

the work of all participating companies. 

The improvement of stock 

management has helped to enhance 

the business performance of Pierburg 

GmbH. 

Management assistant Corinna 

Krause-Pieper points out that “purchasing 

logistics play a key role in the 

value-added chain of a company.” And 

she should know: after all, her responsibilities 

include the smooth performance 

of all activities in this connection, 

especially managing high information 

requirements. Says Krause-Pieper: “Interfaces 

to production and manufacture 

in the different plants, to the purchasing 

and sales functions as well as 

direct contact with customers, suppliers 

and logistic services involve a lot of 

communication.” 

This high level of communication is 

necessary as the stores are located on 

the premises of Pierburg GmbH but are 

not under the control of Pierburg. In 

fact, the store is managed by the supplier 

who rents the location in order to 

store his goods there. “The stocks remain 

the property of the supplier until 

the customer – in this case Pierburg – 

takes them out of the store; after removal, 

the supplier then invoices the 

material using a special software system 

that monitors all movement of 

goods. A removal notice is automatically 

created and transmitted to the 

supplier who can then bill the goods.” 

The big advantage offered by this 

type of store is as follows: “Only when 

an item is actually removed from the 

store is it invoiced. This reduces the 

amount of capital tied-up!” Improved 

performance indicators – especially 

liquidity and return on capital employed 

– are crucial factors making the 

model particularly interesting and 

helping to optimize profits. 

The consignment store of Pierburg 

GmbH in Neuss offers a basic area of 

90 m 2 on which suppliers store their 

castings, stamped, sintered and 

turned parts. There are 265 pallet locations 

at the company headquarters; of 

these around 200 are currently in use. 

To test the communication capability 

in a small network, a consignment 

store with initially five suppliers was 

tried out in a pilot phase in 2005. Since 

then, consignment stores have been 

set up at all four German plants of Pierburg. 

Smooth operations have since 

convinced many suppliers of the advantages 

of such a solution. 

The selection of suitable suppliers is 

also important. “It is not a question of 

contacting the supplier with the 

biggest turnover. In fact, it is more important 

to involve suppliers whose 

18 

Composing: René Dahlmanns 

stocks are valuable and generally in 

store for longer periods of time,” says 

Tobias Kasperlik, purchasing director 

of the Pierburg group. Commenting on 

the selection criteria, he adds: “It is important 

to choose suppliers who have 

high inventories.” 

Another benefit that should not be underrated 

is that the area on the company 

premises can be used efficiently as 

the supplier rents the location, does not 

need to maintain his own warehouse facility 

and only has to cover the cost originally 

associated with the delivery. 

As the stock has already been qualityinspected 

and agreed quantities are always 

readily available, Pierburg is assured 

of an excellent supply certainty, 

coupled with minimal management expense, 

so that the overall concept is 

extremely efficient. “The immediate 

and safe link-up of the suppliers to the 

Pierburg group must be seen as another 

important advantage of the consignment 

store since suppliers who offer 

their goods quickly and reliably are 

fundamental to the high quality of the 

end product.” 

In fact, the consignment store is a 

win-win solution as both parties can 

enhance their efficiency and therefore 

strengthen their business relationship. 

“Once the team is well established and 

the processes of the suppliers and 

Pierburg have been clearly communicated, 

the project very definitely contributes 

toward the commercial success 

of a business,” says Udo Nenning, 

Pierburg’s management board member 

responsible for logistics, purchasing 

Consignment store – an important key to increasing liquidity. As Corinna Krause- 

Pieper notes: “Purchasing logistics play a role in the value-added chain of a company.” 

and sales, noting that last year Pierburg 

managed to reduce its stocks by 

nearly € 65 million which is nearly 20% 

of the Pierburg purchasing volume in 

Germany. 

Photo: Markus Feger

he financial press regularly 

publishes lists of the 

100 biggest companies in 

Germany, sometimes 

measured in terms of 

sales, sometimes by market 

capitalization. Rheinmetall 

AG, too, features in these lists: 

for example, the corporation’s sales of 

€ 3.5 billion in 2005 prompted the 

Süddeutsche Zeitung, a prestigious 

Munich daily, to rank the company in 

95th place in June 2006. 

We are indebted to Economic Historian 

Martin Fiedler of the University of 

Bielefeld for the following finding, which 

appeared in 1999 in the “Zeitschrift für 

Unternehmensgeschichte”, a learned 

journal dedicated to corporate history: 

as far back as 1907, exactly a hundred 

years ago, Rheinmetall numbered 

among the top 100 companies of the 

German Reich – measured, that is, by 

headcount. Unlike parameters such as 

sales, cash flow, market capitalization 

or nominal capital, the number of employees 

– especially if one wishes to 

compare the size of a company over a 

period of a hundred years or more – is 

an indicator “which in a sense is timeless 

and requires no elaborate methods 

of conversion”. 

When we look at the numbers employed 

by the 100 largest companies in 

Germany in 1907, it is striking how 

great the gap is between the very 

largest German corporations and 

Rheinische Metallwaaren- und Maschinenfabrik 

(Rheinmetall’s predecessor), 

which ranked 98th on the list. At the 

very top are two state-owned enterprises: 

the Prussian-Hessian Railway with 

486,381 employees, and the Deutsche 

Reichspost with “only” around half as 

many (277,116). Ranking third and 

sixth, respectively, come the first private-sector 

companies: Krupp in Essen 

with a workforce of 64,354, and 

Newsline 

In 1907, exactly a hundred years ago, Rheinmetall already numbered among the top 100 companies of the former German Reich. 

Siemens & Halske and the Siemens- 

Schuckertwerke in Berlin, which together 

employed 34,324. 

And Rheinmetall? The annual report 

for 1907 puts the number at 3,048 

workers, who earned an average of 

4.68 Reichsmarks per shift (in those 

days the money was better at Krupp!). 

Rheinmetall also employed a thousand 

or so Privatbeamte (literally “private 

civil servants”), as salaried workers 

were then known. Founded just 18 

years earlier, Rheinmetall could not 

compare with giants like Krupp and 

Siemens, but it was already on a par 

with many companies that are still 

household names to this day: Thyssen 

& Co. (steel) in Mülheim, Farbwerke 

Hoechst (dyes), die Gewerkschaft Zollverein 

(coalmining), the German-Austrian 

Mannesmannröhrenwerke (pipes), 

Blohm & Voss (shipbuilding), WMF (cut- 

lery and tableware), Buderus (casting), 

to say nothing of Deutsche Bank, the 

most capital-rich company of the age. 

All of these companies had workforces 

numbering roughly 4,000 in 1907. 

A hundred years ago Rheinmetall was 

still far from being a management holding 

company. In 1907 the company had 

four production plants, including two 

in Düsseldorf-Derendorf – the recently 

rebuilt-on site of former Werk 1 and the 

Germania factory directly across from 

it, now occupied by a DaimlerChrysler 

plant – as well as the steelworks in 

Düsseldorf-Rath and the former 

Dreyse-Werk at Sömmerda, faraway in 

Thuringia. The firing range in Unterlüß 

was in Rheinmetall hands by this point 

too. The company owned no subsidiaries, 

though it did have a number 

of minority holdings: the Reisholz pipe 

plant in Düsseldorf-Reisholz, originally 

founded in 1899 by Heinrich Ehrhardt 

as Press- und Walzwerk AG, and now 

part of Mannesmannröhren-Werken. 

Rheinmetall also had an equity partici- 

19 

pation “in a foreign plant for producing 

steel and war material”. An intriguing 

detail, but the annual reports published 

in this period unfortunately 

make no mention of the name or location 

of this mysterious plant. 

In his article in the “Zeitschrift für Unternehmensgeschichte”, 

Martin Fiedler 

rightly notes the many gaps in studies 

of this kind. Indeed, in a table produced 

by Fiedler himself relating to a 

later period (1938), Rheinmetall-Borsig 

is missing. The merger with Borsig- 

Werk in Berlin in 1936 nearly doubled 

the number of Rheinmetall employees 

compared to 1935. By 1938, with a 

workforce of 45,438 – the figure cited 

in that year’s annual report – the muchenlarged 

company had clearly joined 

the ranks of Germany’s corporate giants: 

a fact which escaped Fiedler’s attention. 

In 1907 already in the top 100 

The Reichsbahn and Reichspost (the 

state railway company and the postal 

service) remained unchallenged as the 

nation’s largest employers, followed by 

the artificially created industrial conglomerates 

IG Farben and Vereinigte 

Stahlwerke, trailed in turn by Siemens, 

Krupp, Gutehoffnungshütte (another 

Ruhr Valley heavy engineering company), 

the Veba energy concern, Friedrich 

Flick KG, AEG and Reichswerke Hermann 

Göring. Then, in 12th place, 

would have come Rheinmetall-Borsig 

AG, which – in contrast to 1907 – had 

since grown into a massive industrial 

concern. Apart from plants in Berlin- 

Tegel, Düsseldorf, Sömmerda and 

Unterlüß, “Rheibo” had major subsidiaries 

and trade investments, especially 

in Berlin; but the company maintained 

large-scale production facilities 

in Switzerland and the Netherlands as 

well. To this extent, Rheinmetall-Borsig 

in 1938 was even bigger than Röchling, 

Rheinmetall’s later majority shareholder. 

Dr. Christian Leitzbach

Your missions–our solutions 

Cut off from the outside world–the atmosphere aboard a submarine quickly becomes 

perceptible even in a simulator. Rheinmetall Defence is particularly experienced in 

developing and manufacturing submarine simulators, covering the complete spectrum 

from ops centres to depth simulation, including training systems for state-ofthe-art 

command and weapon engagement systems. Worldwide, training and simulation 

solutions from Rheinmetall Defence have helped prepare crews of nearly all 

conventional submarine classes and are tailor-made for today’s and tomorrow’s 

challenges. More information at: www.rheinmetall-defence.com 

Rheinmetall Defence Electronics GmbH · Brueggeweg 54 · 28309 Bremen · Germany 

Phone +49 421 457-01 · Fax +49 421 457-2900

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