Environment, Initial Position, Task

Proceeding, Achievement

Company:
Producer of customer specific hydraulic components and systems for mobile and stationary hydraulic/ automotive/ trucks, 1.200emp./200Mio.€/a (2008)

Responsibility:
Business Unit Manager and member of the executive board (assigned responsibility for sales, R&D, calculation and logistics) 700emp./125Mio.€/a

Initial Position:
Transformation from a component to a system supplier initiated, small Joint Venture in Brasil in the truck segment with only one main customer is stagnating at 1Mio.€/a revenues. Capacity at current location is limited, EBIT endangered after the crisis of 2009.

Task:
Profitable expansion of the joint venture in Brasil together with the development of further market segments.

Proceeding:
Support of the joint venture in Brasil with personal visits at existing and further potential target customers, subsequently also by key account managers from Germany. Utilisation of current business relationships in Europe to support the expansion in Brasil by highlighting the chances of global supply partnerships also in further market segments.

Employment of a General Manager for the joint venture to relieve the as yet managing joint venture partner. Subsequently targeted further expansion of the local staff and transfer of knowledge through numerous trainings and longer visits of German specialists as well as by personal activities. Introduction of a continuous improvement process.

Move into a suitable newly constructed building and set-up of an investment plan for providing the capacity for the intended growth and also to convince global acting customers about the sustainability of the engagement. 

Personal negotiation of price increases and future material price index clauses at Brasilian customers during the crisis 2009.

Later harmonisation of the market identity and processing through a smooth and friendly 100%-takeover of the joint venture from the partner and integration into the legal entity of a bigger company acquired in Brasil.

Achievement:
Expansion of the revenues in the Brasilian joint venture to 7,5Mio.€/a, expansion of the local market share in the truck segment to 75%, entry into the market segment agricultural machines, clear improvement of the before endangered EBIT.

Laying the groundwork for future above average growth also in the market segments agricultural machines and construction machines by several started localisation projects at customers.