Hamül takes on man- agement of Reichen- bacher ... - Scherdel GmbH

REPORTS ON RESEARCH AND DEVELOPMENT, MANUFACTURING, MATERIAL TECHNOLOGY AND THE PRACTICAL APPLICA-
TIONS OF ENGINEERING SPRINGS AND ON THE SYSTEMS, MACHINERY AND TOOLING DIVISIONS OF THE SCHERDEL GROUP
Dear reader,
2003 was a successful year for
SCHERDEL. In the field of engineering
springs the Group's turnover was
again well above the average for the
trade and the first two months of
2004 have shown that our cautious
optimism was justified. Thanks to
well-filled order books we can be
sure that the development will continue
to be positive. Now, as in the
past, SCHERDEL is pursuing a strategy
of qualified growth. Our decision
to take on the management of Reichenbacher
GmbH – a company
which had gone bankrupt and is now
being run by the SCHERDEL subsidiary
<strong>Hamül</strong> – is in line with this
strategy, since it rounds off the mechanical
engineering side of our
business.
Of course, in relation to the automobile
trade there are some clouds
on the horizon. Let us hope that the
12.4% reduction in the number of
new vehicle registrations as compared
with January 2003 is not a bad
omen and that there will be a change
for the better after 4 years of stagnation
in Germany. Neither the OEMs
nor the tier one suppliers should take
advantage of the difficulties in the
automobile market by increasing the
existing pressure on prices. Bernd
Pischetsrieder, the head of the VW
Group, was absolutely right when he
stated recently that, in the long term,
a sound partnership was worth more
than a few cents' discount in the
short term. One thing is certain: the
small and medium-sized suppliers in
particular need a breathing space;
excessive pressure on prices will reduce
efficiency and, in the medium
and long term, will eventually harm
everyone concerned.
Walter Bach
Group Managing Director
Published quarterly
<strong>Hamül</strong> <strong>takes</strong> on management
of Reichenbacher
GmbH
Extension of mechanical engineering
division in the SCHERDEL Group
F
ollowing successful negotiations
with the receiver, the SCHERDEL
subsidiary, <strong>Hamül</strong>, whose head office is
in Meeder near Coburg, will be taking
on the management of the company
formerly known as Reichenbacher
GmbH from Dörfles-Esbach and now to
be renamed Reichenbacher <strong>Hamül</strong>
GmbH. Reichenbacher GmbH had got
into financial difficulties and had to file
for bankruptcy. The threatened company
closure was avoided when <strong>Hamül</strong>
took on the management. Latterly,
Reichenbacher had a staff of 176 and
about 88 of those, including ten
trainees, are now employed in the new
company. In a press statement, Group
Managing Director Walter Bach said
that this extension of the product range
would strengthen SCHERDEL's position
in the market in relation to mechanical
engineering. For 2004 the
SCHERDEL Group had planned a
turnover of approx. 300 million euros
and it was intended that the manufacture
of machines and tools would contribute
80 million euros to this total. The
new enterprise will be run by two experienced
managers: Wolf-Dieter Höhn,
who helds a top position at <strong>Hamül</strong>, and
Thomas Czwielong, who has already
held a top position at Reichenbacher.
Reichenbacher GmbH was founded
exactly 50 years ago by the late Hermann
Reichenbacher. With an initial
staff of six, the Company began by
manufacturing copying machines for
View of the factory at the newly founded
Reichenbacher <strong>Hamül</strong> GmbH in Dörfles-Esbach
woodcarvers. Thanks to these products,
which are still being manufactured
today in reduced quantities, Reichenbacher
acquired worldwide renown.
The Company then produced multiple
drilling machines, profile milling
machines (mainly for the shoe-making
industry in the 1970's), helical milling
machines, special machines for making
doors and kitchen furniture, as well as
automatic machines for the upholsteryframe
industry. In 1974 Reichenbacher
was the first machine factory in Europe
to start developing and manufacturing
NC milling machines for woodworking.
The extensive range of products now
includes general-purpose CNC milling
machines for the working of wood,
plastics and light metal. Reichenbacher's
clients include companies
such as Alno, Bechstein-Pianowerke,
Behr, BMW, Daimler-Chrysler,
Deutsche Airbus, Dethleffs, Jaguar,
MBB, Miele, Novem, Schütz, Singer,
Rolls Royce, VW and Westfalia. The
existing range of products will continue
to be manufactured. (-bi)
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ENVIRONMENTAL MANAGEMENT - DEVELOPMENT - MARKETPLACE - NEWS AND INFORMATION
2
MARKETPLACE
Arndt G. Kirchhoff
President of Kirchhoff Automotive
"Pressure leads
to defects"
Arndt G. Kirchhoff:
Survival depends on adequate prices
T
roubleshooting costs – as Garcia
Sanz, Head of Purchasing at VW,
calls them – are often caused by nonadherence
to schedules, and defects
which are not detected in time. This in
turn is caused by pressure of time and
pressure on prices. Arndt G. Kirchhoff,
President of Kirchhoff Automotive, and
Chairman of the Association of German
Automobile Manufacturers (small to
medium-sized enterprises), argues that
in relation to automobile production:
"More realistic performance targets
would minimise these troubleshooting
costs or even avoid them altogether."
As far as he is concerned: "Pressure
leads to defects."
The costs caused by a supply chain
which doesn't work are often horrendous,
and in the opinion of Arndt G.
Kirchhoff this is something which the
OEMs could avoid. As the President of
a medium-sized business he shares
the views of his customers in relation
to cost-awareness and making use of
possibilities for economizing. However,
automobile manufacturers are economizing
in the wrong place. Arndt G.
Kirchhoff believes: "There's one question
where automobile manufacturers
are going to have to rethink in future, or
rather, they'll have to think a bit more:
"Where can a business avoid costs?"
Kirchhoff considers Toyota to be a
company with an "exemplary strategy
for avoiding defects". As a basic principle,
this automobile manufacturer
allows no more alterations six months
prior to SOP. After that, changes cannot
be made until the series is underway.
This reduces the number of vehicle
recalls and complaints. According
to Kirchhoff, troubleshooting costs often
arise because last-minute alterations
usually have to be carried out by hand,
and reliable software-engineering
methods and simulation tools are
not used. To quote Arndt G. Kirchhoff:
"The OEMs should consider the economic
situation of their suppliers and
ensure that they have a sound financial
basis, at least for the duration of the
contracts. This will only be the case if
the suppliers receive adequate payment
for work well done." Many suppliers
submit a tender for a contract at
a price which is too low because they
want or even need to get the job at any
price. This cannot be in the interest of
the OEMs: "It can result in inferior
quality and potential snags in the production
process." Kirchhoff regrets that,
instead of trying to avoid bottlenecks
and risks, the manufacturers are only
interested in keeping prices down.
Kirchhoff also points out another obstacle
in the system: the fact that, when
agreeing on a price, the members of
the purchasing department involved in
the preliminary negotiations give due
consideration to the technical solutions
and the required quality of the product.
Later, however, during the development
process, when changes have to be
made, other members of the purchasing
department are involved: not those
whose aim, at the start of the project,
was to obtain the best price-performance
ratio and long-term reliability,
but those who receive a commission on
the amount of cost saved. Another
potential source of trouble, according
to Kirchhoff, is the e-bidding system.
Although basically in favour of this
method of bidding, he does give the
following warning: "All those participating
must be aware of their limits and
not be carried away by their gambling
instinct during the bidding process." In
fact, there have been some e-bidding
procedures where Kirchhoff was not the
winner, and yet he was subsequently
awarded the contract – the reason being
that his offers were well-reasoned
and took any eventualities into consideration.
He emphatically believes: "If
we are to function as suppliers, we
have to survive – and that will only be
possible if we are paid adequate prices.
That's why there may be times when
we don't accept a particular job or don't
even take part in the bidding."

MOTOR SHOW REPORT
2003 International
Motor Show – Platform
for communication
SCHERDEL presentation at the world's
biggest Motor Show
W
ith just short of one million
visitors, the 2003 International
Motor Show set a new record. Of
course SCHERDEL was represented
too at the world's biggest presentation
of the latest information and trends pertaining
to the motor car. In the words of
Group Managing Director Walter Bach:
"We've been exhibiting our products in
Frankfurt for decades now. For us and
for our clients this Show which is held
every two years is an important platform
for communication, enabling us to
exchange information on topics of inter- est." One of the main points of interest
at the 2003 Motor Show was the presentation
of two new Company divisions:
assembly technology, located in
Friedau, and connection technology,
based in Marienberg. Here, at TOGO
SCHERDEL GmbH, a wide range of
hose clamps is produced.
The SCHERDEL Group has extended its range
of activities to include two new lines of business:
"Assembly technology" at the Friedau factory
(photo below) and "Connection technology" at
TOGO SCHERDEL GmbH in Marienberg (photo
on the right). The new divisions were presented
for the first time to a wide range of visitors at the
2003 International Motor Show.
A beamer was used for the first time
to show the revised version of the Company
film and the new product presentation
in the "best possible light".
Hose clamps
Exhibits at the 2003 Motor Show
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DEVELOPMENT
NEWS
Distinguished Service
Medal for Walter Bach
Walter Bach was awarded the
Distinguished Service Medal for
his outstanding service to the
town of Marktredwitz.
A special honour from his
home town: The Town Council
unanimously agreed that Group
Managing Director Walter Bach
should receive the Distinguished
Service Medal. The award was
presented by the Mayoress, Dr.
Birgit Seelbinder.
In her speech, the Mayoress
emphasized the outstanding
service which Walter Bach had
rendered the town. Under his
management, the SCHERDEL
Group had acquired a high
standing in the field of engineering
springs. The Group now employed
a staff of nearly 3000 in more than
20 factories, subsidiaries and
holding companies in Germany,
France, England, Spain, Portugal,
the Czech Republic, Slovakia,
China, Japan, Brazil and the USA.
The Mayoress said that Walter
Bach was the embodiment of a
successful entrepreneur and of
the benefits, such as maintaining
and creating jobs, associated with
this term. This would have been
reason enough to honour him.
However, he also deserved
thanks for his social and political
commitment. She referred to his
activities on the Unionist Economic
Advisory Council, with the
Marktredwitz & District Industrial
Working Party, with the Steinwald-
Fichtelgebirge Academy, with
the Association of German Spring
Manufacturers, on the Executive
Committee of the Upper Franconian
Chamber of Industry & Commerce,
on the Panel for Industry &
Commerce and with the Working
Party for Social Market Economy.
In a brief speech of thanks Walter
Bach emphasized the fact that
he was accepting the honour on
behalf of his staff. (-bi)
Further development
in the field of pedestrian
protection
SCHERDEL's Research and Development
Division applies for ten new patents
During 2003, INNOTEC Forschungsund
Entwicklungs-GmbH continued
development work on actuators
for "active car bonnets". The latest activities
here have been concerned with
raising the car bonnet in the area of
the lock. The Company developed an
extremely compact, magnetic trigger
device with a mechanism which raises
the lock of the bonnet 30 mm. From
the moment when the trigger device
receives the signal until the bonnet
reaches its upper position, there is a
time lapse of only 30 milliseconds, the
required voltage being 12 V and the
strength of current I=10 A.
The advantage of the magnetic trigger
device is that, as compared with pyrotechnic
elements, the system is completely
reversible and the reaction time
is almost the same.
The OEMs are extremely interested in
this device, which was developed in cooperation
with a lock manufacturer. It is
just another example of SCHERDEL's
innovative capacity and efficiency.
In the course of the development
work, 10 patents have been applied for
which will advance technology to a
considerable extent and will improve
the Company's chances in relation to
the OEMs. As a result of these activities,
SCHERDEL was able to extend
its network of suppliers and this will be
increasingly important in the future.
The compact, reversible trigger device
developed in connection with this project
can also be used in other safety
applications. Thanks to the commitment
of the researchers working in the
Prototype and Development Divisions,
the expertise acquired in these projects
is advancing safety engineering still further.
(Dr. Hilmar Brödler
email: hilmar.broedler@scherdel.de)
An example of safety engineering: the "active
car bonnet". In the event of a collision the risk
of injury is reduced by raising the car bonnet.

MARKETPLACE
SCHERDEL location
in Myjava defies economic
stagnation
C.E.P. SCHERDEL Pru˘ziny doubled output
S
ince its foundation in 1993, the
development of the SCHERDEL
location in Myjava has proved very successful.
The growth of the Company
was such that the rented production
premises soon became too small and
another solution had to be found. In
October 2001 the foundation-stone was
laid for a new building with an area of
2,700 m2 . One year later the premises
were formally opened.
For nine years now, the Slovakian
journal "EURO STAV" has been organizing
a competition entitled "Building of
the Year". This competition is aimed at
architects, project engineers and managers
of commercial enterprises in the
Slovakian building market. The aim of
the competition is to give publicity to
the quality of the building trade on the
basis of different architectural criteria as
displayed in complex buildings. The
production premises in Myjava were
selected to take part in this competition.
We are proud of the fact that there has
View of the outside of the factory at Myjava
been so much public interest in the
location in Myjava. However, during the
last year our customers have also become
much more aware of C.E.P.
SCHERDEL Pru˘ziny. To a large extent,
this has been due to the Group's joint
activities in the marketplace. To mention
one example: in 2003 some of the
SCHERDEL Group's major customers
visited the location in Myjava and were
keen to find out about production facili-
ties there. Thanks to the production
equipment, some of which is state-ofthe-art
and, in particular, to the commitment
of the staff under the management
of Mr Sasak, our location in Myjava
has aroused a great deal of interest.
In addition to engineering springs, the
factory also manufactures shaped and
welded components from wire and
strip material. At present, the location
in Myjava employs a staff of 112 who
achieved a total turnover of approx.
150 million Sk in 2003, which meant
that the output had been almost
doubled. The main aims for the coming
years are to increase the factory's productivity
still further by introducing new
technologies such as welding robots
and modern wire-bending machines,
and to intensify cooperation with Slovakian
partners in relation to the manufacture
of sophisticated components.
For sales promotion and customer
care in relation to direct clients in the
Czech Republic, Slovakia and – in the
long term – other East European markets,
the SCHERDEL Marketing Group
for the Czech Republic/Slovakia was
founded in 2003. Here, the aim is to
make CEP attractive as a direct partner
for the manufacturers of automotive
components in Central and Eastern
Europe. This is CEP's answer to the
new challenge in respect of customer
care and quality standards. As a first
step, the Company was successful in
obtaining certification in accordance
with DIN EN ISO 9001:2000 in 2003.
View of the inside of the factory at
Myjava: Production area
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COMPANY CERTIFICATION AWARDS
Corporate philosophy: SCHERDEL
supports environmental protection
DIN EN ISO 14001
... for all business enterprises
which have made active environmental
management one of the
basic principles of their corporate
philosophy and wish to document
their environmental activities.
The following companies have
obtained certification for their
environmental management
system in accordance with
DIN EN ISO 14001:
• SCHERDEL GmbH
• T. F. S. Scherdel GmbH &
Co. KG, Spezialfabrik für
Zug-, Dreh- u. Sonderfedern
• Christian Eberl KG
• Scherdel Druckfederntechnik
Röslau GmbH & Co. KG
• Oberflächentechnik Sigmund
Scherdel GmbH & Co.
• T. F. S. Scherdel GmbH &
Co. KG, Spezialfabrik für Ventilfedern
und Präzisionsdruckfedern
• Sigmund Scherdel Stanz- und
Biegetechnik GmbH & Co.
Seven locations are awarded environmental certification
in accordance with DIN EN ISO 14001
E
nvironmental management
systems are an indispensable
part of modern corporate management.
Here the focus is on the development
of integrated concepts which also consider
the environmental acceptability
of the way a product is manufactured,
how it is used and, possibly, how it
could be recycled. This is something
which is not only essential for a sound
environment but it also gives a company
security for the future. Here the
keywords are: compliance with legal
regulations, competitive advantages
and a saving in costs.
What advantages does a modern
environmental management system
have for SCHERDEL?
• reduction of environmental risks
• enhancement of the Company's contribution
to the environment, including
the environmental quality of the products
(goods and services)
• increase in the confidence of the
general public, the authorities, clients,
banks and insurance companies with
regard to the Company's contribution
to the environment
• saving in costs thanks to a systematic
and provident approach
• enhancement of staff motivation,
identification with and commitment to
the Company
• enhancement of corporate image and
competitiveness – at national and
international level – thanks to proof
of improved measures to safeguard
the environment.
In order to achieve these important
objectives, SCHERDEL is setting up an
environmental management system in
accordance with DIN EN ISO 14001.
Since mid September 2003, six production
locations in the area of Marktredwitz
and Röslau, in addition to the Head
Office itself, have been awarded certification
in accordance with this standard.
To achieve this, the following steps
were necessary: first of all the effects of
the production process on the environment
had to be recorded and assessed.
Objectives then had to be worked out
and the appropriate measures taken to
improve environmental protection.
Here, individual staff members were
given responsibility for specific tasks.
Finally the activities had to be monitored
to ensure that in-house performance
targets as well as those prescribed
by the EN ISO 14001 standard
were being met. The award of environmental
certification is further proof of
SCHERDEL's consistent efforts to
realize the basic principles of its corporate
philosophy.

MARKETPLACE
New automotive parts supplier
sets up business at Marienberg
Japanese-German joint venture, TOGO
SCHERDEL, makes automobile hose clamps
A
t the end of 2003 TOGO
SCHERDEL GmbH began series
production of automobile hose clamps.
These are used to seal tube connections
particularly in the area of the engine
and peripheral units. At present
the products are supplied to Toyota
factories in Europe. However, the
intention is to extend the clientele to
include additional European factories
of Japanese manufacturers as well as
European automobile manufacturers.
For Togo Seisakusyo Ltd. and the
SCHERDEL Group (which owns the
Marienberg spring-production factory in
the Erzgebirge region) this new automotive
parts supplier is the second joint
venture. The partnership started with
the founding of the Scherdel-Togo Cooperation
which has been manufacturing
piston-ring springs in Japan since
the autumn of 2002. Thanks to their
joint efforts, each enterprise has an
even better chance of presenting its expertise
in the marketplace. SCHERDEL
is the world's leading producer of piston-ring
springs and, thanks to this joint
venture, the Group can use Japan as a
base from which to enhance its presence
in the Asiatic region. As a leading
manufacturer of hose clamps, Togo will
also be able to strengthen its position
in Europe.
In order to consolidate the partnership
with Togo, and to become acquainted
with the Japanese attitude to production
and business in general, Stefan
Roth – Business Manager at TOGO
SCHERDEL GmbH – recently accompanied
a delegation of businessmen
from Saxony headed by Dr. Martin
Gillo, the Minister of Economic Affairs,
on a visit to Japanese automobile
manufacturers and parts suppliers.
Visit to our Japanese production
partner's factory:
from left to right: Mr. Stefan Roth,
Mr. Bauer (interpreter), Mr. Shigeo
Aiba and Dr. Martin Gillo, Minister
of Economic Affairs.
Further information can be obtained
from the e-mail address:
stefan.roth@scherdel.de
In order to gain a better insight
into the Japanese attitude to production
and business in general,
the delegation from Saxony took
the opportunity of visiting various
automobile manufacturers and
parts suppliers.
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The whole is more than the
sum of its parts
SCHERDEL Group offers clients an additional advantage
thanks to a wide variety of synergy effects
P
rogress based on tradition.
Maybe this motto sounds a bit
old-fashioned. And of course it
would be if we didn't revitalise it
continuously. We are constantly
striving after progress in all areas.
Engineering
springs
Development and
production of:
valve springs
compression springs
tension springs
disk springs
sleeve springs
torsion springs
retractor springs, constant
force springs and spiral
springs
spring elements for oil
distribution rings
Tools and
equipment
Development /
design /
production of:
punching tools
bending tools
stamping tools
follow-on composite tools
transfer tools
gauges, gripping devices
peripheral equipment for
automatic handling machines
and special machines
Stamping and
bending technology
Stampings and
shaped components:
thickness of material
0.1 - 3 mm
wire shapes: wire diameter
0.1 - 4 mm
Special machines
and systems
Development /
design /
production of:
high-speed and portal
milling machines
single-axis and
coordinate tables
linear robots
handling portals
machine-tool
components
special machines for
spring production
This is something we owe to ourselves
and to our customers. Our
aim is to save you time and money,
and present you with new opportunities.
Indeed the above motto
could be changed to: “At
Automation and
control technology
feeder equipment
assembly devices
ZARIAN single and multiaxis
motion systems
control systems for
special machines
KANYA aluminium profile
module systems
Vehicle
components
formed wire springs
vehicle seat frames:
riveted, upset,
clamped, welded
(projection welded,
spot welded,
pressure welded,
MIG-MAG welded)
Surface
finishing
SCHERDEL progress is a tradition”.
This is guaranteed by the potential
available in the individual companies
in the Group and it applies to
all the following divisions:
cleaning
phosphating
powder coating
chatodic electro
immersion painting
Delta “Magni” products
(Delta Tone, Delta Seal)
Connection
technology
Development /
design /
production of:
standard hose clamps
compact hose clamps
prestressed hose clamps
double hose clamps
Research and
development
testing of materials
and components
design and project work
on components, machines
and systems
development of systems
software development
information transfer
specialist tutoring for studies
and degree work
Assembly
technology
Development /
design /
production of:
spring packs for
automatic transmission
spring supports for car tailgates
return springs for variable valvetrain
systems in engines
pre-assembled tambour door
systems with integrated torsion
springs for the furniture industry
SCHERDEL GmbH, PO Box 4 40, 95604 Marktredwitz, Germany, Phone: +49 9 23 16 03-0, Fax: +49 9 23 16 03-4 62