Dr. Heinz Jörg Fuhrmann - Schau Verlag Hamburg

salzgitter
We couldn’t wait for Prince Charming”
“ Interview with Executive Board member Dr. Heinz Jörg Fuhrmann
Salzgitter AG has established a new division
following its acquisition of
Klöckner-Werke AG. In February
2008 we talked to Dr. Heinz Jörg
Fuhrmann, Deputy Chairman of the
Executive Board with a dual remit covering Finance
and the Technology Division, about diversification
and sustainable management.
stil Sustainability is one of those in-words that
many people seize upon. What do you associate
with the term?
dr. heinz jörg fuhrmann To me it means not
changing one’s values as if they were a shirt,
nor, for that matter, the opinions and the
goals that are based on those values. That applies
both privately and professionally.
stil What role does sustainability play in the
corporate development of Salzgitter AG?
fuhrmann A very decisive role … Preussag
Stahl AG and the company that preceded it
were already managed in the same way by our
predecessors in terms of business policy and
investment, albeit with significantly less freedom
of movement. The key elements of sustainable
corporate development as we understand
it are: Attractive products, modern and
well-maintained plant and facilities, loyalty to
the workforce and sound finances. These factors
don’t change.
They stand for dependability, inwardly and
outwardly. And they create an environment
in which the changes that we have made –
proactively, but never under duress – can be
accepted and can succeed.
stil Since September 2001 Salzgitter stock has
been included in the MDax and has recently
been considered as a candidate for the DAX.
What are the reasons behind this positive view?
fuhrmann Whether at a personal, individual
level or on a grand scale, there is no better
starting point than to be vastly underestimated.
If you then put on a far above average performance
that exceeds expectations, you have
the advantage of surprise. Of course, the steel
boom in recent years has helped us. Our competitors
all had the same wind behind them,
but the fact is that for years now we have outsailed
most of them in terms of both results
and the development in our share price.
stil The development in the price of Salzgitter
stock is something of a Cinderella story. What
were the factors behind this development? How
were new investors induced to take an interest
in the company?
fuhrmann We couldn’t wait for Prince Charm-
ing to appear. We had to shake off our wallflower
image for ourselves. On the other
hand, from 1999 onwards we have had progressively
more support from analysts and
fund managers who liked our take on business
policy – conservative and by no means
loud, but off the beaten track in terms of
strategy – and whom we number among our
friends to this day. My colleagues and I have
never promised results that we couldn’t deliver.
That works – that is sustainable.
stil For all that, we can’t help but ask what
happened recently, with the share price falling
by around a third …
fuhrmann … You’re right to ask, and it
gives me the opportunity first of all to point
out that this drop in price has absolutely
nothing to do either with Salzgitter’s results
or with our communication. The fact is that
a lot of institutional investors, mainly abroad,
have had to compensate for losses elsewhere
– we’re talking here about the subprime crisis
– by taking profits on positions that have
done very well, Salzgitter among them! What’s
more, long-term developments are far more
meaningful than short-term fluctuations.
stil The Salzgitter is a mid-sized steel and technology
group that is highly profitable. How does
the company protect itself against the influence
of shareholders who may be less than welcome?
fuhrmann Well, of course anyone can buy
shares and take a stake in Salzgitter AG. On
the other hand, it is equally legitimate for us
to appreciate shareholders who share our convictions
and are willing to stay with us over
the years. The very important 25.2 percent
stake held by the State of Lower Saxony together
with the 10 percent of the stock that
we hold ourselves adds up to a position that is
unlikely to be upset by “unwelcome suitors”.
stil State involvement is frowned on in Anglo-
American circles because it raises the specter of
restrictions on entrepreneurial freedom. How do
you counter this attitude?
fuhrmann Quite simply by pointing to our
competitive performance that clearly has not
suffered because of State involvement, and
also to the attitude that Anglo-Saxon governments
are just as likely to adopt in the face of
the impending takeover of a major company
by, let us say, not entirely welcome foreign investors!
It would be good to see a little more
self-confidence in this country – maybe we
should take a leaf out of France’s book.
stil With the acquisition of Klöckner-Werke
AG, Salzgitter laid the foundation for the new
Technology Division. What is the strategy behind
this?
fuhrmann Growth through diversification
into sectors of industry that are specifically
not subject to the rolled steel and tubes cycle.
This will give our Group stability, above all if
the steel boom should come to an end. Besides,
one should never be so doctrinaire as to
turn down opportunities that present themselves
just because they might call for a little
persuasion, internally as well as externally.
Mannesmannröhren-Werke was a prime
example, and Klöckner will be another.
stil How do you assess the potential for growth
and development in the field of beverage filling
and packaging machines?
fuhrmann Rising standards of living in general
and specifically the increasing call for hygiene
will ensure continuing strong demand,
in developing regions in particular. In our latitudes,
the consumer goods sector is powered
by continuous product innovation. We have
entered an industry that marches to a different
tune than steel and tubes, but is none the
less exciting. Here too, we look forward to
playing an active role in shaping the future.
stil Finally, one last question for the latest and
also the longest-serving Executive Board member
of the new Salzgitter AG: What have been
the most important features in the way the
Group has changed over recent years?
fuhrmann The most striking change has
taken place internally, but of course it has also
had some highly favorable effects on our external
image. When I joined Preussag Stahl
AG in 1995, and a year later when I was appointed
to the Executive Board, there was a
strict hierarchy in the way the business was
managed. Every decision of any relevance had
to be referred to the Boardroom. The relationship
between the directors was – to be diplomatic
– not quite ideal. Today, the Group is
largely decentralized and the atmosphere of
cooperation on the Executive Board – compared
with other companies – is very, very
good. Of course, in our present configuration
we have yet to be put to the test – in the face
of genuinely hard times, whether economically
or in terms of business policy – but I am
optimistic that we will pass with flying colors.
This pattern of transparent and cooperative
relations is being carried over to our employees,
and this is something that will benefit
all concerned.
Dr. Heinz Jörg Fuhrmann
Executive Board Member
Finance & Technology of Salzgitter AG
22 stil stil 23
PHOTO: ERIC SHAMBROOM