PDF [2.1 MB] - KSPG AG

CoC principles 

Rheinmetall has agreed principles 

of social responsibility with its 

European Works Council. Details about 

these Codes of Conduct on page 3 + 4. 

The latest news from the Rheinmetall Group 3/2004 

Rheinmetall’s Q1/2004 earnings boosted significantly 

Profit-focused performance 

Düsseldorf. Following its refocus on 

the core sectors of Automotive (Kolbenschmidt 

Pierburg) and Defence 

(Rheinmetall DeTec), the Düsseldorfbased 

Rheinmetall group again improved 

its earnings in the first quarter 

of 2004 (Q1/2004), EBIT surging 

by around 45 percent to € 32 million 

(up from € 22 million) and despite 

lower sales. The main reasons for 

this superior performance: cost reductions 

and efficiency enhancements 

from restructuring the business 

operations and last year’s disposal 

of loss-making operations. On 

a quarterly comparison, the EBIT margin 

climbed from 2.2 to 3.9 percent. 

heinmetall’s Q1/2004 EBT 

jumped by € 11 million to € 14 

million while net income at € 

12 million was easily above 

the Q1/2003 € 2 million. EpS 

(preferred stock) likewise improved appreciably 

from € 0.20 to € 0.34. Due to 

the voluntary early application of the 

International Financial Accounting 

Standards Board’s IFRS 3 rules as from 

January 1, 2004, the discontinued 

goodwill amortization upgraded the 

Q1/2004 EBIT of Automotive and Defence 

by € 1 million and € 3 million, 

respectively, that of Rheinmetall AG by 

€ 2 million, in comparison to a year ago. 

Q1/2004 sales by the Rheinmetall 

group amounted to € 821 million 

(down from € 1,018 million); adjusted 

for consolidation group changes and 

exchange rate effects, sales were up by 

almost 4 percent. So, despite the normally 

weak Q1 business, Rheinmetall is 

(Continued on page 4) 

Service center 

EZU has a lot to offer: as a 

service center for Rheinmetall Waffe 

Munition and customers from various 

branches of the industry (p. 9-13). 

Got off to a good start: with its two core sectors Automotive and Defence, the Rheinmetall 

group Düsseldorf further improved earnings in the first quarter of 2004. 

New facility in 

Czech Republic 

Ústí. More or less next door to its affiliate 

Metal a.s. in Ústí, Pierburg is 

presently building on a 20,000 m 2 

area a new plant in the Czech Republic. 

In the first construction phase, an 

office building and the first production 

shop with a total space of 3,400 

m 2 will be ready to move into by the 

start of 2005. The planned maximum 

plant area is 13,000 m 2 . In line 

with the minifactory concept, Pierburg 

s.r.o. will as from 2005 assemble 

electrical actuators, secondary 

air pumps and exhaust gas 

dampers with a workforce of around 

60 in Ústí. The plant will operate 

within the Pierburg group as a separate 

enterprise for assembling 

products and component packages. 

Strategic goals 

Soldat + Technik asked Rheinmetall’s 

chairman K. Eberhardt about 

his goals and the future strategic orientation 

of the Defence sector (p. 14+15). 

Divestment is 

now completed 

Lyngby/Hamburg. EMG EuroMarine 

Electronics GmbH, a Hamburgbased 

subsidiary wholly owned by 

Rheinmetall AG, has sold its majority 

stake in ECI EuroCom Industries A/S, 

Aalborg, Denmark, by fully transferring 

it to Thrane & Thrane A/S, Lyngby, 

Denmark, at a price equivalent to 

€ 14 million. The Rheinmetall group 

has now completed its withdrawal 

from the marine electronics business 

by disposing of its stake in EuroCom 

Industries. EuroCom Industries is 

among the leading suppliers of marine 

telecommunication electronics. 

By acquiring the majority stake in 

EuroCom Industries, Thrane & Thrane 

has rounded off its portfolio of 

maritime communication products.

Newsline 

German Army Medical Corps gets Duro 3 

Greater protection for 

troops on the ground 

Kassel. From Kassel straight to the 

Hindukush: forming part of Germany’s 

contribution to the International 

Security Assistance Force (ISAF) in 

Afghanistan, the first of a total of 

twelve Duro 3 mobile medical team 

vehicles was recently transferred to the 

Bundeswehr. Lieutenant General Hans- 

Heinrich Dieter, Deputy Chief of the 

General Staff of the Bundeswehr, took 

formal delivery of the vehicle made by 

Rheinmetall Landsysteme at a ceremony 

at the company’s Kassel plant. 

For the troops on the ground, the 

fielding of the Duro 3 as a replacement 

for the softskinned 

vehicles 

currently in service 

will mean a 

marked improvement 

in physical 

safety. 

Apart from the 

twelve vehicles 

earmarked for the 

Medical Corps, by 

the end of 2004 

Photo: Carsten Herwig 

the Bundeswehr 

will be receiving 

four military police 

versions of the vehicle 

as well as ten 

transporters for 

bomb disposal operations, 

all procured under an “immediate 

operational requirement” contract. 

The Bundeswehr’s total requirement 

for armored transport vehicles for its 

medical, military police, reconnais- 

ATAG: contract for 

V8 engine blocks 

Ingolstadt/Neckarsulm. Ready for 

series production any time now at KS 

Aluminium-Technologie AG is the V8 

4.2-liter engine block to be installed 

in the new Audi A8. Here, too, ATAG 

will be supplying Audi with a large 

share of the engine blocks. ATAG’s 

development team demonstrated 

rapid response in engineering within 

only 4 months a workable die for the 

sance, command & control, bomb disposal 

and communications elements is 

estimated to run to over 900 vehicles 

in the medium term. 

Thanks to the Duro 3 contract, Rheinmetall 

Landsysteme is able to build on 

its global reputation for excellence as a 

developer and manufacturer of highquality, 

custom-designed wheeled armored 

vehicles. Apart from a high level 

of crew protection, the vehicle features 

the utmost in modularity, mobility and 

flexibility. Thanks to its modular design, 

this state-of-the-art multipurpose 

vehicle can be quickly configured to 

perform a wide 

variety of different 

missions. 

Weighing just 12 

tons, moreover, 

it can be airlifted 

in transport 

aircraft like the 

C-130 Hercules, 

C-160 Transall or 

A 400M. 

Manufactured 

in exclusive cooperation 

with 

the Swiss company 

Mowag, 

the Duro 3 is an 

ultramodern, 

multipurpose 

6x6 wheeled armored vehicle. It is an 

armored version of the Duro family of 

non-armored vehicles, more than 

3,500 of which have already been successfully 

fielded, primarily in the Swiss 

Army. 

From Kassel straight to the Hindukush: 

forming part of Germany’s contribution 

to the International Security Assistance 

Force, the first of a total of twelve Duro 3 

mobile medical team vehicles was recently 

transferred to the Bundeswehr. 

engine block and then building it together 

with a specialist die-maker. 

Says Horst Binnig, CEO at ATAG: 

“This short lead-up period of a mere 

6 months for the production of 

testable engine blocks is not only for 

us a benchmark. Essential to the 

success of the project was KS ATAG’s 

vast experience in developing and 

building Alusil engine blocks which, 

in turn, allowed us to respond with 

such speed to the demanding challenges 

posed by our customer Audi 

AG.” 

2 

Trittau. With the sale of Nico 

Feuerwerk GmbH of Trittau, Germany 

to Pyro Contact GmbH of 

Berlin, Rheinmetall DeTec AG has 

completed the process of removing 

non-core civil-sector product 

areas from its portfolio. With 

retroactive effect on January 1, 

2004, Pyro Contact GmbH has taken 

up an initial 51%-share in the 

unit. Rheinmetall DeTec will continue 

to hold a 49%-interest until 

March 2005, before transfering its 

remaining stake in the business (in 

three blocks) to Pyro Contact 

GmbH by the end of 2006. 

For Rheinmetall DeTec, the disposal 

of its civil pyrotechnics unit 

represents a further step in its systematic 

policy of focusing on its 

core competencies in the domain 

of ground forces technology, in 

which the group generated sales of 

around € 1.6 billion in 2003. The 

Nico Feuerwerk: 

civil sector sold 

development and production of pyrotechnical 

products for military 

and law enforcement applications 

will continue to be a central competency 

of Rheinmetall DeTec AG in 

future. As a result, the group’s locations 

at Trittau (near Hamburg) and 

Silberhütte in the Harz Mountains 

will go on playing an important role 

in its Weapons & Ammunition division. 

The company provides law 

enforcement agencies and armed 

forces around the world with technologically 

advanced self-protection 

systems for applications on 

the ground, at sea and in the air, 

as well as successful products in 

the medium-caliber range such as 

effect and practice munitions. 

Newsline is a summary of the most 

important news articles published 

in “Das Profil”, the company newspaper 

of the Rheinmetall group 

Publisher: Rheinmetall AG 

P.O. Box 10 42 61, D-40033 Düsseldorf 

newsline@rheinmetall-ag.com 

Responsible: Peter Rücker 

Editor-in-chief: Rolf D. Schneider 

Issue: July 2004

Newsline 

Rheinmetall AG endorses Codes of Conduct 

Social responsibility is key aspect 

Düsseldorf. Operating in a responsible 

manner across the globe: in the 

wake of the growing internationalization 

and globalization of its business 

performance – after all, some 

62% of sales revenues are already 

generated abroad (70% planned for 

2006) – Rheinmetall has agreed principles 

of social responsibility with its 

European Works Council. These Codes 

of Conduct (CoC) which are also based 

on an initiative (Global Compact) 

launched by UN Secretary General Kofi 

Annan in 1999 to promote responsible 

business practices were accepted by 

the European Metalworkers’ Federation 

(EMF) and the International Metalworkers’ 

Federation (IMF) at the time 

of endorsement. 

Under the CoC 

agreement, the 

Düsseldorf-based 

group backs the 

initiative to promote 

responsible 

business practice 

in the advancing 

process of internationalization 

and 

globalization, and 

to support the generally 

accepted 

core labor standards 

of the International 

Labor Organization 

(ILO). 

Additionally, as 

stated in the preamble 

of the CoC, 

Rheinmetall is convinced 

that social 

responsibility is an 

important factor 

for the long-term success of the group 

and is therefore contributing toward international 

peace and prosperity in the 

future. It is expressly pointed out that 

the short, medium and long term competitiveness 

of the business (which 

generated sales of around € 4.248 billion 

in 2003) is crucial to the achievement 

of this goal. 

Rheinmetall chairman Klaus Eberhardt: 

“Our social responsibility is also 

an essential part of the group’s valueoriented 

business management. Within 

the framework of a corporate policy 

aimed at sustainable development, 

Rheinmetall AG will therefore do everything 

in its power to combine the eco- 

nomic, environmental and social goals 

of this agreement with the medium and 

long term strategies and plans as well 

as daily business decisions.” 

While seeking to assure customer 

satisfaction and global competitiveness, 

Eberhardt has also emphasized 

that the Rheinmetall group members 

aim to satisfy these general codes of 

conduct not only with their products 

and services, but also through their actions 

at their European and international 

locations, and their business 

culture. 

Joachim Stöber, deputy supervisory 

board chairman of Rheinmetall AG and 

coordinator of the European Metalworkers’ 

Federation, rates this com- 

Mutual backing for the agreed principles of social responsibility valid at all companies 

under the industrial management of Rheinmetall AG: Chairman Klaus 

Eberhardt (c), Joachim Stöber (r), deputy chairman of the supervisory board of 

Rheinmetall AG, and Peter Winter (l), chairman of the European works council. 

mitment (which applies to all companies 

under Rheinmetall’s industrial 

management across the world) in 

much the same way. In the words of 

Stöber, who was one of the key initiators 

of the CoC project: “International 

agreements of this type are a relatively 

new and global instrument aimed at 

securing fundamental employee rights 

in all companies of a multinational 

group. By supporting the CoC, Rheinmetall 

has agreed to adhere to the 

core labor standards of the International 

Labor Organization (ILO).” The 

57 year-old trade unionist points out 

that – in adhering to the Codes of Conduct 

– the group will improve its social 

3 

and ecological acceptability by the 

employees, trade unions and political 

circles, as well as its customers, and at 

the same time help to secure its positive 

image in the general public as a 

result of corresponding media reports. 

According to Peter Winter, chairman 

of the European works council, the initiative 

of the International Metalworkers’ 

Federation and the German metalworkers’ 

union IG Metall demonstrates 

that companies operating on an international 

scale can manage their business 

with a focus on social responsibilities: 

“Under the CoC agreement which 

has now been implemented, we are trying 

to set a framework for further development 

so that social responsibility 

will be a key element 

of value-oriented 

business 

management of 

the Rheinmetall 

group. We believe 

our initiative is in 

the best interest 

of both sides and 

expect positive reactions, 

also from 

our customers 

and financial markets.” 

Joachim Stöber 

says: “According 

to a study by the 

OECD (Organization 

for Economic 

Cooperation and 

Photo: Michael Rennertz 

Development 

based in Paris) in 

February 2001, 

the implementation 

of core labor 

standards as the 

essential element of the Codes of Conduct 

has largely had a positive effect 

on business operations, actions and 

employment. These standards tend to 

better productivity, increase innovation 

capabilities and improve the abilities 

to react to negative influences in 

foreign trade.” Stöber adds that, according 

to the OECD, countries in which 

the core labor standards are respected 

generally have a higher share in direct 

foreign investments. “Moreover, bringing 

working conditions up to a minimum 

standard allows cost savings 

since both the productivity and the 

product quality will improve.” (More 

details on page 4.)

inciples of social responsibility 

applicable to all companies 

under the industrial 

leadership of Rheinmetall 

around the world: The Codes 

of Conduct (CoC) agreed with the Düsseldorf-based 

group lay down the 

compliance with the internationally 

agreed human rights for multinational 

companies. Further principles advocated 

by the supporters of this social 

charter include the equality of opportunity, 

the elimination of discrimination, 

the rejection of forced labor of 

any form, especially also with a view 

to the existence of widespread child 

labor in many countries. 

Working conditions are one of the 

main focuses of the CoC agreement, 

defining principles with respect to 

payment/remuneration (keyword: 

core labor standards), working times, 

(Continued from page 1) 

also making good progress in terms of 

organic sales performance. Q1/2004 order 

intake by the group totaled € 884 

million (down from € 1,095 million) but 

like-for-like was up by over 10 percent. At 

the end of March 

2004, Rheinmetall 

employed a workforce 

of 18,705, the sharp 

30-percent shrinkage 

being due to the portfolio 

pruning program. 

The Automotive sector 

generated sales of 

€ 495 million, repeating 

the high year-earlier 

level. Allowing for 

structural and exchange 

rate effects, 

Automotive showed 

a growth of 2.4 percent. 

Most of the 

Rheinmetall group’s 

Q1/2004 EBIT increase 

came from Kolbenschmidt 

Pierburg 

whose EBIT of € 40 

million was € 18 million above the yearearlier’s(€ 

9 million of this year’s resulting 

from the sale of the remaining stake 

in Pierburg Instruments GmbH). 

Q1/2004 sales by Defence reached 

EUR 243 million (down from € 300 million), 

the shortfall being attributable to 

Newsline 

industrial and health protection, 

qualification and the environment 

largely on the basis of national regulations 

and agreements. For instance, 

the Düsseldorf-based group 

has – as in the past – committed itself 

to support qualification measures 

which will help to promote the 

technical and professional skills of its 

employees. 

Rheinmetall’s 

environmental 

policies are also 

in line with the Codes of Conduct and 

the products and services of the 

group will continue to be environmentally 

compatible in future, too. The 

group will cooperate with local institutions 

to assure the protection and 

improvement of living and environmental 

conditions – as set forth in the 

CoC – in order to achieve and meet 

Rheinmetall’s Q1/2004 earnings boosted significantly 

Profit-focused performance 

the smaller consolidation group. Adjusted 

for these differences, Defence 

showed an organic growth of 5.3 percent. 

As in previous first quarters, 

Q1/2004 reported a negative EBIT for 

invoicing reasons related to business 

cycles typical of government contrac- 

tors. Nonetheless and despite the 

earnings shortfall from the splitting-off 

of the Naval Systems unit, EBIT did improve 

– by € 2 million to a negative 

EUR 10 million and dead on target. 

At the group’s annual stockholders’ 

meeting in Berlin, Rheinmetall AG’s 

4 

the relevant international, European 

and national environmental standards. 

Rheinmetall also acknowledges the 

employees’ right to freedom of association 

and the role/tasks of its selected 

employee representatives. 

Mention is e.g. made of the fact that 

Rheinmetall AG, its employees and 

Principles laid down 

Optimistic about business developments in 2004: Rheinmetall's executive board 

chairman Klaus Eberhardt at the group's annual stockholders' meeting in Berlin. 

the business and trade union employee 

representations will cooperate 

in an open and constructive manner 

to resolve conflicts in the mutual 

interest of both parties. The reconciliation 

of economic interests of the 

group and its employees is sought to 

be achieved in a fair and just manner. 

CEO Klaus Eberhardt stated: “Rheinmetall 

is reaping in 2004 the rewards 

of its rebuilding efforts. Our core sectors 

of Automotive and Defence are 

both profitable, internationally successful 

players that command strong 

market respect. Kolbenschmidt Pierburg 

enjoys vast 

competence in dynamic 

growth segments 

while Rheinmetall 

DeTec as 

leading European 

systems supplier 

for the army has 

just the right products 

to help shape 

the initiated transformation 

of international 

forces.” 

On the basis of 

the new corporate 

structure and economic 

recovery 

forecasts, Rhein- 

Photo: Thomas Klink 

metall expects fis- 

cal 2004 to show 

an organic growth 

in the region of 5 

percent and report group sales of € 3.5 

billion and an EBIT margin improved on 

2003. Eberhardt: “We’re off to a flying 

start in 2004 and, given the recovery in 

the global economy and, above all, our 

strong market positions, we are confident 

as to what the year will bring.”

Photo: BMW Group 

n spite of the slack auto market in 

the USA, the three divisions of Kolbenschmidt 

Pierburg AG in North 

America – KS Kolben, Pierburg 

and KS Gleitlager – plan to boost 

sales by more than 55% in the 

coming four years. 

Automotive sales by the North 

American companies currently total 

around 320 million US dollars (approx. 

270 million euros). Kolbenschmidt 

Pierburg plans to surpass the 

500 million US dollar mark in the year 

2008. This sales gain is to be generated 

by the three North American mainstays 

of the group. 

Commenting on the sales goals at a 

Detroit press conference attended by 

Newsline 

Reputation assures market presence: Kolbenschmidt Pierburg delivers numerous components for the BMW cabriolet 6-series. 

Kolbenschmidt Pierburg group almost doubled its year-earlier € 22.2 million 

Automotive raises its Q1 earnings 

Düsseldorf. With an EBIT of € 40.5 

million in the first quarter 0f 2004 

(Q1/2004), the Kolbenschmidt Pierburg 

group almost doubled its yearearlier 

€ 22.2 million. After subtracting 

the book gain from selling the residual 

49 percent held in Pierburg Instruments 

GmbH, there still remains a 44.1percent 

EBIT growth over Q1/2003. EBT 

for the period rose from € 15.3 million 

to € 31.9 million. 

At € 494.7 million (in absolute terms 

at the year-earlier level) and, when adjusted 

for exchange rate and structural 

effects, equivalent to a rise of 2.4 percent, 

the Q1/2004 sales figure again 

outpaced market growth of around 2 

percent. Not included in the consolidated 

figures is the 25-percent sales 

advance shown by the two Chinese 

joint ventures as these are carried at 

equity. At March 31, 2004, the Kolbenschmidt 

Pierburg group had a world- 

wide workforce of 11,369 (down 2.4 

percent), including 48.5 percent employed 

outside of Germany (up from 

48.1 percent). Most of the retrenchments 

are the consequence of restructuring 

programs in Germany and Italy. 

This successful start into 2004 represents 

the continuation of organic 

growth and further advances in operating 

profitability. Assuming that the 

global economy and automobile demand 

both develop at a steady pace, 

the group expects to close 2004 with 

earnings in excess of 2003. 

The situation in the five Kolbenschmidt 

Pierburg divisions indicates 

that the group recognized early on the 

OEM trend toward further emission and 

weight reductions, the growing insistence 

on eco-friendly materials and, at 

the same time, the rising demands on 

engine performance. All divisions contributed 

toward the group’s EBIT, a ma- 

American journalists during the SAE 

Congress (Society of Automotive Engineers), 

Dr Gerd Kleinert, chairman of 

the executive board of Kolbenschmidt 

Pierburg AG stated: “The growth potential 

for Pierburg, pistons and plain 

bearings in North America is very 

promising. We will continue to invest 

in this market in order to secure future 

growth in North America and 

support our customers there even 

more actively.” 

Various actions have been launched 

to achieve this. Besides relocating 

plain bearing production to Fountain 

5 

jor share in the earnings rise being 

shown by Pierburg through higher 

sales, a superior product mix and more 

competitive cost structures. The Pistons 

division’s EBIT was also clearly up 

by an adjusted 27.8 percent, the Plain 

Bearings division raising its EBIT by a 

steep 28.9 percent thanks to the successful 

restructuring of its American 

subsidiary KS Bearings. 

Ongoing improvements to production 

cycles and again better capacity utilization 

helped return the Aluminum Technology 

division to a black EBIT in 

Q1/2004 after its year-earlier red € 3 million. 

With a Q1 EBIT of € 3.9 million, the 

Motor Service division likewise much 

outgrew its prior-year € 2.1 million. 

The chief sources of sales growth in 

the course of Q1/2004 were the Pierburg 

division and Motor Service whose 

acquired engine parts operations 

brought about a surge in sales. 

Inn in South Carolina, a joint sales and 

engineering office for all divisions has 

been opened in the important auto city 

Detroit. Additionally, Karl Schmidt 

Unisia, an important representative of 

Kolbenschmidt Pierburg’s piston division 

in the USA, has intensified activities 

and investments in the recent past. 

Sales boost targeted in America 

Existing production capacities have 

been expanded and a new engine test 

center has been inaugurated at the 

site in Fort Wayne/Indiana. Investments 

in this sector alone have totaled 

nearly 40 million US dollars (around 34 

million €) in the last two years.

tarting 2007, the European 

Commission plans 

to invest considerable 

funds in a research and 

technology development 

program to improve security 

in Europe. The manner 

in which the European Security Research 

Program (ESRP) will ultimately 

be implemented and the exact amount 

of research funds available are as yet 

unclear. The experience gained in the 

course of the so-called Preparatory Action 

launched at the beginning of 2004 

will be taken into account for the actual 

performance of the program. The European 

agency in the field of defence capabilities, 

development, research, acquisition 

and armaments – this agency 

is still to be created – will also play an 

important role in this context. Rheinmetall 

DeTec AG has been following developments 

very closely and is represented 

in various of the working groups 

involved in the Preparatory Action. 

The European Commission has initiated 

the planned security program in 

reaction to the challenges associated 

with the EU’s eastern enlargement and 

the changed security situation in re- 

cent years, leading to the further development 

of EU common foreign and security 

policy toward a European security 

and defence policy. 

Generally speaking, the Commission 

believes that not enough money is being 

spent on research and development 

in Europe, and that the limited 

funds are not being used optimally, especially 

where security aspects are 

concerned. For instance, various EU 

member states are working on the 

same subjects independently of one 

another since each of these countries 

wants to have a good standing in as 

many areas as possible. This means 

that inadequate funds are available for 

the individual areas. Such a lack of coordination 

has a negative impact on 

the competitiveness of the industry. 

In view of the increasingly serious 

threats posed by international terrorism, 

the propagation of weapons of 

mass destruction, and organized crime 

that is partly assisted by weaker states, 

it has become more and more difficult 

to assure the security of European citizens. 

The recent enlargement of the EU 

by another ten states (Estonia, Latvia, 

Lithuania, Poland, Hungary, Czech Republic, 

Slovakia, Slovenia, Malta and 

Newsline 

Cyprus) has also brought EU borders 

geographically closer to areas of conflict. 

As a community with (now) 25 

member states and a total population 

of 455 million producing around one 

quarter of the world’s gross national 

product, the European Union has – economically 

– developed into a global 

player. The EU must therefore be able 

and willing to contribute toward international 

security. This also implies that 

it must help toward greater security and 

stability jointly with partners outside 

the European territory, if necessary also 

supported by its armed forces. 

The question as to whether Europe 

will be able to master this challenge also 

depends on the availability of a competitive 

European technology base. To 

maintain and expand this, coordinated 

research and adequate funding are essential. 

Although the EU has gained extensive 

experience in civil community 

research programs with its so-called 

Framework Programs, it is breaking new 

ground with its ESRP initiative. The collaboration 

between companies in the 

security sector raises new questions 

which remain to be answered. These 

concern the way in which information 

classified as confidential or secret is 

handled, national priorities and interests 

and also technical, contractual and 

implementation aspects. 

To answer these questions, the 

Preparatory Action for the Enhancement 

of European Industrial Potential 

in the Field of Security Research was 

launched at the beginning of this year. 

This action program seeks to establish 

the conceptual bases for the ESRP by 

the year 2006. It is also hoped that first 

results for top-priority problems may 

already be reached with a limited number 

of (test) projects. All in all, around 

€ 65 million have been allocated to the 

Preparatory Action program. 

The European defence industry has 

shown strong interest in the security 

research, and also in the Preparatory 

Action initiative although only limited 

funds are available for this (in 2004, 

approx. € 15 million). It is generally assumed 

that the national research and 

technology budgets (in Germany, the 

research and technology budget of the 

German MoD) will become less important 

with the advent of the ESRP. Companies 

are therefore using the Preparatory 

Action to get prepared for the allocation 

of research funds from Brussels. 

6 

Rheinmetall DeTec AG has been following 

related developments closely 

since early 2003. One focus has been 

the involvement in national and European 

industrial associations. Rheinmetall 

DeTec employees are helping to 

shape the security program through 

their participation in several security 

research working groups. 

The Preparatory Action aims to address 

these missions: 

1. Achieving interoperability and integrated 

systems for information and 

communication 

2. Optimizing security and protection 

of networked systems 

3. Improving situation awareness 

4. Protection against terrorism (including 

bio-terrorism and incidents 

with biological, chemical and other 

substances) 

5. Enhancing crisis management (including 

evacuation, search and rescue 

measures, active agents control and remediation) 

A so-called Security Mission Industry 

Group (SMIG) has been created for 

each of these missions. These working 

groups are composed of experts from 

EU launches security research 

companies interested in performing 

projects in the respective area. The 

SMIG teams are tasked with bundling 

the interests of the industry, agreeing 

on two to three concrete projects and 

setting priorities. The SMIG groups also 

provide appropriate platforms for forging 

partnerships for project work. 

Representatives of Rheinmetall Defence 

are members of SMIG 3 and SMIG 

4, which address the mentioned priority 

missions concerning the improvement 

of situation awareness and the protection 

against terrorism. The leaders of 

the working groups report to the socalled 

Industry 

Working Group on 

Security (IWGS) in 

which the Düsseldorf-based 

group 

also has a representative. 

Calls for 

project proposals 

to be dealt with under 

the Preparatory 

Action program are 

published in the 

Dr. Joachim Bremer 

Official Journal of the European Commission. 

Dr. Joachim Bremer* 

* Dr. Joachim Bremer, the author of this Newsline article, 

specializes in strategic technology development at 

Rheinmetall DeTec AG in Düsseldorf.

Athens. The establishment of 

Rheinmetall Hellas S.A. in Athens 

represents a further important step in 

the operational implementation of 

Rheinmetall DeTec’sstrategyofinternationalization. 

In founding the new 

company, the Düsseldorf-based 

group is bringing together under a 

single banner its full phalanx of activities 

in Greece, the objective being to 

exploit new business opportunities 

and existing synergies in the longstanding 

Nato member state. Appointed 

as Managing Director of 

Rheinmetall Hellas S.A. is Michael 

Heinzemann, hitherto a member of 

the management board of the former 

STN Atlas Elektronik GmbH (now 

Rheinmetall Defence Electronics). 

Company 

in Greece 

The systematic internationalization 

of the Rheinmetall DeTec group 

aims at achieving a sustained increase 

in sales outside Germany, 

which in fiscal 2003 already 

amounted to some 57% of total 

turnover. In Greece alone, Rheinmetall 

DeTec expects annual sales 

in excess of € 100 million. 

For the Greek government, an important 

defence technology customer, 

Rheinmetall Hellas S.A. will 

constitute a competent point of contact, 

representing the full range of 

Rheinmetall defence products and 

services, ranging from the development 

and production of new defence 

technology products to the 

modernization of existing systems 

and the provision of services such 

as maintenance and simulationbased 

training. 

Rheinmetall Hellas S.A. is owned 

in equal measure by Rheinmetall 

Defence Electronics GmbH of Bremen, 

Rheinmetall Waffe und Munition 

GmbH of Unterlüß, Rheinmetall 

Landsysteme GmbH of Kiel, 

and Oerlikon Contraves AG of 

Zurich/Switzerland. 

Newsline 

Fast, small and reliable 

New electric divert-air 

valve for turbocharger 

Neuss. Pierburg GmbH is the world’s 

first manufacturer to series-produce a 

completely new kind of electric divert-air 

valve which is smaller, more effective, and 

less costly than its pneumatic cousins. 

The divert-air valve goes into action 

when the turbocharged gasoline engine 

switches from acceleration to deceleration 

or coasting modes. Under 

these circumstances the charger, because 

of its inherent inertia, is still generating 

pressure which is not required 

by the intake system. So in order not to 

damage the closed throttle valve and 

the turbine, the divert-air valve opens a 

bypass to allow instant pressure drop. 

On gasoline engines, pneumatically 

actuated valves have long been a stan- 

dard fixture while, on diesels, there is 

no need for such a mechanism since 

they do not normally have a throttle 

valve. Switching over from pneumatic 

to electric valve actuation offers a number 

of advantages: fewer parts, 50 to 

70 percent weight reductions, 80 to 90 

percent space savings, greater dependability 

and 50 to 70 percent shorter 

switching response, improved sealing 

(only 0.02 liter leakage per hour), 

cost savings of 30 to 50 percent. 

The superior switching response of this 

Pierburg innovation is due to a solenoid 

valve that takes 30 to 70 milliseconds to 

open and 30 milliseconds to close. This 

compares with the 90 to 150 millisec- 

7 

onds needed by pneumatic valves to do 

the same jobs. The shorter response 

builds up pressure more quickly when 

the driver reverts to acceleration mode. 

The characteristic turbo lag is less and 

now barely perceptible. 

Pierburg is already supplying this product 

to three turbocharger manufacturers: 

Borg Warner, Mitsubishi, and Garrett. 

The pilot OEMs are the Volkswagen 

Group which launched a 2.0-liter FSI turbocharged 

engine in the spring of 2004, 

and turbocharger pioneer Saab with its 

2.8-liter engine. Pierburg presently has 

contracted annually 500,000 units to be 

built at its Neuss plant. 

The years ahead will see a significant 

growth in the market for turbocharged 

Michael Thiery (l.), project group leader for solenoid valve development and Albert 

Denne, head of solenoid valve development at Neuss, discuss the new valve. 

gasoline engines. The trend is for 

downsized engines that deliver the 

same performance for less fuel. What’s 

more, the turbocharger generates superior 

torque at lower rpm while harmonizing 

well with the burgeoning 

number of direct-injection gasoline engines 

that are noted for exploiting their 

fuel-saving potentials under cruising 

conditions. In fact, by 2008 the market 

is expected to rise to around five million 

turbocharged gasoline engines annually 

of which Pierburg plans to equip 

3 to 3.5 million with its electric divertair 

valves. By then, the valve’s weight, 

size and production costs will all have 

been optimized even further. 

Photo: Michael Rennertz

Photo: Audi AG 

Engine blocks 

for new Audi A6 

Ingolstadt/Neckarsulm. KS Aluminium-Technologie 

AG (ATAG) is 

the sole supplier of the new Audi 

A6 gasoline engine block available 

in 2.4- and 3.2-liter options. The 

2.4-liter version with multipoint injection 

develops 130 kW and complies 

with EU4, as does the 3.2liter 

FSI V6 with 166 kW, a 169.5-kg 

engine with a maximum torque of 

330 Nm. On the new V6 engine 

block Audi wanted Alusil, a lowpressure 

die-cast hypereutectic 

aluminum-silicon alloy. The new 

engine block would dispense with 

the gray-cast iron sleeves inserted 

into the cylinder bores of its predecessor.In 

the case of this alloy, the 

silicon crystals exposed while the 

engine block is being machined, 

form an ideal, wear-resistant mating 

surface for the pistons. 

No cylinder sleeves—this also 

means a more compact engine 

block design as such. Other advantages 

of this all-aluminum block 

are its improved heat conductivity 

compared with gray cast iron and 

reduced cylinder warpage. Superior 

heat conductivity, in turn, 

lessens the thermal load on the engine 

and allows greater volumetric 

efficiency. Developed inside only 3 

years as a joint effort between Audi 

and KS ATAG, the V6 gasoline engine 

block project absorbed heavy 

double-digit million euro expenditures 

on the part of the Neckarsulm-based 

specialist. Items on 

the bill included casting cells, machining 

centers and peripherals 

such as sawing and decoring stations, 

and leakage testers. 

Newsline 

First RLS system delivered – further orders to come 

Büffel 3 for Swiss Army 

Thun/Kiel. Reinforcement for the 

Swiss armored forces: The Swiss Army 

recently took delivery of the first of 25 

armored recovery vehicles (ARV) approved 

under the Armament Program 

2001. The latest version of the ARV 3 

combines advanced recovery technologies 

with the proven assemblies of the 

Leopard 2 main battle tank, meeting 

the more stringent requirements of 

modern-day forces. 

Tailored specifically to Swiss specifications, 

the Büffel ARV version which 

has now 

been handed 

over is 

d i s t i n - 

guished by 

enhanced 

performance 

characteristics 

and an 

improved 

functionality. 

These systemadvantages 

are ensured 

by a 

fourth integrated 

crew 

member, an 

extended 

working range, a modified support and 

clearance system, improved handling 

characteristics, a better view, greater 

protection and more stowage space. 

Important parts for production of the 

recovery vehicle in Germany – such as 

the crane jib, and the support and clear- 


8 

ance system – are being supplied by the 

Swiss industry under a co-production 

agreement. In addition, drive assemblies 

and further running gear components 

are being taken from Swiss Army 

reserve stocks from armasuisse (Bern). 

As the procurement and technology center 

of the Federal Department of 

Defence, Civil Protection and Sports 

DDPS, armasuisse is in charge of the development, 

evaluation, procurement, 

and disposal of equipment and infrastructure 

for the armed forces and other 

customers. 

The new 

ARV 3 is the 

first vehicle 

of the recovery 

vehicle 

generation 

to have a 

fourth integrated 

crew 

member. 

The entire 

equipment 

and stowage 

has been 

adapted to 

Swiss conditions. 

The second 

ARV will be converted to a diagnostic 

trainer which can be modified back 

into the normal vehicle configuration 

relatively quickly. Other countries to 

have ordered the latest armored recovery 

vehicle from Rheinmetall Landsysteme 

GmbH are Sweden and Greece. 

The first of 25 armored recovery vehicles 3 approved 

under the Armament Program 2001 was recently 

handed over to the Swiss Army in Thun. 

Photo: Ulli Ullmann 

ATAG wins Porsche 

Supplier Award 

Leipzig/Stuttgart. Important distinction: 

KS Aluminium-Technologie 

AG (ATAG) recently won the Porsche 

Supplier Award 2003 at the Porsche 

Supplier Day held in Leipzig. The automaker 

from Stuttgart awarded the 

prize to its ten best suppliers. Joining 

the illustrious group of top suppliers 

for the first time, Neckarsulm-based 

specialist was awarded the distinction 

thanks to the excellent standard 

of its Porsche engine blocks and the 

production launch of the eight-cylinder 

engine block for the Porsche 

Cayenne (see picture on right).

Photo: Katja Kletzke 

Newsline 

Calibration of test equipment – another key service with which the EZU can excel on civil markets. 

EZU test center has a lot to offer 

Serving the military and civil sector 

Unterlüß. Tucked away in the woodland of the Lüneburg Heath in Lower Saxony, 

the EZU (Erprobungszentrum Unterlüß) in Unterlüß has a lot to offer: as a service 

center for the restructured Rheinmetall Waffe Munition GmbH and numerous 

customers from various branches of the industry, it has both the space and the 

capabilities required to test large caliber weapon systems and ammunitions. As 

one of the very few privately owned military proving grounds in the world, the 

EZU also has a lot to offer for non-military clients. Many of the measurement and 

test techniques applied at the EZU are unrivaled in the world. Newsline recently 

visited the 50 km 2 heathland and test facilities to find out more about the EZU. 

boiling hot or pouring with 

rain: “Our working day in 

Unterlüß starts at sunrise 

and ends when the sun 

sets, and a lot of our time 

is spent outdoors,” says 

Karsten Lunkeit, the engineer 

in charge of the EZU and the Quality 

Management department. For the 

110-strong staff this mainly involves: 

assembling, disassembling, testing, 

measuring and improving. In the heart 

of the heathland in Lower Saxony, armored 

and other large vehicles are 

“heated” under tropical conditions in 

the temperature testing facility, ticket 

machines have to function properly 

even under arctic conditions. Unique 

systems are used to photograph tank 

ammunition as it leaves the muzzle only 

to burst in a huge catch box shortly 

afterwards, and windows with security 

glass have to withstand explosions. 

Many a gas tank for cars has been detonated 

in Unterlüß to test traffic safety. 

As a service center not only for the 

weapons and ammunitions sector, the 

EZU is undergoing a process of change 

to diversify its activities, especially in 

times of changing global conditions. 

“We found that our proving ground is 

extremely interesting and well suited 

for tests in connection with anti-terror 

actions like, for example, the protection 

of buildings, and we are currently holding 

talks with interested customers,” 

says Ellen Dudek, EZU sales manager. 

On the rare occasions when there is 

actually no firing on the range, staff 

busy themselves with tidying up the 

proving ground and servicing the test 

equipment. No firing also means that 

the employees of the EZU can move 

around the site without restriction. Of 

course, traffic continues on the EZU site 

A team with a clear strategic goal: sales manager Ellen Dudek and EZU boss 

Karsten Lunkeit are increasingly diversifying the activities of the EZU in Unterlüß 

(which has a wealth of experience in testing and qualifying military products) into 

the non-military sector. EZU specialists visit their customers when requested to do so. 

9 

even during firing sessions, although 

traffic is strictly controlled at such times 

– even on the national road which 

crosses the site. Naturally, not the entire 

area is prohibited: depending on 

the customer’s requirements and the 

type of tests being performed, only certain 

areas are used – i.e. planning is 

completely flexible to suit the respective 

needs. After all, customized solutions 

are part of the EZU’s program. 

For instance, the temperature test facility 

which has been in operation for 

30 years now is one of the most modern 

of its kind. The two chambers with 

a total capacity of just under 1,000 m 2 

have served the classic requirements 

imposed on military vehicles since the 

very beginnings: will the engine of an 

armored vehicle start at –40°C, how 

hot does it get at outside temperatures 

of +40°C and how does the temperature 

affect the weapon system? The 

(Continued on page 10) 

Photo/Composing: Katja Kletzke

Unterlüß. EADS/LFK (Lenkflugkörper) 

are carrying out mechanical 

and electronic modification 

work on the radar unit of the 

Patriot weapon system as part of 

the ongoing capability upgrade 

program. With mechanical modifications 

complete and new functional 

components installed in Unterschleißheim, 

the system is now 

being taken into operation stepwise. 

To this end, the individual 

functional areas are being adjusted 

to one another in a test station 

in Unterschleißheim, parameters 

are being set, performance data 

verified and parameters readjusted 

as necessary. 

When this phase has been completed, 

the radar unit will be transported 

to Unterlüß where it will initially 

be subjected to thermal tests, 

including the exposure to extreme 

hot and cold conditions in the temperature 

test system. Such tests 

serve to identify and replace temperature-sensitive 

assemblies in order 

to warrant the proper function 

of the radar unit when operated under 

extreme climatic conditions. 

EADS tests 

Patriot radar 

Thermal tests will be followed by 

performance tests. Based on the 

requirements of the customer and 

in cooperation with Rheinmetall, 

an active measurement route has 

been set up at the fire position 

East, the related infrastructure being 

provided by the experts from 

the test center in Unterlüß. The 

measurement route is being used 

to simulate – with the aid of a simulator 

– defined targets and interference 

signals via two parabolic 

antennas on mobile mast systems 

for the radar unit and to „feed“ 

these into the unit via an air route. 

Subsequent evaluations will be 

carried out with a test station. 

Once tests have been completed 

and the proper function has been 

demonstrated, EADS/LFK will hand 

over the radar unit to the customer 

(Federal Office for Defence Technology 

and Procurement) and the 

user (German Air Force) in Unterlüß. 

The project is a good example 

of the excellent cooperation between 

different manufacturers at 

Unterlüß. 

Newsline 


Serving the military 

and the civil sector 


measurements taken will supply the 

answer to the last question as each 

chamber has an opening to the main 

firing range. Commenting on the special 

temperature test facility, Lunkeit 

points out: “We measure whether the 

accuracy of firing changes at extreme 

temperatures.” 

New tasks of the armed forces in the 

light of force transformation activities 

can also be simulated at the EZU. Since 

the rapid reaction forces can be assigned 

to locations worldwide and not 

just in Europe, solar simulations can be 

performed with an irradiation of up to 

1,200 W per square meter. Quite a few 

armored tracked and wheeled vehicles 

have felt the hot and cold – for instance, 

the refueling vehicle for an unmanned 

KZO reconnaissance 

air 

vehicle that was 

recently tested at 

Unterlüß on behalf 

of Rheinmetall Defence 

Electronics. 

A coat of ice covers 

the camouflage 

paint, and people 

exposed to the 

freezing temperatures 

inside the 

test facility have to 

wear protective 

clothing to withstand 

the cold. 

Extreme heat can 

obviously be just 

as merciless: The 

chambers can be 

heated up to 85°C 

with 95% humidity. 

Can soldiers actually 

survive under 

such conditions? 

Again, the engineers at the EZU 

will supply the answer. “Various customers 

test their vehicles with the 

crews,” says Lunkeit. This is done because 

of NATO’s so-called out-of-area 

missions. Wired up to the measurement 

systems just like the working 

places are, the soldiers in the test system 

then either have to sweat or shiver 

– a doctor always being nearby. 

10 

A view inside the temperature test facility: 

a Leopard main battle tank is exposed 

to solar simulation – the irradiator 

has an output of up to 1,200 W/m 2 . 

The rooms of the temperature test facility 

are packed full with measuring instruments. 

Lunkeit points out: “Customers 

like the German Army or manufacturers 

from other countries can naturally 

also bring their own measuring 

equipment.” This flexibility and the 

wide range of tests help to ensure that 

the temperature test facility is used 

throughout the year. The Patriot missile 

system from EADS (see box on this 

page), the German Leopard main battle 

tank, the self-propelled howitzer 2000, 

vehicles from the Dutch army, British 

armored recovery vehicles – they have 

also visited the temperature test facility 

in Unterlüß. 

Even road cleaning vehicles have 

been “boiled” in the heat, the German 

Association for Technical Inspection 

(TÜV) has tested car seats, ticket machines 

fabricated 

by Höft & Wessel 

have had to freeze 

and so have helicopters. 

“If things 

continue the way 

they are, we will 

have to extend the 

facilities,” says 

Lunkeit with obvious 

delight. The 

extreme conditions 

bring faults 

to light that simply 

were not evident at 

the drawing board 

– like the extinguishant 

from a 

fire engine which 

simply froze in the 

cold (this problem 

was resolved by fitting 

a heating system 

in the steel 

tube). Explaining 

the business policy 

of the EZU, Lunkeit remarks: “The 

core competencies from the military 

sector are now being used to win new 

customers from the civil sector.” 

The vibration test system is suitable 

for both military and civil applications. 

The basic shape of the massive concrete 

building which looks a bit like a 

trapeze is an obvious reminder of the 

(Continued on page 12)

llen Dudek, the sales manager 

of the test center in 

Unterlüß who is also responsible 

for marketing related 

activities, and her 

team have decided to give 

further momentum to their 

non-military sales activities with a 

dedicated advertising campaign. 

“The re-orientation of the EZU (Erprobungszentrum 

Unterlüß) is being 

supported by dedicated marketing activities, 

including the recent addition 

of our website at www.ezu-rheinmetall.com.” 

The principal aim of 

these actions is to make the privatesector 

industry aware of the EZU and 

its wide-ranging service spectrum. Selective 

evaluations on the Internet 

page have shown which subjects meet 

with the greatest interest. The EZU also 

intends to increasingly present itself at 

trade fairs for the handicrafts and construction 

industry in future. Military 

and non-military services offered by 

the EZU are outlined below: 

★ Temperature Test Facility (TTF): Vehicles 

and systems can be thoroughly 

tested under extreme conditions – 

between –46°C and +85°C – in various 

test chambers. Irradiators simulate 

solar heat; the relative humidity 

can be adjusted to 95% max. Reproducible 

test conditions help to reduce 

development times and cut development 

costs. Environmental con- 

Newsline 

ditions such as negative pressure, 

cold and heat, humidity and icing 

can be simulated. 

★ Vibration: According to all the relevant 

national and international test 

standards (e.g. MIL, STANAG, ITOP, 

DIN, EN) transport simulations (e.g. 

for tracked and wheeled vehicles, 

trailers, helicopters, aircraft and 

ships) are performed under extreme 

conditions. The system offering temperature 

ranges between –60°C and 

+80°C is also approved for explosives. 

Focus on EZU 

★ Diagnostics: Numerous stationary 

and mobile measuring methods are 

applied for ammunitions and explosives, 

ballistic measurements, photo, 

film and X-ray processes. 

★ Proving ground: The 5,400 hectare 

large proving ground is 15 km long 

and 5 km wide (at the widest point). A 

remote firing position for in-service 

ammunition extends the firing range 

to up to 25,000 m. There are various 

firing ranges for all types of caliber, 

and closed firing ranges for smaller 

weapons. Blast grounds and blast 

chambers for up to 5 kg TNT round off 

the program. 

★ Dangerous materials packaging: 

the packaging for solid materials up 

to gross weights of 1,000 kg is tested 

for its everyday suitability here. The 

EZU is also a certified test center of 

the BAM (German Agency for Materials 

Research and Testing) in Berlin. 

★ Calibration of test equipment: 

services include the high-precision 

3D coordinate measurement of test 

instruments for measurement purposes, 

with accuracies of 0.1 µm in 

the air-conditioned precision measurement 

room. Measurement expertise 

also includes length and surface 

11 

measurements, roundness and concentricity 

as well as topography. 

★ Materials testing: The EZU has 

many years of experience with metallic 

materials (including tungsten sinter 

metals). Activities include but are 

not limited to damage analyses, assessment, 

optimization and inspection 

of material processes, metallography, 

mechanic-technological tests 

as well as material analyses using the 

very latest processes such as SEM, 

computer-based tensile and compressive 

tests, hardness tests and ultrasonic 

inspections. 

★ Indoor firing range: This weatherproof 

test facility with three channels 

is e.g. used to fire hit patterns and 

perform function firing with calibers 

up to 40mm. 

For more details on the EZU visit 

http://www.ezu-rheinmetall.com. 

Contact persons are: Karsten Lunkeit 

(management/engineering), Rheinmetall 

Waffe Munition GmbH , Heinrich-Ehrhardt-Straße 

2, D-29345 Unterlüß, 

P.O. Box 1127, D-29343 Unterlüß, 

Fon +49 (0)5827 – 806723, Fax 

+49 (0)5827 - 10 97, E-Mail: technik@ezu-rheinmetall.de. 

Ellen Dudek 

(sales), Rheinmetall Waffe Munition 

GmbH, Pempelfurtstraße 1, D-40880 

Ratingen, P.O. Box 1663, D-40836 

Ratingen, Fon +49 (0)2102 – 902161, 

Fax +49 (0)2102 – 902483, E-Mail: 

vertrieb@ezu-rheinmetall.de.

“hard” tests often carried out here – as 

everywhere else in the surrounding 

woodland. This building is, however, not 

used for firing but to “shake” systems 

and equipment as violently as possible. 

This is done because all ammunition – 

like the Maske 66 project at the turret of 

an armored combat vehicle – will one 

day be exposed to transport conditions, 

perhaps on the loading area of a truck. 

Two test systems simulate the conditions 

of daily operations. This is also 

why the building is such an unusual 

shape: at the big opening, the measurement 

chamber is only protected by a 

rolling gate – if need be, the gate will 

simply fall out in the event of an explosion; 

experts call this an outlet opening. 

Access to the measurement room is 

from the outside; a meter-thick concrete 

wall is in between so that the expert sitting 

at his computer is not at risk when a 

grenade is fired. 

Similar tests are carried out in the 

woods: Objects are dropped from a 

height of twelve meters 

in the drop tower. 

This facility is also of 

interest to non-military 

users: “Explosives are 

also used by the industry, 

for instance, 

for tunnel construction 

works or oil rigs,” says 

Karsten Lunkeit. Even 

the packaging of dangerousgoodsistested 

at the EZU. Unterlüß has the necessary 

capacities to test dangerous items – 

and above all, there is plenty of space 

which is a particular asset in a densely 

populated country like Germany. 

In fact, according to the 43 year-old 

head of the EZU, this is one of the major 

advantages of the site at Unterlüß 

which has ultimately also helped to 

secure the success of the site for over 

a hundred years. “We have the space 

needed to satisfy all conceivable requirements 

associated with firing, explosion 

and measurement activities”. 

Another bonus: “Our neighbors know 

us. We warn them if things are likely to 

get very noisy. Generations of people 

living nearby have been working for us 

which explains the good relationship 

we enjoy with our neighbors.” Besides, 

a lot of the area outside the core 

area has been leased to farmers. 

The EZU has also managed to secure 

Newsline 


Serving the military and civil sector 


a competitive lead because it is not 

government-owned. Other manufacturers 

use the site before demonstrating 

their system on the governmental 

test ranges of their customers. This is 

where the EZU can help! “We intend to 

convince the German defence industry 

even more strongly that they can conduct 

their factory trials here at the EZU. 

These are tests which the companies 

themselves cannot carry out simply 

because they don’t have the capacities,” 

explains EZU sales manager 

Ellen Dudek. “Suppliers are naturally 

still slightly reticent as they fear an involuntary 

loss of know-how or are worried 

that we at Rheinmetall – as potential 

competitors– could learn more 

about their products. Nonetheless, I 

am optimistic that we will be able to 

make some progress here in the next 

few months.” Secrecy is a top priority 

at Unterlüß. 

The immediate vicinity to the German 

Army as the biggest customer, to 

Rheinmetall Landsysteme GmbH and 

Lots to offer: The extensive experience is also used to test the packaging of 

dangerous goods and for materials testing, e.g. in the X-ray diffractometer. 

to Rheinmetall’s ammunition factory at 

Neulüß is an obvious advantage because 

distances are short. For instance, 

the firing position Heide 1 

where tank ammunition of the standard 

120mm caliber is tested is not far 

away: At the end of the path through 

the wood some 3 km away, a huge 

catch box is visible on the horizon. Firing 

positions and bunkers for observation 

and measuring instruments seen 

en route to Heide 1 are further witness 

to the extensive capabilities of the EZU. 

Lunkeit: “We have our own teams who 

are fully familiar with and know how to 

handle the ammunition of the German 

Army.” It is worth noting that increasingly 

complete systems are tested, i.e. 

the ammunition, weapon system and 

vehicle. 

Lunkeit explains: “This is based on a 

comprehensive system approach.” In 

former times, the weapons were often 

12 

mounted on a support. Afterwards, e.g. 

new ammunition is fired at a short distance 

for safety reasons. Firing is then 

extended step-by-step to the mission 

range. 

The experts then often set about collecting 

the remainders of the ammunition. 

“We look for the parts to understand 

the behavior of the ammunition,” 

says Lunkeit who adds that the new 

high-explosive (HE) ammunition of the 

German Army is currently being tested. 

First prototypes will have to be available 

at the responsible test center of the German 

Army (WTD) by 2005 which is why 

the HE ammunition is undergoing thorough 

testing. Every single fragment can 

provide important details which is why 

the soft soil in the region is particularly 

suitable for the task. 

However, clever technicians in Unterlüß 

have gone even further and developed 

the so-called soft recovery technique 

located in the area of Heide 2. 

This is where safety firing takes place. 

Heide 2 has 123 meters of bolted steel 

tubing through which 

the ammunition is 

fired. This allows testing 

of the ammunition 

components. Yet this 

is only one of the 

many test techniques 

developed by test engineers 

in Unterlüß. 

Due to a special pressure 

chamber system, 

the ammunition slows 

down at the end of the tube system 

where there is a box filled with granulate. 

Explaining how this cost-saving 

and elegant test method works, 

Lunkeit says: “Due to the spin, the projectile 

still rotates at a speed of approx. 

12,000 rpm. We then wait a few 

minutes and take the complete projectile 

out of the box.” This avoids timeconsuming 

search and digging operations. 

The 5,400 hectares of heathland reveal 

the debris from firing tests with 

the self-propelled howitzer or the 

120mm grenades of the Leopard 2 

main battle tank – most of which can 

no longer be used and have to be removed 

– for reasons of safety and secrecy. 

Again, engineers at the EZU have 

found a solution to the problem: such 

debris is cast into concrete blocks 

which can be applied to many purpos- 


Newsline 

Schüco Inernational KG is the leading supplier of complete systems made from aluminum, 

plastic, steel and glass. Products from the company include systems for 

windows, doors, façades, conservatories, balconies, security and solar technology. 

ne very good example 

of successful non-military 

activities at the 

EZU (test center Unterlüß) 

is the cooperation 

with Schüco International. 

This Bielefeldbased 

company is an international 

façade specialist and the leading supplier 

of complete systems from aluminum, 

plastic, steel and glass. Schüco 

offers the complete range of 

façades – both for private homes and 

object constructions. Products include 

systems for windows, doors, 

façades, conservatories, balconies, 

security and solar systems. 

The Schüco program also includes a 

variety of security products, offering 

protection against fire and smoke, burglary, 

bullets and – the very latest addi- 

tion – also against explosives. And this 

is where the EZU comes into it: Torsten 

Kloppenburg from the EZU remarks: 

“After September 11, the subject became 

extremely interesting for the 

manufacturer. Windows, doors and 

glass façades are particularly vulnerable 

since glass splinters can cause serious 

injury if a detonation wave blows 

the splinters into the building.” Schüco 

therefore tests its explosion-proof security 

glass and frames. Kloppenburg: 

“We also measure the forces developing 

in rooms and the processes that occur 

during an explosion.” 

In view of the threats posed by terrorism, 

customers are interested in 

splinter-proof glass. For example, the 

USA want to improve the protection of 

endangered buildings like embassies 

and barracks abroad. Kloppenburg 

points out: “To test windows, doors 

and façades we exploded 100 kg of 

TNT at distance of 25m to determine 

the explosion-resistance.” The EZU 

not only has the necessary measuring 

systems but also the space needed to 

do this. With the Dutch governmentowned 

TNO Prins Maurits Laboratory, 

high-speed films were taken and 

physical parameters of the buildings 

recorded. In this case, the tests were 

carried out in accordance with American 

standards, although European 

standards can naturally also be applied. 

Concrete block buildings were 

built especially for the tests. 

Thorough testing is fundamental to 

Schüco’s quality policy. Before components 

reach system maturity, they 

undergo stringent tests at Schüco’s 

Technology Center in Bieleld. This 

Explosive tests for more safety 

center is one of the leading labs for 

window and façade technology in Germany. 

Thermal, noise, firing and fire 

tests are carried out in special climatic 

chambers, sound labs, a test stand 

for material firing and further facilities. 

The behavior of components under 

extreme static and dynamic loads 

is also tested. Tests are complemented 

by approvals and test certificates 

from neutral and governmental institutions. 

They confirm the excellent 

quality and perfect function of Schüco’s 

products – and the tests carried 

out at the EZU in Unterlüß help toward 

achieving exactly this. 

The Bielefeld-based business with 

4,100 employees operates in 60 different 

countries around the world. In 

2002, the Schüco group generated 

sales of approx. € 1.135 billion. 

13 

EZU has a lot to offer 

Serving... 


es on the site: as fragment protection, 

to mark pathways or as mobile construction 

devices, to support one of the 

many armor plates against which different 

calibers are fired. 

All of this calls for extensive knowhow: 

Unterlüß haslabsfor materials 

testing and calibration of test equipment 

as well as a very modern gun 

shop where weapon tubes are stored 

in multi-level shelf systems. “This is 

where the systems are prepared – and 

tested – for firing.” Two 120mm tubes 

are lying on the measurement table 

and a camera is moved through the 

tubes to find out whether the chromeplated 

inner diameter has been damaged 

during firing. This is important 

both with respect to design and to acceptance. 

After all, every tube is fired in 

Unterlüß before being delivered to the 

German Army. 

“Such firing tests are performed at 

overpressure so that when the system 

is used in service there will be no danger 

to life and limb of the crews. The 

tube then meets the safety requirements 

while the overpressure provides 

the extra safety margin,” says Lunkeit. 

This helps to ensure that ammunition 

is safe to use in service. A new weapon 

system for a Dutch partner was, for instance, 

recently installed and tested 

for a modernization of the old self-propelled 

howitzer M 109 that is to be marketed 

jointly soon. “We have won new 

customers besides the German Army 

and are making good progress here. 

The lion’s share of our business for foreign 

customers is for the UK; other customers 

have a more cautious approach 

and tend to prefer their own government-owned 

operations.” 

The eastward extension of the EU will 

also offer new opportunities for the 

EZU on the medium to long term. Although 

there are numerous proving 

grounds with test facilities in East Europe 

and these are subsidized by the 

national governments, sales manager 

Dudek believes that subsidies are likely 

to come to an end in around five 

years time and they will then have to 

face the forces of free competition. 

Dudek: “I am convinced that we will 

reach our goal, namely that we at the 

EZU – as one of the very few private operators 

– will become the market 

leader in Europe!” Detlev Karg

Düsseldorf. On March 1, 2004, Rheinmetall’s chairman 

Klaus Eberhardt also took over at the helm of Rheinmetall 

DeTec AG. In view of the security-political relevance of the 

defence business, this move which has put Eberhardt in 

charge of Rheinmetall’s Defence activities has been followed 

with interest by the German Bundeswehr and political 

circles. Shortly after his appointment, the military 

Newsline 

Rheinmetall DeTec chairman Klaus Eberhard in “Soldat und Technik” 

Foreign markets to be tapped further 

Soldat und Technik: In addition to 

your responsibility as the chairman of 

the executive board of Rheinmetall AG 

you have now also taken on the task of 

executive board chairman of Rheinmetall 

DeTec AG (Düsseldorf). Can you 

outline the main focus of your new 

tasks in future? 

Eberhardt: In view of the political significance 

of the defence business, I believe 

it is indeed a very special responsibility 

to have been put in charge of 

Rheinmetall’s Defence sector. The Bundeswehr 

remains our most important 

customer, although we are naturally also 

aware of the security-political significance 

of our defence activities on an 

international scale. 

The change at the head of Rheinmetall 

DeTec assures a maximum degree of 

continuity. As you know, as executive 

board chairman of Rheinmetall AG I 

have been in command of the group’s 

business for four years. In this role I 

have obviously followed the major issues 

of our Defence sector very closely 

over the years and have established a 

close and trusting dialog with our contacts 

– the armed forces, political circles 

and the administration. I intend to continue 

and intensify this dialog in future. 

Soldat und Technik: Especially also in 

the light of the transformation process 

(of the international armed forces)… 

Eberhardt: …we at Rheinmetall will 

remain a strong and reliable partner of 

the Bundeswehr. We think it is our duty 

to give the technological momentum 

based on the new requirements, and to 

use our core competencies as an innovation 

drive for the equipment and systems 

of the armed forces. I also want to 

push ahead with the growing internationalization 

of Rheinmetall DeTec AG 

since this is not only the precondition 

for further growth but also crucial to 

sustaining our technological lead. 

Soldat und Technik:Do you plan to introduce 

any changes in your group in 

reaction to the changed framework 

conditions of the Bundeswehr and future 

European security aspects? 

Eberhardt: I am convinced that the 

Rheinmetall DeTec group with its existing 

range of products and capabilities 

is well prepared to participate in the 

imminent change on national and international 

markets. We have helped to 

shape the German and European consolidation 

in ground forces technology 

since 1990, and have concentrated the 

competencies under one umbrella, 

making us the leading systems company 

in this sector today. Naturally, this 

involved a painful process of capacity 

adjustments. The force transformation 

which has now been initiated will lead 

to a further change of industrial structures 

in the medium term. This transformation 

is absolutely vital and is irreversible, 

involving both challenges and 

opportunities for Rheinmetall. 

Soldat und Technik: Is this already reflected 

by new products or key development 

activities today? 

Eberhard: Yes, of 

course. Let me give 

you one example 

from our Weapon 

and Ammunition 

business unit. 

Large-caliber 

weapon systems 

clearly play a less 

significant role than 

about fifteen years 

ago. So-called non- 

lethal weapons are, for instance, one 

key area of work today; these are nonlethal 

systems ranging from high-power 

microwave to laser guns and plasma 

tasers. All of these technologies will 

play a crucial role for armed forces concerned 

with security at home and 

abroad. Such new products are also a 

reaction not only to the changed threat 

scenarios but also to the fact that there 

is no longer a clear distinction between 

national and international security. 

We are, however, still working very 

successfully in the large-caliber sector, 

e.g. on the Pele technology in which a 

number of customers have already expressed 

interest. This principle offers a 

14 

periodical Soldat und Technik – published by Report 

Verlag (Frankfurt am Main/Bonn) and one of the leading 

German defence publications that is widely read by parliamentary 

and political circles – asked Eberhardt about 

his goals and the future strategic orientation of the 

Rheinmetall DeTec group. The article below gives a translation 

of the interview printed courtesy of the publishers. 

Klaus Eberhardt 

cost-effective means of adapting existing 

combat munitions to modern military 

demands, and we are optimistic 

that this approach will be successful. 

Tactical reconnaissance technologies 

like those used for unmanned air vehicles 

are another important focus of our 

work. The concept of networking is a 

key aspect in this connection. 

Soldat und Technik: Which brings us 

to the keyword Network Centric Warfare…. 

Eberhardt: Exactly! Although I would 

stress that system networking is by no 

means new for Rheinmetall as underlined 

by our developments in the field 

of Battle Management Systems for air 

defence or our Lince or TTCS command 

systems which have been in service for 

some time now. And, talking of our unmanned 

air vehicles, let me give you 

another example of networked capabilities: 

the KZO unmanned air vehicle is 

part of the reconnaissance, command 

and control, and strike capability in 

conjunction with the observation and 

reconnaissance equipment for the Fennek 

reconnaissance vehicle and the 

self-propelled howitzer PzH 2000 and 

its SMArt ammunition. 

All these examples underline one aspect 

which I believe is particularly important: 

Although considerable performance 

improvements are still possible 

in the software sector, enhanced capabilities 

ultimately only exist on the basis 

of improved platforms. Classical 

arms capabilities will therefore continue 

to be extremely important in future, too. 

Soldat und Technik: The German industry 

has given a convincing demonstration 

of these capabilities with the 

Monarc project. 

Eberhardt: Quite so! Monarc (Modular 

Naval Artillery Concept) is a groundbreaking 

concept jointly proposed by 

Rheinmetall, HDW (Howaldtswerke- 

Deutsche Werft) and Krauss-Maffei 

Wegmann, concerning the introduction 

of the fielded 155mm weapon systems 

Continued on page 15)


of the self-propelled howitzer PzH 2000 

for naval units. As an “off-the-shelf” 

technology, this gives the navy an entirely 

new perspective e.g. for firing 

from sea to shore. Monarc is seen as a 

promising cross-system concept which 

should be exemplary for future projects. 

This illustrates the “jointness” on 

the part of the industry. 

Soldat und Technik: How does your 

group intend to position itself nationally 

and internationally to compensate 

for the noticeable defence spending 

cuts of the Bundeswehr, and to secure 

jobs and specifically also know-how in 

Germany? 

Eberhardt: We assume that German 

defence spending will increase stepby-step 

in the medium term. We would 

obviously welcome speedier developments 

but must be realistic. Conversely, 

this also means that – to succeed – 

we will have to tap further foreign markets 

and boost sales abroad. Currently, 

Rheinmetall DeTec sales outside Germany 

make up for approx. 57% of the 

turnover, and we intend to achieve a 

steady improvement in this figure. 

Soldat und Technik: Where do you 

see chances for your business? 

Eberhardt: Firstly – and quite naturally 

– in the new NATO member states 

which will have to adapt their systems 

to the related standards. This will offer 

attractive chances, especially where 

maintenance and modernization are 

concerned. Armament and modernization 

programs in the Middle East and 

parts of Asia also offer further potential. 

The “protection” business in which 

we have widespread skills and capabilities 

– i.e. the protection of soldiers in 

action, of military objects on land and 

at sea, as well as civil objects – offers 

substantial opportunities. As a competent 

partner of the armed forces and 

with systems ranging from short-range 

air defence and the detection of nuclear, 

biological and chemical threats 

through to our all-embracing concept 

for the protection of military camps, we 

are well poised to succeed in this area. 

Soldat und Technik: This is probably 

equally true for the navy? 

Eberhardt: Yes, it is: For example, our 

light naval gun MLG 27 and the MASS 

protection system (both from Rhein- 

Newsline 

Rheinmetall DeTec chairman Klaus Eberhard in Soldat und Technik 

Foreign markets to be tapped further 

metall Waffe Munition GmbH) are both 

very successful. MASS will also be used 

to protect the Swedish Visby corvettes. 

Information gathering for situation 

awareness and command and control 

systems have also developed into 

growth markets. The military requirement 

for greater mobility has also 

raised the demand for air-transportable, 

highly mobile, armored vehicles. 

All of these areas are core competencies 

at Rheinmetall. 

Soldat und Technik: Does the Rheinmetall 

DeTec group still see itself as the 

systems company for the German Bundeswehr? 

Focusing on international force transformation: 

target engagement capabilities 

are enhanced significantly by 

system networking – as illustrated by 

the air defence scenario pictured here. 

Eberhardt: Very definitely – and we 

have no doubts about this. The Bundeswehr 

is our reference for many marketing 

activities abroad, and the German 

government decides whether to approve 

export licenses. We back the planned 

modernization and restructuring of the 

Bundeswehr, and want to support this 

process in the best way possible with 

powerful system solutions. Rheinmetall 

DeTec will therefore expand its systemspecific 

capabilities for integration. 

15 

Soldat und Technik: How would you 

assess the chances and risks of the 

German industry in connection with 

the transfer of Bundeswehr tasks to the 

private sector? 

Eberhardt: The planned privatization 

of tasks which are not core functions of 

our armed forces is definitely a step in 

the right direction. This initiative therefore 

has our unconditional support. 

And the time is just right now that the 

Bundeswehr is in a general process of 

transformation. 

Essential preconditions for the success 

of privatization are, however, attractive 

structures for the industry. In 

the interest of our shareholders we cannot, 

for example, enter into risks which 

offer no hope of profitability. We cannot 

take on personnel commitments without 

the necessary planning certainty 

from the customer. Put in a nutshell: If 

tasks are to be outsourced to the private 

sector, the laws of the private sector 

industry must naturally also apply 

to this area. 

Soldat und Technik: Which preconditions 

do you expect to facilitate arms 

exports, also on a European scale? 

Eberhardt: Essentially, this is a question 

of equal chances. The export rules 

as such are not the main problem but 

the way in which they are handled. I recall 

that in 1998, the defence secretaries 

of six nations agreed in an LOI 

(Letter of Intent) to approve arms exports 

on the basis of comparable viewpoints 

in future. We have noticed very 

little of this so far. Quite the opposite 

has been happening: There are numerous 

examples of markets which we cannot 

serve with our products – our foreign 

competitors are doing the business. 

I clearly don’t need to explain the 

obvious implications for the German 

job market. 

Added to which: Harmonized export 

regulations are essential for international 

arms cooperations – and this is 

what the future holds for us. How can 

one enter into cooperations if the potential 

partner is not sure if and when 

the products from a multinational joint 

venture with German involvement can 

actually be delivered with German approval? 

I believe there is considerable 

need for action here if we want to be 

taken seriously as a partner in international 

security policy.

ave you ever worked abroad?“ It is hardly surprising 

that job applicants are often asked this question 

as global players need qualified staff with international 

experience. Yet, international experience 

isn’t easy to come by: it is a valuable asset 

that cannot be gleaned from books. Living and working 

abroad is something that the individual should experience 

for himself – at least this is what Dr. Thomas Zipse, managing 

director of KS Kolbenschmidt GmbH in Neckarsulm believes. 

The company which is one of the key players in its 

branch of the industry, manufactures engine pistons with 

Newsline 

“Newsline” interview with Kolbenschmidt’s managing director Dr. Thomas Zipse 

Benefits reaped from working abroad 

Newsline: The global presence of 

automotive suppliers is crucial nowadays. 

Can you explain why foreign commitments 

are so vital for a company’s 

competitive standing? 

Zipse: First and foremost, there is the 

business aspect: we generate around 

two thirds of our sales abroad. But 

what is far more important is that we 

have to operate internationally on the 

market because our global customers 

expect a global group to supply a local 

service. In other words: it won’t do simply 

to operate from Germany because 

our customers demand more. Ford is a 

good example: we deliver our products 

to the world’s second biggest automaker 

from ten piston sites. We can’t afford 

to have “remote” plants because we 

have to manufacture products of technically 

uniform quality according to the 

same processes at each site. 

Newsline: So you consider yourselves 

a partner serving the market with one 

common goal: to succeed as a competent 

automotive supplier. 

Zipse: Yes, quite right. This is why I 

always tell our workforce around the 

world that the family of the Chinese or 

Brazilian KS employee is just as important 

as that of the German employee. 

Our plants in Germany and abroad are 

treated as equals. This means that we 

do not reach any decisions simply to favor 

our German locations. To this end, 

we have developed the so-called plant 

allocation process which is based solely 

on objective criteria. 

Newsline: As a sign of the equal status, 

you consciously use the term 

“partner plants” nowadays. Has this 

made employees more willing to go 

abroad? 

Zipse: At present, we are systematically 

increasing staff exchange which is 

working well. For example, a quality 

manager from Hamburg is working as 

production manager in China, a casting 

specialist from Neckarsulm has 

moved to the Czech Republic. Vacancies 

are put on the company’s international 

job market and anyone who is interested 

in working abroad is welcome 

to contact the human resources department. 

Newsline: Does this only apply to 

management jobs? 

Getting the right perspective: Kolbenschmidt 

manager Dr. Thomas Zipse is 

convinced that people who work 

abroad will broaden their professional 

and personal horizon. They will learn 

to think beyond national borders and 

understand international business 

practice. Incidentally, Zipse’s focus is 

guided by the world’s smallest diesel 

piston – this advanced product is integrated 

in DaimlerChrysler’s Smart car. 

16 

diameters between 32 and 640 mm at twelve plants at ten 

different locations. Nine factories are abroad, in France, the 

Czech Republic, the USA, Canada, Brazil, Japan and China. 

Around 4,600 of the 6,100 strong workforce, or 75%, work 

outside Germany. The distribution of sales reflects this ratio: 

in 2003, € 389 million of a total turnover of € 614 million 

was generated abroad (including China). Zipse who joined 

the international piston manufacturer in 1997 is responsible 

for production activities. Before joining the company, 

the 47 year-old mechanical engineer worked for the Coburgbased 

supplier Brose and other automotive businesses. 

Photo: Christian Thalheimer 

Zipse: No, we think it is important that 

as many people as possible get to know 

each other and work together outside 

their national borders. Regular expert 

meetings are staged to ensure the international 

exchange of know-how. 

Again, all employees are considered 

equal in terms of partnership and cooperation. 

Our staff has a lot of experience, 

capabilities and expertise which 

is promoted and advanced by us. Members 

in such international meetings 

come from the twelve different plants, 

contributing one-twelfth of the knowledge 

and returning to their own companies 

with the know-how of the entire 

company. It would be fair to say that 

they have gained 11/12 extra knowledge 

from such events. This is especially 

important for the engineering departments. 

Newsline: So know-how is the main 

focus? 

Zipse: It is naturally extremely important, 

nonetheless, the network of knowhow 

has to be supported by a social 

network which is something only people 

(and not functions) can provide. 

And the company benefits from this. After 

all, it is a lot easier to ask a colleague 

for advice if one has met him or 

her personally. Real partnerships between 

colleagues only develop if colleagues 

can, for instance, enjoy a glass 

of beer or wine together in the 

evenings. This gives people the chance 

to get to know each other better. 

Newsline: What are the prerequisites 

for working abroad at Kolbenschmidt? 

Zipse: A lot of our staff are put off by 

the language problem, but this is not a 

prerequisite for a job abroad as a language 

can always be learned there – 

which is exactly what our plant manager 

in the Czech Republic is doing at the 


Newsline 

Global: Kolbenschmidt produces pistons with diameters between 32 and 640 mm at twelve different plants around the world. 




moment. We don’t have a fixed catalog 

of capabilities for people wanting to 

work abroad. They should, however, be 

flexible and patient, have the necessary 

“soft” skills and should be sensitive to 

their different surroundings. 

Newsline: And be willing to face new 

challenges! 

Zipse: Yes! We were, for instance, 

quite astonished when one of our longstanding 

local casting experts said he 

would like to go to China. His colleagues 

doubted whether he would 

stay long but he was willing to give it a 

try. In fact, he has been in China for six 

years now and likes it a lot. He has married 

a Chinese woman and never wants 

to come back. 

Newsline: Which just goes to show . . . 

Zipse: . . . how important it is for 

members of the staff to feel happy and 

fully integrated. Job assignments 

abroad should be for at least three 

years, and people will only feel comfortable 

if they settle in properly which 

is exactly what the company wants. 

Staff members on foreign assignments 

are expected to work well over the entire 

period and not in fits and starts. 

Newsline: What does Kolbenschmidt 

offer its employees to make foreign assignments 

more attractive? 

Zipse: We obviously look after them 

and make sure that they have the nec- 

essary funds and contacts so that they 

will feel at home in the foreign country. 

But this is also something the individual 

has to manage for himself, as this is 

the first step toward successful integration. 

We only offer special training programs 

in exceptional cases. One of our 

executives who recently moved to Japan 

participated in a cultural training program. 

Newsline: You mentioned how important 

it is for people to get to know and 

like each other. How important is this 

for cooperation, and how does one go 

about this abroad? 

Zipse: A pleasant and friendly approach 

is vital. Work is made a lot easier 

if respect develops into real sympathy. 

To achieve this, one should learn 

the local language which wins a lot of 

respect, and not just in France. From my 

own experience, let me say this: I have 

got to know all of the plant managers 

abroad personally, and have even 

spent my spare time with many of 

them. This form of human contact is extremely 

beneficial at work. I find it 

much easier to speak openly and honestly 

with someone I know very well, 

and it much easier to find constructive 

solutions on such a basis. 

Newsline: So the personal relationship 

is the key to success? 

Zipse: Exactly, and I would advise 

others not to underestimate this “soft” 

factor. A lot of business transactions 

17 

have failed simply because people 

don’t get on. People working on the international 

market who don’t develop a 

sure instinct for others don’t have the 

necessary respect for others, either. I 

have learned that a business is bound 

to fail if the two doing business together 

can’t stand each other! 

Newsline: You mention how important 

personal relationships are in the 

industry. Are they really that important? 

After all, university students are 

repeatedly told that objective facts and 

figures and complicated processes determine 

international business. 

Zipse: Of course, one shouldn’t forget 

these factors, but working relationships 

are equally important because 

fruitful cooperation between individuals 

will only work if they can communicate 

successfully with one another. I 

am convinced that job satisfaction and 

commitment is primarily determined 

by the people one works with and the 

amount of pleasure one finds in one’s 

job. Contrary to what some managers 

– unfortunately – claim, I believe good 

working relationships are essential. 

Good working relationships create the 

“atmosphere” which will allow successful 

business operations to develop. 

Newsline: Which advantages do Kolbenschmidt 

employees who have 

worked abroad reap from their foreign 

assignments? (Continued on page 19)

eople who go abroad are 

young and looking for an 

adventure. This is the 

common cliché. But 

things are different at KS 

Kolbenschmidt GmbH in 

Neckarsulm. For example, 

Gerhard Hellweger who was the 

general manager of the Chinese joint 

venture Kolbenschmidt Shanghai 

Piston Co. Ltd until the end of April 

2003 went to Shanghai at the age of 

57, i.e. at an age where many companies 

in Germany wouldn’t even have 

offered him a job. Managing director 

Dr. Thomas Zipse points out: “We 

would expect someone to have a lot 

of experience for this sort of work; 

after all, anyone who has survived all 

the ups and downs of professional 

life is likely to succeed anywhere – 

even in China.” 

Although many claim that only the 

young 25 year-old employee with ten 

years of experience will be motivated 

enough for this line of work, Zipse is 

not in favor of such an approach. 

“Age doesn’t matter but staying 

young at heart does – in my experience, 

I haven’t found that age conflicts 

with fresh ideas.” The 47 year- 

Semarang/Bremen. Rheinmetall 

Defence Electronics GmbH (RDE) will 

be delivering the most important 

maritime simulation training center 

to Indonesia. The Indonesian Director 

General of Higher Education, Prof. 

Dr. Ir. Satryo Sumantri Brojonegoro, 

recently signed the related contract. 

In the course of the competitive tender 

in 2003, the Bremen-based specialist 

succeeded in winning against 

several international competitors. 

By the year 2005, the training center 

in Semarang will be provided not only 

with extensive laboratory equipment 

but also highly modern simulators for 

training in ship-handling, ship operation 

technology, communication, ship 

navigation, and ship safety. The RDE 

delivery package will be completed by 

computer-based training (“CBT”) 

units and the associated courseware. 

The order has a volume of about 8.5 

Newsline 

old manager would even like to have 

a natural age pyramid in the company. 

He believes that too much experience 

is lost if there are too many 

young employees because this does 

not leave enough time to pass on the 

Staying young at heart 

Worked abroad: Martin Walter (l.) and Harald Geider from KS Kolbenschmidt. 

wealth of experience to the next generation 

of employees. 

Zipse does not think that the knowledge 

acquired at school and university 

is enough: “Social learning starts 

at work. Universities don’t teach 

what daily work is like. Team work, 

communication, identifying, structuring 

and solving problems – these are 

million euros and is being financed 

by the banking group Kreditanstalt für 

Wiederaufbau (KfW). 

In addition, an operational support 

contract was signed covering all maintenance 

and repair work over a period 

of three years with the aim of ensuring 

the sustainability of this project. Furthermore, 

two employees of RDE will 

be providing support on site for three 

years. With the supplementary contract, 

the company will also be deliver- 

ing a complete marketing concept to 

the operators of the new simulation 

center. The value of the second contract 

is about 2 million euros. 

Commenting on the extraordinarily 

significant order, Ulrich Sasse, head 

of the business unit for simulation 

and training at RDE remarks: “For us, 

the new Semarang Growth Center is 

an important milestone which forms 

the basis of further maritime activi- 

18 

all skills which one acquires in practice.” 

Collaboration between old and 

young and cooperation between 

different nations show certain parallels: 

one can learn from the other in 

practice. Zipse: “This is also why I 

like to send experienced employees 

abroad because they can pass on a 

lot of experience there. Older employees 

have a lot of experience 

which is not given in textbooks. By 

contrast, younger people have different 

and new ideas, and are more willing 

to take on risks. However, new 

ideas will often only be successful in 

combination with the experience of 

older employees.” In other words, 

successful business operations will 

benefit from a pact between the generations. 

tha 

ties of our company in Indonesia. We 

are proud that, with this project, we 

can make a contribution towards the 

improvement of the training of future 

seafarers, which will make seafaring 

safer.” 

Rheinmetall Defence Electronics 

GmbH is one of the world’s leading 

companies for simulation and training 

systems and the associated services. 

The company covers the entire 

spectrum of simulation systems, ran- 

Simulators from Bremen for Indonesia 

gin from handling-simulators to CBT 

and part task trainers up to full mission 

and tactical simulators for military 

users (navy, army and air force), 

and also for civilian customers. The 

Bremen-based system specialist has 

been delivering systems and equipment 

to the Indonesian armed forces 

and has been an acknowledged industrial 

partner in Indonesia for more 

than two decades. 

Photo: Thomas Klink


Newsline 




Zipse: Firstly, the time abroad will 

broaden their scope both personally 

and work-wise. He or she will have a 

new job abroad and sometimes be promoted. 

Besides this, the time abroad 

will broaden the individual’s viewof 

the global company; he or she will 

learn to think internationally and to understand 

the modes of operation in international 

business. 

Newsline: When employees return, . . . 

Zipse: . . . it is important that they 

have been abroad and this is obviously 

included in their personnel files. The 

experience, working techniques, flexibility, 

sovereignty and broader view are 

especially important. In a nutshell: a 

person who has worked abroad has had 

to adapt to a different environment – so 

if he or she hold a management function, 

this experience can be used to integrate 

others, too. 

Newsline: You have repeatedly emphasized 

that personal experience is 

more important that theoretical knowledge. 

Could you give us a practical example 

of situations which one has to 

experience to master them? 

Zipse: Yes, take China for example. 

After days and days of detailed negotiations, 

one may be convinced that 

everything is clear but this can actually 

be quite wrong. Perhaps your contacts 

in China have simply been very reticent 

and will only address the most important 

point when you are about to head 

Photo impression of small piston production 

for Renault diesel vehicles. 

home. One can 

really only master 

such difficult situations 

if one has 

experienced them 

oneself. 

Newsline: 

Which means 

that the competencies 

acquired 

abroad cannot really 

be measured 

by objective standards 

and can’t 

be assessed in 

objective terms? 

Zipse: Obviously 

not. Technically, 

experience can 

be rounded off in 

a foreign country. 

The personal development 

of the 

individual is what 

is really important! 

I would even 

say that social 

competence 

should be the 

outstanding quality 

of a successful 

manager. 

Newsline: This 

qualification . . . 

Zipse: . . . really 

only comes to 

light in a team, 

for instance, how 

the individual 

contributes toward discussions. We 

remember the way people are from the 

way they act in their daily work. When 

job vacancies need filling, the superior 

will think of the employee who has left 

the most positive mark. Besides, such 

individuals are normally most noticeable 

because they stand out from the 

others. 

Newsline: Which factors play an important 

role when deciding in favor of a 

certain individual. Can you say how important 

the technical expertise is and 

what role the so-called soft skills play? 

Rheinmetall’s Automotive sector is a global player – e.g. in 

Shanghai with the joint ventures Kolbenschmidt Shanghai 

Piston Co. Ltd. and Kolbenschmidt Pierburg Shanghai Nonferrous 

Components Co. Ltd. Pictured here: Pudong skyline. 

Zipse: I would say that only about 

30% of a decision is based on objective 

criteria. The technical competence is 

the precondition for a job anyway, although 

this doesn’t mean that one has 

to know everything. An employee sim- 

19 

ply has to be willing to learn. The remaining 

70% of the decision is based 

on the subjective impression gained by 

the superiors in the course of their daily 

work with the individual. 

Newsline: Quite a sporting challenge. 

Zipse: Yes, I suppose so. Of course 

there are certain acknowledged standards 

that have to be satisfied. The real 

challenge for an applicant is to convince 

those reaching a decision of his 

or her qualities. If we are convinced 

that someone has the right mixture of 

technical expertise, commitment and 

social competence, we are then equally 

convinced that he or she will be able 

to convince our partners and customers 

at home and abroad of the 

quality of our services (see page 18). 

Christian Thalheimer 

Photo: German Industry and Commerce China/Shanghai

Rheinmetall DeTec – the leading European ground forces supplier 

Network enabled capabilities – capabilities through transformation 

Tomorrow's landforces will operate as networked, combined, and joint forces. Mobility and rapid reaction 

call for light-weight equipment providing networked surveillance, reconnaissance, and effect systems. 

We support the force transformation with products, services and expertise. For more information go to 

www.rheinmetall-detec.com/ncw.php 

Rheinmetall DeTec AG 

Rheinmetall Allee 1 

40476 Düsseldorf 

Germany 

www.rheinmetall-detec.com

PDF [2.1 MB] - KSPG AG

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?