E_mg_GB_03_vorne-29_3_04

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52 Capital Expenditure The mg Group invested a total of a292.8 million after discontinued operations. This was an increase of a26.1 million on the prior year. Capital spending on property, plant and equipment (including capital leases) came to a259.5 million, a6.9 million more than in 2001/2002. Purchases of companies and businesses in 2003 came to a33.3 million, a19.3 million more than in 2001/2002. A large proportion of this amount was spent by Zimmer on its acquisition of Fleissner, an engineering company. In acquiring this firm, the mg subgroup – which is engaged in industrial plant engineering – plans to extend its global market leadership in the field of staple fiber plant and to add the fast-growing nonwovens business to its product portfolio. Procurement Procurement restructured With the globalization of competition, it is becoming increasingly important for companies to constantly review their cost of materials and procurement. In order to make its purchasing of materials and services even more efficient, customer-focused and flexible, the mg Group restructured its global purchasing activities in 2003. Implementation of a commodity management system mg technologies ag is currently implementing a decentralized commodity management system. Lead buyers at the various operating companies are responsible for organizing and managing the procurement of technical components such as pumps, drive systems, and valves on a decentralized basis. Each lead buyer has Group-wide responsibility for procuring a particular group of products. The buyers work closely with technical units, which then integrate the respective product into their processes. They are involved right from the outset in new development projects. By virtue of their proximity to technical processes and developments, the lead buyers can apply a consistent valueanalysis process to examine whether alternative materials or components could be used that are cheaper while offering the same quality. mg identifies further cost-cutting potential by using design-to-cost projects, which start right at the product-development stage. Under these projects, development processes are carried out on the basis of fixed cost targets. One-stop procurement of services mg’s global sourcing activities, which in the past have covered all procurement operations for the mg Group, will in the future concentrate on purchasing in non-technical areas such as telecommunications, vehicle fleets, personnel leasing, IT and other services. The bundling of activities in these areas will enable mg to sign Group-wide framework agreements and will enable it to obtain much more favorable rates on its purchases.
MANAGEMENT SHARE STRATEGY SPECIAL SECTION MANAGEMENT REPORT FINANCIAL STATEMENTS FURTHER INFORMATION Production Economic Environment • Situation of the Company • Organization and Structure • Risk Report • Employees • Performance of the Subgroups • Outlook The mg Group operates in each of its markets through decentrally managed operating business units, as this structure provides it with a high degree of flexibility and customer focus. The various production strategies are strictly geared to customer requirements and the respective market structure. The spectrum ranges from products individually produced to order via line and batch production to flexible manufacturing cells. mg is constantly reviewing its production parameters to ensure it meets the highest standards of performance and efficiency. Key benchmarks include throughput times, productivity by area, zero-error production, and the ability to meet customers’ just-in-time and just-in-sequence requirements. In Sarstedt, in the Netherlands, GEA Ecoflex GmbH, which specializes in the manufacture and development of plate heat exchangers, built a new workshop and a new pressing line for the production of heat exchangers. This will enable the company to expand its production capacities substantially and to set new standards in the industrial production of plate heat exchangers: the new pressing line, which has 15,000 tonnes of stamping power, is generally regarded as one of the most modern of its kind in the world. By committing this level of investment, the GEA subsidiary plans to grow its share of the global market and further improve the quality of its products. GEA’s air-treatment business successfully completed the restructuring of its production activities. It concentrated a large proportion of its production facilities for industrial air-treatment equipment at Liberec in the Czech Republic, where GEA already manufactures air-treatment equipment. The concentration of its production capacities in Liberec will enable it to reap synergies and enhance its competitiveness. By expanding its production facilities in eastern Europe, GEA’s air-treatment business is also responding to the growing demand in this region. Under the umbrella of Dynamic Synthesis, Dynamit Nobel is making significant advances in the production of active ingredients for pharmaceuticals. For the pharmaceutical industry, it develops intermediates and active ingredients that are produced in complex chemical reactions. During the period under review, the special-chemistry business in Leverkusen, Germany, increased its capacities for the production of pharmaceutical active ingredients based on azide chemistry. In order to significantly increase its production capacities for the extraction of active-ingredient molecules, Dynamit Nobel invested over a11 million in the refurbishment of a multi-column chromatography (MCC) plant at Finorga’s site in Mourenx, France. This is one of Finorga’s proprietary technologies, which is used to separate identically structured molecules with varying effects according to type. These molecules – so-called ‘enantiomers’ – are found in roughly 75 percent of all newly developed drugs. They are used, for example, in medicines for the treatment of depression. By continuing to expand its technological and production capabilities, Dynamit Nobel remains an important value-adding partner to the pharmaceutical industry. 53
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Key Figures for the mg Group RESULT
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