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Photo: Andrea Schreier
Newsline
Newsline interview with managing director Michael Heinzemann, Rheinmetall Hellas
A local gateway for
Rheinmetall products
Athens/Düsseldorf. Rheinmetall Defence has had its own subsidiary in Greece
since March 2004 when Rheinmetall Hellas S.A. was officially established. In taking
this step, the Düsseldorf-based group which has a long tradition in successful cooperation
with the Greek armed forces and enjoys an excellent reputation in the country,
underlined the significance of this market – a step that has turned out to be very
successful, as pointed out by managing director Michael Heinzemann (51) during
an interview with Newsline. Headquartered in the Kolonaki district of Athens, the
company has three locations (Athens, Komotini and Mandra) with a total of 10 employees.
Both from a professional and a personal standpoint, the establishment of
Rheinmetall Hellas presented quite a challenge to Kassel-born Heinzemann, a graduate
in electrical and industrial engineering, and an ex air force officer (1978 to 1986).
Newsline: A brief glance at the shareholder
structure of Rheinmetall Hellas
– with Rheinmetall Defence Electronics
GmbH of Bremen, Rheinmetall Waffe
Munition GmbH of Ratingen, Kielbased
Rheinmetall Landsysteme
GmbH and Oerlikon Contraves AG of
Zurich, Switzerland, each holding a
25% stake in the company – makes
one thing perfectly clear: the Defence
subsidiary is operating in a market that
represents the entire range of Rheinmetall
activities. So, in reality, this is
one business working on behalf of all!
Heinzemann: Yes, that is correct. In
view of the successful market activities
of Rheinmetall and the good standing
of our products, and also due to growing
competition and the expectations of
the Greek customer regarding local industrial
participation and offset, Rheinmetall
decided in 2003 to enhance its
direct commitment on the Greek market
and be closer to the customer.
Newsline: And you were charged with
establishing the Greek subsidiary?
Heinzemann: Indeed, in March 2004
Rheinmetall Hellas was created as a
stock corporation, acting as the local
gateway of Rheinmetall Defence for the
Greek customer. The shareholders are
the four companies just mentioned. Besides
assisting and coordinating sales
activities of the Defence group, our
main task is to carry out project man-
agement, development and maintenance
tasks in order to increase the local
value-added and generate offset.
Newsline: Tasks which are clearly being
performed with considerable success!
Heinzemann: Rheinmetall Hellas got
off to a good start and has already produced
a co-production volume and offset
worth tens of millions of euros.
Newsline: Which projects does this
involve?
Heinzemann: To give some recent examples:
the delivery of the fire control
Well positioned: Michael Heinzemann, managing director of Rheinmetall Hellas.
system, the Inochios command system
and the weapon system L55 for the
Leopard 2-HEL main battle tank, the
operational readiness of the Leopard
2A4 main battle tank handed over to
the Hellenic Army and the upgrade of
the Velos air defence system. The Greek
armed forces plan to invest billions in
defence systems in coming years.
Newsline: Do you think Rheinmetall
stands good chances of securing orders
from Greece?
Heinzemann: Yes, I think our chances
are good, especially as a lot of our
products are ideally suited to meet the
requirements of the customer. Given
the market potential and the attractiveness
of our product portfolio, it is hardly
surprising that the Greek armed
forces are among our key account customers.
8
Newsline: Nonetheless, the Greek
market has its very own distinctive
characteristics including the call for
“local content” and “offset”. What exactly
does this mean?
Heinzemann: When military equipment
is procured from abroad, the
Greek government demands the industrial
involvement of the local defence
industry, the so-called industrial participation.
The underlying aim is to return
some of the tax money invested
abroad to create local added value, and
thus to secure jobs in Greece.
Newsline: When placing orders with
foreign businesses like Rheinmetall….
Heinzemann: …..the Greek government
also requires so-called offset
business. Essential criteria determining
the placement of an order are not
just the correct product qualities and
low prices, but also attractive co-production
and offset programs.
Newsline: Is Rheinmetall Hellas a
perfect example of the internationalization
of Rheinmetall Defence’s business
activities?
Heinzemann: Yes, I would say so. The
company is registered in Athens, certified
in accordance with ISO 9001:2000 and
approved by the Greek armed forces as a
security-checked local supplier. The
Rheinmetall Hellas team already contributes
significantly toward the targeted
increase in defence exports to 70 percent.
Newsline: Wolfgang Kühn (see articles
on pages 16 and 17) who joined you in
the middle of 2006 is someone who has
ventured abroad in this day and age of
globalization. In a way, the establishment
and management of a foreign company
was a terra incognita for you, too.
On a more personal note, do you feel you
have benefited from this?
Heinzemann: Despite all the harmonization
hitherto achieved in the European
Union, the job here demands an
intensive understanding of local specificities,
especially in terms of corporate
and tax law.
Newsline: Is that all?
Heinzemann: Of course not. A broad
knowledge of all business processes is
needed which, in turn, calls for an understanding
of many aspects for which a larger
business usually has large numbers of
specialists. The combination of a new career
challenge with daily life in a Mediterranean
culture and society has broadened
my horizon and is what makes this assignment
abroad so appealing.
Newsline: In other words, you would
do it again?
Heinzemann: Very definitely!