Drives specialist SEW-Eurodrive is holding its own in difficult times. Motion Control’s editor Kim Roberts recently paid a visit to MD, Raymond Obermeyer, to find out how the company is achieving this.
Motion Control: What have the challenges been in your time as MD and how have you dealt with them?
Obermeyer: These are challenging times. The volatility of the rand has had a massive effect on our business as 70% of our products are imported so we have had to find other ways to grow our business. We have looked at our core business and we have looked internally at our efficiency and found ways of cutting out unnecessary costs where it made sense. We have also built on our strengths in the markets where we are doing well and this has worked well for us. This has been a very successful journey for us and we have grown in many aspects.
Motion Control: What would you say is your biggest achievement in the last year.
Obermeyer: Our biggest achievement has been to keep a stable ship without any retrenchments and still look after our highly qualified and experienced staff. We went back to grassroots and tried to understand our people and listen to them about what they thought was the way forward. This was another great challenge.
SEW-Eurodrive is 85 years old this year. We are trying to bring real family values to our organisation and this is very important to us. We have identified six: customer service – placing our customers first; engagement – we want all of our staff to share the SEW vision and passion; profit – we aim to achieve our financial goals and cost savings; integrity – we want to act and operate at all times with integrity; teamwork – we want to work together as a team; and quality – we aim for zero defects.
Motion Control: What are your key target markets?
Obermeyer: Mining is still our largest market but this industry is down by 30% and we are not at the capacities we used to be. Our other major markets are automotive, logistics and food and beverage and all of these are doing well. Some product ranges have grown and we have found them a place in the market. We have a very broad product range and our saving grace is the diverse range of industries that we serve.
Motion Control: What new products and services are you launching?
Obermeyer: Our service department has grown substantially all over Africa and is becoming a big part of our business. We will be launching a new product at Electra mining, the DRN high efficiency range of IE3 motors; and we will be concentrating on our core products that have been our bread and butter for 85 years – we are going back to basics.
Motion Control: How does SEW-Eurodrive South Africa fit into the company’s global vision and strategy?
Obermeyer: SEW-Eurodrive Germany is present in 50 countries worldwide and we are one of the larger subsidiaries – among the top 15 in the world. With the emphasis on Africa, we are very important to the group and an extension of its business as we have the exposure to Africa. SEW is expanding rapidly worldwide and is doing well globally.
Motion Control: What are your plans for the next five years?
Obermeyer: We have bought more property in Nelspruit for the expansion of our industrial gears factory and have spent 14 million rand on the expansion of this plant alone. We have also upgraded and expanded our plants in Durban and Cape Town and improved efficiencies. Our KZN factory has increased capacity from 200 to 4000 square metres. We have 210 members of staff, more than double the number five years ago, and are still hiring. We own all our own property and have the full backing of our shareholders.
Despite the difficulties, I am positive and see an upswing by the end of the year. Commodity prices are starting to turn around, gold and oil have already started to move, and I see this trend continuing. Industry is resilient and has learned to carry on and find ways and means of coping in troubled times. The power has stayed on and government and business are talking and being realistic about the need for each other.
Our journey has been a successful one. We believe we have turned the corner and when there is any expansion or boost to the economy we will be ready.
| Tel: | +27 11 248 7000 |
| Email: | [email protected] |
| www: | www.sew-eurodrive.co.za |
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