THE EUROPEAN – SECURITY AND DEFENCE UNION
A Strong Base in Europe for Global Ambitions Jean-Paul Herteman, President of the Committee of Directors, SAFRAN, Paris The European-Security and Defence Union: SAFRAN is a global player in civil aviation, in defense and in the security sector. The company is also a major manufacturer of rocket engines for space applications and is a leader in biometric identification systems. On the military market, SAFRAN is found in almost all airborne systems. What does your overall strategy look like and on what is it focused? J.-P. Herteman: By the end of 2008, SAFRAN will be one of the major equipment suppliers in aerospace, defense and security, and we will be concentrating on these three sectors in future. So we will shortly be spinning off our telecommunications activities. To place SAFRAN in the right context, I would add that we are number five in the world on the basis of sales and our strategic goal is to raise ourselves a few rungs higher. The European-Security and Defence Union: And how do you see the space sector in your group? J.-P. Herteman: Those companies operating solely in the aerospace segment, such as Goodrich, are few and far between. As a rule, companies operate in several major areas, such as aerospace and defense or aerospace and security, or are at home in all three such as SAFRAN, namely aerospace, defense and security. Even if the technologies involved may sometimes be very different, it is vital to retain the confidence of the major customers in order to be considered for large and complex high-tech programs with a long-term orientation. This is a very specific sector.
Jean-Paul Hertemann Safran Group Chief Executive Officer (September 3, 2007, onwards) President, Defense Security Branch Jean-Paul Herteman is a graduate of Ecole Polytechnique and of Ecole Nationale Supérieure de l'Aéronautique et de l'Espace. In 1984, he joined Snecma and assumed until 1995 among others the positions of Quality Director (1989 - 92), Mechanical Division Manager and Deputy Technical Director (1993 - 95). In 1995 CFM56 Program Manager at Snecma and Executive Vice President of CFM International; 1996 Vice President Engineering of Snecma . In 1999 Executive Vice President and General Manager of Snecma Rocket-Engine Division and was then appointed Chairman and Chief Executive Officer of Snecma Moteurs in 2002. From 2004 till 2006: President, Defense Security Branch and Chairman & CEO of Sagem Défense Sécurité.
The European-Security and Defence Union: You have just stressed that you aim to become even bigger. How do you aim to achieve this? J.-P. Herteman: There are two ways to grow: organically by making intensive efforts in technological R&D, and by acquiring companies. As an example of the first way I would mention our great advances in the security sector, and specifically in identification. In fact, our biometric algorithms have left our competitors behind in terms of performance, precision and speed. As regards the second path to growth opportunities, namely acquisitions, we stick to the basic principle of buying companies only when we are convinced that they will make a vital strategic contribution, either in terms of technology or by complementing our market coverage. The European-Security and Defence Union: This is a complementary strategy that appears to be successful. J.-P. Herteman: That is precisely a specific feature of SAFRAN. We try to develop by means of investments and technological breakthroughs.
Jean-Paul Herteman, head of the world’s fifth largest aerospace and defense group, talks to Hartmut Bühl, Correspondent of the Behörden Spiegel and Editor of “The European –Security and Defence Union”. photo: Jean-Marie Ramès/SAFRAN.
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The European-Security and Defence Union: Globalization in conjunction with the weak dollar has surely had an impact on your strategy and business development. Are you planning to outsource facilities on a larger scale? J.-P. Herteman: Like all companies in our sector, SAFRAN must also become increasingly international, as our industry has an unequivocally global character. We are continuing to place our supply chain on an increasingly international basis. There are two reasons for this: the dollar and competitive pressure. We
