Grabbing opportunities SMAG

GRABBING OPPORTUNITIES

Specialist mechanical engineering company Salzgitter Maschinenbau AG (SMAG) is the world market leader in the development and manufacture of grabs for bulk cargo applications. Emma-Jane Batey spoke to marketing director Jurgen Bialek to find out how the company expects to grow through continued strategic acquisitions and careful core business management.

Established in Salzgitter, Germany in 1919 by Anton Raky, a pioneer of the engineering industry, Salzgitter Maschinenbau AG (SMAG) today is the world market leader in grabs. A 500-person strong mechanical engineering company that specialises in the development, manufacture and operation of grabs for the loading and unloading of sea-going cargo vessels, SMAG operates worldwide.

Bought by the Salzgitter Group is 1937, SMAG has continued to acquire strategically beneficial companies throughout its nearly 100-year history in order to gain brands, skills and market presence. It bought the grab division of Peiner AG in 1986 and continues to operate under this well-known brand for its grabs. It uses the SMAG brand for motor, hydraulic and rope grabs. Both names are considered leaders in their fields.

Marketing director Jurgen Bialek told Industry Europe how SMAG’s core competencies continue to be boosted by clever acquisitions. He said, “Relatively recently we bought special technology company Herbst GmbH located in Braunschweig which has allowed us to enjoy rapid growth in this sector, as it was respected for its truck loading equipment specifically for the mining and steel mill industries. Now called

Herbst SMAG Mining Technologies GmbH, it has brought us increased activity in mining technology which works well with our existing mining equipment capabilities.”

Grabs and more

SMAG’s core competencies see mining technology sit alongside its famous grabs and mobile antenna equipment. These three SMAG divisions all work separately from its Salzgitter head office, with further production facilities in Döbeln, Germany, and Shanghai, China. The mobile antenna equipment division primarily provides mechanically and hydraulically actuated antenna masts. The company also develops and manufactures fully automated drilling rigs specifically for salt mining applications. As the world market leader in grabs, SMAG’s Peiner grabs are ideally suited to bulk cargo applications such as the lifting and unloading of sand, gravel, coal, refuse, wood and agricultural commodities.

Mr Bialek explained how these core competencies work together to create a customer-focused offer. He said, “The blend of these services allows us to meet the demanding bulk cargo loading and unloading needs of the marine industry, particularly for cargo shipping, as well as for steel mills, incinerator plants, construction and timber sectors. We have extensive in-house capabilities that we have developed throughout our history, and added to by clever acquisitions that highlight how closely we appreciate the needs of our customers.”

SMAG now has 100 per cent ownership of a Leipzig based company called Matec. Matec’s expertise in manufacturing cabins for trucks for excavators and other applications is a welcome addition to the SMAG portfolio. SMAG now also owns 70 per cent of a joint venture in China, where a further

420 employees are based. Manufacturing grabs for the local Chinese market as well as other components, this joint venture contributed €35 million to the company in 2011.

Mr Bialek added, “We have been very pleased with our financial results in 2011 and see our upward trajectory continuing, particularly as the market is likely to be more positive in 2012. Our 2011 results saw us achieve a total turnover of €190 million, thanks to €140 million from the grabs business, of which €105 million was gained from the Peiner brand in Salzgitter and €35 million from our manufacturing in China, with a further €20 million from the Herbst SMAG Mining Technologies GmbH business and the remaining €30 million from the Matec activities.”

Continuing investment

Ongoing investment also plays a key role in SMAG’s continuing success, both in terms of adding to its existing capabilities and by increasing its technical offer. The company invests every year, with its 2011 upgrades including a new state-of-the-art paint shop and drying hall. This will ensure that SMAG is staying ahead of the changing EU regulations requiring all companies to use only water-based paint for ecological reasons.

SMAG has also recently bought two new machines which offer the very latest plasma cutting technology. Already installed and working efficiently, this machine will boost its effectiveness and productivity in this department.

Already enjoying a broad global presence, SMAG can meet the needs of its customers worldwide, with a particularly strong position in Europe, the US, Australia, Asia and South America. Mr Bialek continued, “As yet we are not that strong in the Middle East or Russia, where we are keen to find new partners to enable us to bring our products and services to these regions. Strategic acquisitions have long been an important part of our business development strategy and we are cooperating closely with the German Chamber of Commerce to ensure that we are utilising all possible opportunities.”

SMAG is focusing its ongoing acquisition plans in the fields of coil tongs and paper tongs as these will add value to its current crane and grab offer. Open-minded to the location and specific capabilities of its potential acquisition targets, SMAG expects that its marine activities will steadily be eclipsed by its growing material handling business. n