Innovation that mobilises the world

The Schaeffler Group is a globally integrated industrial supplier of high precision roller bearings, components and systems. These are principally manufactured for the automotive, avionics and global manufacturing industries. Philip Yorke takes a closer look at one of the world’s largest privately owned companies, its innovative products and strategy for future growth.

Since its foundation more than 120 years ago, Schaeffler has relied upon its pioneering spirit and high quality innovative products for its on-going success. Over the years, the company has been responsible for the invention of the ball-grinding machine, the development of the cage-guided needle roller bearing and the diaphragm-spring dual clutch for tractors.

The group’s global brands include INA, LuK and FAG. Today the company is a major player in the roller bearing industry and a significant partner for virtually all of the world’s automotive manufacturers. Schaeffler is one of Europe’s largest technology companies to remain in family ownership. It has a worldwide network of ‘state-of-the-art’ manufacturing facilities, as well as research and development facilities in over 170 locations across 50 countries worldwide.

In 2014 the Schaeffler Group generated sales of around €12 billion and employed more than 80,000 people. Today the company has over 27,000 international patents in force.

Strong global brands

The Schaeffler Group has three well-recognised global brands – INA, Luk and FAG – and operates two key business divisions: Automotive and Industrial. The group’s main customer is the automotive industry to which it offers expertise and products for the entire drive train, including engines, chassis, transmissions and accessory units for passenger cars and commercial vehicles.

In the industrial sector, the group’s INA and FAG brands produce over 40,000 high-volume products and cover over 60 sectors of the world’s

manufacturing industries. The renowned Aerospace business unit of the industrial division also produces high-precision bearings for aircraft, helicopters and rocket engines, which are employed in the Airbus A380 and the Boeing 787 Dreamliner.

Unrivalled global presence

Today the Schaeffler Group enjoys an unrivalled global presence with 45 manufacturing locations in Europe alone. This is in addition to 12 in North America, two in South America and 15 in the Asia Pacific region. All the company’s facilities operate under the same high quality and environmental standards and are certified in accordance with established international guidelines.

Last year, in the light of its growing international importance, the company reorganised and realigned its many operational regions.

Following this decision, China was designated as a separate region and re-named ‘Greater China’. In addition, Korea, Japan and the countries in South East Asia were combined to form a new region: ‘Asia/ Pacific’. India also became part of the newly created region ‘Europe’, which includes not only Germany, but also the Middle East, Africa and Russia. Finally, the original geographic regions of North and South America have been combined into one region, the ‘Americas’.

By 2014 the Schaeffler Group had generated around 23 per cent of its total global sales in the Asia/Pacific region. Given the future growth dynamics of the area the company expects to increase its share of the region’s sales to over 25 per cent this year.

Expanding distribution network

Schaeffler AG recently announced that it is investing over €200 million in a new European distribution network with four key locations, which will include the construction of a new European Distribution Centre (EDC Mitte) in Kitingen, Germany. This new site is expected to be fully operational by the first quarter of 2016 and the new facility will employ over 250 people.

In addition to the Kitzingen site, the European distribution network will also include a facility for northern Europe located in Sweden and another establishment in southern Europe in Italy. A further location

in western Europe is also planned. The construction of the European distribution centre is one of 20 such initiatives that make up the ‘ONE Schaeffer’ programme.

The aim of this investment project is to modernise the Schaeffler Group’s European logistics activities. Rosenfeld said, “The expansion and modernisation of our European distribution network is of strategic importance for the Schaeffler Group. By approving this decision today, we are reaching a further milestone in the implementation of our ‘ONE Schaeffler’ programme. The excellent and constructive cooperation with our employee committees is a significant factor for success here.”

New technologies on display at Hannover

Schaeffler roller bearings are at the heart of new technologies to be showcased at the Hannover Messe this year. These will demonstrate their increased performance, efficiency and intelligence. In addition to the perennial themes of economy and energy efficiency, the focus will also be on sensors, actuators and networking, as well as continuous condition monitoring. These are all key areas in the company’s new product development strategy. “The drive components with integrated sensor technology and smart actuators that we are presenting in Hannover are a prerequisite for networking machinery and plant, as well as for the control of autonomous processes in our customer’s value-added chain,” said Robert Schullan, member of the executive board at Schaeffler AG and president of Schaeffler Industrial.

One of many new technologies featured at Hannover by Schaeffler is its new magneto-elastic FAG Torque measuring unit. This unique mechatronic solution from Schaeffler provides significantly more accurate monitoring and control of applications and processes. By offering solutions for bearings and subsystems Schaeffler is able to provide this unit as a special, ready-to-fit solution.

Schaeffler is also presenting its innovative ‘screw-drives’ for electromagnetic linear actuators. This new PWG planetry screw-drive is paving the way towards ‘Smart actuators’, which are high efficiency linear actuators with minimum space requirements. This latest range of products is already being used in the automotive industry as clutch actuators.

In another ground-breaking development, Schaeffler is presenting a new bearing design on its stand in Hall 22, Booth A12. This is the ‘toroidal’ roller bearing FAG-TORB in X-life quality. It is a roller bearing with angular adjustment in X-life quality, and combines the angular adjustment capabilities of the spherical roller bearing with the axial displacement of a cylindrical or needle roller bearing. TORB bearings allow the operational reliability and cost-effectiveness of locating/non-locating bearing supports to be significantly increased.

Possibly one of the most interesting developments from Schaeffler to be seen at Hannover is its comprehensive range of new roller bearing solutions. These new innovative products increase resistance to ‘white etching cracks’ in bearings and prevent premature bearing failure. White etching cracks are structural changes in the material that form below the surface of the bearing under the influence of extreme external loads.

Excellence rewarded

From its suppliers, Schaeffler expects excellent quality, reliability, competitive cost structures, service innovation and a global presence.

Recently the company’s top-performing suppliers were rewarded with a special presentation at the bi-annual Schaeffler Supplier Award ceremony at its headquarters in Herzogenaurach, Germany.

Today Schaeffler has 73 manufacturing sites worldwide and more than 1300 suppliers. Eighty suppliers from 22 countries were selected to attend the ceremony, of which, 14 were chosen in a preliminary selection process. Oliver Jung, CEO, Michael Hartig, executive VP corporate purchasing and Andreas Knoll, senior VP Corporate purchasing direct material, thanked the companies for their excellent work and presented awards to the following companies:

AKS Amatsuji Steel Ball MFGCo Ltd,. Japan, American MSC. Inc. USA, BASF SE – Germany, CALVI SpA, Italy, Dongkuk Industries Co Ltd. Korea, Erdich Umformtechnik GmbH, Germany, Kamax Automotive GmbH Germanty, KSL Ljubno d.o.o. Slovenia, KOBE STEEL Ltd. Japan & Shinsho Corporation, Japan, Quzhou JW Machinery Co. Ltd. China,Reinhold Mendritzki Ka;twalzwerk GmbH, Germany, Salzgitter Mmannesmann Stahlservice GmbH, Germany, Zhangjiagang Hongyang Metaqlwork Manufacturing Co, Ltd, China, and Zhejiang Conntinents Xinchun Group Co Ltd. China.

In his presentation at the award ceremony, Mr Jung discussed the expectations and opportunities for collaboration with suppliers. “Our strategic suppliers play an important role in the Schaeffler production system and support Schaeffler in achieving its high targets in terms of quality, costs and delivery reliability. With this aim, Schaeffler and its best suppliers will dovetail more closely in future in order to reduce inventories and throughput times along the entire supply chain.” n

For further details of the Schaeffler Group’s innovative products and services visit: www.schaeffler.com