Laeis Strenghtened under the Roof of Sacmi Group 2

2005-04-06

cfi: Is it planned to reduce the business activities of Laeis Germany to become a site for engineering, sales and marketing activities? How will the business areas R & D be covered? KE: As you should know, Laeis can perform all its tests and its researches in our facility in Aachen, called Alpha Ceramics (a 100 % subsidiary of Laeis), which is mainly focused on the refractories processes and materials. But of course, Sacmi made huge investments in the past years to build up very competent and skilful laboratories and fully equipped pilot plants, not only located in Imola, but also NIV in Verona/I, Sama and Riedhammer (both D), so that our possibility to test different materials and processes has actually expanded. cfi: Is closer co-operation with Riedhammer in the kiln construction and automation business fields planned? KE: As we are now under the roof of the Sacmi Group and especially of Sacmi Forni, which is also a well known manufacturer of very sophisticated kilns for ceramic products, we are taking the opportunity to concentrate and focus the kiln activities. At present we are endeavouring to organise and concentrate capacities within our Group to a high level of engineering and technological forces as well as the commercial co-operation so that also high synergy effects can be achieved. In the course of these activities, we have now decided to concentrate and integrate the kiln division of Laeis into the Riedhammer site and company in order to bundle our kiln activities in Germany together. With a view to the future we are sure that this integration will be of big advantage for all our customers, because the new concept will give us more possibilities in respect to new developments and innovations in the world wide kiln business. The continuation of the Laeis kiln technology is assured due to the fact that all the technology, know how, software and hardware as well as the main technicians are moving to Riedhammer and will therefore remain in the Group in future as well. Inside the Sacmi Group, Riedhammer is the company in charge of taking care of all the kilns different from those firing tiles, and it will share the market with Sacmi Forni only for tableware and sanitaryware. This focus will lead to the merger of the activities of Laeis with the ones of Riedhammer in the same market, in order to find a synergy effect to get a more competitive offer, in terms of range of production and flexibility of human resources. But of course the traditional Laeis?clients can still count on the same kiln design they like and the availability of spare parts for their existing equipment as the aim of Sacmi Group is to extend the range of commercial offers, not to limit our client choice. The Laeis facility in Wecker cfi: The refractories industry is connected to the steel industry. The enormous increase of steel production in China has resulted in a higher share in the Chinese market for the producer of refractories. Hence international leading producers engaged their activities on site in China. How do you benefit from this market situation in general? KE: Laeis as well as Sacmi already have long term experience in China and based on the existing service and sales network in China, both of us have increased and will further increase the sales of machines to China. The import of complete plants into China is a smaller business compared to the single machine business. Chinese companies are already prepared for some local engineering. Special machines like hydraulic presses and kilns are considered to be imported because quality, productivity, reliability and economical performance as well as environmental requirements cannot be met by their locally produced machines. cfi: The infringement of copyright in China is considered to be unsatisfactory. Do you see any chances to counteract? KE: A supplier/exporter to China should know about the still existing uncertainties regarding copyright in China and legal security will only improve slowly. To secure our chances for sales of machinery to China in the future we have to keep certain advantages in our products regarding quality, productivity, reliability and economical performance as well as environmental requirements. cfi: Refractory producers postulate products with long economic life-time. How can Laeis take part in this product development? KE: Laeis is world wide well known as a supplier of machinery, plants and know how for the refractories production. The long-term experience and the continuous close contact with our customers is continuously providing chances and possibilities to improve the refractory products. Together with Alpha Ceramics developments as vacuum pressing, two layer refractory products, a new control system for refractory kilns are the result of the Laeis part of product development. cfi: Depending on the market region environmentally friendly production processes and products are relevant for the customers ?how do you consider these demands? KE: All the products of Laeis are developed under the consideration of the highest environmental standard requirements e.g. regarding oil and dust contamination (hydraulics), acoustic protection, energy consumption, cooling water treatment or air pollution (kilns). Further technical developments and research to keep our leadership and success are considered continuously and these processes are independent of the regions to where the product will be delivered. cfi: What are the aims of Laeis concerning the development of new products? KE: Our core business remains the development and sales of hydraulic presses and kilns for the (first priority) refractories industry. But together with Alpha Ceramics we are developing and selling hydraulic presses for new and special applications as there are anode blocks, building materials (concrete pavers and parts, roofing tiles), salt blocks and salt tablets, carbon products and with these developments we aim to increase our turnover and results. cfi: Thank you for the interview. KS the end