Global Insider 04/2011 - Seco-Warwick
Global Insider 04/2011 - Seco-Warwick
Global Insider 04/2011 - Seco-Warwick
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QUARTERLY • ISSUE 4/7 • <strong>2011</strong><br />
FOR US AND ABOUT US
4/<strong>2011</strong><br />
WE DO NOT ACT IN VACUUM …<br />
We do not act in vacuum as all our<br />
actions, whether private or professional, are<br />
established in the environment and among<br />
other people. Our professional successes and<br />
failures depend on our interaction with our<br />
colleagues and customers.<br />
With regard to this self-evident cliché, in<br />
the present issue of <strong>Global</strong> <strong>Insider</strong> we are<br />
focusing mostly on "our people" - the<br />
employees of <strong>Seco</strong> Group.<br />
We are writing about those who devoted<br />
many years of their careers to working for SW<br />
companies, about those who have just joined<br />
us and also about those who are the future of<br />
the Group and have just embarked on the<br />
Talent 2012 programme.<br />
Other important issues will be addressed<br />
herein as well.<br />
Robert Szadkowski, IT Director for SWSA,<br />
is writing about joint standards of project<br />
calculation (in the context of the well-known<br />
Phoenix software) and their significance in the<br />
furthering of intragroup co-operation.<br />
Agnieszka Gudaczewska, controller in<br />
SWSA, SWR and SWA, describes the functions<br />
and role of controlling in company management<br />
by comparing a manager who uses<br />
controlling data to a navigator who reads<br />
maps and steers the ship along the predefined<br />
route.<br />
In this edition we are commenting on the<br />
results of SW Group after 3 quarters of <strong>2011</strong>,<br />
presented recently to our investors on<br />
Warsaw Stock Exchange. The results<br />
achieved and the backlog earned explicitly<br />
indicate that condition of the holding is<br />
decidedly better than in analogous period of<br />
the previous year and that we have good<br />
perspectives for a further growth.<br />
And here comes a paradox which is worth<br />
emphasizing:<br />
We have not recorded any increase in the<br />
price of our shares on the stock exchange!<br />
And this has happened despite boasting one of<br />
the best quarterly results in the Group's history<br />
and a high order backlog in the Group's<br />
companies. The stock exchange investors are<br />
still under the pressure of fear resulting from<br />
the crisis in Greece and Italy and the overall<br />
problems in the entire Eurozone. It shows that<br />
we are not acting in vacuum and the impact<br />
of macroeconomic factors upon our standing<br />
is direct and may be substantial. Therefore, it<br />
is worth remembering.<br />
Should we fear the crisis, then?<br />
What crisis? - ask the bosses of companies<br />
and plants. High backlog in most companies<br />
and the perspective of signing a number of<br />
major contracts in the weeks to come are<br />
indicative of a boom rather than a crisis.<br />
And this is not merely official optimism but<br />
rather one supported with figures by people<br />
who on daily basis verify the level of boom<br />
through concluded contracts.<br />
We are not acting only in "vacuum"<br />
which, being a leading product company, set<br />
themselves even more ambitious tasks for<br />
2012. We are also acting in CAB, in<br />
Atmoshere, in AP and in Retech and Allied<br />
technologies. The variety and quality of our<br />
technologies, our global structure, constantly<br />
improved standards, our experience and, last<br />
but not least - our people: these are our major<br />
assets.<br />
With greetings and regards to all the hard<br />
working employees of the SECO/WARWICK<br />
Group. Wishing you Merry Christmas and a<br />
very Happy New Year, prosperity, happiness<br />
and peace!<br />
Leszek Przybysz,<br />
President SWSA<br />
PHOENIX PROJECT<br />
In the previous issue of <strong>Global</strong> <strong>Insider</strong> the<br />
SWC President Keith Boeckenhauer wrote<br />
about the Phoenix project and its range of<br />
application. Today I would like to focus on<br />
two selected aspects of the project.<br />
Standardization<br />
Let us imagine two or more automotive<br />
enthusiasts comparing various vehicle models.<br />
One of them will talk about the speed, the<br />
other will stress the carrying capacity while<br />
the third one will focus on ergonomics. Their<br />
opinions will be varied and far from being<br />
coherent simply because the leaders in each<br />
field will be, for example, Porsche, Scania<br />
and Mercedes. In a similar way we might<br />
describe SWG companies discussing<br />
equipment cost: different division into<br />
subassemblies, different calculation methods,<br />
different approach to overheads. The task of<br />
comparing selected modules, both technically<br />
and financially, was time-consuming,<br />
inefficient and erroneous.<br />
The first major element in dealing with the<br />
problem was a SWG-wide standardisation of<br />
product structures based on a modular<br />
division. Unambiguous defining of a module<br />
(so far Release in SWC, NKZ in SWTA, NKP in<br />
SWSA) for each product group facilitated<br />
creation of identical tools for calculation and<br />
budget comparison among all companies<br />
within the Group. For<br />
example, since that implementation the water<br />
system begins and ends at the same place<br />
independent of the product, its location and<br />
authorship.<br />
The result of the new division is a uniform<br />
calculation pattern that is<br />
identically created and<br />
interpreted and most<br />
important of all,<br />
replaceable and<br />
comparable among the<br />
group's companies. These<br />
works have borne first<br />
fruit in the cost estimates<br />
for identical CAB unit<br />
manufactured either at<br />
SWC or at SWR or at<br />
SWSA. As a consequence,<br />
it is now possible to<br />
decide on making the<br />
Degreaser at one of the<br />
companies, the Fluxer at<br />
another and the rest at the<br />
third one to a joint<br />
success for each of the<br />
companies and the entire<br />
Group.<br />
2<br />
Poland • USA • China • India • Germany • Russia
4/<strong>2011</strong><br />
Cost control<br />
At the same time work continued to<br />
systematize and standardize methods to<br />
predict and prevent cost exceeding through<br />
using the ERP systems of individual<br />
companies. SWC were successful in<br />
implementing an original solution based on<br />
MsAccess database for running analysis of<br />
cost at the sales stage, those planned at order<br />
execution stage and those booked by the<br />
finance<br />
department.<br />
The already<br />
existing<br />
system<br />
JobScope<br />
provides data<br />
which, after<br />
being<br />
segregated,<br />
filtered and<br />
collated,<br />
represent a<br />
predefined<br />
element of cost estimate.<br />
At SWSA the same tool was implemented<br />
with a package Business Intelligence Leader.<br />
This solution also allows an on-line monitoring<br />
of estimate costs in relation to the budget and<br />
current costs and, if required, a prompt<br />
reaction in the event of any threat.<br />
At SWTA they are finalizing an analogical<br />
solution based on MFG Pro. This necessitated<br />
a replacement and installation of a new RCP<br />
BUDOWA NOWEJ HALI<br />
system. By the end of the year the complete<br />
systems will be passed to the users.<br />
It must be emphasized that the users of<br />
these systems at SWC, SWTA and at SWSA are<br />
not only the manufacturing plants but rather<br />
all departments involved in order completion.<br />
A contribution is expected from the sales<br />
personnel, the cost estimators, design and<br />
process engineers, purchase and outsourcing<br />
departments, then manufacturing and, least<br />
but not last, the service department. Each<br />
department have their role to play and only<br />
with full involvement of all them the assumed<br />
goal will be attained.<br />
I could sum up here that Phoenix Project<br />
was successful. Of course it was so. The<br />
project implementation was definitely<br />
completed. However, implementation was not<br />
the goal in itself but it was aimed at the<br />
improvement of financial results and this is<br />
something I shall be anxiously looking<br />
forward to.<br />
Robert Szadkowski,<br />
IT Director SWSA<br />
TALENT 2012<br />
On November 8th a meeting was held to<br />
open the development programme for SWSA<br />
and SWTAL employees "Talent 2012".<br />
The meeting was attended by board members<br />
of both companies and shortlisted employees:<br />
28 from SWSA and 26 from SWTAL.<br />
The main objective of the programme is<br />
the development of employee potential in<br />
SECO/WARWICK GROUP in order to prepare<br />
them to take up key medium and higher<br />
executive positions in the companies and the<br />
entire SW Group.<br />
"Talent 2012" programme will involve a<br />
group of the most talented employees who,<br />
following a preliminary qualification, will be<br />
offered a properly designated development<br />
programme to suit their individual potentials.<br />
Starting in November <strong>2011</strong>, the programme<br />
will continue for approximately 18 months<br />
and will cover a variety of training sessions,<br />
academic learning, individual coaching and<br />
other methods of raising professional<br />
qualifications of employees. The participants<br />
will go through both intermittent and final<br />
assessment. To co-operate on the programme,<br />
SECO/WARWICK invited an external<br />
consulting company Res Consulting SC,<br />
which, together with Ms Maja Ziêba and Ms<br />
Katarzyna Kowalska - the HR heads in the<br />
companies involved, will take care of the<br />
substantial aspect of the programme.<br />
Opening the meeting with 54 candidates,<br />
the President of the Board Leszek Przybysz<br />
said, among others:<br />
"Talent 2012 Programme" refers to the best<br />
traditions of <strong>Seco</strong>'s development in Poland<br />
like the similar programme initiated at the end<br />
of 1990s' which was addressed to young<br />
employees of the greatest potential. The<br />
participants in that programme are now the<br />
core management in both Polish companies of<br />
SECO Group. In connection with the growth<br />
strategy being currently implemented, today<br />
we are embarking on a new programme<br />
which will prepare new managing and<br />
engineering personnel for SECO. The program<br />
was conceived as both a strategic and allgroup<br />
endeavor since the strategic growth of<br />
the group is impossible without a personnel<br />
advancement programme and the top<br />
executives of the Group will be kept informed<br />
on the programme's progress on a regular<br />
basis.<br />
Though carried out locally in Œwiebodzin,<br />
the programme has an all-group nature i.e. it<br />
was established in response to the needs of<br />
SWSA and ThermAL, but also in response of<br />
the entire Group and in the future it should be<br />
extended to cover the other companies in the<br />
Group.<br />
It is an exclusive programme as it involves<br />
candidate selection on a number of stages:<br />
first selection on plant level by plant<br />
managers, then detailed assessment of<br />
candidates by the consultants and finally<br />
selection of the best ones by joined boards of<br />
the participating companies. As a result of this<br />
qualifying round only a dozen or so<br />
candidates will remain.<br />
Thus, "Talent 2012" creates an exclusive<br />
group which other employees should wish to<br />
join.<br />
It is an open programme, because all<br />
employees were considered at the first<br />
selection stage. At every stage of training the<br />
programme provides for withdrawing some or<br />
adding new outstanding candidates.<br />
In its form "Talent 2012" is meant to be a<br />
competitive enterprise since participation<br />
therein should be seen as internal competition<br />
among the candidates. What we are striving<br />
for is the preparation of employees who not<br />
only are educated but aware of their what<br />
they want, aggressive and determined to<br />
succeed.<br />
Furthermore, the programme is expensive<br />
and at the same time of best quality: it should<br />
provide knowledge of top range, not<br />
superficial but profound and decidedly better<br />
than that supplied by random higher schools."<br />
Programme "Talent 2012" will not be<br />
limited to the year 2012 but will be continued<br />
in the subsequent years. I would like to<br />
congratulate all the participants and wish<br />
them the best of success in the selection<br />
procedures as well as a successful completion<br />
of the programme.<br />
"Needless to say, the programme does not<br />
prevent the candidates from participating in<br />
the TV show "Got Talent" nor does it aspire to<br />
replace the latter. Nevertheless, it is<br />
becoming commonly called Got Talent in the<br />
companies by the preselected candidates,"<br />
said Leszek Przybysz.<br />
Poland • USA • China • India • Germany • Russia<br />
3
4/<strong>2011</strong><br />
THE CONCEPT OF CONTROLLING<br />
"Just as a navigator continually takes reading<br />
to ensure whether he is relative to a planned<br />
action, so should a business manager<br />
continually take reading to assure himself that<br />
his enterprise is on right course."<br />
[C.O'Donnell]<br />
Finance & Controlling is a very important<br />
function within each company. Finance<br />
people and controllers are closely related to<br />
the business. They need to have a clear<br />
understanding of how processes within a<br />
company look like and they monitor and<br />
report on its performance on a regular basis.<br />
What is Controlling?<br />
Controlling consists of verifying whether<br />
everything occurs in conformities with the<br />
plans adopted, instructions issued and<br />
principles established. Controlling ensures that<br />
there is effective and efficient utilization of<br />
organizational resources so as to achieve the<br />
planned goals. Controlling measures the<br />
deviation of actual performance from the<br />
standard performance, discovers the causes of<br />
such deviations and helps in taking corrective<br />
actions.<br />
So much for definitions. But what does it<br />
mean? What is a role of the Controlling<br />
Function, or Controlling Department in a<br />
company? To answer this, it is easier to<br />
explain what the Controlling Function is NOT.<br />
- Controlling Function is NOT a Planning<br />
Function, although it handles the financial<br />
planning in a company<br />
- Controlling Function is NOT a Finance<br />
Analysis Function, although it prepares<br />
various financial analyses of a company<br />
- Controlling Function is NOT a Control<br />
Function, although it controls the expenditures<br />
versus the approved plan<br />
- Controlling Function is NOT an Accounting<br />
Function, although it cooperates closely with<br />
it<br />
- Controlling Function is NOT a Cost Control<br />
Function, although the cost analysis is crucial<br />
for its functioning.<br />
So why do the companies create and<br />
maintain the Controlling Departments?<br />
A Controlling Department's main role in a<br />
company is to participate in goal setting by<br />
the Management and coordinate the activities<br />
within a company in order to enable the<br />
realizing of the planned goals.<br />
The key words in the above statement is<br />
the participation in goal setting, which means<br />
that a finance controller is an equal partner to<br />
the Management in the company<br />
management. Setting company goals and<br />
coordinating the activities leading to realizing<br />
those is only possible when those goals are<br />
common and well known.<br />
Of course one can argue that it is enough<br />
that the Management sets the goals and<br />
Controlling coordinates the activities.<br />
Practically, however, if the whole team is not<br />
aware or does not identify with the goals (and<br />
it's hard if they don't participate in the goal<br />
setting) - it is very unlikely that they will be<br />
involved and dedicated in realizing them.<br />
Controlling is the only logical and<br />
consistent response to the processes currently<br />
taking place in the companies and their<br />
economic environment. Market competition<br />
intensifies, and the complexity of the problems<br />
the companies face increases almost day by<br />
day. This forces them to utilize the right tools<br />
to ensure efficient navigation in the sea of<br />
information, relationships and circumstances.<br />
Controlling in SECO / WARWICK Group<br />
(or how do WE do it?)<br />
In the Polish companies of the SWG (SW<br />
SA, SW Thermal) the Controlling Departments'<br />
organization and functions are similar and<br />
include:<br />
- Budgeting: communication,<br />
coordination and preparation of individual<br />
departments' budgets and rolling them up into<br />
a cohesive company budget; quarterly budget<br />
updates, long term planning.<br />
- Reporting: preparing standard<br />
monthly reports for analysis for the<br />
Management and Department Managers,<br />
reporting overall performance of the<br />
Companies.<br />
- Monitoring of implementation of<br />
budgets and contracts costs, variance analysis<br />
and explanations.<br />
- Analysis - various, such as hourly<br />
rates, contracts cost analysis, costs and<br />
profitability of the various departments of the<br />
Companies,<br />
- Management Support - providing<br />
information, analysis, studies for managers to<br />
support decision making, preparing<br />
information provided externally, e.g. for the<br />
investors.<br />
The main objective of controlling in the<br />
manufacturing companies with a production<br />
profile similar to SWG is to control the<br />
profitability (cost, profits) on contracts, cost<br />
centers, production orders and the resulting<br />
global financial performance of the<br />
Companies.<br />
Controlling in the manufacturing<br />
companies can not only be just an<br />
'organizational unit', it should also be a way<br />
of thinking and acting of all the company<br />
departments, both directly producing and<br />
supporting.<br />
All these activities must be additionally<br />
supported by appropriate controlling<br />
information system. Controlling information<br />
system is a flexible system that takes into<br />
account both budgeted and actual numbers<br />
(budgets and performance on contracts, cost<br />
center budgets, internal and external budgets<br />
and results). Those budgets are the basis for<br />
comparisons and variance calculations for<br />
operational management, contracts<br />
management, profit centers and overall<br />
Company financial results.<br />
Agnieszka Gudaczewska,<br />
Controlling Department, SWSA<br />
THE RESULTS OF SECO GROUP<br />
Quoted below are selected fragments of the<br />
press release of 9th November <strong>2011</strong><br />
concerning the financial results of SECO/<br />
WARWICK S.A. Group in the first 3 quarters of<br />
<strong>2011</strong>.<br />
SECO/WARWICK GROUP: EXCELLENT<br />
RESULTS IN 3 QUARTERS OF <strong>2011</strong>:<br />
DISTINCT IMPROVEMENT IN MOST<br />
COMPANIES OF THE GROUP<br />
SECO/WARWICK Group, worldwide leader<br />
in manufacturing of metal heat treatment<br />
equipment, after the first three quarters of the<br />
present year has recorded a very dynamic<br />
boost of financial results and a further<br />
improvement in the condition of most of its<br />
companies, thanks to the restructuring<br />
programmes currently in implementation. In<br />
the third quarter alone the Group registered<br />
a twofold increase in year-to-year income<br />
by 110.5 mln PLN, a more than fourfold<br />
increase in EBITDA to 23.3 mln PLN, and an<br />
over threefold growth in net profits to 13.26<br />
mln PLN. On the other hand, after nine<br />
months of <strong>2011</strong> the consolidated income<br />
grew by 123 % to over 265 mln PLN,<br />
EBITDA exceeded 28 mln PLN compared to<br />
merely 84 thousand PLN in the preceding<br />
4<br />
Poland • USA • China • India • Germany • Russia
FINANSE 4/<strong>2011</strong><br />
a – 0.9 mln loss recorded a year before).<br />
The gross sales margin grew to 29 %<br />
(compared to 13 % in 2010). The<br />
company inplemented a reduction in<br />
sales and administration costs and<br />
activley continues the restructuring<br />
project.<br />
year while the net profit closed at 14.35 mln<br />
PLN compared to a rather symbolic result of<br />
the previous year.<br />
As of the end of September <strong>2011</strong> the order<br />
backlog of <strong>Seco</strong>/<strong>Warwick</strong> Group was ca.<br />
240 mln PLN (excluding the backlog of<br />
Indian SW Allied which by the end of<br />
September was 97.2 mln PLN).<br />
It was the outstanding perfomance by SW<br />
ThermAL that had the greatest impact on the<br />
improvement of the Group’s results in<br />
comparison to the previous year.<br />
<strong>Seco</strong>/<strong>Warwick</strong> ThermAL (formerly Elterma)<br />
reached a sales volume of 62.4 mln PLN in<br />
the first three quarters of <strong>2011</strong> (36.4 mln PLN<br />
in the previous year). After 9 months of <strong>2011</strong><br />
the net profit was 7.1 mln PLN (compared to<br />
„For <strong>Seco</strong>/<strong>Warwick</strong> S.A. Group the third<br />
quarter was a period when we<br />
succeeded in taking full advantage of<br />
positive market trends, which with a<br />
simultaneous distinct improvement in the<br />
condition of the Group’s companies<br />
translated into outstanding financial<br />
results. This is a consequence of our<br />
activities taken in the preceeding<br />
periods about which our shareholders<br />
were kept informed systematically.<br />
Currently we continue our efforts aimed at<br />
canvassing more contracts and keep<br />
implementing programmes to boost<br />
effectiveness in individual companies of the<br />
Group. Comabined with continually high<br />
level of bakclog this constitutes a solid<br />
ground for our expectations as to the results<br />
of the entire <strong>2011</strong>.” – said Leszek Przybysz,<br />
President of the Board of S/W S.A.<br />
"ASK THE PEOPLE I WORK WITH AND THE CUSTOMERS I SERVE."<br />
When someone asks Nathaniel Slinkert<br />
what benefit he brings to Retech Systems<br />
LLC as Director of Programs, his reply is<br />
often, "Ask the people I work with and the<br />
customers I serve." In other words, he<br />
measures his own success by his ability to<br />
facilitate teamwork among his colleagues to<br />
achieve a common goal, and in the case of<br />
doing business, that common goal is to<br />
satisfy the expectations of Retech's<br />
customers while maximizing its profitability.<br />
That has been the driving vision behind<br />
Nathaniel's efforts to build his organization,<br />
which he believes is central to Retech's<br />
global success. During his six-year tenure at<br />
Retech, Nathaniel has assembled a team of<br />
experienced project and supplier managers<br />
who daily demonstrate this vision in their<br />
relations with customers and suppliers, as<br />
well as with their fellow colleagues.<br />
Mr. Slinkert joined Retech at a time<br />
when the company was rebounding from its<br />
worst downturn in its 30+ year history. 2006<br />
to 2008 were years of rapid growth for<br />
Retech. While demand for Retech's<br />
products was at an all-time high, its<br />
resources were very thin and its quality<br />
processes were in need of shoring up.<br />
"We had to ramp up our resources rapidly<br />
to meet a sharply increasing demand for<br />
Retech's products." says Nathaniel, "Yet, we<br />
wanted to maintain a sustainable work force<br />
level that we could retain through future<br />
market adjustment cycles. So, we<br />
consciously made an effort to build up our<br />
supplier base and to outsource most of our<br />
manufacturing. This meant we had to<br />
develop a strong team to manage these<br />
suppliers. Our procurement organization<br />
desperately needed an overhaul in order to<br />
achieve this objective, and that's what I set<br />
out to do." Nathaniel brought Procurement<br />
Manager, Kathleen Goss, on board, and she,<br />
together with her team of senior buyers,<br />
Susan McLeod and Sherry Byrnes, has<br />
literally transformed the way Retech<br />
manages it suppliers.<br />
Due to the exceptional efforts of the<br />
procurement team, Retech's supplier on-time<br />
delivery percentage improved from a dismal<br />
38% in 2007 to 98% in a period of only one<br />
year, and has remained there since. The<br />
building of up Retech's supplier base has also<br />
created a healthy, competitive environment<br />
that has resulted in significant cost savings for<br />
Retech. Nathaniel exclaims that "these<br />
improvements in supplier on-time delivery<br />
and cost reduction have significantly<br />
contributed to Retech's on-going success in a<br />
highly-competitive global market."<br />
Poland • USA • China • India • Germany • Russia<br />
5
4/<strong>2011</strong><br />
Mr. Slinkert holds the view that, while<br />
Retech's marketing and sales team initiates<br />
the relationship with its customers, it's his<br />
program management team that nurtures that<br />
relationship to maturity through the successful<br />
management of each project. Once the<br />
customer places an order, the program<br />
manager becomes the primary point of<br />
contact for the customer throughout the<br />
duration of the project. Program management<br />
is, thus, one of the key roles in Retech's<br />
organization.<br />
To ensure that each project is a success, his<br />
program management team, which includes<br />
Eric Petereit, Robert Crabb, and Reuben<br />
Jacobsen, begins working with the sales team<br />
and customers as early as possible during the<br />
proposal phase of the project. Nathaniel<br />
explains that "it is imperative to the success of<br />
a project that the scope of responsibilities is<br />
clearly understood by both parties before the<br />
customer places the order. Because our<br />
program management team possesses a<br />
comprehensive, system-wide perspective of<br />
project execution, we are in the best position<br />
to bring clarity to the scope of work during<br />
contract negotiations." He goes on to state<br />
that "the key to repeat business is the<br />
successful management of each project, and<br />
that success begins with a well-defined<br />
statement of work in the contract. I am<br />
fortunate to be part of a team that wholeheartedly<br />
shares this view."<br />
Transitioning from large corporations, such as<br />
Texas Instruments, as well as start-ups in a<br />
fast-paced semiconductor industry to a capital<br />
equipment manufacturer in the specialty<br />
metals industry was a bit of a cultural<br />
adjustment for Nathaniel.<br />
However, he does not regret at<br />
all the move he made in 2006<br />
when he joined Retech. "I came<br />
from an industry in which the<br />
products are developed on the<br />
sub-micron scale and become<br />
obsolete within a year. Now I<br />
work for a company that<br />
produces very large-scale<br />
equipment that is built to last<br />
more than 30 years. It is very<br />
satisfying to be part of an<br />
organization whose products<br />
are not disposable."<br />
Nathaniel prefers Retech's work environment<br />
as well. "In Silicon Valley, people jump from<br />
company to company every other year,<br />
seeking out the next big thing, always trying<br />
to remain ahead of the curve with the latest<br />
technology. At Retech, we have folks that<br />
have been working for the company for over<br />
20 years. These long-term employees have<br />
accumulated a lot of<br />
valuable knowledge<br />
over the years,<br />
knowledge that only<br />
comes through years of<br />
experience. Retech<br />
values this experience,<br />
and leverages it to<br />
maintain its<br />
competitiveness in the<br />
global marketplace."<br />
Retech is now bringing<br />
up a younger<br />
generation of<br />
employees under the<br />
mentorship of its<br />
experienced leaders. According to Nathaniel,<br />
this younger generation is focusing on<br />
expanding Retech's business into new<br />
markets, both regionally and technologically,<br />
in order to adapt to the dynamics of a growing<br />
global specialty metals industry.<br />
"Retech is actively exploring new<br />
applications with its core melting and casting<br />
technologies, which include plasma arc,<br />
electron beam, vacuum induction, and<br />
vacuum arc among others. We also realize<br />
that, as more and more global players enter<br />
this industry, due to lack of experience among<br />
many of them, there is an increasing demand<br />
that Retech not only provide equipment, but<br />
complete melting and casting process<br />
solutions. This realization has led Retech to<br />
recognize opportunities for becoming<br />
material producers as well in some of these<br />
emerging specialty metals markets." says<br />
Nathaniel.<br />
In addition to the roles described above,<br />
Nathaniel is leading the effort to extend<br />
Retech's manufacturing capacity to China<br />
through the <strong>Seco</strong>/<strong>Warwick</strong> Retech facility in<br />
Tianjin. Retech recognizes this effort to be<br />
essential in its drive to remain competitive in<br />
the Chinese market. Nathaniel says, "Our<br />
competitors are already doing this; and we<br />
must do this too in order to remain<br />
competitive in the Chinese market."<br />
As if he didn't have enough responsibilities at<br />
Retech, Nathaniel returns home in the<br />
evenings to a family of seven children.<br />
Nathaniel says with a smile, "Having a big<br />
family keeps me sane, because it forces me to<br />
focus, not on my own wants and needs, but on<br />
those of my children; and with that, comes the<br />
joy that only children can bring to one's<br />
heart."<br />
Nathaniel and his entire family are active<br />
performers in local community musical and<br />
theatrical events. He is also choir director at<br />
St. Peter Catholic Church in Ukiah. While at<br />
home he loves to cook (large meals!) and<br />
brew beer. When he finds rare opportunity for<br />
a relaxing evening, he enjoys sipping Grand<br />
Marnier and petting the dog while reading a<br />
good novel, and sometimes he even dabbles<br />
in play writing.<br />
6 Poland • USA • China • India • Germany • Russia
4/<strong>2011</strong><br />
ASM HEAT TREAT EXPO <strong>2011</strong><br />
SECO/WARWICK Corp. opened the ASM<br />
Heat Treating Society 26th Conference and<br />
Exposition in Cincinnati at the beginning of<br />
November.<br />
The Heat Treat Expo is held biennially at<br />
various locations in the United States. SECO/<br />
WARWICK Corp. was one of 152 exhibitors at<br />
the Heat Treat Expo, which was put on in<br />
conjunction with the Gear Expo. There were<br />
176 exhibitors at the Gear Expo.<br />
The Heat Treat Expo at the Duke Energy<br />
Center was Nov. 2 and 3.<br />
SECO/WARWICK Corp.'s booth was 200<br />
square feet. Members of the thermal process<br />
and vacuum teams were on hand to meet<br />
with customers and vendors at the biennial<br />
event.<br />
Fourteen SECO/WARWICK CO. employees<br />
attended and about 60 leads were made. Bill<br />
St. Thomas made a presentation on the<br />
CaseMaster Evolution on Nov. 3. St. Thomas<br />
also conducted an interview with a member<br />
of ASM International that can be seen at http://<br />
www.youtube.com/<br />
watch?v=HU5-<br />
PFVGtMg. Maciej<br />
Korecki led a SECO/<br />
WARWICK CO.<br />
presentation on Nov.<br />
1 during the technical<br />
program on the<br />
multipurpose<br />
LPC+LPN+HPGQ 25<br />
Bar N2He Vacuum<br />
Furnaces.<br />
The next ASM<br />
Heat Treat Expo is in<br />
Indianapolis in 2013.<br />
The next big tradeshow for the vacuum and<br />
thermal team is Furnaces North America,<br />
which is Oct.12-13, 2012 in Nashville.<br />
He spent his first days with product teams at<br />
SECO/WARWICK ThermAL, Œwiebodzin,<br />
Poland and in Meadville. He also has stops in<br />
India and China planned. Kreuzaler will<br />
oversee and support their marketing and sales<br />
strategy.<br />
Two new faces, Thomas Wingens and<br />
Thomas Kreuzaler, were among the SECO/<br />
WARWICK attendees. Mr. Wingens is the<br />
managing director for SECO/WARWICK<br />
GmbH. The partnership with SECO/<br />
WARWICK GmbH was announced this<br />
summer.<br />
Thomas Kreuzaler was announced as vice<br />
president for SECO/WARWICK Group's<br />
thermal global products leader in October.<br />
Kreuzaler is responsible for creating and<br />
implementing thermal products technology to<br />
all companies of SECO/WARWICK Group, as<br />
well as for promotion and sales of Thermal<br />
products around the world. Mr. Kreuzaler will<br />
report in accordance to the importance of this<br />
role directly to the president of the SECO/<br />
WARWICK group.<br />
Thomas Kreuzaler is 44 years old and<br />
father of 3 children. After starting with a<br />
vocational training as an industrial mechanic<br />
in coal mining he studied process technology<br />
at the "Georg Agricola" university of applied<br />
sciences in Bochum. His work experience as<br />
graduate engineer compromises<br />
commissioning of process plants in the steel<br />
industry with ThyssenKrupp Anlagentechnik<br />
GmbH, application and project engineer at<br />
Linde Gas AG, project and sales manager at<br />
Ipsen<br />
International<br />
GmbH,<br />
general<br />
manager at<br />
Abar Ipsen<br />
UK Ltd,<br />
engineering<br />
director<br />
central<br />
European<br />
group at<br />
Bodycote<br />
Wärmebehandlung<br />
GmbH and sales manager at IHI<br />
furnace and machinery Ltd.<br />
He has got wide knowledge of the heat<br />
treatment processes, equipment and industries<br />
in both the atmosphere and vacuum segment.<br />
He speaks German, English, Dutch,<br />
Portuguese and a little bit of French.<br />
OPENING OF SPRINGS PRODUCTION LINE IN GWALIOR, INDIA,<br />
TOGETHER WITH THE POLISH AMBASSADOR, MR. PIOTR<br />
K£ODKOWSKI.<br />
On September 27th, <strong>2011</strong> Polish Indian<br />
Chamber of Commerce and Railway<br />
Business Forum (RBF) in cooperation with<br />
the Polish Embassy in New Delhi<br />
organized business visit to the plant in<br />
Gwalior, India where SECO/WARWICK<br />
Thermal has delivered furnaces for railway<br />
springs production. The modern line<br />
includes: "walking beam" furnace for<br />
austenizing bars before bending, gas fired<br />
furnace for springs tempering.<br />
"The line for railway springs production<br />
is a great example of the fact, that<br />
cooperation between Polish and Indian<br />
companies in the railway sector can be<br />
very beneficial, what results in many<br />
discussions on future projects in more<br />
substantial scale. (PIIG)<br />
We are expecting then our development<br />
in this sector of industry and new purchase<br />
orders for such furnaces.<br />
Poland • USA • China • India • Germany • Russia<br />
7
4/<strong>2011</strong><br />
HÄRTEREI-KOLLOQUIUM IN WIESBADEN<br />
Every year in the beginning of October the<br />
heat treat colloquium (Härterei-Kolloquium)<br />
in Wiesbaden (near Frankfurt, Germany) is<br />
occurring.<br />
For over sixty years with over 1000<br />
participants it is the largest event of the<br />
central european heat treat society. It is a<br />
professional congress that presents in<br />
numerous lectures scientific findings from<br />
research and development work as well as<br />
practical experience from work concerning<br />
heat treatment. The main topics include<br />
annealing, thermal-mechanical<br />
manufacturing processes, processes during<br />
heat treatment, energy efficiency of heat<br />
treatment and innovations in materials,<br />
manufacturing and process technology. The<br />
conference is affiliated by an exhibition with<br />
numerous consultancy stands. In the past, SW<br />
Group was represented mainly with a small<br />
booth of Elterma. This year for the first time,<br />
the entire SW Group showed its presence. Of<br />
course with special attention to promote our<br />
new presence of S/W GmbH in Stuttgart,<br />
Germany.<br />
S/W GmbH covering the<br />
Central Europe Region.<br />
The main task of the newly<br />
formed S/W GmbH out of<br />
Stuttgart, Germany is to<br />
promote sales and services of<br />
the SW Group products in<br />
Germany, Switzerland,<br />
Austria, Netherlands and<br />
Slovenia. With approximately<br />
700 in house heat treats and<br />
250 commercial heat treat<br />
shops generating together 4<br />
billion euros sales, this covers<br />
about 60% of the heat treat<br />
industry in europe. We are<br />
assuming that this region has a peak demand<br />
of 100 ml euro in furnace equipment. This is a<br />
great chance for the entire SW team.<br />
However, the challenges are, that this region<br />
is not growing and capacity is often even<br />
reduced. But old, energy consuming<br />
equipment will be mainly replaced by highly<br />
efficient and automated equipment. On the<br />
other hand we are in the "cave of the lions" as<br />
we say in germany, meaning this is also the<br />
region and the home of most of our<br />
established competitors, and the heat treaters<br />
are spoiled with fast response, good service<br />
and highest technology equipment. But all of<br />
this requires people, which are motivated and<br />
skilled. This is why I have no fear to step in<br />
that cave with the SW team in the back.<br />
Thomas Wingens,<br />
Managing Director,<br />
SECO/WARWICK GmbH<br />
The second Managing Director of<br />
SWGmbH is Karol A. Forycki. Mr. Forycki<br />
joined us on October 1st, <strong>2011</strong>.<br />
Karol is having more than 30 years of<br />
extensive experience in the European,<br />
American and Asian automotive industry and<br />
several years in the heat treatment industry as<br />
well. He holds a Master of Science in<br />
Mechanical Engineering degree from the<br />
University of Technology in Poznan.<br />
He was spending 18 years with Irmscher/<br />
Opel, General Motors and Delphi, playing a<br />
leading role in business development,<br />
engineering, sales, marketing & planning,<br />
growing and developing operations in<br />
Germany, Spain, France, Netherlands,<br />
Poland, Russia, Italy, US, Korea and Japan.<br />
Karol is<br />
recipient of the<br />
General<br />
Motors<br />
President's<br />
Council Honor.<br />
In his<br />
international<br />
role he was<br />
Mr. Forycki with Mr. Daimler<br />
also leading<br />
several Polish automotive suppliers in<br />
exploring German market. Some premium<br />
German cars are still using components he<br />
was developing and selling.<br />
Prior to S/W, he was since 2005 working for<br />
Bodycote as Sales Director Eastern Europe,<br />
being responsible for sales and business<br />
development of the group in this region. Karol<br />
was also involved in business development in<br />
Russia. In addition he was also leading<br />
company's sales activities in Switzerland and<br />
Liechtenstein.<br />
During last few years he was involved in<br />
projects developed in cooperation with SECO/<br />
WARWICK S.A. His positive experience was<br />
forcing him to join the Group and work in the<br />
future actively on company's success.<br />
SECO/WARWICK CORP. AND ITS EMPLOYEES AND FAMILY<br />
MEMBERS HAVE BEEN BUSY IN THE COMMUNITY, TOO.<br />
SECO/WARWICK Corp. was recently<br />
recognized by ECS for participation in energy<br />
curtailment. Since December 2009, SECO/<br />
WARWICK has been an active participant of<br />
the ECS (Energy Curtailment Specialist, Inc.)<br />
PowerPay! demand response program. ECS is<br />
an independent accumulator of energy<br />
demand. SECO/WARWICK CO. is on call to<br />
up to 10 times per year to switch our<br />
electrical power off of our local Meadville, PA<br />
energy grid to our own co-generator system.<br />
Participation in this program not only<br />
helps save the planet, but saves us money.<br />
As a celebration of our participation, we<br />
received a gift 10 trees that will be planted<br />
in one of America's national forests by the<br />
Arbor Day Foundation in our name.<br />
September was busy for SECO/<br />
WARWICK CO. employees away from work,<br />
too. Fifteen SECO/WARWICK CO.<br />
employees and their friends and family<br />
8 Poland • USA • China • India • Germany • Russia
4/<strong>2011</strong><br />
participated the French Creek Conservancy's third annual Creek<br />
Cleanup. The <strong>Seco</strong> team pulled 416kg of trash from the creek that<br />
included shopping carts, a rusty automobile tire rim and several<br />
bags of trash. All together more than 600 volunteers collected<br />
10659 kg of trash during the event.<br />
Also in September, thermal team member Mike Schmidt<br />
participated in a motorcycle ride fundraiser for the 9/11 memorial<br />
in Shanksville, Pa. Shanksville is about three hours southeast of<br />
Meadville. Schmidt was part of a procession of about 200<br />
motorcycle riders that helped raise $250,000 to build a memorial<br />
at the site of the crash of United Flight 93 in rural Pennsylvania.<br />
Dominick DiRenzo,<br />
Marketing SWC<br />
THE LAST EIGHT MONTHS HAVE SEEN THE ADDITION OF<br />
SEVERAL NEW FACES AT SECO/WARWICK CO.<br />
Highlighting<br />
the recent<br />
additions was<br />
the hiring of<br />
Bill Euliano as<br />
operations<br />
manager and<br />
new sales<br />
engineers on<br />
the vacuum and thermal teams. Mr. Euliano<br />
brings more than 30 years manufacturing<br />
experience to SECO/WARWICK Corp. He will<br />
report to the president and is responsible for<br />
the company's day-to-day operating<br />
activities. Mr. Euliano will oversee the use of<br />
facilities and personnel, as well as<br />
conformance to schedules and budgets. Mr.<br />
Euliano has a bachelor's degree in<br />
mechanical engineering from Gannon<br />
University, Erie, PA. He also completed<br />
graduate degree courses for an MBA from<br />
Gannon University, and he has an associate<br />
degree in elementary education from Butler<br />
County Community College. He has worked<br />
in the automotive, fabrication, LED lighting,<br />
and heavy truck industries. Mr. Euliano most<br />
recently worked for a company that designed<br />
and built furnaces for the glass industry.<br />
Katanya Jaworek was added to S/W's Thermal<br />
Team sales staff as a sales application<br />
engineer during<br />
the summer. Ms.<br />
Jaworek brings<br />
an extensive<br />
science and<br />
business<br />
background to<br />
the <strong>Seco</strong>/<br />
<strong>Warwick</strong> staff.<br />
Among Ms. Jaworek's responsibilities will be<br />
presenting and negotiating custom engineered<br />
furnace proposals with customers and<br />
developing project concepts and project<br />
proposals to solve customer needs. Ms.<br />
Jaworek graduated from Gannon University<br />
in Erie, Pa. in 1999 with a bachelor of science<br />
in biology and earned a master of science in<br />
forensic science with a concentration in<br />
advanced investigation from the University of<br />
New Haven (Conn.) in 2003. Ms. Jaworek<br />
most recently spent four years as a sales<br />
engineer at an Erie-based manufacturing<br />
company that also provided heat treating<br />
services. She also worked as a chemist for<br />
three years prior to attending graduate school<br />
and was a traffic/accident investigator.<br />
Bill St. Thomas was also added to <strong>Seco</strong>/<br />
<strong>Warwick</strong>'s Vacuum Team sales staff as a<br />
regional sales manager during the summer.<br />
Mr. St. Thomas brings more than 35 years of<br />
heat treating furnace sales experience to<br />
SECO/WARWICK<br />
and has extensive<br />
knowledge in the<br />
vacuum furnace,<br />
aluminum heat<br />
treating and<br />
thermal<br />
processing<br />
markets. Mr. St.<br />
Thomas is a<br />
longtime ASM and<br />
Heat Treating<br />
Society member<br />
and has published<br />
several articles and presented many technical<br />
papers on a variety of heat treating<br />
applications.<br />
Other<br />
administrative<br />
moves<br />
included the<br />
addition of<br />
Tim Burrows<br />
to lead the<br />
purchasing<br />
department.<br />
Burrows was in the purchasing departments of<br />
GE Motors/GE Locomotive; Siemens EC<br />
Relays; Burnham Boilers and several smaller<br />
companies.<br />
Tom Hart senior buyer and Susan Lambert,<br />
buyer were added in the purchasing<br />
department.<br />
Other additions include, Michelle Stierheim,<br />
short cycle/sales, administrative assistant;<br />
Allison Moser, short cycle, technical customer<br />
service specialist; Adam Wielebob, thermal<br />
team, project design engineer; Todd Keep,<br />
field service engineer, Dominick DiRienzo,<br />
marketing communications coordinator; Mark<br />
Ridgeway, shipping; Michael Forbes,<br />
electrical shop; Michael Smith, aluminum<br />
team, mechanical and project engineer;<br />
Charles Cassano, aluminum team, sales<br />
application engineer; Bob Kerner, electrical<br />
team, electrical controls and service designer.<br />
Dominick DiRenzo,<br />
Marketing SWC<br />
Poland • USA • China • India • Germany • Russia<br />
9
THE XIVTH SEMINAR<br />
"MODERN TRENDS IN HEAT TREATMENT"<br />
ORGANIZED BY SECO/WARWICK FINISHED WITH FULL<br />
SUCCESS!<br />
The XIVth SECO/WARWICK Group Seminar<br />
took place on the 29-30 Sept. <strong>2011</strong>. The<br />
seminar was held under the name of "Modern<br />
Trends in Heat Treatment". 100 guests were<br />
hosted in Bukowy Dworek Hotel, a place<br />
situated in quiet surrounding of picturesque<br />
£agów Lubuski.<br />
Mr. Jaros³aw Talerzak, the President of SECO/<br />
WARWICK ThermAL has opened the seminar.<br />
The merits of the seminar were assured by<br />
prof. Piotr Kula from £ódŸ Institute of<br />
Technology, dr Ryszard Gorockiewicz from<br />
Zielona Góra University, prof. Leszek<br />
Ma³dziñski from Poznañ Institute of<br />
Technology and Mr. Józef Olejnik from SECO/<br />
WARWICK S.A.- our technical tutor.<br />
Anna Bartel and Paulina Grygorcewicz<br />
greeted the guests in the hotel reception desk<br />
and supervised the whole venture.<br />
According<br />
to the<br />
opinions of<br />
seminar<br />
participants<br />
and the<br />
guests, this<br />
was one of<br />
the best<br />
seminars<br />
ever<br />
organized.<br />
The topics<br />
discussed were perceived as truly interesting,<br />
technical and specific. Main topics were:<br />
1. "Receiving Nanocrystal Structures in steel<br />
after heat treatment processes."<br />
2. "PreNit LPC® as future alternative for steel<br />
carburizing".<br />
3. "New materials and technologies of heat<br />
treatment and TBC coatings technology of gas<br />
turbines elements in motor aerospace".<br />
4. "New applications of nitriding and<br />
carbonitriding using ZeroFlow® method".<br />
5. "Heat treatment furnaces for forging<br />
industry".<br />
6. "Quenching fluids in heat treatment of<br />
gear wheels".<br />
7. "New intelligent programs and solutions<br />
for <strong>Seco</strong>/<strong>Warwick</strong> products".<br />
8. "LPN - new option for universal vacuum<br />
furnaces".<br />
9. "Gas supplying systems for Low Pressure<br />
Carburizing Processes".<br />
10. "Gas Analysis in Heat Treating".<br />
11. "Experiences of FLSmidth-MAAG Gear<br />
company in heat and thermo-chemical<br />
treatment of large-size gear wheels".<br />
12. "Economical, ecological and quality<br />
experiences in using a New Rotary Hearth<br />
furnace at Pratt&Whitney Kalisz".<br />
13. "Selected aspects of numerical analysis<br />
used in heat treatment equipment designing<br />
process".<br />
14. "Gases in heat treatment, nitriding<br />
atmospheres-power supply systems and<br />
safety".<br />
15. "The latest SECO/WARWICK furnaces for<br />
aerospace, energy and nuclear industry".<br />
On the first evening the party was organized<br />
during which everyone could feel themselves<br />
as the participants of Grand Prix motor racing.<br />
Virtual racing simulators, Wii games and<br />
professional dancers were on hand.<br />
Jean Bos was a special guest - the chef of<br />
molecular cuisine has a show during the<br />
party. It was incredible experience, everyone<br />
could try carrot caviar, Martini ice-cream or<br />
"boiled" basil in liquid nitrogen.<br />
During the seminar our participants were<br />
asked to answer some questions of our survey.<br />
There are exemplary outcomes of the survey:<br />
- The overall estimation of the seminar<br />
reached high 84%.<br />
- According to the questionnaire the most<br />
accurate source of information about SECO/<br />
WARWICK Group is direct contact with the<br />
client and the operational activity of our sales<br />
managers, the figures are 60%, subsequent is<br />
via internet 32%.<br />
Among the best lectures we could mention the<br />
lecture held by prof. Kula - due to excellent<br />
essence of the lecture in its knowledge and<br />
the means of presenting the information. The<br />
lecture by Adam Adamek was also highly<br />
valued because of good communication.<br />
Congratulations!<br />
There were great prizes for those who filled<br />
the survey - Boule games were given.<br />
After two exhausting days of acquiring<br />
knowledge and having great fun, we had to<br />
say goodbye to our guests who promised to<br />
visit us next year. And next year we are<br />
awaiting jubilee XVth seminar. We are yet<br />
now planning that splendid event. We hope to<br />
guest next years's participants on incredible<br />
and unforgettable meeting.<br />
Anna Bartel,<br />
Marketing SWThermAl<br />
Edited by: Anna Czerniawska<br />
All remarks and suggestions are very welcome, please send them to: a.czerniawska@secowarwick.com.pl