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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

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