PDF, 1.2 MB - Pfleiderer AG

management report segment report pfleiderer ag 37
Procurement
Pfleiderer Infrastructure Technology’s procurement strategy is based on the bundling of its
raw material requirements in order to gain economies of size, even though plants are present
on international markets. Where possible, medium and long-term agreements have been made
with suppliers to ensure supply chains for production, and to cut back on unnecessary inventories,
thus releasing more cash into the business.
As far as series production of sleepers is concerned, ordering has been systemized. This
ensures that customers can be supplied as needed while inventories are held for only a few
days. Procurement of raw materials for the production of cement has been entirely outsourced
to the suppliers themselves, with the result that Pfleiderer now holds inventories of less than
one working day.
Raw materials needed for all products in the Infrastructure Technology Business Center
are secure apart from steel band for the production steel masts. Since mid-2002, a restrictive
price and quantity policy has been in operation in the steel market, resulting in higher prices
and longer delivery times. However, this has not resulted in delivery bottlenecks for Pfleiderer,
thanks to medium-term supply agreements. A similar development can be observed for sheet
steel and pre-tensioning steel wire. Here merging international groups has led to a sustained
price policy.
As far as concrete products such as sleepers and spun concrete masts are concerned,
cement prices have fallen over the medium term in Germany due to the crisis in the construction
industry.
insulation technology
In keeping with Pfleiderer’s new corporate strategy, its Insulation Technology operations were
sold to the Spanish building materials producer Uralita S.A., Madrid with effect from November
30, 2002. The Spanish company took over all Pfleiderer Insulation Technology plants and operations,
including all employees and the new production site under construction in Serpuchov,
near Moscow. Part of the deal with Uralita S.A. included the sale of the Pfleiderer affiliate
Mehr+Held GmbH, a development and construction company specialized in the construction
of production plants. Operations of the former Pfleiderer Insulation Technology are now continuing
under URSA Deutschland GmbH.
Pfleiderer AG reported sales of 197.8 million euros from its Insulation Technology operations
in fiscal 2001, with earnings before interest and taxes (EBIT) coming to 17.6 million euros.
In the European market, Pfleiderer produced around 11 million m3 of URSA ® brand glass-fiber
insulation material in seven sites at Delitzsch, Wesel, Desselgem (Belgium), Dabrowa Gornicza
(Poland), Novo Mesto (Slovenia), Salgotarjan (Hungary) and Tschudowo (Russian Federation)
and employed 1,474 people.