Global experts for a global business

 

HAHN Automation, headquartered in Rheinböllen, Germany,  is an engineering company specialized in developing solutions for the automation of production processes. Although the company was established less than 25 years ago, HAHN Automation has become a global name in the innovative automation industry, with production sites in Tukey, the USA, and China, among other locations. We recently spoke with Michael Schneider, the Chief Financial Officer at HAHN Automation, to find out more about how the company satisfies customer demands, how the business changes in established versus emerging markets, and what considerations are made before entering a new market.

GSC: HAHN Automation prides itself on its ability to connect with the customers to provide quality automation solutions. With a physical presence in multiple countries and activities that span the globe, how does the company stay connected to the customers and keep up with their changing demands?

Michael Schneider: HAHN Automation provides automation solutions to the customers. This includes a high amount of consultation with the customers in all matters of production such as organization, optimization, and realization. Thus, we are always in close contact with the technical department of the customers in Germany, but also in the different countries where complex production processes are demanded. In the headquarters in Germany we have established global experts for each country. These experts are responsible for the know-how transfer and the permanently advise our teams on-site. Our target is always to have as much local support as required, but always with strong support from the engineers in the headquarters.

 

GSC: How does the nature of business conducted by HAHN Automation differ between the established markets (such as the United States or Germany) and the emerging markets (such as Turkey)?

Michael Schneider: When considering the different markets, there are significant differences in how we cooperate with customers. This is, amongst others, an outcome of the experience of our customers with automation solutions. For example, if we have a German customer from the automotive industry, they are typically very experienced with the automation of production. Whereas a customer in an emerging market – such as Turkey – may need more support in answering questions as to what automation of their production means. This is what we support with our global experts concept.

 

GSC: As the Chief Financial Officer at HAHN Automation, do you have a special strategy when it comes to inspiring sustainable growth? How do you weigh the chance of success against financial risk when considering entering new markets?

Michael Schneider: Of course the financial risk in emerging markets is higher when compared to established markets. On the one hand, we try to face this risk with a clear strategy – including a financial business plan as guideline – for operating the businesses. On the other hand, we have a strong focus on risk management, including permanent risk monitoring which is provided by our risk manager in cooperation with the CFO and the local management.

 

GSC: When it comes to company expansion, how do you secure new funding when entering into new markets? Do you have any advice for other firms looking to acquire more capital for growth purposes?

Michael Schneider: This is a question that  can be answered in general, as the financing of expansion and new foreign markets depends on the financing environment on site. Usually a start-up in emerging markets such as Turkey has to be financed over the credit lines of the headquarters. Once good credit history has been established, local financing will be possible. You should never underestimate the financial  demand for establishing a business in new markets.

 

GSC: HAHN Automation used the crisis years resulting from the global recession to its advantage – diversifying its product range and expanding the company through various acquisitions in 2008 and 2009. As the economy picks up, the demand for automation systems is ever-increasing. How does the company intend to satisfy this demand in the years to come?

Michael Schneider: Demand will increase particularly in emerging markets such as Turkey and China rather than in established markets such as Germany or the United States, where it will become more and more difficult to find experienced employees for the management of growth. We try to meet this demand by being on-site in the core markets, not just considering a market as a sales market, but also as an employment market.

 

GSC: The RAG Foundation became the majority shareholder of HAHN Automation GmbH after acquiring 51% of the shares in late September of 2014. How will this change in control affect the way business is conducted and the future plans of the company?

Michael Schneider: HAHN Automation is very proud to have such a strong partner in the RAG Foundation on its side. HAHN Automation is very strong in technical engineering, whereas the RAG Foundation provides significant experience in strategic business management. The management teams of HAHN Automation and RAG Foundation are in close cooperation and discussions in order to develop the business of HAHN Automation.

 

GSC: Thank you for this interview, Mr. Schneider.

Further information: HAHN Automation