www.kendrion.com | volume 8 | 2016 |
MY
FAVOURITE
SOLENOID
VALVE
PC
‘I have worked at Kendrion for 33 years
and started out as an operator in
pressure switches. Over the years I
worked my way up to line leader. After
a few years of doing that someone saw
greater things for me. I was promoted
to Supervisor over pressure switches.
Kendrion’s strategy in three simple words
Simplify, Focus, Grow
I enjoy meeting people and developing
their skills and I certainly always enjoy
a challenge. So when I was chosen
to go to the Spill Valve, I looked
forward to it. In 2010, General Motors
started working on a brand new truck
engine for a new truck platform that
was planned to launch in 2014. This
engine includes Gas Direct Injection
(GDI), cylinder deactivation and
variable transmission to realise a 35%
improvement in fuel economy. Our Spill
Sometimes it takes a fresh pair of eyes
to put things into a new perspective.
With the press and analysts’ meeting of
3 May as the deadline, CEO Joep van
Beurden and CFO Frank Sonnemans
subjected the Kendrion organisation to a
detailed examination of all opportunities
and challenges. The result is a new
strategic plan, highlighting three major
priorities: simplify, focus, grow.
Valve is part of the GDI system. We
supply the spill valve to the fuel pump
manufacturer. The pump pressurises
the gasoline into the fuel injectors.
As the engine accelerates or goes
‘Our first priority is to
make things simpler
than they are now’
uphill, more gas and more pressure
is needed, but as soon as the load
reduces, the excess pressure must be
Focus
The strategic plan is very clear about Kendrion’s financial objectives: for the next
3 years we expect 5% organic growth per year on average and we commit to 10%
EBITA (operating profit) as from the end of 2018. Frank Sonnemans: “These are not
results that we are going to achieve overnight. It will take a few years to enable us
to present these figures. We will simply need that time to implement changes and
improve our performance. Our second priority Focus is all about pinpointing our
efforts and investments to strengthen our position and about the choices we make.
Focus also means that our business objectives will not be rolled out to all business
units and locations in the same way. For very simple reasons: in some of our markets
we have a 60-70% market share making it difficult to grow. In others though, there
is huge potential, which also means that we will have to invest. Focusing is therefore
based on the market potential, but also on the product pipeline, our customer base,
and our assessment of the market opportunities for each of our locations.”
quickly reduced and the excess gas
that was pushed needs to be pulled
from the fuel line and returned to the
main gasoline supply. This is what
our electromagnetically actuated flow
control valve does in the GDI system.
Production launched in late 2013 and
the programme will run through 2023.
In 2015 many improvements were
realised so that the line now runs
Grow
Joep van Beurden: “Organic growth and sustainable profitability are the results
of all our efforts to simplify and focus. We remain committed to our decentralised
approach, and will vary our Group targets per business unit. We will further
strengthen the allocation of resources and investment based on the opportunities
and the relevant trends in each of our business units. We will continue to do our
investment in close cooperation with our customers, so that our success will be our
customers’ success and vice versa. As Kendrion we are extremely lucky to have the
customer relationships to be able to do that!”
steadily and more profitably.
I am proud to be the leader of the
team that has solved all problems
and a contributor to the improvements
and the success of the line.’
Judy Self,
Production Supervisor Spill Valve,
Kendrion Shelby USA
Simplify
The need for a review of the company’s strategic perspective was initiated by Joep’s
first impression of the way Kendrion runs its operations: “I saw a company with huge
potential, but I was also a bit concerned about the way we go about running our
business. We seemed to be making life quite complex for ourselves. For example
the company had four management layers: the Executive Board, the Division CEO’s,
the Business Unit Managers and the location managers. For a company doing
450 million Euros, this is too much in my view. And it’s not just the organisation, the
complexity is everywhere: in the number of product families, the number of business
units the number of meetings we have etc.. The question should always be: what
does this bring us? Does this add value? I understand
only too well that this is my role at this stage: the new
‘Growth and
man asking the ‘stupid’ questions, bringing in the fresh
profitability are
pair of eyes and implementing necessary changes.
The first of our priorities in the time to come is therefore
the results of
making things simpler than they are now. We have
simplification
made first steps by abandoning the Division structure,
and focus’
installing the Management Team and reducing the
number of business units to five.”
Joep van Beurden and Frank Sonnemans
SAY WHAT YOU THINK!
In this Magnetised
3
The Kendrion
Management
Team
5
Best ramp-up
ever!
6
8
Kendrion Aerzen Taking
supplies new
Responsibility
spring-applied
brake
We would like to know what you
think about Kendrion’s newsletter
Magnetised. That is why in
September we will distribute a
small survey around the company.
Could you please fill it in and return
it! If you have a Kendrion email
address, you will receive the
survey in your mailbox. Your
answers, either on paper or in the
mail, help us improve Magnetised
further.
1
The Kendrion
Leadership Team
TEAM
Next to the Management Team, Kendrion has installed the so-called Leadership
Team. Members are the Management Team, key financial staff and the Managing
Directors of the larger operational companies. Every two weeks the approximately
KGS
Changes in Kendrion’s organisation
Simplifying the way
we do business
25 Leadership Team members meet in a telephone conference and discuss
highlights and lowlights, day-to-day operations, issues and actions. Joep van
Beurden: “Most important though is that we all hear about each other’s business.
It is a great tool for mutual communication, for escalating and exploring ideas,
and for taking joint action if we see opportunities for the Kendrion Group.”
In order to simplify the way the company is organised, reduce
the number of internal meetings and speed up decision making
Kendrion’s Executive Board has carefully reviewed the topstructure.
5th ‘Ilmenauer
Magnettag’
great success
EVENT
As a result the Board has decided to abandon the division structure and have the five
business units - Industrial Magnetic Systems, Industrial Control Systems, Industrial Drive
Systems, Passenger Cars and Commercial Vehicles - report directly to the Executive
Board. The role of central marketing has also been abandoned because marketing is best
undertaken by the business units. Central marketer Janine Kostermann has left Kendrion.
And for coordination of Kendrion’s substantial efforts in Asia, the Board has created the
position of President of Kendrion Asia, reporting to the Executive Board.
Automotive and Industrial
In Automotive, Bernd Gundelsweiler has taken up the responsibility for Passenger Cars
(formerly PCS and ACS), taking over from Markus Kieninger, who has left the company.
Erik Miersch will stay responsible for Commercial Vehicles (formerly CVS and HDS).
In Industrial, Marcel Zegger has left Kendrion, while Jeroen Hemmen has been appointed
Assistant to the Executive Board. Jeroen will help Joep and Frank implement a number of
initiatives aimed at streamlining the way Kendrion does its business on a global basis.
Ralf Wieland has been appointed Business Unit Manager Industrial Drive Systems,
taking over from Michael Bernhard, who has left Kendrion to pursue other opportunities.
Kendrion in China
Finally Telly Kuo has been appointed President of Kendrion Asia. He will initially focus on our
operations in China, to help the Executive Board create a comprehensive Kendrion group
plan, with clear commercial goals, a matching organisation and manufacturing plan.
Telly, a national of Taiwan, has extensive experience building and growing businesses in
China, and has worked for Philips for 10 years and for Optoma Inc for eleven years.
As you can read from the above, the simplification of our organisation has resulted in a
number of personnel changes. Michael Bernhard, Markus Kieninger, Janine Kostermann
and Marcel Zegger have left Kendrion to pursue other opportunities. These departures
are the direct result of the restructuring and not in any way related to their performance.
Janine, Marcel, Markus and Michael have served Kendrion with passion and energy,
focused on their respective tasks and giving that their complete and undivided attention.
KGS
In Germany Kendrion Mechatronics Center was again one of the
organisers of the so-called Ilmenauer Magnettag (Magnet Day),
which was held for the fifth time. Kendrion and its co-organisers
the Ilmenau University of Technology and Zwick Roell AG could
look back on a very successful event.
Specialists from leading R&D institutions and renowned industrial companies in the
electromagnetic field presented research results and trends and developments in the key
areas of magnetic drive and measurement technologies. The Magnet Day not only offered
interesting contributions on design and simulation of electromagnetic actuators, but also on
the optimisation of production processes, on monitoring and measuring and on a number of
application examples. More than 100 participants from all over the country, mainly from R&D
organisations and companies, working on solenoid and actuator technology, signed up for the
fifth edition of this bi-annual event.
As a side-event Kendrion Mechatronics Center organised a small exhibition of some of its
external research projects and its cutting edge measurement technology device MagHyst ®.
The Ilmenauer Magnet Day has developed into one of the most distinguished conferences on
applied research and development in the field of electromagnetic drive systems. This explains
the wide interest in the event.
Results Q1 2016
Activity levels in Automotive and Industrial picking up
After a weak last quarter of 2015,
impacted by customer destocking,
Kendrion saw a solid first quarter in
2016 with revenues 6% higher as
compared to the fourth quarter of 2015.
Conditions in the main industrial markets remain
challenging. But in comparison with Q4 2015 there
was an increase in activities in all industrial market
segments. Within the Automotive market, Passenger
Cars benefited from the start of the production of the
active damper systems for ThyssenKrupp Bilstein.
Market conditions for the Commercial Vehicles
remained challenging, especially for the bus market in
China and the heavy truck market in North America.
Sustainable profitability
Kendrion CEO Joep van Beurden: “We
continue to expect the global economic
situation in 2016 to resemble the second
half of 2015, but even so remain confident
about our opportunities and business
fundamentals for the medium and long
term. Our priority for the time to come is
to ensure that the revenue growth we
have consistently reported, is better
reflected in our profitability. We have
outlined a series of measures to realise
this objective. Over the next three years
we aspire to sustainably double our
operating profit to 10% of revenues while
maintaining organic growth at the
historical level of on average 5% per annum.”
REVENUE
EBITA
NET PROFIT
1 114.4
1 111.3
1 8.3
1 7.8
1 5.1
million
1 4.7
million
million
million
million
million
Q1 2015
Q1 2016
Q1 2015
Q1 2016
Q1 2015
Q1 2016
Normalised for non-recurring restructuring costs of E 2.7 million (after tax E 2.1 million) in
Q1 2016
2
Closer to the operational business
TEAM
The Kendrion Management Team
This time the TEAM article
in the Magnetised is on
Kendrion’s Management
Team, the company’s main
strategic and operational
decision-making forum.
A relatively new team,
which started its activities
this spring as the successor
to the Executive Committee,
and is chaired by CEO
Joep van Beurden en
CFO Frank Sonnemans.
From left to right: Thomas Fritz, Wijgert Gooijer, Erik Miersch, Maik Goerke, Robert Lewin, Jeroen Hemmen, Joep
van Beurden, Frank Sonnemans, Telly Kuo, Ralf Wieland and Bernd Gundelsweiler.
As part of the new strategic plan, in which we
have moved away from the division structure,
the Executive Board decided to introduce
the Management Team (MT) as the most
important managing body, sharing
responsibility for Kendrion’s overall
performance. Apart from Joep and Frank,
the members of the MT are the five Business
Unit Managers Norman Graf (Industrial
Magnetic Systems), Ralf Wieland (Industrial
Drive Systems), Robert Lewin (Industrial
Control Systems), Bernd Gundelsweiler
(Passenger Cars) and Erik Miersch
(Commercial Vehicles); Telly Kuo (President
of Kendrion Asia), Thomas Fritz (Human
Resources), Jeroen Hemmen (Assistant to
the Executive Board) and Wijgert Gooijer
(General Counsel).
Next step
Joep van Beurden: “For governance purposes and legal reasons Frank
and I continue to form Kendrion’s Executive Board. But the Management
Team structure brings us much closer to the operational business and to
where we actually make our money. The divisions have had their practical
use, especially against the background of our two major acquisitions
Shelby and Kuhnke. But gradually they started to hamper our ability to
take quick decisions and reduced internal transparency and clarity. In that
context you could call saying goodbye to the divisions and introducing the
Management Team a logical next step.”
Weekly meetings
In weekly telephone conferences the MT discusses issues such as the
order book per business unit, cost versus budget, progress on commercial
projects and key R&D projects. On the strategic side the team looks at
capital allocation, portfolio decisions, mergers & acquisitions, ‘Top 50’ hires and
resignations, progress on ‘special topics’ and every other important issue that
comes up.
KGS
PC
Redesign production
hall Villingen
A broken floor in the production area of Kendrion
Villingen, Germany appeared to be a blessing in
disguise. Renovating it enabled a redesign of the
production and an extension of the storage space.
Update Corporate IT
At the moment our Corporate IT department is in the
middle of the IFS upgrade project of Apps9, which
is planned to go live on 1 March 2017. After our IT
staff successfully finished the concept phase, they
are now preparing for the test and training phase. For
this purpose IT implemented an IFS test system with
the new version of Apps9 plus the Kendrion specific
modifications. All information about this is stored in
Kendrion’s IFS SharePoint, which is accessible to all
IFS users. To be optimally synchronised, Corporate
IT appointed an IFS coordinator at all Kendrion sites,
where IFS is in production.
Apart from the IFS activities, the other topics Corporate
IT works on are:
•Renewal of the IT infrastructure to ensure a better
performance and stable system environment;
•Enhancement of IT security based on
recommendations that were identified end of 2015;
•Development of new functions for IT Services like a
service catalogue and a cockpit for its ticket system.
Dust and dirt do not go together well with Kendrion’s clean production
processes. A broken floor, which is a possible source of pollution,
therefore requires mending. “And we seized that opportunity to optimise
the production facilities, to improve logistics, to create more free space
and improve material flow and efficiency,” tells Alexander Merz, Head
of Operations at the Villingen plant. “Last December we moved the
assembly lines to a different location and started with the repairs of
the floor. This was one of the toughest challenges in the daily business
we had ever met. We installed technical provisions to alter the hall into
an electrostatically protected area. We can now also produce new
mechatronic products here and are prepared for the future.”
Final phase
On the basis of a new layout the machines could be put back in a smaller
space. Not only production benefits from the enlarged working area, the
warehouse bordering on the production hall also does. Alexander Merz:
“In the final renovation phase we will move the wall of the storage room
12 meters into the production hall, so we are also gaining space there.
When that is done, we are all ready to start new production.”
The Kendrion ERP team has three new colleagues: Andreas Walter (left)
is a Senior Consultant and his focus is Supply Chain Management.
Andreas is familiar with multiple ERP systems and has worked for IFS
for several years. Merih Beqiri (right) and Pascal Noe (middle) will
take over the user help and support of our ERP system IFS.
Supporting the
Baltic Racing Team
For the sixth year running Kendrion Kuhnke Automotive is a
proud sponsor of the Technical College Stralsund’s Racing
Team. The project is an example of the long-term support of
talented young people, in line with our company philosophy.
At the end of 1999 the Baltic Racing Team started
to take part in the world’s biggest engineering talent
competition Formula Student. Since then every year about
30 students work together in an interdisciplinary team
on the development of a new racing car. Annually the
team competes in global challenges, in which both the
commercial and the technical disciplines are assessed and
rated. In 2015 the team won the prize for ‘Best prepared car’
at the Formula Student Germany in Hockenheim on the basis
of meticulous year-round work on the vehicle. This year the
car will also be shipped to Formula Student Hungary to take
part in the race. Kendrion Kuhnke Automotive wishes the
Baltic Racing Team lots of success in both competitions.
Race between
the seas 2016
The Schleswig-Holstein region of Germany is also called
‘the country between two seas’. Once a year, running teams
from all over Schleswig-Holstein join for a unique relay run
between those two seas. This run takes them over a distance
of 95.5 km between Husum at the shores of the North Sea
and Damp at the Baltic Sea. On Saturday 28 May this ‘Race
between the Seas’ attracted a total of 747 teams. When the
Kendrion Kuhnke team reached the finish line, the timer
stopped at 8:24:08. They reached the 128th position among
the 376 company teams participating. Compared to the
previous year, our team improved its position by almost 45
places. “Great weather and a good spirit all along the track
turned the run into a great team experience,” team leader
Lukas Bremer reported.
KEP module on People
and Engagement
From 13 until 15 April the fifth module of the Kendrion Executive
Programme took place. The 14 participants and the sponsor of
the fifth module, Thomas Fritz (HR Director), met in Rotterdam,
the Netherlands, to discuss all issues around ‘People and
Engagement’. A special surprise for the participants was
the location that was selected for this particular occasion:
The former cruiseship SS Rotterdam, which lies at anchor in
Rotterdam as a museum and hotel boat. The main focal points of
this module were amongst others: leadership and management
talent, individual challenges and change management.
These significant issues were dealt with under the leadership
of Dr. Philip Stiles, lecturer at the University of Cambridge.
The participants (from left to right) on a tour around SS Rotterdam’s engine room:
Dr Sören Rosenbaum, Dr Andreas Röpke, Alfons Mattes, Robert Lewin,
Corey Hurcomb, Andra Boboc, Ronny Splettstösser, the tour guide, Vaclav Dostal,
Dr Uwe Gnauert, Torsten Komischke, Stefanie Gerhardt, Josef Porta,
Sameer Deshmukh, Erik Miersch, Thomas Fritz and Dr Philip Stiles.
02 | 2016
3
ICS
Kendrion’s running
business
On 26 March, twenty Kendrion employees participated in the
13th marathon of Freiburg, Germany. Eight of our employees
ran the half marathon, while twelve succeeded in running the
full marathon of 42 kilometres in a relay race. The atmosphere
during the marathon was great, also due to the glorious weather!
BACK SCHOOL at Kendrion Prostêjov
Back pain is a frequent cause of employee work incapacity.
Only about one-quarter of the cases appear to be due to actual
spinal disorders. The remaining problems are the result of poor
habits at work and in everyday life. Kendrion Prostêjov therefore
decided, in cooperation with the BACK SCHOOL, which
specialises in physical therapy and the prevention of spine
and back pain, to prepare a project focused on the specific
needs of our employees. The programme had three main parts:
a group workshop in which employees were familiarised with
the anatomical minimum and main principles of the functioning
of our body and spine and what causes back problems.
During group exercises in the second part employees learned
practical exercises, and the third part consisted of individual
consultations with each employee directly in the workplace.
Both office workers and production workers, as evidenced by
their positive feedback, received the project with great interest.
Kindergarten
meets
technology
In the summer of 2014, Kendrion Kuhnke engaged in a
sponsorship for the “Pusteblume” (in English: ‘dandelion’)
kindergarten in Malente, Germany. Kendrion wanted to support
education and trigger the fascination of children for technology
and related professions at an early age. This is done by playfully
explaining technical principles and allowing the children to try
them out themselves. A typical example is the demonstration
of a seesaw and showing them why weight is not only related
to size. The subjects are prepared by Till Weiss, trainee in the
field of mechatronics, and Yannick Kreher, trainee in the field
of electronics devices and systems. They are both in their
second year and work with the children directly on site. The
pedagogues of the kindergarten and our trainer Jörn Räther
offer support. For Till and Yannick the project is a lot of fun:
“It is simply great to see how the children get involved and how
interested and curious they are.”
Caring for our workers’ health
Illnesses of the locomotor system belong to the main causes of
inability to work with an ageing staff, especially when they are
occupied with physically demanding activities. Since May 2016
the health circle of Kendrion Kuhnke in Malente, in cooperation
with the company physician Mönnich, offers selected
departments a special care concept called ‘Manufit’.
The aim is to establish changes in the general health
situation and the wellbeing of the participant in the
course of the interventions. Manufit is an osteopathic
strategy for the treatment of problems with the
locomotor system and combines a series of
effective care treatments. This alternative
medical therapy is applied with just the
help of bare hands, and includes for
instance soft ‘turbo grips’ and ‘manuimpulses’ to facilitate auto regulation
and get the body to release tensions.
‘Manufit’ is a fast, soft and low-risk
therapy and applicable for prevention
purposes. There is a lot of interest for the
project. About half of our male and female
staff covered by the pilot project have
accepted the offer and have given very
positive feedback.
4
Temperature measuring to control laser light
Safety first,
also in laser
Laser light is used for a wide variety of
useful applications. In case of malfunction
though, laser light can also be dangerous
and cause damage. Kendrion Kuhnke
Automation offers innovative laser shutter
technology, which applies temperature
measurements to extend product life
expectancy and enhance safety.
Laser - an abbreviation of Light Amplification by Stimulated
Emission of Radiation – is a light source, which generates a
very concentrated coherent bundle of light in one frequency.
The laser beam can be strong enough to cut through 50
centimeters of steel. In different configurations, with different
sorts of lasers and applying different low-, mid- or highenergy media, laser is also used for surgical, military and
process industry purposes and for such diverse tasks as
marking and distance measuring. Risks in using laser are
prevented or controlled with the help of so-called laser
shutters. One of Kendrion’s customers in this field uses
PC
Villingen, Malente and Sibiu
join forces
Another step
forward
A multidisciplinary team from three
Kendrion locations has successfully
worked on realising a new and
innovative valve for the automotive
market. The final stages of design
and development are already
finished. Production will start in
October.
“A new product for us, a great opportunity for our
company and a step forward in terms of technology,”
says Andra Boboc, Managing Director of Kendrion
Automotive Sibiu. “We are very proud to be part of
the multidisciplinary team that has put so much hard
work in this project. The project was acquired and
developed in Villingen (Germany), the process and
the machines were conceived in Malente (Germany)
and it is all going to be produced here in Sibiu,
Romania. A very clear division and allocation of
tasks, in which every partner is adding value.”
An innovative product
The product involved is an electric valve, which
will be mounted on the water pump of the vehicle.
It replaces the classic mechanical thermostat and
plays a functional role in controlling the engine
cooling liquid. This innovative product is meant to
achieve a better management of the engine cooling
liquid and by optimising these parameters, Kendrion
contributes to the reduction of CO2 emissions, as
well as to the production of vehicles in the Euro6
class.”
Optimising production
For the production Andra and her team at Kendrion
Sibiu redesigned and optimised the layout of the
existing production facilities. It now all fits perfectly
and very efficiently in a production space of
approximately 200 square metres. Kendrion Sibiu
will dedicate 12 employees to this project, who will
totally focus on the production of the new valve.
KGS
laser with non-visible light and a high-energy laser beam. In case
of problems the laser light needs to be switched off by absorbing
the laser beam in a so-called absorption chamber. This is done by
actuating a mirror, which reflects the laser beam.
Plug & play
In many applications, just moving the mirror is not enough though. Its
performance can be negatively influenced by pollution. Kendrion has
developed an innovative way to monitor the status of the mirror. By
measuring its temperature, both the degree of pollution and absorption
can be determined. Damage control, safety and product life cycle are
enhanced. Dr.-Ing. Andreas Röpke, Manager R & D Kendrion Kuhnke
Automation: “Instead of only supplying components we now deliver a
full swing plug & play system for our customers to include in their
applications and products. Dedicated actuators with photocell end
position detection, redundant temperature monitoring of the mirror, a
laser beam trap, and heat absorption with additional water cooling,
produced in a cleanroom environment, help our customers move
forward and serve their markets in a state-of-the-art way.”
Global succession planning top management
Developing leadership,
not just leaders
The structured development of top management
talents is one of the biggest challenges Kendrion
has to deal with worldwide.
Kendrion’s aim is to fill in even more management positions with our own
talents. Such an approach offers a number of advantages:
• Increase of employee satisfaction;
• Support in reaching career objectives;
• Transparent system;
• Strategic staff planning;
• Optimisation of risk management;
• Reduction of recruitment costs.
An important additional benefit is that we can offer our potentials an
international development which exceeds the limits of our business units.
In this context Kendrion has developed a comprehensive HR concept,
supported by dedicated software applications. The first step in the global
rollout is the introduction of Top Management succession planning. If locations
want to participate and be part of the concept, they are most welcome to join
in. In the first instance we are talking about the following staff circles:
Kendrion N.V.
CEO / CFO
Business Unit
Business Unit Manager
Location
Potentials and key staff
Managing Director
Directors and selected HIPO’S,
KEP participants etc.
Staff will be registered in the database and matched with job profile
requirements. Personal development plans will be discussed, registered
and followed up with the employees involved. The Succession Planning
Committee comes together on a regular basis to discuss possible actions.
The members of this committee are: the Executive Board, all Business Unit
Managers and HR Group Services.
The HR department looks forward to introducing this project within
Kendrion and sees it as the next step in our global Human Resources
development. ’Going Live’ has been planned for Q4 2016. The employees
and staff levels concerned will be informed extensively in due course.
If you have any questions concerning this project, please contact Thomas
Fritz or Manuela Casper.
PC
Best ramp-up ever!
After two years of preparations and pre-series the
production of the HPV VW Diesel line is ramped up
to serious volumes. ‘The best ramp-up ever,’ says
Head of Operations Alexander Merz.
Certificate for Kendrion
(Villingen) GmbH
Together with five other companies in Baden-Württemberg
the Kendrion location in Villingen, Germany was awarded the
so-called familyNET-Award by the Ministry of Finance and
Economics. Kendrion received this certificate because of its
innovative und sustainable offers for a better work-life balance.
In 2014 the pre-series production of the HPV VW Diesel line started with
200,000 parts, and a scrap rate of 4%. In 2015 for a ramp-up to 1 million parts,
Kendrion’s patented, inline measuring device MagHyst ® was integrated in the
production line in Villingen. “We produced a million pieces of which 5,000
parts failed, resulting in a scrap rate of 0.5%. The pieces that did not pass the
MagHyst ® tests were removed from the production line, disassembled and
brought back into production as single assembly parts.”
ICS
Negotiating successfully
ICS procurement initiated a negotiation training,
which was held in April 2016 and in which all
departments could participate. The course was
to provide especially our young procurement
team with valuable impulses for all those big
and small negotiations of everyday business life,
such as arranging for an earlier delivery date or
conducting difficult price negotiations. Special
emphasis was put on the right wording, which is
often the key to successful negotiations.
In group sessions and individual trainings
different situations between interlocutors were
simulated and tested in order to compare the
results immediately. Participants experienced
real eye-openers: for example how to counteract
excessive customer demands, how to develop
a good chain of arguments and which words
(such as ‘unfortunately’) need to be avoided
by all means. Not to forget the fact that one
can be proud of a successful negotiation. The
participants were also familiarised with the Type
Thinking according to Max Lüscher. This helps
to get the right picture of a discussion partner
within only a short time in order to know exactly
what ‘buttons’ to press.
The negotiation training resulted in immediate
tangible results. For example, already within one
week after the course a successful negotiation
was reported which resulted in economic
advantages for the company that corresponded
to a multiple of the costs incurred by the training.
Opportunities
MagHyst ® measures the magnetic stream in the magnetic component or valve.
In this way the quality of the magnet can be established before the finishing
process. Instead of ditching the product, its constituent parts can be reused.
Loss of material is avoided; costs are reduced. Alexander Merz: “At this
moment we are preparing the production of the HPV VW Evo, with volumes
up to 1.6 million pieces. The performance of the production line, including
MagHyst ®, is good and the outlook very promising. We see lots of other
opportunities for applying MagHyst ® within Kendrion.”
IMS
Sales meeting with
perfect view
From 1 until 3 June the annual international IMS sales meeting
took place. All sales people from Switzerland, Austria, Italy and
Germany came together in Hornberg, in the heart of the Black
Forest, in order to deepen professional and personal contacts. The
‘Schöne Aussicht’ (Grand View) Hotel turned out to be the perfect
setting to share and collect new ideas away from the office and
from day-to-day business.
Sales Managers Volker Buhl and Ralf Vosseler guided the participants
through two exciting meeting days full of discussions. The three focus
topics ‘market development’, ‘technology’ and ‘communication training’
guaranteed a diversified programme. On the first day the market
development team introduced its focus areas and its running and future
projects. Everybody got involved in the lively discussions. What are the
peculiarities of the different markets? Can we transfer focus markets to
each of our international locations? Do we encounter the same market
circumstances in all countries? In the same way the technology part
was followed with great interest and sparked off lots of questions and
discussions. After the work was done, the participants climbed the
‘Langenwaldschanze’ in Schonach: 210 steps led to the top of the ski
jumping tower with a height of 38 meters. From there the group once
again had a magnificent view of the Black Forest.
During the communications training on day 2, the team focused on how
both the communication with the customer and the intra-departmental
exchange of information could be improved during the implementation
of joint projects. In teams the main aspects of ‘project communication’,
‘external communication’ and ‘management communication’ were dealt with.
EVENT
Kendrion sounds
the gong
On 4 May our CEO Joep van Beurden, together
with some of our colleagues from the head office
in Zeist, sounded the gong at the Amsterdam
Stock Exchange (AEX). Every morning the gong
marks the opening of a new stock-trading day.
Kendrion, which is listed on the stock exchange in
Amsterdam, was invited by the AEX organisation
on the occasion of the publication on the 3rd
May of the Q1 2016 results and the presentation
of the strategic update for the next three years.
Joep impressed with an energetic and powerful
backhand swing, with which he managed to deafen
everybody close to the gong for a few minutes!
Girls´Day@Kendrion
At several locations in Germany,
Kendrion again organised the socalled Girls´ Day. 17 girls between
13 and 15 years old had registered
at the Kendrion locations in
Engelswies, Malente and Markdorf.
The girls were introduced to the
development & construction
department, the production and prototyping facilities and the
training workshop. With Girls’ Day, Kendrion aims at bringing
technical professions closer to girls. Career opportunities that
were brought to the attention of the girls were e.g.: electronics
technician for devices and systems, mechatronics technician,
industrial mechanic and qualified engineer. All participating girls
were excited and left Kendrion with a big smile on their faces.
50 years with Binder/
Kendrion
Never
a dull
moment
Karl-Heinz Kreische was 15 years old when he
joined Kendrion as an apprentice. He recently left
the company at 65. Time for a well-deserved rest
after 50 years of loyalty to Binder and Kendrion.
Straight after school Karl-Heinz apprenticed with Kendrion for 3½
years to become a mechanic. His first job was with the prototypebuilding department. Over the 50 years that he worked for Binder
and its successor Kendrion, Karl-Heinz has seen most nooks and
crannies of the company. He finished his career in the Quality
Management department, in Villingen of course where he started half
a century ago: “Yes, it’s quite exceptional these days to stay with a
company for 50 years. But there has not been one day at which I went
to work reluctantly. There were always new challenges and more than
enough of change to keep me interested and motivated.”
Up to date
“I am starting a new life and to be honest, I don’t really know yet what
it will bring. The only thing one wishes for at this age is good health
really. That’s life’s most important asset. And with photography, image
processing and traveling as my main hobbies, I am sure that also
after retirement there will never be a dull moment. In the meantime
I will continue to keep up to date on developments at Kendrion,
through contacts with my former colleagues and because my wife
also works at Kendrion and still has a few years to go.”
Thank you
Kendrion Industrial Drive Systems would like to thank Karl-Heinz
Kreische for 50 years and Fritz Wälde, who also retired in April, for
47 years of loyalty and continuous engagement to the company.
We wish our colleagues all the best for their retirement.
02 | 2016
5
IDS
Kendrion Aerzen supplies
new spring-applied brake
The request from a well-known, globally active producer of
conveyor technology sparked off the development and market
launch of a fundamentally new concept in spring-applied
brakes for conveyor belts at Kendrion Aerzen, Germany.
From left to right: Heinrich
Hilkemeier (team leader assembly),
Heidi Spickermann (assembly),
Gerhard Bade (production leader),
Justyna Krakowski (assembly),
Dominik Volz (construction).
PC
For a powered conveyor roller with an
internal motor the producer was looking
for a brake with an emergency stop
function with special specifications.
In case of a power cut the braking
performance of the conveyor roller
should bring capacity loads of up 100
kilos to a standstill within the shortest
possible stopping distance. Against
this background the customer required
high braking energies at equally high
braking torques. “The special challenge
in meeting the customer’s demands was
the limited installation space,” says Dominik
Volz, who acted as the project leader
in Aerzen. The outside diameter for the
brake was less than 50 mm. The idea to
transfer the torque by connecting a carrier
to the outside diameter of the brake led to
the solution. This resulted in a new, high
performance spring-applied brake, which
meets the requested demands. Following
the successful development of the brake
the customer and Kendrion Aerzen signed
a supply contract for a number of years.
More than a brake
An important aspect of the relationship with this customer is that
IDS could offer more than just the brake. Apart from the brake, IDS
now also supplies a carrier for the connection with the conveyor
roller, and the electronic control module for the brake. A major part
of the electronic module is an energy saving module, developed by
Kendrion Villingen. The energy consumption of the brake in a poweron situation is reduced by 50%. As this is the regular position most
of the time, the customer can realise substantial energy savings. In
acquiring this project, Managing Director Gregor Langer of Kendrion
Aerzen recognises the IDS success story as a whole: “Without the
successful cooperation between Villingen and Aerzen this project
would not have been acquired. The strengths of both locations have
been combined in the best possible way. After the successful rampup we can say that our customer can dispose of an innovative and
tailor-made solution, creating a competitive edge. Our technology has
convinced the customer, who is prepared to pay more than originally
budgeted.”
Since 1993 Germany-based compamedia has awarded TOP 100-awards for
special innovation power and above-average innovation results to medium-sized
companies. The application process, which started about a year ago, comprises
the assessment of business figures and the innovation potential. 4,000 companies
wanted to participate. Only 284 of the competitors made it to the finals. In this phase
the innovation competences of the nominees were rated according to 100 parameters
in the categories innovation-oriented Top-Management, innovative processes and
organisation, innovation results, climate and marketing. Kendrion was especially
nominated for the implementation and establishment of its innovation process.
Network
The winners were invited to the award ceremony
at the ‘German small and medium-sized
companies summit’ on 24 June in Essen. Torsten
Komischke (General Manager), Uwe Dettmann
(Manager Sound Design) and Christoph Trettin
(Manager Product Development) represented
Kendrion Kuhnke Automotive at the venue, at
which economy experts and representatives
from the media and political sectors presented
success strategies and discussed present-day
and future requirements. Among the speakers
was the former President Christian Wulff, who
honoured the innovation power of the selected
companies. The event ended in the Colosseum
Theater, where the award-winners could meet
each other and extend their business networks.
6
Kendrion Eibiswald is the production
location for Kendrion’s biggest order
ever. Initiated by the customer Bilstein
external auditing agency Intertek recently
assessed Kendrion’s practices according
to the scope of the Workplace Conditions
Assessment. Eibiswald met all the
required performance criteria, passed
this very first external social audit and
as a result received the so-called
Achievement Award, covering the
following areas: labour, wages and
hours, health and safety, management
system and environment.
Strategy
The new brake perfectly fits the IDS strategic concept. IDS is looking
for future growth in the spring applied brake market. With this customerspecific solution a product was conceived, which is without comparison
technology wise. A spring-applied brake, which generates such high
torques within the given installation space cannot be found elsewhere.
German TOP 100-award for
Kendrion’s innovation process
From left to right: Christoph Trettin, Torsten Komischke, Ranga Yogeshwar and Uwe Dettmann
KD Bush / compamedia
Kendrion
Eibiswald receives
Achievement
Award
25 years Kendrion
in Mexico
In March this year Kendrion Toluca, Mexico took part
in the most important trade fair for the Mexican bus
and truck market, ‘Expo Foro 2016’. And again it was
a big success, says Managing Director Alexander
Glaser: “We have big European customers such
as Mercedes and Volvo and we serve many
local customers and production companies from
neighboring USA. Expo Foro is where all their
representatives come together to get an idea of
trends and developments and to build and extend
their network. Therefore we cannot afford to miss out
on this trade fair and have participated for at least
20 years.”
Anniversary
At the fair Alexander and his team also took the
opportunity to celebrate the 25th anniversary of
Kendrion in Mexico: “We hired a nice venue at the
fair, organised a cocktail party and invited 80 of
our most important customers. With many of our
customers we maintain a long-term relationship. That
is why it almost felt like a family get-together. A great
way to get even closer to our customers, who very
much appreciated the invitation and the event.”
Kendrion’s production location is at Toluca, which
is approximately 50 kilometers away from Mexico
City. The Mexican automotive market, especially the
passenger car segment, is developing rapidly, with
a pivotal role for Mexico City. Kendrion is located at
a convenient distance from this center of activity.
PC
IMS
This spring Kendrion could officially
announce the biggest order in the history
of the company: until 2030 Kendrion
Eibiswald will produce many millions of
high-tech proportional damper valves for
the automotive sector. No need to say that
this has also drawn the attention of the local
press.
A new and recent long-term order of over
EUR 33 million for Kendrion is a further
impulse for the high tech region in which
many small innovative companies find
a home, the Weststeiermark newspaper
reports. The next five years Kendrion
will develop and produce park locks for
a German carmaker with the function of
blocking and releasing transmissions.
The newspaper introduces Kendrion as a
global market leader in electromagnetic
IMS opens new production
hall in Engelswies
On 17 June 2016, only 11 months after the beginning of the building
activities in July 2015, Industrial Magnetic Systems opened its newly built
production hall and administration building in Engelswies, Germany.
With its length of 60 meters and its width of 28 meters the hall, which had
not yet been filled with machines and equipment, was the perfect location
for a high-spirited party. In his speech Operations Manager Alfons Mattes,
who
managed the building activities from the
start, expressed his enthusiasm about
the construction progress and already
envisioned the next step, the finishing of
the Social Building in 2017.
Commercial Manager Maik Goerke
took the opportunity to look back on
the 64-year history of the location.
With its core technology on holding
magnets and rotary solenoids the
magnet company, started in 1952
by Fred Hahn, has developed into
an important pillar of the Kendrion
Group of companies. By realising the new premises
of about 2,000 square metres, the holding shows the importance of the
Engelswies operation. CFO Frank Sonnemans confirmed this and praised
the 130 employees: “You can be really proud of yourselves!”
After the official part of the celebrations the employees from Engelswies
offered their colleagues from Donaueschingen and external guests
the possibility to have a look around the new building and the existing
production.
KGS
EVENT
Adding value for shareholders
and other stakeholders
After 12 years as a member of Kendrion’s Supervisory Board, this spring Maja Sanders left the
company. The Board has since then been extended with Marion Mestrom, who replaces Mrs Sanders
as the Chairman of the Remuneration Committee. Marion sees herself in the first place as a member
of the Supervisory Board who, next to asking the right questions, also will be a sounding board to the
Management Team. Meet Marion Mestrom.
Responsible
In her daily work Marion Mestrom is responsible for global Human Resources of the German listed
company Brenntag AG, global market leader in chemical distribution, employing over 14,000 people,
with locations in over 70 countries and an annual turnover of EUR 10.5 billion. Previously she headed
global Human Resources for Siegwerk
Druckfarben Group also located in Germany.
Before joining Siegwerk, she held several
global Human Resources positions within
Royal Philips, and was also based in Asia for
a couple of years.
Proud people
“During my introduction at Kendrion I did
not only see a few factories but also met a
number of people. I saw people who really
take pride in what they are doing and are
proud of the company. I saw a company with
a lot of potential. It’s great to be a member
of the Supervisory Board and thus be part
of the further development of the company
and to be able to contribute to creating
value for Kendrion’s shareholders and other
stakeholders.”
IDS
IMS
components and systems and is proud of
the development and production location
in Eibiswald. Kendrion Eibiswald totally
focuses on the automotive industry and has
BMW, Daimler, Volkswagen, Audi, Maserati,
Ferrari and Fiat among its customers.
Lab meeting 2016 in
Donaueschingen
On 2 June laboratory employees of all
Kendrion business units in Donaueschingen,
Germany came together for a meeting. Over
an early lunch all 13 colleagues from PC,
IDS, IMS, CV, ICS and the Mechatronics
Center introduced themselves in first talks.
In informative and focused speeches the
business units gave an overview of their
facilities and the related fields of application.
CV e.g. showed interesting examples of
tests of magnet assemblies using sensors,
while IDS demonstrated energy saving
modules for the application of brakes. ICS
introduced prototypes for life cycle tests
of locking systems and the verification of
new products, concerning switching times,
magnetic forces, end position identification
and sound levels. Following this the local
colleagues gave the participants interesting
insights into the substantial modern
testing facilities during a tour around the
laboratories. An overview of the possibilities
of the Mechatronics Center in Ilmenau
Marion Mestrom joins Supervisory Board
“When familiarising myself with Kendrion before actually joining the Supervisory Board, I was
immediately enchanted by its innovative drive, its niche market leadership and B2B orientation,”
says Marion Mestrom. “In my global roles within Philips I have also been involved in businesses
focussing on industrial markets, so walking through some factories felt familiar in a way. And although
electromagnetism is new to me, I am triggered by the company’s core activities, value drivers,
opportunities and challenges.”
Kendrion Eibiswald
in the fast lane
concluded the informative afternoon.
The end of the meeting was marked by
a shared dinner at the Donaueschingen
restaurant ‘Ochsen’, where many
conversations took place in a relaxed
atmosphere. Everybody agreed on keeping
in close contact and sharing mutual
information, in order to benefit from the
collective knowhow of all employees and to
continue supporting each other on a day-today basis.
Kendrion at the SPS Italia
For the third time running our IDS and IMS teams exhibited
at the SPS Italia 2016 in Parma. The three-day event,
dedicated to the world of industry automation, ended with
an incomparable success. Growth in attendance exceeded
the most optimistic forecasts and expectations.
The entire scope of the
international automation industry
came together in three halls; at
this sixth edition of SPS Italia a
record 28,614 visitors visited a
record 674 exhibitors. SPS Italia
is not only a trade fair but also a
knowledge platform focusing on
topics that involve the future of
the manufacturing industry. For
Kendrion it was a very exciting
fair, which gave a lot of new
From left to right: Vincenzo Leo (Sales Italy IMS), Simone Chiaria
insights. Our booth was very well
(Sales Italy IDS), Zoran Peric (Sales IDS), Beate Hermannstädter
frequented and generated
(Marketing IDS), Boris Weber (Global Sales Director IDS) and
interesting leads. Due to the
Neil Richmond (Global Sales Manager IDS)
increased visitor’ number, the
number of leads also increased by 40%. This proves the growing interest for our industrial
products in the Italian market, which is supported by our well-established Italian sales office.
02 | 2016
7
Last year we devoted a special edition of
Magnetised to providing you with detailed
information on Taking Responsibility, which
is Kendrion’s sustainability and corporate
social responsibility (CSR) programme for
the years 2015-2017. We want to update
you and show you some results of our
Taking Responsibility programme of last
year and our plans for the future. We hope
it motivates you to join this journey to an
even more sustainable company!
Sustainable
products
Sustainability is at the core of many
of our products and innovations.
We currently estimate that at least
20% of the Industrial products and
at least 40% of the Automotive
products contribute to energy
savings or lower emissions for our
customers or end users.
The scarcity of natural resources and climate
change are resulting in the transition to more
sustainable energy sources. Urbanisation and
the rapid growth of the population are leading to
increased mobility needs for both people, energy
and goods. Areas in which many people congregate
are governed by increasingly stringent, building
and transport system safety and environmental
requirements. Population growth – and in some
regions the ageing population – are accompanied
by increasing healthcare requirements. These are
accompanied by the trend towards continually
smaller, lighter and faster products. The product
portfolios of Kendrion’s business units are tailored
to these current trends. We are all familiar with the
examples because we work with these products
every day. We can be proud to be part of this
development.
In 2013, Kendrion introduced a greensigned logo
for products for the Industrial business units. Two
more products were granted the greensigned logo
in 2014, followed by two more in 2015 as well. We
reached our goals in this respect.
8
Building a sustainable
supply chain
The chains in which Kendrion is active have an impact on people, the
environment and society. It is of great importance that we continue
the dialogue with our suppliers and, in the selection and assessment
of suppliers, that we continue to consider their performance as
regards sustainability.
We have decided to develop an own Supplier Code of Conduct in 2012. This Code requires suppliers
to assume their responsibility for issues including the environment, human rights, working conditions
and fair trade.
Kendrion has set a target stipulating that the Supplier Code of Conduct shall be accepted by all main
material suppliers in all business units. All new material suppliers will be requested to conform with the
Code. While we are not there yet, we will continue to work diligently in this area both this year and the
years ahead.
For 2015, the aim was to conduct at least five CSR supplier audits per business unit. The number of
audits increased substantially in 2015 to 36, which means that the target has been achieved. The first
audits outside Europe were also conducted, in the USA and India. For 2016, the target is to have at
least three audits per plant with more than 80 employees and at least one audit for all other plants that
have their own suppliers.
Sustainable
operations
Energy & CO2 reduction
We endeavour to make efficient and less use of energy.
This can represent a contribution to combating climate
change and the exhaustion of fossil fuels. It can also lead
to direct financial savings.
Waste and recycling
We aim to minimise waste, with a view to our environmental and cost
impact. All Kendrion companies which have been awarded ISO
14001 certification keep records of their production and processing
of waste. We worked hard on the streamlining of the data and
database of waste and hazardous substances in recent years. As a
result, the data for the largest European plants are processed and
reported on a uniform basis. The objective was to gradually roll out
this system across the group, also in the USA, in 2015. This has been
achieved. Several sub targets will be developed and tested in 2016.
If you see opportunities in your day-to-day work for helping reduce
waste, please speak up and let us know your ideas!
Work is underway on the following themes:
Investments in energy-efficient systems,
such as heating & power systems;
ISO 50001 (energy management) and ISO 14001
(environmental management) certification;
LED lighting projects;
Contracts for supply of CO2-neutral types of energy;
Awareness campaigns for our employees.
•
•
•
•
•
ISO certification overview 2015
Number of production plants
ISO
9001
ISO/TS
16949
20*
2011
Kendrion invested heavily in energy-efficient systems for the
largest European plants during last years, with short payback
periods. These investments include e.g. the installation of two
new combined heating and power systems in Villingen, Germany,
compressors, LED light projects and the implementation of
energy and air pressure metering systems per production line
in at least two new plants as part of the ISO 50001 certification.
In combination, these projects will result in relatively substantial
energy and CO2 savings. In 2015, Kendrion once again devoted
a great deal of effort to the reduction of production-line energy
consumption in and around the workplace. LED lighting projects
will be expanded to several more plants in the course of 2016.
A new poster campaign was started to raise further awareness.
The investments lead to substantial financial savings.
ISO
ISO
14001 50001
15 2
* Of which 12 Automotive.
Two German plants, Industrial Magnetic Systems in Donaueschingen
and in Engelswies, completed the certification process for ISO
14001 in 2015. At least two more plants will follow in 2016. The plant
in Markdorf, Germany, has been successfully audited in 2015 and
received its ISO/TS 16949 certificate.
The ambitious objective is to achieve at the end of 2017 a 25%
reduction in both relative energy use and CO2 emissions compared
to the end of 2014. The use of CO2 rose in both absolute and
relative terms in 2015 compared with 2014. This was almost fully
attributable to higher emissions in the two largest German plants,
in Malente and Villingen, caused mainly by higher natural gas
consumption due to the new combined heating and power systems.
In 2016, a new contract will be entered into with a gas supplier
that is aimed at ensuring supplies of CO2-neutral gas. Plans are
being prepared for further investments in the area of energy
efficiency, especially at the Shelby plant in the USA and Malente
in Germany. In addition, the roll-out of ISO 50001 certification and
the LED project to various other large plants over the next years
should result in further improvements. On that basis and with
your continuous help, we expect to achieve the three-year target
referred to above by the end of 2017.
Kendrion (Eibiswald) GmbH in Austria received, as the first
Kendrion location, the ISO 50001 certificate in 2014. This ISO
standard is focused on the reduction of organisations’ energy
consumption on the basis of a detailed insight into their energy
consumption and use of energy. Kendrion’s plant in Villingen,
Germany, gained this certificate in 2015. Kendrion intends to roll out
the ISO 50001 certification to other companies during the following
years; at least three other plants plan to gain the certificate in 2016.
Toolkit
A Taking Responsibility toolkit has been prepared designed to offer
business units and plant managers as much support as possible in
this whole process. The toolkit includes as many potential measures
and best practices as possible. In this way, Kendrion creates the
right preconditions for the business units to become even more
(pro)active in this area.
Fair labour standards
Healthy and motivated employees are
essential to ensure future success.
That is why we focus on good
opportunities for training and
development, good pay, staff
satisfaction and a social policy to
match. Non-discrimination and
diversity are key priorities that define
Kendrion’s approach to its employees.
The need to say farewell to permanent or temporary
employees, for example due to the economic situation
or the loss of projects, can have a great impact for
the people involved and their families. This has,
unfortunately, been necessary at a few of the
operating companies in 2015 and this could also be
the case in 2016. We act in accordance with the
prevailing local conditions and circumstances and
with respect for the individual concerned. Fair
agreements were reached and employees were
given help in finding other jobs wherever possible.
Lukas Bremer,
trainee at Kendrion Kuhnke,
Malente, Germany
ˇ
Helena Molíkcová
ˇ
at Kendrion Prostejov,
Czech Republic
Staff satisfaction
In order to measure the company’s staff
satisfaction properly, we launched a group-wide
employee satisfaction survey. In 2015, at least
60% of the total workforce already participated
in staff satisfaction surveys. The aim for 2016 is
a further increase in the number of participating
group companies and to reach at least a 70%
group wide satisfaction score. The Taking
Responsibility plan aims at involving all
operating companies in the process and this
will also create good benchmark opportunities.
Diversity and discrimination
Kendrion’s Code of Conduct expressly states
that the company does not tolerate discrimination
by gender, race, religious denomination,
remuneration or any other means when hiring
new staff or in dealings with staff in positions of
equal importance. We strive to create a corporate
culture that does not tolerate discrimination. No
reports of incidents of discrimination were made
in 2015. Kendrion attaches importance to the
achievement of diversity in nationalities and
cultures. In 2015, Kendrion had employees of
at least 40 nationalities. 51% of all Kendrion’s
employees are women. The percentage of
women in key management positions of the
company’s operating companies increased
to 8.5% but is still relatively low. Kendrion
advocates the appointment of more women to
company management positions as the company
is convinced that this will ultimately lead to more
balanced considerations and improved
processes and results.
02 | 2016
9
Health & Safety
Kendrion’s continual attention to the safety of the production processes
has enabled the company to keep the number of accidents relatively
limited in the past years. The total number of accidents and Lost-TimeInjuries (LTI) at Kendrion in the last years is shown in the visual. The
total number of accidents was 41, which is a substantial decrease
compared to the number in 2014. Kendrion however does not consider
this number of accidents to be satisfactory and reducing this figure must
consequently be given attention because safety is a priority. The LTI
rate was unfortunately up on 2014 as a result of a few cases concerning
employees who were absent for extended periods following accidents.
Kendrion’s overall absenteeism rate was 2.5% in 2015, which is low for
the company’s type of industrial operations and geographical spread,
and comparable to last year. The objective is to retain the rate at
approximately the same level in future years, whereby the rate should not
be above 4% for each individual plant. This target was not yet achieved
in 2015 in all plants. A low absenteeism rate is indicative of healthier
employees and an agreeable working environment.
Many of our companies have implemented programmes to promote the
employees’ health. We encourage you to also take part in these initiatives.
They are good for your health and a lot of fun!
Community
Investment
Kendrion intends to engage in community
investment efforts as a means of promoting
development and benefiting local stakeholders.
Human rights
Kendrion holds it to be important that human rights and the
related international regulations are respected. This is why the
subject is covered in the Supplier Code of Conduct and in the
CSR audits of Kendrion’s suppliers.
Sponsoring and charitable donations
Kendrion was responsible for more than 30 sponsoring activities
and donations to charitable funds in 2015, including local Red
Cross organisations, support for a number of scientific activities
and education for children.
Interaction and volunteers
In 2014, Kendrion’s site in Villingen, Germany started an initiative
to highlight and raise awareness of employee volunteer work:
volunteers@kendrion. Volunteering and social engagement are
accorded very high priority for Kendrion and the programme was
adopted at some of Kendrion’s sites worldwide in 2015.
Corporate community investment project in India
Kendrion is active in a number of countries which are developing
rapidly but still exhibit substantial inequalities in the inhabitants’
standards of living and opportunities. We do not want to neglect
these issues. One example is India, where Kendrion began a
greenfield operation in Pune in 2011. We are convinced that
especially economic activity can contribute greatly to further
growth. Kendrion started in 2012 a project to enable deprived
young people in India to follow a technical education together
with the College of Engineering in Pune. Since then, scholarships
have been awarded to poor students of the Electrical, Electronics
or Mechanical Engineering faculty who have good study results
and an interest in electromagnetism. At least half of the selected
students is female. The selected students have the opportunity
to do summer apprenticeships at the Kendrion plant in Pune. The
intention is to offer some of them a job after graduation. Kendrion
was able to increase the number of scholarships to eight in 2015.
‘KENDRION SUPPORTS
ME IN MY STUDY
AND I GO THERE FOR
INTERNSHIPS’.
Business Ethics
We believe it is very important that all activities at the company are conducted
with integrity and aims to foster and promote a culture in which this is a given.
Besides the ‘tone at the top’, Kendrion has a set of internal policies and
procedures in place which contribute to ensuring this ethical culture.
Code of Conduct
The core themes of our Code of Conduct include
market position, authorities, corporate social
responsibility, accountability in general, and the
obligation for due care regarding safety and health,
the environment, and social interests. In 2015, a
new Code was implemented to place even more
emphasis on anti-bribery and corruption. We ask
you to take good notice of the Code.
Anti-Bribery & Corruption policy (AB&C) and
Competition compliance policy
Kendrion is committed to combating corruption
in all forms. Kendrion’s Code of Conduct devotes
specific attention to this issue. Corruption obstructs
or impedes economic development and results
in an unequal distribution of wealth. In addition,
involvement in corruption can result in damage
to and the loss of the reputation of Kendrion, the
management and employees. An anti-corruption
policy was implemented and published on the
website. Kendrion also introduced a competition
compliance policy in 2015. It is aimed at making
employees aware of restrictions with a view to
10
Mrunali Mane,
student in Pune, India
Visit the website
If you want to learn more about the Taking
Responsibility programme, the key issues
and actions, go to: www.kendrion.com.
Click ‘Taking Responsibility’.
competition when dealing with suppliers, competitors and
customers. Infringement of competition regulations is detrimental
to the operation of the market and can lead to damage or losses
for Kendrion and its employees. Online training courses dealing
with competition and compliance issues were developed. Several
hundred employees followed the course.
Whistleblower’s Charter
Employees who observe a (suspected) irregularity are encouraged
to enter into discussions with those directly involved or with
their supervisor. When this is not feasible or fails to achieve
results, then they may make use of the procedure laid down in
the Whistleblower’s Charter. The Whistleblower’s Charter offers
Kendrion’s employees an opportunity to report irregularities or
suspicions of irregularities to the management without jeopardizing
their (legal) position. One irregularity was reported in 2015 by an
external person involving the sale of materials by an employee for
his own personal benefit. Adequate measures have been taken
against the employee involved and additional internal control
measures have been introduced in order to prevent such incidents
in the future.
An external hotline for whistleblowers’ reports will be introduced
later this year following consultation with the relevant works councils.
CSR Report
The three final pages of this
Magnetised are based on our CSR
Report 2015. Thank you for all your
CSR support and actions over the
past year!
COLOPHON
Organisation: Wilma Stuiver Publisher: Kendrion N.V.
Design: teamtva! reclamebureau Copy: Wim Dieleman
Magnetised is printed on environmentally friendly paper.