KörberWorld

Magazine of the Körber AG www.koerber.de Issue No 2 October 2006

Trade Fairs and Machines Portrait of the Körber Medipak Group People and Careers Interview with Martin Eberhardt on the new Group Audit Management and Meetings Körber Management Conference in Pécs Ideas and Actions USable Prize with Ideas for Life

02_03 EDITORIAL AND CONTENTS

Dear Members of Staff,
at the “Körber Management Conference 2006” held in Pécs, Hungary, in mid-September (see page 21) we introduced and discussed the revised “Guidelines and Principles” of the Körber Group, our “Values and Principles.” They have been printed in eight languages – Chinese, Czech, English, French, German, Hungarian, Italian and Portuguese – so as to correspond with our largest production locations. They will be issued to all employees in the Körber Group. Why do we in our Group and our individual companies need formulated values and principles? Our business activities are subject to many rules and regulations, and the relationship with our suppliers and customers is governed by contract. Our Values and Principles are meant to provide us with orientation which goes over and above these basic rules of conduct. They describe the idea and the identity behind our Group as well as shared standards of value that cannot be found in laws and rules. Not only are we an “economic alliance of convenience” but we also constitute a community of values. Our economic environment is changing constantly, and our society’s values are altering. That is why from time to time we rewrite and adapt the wording of our Values and Principles. We have preserved the structure but have reduced the content and made some of the statements more concise. SOME OF THE MAIN MESSAGES ARE: We are a Group that must assert itself in the face of global competition and we must therefore be organized correspondingly. Unlike several listed companies, we give priority to long-term positive development rather than short-term profit maximization. We invest our accumulated capital in such a way that people find gainful employment with us which must increase our profitability. For it goes without saying that we are committed to the self-evident demand of our sole shareholder, the Körber Foundation, to increase our corporate value. It also goes without saying that the strategies governing our divisions and business areas must always be oriented towards the needs of our customers. All strategic measures, whether they concern cost reductions or innovations, are subject to this premise. Should we fail in this undertaking, we could be forced to sell off or abandon services or products. We have a common understanding of our entrepreneurial activity that is geared towards sustainable economic success and is thus prerequisite to the preservation of our independence. In the same way, we want to agree on common measures of value regarding our charitable and social activities. In doing so, we tolerate, accept and uphold the different local values in all the countries in which we operate and do business. This principle clearly expresses our international orientation. WHAT APPLIES TO ALL EXECUTIVES IN THE VARIOUS COMPANIES is that we want to always treat our employees fairly. We want to inform our employees about the current situation, we want to recognize their performance and reimburse them fairly, and we want to make employees aware of changes in a timely manner and support them in their efforts to acquire further qualifications. Our business success in all of our locations is of the utmost importance and extremely valuable to these regions. The same goes for society in general, to which we as a Group and the Körber Foundation are committed according to the wishes of our company founder, Dr Kurt A. Körber. The Foundation has gained worldwide recognition through its charitable initiatives and projects, and we – the entire Körber Group – can be justly proud to have the Foundation as our sole shareholder. I warmly recommend that you read the “Values and Principles” for they are the basis for our mutual understanding and actions. Yours sincerely, Werner Redeker

Christian Geisler

PEOPLE AND CAREERS 04 04 05 05 06 Schleifring Growth on the Island Sponsoring A small tower brings great pleasure Innovation Prize MWP Award 2006 for Studer Tobacco Division Management Conference in Hamburg “We see ourselves as a kind of support service.” Conversation with Martin Eberhardt about the new Group Audit Hauni triumphs once again Hauni wins the 10th Schleifring Soccer Tournament Paper chase and career advice Meeting for First-Year Apprentices Top-class professionals for top-class technology Studer’s Grinding Academy trains young specialists Who does what? New faces, new assignments, new workplaces MANAGEMENT AND MEETINGS 14 Grinding Forum Expert Panel in Assembly Hall 14 Workshop Experts exchange ideas at Körber PaperLink 15 Hauni Hungaria New assembly concept 15 Annual Report Gold for Körber 16 A strong community Portrait of the Körber Medipak Group 21 The sights are firmly set on 2010 Körber Management Conference 2006 25 Springboard to the East The Walter Group’s New Demo and Logistics Center 26 Growth through customer proximity The success story behind Körber Engineering Shanghai 28 With music and magic Körber celebrates anniversaries 30 Energized by electricity Collective electricity purchase for the Group TRADE FAIRS AND MACHINES 32 32 33 34 37 38 39 39 40 Winkler+Dünnebier In-house exhibition FlexiCut Kugler-Womako makes millionaires Hauni Primary Success with hot steam Of cables, cranes and containers “Backstage” at the METAV Successfully bucking the trend Joint Schleifring booth at the METAV 2006 “We are market leaders” Three Körber Medipak companies at the ACHEMA 2006 Innovative boost The PROKOS from Blohm Precision work The HELITRONIC MICRO from Walter From Bangkok to Birmingham Successful tradeshow appearances at the Asian Paper and IPEX IDEAS AND ACTIVITIES 42 42 43 44 Competition Writing history Edition Körber-Stiftung Tenth anniversary Studer The Art of Management Ideas for Life Körber Foundation announces winners of USable competition 48 The Professor and his “Chaperones” Körber Prize awarded to Prof Dr F. Ulrich Hartl 50 Harbor brunch with a round-the-world yachtsman Why the KörberForum is so successful

09 10 12 13

10 25

44
KÖRBERWORLD MAGAZINE is for customers and employees of the Körber AG. Published in German, English, Italian and Hungarian and issued twice yearly. Responsible for content: Peter Reszczynski, Körber AG, Nagelsweg 33-35, D-20097 Hamburg Telephone +49 40 21107-01 Fax +49 40 21107-11 Editorial office: Christian Koch Layout and production: Detlef Schlottmann Translation: Annette Streck, New York Lithography: Ute Ruschmeyer Printers: Bahruth Druck & Medien Our Cover shows Dirk Sassenberg working at the sealing unit of the MediSeal-LA500 edge-seal sachet machine, equipped for the first time with a 2-component dosage system as requested by the customer Famar.
Photo: Christian Geisler

04_05 PEOPLE AND CAREERS

Schleifring Growth on the Island
Over the past two years, the machine tool market in Great Britain has experienced strong growth. In 2005, the Schleifring Group reported additional sales of nearly 40 percent in Great Britain compared to the previous year. This success was mainly due to an increase in orders from the turbine industry and the tool and die makers. By setting up Körber Schleifring UK Ltd. (KS-UK) in Basingstoke near London as well as in Coventry near Birmingham, the Machine Tool Division has now created an excellent operational base enabling it to safeguard success and expand in the long-term. The Schleifring business in Great Britain is based on the three pillars cylindrical, surface and tool grinding, all of which are united within KS-UK. This solid foundation centers on the tried and tested sales agencies that the customers have come to rely on – employees of the Schleifring companies and their sales partners of many years. The Group’s service technicians are also assigned to the individual departments and are excellently trained in their specific field of expertise. Managing Director David Eburne says, “We are able to coordinate inter-company activities such as, for example, the key-account management for major customers, service as well as sales measures and are thus able to react quickly and flexibly to the customers’ requirements.” Together with his team, Neil Whittingham, head of tool grinding, is based in Birmingham, an important center of the English mechanical engineering industry. He is the competent partner for the entire product range of the two machine tool manufacturers Walter and Ewag.

HONORING A LANDMARK. Neuwied’s Lord Mayor Nikolaus Roth und W+D training manager Dirk Klappert presented Fredi Winter, Member of the State Parliament, with a miniature version of the town's water gauge tower in recognition of his services.

Sponsoring A small tower brings great pleasure
The Körber PaperLink company Winkler+Dünnebier is based in Neuwied, a town located on the river Rhine. On the banks of the river stands the town’s landmark, a water gauge tower that indicates the river’s tidal level. That gave W+D an idea. “We’ll produce a miniature version of the water gauge tower as a souvenir for the town’s visitors, and as a give-away for W+D customers.” No sooner said than done. The apprentices got down to work and soon the W+D management board members Dietmar Kurz and Dr Manfred Kühn were able to present Neuwied’s Lord Mayor, Nikolaus Roth with two different-sized versions of the water gauge tower made from shiny brass and placed on an aluminum base. The city council plans to offer this miniature for sale or possibly use it as a gift for distinguished visitors and honorary citizens. Along with his apprentices, training manager Dirk Klappert was pleased to have received this order. “We are proud of the fact that the town was so taken with our design. And just so that each tower really represents something special to its owner, we will also include a certificate of authenticity.”

Tobacco Division A meeting for the future

HONORED. Studer’s Managing Director Alfred Gaegauf (center) holds on tightly to the well-deserved prize for innovative development.

Innovation Prize MWP Award 2006 for Studer
Yet another innovation prize for the Körber Schleifring company Studer. After its cylindrical grinding machine, the S12, won the award for being “the most innovative new product” at the EMO in Hanover in 2005, a prize awarded by the trade publication “Maschinenmarkt”, the company has now been honored with the “MWP Award 2006” for its machine tool, the S242 for cylindrical grinding and hard turning. The prize was awarded by the renowned English trade publication “Metal Working Production.” The jury’s decision was based on the overall machine concept that combined the strengths of both cylindrical grinding and hard turning technologies, thus increasing productivity and at the same time markedly reducing machining, set-up and non-productive times as well as tool costs. In a friendly gesture the company took the opportunity of printing a note of thanks in its house magazine “Studer Info” in which it expressed its gratitude to the former Technical Director and board member Hans Tanner who retired in 2002 but who was responsible for developing the S242 together with his team.

+ + + Fit for the future – Hauni’s anniversary celebrations determined the central theme of this year’s Management Conference for the Tobacco Division. Some 200 participants attended the intensive workshops at Hamburg’s Curio-Haus on the subjects of “Innovation and Products”, “Market and Customers” as well as “Employees.” The participants soon discovered that fit for the future means one thing above all else, namely to be fit for growth. This is no easy task in a stagnating market. By using successful examples taken from other business fields, the President of the Fraunhofer-Gesellschaft, Prof Hans-Jörg Bullinger, demonstrated how this challenge could be overcome. His most important point was that in today’s world, simply having good ideas is not good enough – not even for a technological company. Customer orientation as a factor of success has become at least as important as innovative power. + + +

TREMENDOUS SCOPE FOR NEW IDEAS. Martin Eberhardt has been head of the Group’s

PEOPLE AND CAREERS 06_07

internal auditing department for a year. His team analyzes business processes within the companies belonging to the Körber Group

“We see ourselves as a kind of support service”
The department for internal auditing was established in July 2005 to coincide with the consolidation of the Group and divisional holdings at the Hamburg location in Nagelsweg. At least 18 audits will have been completed in the Group’s companies by the end of this year.
The question of why we need internal auditing and what tasks the auditors have, is answered in the “Group’s Auditing Guidelines.” Internal auditing is an integral part of the system of risk management and its task is to carry out systematic audits and organizational consultancy throughout the entire Körber Group. For the past year, Martin Eberhardt, age 42, a graduate in business administration, has devoted himself to this demanding task along with his team of four colleagues. Initially, their job involves a lot of traveling to each of the companies’ locations in the Körber Group. Their itinerary requires conscientious planning and preparation. Martin Eberhardt says, “We work according to the guidelines laid down by the Group’s executive board. We do not go into the individual companies with a standardized checklist, but we do rely on the support of the Körber companies. We see ourselves as a kind of support service in the attempt to analyze and improve business processes. That way, the companies benefit as does the Group in general.” Optimizing business processes – is that not the task of each of the individual companies as they are the ones who have precise knowledge of their organization and internal processes, their products, their markets and their customers? Martin Eberhardt confirms this and says, “That is how it should be and in general that is the case. It is our job to check whether the Group’s guidelines concerning strategies, directives and legal requirements are being followed. We turn our attention to the instruments the companies can employ to protect themselves against losses in profit.” The individual steps: At the end of 2005, Internal Auditing formulated detailed audit assignments for the individual companies in consultation with the executive board and set them down in an auditing plan for 2006. With this definitive auditing assignment the Group’s auditors went to work in the individual companies. THE AUDITORS ARE RESPONSIBLE for all of the Körber companies, and that includes the non-consolidated sales and service companies. It goes without saying that the auditors cannot put all of the companies through their paces at the same time, so at first they determine a focal point. This year, Martin Eberhardt and his colleagues concentrated mainly on covering currency risks – a key factor for international companies. This makes very good sense especially considering an order volume running into millions and delivery times of up to six months. If an order is settled in foreign currency then the deficit can be considerable if the customer’s currency collapses or weakens before payment is received. On the other hand, additional profits can be generated if the currency exchange rate rises. Eberhardt says, “The Group guidelines stipulate that foreign currency hedging be used to protect all foreign business transactions. Currency speculation as well as other speculative transactions – as tempting as they may seem – are forbidden.” MANAGEMENT ACCOUNTING and its internal control system are just as much a part of the auditing plan as are the processes in materials management. How are purchases organized in a company? How is the invoicing audited? Job-order costing or processes in warehouse management are also a focus of auditing. “If we detect differences in the quality of processes between the individual companies, then we call attention to it so that the people in charge can learn from their colleagues in other companies,” says Martin Eberhardt reporting on his experiences. The Group’s auditors focus their critical gaze at many different departments in the companies. Are they all-rounders who can do everything and do it better than the experts in the Körber companies? “No,” says Martin Eberhardt, “at the most, we are second-best.” And he says it

08_09 PEOPLE AND CAREERS

“Up until now we have always had a friendly reception, often paired with a certain curiosity.”
The Group’s internal auditing department does not have the authority to give instructions. All that the auditors can do is to put forward proposals. When an auditing assignment is completed, a report is written for the assessed company and the executive board from which the need for action might be derived, as the case may be. “One of our key targets is transparency within the Group,” says Martin Eberhardt. ANOTHER AIM OF AUDITING is to create added value for the Group by assessing and – if need be – improving on the internal control systems established within the companies to prevent capital losses and also inefficient operational sequences. It goes without saying that auditors are also in a position to conform to the commonly perceived image of their job and undertake ad-hoc audits if and when there is a suspicion of irregularities. What makes a successful auditor? What characteristics does he need to bring into his job? Martin Eberhardt says, “A course in business administration is certainly an advantage. But we also need practical people, for example purchasing agents, or engineers whose specialized knowledge is very welcome in our field.” Conscientious work, familiarization with new business areas but also the ability to take pleasure in working with people, are prerequisites for a successful auditing job. Not being afraid to spend hours in intense study of files also helps. Martin Eberhardt and his four-man team will have completed at least 18 comprehensive audits by the end of this year. They will have perused many files and have written just as many reports.

SUCCESSFUL START. Martin Eberhardt, Yu Zhai, Mathias Winkelmann and Robert Bendig (from left to right) will have completed at least 18 audits by the end of this year

without so much as a trace of selfmockery. The auditors’ decisive advantage is their bird’s-eye view, which gives them an added edge. They are not out to uncover individual mistakes but to point out possible faults in the system that could lead to risks for the individual companies or the Group as a whole. Group auditors are “impartial.” They do not pursue any self-interest and they provide assistance if the need arises. Eberhardt says, “That can mean recommending necessary changes in internal processes to minimize risks. We fully realize that this can sometimes lead to additional administrative expenses, something that we, of course, try to avoid. We adhere to the principle: The expenditure for risk minimization must never be allowed to exceed the evaluated risk.”

What kind of reception do the auditors receive in the companies? Is it cautions or even critical? Martin Eberhardt says, “No, up until now we have always had a friendly reception, often paired with a certain curiosity. Basically, for most companies, an internal audit is not something new. In light of the size of the Group and the responsibility imposed by the law, the executive board has decided to establish the Group’s internal auditing in the Group holding.” WHAT IS HIS ASSESSMENT after just a little more than a year in the Körber Group? Have the Group’s auditors detected much need for improvement? Eberhardt says, “As a general rule, the processes we have checked to date function quite well. Here and there we have discussed potential for improvement, although our reports always take the companies’ arguments into consideration.”

TAKE COVER. The goalkeeper (and photographer) were impressed by the powerful shots from some of the Körber soccer players

Hauni triumphs once again
Hauni’s soccer team once again captured the title for the Hanseatic city. At the 10th Schleifring Soccer Tournament the players from the Tobacco Division beat teams from six other nations.
The sporting event of the year, the Soccer World Cup in Germany, was not the only contest to cast its spell over the masses. The “Körber World Cup” also captivated soccer fans. 24 teams from Germany, France, Italy, the Czech Republic, Switzerland and Hungary had accepted the invitation issued by the organizer MediSeal to come to Schloss Holte – Stukenbrock near Bielefeld. It was a magnificent response to this 10th Schleifring tournament. To come straight to the result: unlike the professionals, the “Squadra Azzurra” did not walk off with the trophy this time. Instead, a German team won the competition. In the finals, Hauni from Hamburg beat Winkler+Dünnebier 2:0, taking revenge for their 1:2 defeat in the preliminary round. Congratulations to Hamburg! The sports arena was the setting for seven hours of exciting matches, riveting action in the penalty area, wins, defeats and consolation for the winners and losers. The fans – among them Chairman of the Executive Board Dr Werner Redeker and his colleague, Schleifring’s CEO Gregor Rüth – certainly got their money’s worth. You might well ask: What happened to the clear favorites from Fabio Perini? As third-placed team after the preliminary round, they were eliminated early on goal average. The last Italian team in the competition, KPL Packaging from Bologna, was defeated in the quarterfinals. Three German teams as well as the Swiss team from Studer contested the semifinals. THE TEAM THAT ESTABLISHED this tournament and gave it its name, nobly held off but was the clear favorite to win the fairplay trophy. The Schleifring team was eliminated from the competition in the preliminary round after five honorable defeats in which it scored no points. From a sporting point of view, the day had much to offer, but even the entertainment value of this KörberWorld Cup is not to be scoffed at. The soccer players look forward to meeting their colleagues from other Körber companies just as much as they do to winning sporting laurels. The organizers from MediSeal proved – like the hosts in previous years – that they had a knack when it came to choosing the program for the evening. Everyone was invited to a Safari Park where the evening ended with a fortifying dinner and cool drinks, leaving the soccer players seeing – no – not pink elephants but rather white tigers prowling around their cages. At the end of the long day, the soccer players raised their glasses and drank a toast to the next, the 11th Schleifring tournament in 2007, which will be organized and hosted by the youngest company in the Körber Group, Winkler+Dünnebier in Neuwied on the banks of the beautiful River Rhine.

THIS IS WHERE IT’S AT. The Group’s Chairman Dr Werner Redeker and the Foundation’s Chairman Christian Wriedt joined the apprentices in listening to the Rap music resounding through the rooms of the Körber Foundation

Paper chase and career advice
The Körber AG und Körber Foundation invited 130 first-year apprentices and freshman students from all German and Swiss Group companies to Hamburg. The participants were impressed by the diversity and quality of the program.
Learning can be fun, especially if it involves young people buzzing around the corridors of the Körber Foundation like a swarm of bees. Clasping a two-page questionnaire, they rushed from one office to the next where employees from the Foundation patiently answered questions on various projects, such as the Bergedorf Round Table, the Federal President’s History Competition, the Körber Forum, the Foundation’s headquarters, the Theater Haus im Park, the Körber Prize for European Science, etc. Whoever answered the questions correctly in the shortest amount of time was declared the winner. And the winner not only received a whole case full of music CDs by a rap group, which resulted in the corridors of the Foundation’s headquarters resounding to very unfamiliar sounds that afternoon, but also gained a wealth of knowledge and experience. The same goes for the Foundation’s employees. Occasionally they had to inform themselves first in order to give the apprentices a correct answer. THE “HUNTING SCENES” at Hamburg’s harbor were all part and parcel of this training day at Körber. It was a premier event. Invitations had been issued to all newcomers who began their training in autumn of 2005 as well as students who were taking the dual-mode course of studies, an in-service course of training at a university of applied sciences. The idea was to give young people the opportunity to become acquainted with the Group, its divisions and the Group companies. What is this big organization I work for? What kind of products do the Körber companies manufacture? What are the countries in which we produce machines? Who owns Körber AG? There were many answers to these questions. Martin Verg, a Hamburg-based journalist, presented the event in a clever and lively manner. The Group’s chairman, Dr Werner Redeker, and the Foundation’s chairman, Christian Wriedt, introduced the Körber Group together with its divisions and its sole shareholder, the Körber Foundation. It was left up to the apprentices themselves to describe their training company and its products. Werner Redeker highlighted the importance of vocational training within

PEOPLE AND CAREERS 10_11

the Körber Group. “We go to great lengths as regards our vocational training and in the long term that is the correct decision,” he said. He went on to say that as a technological Group they need young employees to grow into and make an effective contribution to the company. Dealing with the future prospects of the young generation in light of globalization, Redeker said, “We make every effort to employ our young apprentices and find them jobs within the Group.” Addressing his young listeners in the auditorium, he appealed to them, saying, “Towards the end of your training with us, you are very welcome to mail us an online application for a job with any of the companies within our Group. You can gain valuable experience abroad, learn various languages, and practice communicating with other cultures. Anyone striving towards this goal will receive our full support.”

In a very comprehensible and clear presentation, Christian Wriedt described the relationship between the Group and the Foundation and the advantages that this constellation has for the Körber Group: Preservation of independence and the pursuit of long-term perspectives rather than the search for a shortterm increase of stock market price. “As a charitable foundation, however, we have no direct influence on the entrepreneurial activity. That alone is the business of the Group’s executive board,” said Wriedt. “But naturally, we are careful to ensure that our Foundation’s assets – to which the Körber Group belongs – increase through clever and far-sighted actions.” In response to the question of how to make a successful career at Körber, how to attain the top position of a large Group or an important Foundation, Werner Redeker and Christian Wriedt

both had this message. “Always preserve your curiosity, continue to develop, and above all, always enjoy your work, even if not all the work that you do during your long career promises to be fun and enjoyable from the start.” It was clear from the outset that the apprentices from outside Hamburg would use the “Commencement of Training at Körber” to learn more about this Hanseatic City and the many attractions it holds for young people. They discovered many new aspects about Körber, the Group and the Foundation, but they also wanted to know more about what the city, home to the very heart of the Group, has to offer. During their nightly forays into the city, the young apprentices were accompanied by their colleagues from Hauni who offered to act as tourist guides. A nice gesture.

What were your expectations when you came to “Commencement of Training at Körber” and have they been met? Those were questions we asked three Körber apprentices. PHILIPP COESTER, age 17, apprentice design engineer at the Schleifring company Studer AG, Switzerland. “I thought that the information about the Körber Foundation was particularly interesting. It was certainly new to me. As regards the Körber Group, I found the information about Körber Medipak very helpful. I didn’t realize just how diverse and international the activities of the Körber Group are.”

PATRICK THRAN, age 22, energy electronics engineer, Winkler+Dünnebier, Neuwied. “I did some research on the Internet prior to coming here. After all, I’ve been in the job for quite some time as I’ve already completed an apprenticeship as an industrial mechanic. The information about the Foundation was new and very interesting. It is good and also comforting to know that our independence will be maintained and that this large Group offers such good opportunities for further education.”

SONJA GEY, age 20, currently attending the dual-mode course of studies with in-house training at Hauni to become an industrial engineer. “As someone who was raised in Hamburg, I already knew about the Foundation and the fact that Hauni offered excellent apprenticeships. It was a definite plus to learn more about the other Group divisions directly through videos and through personal contacts rather than brochures as is customary. And I am already looking forward to the possibility of going on foreign assignments as Dr Redeker mentioned. Count me in.”

THERE’S NOTHING LIKE STARTING YOUNG IF YOU WANT TO BECOME A GRINDING SPECIALIST. The apprentice polymechanics Martin Kropf, Domenico Manti, Roman Itten and Fabian Leutenegger (from left) will soon have no problem answering any questions relating to Studer machines

Top-class professionals for top-class technology
At Studer, top-quality training is given the highest priority. Increasingly, the Schleifring company is relying on its young specialists from the in-house “Grinding Academy”.
Grinding, precision grinding requires an enormous amount of experience. Grinding specialists are a scarce commodity – a situation that the Schleifring company Studer in Thun is unwilling to accept. True to its company logo “The Art of Grinding,” Studer trains its own specialists in the art of grinding at its in-house “Grinding academy.” Each year, two third and fourth-year apprentices are selected and go on to receive targeted training, following which they can be employed for internal and external assignments. Such measures increase the quality of personnel within the company and also help young people to develop their careers. STUDER’S MANAGING DIRECTOR Alfred Gaegauf says, “Our company attaches great importance to winning the top position on the global market as regards grinding technology. We cannot buy grinding technology know-how but instead we have to acquire and build it up ourselves.” The apprentice polymechanics receive specialized training in grinding technology, gain experience at customer seminars, learn control engineering and software applications, before they are allowed to work in assembly, accompany Studer technicians as they visit customers and are permitted to experience the machining of complex projects in the systems assembly department. Two “grinding specialists” have already successfully received their “academic initiation” and are currently performing their national military service. Four other Studer apprentices are currently enrolled in the select training program “Grinding technology.”

PEOPLE AND CAREERS 12_13

Who does what?
New faces, new assignments, new workplaces

Jürgen Spykman

Jörg Tafelmaier

Klaus Aarestrup

Stephan Plewa

JÜRGEN SPYKMAN, age 41, was appointed Managing Director of Hauni Richmond, USA, to succeed John Miller as of September 1, 2006. Jürgen Spykman was formerly the Managing Director of the Tobacco Division’s company Universelle Engineering U.N.I. GmbH in Schwarzenbek near Hamburg together with Andreas Panz. After completing his apprenticeship as an industrial sales representative, Jürgen Spykman studied industrial engineering at the University of Applied Sciences in Wilhelmshaven as well as the Business School and School of Engineering at the Middlesex Polytechnic in London. He joined the Tobacco Division in 1993, where he worked in Controlling at the Hauni Maschinenbau AG and was an assistant to the executive board in the field of divisional controlling. In 1998, Jürgen Spykman was appointed Commercial Manager at Universelle and in 2003 was made Managing Director. JÖRG TAFELMAIER, age 41, was appointed to succeed Jürgen Spykman as Commercial Manager at Universelle effective September 1, 2006. Tafelmaier, who grew

up in Ludwigsburg in Swabia, completed his apprenticeship as an industrial sales representative before studying business management in Stuttgart. Working for a medium-sized company based in Southern Germany, he gained experience in both marketing and sales, first as an assistant to the executive board and then as head of marketing. After working in a responsible position with the German machine manufacturer Messer Griesheim, he joined the Hauni Maschinenbau AG in 2000 as the assistant to the Chairman of the Executive Board. He was later appointed head of the Tobacco Division’s packing machine department, which has since been shut down. Most recently he was head of divisional controlling. KLAUS AARESTRUP, age 36, was appointed to succeed Bruno Posset as Managing Director of the Körber PaperLink company E.C.H. Will effective August 7, 2006. Born in Denmark, Klaus Aarestrup graduated as Executive Master of Business Administration from the renowned University in Lausanne, Switzerland, and since 1995 has worked in Singapore, Malaysia, Thailand, Germany and Switzerland. Most recently, he was Vice-President and member of the

executive board at Gallus Ferdinand Rüesch AG, a manufacturer of label printing machines based in St. Gallen, Switzerland. In this position, he was responsible for marketing, sales and product management, and also held managerial responsibility for the sales subsidiaries. STEPHAN PLEWA, age 40, was appointed Managing Director of the pharmaceutical packaging company MediSeal based in Schloss Holte-Stukenbrock effective October 1, 2006. He succeeds Dr Hermann Speckhahn who is leaving the company. After an apprenticeship as a technical draftsman, he studied mechanical engineering at the University of Hanover. As a qualified engineer, Stephan Plewa began his career with the German printing machine manufacturer König & Bauer, and in 1998 joined Klöckner Medipak GmbH, now MediSeal, in 1998 as head of design engineering, where he took over as technical director in 2001.

14_15 MANAGEMENT AND MEETINGS

Körber PaperLink Communications Workshop Grinding Forum Expert Panel in Assembly Hall
+ + + Walter Maschinenbau AG welcomed a host of visitors to the 6th Grinding Forum at their location in Tübingen held on September 11 and 12, 2006. Over the course of both days, the converted assembly hall became the setting for a top-class panel of specialists who lectured on topics from the fields of economy and grinding technology in front of an audience of trade experts. Heinz Poklekowski, Managing Director of Walter Maschinenbau GmbH, welcomed the guests and informed them about the company’s relocation to a new building in the next year. The opening lecture on the subject of “The future of Germany as a production location” was held by Prof Dr Straubhaar, member of the Supervisory Board of the Körber AG and President of the renowned Hamburg Institute of International Economics. Other lectures covered various aspects of tool grinding and other related topics; beginning with basic explanations on the manufacture of machine tools, special features in the use of mineral cast machine beds, new cutting tools and surface coatings. The lectures on the second day addressed the challenges in manufacturing and measuring micro tools as well as their possible fields of application. The symposium closed with information on the latest findings in the field of grinding mediums as well as current developments in cylindrical grinding. + + + For sales and communications experts, being able to speak a joint language is indispensable. The aim of the Communication Workshop organized by Körber PaperLink in Hamburg was to take stock and to determine a strategy for joint projects. KPL’s Director of Communications, Walter Tamarri, and his colleagues from all of the KPL companies spent two days dealing with sales projects from the individual companies as well as the entire division. The program included a presentation of the division’s strategy for the coming years as well as a presentation of the division’s and service department’s revised corporate identity. The participants returned to their companies with much food for thought. Their task now is to implement the guidelines and directives that were laid down and agreed upon at the conference in their various locations.

CHRISTIAN WRIEDT, Chairman of the Körber Foundation, was pleased to welcome the marketing specialists

Annual Report Gold for Körber
+ + + Körber AG has been honored with a “Gold Award” for its Annual Report 2005 by the League of American Communications Professionals (LACP). Known as the “Vision Awards,” these are presented each year as part of one of the most renowned international annual report competitions and are awarded across a broad range of industries. Over 1900 entries representing 16 countries were submitted and judged by an independent, international jury. LACP rated the entries based on first impression, report cover, letter to shareholders, report narrative, report financials, creativity, message clarity and information accessibility. Explaining its judgment, the LACP said, “The Körber Annual Report is overall a very inspired piece of work. The first impression, the cover, the editorial by the Executive Board and the informative reports from the divisions, as well as the concise presentation of the company figures were very impressive. The jury awarded the Körber Annual Report 97 out of a possible 100 points.” We are pleased to share this honor with our partner agency, CAT Consultants in Hamburg, who designed and prepared the Annual Report. + + +

SMOOTH ASSEMBLY. Károly Turnai from Central Logistics (left) and the head of the Secondary unit Gyula Lakatos are certain: PULS will provide a boost to Hauni Hungaria

Hauni Hungaria New assembly concept
With the construction of a new assembly hall and logistics center in Pécs, Hauni Hungaria has implemented its strategy for a modern work-cell based assembly system. PULS, the Production and Logistics System project that defines the key core elements, targets the shortening of throughput times whilst simultaneously reducing assembly costs to help keep tied-up capital to a minimum. Delivering materials as they are needed and ready for use is critical so that assembly workers can focus their attention solely on the assembly process. In other words, the right number of parts has to arrive at the right place at the right time. We have achieved this by implementing a range of measures: New assembly cells each have a strictly delineated material staging area, the provision of materials is synchronized in a weekly cycle, and all subassemblies are produced in lots of one. New pallet trolleys have been provided in all assembly areas so the hall can be kept tidy and uncluttered – anything else is superfluous. Optimization of the entire material flow starts with the order and the network plans in SAP. Subassemblies arrive on new mobile pallets in the sequence in which they are required for the assembly process. They come ready sorted, numbered and addressed to a vacant assembly cell within the assembly area. Targeted and just-in-time provision of materials to the assembly points requires advance preparation of pick lists and other jobs in the warehouse. This way the person in charge of the process can look at SAP online and at any time immediately see which cell is in use, the progress of the assembly and which, if any, parts are missing. Scrupulous orderliness in every part of the assembly hall completes this new concept. The pilot phase began in the summer when the first machines were produced using this new cellular assembly system. Michael Müncheberg, Hauni Maschinenbau AG

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A strong community
Körber Medipak wraps and fills products with the utmost efficiency and speed. Portrait of a group that has for years built its international reputation on the manufacture of pharmaceutical packaging.
It stands to reason. The number of elderly is rising constantly. People need medicines. People invest in preventative health care. Pills, powders, and syringes are in great demand, regardless of the state of the economy. Our Group has been active in the field of pharmaceutical packaging for nearly five years. It started with the takeover of the two Swiss companies Rondo and Dividella in the year 2002. In 2003 this was followed by our next acquisition, Klöckner Medipak in Schloss Holte-Stukenbrock near Bielefeld in Germany which is now managed under the name MediSeal. Today, these three companies manufacture their products at five locations under the joint umbrella brand of Körber Medipak: Dividella and Rondo in Switzerland with their subsidiaries Rondo obaly in the Czech Republic and RondoPak Inc. that was taken over in May 2006 (see page 19) as well as MediSeal in Germany. The Group holds a sales and service company, represented by Körber Medipak North America based in Clearwater, Florida and managed by Mike DeCollibus. BUT IT TAKES MORE THAN INVESTMENT in a growing market to set up a promising and successful new business area. Firstly, it requires companies that are up for sale; secondly, one needs the right touch in selecting companies that are sustainable and that manufacture products that are well positioned on the market, and thirdly it requires a viable strategy in order to powerfully promote the acquired companies. Gerhard Breu, CEO of Körber Medipak. That is not something that happens overnight. Experience has shown that such a process usually takes up to three years. The individual steps were quickly defined: promote marketing so as to position the group on the market, further develop the products, increase sales activities and then strengthen the attained position so as to gain market shares. MEDISEAL DEVELOPED the high-performance blister line CP600, as well as the cartoner P1600, one of the most successful new developments in the company’s history. All in all, the company that was the first to manufacture fully automatic blister machines already has more than 1000 processing lines on the market. The “Late Stage Customizing” system (LSC) has already shown great promise and has always proved a success when it was presented at trade fairs. Together with the logistics system – called BIB-BOB – it has enormous advantages for the customers’ productivity. The diversity of products and brands is also on the rise in the pharmaceutical industry. Manufacturers are forced to produce many more variants than before, and need to do so for patients in countless countries all over the world. The demand has increased for smaller batch-sizes in all manner of various packaging for a multitude of countries and with package inserts in just as many languages. MediSeal’s LSC-concept enables the production of blank but clearly identifiable blister packs in large

HEAD OF A STRONG BRAND. The CEO of Körber Medipak Gerhard Breu The pharmaceutical market flourished during 2001. The industry was earning high-level profits. Over the past three years, major pharmaceutical companies have followed the example set by other industries, and consolidations and mergers have been on the agenda. This situation was further exacerbated by governments' reluctance to approve new drugs. This has affected the machine suppliers’ business. The rate of growth on the machine side of the business was negligible. The packaging business as represented by Rondo, however, was still operating at a good level. What to do? Körber Medipak did its homework. “We began working to create a corporate identity for the new group, and we invested heavily in marketing and sales as well as new products,” says

GOOD PROSPECTS FOR MEDISEAL. Friendly faces in the assembly hall, all exuding confidence. There are busy times ahead as the pharmaceutical industry has a great demand for blister lines and cartoners. This is certainly a positive development that will be reflected in increased sales in 2006

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quantities. With the aid of the BIB-BOB logistics system they are fed into an interim storage facility and can be returned to the final packaging process as and when required. The new blister line CP500 for disposable syringes or ampoules, known as liquida, rounds off this product program. As if that were not enough, after the successful launch of the LA-400, MediSeal, the market leader in sachet packaging machines, is preparing to enter the market of stick packs. These are the slender coffee – or sugar packs, about the size of a cigarette, that are offered in hotel rooms or on airplanes. Apart from developing innovative packaging solutions, Dividella has pressed ahead with the completion of its platform system and now offers machines that are geared towards various applications using the same machine base. The entry into wallet packaging meant an enormous step forward for the company. The wallets are easily manageable packages not unlike a purse for money. Tablet blisters – imprinted with the days of the week if required – are glued onto the cartons, as are the package inserts. DIVIDELLA’S MACHINE SERIES represents an enormous performance range. The most recently presented machine (NeoTop 104) covers the lower output range whereas the NeoTop 804 offers the highest performance efficiency. It can package up to 800 individual objects in up to 80 multi-packs or up to 240 individual packages per minute. By its very nature, the pharmaceutical packaging manufacturer Rondo was less affected by mergers in the pharmaceutical industry. Rondo develops and manufactures packaging materials that Dividella or MediSeal machines then fill with pharmaceutical products. This is a continuous business that has been going strong and is still in full swing. Since joining the Körber Group five years ago, Rondo has doubled its sales. In order to strengthen its competitiveness – and in order to meet growing customer demands – the company built a new

production site for standard folding cartons in the Czech Republic, Rondo obaly that began production last September (see page 20). Yet another new location is Rondo-Pak Inc. in Philadelphia, USA, where packaging material is manufactured for the American market. Among the world’s major groups in the pharmaceutical industry, Rondo is well established as a supplier of special

packaging solutions. The company develops these packages according to the individual requirements of the customer. Special solutions such as “Cryptoglyph” – an invisible code on the package that safeguards against counterfeit products – or Braille printing are Rondo innovations that are gaining significance. Three independent companies, five production locations – that is Körber

The Körber Medipak Group
RONDO AG Established: 1934 Rondo AG printing works in Basle, Switzerland, was established; Rondo AG has been a member of the Körber Group since 2002 Milestones: 1946/47 Development of the Rondo WELLE and smaller packaging machines for ampoules Product portfolio: Rondo is Europe’s leading manufacturer of standard and specialized packaging cardboard for the pharmaceutical industry. Together with its customers and in close cooperation with its sister companies Dividella and MediSeal, Rondo develops optimal packaging solutions that comply with the highest safety standards. Managing Director: Dr Markus Staub Rondo obaly s.r.o., Ejpovice, Czech Republic: Jörg Oswald, Works Director Rondo-Pak Inc., Norristown, Philadelphia, USA: Andreas Endlich, President Employees: 255 Sales 2005: EUR 29.7 million, 2006 (projected): EUR 31.6 million DIVIDELLA AG Established: 1978 in Grabs, Dividella AG has been a member of the Körber Group since 2002 Milestones: 1990 Development of the NeoTop packaging systems Product portfolio: Development of packaging as well as development and manufacture of machines for the fully automatic packaging of liquid products for the pharmaceutical industry – ampoules, syringes, injectors but also difficult to stack products such as blisters and patches. Managing Director: Dr Manfred Zurkirch Employees: 95 Sales 2005: EUR 13.8 million, 2006 (projected): EUR 17.9 million MEDISEAL GMBH Established: 1934 Wolkogon GmbH in Bielefeld was established 1999 renamed Klöckner Medipak, 2003 Körber AG takes over Klöckner Medipak, 2004, Klöckner Medipak is renamed MediSeal Milestones: 1962 development of the first blister machine VA I. 1993: world premiere presentation of the first servo-controlled blister machine CP400 Product portfolio: MediSeal offers machine solutions for both dosage and packaging of solids, powders and other paste products. The main focus is on the development and manufacture of blister machines, integrated cartoners as well as sachet packaging. Managing Director: Stephan Plewa Employees: 175 Sales 2005: EUR 26.5 million, 2006 (projected) EUR 28 million

Rondo Growth in the USA
There is good growth potential in the area of folding cartons for the pharmaceutical industry. The takeover of the carton manufacturing business of the US packaging materials specialist H.S. Crocker Corp. Inc., based in Philadelphia, in May 2006 means that the Körber Medipak company Rondo now has its own production site located in the major US pharmaceutical market. The company specializes in the development and production of folding cartons for the pharmaceutical industry, which generates 90 percent of sales. The business of the renamed Rondo-Pak Inc. will be continued with the existing 30 employees in Valley Forge (Philadelphia). RondoPak is a fully owned subsidiary of Rondo AG (Allschwil, Switzerland). As a result of the integration of business fields, the activities of both companies, Rondo AG and RondoPak Inc., as regards sales, service and packaging development will be coordinated. Dr Markus Staub will continue to manage the successful business of Rondo AG with the targeted aim of expanding the area of packaging development and folding carton production to also include smaller lot sizes. Working directly for Dr Staub will be Andreas Endlich, former head of sales for Rondo AG, who has been appointed president of Rondo-Pak Inc. Medipak today. It is not necessarily a unified or close-knit Group, but these are companies which serve one joint, large and growing market. And they have company executives who – together with the management of Körber Medipak – all follow the same auspicious principle: Together we are strong. Good collaboration leads to competitive solutions, beginning with a packaging development from Dividella or Rondo, a blister line from MediSeal and a connected wallet packaging line from Dividella. For smaller lot sizes, Rondo set up a Center for Small Lots in 2003 that offers customers faster delivery of smaller volumes of packaging materials. This is a service that the industry is only too glad to utilize. Since mid-2005, demand has increased once again and the order situation for Körber Medipak has improved considerably. During our visit to Medi Seal in Schloss Holte both the assembly hall and the order books were well filled. That has not always been the case in the past. GERHARD BREU SAYS, “Körber’s take-over was a blessing for us because the Group pursues a policy of long-term orientation and development. That is in line with the expectations of our industry. We are the only complete systems provider for pharmaceutical packaging solutions – from packaging development as well as the supply of packaging materials and a broad spectrum of machines for all applications. And finally: We have done our homework and it has led to an improvement in results. We are on the right strategic course.” In the near future, Körber Medipak is aiming towards further organic growth. That entails generating bigger market shares. The investments in the Czech Republic and in the US were made with this target in mind. External growth, for example the acquisition of a company, is another course of action, if and when an opportunity arises and if the company in question is suited to Körber Medipak. Growth areas are biotechnology, and while the US market for blister

DIVIDELLA. With its NeoTop-packaging lines, the company is able to cover the whole performance spectrum

RONDO. The international pharmaceutical industry relies on these packages

solutions has slowed down somewhat, the demand in the European market – especially the new EU member states – and Southeast and Eastern Europe has increased considerably. But sales successes do not happen automatically. “We have strengthened our sales organization,” says Gerhard Breu. MediSeal and Dividella have joint representative offices in the US, France and England. Vigorous sales activities in Brazil – using local sales representatives and those fluent in the language – have led to a

good order situation in a country that has long been uncharted territory on Körber Medipak’s map. “We have identified several major customers, where we saw a potential and we worked these contacts intensively because we were confident in our performance capability. That is now having a beneficial effect,” says Gerhard Breu. The main markets of the US and Europe will maintain their significance in the foreseeable future. But what about China? Gerhard Breu says, “China is an important market. China tends to manufacture its own machines for the lower performance segment. Currently, the inquiries received concern only high technology. But we refuse to neglect our markets in Europe and the USA, which together cover some 80 percent, and Japan, which makes up 10 percent, in favor of the Chinese market. Having said that, we will continue to expand our presence and activities there.” THREE COMPANIES, FIVE LOCATIONS, as well as sales and service activities on a global scale – how is the collaboration at Körber Medipak organized? What corporate philosophy does the CEO, Gerhard Breu, represent? “In principle, the entrepreneurial responsibility lies with the company’s managers. I do not interfere with the operative business, but I do get together with the managing directors on a monthly basis for a management review. Together we develop and adopt the product and market strategy for our group. In individual markets, and with individual customers I have received a key-account responsibility, so that I get involved in negotiations – usually at the customer’s request. That also gives me insight into the internal workings and developments within our companies, right down to what happens at the workbench. That is very important to me.”

VISIT TO THE NEW PLANT. Guido Greiter, Rondo AG, Dr Werner Redeker, Pascal Wirth, architect, Matthias Lüscher, Rondo AG (from left) at the Rondo plant in Ejpovice

Rondo obaly Fit for new growth
There were smiles all around at the official opening in early September: Rondo’s Managing Director Dr Markus Staub, explained that, “this plant has enabled us to considerably increase our production capacity and allowed us undertake an important step in our expansion towards the Czech Republic to enable us to better develop not only the Czech market but the market for the whole of Eastern Europe.” The guests, among them customers, business partners as well as Dr Werner Redeker, Chairman of the Board of Directors of the Körber AG, his colleague on the board, Detlev Terboven and Körber Medipak’s CEO Gerhard Breu were able to see the efficiency and above all the quality of the new production site for themselves. Representatives from the local administration, construction engineers, architects as well as the previous owner of the site were also invited. The message clearly came across: Rondo obaly in Ejpovice manufactures standard folding cartons just as reliably and quickly as the company’s main plant in Allschwil, Switzerland, – and in compliance with the strictest safety regulations. The works manager, Jörg Oswald, and his team of 20 specialists possess the necessary expertise to manufacture high-grade packaging materials. While the Swiss-based company will focus more strongly on the manufacture of specialized products, such as NeoWallets and BoxWallet packaging, Rondo obaly will provide the market with standard folding cartons. Rondo had been desperate for production to finally commence in Ejpovice as the plant in Allschwil had been working at the limits of capacity for months in order to meet the demands of the pharmaceutical industry. When he addressed the customers, Rondo’s Managing Director Markus Staub underlined Rondo obaly’s unique selling proposition when he said, “Based on our experience as an exhibitor and as visitors to many different Eastern European trade fairs, our plant will be the first in the Eastern European region to produce pharmaceutical folding cartons in accordance with the benchmark criteria of the international pharmaceutical industry.” During his tour of the plant, Werner Redeker was impressed with this latest production site. “I am certain that Rondo obaly will deliver the first orders on hand in the customary Rondo quality. They will be quick to win the trust and confidence of the customers, and they will certainly grow thanks to our experienced and highly motivated team.” The plant is well primed for growth. The new works hall offers enough available space, and even the factory premises are sufficiently large to house possible extensions.

MANAGEMENT AND MEETINGS 20_21

HAUNI HUNGARIA. Hauni Primary-Managing Director Wolfgang Benz explains the technology behind tobacco processing. Attentive audience: Gerhard Breu, Dr Werner Redeker, Guido Dellagnelo, Bernd Naumann, Kevin Widder, Gustel Baumert and Adrian Stalder (from left to right)

The sights are firmly set on 2010
The executive board, as well as management and managing directors from the divisions and individual companies recently spent two days in Pécs, Hungary, at the “Körber Management Conference 2006.” Their main topics were an assessment of our current position, the future of the Körber Group and the strategy for 2010.
The choice of venue for the Körber Management Conference 2006 was a wise one. Pécs, a city of some 175,000 inhabitants located in the South-West of Hungary, is the center of a flourishing economic region. It is also the site of Hauni Hungaria, a company that has recorded tremendous growth rates in the twelve years of its membership in the Tobacco Division and the Körber Group. Downtown Pécs, with its fusion of Hungarian, German, Turkish, Serb and Croatian influences, is one of the key cultural centers in the country. The city, located on the Southern slopes of the Mecsek mountain range, offers many examples of beautiful architecture. In 2010, when the Körber group will have reached the finishing straight of the strategy it recently adopted, the city of Pécs will also have spruced itself up as a “European Cultural Capital.” Pécs and Hauni Hungaria – together they offered an inspiring ambience for the conference members who agreed to set very ambitious strategic targets for the Group and its business areas over the next four years. The Chairman of the Board, Dr Werner Redeker, opened the conference with a brief assessment of past achievements. During 2005, overall a very successful year, the Körber Group managed to achieve virtually all of the strategic

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Group targets it had agreed upon five years earlier – despite several farreaching cyclical setbacks. The Tobacco Division contributed the largest share of the profits to the Group’s success with its very good results, as was reported in the 2006 spring edition of KörberWorld. Our three Group divisions continue to maintain their leading positions on the market. This, however, cannot be equated with steady satisfactory sales and results. In light of their unsatisfactory results, additional efforts are required in the Paper, Tissue and Absorbent Hygiene Division as well as the Machine Tool Division to achieve the strategic performance targets. The formulation of our Group and Division strategies 2010 was preceded by thorough analysis and extensive and time-consuming discussions at the board and management level. It is relatively easy to forecast the development of the markets, the needs of our customers as well as the competitive situation, but it is far harder to foresee influencing factors on the global economy and political developments. The past five business years have confirmed this. Redeker highlighted four determining factors of our strategic orientation up until the year 2010: • We want to achieve sustainable profitable growth. • We want to maintain our financial independence. • We are looking to expand into new business fields and develop new business ideas. • We want to intensify interdivisional and inter-company cooperation. As has been reported previously, the consolidated sales are to increase to EUR 2 billion by the year 2010. That is equivalent to a rise of 33 percent over current sales. In order to achieve these high increases, it will be necessary to implement organic growth. In the case of our three divisions, that can only be achieved by successfully crowding-out the competition. Each division must substantially increase its market shares – through new products or product extensions and through the upgrading of services. Another contributing factor towards achieving the 2010 sales targets is exter-

nal growth through further acquisitions. The Group’s capital resources allow us to purchase additional shares through our own resources and without surrendering our independence. Redeker said, “By 2010 we should have achieved at least EUR 200 million in internal growth. That is a very ambitious target considering we are dealing with stagnating or slow-growth markets.” The targeted and predetermined profit margin of ten percent for the Group and the divisions is a very good result for the international engineering business. The same applies to the return on capital employed (ROCE) that must be maintained at its current high level of 25 percent. “We have achieved these high rates of return in the past and will need this

earnings potential in the future for we are unwilling to accept cutbacks with regard to investments that secure our future, such as in fixed assets as well as in research and development, irrespective of economic setbacks,” said Redeker. Redeker’s deputy, Chairman of Finances, Detlev Terboven, confirmed the success of the year 2005 with the record figures in receipt of orders, sales and results. He did, however, put this into perspective in light of the Group’s development in the current year. “Given a sales increase of nine percent compared to 2004, our Group’s results only increased by three percent. That is not enough,” he warned. This was a development that had to be stopped or reversed. Excluding the acquisitions, the Group recorded declining sales over the course

PRECISION. Processing centers at Hauni Hungaria meet the highest quality standards for cigarette production lines, as Katalin Otott Kovács, Dr Volker Bartelt, Detlev Terboven, Martin Weickenmeier and Richard Bauer (from left to right) were able to see for themselves

of the years since 2001. Should such a trend continue then recurring restructuring measures would become inevitable. Addressing the conference members, Detlev Terboven reiterated the importance of the terms “trend” and “reliability.” While the global economy sent out positive signals in the current business year of 2006, our divisions – with the exception of the Tobacco Division – have

MAGNIFICENT BUILDINGS IN PECS. The downtown area in this southern Hungarian city is a principal magnet for visitors from all over the world. During the Körber Management Conference this square was the focal point of a ten-day cultural festival

reported an increase in the receipt of orders. However, the other divisions cannot compensate for the declining results in the Tobacco Division. This year will be marked by a continuing imbalance between the share in the Group’s sales and the respective share of the results between the Tobacco Division and the other divisions and business areas. Terboven said, “We must do everything in our power to achieve internal growth rates of at least two to three percent per year.” That will not be possible during 2006 as several areas were forced to reduce their planning data. This prompted Detlev Terboven to voice the demand for more reliability with regard to projections. “We can no longer afford the negative deviation from our planning data, particularly as regards performance. From 2007 onwards we must ensure that our results and our ROCE are increased, that our internal growth is stimulated and we must do all of this on the basis of considerably improved sales and results plans.” TOBACCO DIVISION. The good results recorded by the Tobacco Division in 2005

were due to the successful market launch of many innovative product developments. The Tobacco Division’s CEO Richard Bauer, however, refuses to be blinded by this success, for as he said, “our division remains lodged in a difficult environment. It is a challenging task to achieve profitable growth in a stagnating market.” Richard Bauer explained that competition was increasing, particularly with regard to Hauni’s core business. A great challenge would therefore be the consolidation and expansion of the Tobacco Division's leading position on the market. Growing markets were to be found in Asia, and China in particular, where Hauni was and still is the preferred supplier of production technology. In the future, the mergers process on the customers’ side will continue while the number of cigarette production plants will drop from 700 to 550. Legal requirements concerning smoking and advertising bans, as well as further tax increases will have a negative effect on the climate of consumption. This holds not just risks but also opportunities for the Tobacco Division. The tobacco industry is developing new cigarettes with less harmful substances, increasing the need for new tobacco

processing and filter technologies. This is the starting point for Hauni. “We will be quicker to launch innovations. We want to achieve sales growth by, amongst others, an improved interconnection of products, service and engineering,” said Richard Bauer, setting the course. Perfect service is becoming increasingly important for the customer, and this is where he sees great potential – not only for the Tobacco Division, but for all of the Group’s business areas. Apart from enhancing or developing new products and service activities, the division’s main focus is on cost-strategic measures: Reduction of development costs, consistent compliance with order fulfillment to improve delivery services, further exploitation of location cost advantages. PAPER, TISSUE AND ABSORBENT HYGIENE DIVISION. The Paper, Tissue and Absorbent Hygiene Division fell far wide of the mark when it came to targeted sales and returns in 2005. This was due to a massive slump in the market for paper and a drop in results in the tissue field

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due to increased competition. Paper consumption has risen only marginally on a global scale; the use of envelopes is stagnating. The demand for machines remains at a low level due to overcapacities. And while the tissue area has recorded an increased willingness to invest on the part of the industry, the competition has not led to a rise in total investment volume. In light of this, Körber PaperLink’s CEO Martin Weickenmeier announced the obvious. “We must first become profitable and then continue to grow organically, as well as – if possible – extend our product portfolio through acquisitions.” The division continues to hold the technological market leadership, particularly with the new tissue processing lines and in the paper sector with the folio-size sheeter as well as the packaging lines from KPL Packaging. On the strength of its existing high market shares the division has seen hardly any growth in the area of cut size, envelope or tissue rolls, and is therefore launching into neighboring markets with new products – for folio size sheeting, for folded tissue products. The same goes for Winkler+Dünnebier with its security printing machines. The guideline for the coming years is full concentration on the traditional markets and at the same time powerful expansion of the capacities in the largest growth market – Asia. Weickenmeier said, “Körber Engineering Shanghai has enabled us to become a highly recognized European supplier with production sites in China in only a few years. As a result we are meeting the demands of the market for “local content,” locally manufactured products.” These are uncomplicated, easy-to-operate machines that are geared towards the Chinese market. MACHINE TOOL DIVISION. Following comprehensive restructuring measures, which KörberWorld reported on in detail, the Machine Tool Division was still unable to achieve a satisfactory

By 2010 Schleifring will also be pursuing a cost strategy – improvement of processes, reduction in material costs through strategic purchasing, expansion of the location in Kurim – as well as a growth strategy – improved market position in the customer sector, machines with a comprehensive service offer. “We are a strong group and we are fit for global competition. We must, however, turn our existing potential to our advantage,” said Gregor Rüth addressing his managing directors. PHARMACEUTICAL PACKAGING SYSTEMS. The pharmaceutical market is continuing to grow steadily. Although Rondo AG has registered a high demand for packaging materials the investments in machinery have remained far below expectations. Both Dividella an MediSeal have suffered from these circumstances. Overall, the profit margin in this area remained unsatisfactory in 2005. An increase in the receipt of orders has led to the conclusion that Körber Medipak is achieving a higher market acceptance with its business model – packaging development, materials and machines from one supplier. Following the establishment of Rondo obaly in the Czech Republic and the take-over of Rondo-Pak in the USA, Rondo will undertake a marked expansion of its position in both markets. Dividella and MediSeal will improve their market positions in the packaging machinery business through the development of new systems concepts as well as flexible and cost-efficient machines. Körber Medipak’s strategic target is to achieve above-average growth compared to the pharmaceutical market and to clearly improve its profitability. In addition, the aim is to expand the business field through further acquisitions. The Chairman of the Board of Directors, Redeker, took leave of the conference members with a demand. He said, “Get to work and seize the opportunity to make your contribution towards achieving our goals.”

SAY IT WITH FLOWERS. Körber’s chairman Dr Werner Redeker thanked Hauni Hungaria’s Managing Director Ildikó Jakabucz for the successful organization on site. Detlev Terboven shared in voicing his appreciation annual return in 2005. With its acquisition of the Walter Group, the division did, however, succeed in extending its position as market leader with a 16-percent-share in the market. Schleifring’s CEO Gregor Rüth, said, “Even in the long term, grinding will not be replaceable by other technologies.” The grinding experts are forecasting a continuous growth rate of circa 1.5 percent per annum over the next years. The automobile, turbine and tool industries, in particular, show promise of considerable growth rates. Relocating production sites to the growth regions of Asia and Eastern Europe has prompted Körber Schleifring to follow this trend and further expand its locations in the Czech Republic and China. The independent service business is developing in a positive way and is to be reinforced by the addition of further service offers. Körber Schleifring will combine its resources per technological area in order to achieve a more efficient cooperation – for example in the realization of machine platforms and also in the reassessment of the product portfolio.

Springboard to the East
The Walter Group has vastly expanded its plant in the Czech town of Kurim by building a new Demo and Logistics Center. Tübingen in South Germany, however, will remain the headquarters for the manufacturer of tool grinding and measuring machines.
The Walter Group, a manufacturer of tool grinding and measuring machines based in Tübingen in southern Germany, has expanded its production site in Kurim. As of mid-2006, the Czech town has not only become the production and assembly site for all machines, the logistics center has also been relocated from Tübingen to Kurim. The new demo center measuring 800 square meters can now be used for presentations of the entire machine range to Eastern European customers. The Schleifring company Walter, formerly part of Tübingen-based Walter AG and a member of the Körber Group since 2004, relocated the final assembly of its serial machines as well as the entire logistics department, including warehousing, incoming goods and inspection, packaging and shipping to the site in Kurim following the completion of the building. Kurim is now the sales center for all Eastern European countries. Relocation of all these activities from Tübingen to Kurim went off without a hitch and did not entail any staff cuts in Tübingen. Walter’s Managing Director Heinz Poklekowski said, “The logistics center in Tübingen was based at the headquarters of Walter AG, and we had access to their services. None of our employees were affected by the relocation.” The city by the Neckar river remains home to the headquarters of Walter as well as the central product development and the central administration departments, the Western European sales and service departments, the orders center, testing center, prototype assembly and the pilot production with a total of some 140 employees. However, these members of staff will be forced to relocate next year. Walter Maschinenbau GmbH has recently begun constructing a new production site and office building in the vicinity, in Tübingen’s industrial park. The investment costs are running at EUR 5.7 million. Relocation into the new company-owned premises is set for the middle of next year. The spatial separation of the two companies is a clear indicator for the public and for the customers that the Schleifring subsidiary Walter is no longer linked to Walter AG. This rules out any possibility of the two companies being mistaken for one another.

DIVERSE PROGRAM. 45 employees from Walter in Tübingen and from the development center for measuring machines based in Garbsen near Hanover attended the official opening of the new production and assembly site in the Czech town of Kurim. They flew to Vienna, and traveled to Kurim by bus – taking in a wine tasting in Austria on the way. During a tour of the production site and a sightseeing trip through the Czech town of Brünn, the guests from Tübingen received a first impression of the plant and the people, their colleagues, with whom they work every day.

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Growth through customer proximity
Körber Engineering Shanghai’s success story goes on. The company is expanding and has established itself on the Chinese market as a “local company” with global competence.
We must go where our customers are located, where new growth markets are developing – such as China, in particular. The Paper, Tissue and Absorbent Hygiene Division has met this need with a meticulous persistence that has already yielded satisfactory results. Körber Engineering Shanghai (KES), the production site that opened four years ago in the Chinese free trade zone of Waigaoqiao, has already considerably improved its position. Today, KES manufactures and assembles paper and tissue converting lines for the Chinese market. The company has already outgrown its 3000-square-meter shop floor and has difficulties dealing with the extremely high volume of orders. As a result, KES is currently expanding and has rented an additional 1400 square meters of space quite near to its location. The Chinese market has a strong demand for special machines incorporating simple technology that is easy to operate, requires very little maintenance and can be purchased at a competitive price. KES has the answer to these demands: Concept X. This machine concept was first introduced at the major trade fair Tissue World Asia in 2004 at which time it was also demonstrated to the customers at an Open House on the KES shop floor. Since that time, these entry-level machines – manufactured, assembled and sold by KES – have become a household name for Chinese customers. The launch of this project goes back even further: In 2002, Körber PaperLink made its initial entry into the Chinese market with the tissue machine X1, followed by the high-capacity X2 in 2003. Following the launch of Concept X, the SUCCESS IN THE FAR EAST. KES-Managing Director Mario Fazzi is pleased about the rising number of employees and the increase in machine sales. Fazzi anticipates the sale of nearly 140 machines in 2007

MADE IN CHINA. Chinese employees manufacture tissue-converting lines on site – that is how Körber Engineering Shanghai became a respected supplier in the Middle Kingdom

company introduced the XSF1 folio size sheeter in October 2005. November 2006 will see the next generation of KES tissue machines presented to customers at the trade show Tissue World China: the X8 is a machine that can convert more than twice as much material from the reel as the X3, namely 450 meters per minute. With its Concept X product line Körber PaperLink specifically addresses Chinese demands, as evidenced by the growing sales figures. While 2004 saw the delivery of 15 machines, this figure rose to 45 in the current year. Sales projections for 2007 are anticipating the sales of 140 machines. “That proves that our concept was right,” says Managing Director Mario Fazzi. The number of machines sold has also resulted in an increase in the number of employees – staff numbers rose from 68 to 115 between 2005 and 2006. BUT THERE IS MORE TO KES than just the in-plant production of the Concept X product range. “We are also promoting the sale of those machines from the Körber PaperLink Group that are assembled in Europe and the US,” says Mario Fazzi. 13 sales and marketing experts from KES are currently busy working the Chinese market and supporting the sales activities of the entire group from the paper and tissue area. They offer customers the best solution for their specific needs – that could be a product from the Concept X series or any other machine from the wide product range from other KPL companies. That calls for close cooperation between KES and the other divisional companies. “One of our main tasks,” says Mario Fazzi.

This success is reflected in the development of sales at KES that rose from EUR 900,000 in 2003 and EUR 6.5 million in 2005 to some EUR 12.5 million this year. Mario Fazzi learned from a major customer why KES machines were so quickly and widely accepted on the Chinese market. “We like to purchase machines from KES because this is an established European manufacturer with a production, sales and service base here in China.” “We want to be recognized as a local company,” says Mario Fazzi – most of the employees are Chinese, speak the same language as the customers and possess the same cultural background. “Without them, without their ideas and their hard work, we would not have got KES up and running in the first place,” says Fazzi, praising his staff. “Our decision in favor of China was a decision for the largest growth market in

the world. We are not operating here in order to cut down on costs but primarily to be close to our customers. Furthermore, a growing number of Chinese customers are demanding ‘local content’, meaning domestic value added for imported machines. Our activities – production, service, sales and consultancy – should and must be a part of the national economic business cycle,” said KPL’s CEO Martin Weickenmeier four years ago on the occasion of the grand opening of KES. And today, Mario Fazzi adds, “KES was never conceived as being merely a relocation of our production site from Europe and America to China, but rather as an extension. We are here to develop and open up a new market for our Group – with new customers and with added potential.”

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With music and magic
The Körber family celebrated four milestone birthdays in 2006: The Tobacco Division marked the 60th birthday of the German Hauni company, EWAG in Switzerland also celebrated its 60th anniversary, in Italy Fabio Perini organized an impressive party in honor of its 40th birthday – and Studer Schaudt will celebrate its centennial this month.
High spirits, samba, and plenty of sunshine. The German companies belonging to the Tobacco Division celebrated their company’s 60th anniversary with a terrific summer party. More than 1000 employees from Hauni, Baltic Metall, Hauni Primary and Universelle came to the beautifully decorated “Gussplatz” on the factory premises in Hamburg-Bergedorf to mark Hauni’s birthday in the traditional way – with plenty of good food. Apart from a barbeque, suckling-pig or scampi kebabs there was cool beer or coke on the rocks to quench everyone’s thirst on this warm summer afternoon. There was plenty of time to chat with colleagues at the bar or at the picnic tables in the pavilion – and in the evening many a Hauni employee put on a very good show on the dance floor, jiving away to the rousing music from the live band, the “Rock’n’ Poppers.” Numerous sporting activities had also been organized: A nine-meter climbing wall, the “Eiger” demanded much strength and skill from even the most active hobby climber. Spurred on by the cheerleaders from Hamburg’s football team “Blue Devils,” many colleagues put in a top-level sporting performance: Whether it was at the XXLfootball table for 22 players, at the goal scoring wall which also measured the speed of a shot or at the golf simulator. The undisputed sporting highlight was the final spurt by 21 Hauni cyclists who crossed the finishing line after cycling from Dresden to Hamburg in only two days in memory of Kurt A. Körber. As director of the “Dresdner Universelle,” Körber founded the Hanseatische Universelle – Hauni – after the

ON THE ROPES AT THE BUFFET. While some visitors were still enjoying the plentiful food, Hauni’s anniversary inspired some employees to try their hand at climbing

Second World War. After cycling 400 kilometers, the cyclists turned the final corner onto Hauni’s main street where they were treated to an enthusiastic welcome from their colleagues. There seems to be no end to the sporting activities at Hauni. Over the course of this year some twenty sports groups within the company, numbering more than 700 active members, have presented themselves to their fellow employees, their families as well as former Hauni employees under the motto “Fit for the future.” The sporting activities on offer range from courses in Nordic walking to soccer, volleyball or squash tournaments, golf and various fitness programs. These sporting events at Hauni are supplemented by various health initiatives organized by the plant medical service and the year-round choice of nutritious meals in Hauni’s staff canteen in Bergedorf. FUN AND JOY: these were the key words for Perini’s Family Day, the event organized by the company’s management to celebrate the 40th anniversary of Fabio Perini S.p.A. It had been designed so as to bring together all employees working at the Lucca premises and their families. For the event the company transformed itself into a veritable “amusement park,” where snacks and fun & games areas made for an entertaining day spent in total relaxation. The tour of the company’s premises was made even more interesting and fun by the many games and shows for the enjoyment of young and old alike: sports games, magicians’ shows and clowns made this an unforgettable event. Certainly a party worthy of our company, and one which has allowed our families to become better acquainted with Fabio Perini S.p.A.: a company that has over the course of the years grown with drive and determination, expanding its activities throughout the world, going from a small family enterprise to a consolidated entity, a leader in the global tissue market. A heartfelt “Happy Birthday” to Fabio Perini S.p.A. “BACK TO THE FUTURE” – a proud look back at a company history spanning 60 successful years. At the same time this is a self-confident look ahead. It was under

STRONG VOICES. The Swiss Gospel formation “shelomith” ensured an excellent atmosphere with their classical and modern gospel songs at the EWAG anniversary party

this ambiguous motto that the Schleifring company Ewag, based in Etziken, Switzerland, celebrated its birthday. The families of the employees had been invited to attend a tour of the plant on the occasion of this anniversary, and in the evening there was a merry party for the entire Ewag staff. The Gospel group “shelomith” got all the visitors moving, and a comic magician not only amazed everyone with his clever tricks but also had the audience rolling in the aisles with his infectious sense of humor. The art of Ewag’s grinding specialists, however, is no magic trick, but rather precision work. That is why the company has such a good reputation amongst its customers in over 40 countries around the world. Nowadays, some 160 employees develop, manufacture and sell machinery for grinding machine tools for the clock-and watch making, dental, electrical, automobile and aircraft industries. Diligence, precision and enthusiasm for their work are what characterized the company founders. What began in a very confined space in a garage in the town of Zuchwil, has grown to a renowned machine tool company over the past 60 years; a company that has been a member of the Körber Group since 2000 and that has become a market leader in its business area together with the Walter Group.

HIGH ART. With sleight of hand and jokes, the comic magician quickly scored by making everyone laugh

Pumped on power
Premiere for the Körber Group. For the first time, the electricity for several of the Group’s companies was purchased jointly. Apart from sound market knowledge, stock market psychology also played an important role.

The atmosphere was positively charged with tension. Intense preparations had been undertaken by the team assigned to assess demand before a list of possible bidders was put together and the tender procedure organized. Minute-by-minute negotiations on the telephone finally led to the acceptance of a bid for a Group-wide electricity purchase. The strategic purchase by Hauni Maschinenbau AG generated an enormous procurement success for the participating companies in the Körber Group. “90 percent of the stock market consists of psychology,” is one of the many pearls of wisdom from the famous stock market expert and columnist André Kostolany: Observe the market, interpret trends, and trade at the right time. These were all factors that the team of experts from the strategic purchasing department at Hauni Maschinenbau AG took into consideration. The team had been authorized by the participating Group companies to negotiate

MANAGEMENT AND MEETINGS 30_31

on their behalf. The search for a new electricity supplier for the Körber companies took the team all over Germany. This had become necessary because the old contract with the previous supplier had been terminated effective June 30, 2006. Not an easy undertaking, especially in light of the fact that there are more than 1,100 electricity providers in Germany: from the smallest regional public utility company to major international Groups such as E.ON or Vattenfall. The project was scheduled to start in March 2006, leaving only a few months to complete the task. Initially, Olaf Ohrt calculated the precise power requirements of the individual companies. On the basis of the current consumption rate, he determined a total annual volume of nearly 25 million kilowatt hours, similar to the power consumption of some 4,000 households. AFTER CAREFUL MARKET ANALYSIS, the circle of potential providers was narrowed down to ten electricity suppliers who were sent the tender documents and a precise submission deadline. “The circle of bidders covered the entire breadth of the market,” said Olaf Ohrt. “During our market analysis we discovered that regional suppliers were also able to offer competitive prices.” Following a careful assessment of all bids tendered by the electricity companies, the project entered into its final and fiercely contested phase. The selected providers were

invited to price negotiations in mid-May. At the same time, Olf Ohrt’s negotiation team kept a close watch on the electricity prices at the European Energy Exchange. What then followed, quickly developed into a real thriller. “In April, the electricity rates fell drastically,” says Andreas Winter, purchasing coordinator at Hauni, describing the situation. “Naturally, we took advantage of this extremely positive development and immediately began negotiating prices.” The round of tenders that had been arranged previously was cancelled, and now a bidding contest began. In 10-minute cycles the negotiation team conducted talks on the telephone with the selected electricity suppliers – while the price continued to drop. Until May 5. And at that point, Kostolany’s motto became reality. The purchasing strategists accepted the tender at just the “right psychological time”: Prices had reached their lowest point (see graphics) and thus they managed to procure the best purchase price for the participating Körber companies. The supply contract was signed for a period of two years, after which time the game will begin anew. When that time comes, those German Körber companies who were unwilling to participate in this round, or who were contractually bound elsewhere, can join in. APART FROM THE FAVORABLE PRICING for electricity, the Körber companies benefit from the added bonus of being able to use the provider’s on-line portal that is free of charge for major customers. The current consumption of the individual locations can be checked at any time on the Internet. As an additional success during negotiations, the team also managed to obtain free energy consultations that could pinpoint possible cost-cutting potential in consumption. This purchasing success highlights the importance of using synergies within the Körber Group. Olaf Ohrt will benefit from the gained experience to support the Körber Group in the future when dealing with joint purchasing projects. Currently, an intensive exchange of experiences is taking place with Hauni Hungaria and Baltic Metalltechnik. Ingo Briechel, Hauni Maschinenbau AG

PRICEINDEX OF EEX ENERGY MARKET OVER 12 MONTHS

IT’S EASY WHEN YOU KNOW HOW. Buy when the purchase price is at its lowest. Hauni’s strategists under project director Olaf Ohrt (left) acted accordingly – just as the graph shows

32_33 TRADE FAIRS AND MACHINES

FlexiCut Kugler-Womako makes millionaires
FlexiCut, the cut size sheeter manufactured by the Nürtingen-based Körber PaperLink company Kugler-Womako, can produce up to half a million lottery tickets per hour. All one needs to do is to mark the right numbers and play the Spanish lottery. The FlexiCut has been installed at the site of a Spanish customer. Admittedly, the promise of millions is far-fetched but the FlexiCut has managed to corner a market niche. It is the perfect machine for the precision cutting of short and small size printed products in a format of 160 x 100 mm and it enables the complete production of lottery tickets, from the printed reel to the ready-cut, numbered and banded products on one machine: And it does all of this at high speed and with remarkable precision.

WELL INFORMED. At the in-house exhibition, experienced assemblers from Winkler+Dünnebier AG answered all the visitors’ questions

Winkler+Dünnebier Open to all
Winkler+Dünnebier opened its doors to visitors from all around the world – in-house exhibition at the specialists for envelope machines. At a recent open house, the machine manufacturers from Neuwied presented a newly developed reel profile cutting machine, used in-line with the flexo printing stand that is already on the market. This machine enables envelope producers to work more cost effectively and simultaneously improve printing quality. That is important to customers, because the business of multi-colored envelopes is booming as companies all over the world use them for direct-mail campaigns. The new machine prints paper webs that measure some 800 mm in width, cuts these into three or four pre-profiled webs, and winds them up into individual rolls at the rate of 400 meters per minute. Envelope machines then process these color-printed and precut rolls into envelopes. Sales manager Bernd Schaback knows why customers are flocking to Neuwied. He says, “Our customers are interested in our new developments because they allow them to save paper, increase their productivity, and operate a number of envelope machines simultaneously with just one leading-edge flexo printing machine.”

THE MACHINE OF FORTUNE. The FlexiCut specializes in processing small-sized printing products such as lottery coupons

Wie ein Weihnachtsgeschenk eingepackt mit einer großen roten Schleife stand sie auf dem Podium – die 200. EWAMATIC LINE des Schweizer Schleifring-Unternehmens EWAG AG. Wahrhaftig ein Grund zum Feiern. Mitarbeiter, Vertreter der Behörden, Kunden und Lieferanten Hauni mit. Die setting new standards with the manufacture of the new superheated steam dryer for South Korea A DRY BUSINESS. feierten Primary isÜbergabe der 200. EWAMATIC LINE an den italienischen Kunden TMD durch Geschäftsführer Dr. Thomas Boltshauser gilt als Meilenstein in der Erfolgsgeschichte der EWAG AG. Das Hauni Primary, which specializes in tobacco proSetting up this machine inside already existing buildings CNC-gesteuerte Produktionscessing equipment, is delivering eignet requires the assembly to be conducted in a precisely preschleifzentrum EWAMATIC LINE a complete dryer line zum Herstellen von hochpräzisen Werkdetermined sequence – at the same time the machine’s sich for stems to South Korea. Hauni Primary has the pilot plant in Schwarzenbek to Hartmetall, order. position must be secured through additional base frames. zeugen in den Materialenthank for this poly- The pilot plant is where the most important performance An international team under the management of Hauni kristallinem Diamant (PKD) und kubisch and quality criteria of the Bornitrid (PKBN). MaßgePrimary began assembly work in early June. The leaf stem polykristallinem process were successfully demonstrated using the customer’s own tobaccos and blends. line will be assembled and then commissioned in a multischneidert auf die individuellen Bedürfnisse shift operation. The operating schedule is extremely tight, der The constant procedural and einzigen Kunden können in einer design-engineered development of thisVielzahl von Schleif- novel combinaas the turnkey delivery of the plant to the customer has Aufspannung eine dryer as well as the und tion with other primary components make this plant been set for mid-December. Erodieroperationen mit integriertem taktilem highly flexible. The HDT is designed for the simultaneous Messen ausgeführt werden. Der sternförmige Trial assembly of the 15-meter high steel construction expansion and drying of sechs unabhängigen Schleifkopf mit bis zu cut lamina. At a throughput of with its main piping elements and cyclone took place at Spindeln lässt in der Werkzeugherstellung 4 tons per hour, the HDT is the most powerful steam Hauni Hungaria. It was well worth the effort, as it gave keine Wünsche offen. Seit 1999 baut dryer that Hauni Primary has ever manufactured for the new insights into the fast and precise installation of the EWAG die Präzisions-Werkzeugschleifmaprocessing of cut stems. The HDT will be ready for plant at the site of the customer. schine delivery this Von turnkey EWAMATIC. year. der ersten GeneraMichael Müncheberg, Hauni Maschinenbau AG tionParticularly large or rather 1999) ste(Lieferungen von 1993 bis unwieldy components hen as the heat exchanger have caused more suchebenfalls über 200 Maschinen weltweit transport im Einsatz. Das Konstruktionskonzept wird problems than usual. The leaf stem line is also equipped laufend den automatic feed system den with a fully Kundenbedürfnissen undincluding robot. Marktanforderungen angepasst.

Hauni Primary Success with hot steam

TRADE FAIRS AND MACHINES 34_35

Of cables, cranes and containers
“Backstage” at the METAV – A visit to the Machine Tool trade fair two days before the show’s opening. The jumble of people, materials and machines was little more than organized chaos.
The reporter thought chaos would reign supreme in the halls just two days prior to the opening of a trade fair: A hopeless jumble of cranes, trucks outside and in the halls, jammed access routes, booth builders and exhibitors on the verge of despair. The first surprise came when we arrived at hall 11 of the Düsseldorf trade fair: Absolute peace and quiet at Körber Schleifring’s booth. Ten men calmly sat around a makeshift table eating a late breakfast. Their faces were completely calm. A trade fair is not like the theater where premiere performances always seem jeopardized or even doomed to failure (and then always turn into huge successes). The people sitting here at the table are pros, who know what to do and whose every movement is so practiced they could do it in their sleep. They might stomp through the halffinished, cluttered Schleifring booth, dodging boxes and cables and metal parts, but they know that they are on schedule. It’s all a little overwhelming to the layman who sees that none of the machines have yet been connected and are far from being operational. So far, heavy trucks crowd around the empty spaces in front of the halls. Machines and machine components hang suspended from hooks attached to heavy cranes, and not only the trade fair booths but also the aisles and paths are jam-packed with machines and packaging materials. Hard to imagine that in just 48 hours visitors will be walking along these same aisles. Floors are being carpentered, carpets or parquet flooring is being installed, the machines

48 HOURS TO GO. The assemblers have little time to get the machines on the trade fair booth up and running. And before the shiny parquet flooring can be installed, heavy machinery has yet to be put in place at the 350 square meter booth

36_37 TRADE FAIRS AND MACHINES

have yet to be made operational, and the booth builder still has his hands full. Körber Schleifring’s marketing manager Peter Lütjens explains, “The real work begins long before the trade fair actually starts. As soon as a decision has been made as to the choice of exhibits, I design the layout and then begin working with our booth builder, a company we have trusted and relied upon for a long time. On location at the trade fair, the men construct the booth according to the designs, however we always leave room for improvisation due to changes at short notice.” Transport vehicles such as cranes

and forklift trucks are available on site but we have to plan and coordinate their availability to coincide with the delivery of the machines. It all sounds so simple, and it works several times a year and all over the world. The METAV booth features machines from all of the Group’s companies except for Walter and Ewag, the tool grinding machine manufacturers. It takes just one week for the seven assembly technicians from the companies and Peter Lütjens as the coordinator in charge to set up the 350-square meter booth.

The booth itself is no disposable product as is so often the case. Peter Lütjens explains. “We rent the booth. Buying the material and then scrapping it or putting it in storage after the fairs would be far too expensive.” And should Schleifring require special design elements, such as at the EMO in Hanover 2005 or even an entirely new design – “Then our booth builder can supply the materials certain in the knowledge that he can reuse the materials for us or for other stands in the future,” says Peter Lütjens. BUT IT WOULD BE UNUSUAL if the men from Schleifring did not have one or two stories to relate from their experience in building trade fair booths; stories that could best be described as “chaotic”. Just like the time when several Studer machines had to be assembled. A freight carrier had assigned the job of transporting the machines to a subcontractor. When the truck driver was forced to wait in line a little longer than expected due to the work being done for other exhibitors, he decided to while away the hours by going to a repair shop, but failed to mention this to the people at Schleifring. When it was finally their turn in line, they searched desperately for him, finally reached him on his cell phone and threatened to withdraw further contracts if he didn’t return to the hall posthaste. The contractor cancelled the repair work and rushed back to the trade fair site where he then spent hours standing idly by because someone from a neighboring booth had “jumped the line” and was blocking the aisle. “That lost us practically one whole day. But at the opening of the trade fair everything was optimally prepared – as always,” says Lütjens. In Milan, the Schleifring assembly crew was once forced to work until three in the morning because there weren’t enough truck-mounted cranes at the site causing tremendous delays in unloading the machinery from the trucks. Perhaps trade fairs are like the theater after all. When the audience finally enters the auditorium, “the curtain rises” and the performance begins. Two days after our visit, punctually at nine in the morning, the METAV 2006 in Düsseldorf opened its doors and the Körber Schleifring booth was spotlessly clean – neat as a pin.

TRADE FAIR PROS AMONG THEMSELVES. Peter Lütjens (left) and Wilhelm Franzbach, head of booth building company Systembau Spahn
As head of marketing, Peter Lütjens, age 56, is responsible for four to six international trade fairs a year at which the Schleifring Group is represented – among them the major machine tool shows EMO in Milan and Hanover, METAV in Düsseldorf, CIMT in Beijing, and the IMTS in Chicago. The graduate engineer has been in this business since 1994, although he joined Schleifring as early as 1981 when he worked as head of quality assurance and technical grinding commissioning at Blohm. He not only understands marketing but also knows grinding technology inside and out. As he is not only responsible for designing the Group’s trade show appearances but also for the public face, it is certainly an advantage that he not only understands communications and public relations but can also speak competently about Schleifring's products. “We want to further strengthen the brand name of Schleifring on the market,” says Peter Lütjens, describing his target. Successful trade fair appearances are the right means to achieve just that.

LIVELY INTEREST DESPITE WORLD CUP FEVER. Eight machines were presented at the Schleifring group stand, among them a nearly 10-meter centerless roller grinder

Successfully bucking the trend
Despite a clear drop in attendance, Schleifring was able to report a positive result from its participation at the METAV. The number of contacts, particularly with foreign visitors, remained surprisingly high.
Although the machine tool business is currently affected by a positive economic climate, attendance at trade shows dealing with manufac-turing technology in Europe has dropped compared to previous years. This applies both to exhibitors and visitors. The METAV, the international fair for manufacturing technology and automation organized by the VDW, the German Machine Tool Builders’ Association, and held in Düsseldorf from June 20 to 24, 2006, was also affected by the decline in attendance. The number of exhibitors dropped by seven percent to 925 and the number of visitors decreased by as much as some 20 percent to 47,500. This trade fair is geared towards customers from all industrial sectors, from the automobile industry to engineering, the aerospace -industry, electronics engineering, right up to medical technology. The visitors received detailed information on complete manufacturing and automation technology, on standard machinery as well as custom-built solutions for specific production tasks. The Schleifring Group was represented at a joint trade fair booth measuring 360 square meters, enough space for the eight grinding machines on display, which covered the entire bandwidth of surface and cylindrical grinding, from the smallest universal surface grinding machine up to the 10-meter long centerless roller grinders. The exhibits and the appealing booth design attracted lively interest among the trade show visitors, and as a result, Schleifring’s attendance figures were not affected by METAV’s overall 20 percent drop in attendance. The number of contacts virtually matched those of two years ago. Even the share of foreign visitors at the Schleifring booth was especially high at 15 percent. This was even more surprising considering that hotel capacity in Düsseldorf was strained to the limit due to the Soccer World Cup that took place at the same time and definitely cost the trade show many visitors. As had been anticipated, most of the foreign visitors came from Western Europe, mainly from the neighboring Benelux-countries. The excellent atmosphere generated by the World Cup was reflected at the Schleifring stand, and the high quality of discussions as well as the many precise requirements voiced by the visitors made for a very worthwhile trade show experience. Peter Lütjens, Körber Schleifring GmbH

The scene was definitely symbolic: Around midday on the second day of the trade fair, the crowds were packed in front of the Körber Medipak booth when the Chairman of the Supervisory Board of the Körber AG, Dr Eberhard Reuther, visited the stand and was so amazed that he asked, “Is there a special event taking place right now?” The answer, quite simply, was “No.” This is just the day-to-day reality of trade fair life for the employees of the Körber Medipak companies. The pharmaceutical industry received a new boost in 2006, and the packaging industry is reaping the benefits. The order book situation at the machine manufacturers

TRADE FAIR FEVER. Körber Medipak’s CEO Gerhard Breu and Körber AG-Supervisory Board chairman Eberhard Reuther

“We are market leaders”
At the ACHEMA 2006, Rondo, Dividella and MediSeal presented themselves at a joint trade fair booth. Innovative solutions have made Körber Medipak a technological leader.
Dividella and MediSeal is currently very satisfactory. Rondo is currently producing pharmaceutical packaging in serveral shifts and has nearly reached capacity level. The company is having difficulty meeting the customers’ demands. These were very good prerequisites for a good trade fair. But the economic upturn was just one side of the coin. Visitors to the trade fair in Frankfurt were particularly interested in the many technological innovations that distinguish Dividella’s and MediSeal’s products from those of the competition. MediSeal, for example, has its “Late Stage Customizing System” (LSC): It is a blister machine combined with a standalone cartoner that enables the sub-processes of blister packing, printing and cartoning to be carried out not in one fixed line but demand-oriented and flexibly, thus considerably shortening the entire process – a solution that has been well received by the market. A further new development from MediSeal is a packaging solution for pills with dimensional tolerance – packaging pills of different sizes without performing a format change in the machine. The magic word is “flexible feeding” – a process that offers the customer an attractive and cost-effective solution. AN ADDITIONAL HIGHLIGHT showcased at the trade fair was the new, ultra-sound sealing unit installed on a modern MediSeal LA-400 sachet machine. This machine is able to permeate the finest dust or liquid residues on the sealing surface, thus enabling the sachets to be sealed securely, even in difficult cases. Dividella presented its new entrysized model of the NeoTop 104 packaging machine for glass objects such as disposable syringes, vials or ampoules. This was the first time the machine had been shown in Europe. Dividella also showcased its NeoWallet packaging line that has already been successfully launched on the market. These userfriendly machines were specially designed to make it easier for patients with impaired motor functions to remove pills from the packs. Rondo informed its visitors about special applications such as Braille or holograms embossed on the packages and new solutions to apply security measures to pharmaceutical packaging thus enabling the detection of counterfeit products. Körber Medipak – a competent partner in the business of pharmaceutical packaging systems – this was the message to come out of the ACHEMA trade fair presentation. A message that the highly motivated team of employees at the trade fair also brought across to the many visitors. “We are the technological leader in our segment of the market,” said Gerhard Breu, chairman of the Körber Medipak Group full of self-confidence. In view of the products presented by the competition, he added, “We are also market leaders when it comes to flexibility of the packaging process and product safety. That is why I am confident that the ACHEMA trade fair will boost our business.”

TRADE FAIRS AND MACHINES 38_39

Innovative boost The PROKOS from Blohm
Fast, precise and economic grinding – that was the aim of the EU-research project AGNETA (advanced grinding of new aircraft engine material) that Blohm’s grinding experts embarked on in the year 2000 together with the Aachen University of Technology and a group of partners from the industry. Speed stroke grinding technology pursues and achieves two aims: A reduction of grinding time due to the high

Precision work The HELITRONIC MICRO from Walter
A MACHINE WITH CLASS. Blohm’s head of sales, Ralf Bleich (right) had much to say to visitors about the new PROKOS
stroke rate per time unit as well as an improvement in the grinding process by high tangential feed rates. Together, these two effects have improved the cost-effectiveness of grinding operations. At the major international trade fair IMTS held in Chicago in September this year, the PROKOS speed stroke grinding machine caught the eye of many a visitor to the Schleifring stand. The first five prototypes of the PROKOS are already being assembled by the Hamburg-based Blohm company – one customer even ordered three machines at once. They will be delivered this very year and in the spring of 2007. The PROKOS machine has given profile grinding a new technological impetus and is opening up further application fields for precision machining in the machine tool and turbine industry. This machine supplements the program forgrinding turbine blades and increases productivity by 20 to 80 percent depending on the machining task. It enables the cost-effective grinding of complex materials such as titanium base alloys from which compressor blades are manufactured. Up until now there have been only inadequate machining methods for these workpieces. Now a suitable solution has been presented. The material removal rate can be increased without causing any thermal damage to the workpiece material. So speed stroke grinding is ideally suited for the machining of thermally delicate workpieces as well as workpieces with critical profiles and a small section thickness. The particular challenge in this case was to manufacture this technically demanding and complex solution at a competitive price and to meet the market requirements of the aircraft industry but also the engineering industry in general. And that has been achieved. Over the past few years there has been an enormous upswing in the development of micro tools. Their application in the machining of the smallest components, such as micro injection molds or gears used in the electronics industry and in the medicinal and dental field, requires the highest level of precision manufacturing. Walter Maschinenbau GmbH has developed a new CNC tool grinding machine especially for these kinds of tools – the HELITRONIC MICRO for tool dimensions between 0.1 and 12.7 millimeters. The entire machine setup was calculated taking into account the driving dynamics to create the optimal prerequisites for grinding tools of even the smallest diametersizes. With its mineral cast machine bed and the linear and torque drive in all machine axes, it meets all the necessary requirements for the precise and economic machining of micro tools. The HELITRONIC MICRO features six CNCdriven machine axes and has been equipped with the latest control technology from the Fanuc 310i series. As the linear and torque drives are made up of only very few mechanical components, there is virtually no maintenance. A grinding spindle head that can be equipped with two or three grinding spindles alternatively guarantees a high degree of flexibility. This machine concept is supplemented by an integrated loading system with a six-armed articulated robot that can be used for many other tasks besides merely tool loading.

FIRST COME, FIRST SERVED. At the Asian Paper in Bangkok, the KPL booth was inundated with visitors. The XSF1 turned out to be a real crowd puller

From Bangkok to Birmingham
IPEX und Asian Paper represented two important dates in the trade fair calendar for 2006. For the first time, the Asian Paper was held in Bangkok and not in Singapore as in the previous seven years. Would it be worth participating was one of the questions most asked during the run-up to the trade fair.
In a word: Yes. The effort was worthwhile. The employees from E.C.H. Will, KES, KPL, KPL Far East, KPL Packaging, Kugler-Womako and Fabio Perini as well as the regional sales offices in Japan, Korea and Singapore reported more than 100 customer contacts, many of these with potential new customers. As had been expected, most of the visitors came from Thailand, but there were also numerous visitors from India and Indonesia. Werner Füssle, Managing Director KPL Far East, said, “We had very beneficial talks at the Asian Paper.” Mario Fazzi, Managing Director at Körber Engineering Shanghai, also voiced his satisfaction over the high number of customer contacts, saying, “Asian Paper has confirmed that the product portfolio we developed especially for the emerging markets has been very well received.” At the KPL booth visitors were shown the folio-size sheeter XFS1 and witnessed the premier appearance at an Asian trade fair of the punching machine ProPunch from Kugler-Womako. The

TRADE FAIRS AND MACHINES 40_41

ring-books that had been produced on the ProPunch and on a binding machine also sold well. The great interest shown by the visitors was an endorsement of the decision to integrate the ProPunch into the Concept X product portfolio as early as this year. This product range, manufactured by Körber Engineering Shanghai (KES) has been developed especially for the Asian market THERE WAS SOME VERY GOOD NEWS on the second day of the trade fair. “We sold a ProFile 948 file production line from Kugler-Womako to an Indonesian customer.” On the final day, a contract was finalized with a customer from Thailand for a folio-sized sheeter XSF1. Another two XFS1-machines as well as a leverarch file machine were sold after the trade fair. Five projects are currently being negotiated. Timed to coincide with the trade fair, KES and Fabio Perini Singapore organized a Concept X Open House that took

INTERNATIONAL INTEREST. The W+D 320, a basic machine for the production of envelopes was one of the systems on display in Birmingham

Körber PaperLink proved a success at IPEX 2006
Following their participation at the Asia Paper, the paper companies of the Körber PaperLink Group reviewed the situation after their appearance at the IPEX 2006 in Birmingham. E.C.H. Will, Kugler-Womako and Pemco were pleased with the enormous interest shown by visitors in their product range on show at the trade fair. Martin Brandt, Vice President of Sales & Marketing at E.C.H. Will, said, “More than 80 percent of the contacts made at the trade show were with new customers. The sales contracts realized during the exhibition greatly exceeded our expectations.” He particularly emphasized the strong international response to the fair. Dr Ulrich Maulhardt, Managing Director of Kugler-Womako, highlighted the enormous interest that was shown in the double wire-forming machine ProLoop that was first presented to the public at the IPEX. “Our customers have been won over by the substantially improved machine and the drastic reduction in tooling expenses.” Winkler+Dünnebier AG also rated their participation at the IPEX as a success, particularly given the fact that 70 percent of the visitors to their stand were new customers. Dietmar Kurz, Chairman of the Board of Executives, said, “There is a positive change in the types of visitors. Compared to 2002 more potential customers visited our stand.” W+D, world market leader for envelope and paper handkerchief machines, introduced the W+D 320, a newly developed basic machine for the envelope industry and was able to sell several machines exhibited at the trade fair.

place at the site of their customer Winner Paper. Customers from the Asian region as well as Africa took the opportunity to experience a live demonstration of an X3 tissue converting line with a XLS1 logsaw and an XP2 packaging machine for toilet and kitchen rolls. The “New Applied Technology Conference” at which Martin Brandt, head of sales and marketing at E.C.H. Will, held a lecture on the subject of “Economic Paper Converting in Developing Markets” was well attended and offered visitors an additional interesting platform. Mirjam M. Müller, Körber PaperLink Fabienne Seyd, KES

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Competition Writing history
On September 1, 2006, the German Federal President Horst Köhler issued invitations to submit entries for the 20th edition of the History Competition. This year’s topic is “With each other – against each other? Young and Old in History.” The Körber Foundation has been organizing this competition since 1973. It addresses children and young adults under the age of 21. Participants have the chance of winning prizes worth EUR 250,000. In his call for entries, Germany’s Federal President Horst Köhler said, “A look at history can teach us how young and old lived together in the past. This will allow us to find examples of cooperation as well as potential conflict situations and their solutions.” This year’s subject is highly topical: After all, the number of children living in Germany is decreasing constantly while the number of old people is increasing. This demographic shift gives rise to dramatic social consequences, forcing the need for reforms and putting the relationship between the generations to the test. Entries to the History Competition must analyze one aspect of German history. All entries must be submitted in German and must deal with a topic from the student’s own environment. The closing date for entries is February 28, 2007. More information is available at www.geschichtswettbewerb.de Katja Fausser, Körber Foundation

GOOD REASON TO CELEBRATE. 300 guests celebrated the tenth anniversary of the publishing house along with the Foundation’s chairman Christian Wriedt and Susanne Kutz

Edition Körber-Stiftung Tenth anniversary
Books can act as a stimulant: They prompt people to think; they invite discussion and they encourage readers to act. Ten years ago, in 1996, Susanne Kutz was so firm in her belief that she persuaded the board of directors of the Körber Foundation to found the edition Körber-Stiftung. With its publications, the publishing house has since taken an active part in debates surrounding the future of our society. Topics that capture the spirit of the age, track down personal histories and motivate people to get involved with society: in nonfiction and reference books on politics and society, learning and teaching, in literary essays and biographies as well as richly illustrated photography and drama books. The multifaceted program of the edition Körber-Stiftung has attracted renowned authors and publishers from many countries of the world. The publications do well on the market. Independent publishing representatives present these books to bookstores all over Germany. Among the bestsellers is the bibliophilic volume by the Director of Hamburg’s Thalia Theater, Ulrich Khuon, entitled “Beruf Schauspieler” (Career: Actor) who gives an inspiring account of his life on and behind stage. Celebrations to mark ten successful years in publishing took place at the new KörberForum in the summer – the 300 invited guests included many colleagues from the publishing trade, authors, booksellers and friends of the Körber Foundation who were entertained with readings anddancing until long after midnight. The international publishing highlight of the year took place only recently: the Frankfurt Book Fair. This year, the edi-tion Körber-Stiftung again issued invitations to the book presentation at the trade fair’s reading tent. In a discussion with Ruth Dickhoven, an expert on Russian affairs, the historian Irina Scherbakova presented her edition “Unruhige Zeiten” (Troubled Times) and read poignant passages from Russian and German biograUlrike Fritzsching, Körber Foundation phies.

ERSTER EINDRUCK. Die nahmen an einer Hau zukünftigen Studienob

Studer The Art of Management
+ + + The two young men seem baffled as they stand gazing at the picture. Yes, my friends, that is what is known as modern art – and it is not something that reveals itself easily. This painting could just as well be exhibited in the Museum of Modern Art, but instead the masterpiece hangs right here at the headquarters of the Swiss grinding machine company Studer. “Can they afford to have modern art?” is something the visitor might ask. The answer is quite simply: Yes, because they produce it themselves. At the last Studer Motion Meeting, the company turned all of its guests into artists. The masterpiece is the result of a friendly get-together on the final evening. The huge canvas hung from the ceiling, the “artists” took a small pot of paint and threw it – similar to the launching of a new ship. That is how truly great art is created. You cannot quite appreciate the artistry? Well, let me tell you: Art is not a handmaiden of the masses … + + +

Stipendiaten des Northern Institute of Technology (NIT) uni-Filter-Produktionsmaschine erste Tuchfühlung mit den bjekten auf

Ideas for Life
For the fifth time the Körber Foundation called for entries to its USable competition. The prizewinners sought innovative ideas from the USA from the broad spectrum of charitable engagement and suggested ways in which they could be realized in Germany.

IDEAS AND ACTIVITIES 44_45

HELP FOR ADOPTIVE PARENTS. “PICCO,” modeled on an American magazine, gives valuable information on the adoption of Vietnamese children

“Transitions in Life” was the general topic that the Körber Foundation selected for this year’s Ideas Competition. If life means constantly overcoming changes and transitions then the United States is a good case in point. Virtually no other country can boast to having so many charitable initiatives that accompany and support people through life’s changes. The results of this competition are an inspiring testimony of this: More than 260 entries were received by the Foundation, among them many fascinating ideas that painted an impressive picture of existing

civic responsibility in the USA but also in Germany. During the ceremony held in the Konzerthaus at the Gendarmenmarkt in the heart of Berlin, US-Ambassador William R. Timken thanked all participants and above all the Foundation, when he said, “You have rendered an outstanding service to the transatlantic partnership. Germany is indeed a ‘Land of Ideas’.” The former President of the German Parliament, Rita Süssmuth, introduced several of the competition’s more outstanding ideas. Projects that offer support to people during transitional phases, new beginnings, and in difficult situations. This can be when they enter school or begin a career, when they start a family or when the elderly change their living conditions by moving into retirement homes. During the festive awards ceremony, the winners in the various categories explained their projects before the Foundation presented the certificates and a total of EUR 150,000 in prize money. “It is reassuring to know that people are receiving public recognition for their splendid commitment,” said Rita Süssmuth and closed with the words, “I wish you all courage, confidence and support.” Transitions in Life – in coming to terms with such phases in life, the USA lives up to its reputation as a huge incubator for public-spirited ideas and as a society with a highly developed sense of service. This was highlighted by the many entries submitted to the competition. People in Germany will be able to learn and benefit from these ideas as USable has already shown in previous years. Former prizewinners of the competition – educationalists, gerontologists, social workers, psychologists, entrepreneurs or artists, are already working in Germany with established and proven American concepts and methods.

The ideas submitted to this fifth edition of the competition once again confirmed that in many areas, social deficits can be removed not just through government resources and money, but through goodwill and civic responsibility; this could be in the prevention of violence, youth work, educational aid, career consultancy, in the process of grieving or in geriatric care. It is the people who develop ideas and implement them; people who believe in the power of innovative ideas. The wealth of ideas submitted to the competition covered virtually all conceivable biographical transitions: from teen pregnancy to grief counseling for children, from offers for college dropouts to rehabilitation in the penal system, from the support of young families to the integration of immigrants. The Körber Foundation does more than just honor innovative ideas with prizes and awards; it also offers the prizewinners conceptual and financial support to help with implementing these ideas through specific projects in Germany. To exemplify, we present four of the prizewinning ideas from the cornucopia of USable entries: “GREAT KID’S GAME”. Modeled on the US-version of the “Good behavior game,” students at an elementary school in Lower Saxony are playfully practicing the art of good social behavior. Instead of a “telling off” the children are rewarded for good behavior. It works as follows: For a set time, the children must concentrate on learning in an undisturbed atmosphere. The class is divided into different countries, so that, for example, Germany competes against Brazil, or against England etc. There are strict rules. The top priority is that there is absolute quiet in the classroom. No

48_49 IDEEN UND AKTIONEN

IDEAS AND ACTIVITIES 46_47

GOOD ATMOSPHERE FOR THE YOUNGSTERS. Learning a lesson from the “Good behavior game,” children are taught in a positive learning atmosphere. Instead of demerits, they are rewarded for good behavior

shifting chairs, no running around, no interruptions. If the rules are broken, then the team receives a penalty point. Naturally, each team wants to win, and that alone leads to an undisturbed learning atmosphere. The educationalist Clemens Hildebrand from the University of Cologne is responsible for promoting this game in German schools. In his expert opinion, “it is one of the simplest and most effective prevention programs.” “EDEN ALTERNATIVE”. Living a self-determined life as an elderly person. Who would not wish for that? Contact with the younger generation so that the elderly can pass on their knowledge and wisdom is part of this concept. It also includes reflecting on one's own life in written form and becoming politically active. Transition for the elderly nearly always involves an unexpected move to a retirement home, a step that many are very afraid to take. The social worker Irmgard Klamant from North RhineWestphalia has the answer. “In nursing homes in Germany, geriatric care and bureaucracy play major and very timeconsuming roles – and all that in the face of major staff shortages. The employees have very little time to take care of the elderly.” Examples from the United States show that there are alternatives. The elderly people there are open and responsive, cheerful, awake and satisfied. This is due to the “living assistants” who make music with the elderly, do gardening work, find children’s and youth groups for joint projects, for example interviews or films about the lives of the elderly. Pets are welcome and stay in the living quarters with their owners. That is part of the “Eden Alternative” – the name of the project in the US: Elderly people take an active part in life – using all their senses.

COMMITMENT TO THE ELDERLY. “Living assistants” help elderly people take an active part in life. In the USA, senior citizens experience joy through contact with pets and children and youth groups

PICCO. Picco stands for “Parent’s Initiative Child Care Organization” – an initiative founded by adoptive parents based on the model of an info-magazine from the USA called “Chao Ban.” This magazine addresses the adoptive parents of Vietnamese children. The content focuses on features about Vietnamese national holidays and events, tips from those in similar situations on how to talk to the children and other people about adoption. Claudia Brehm and several of her friends have now founded the magazine “PICCO” in Germany. Their aim is to inform and create a network of prospective parents and adoptive parents – and to encourage more openness in dealing with adoption. At the same time, the society wants to organize relief operations for children in their country of origin and establish intensive contact to the families of their foster children.

TELEPHONE FOR THE DEAF. One example of a pilot project that has been started in Germany with substantial backing from the Körber Foundation is the telephone for the deaf. How can deaf people or deaf-mutes converse on the telephone? One method that is widely used in the USA is now starting up in Germany as a pilot project using a voice-to-text relay service. How does that work? The deaf person calls a relay center, types his message using a text computer, the call center speaks to the caller on the other end of the telephone line – and his “words” are transmitted via relay center as text to the deaf person’s computer. The Körber Foundation was so taken by this idea that it immediately had a legal expert draw up a report. This report was so convincing that the authorities and the Deutsche Telekom were persuaded to commence with a pilot project so that the deaf and the hard of hearing are no longer excluded from making telephone calls.

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The Professor and his “Chaperones”
Prof Dr F. Ulrich Hartl received the 2006 Körber European Science Award. The Director of the Max Planck Institute for Biochemistry in Martinsried in Southern Germany researches “Chaperones” that mold proteins.
For his groundbreaking discoveries in the field of protein folding, the physician Prof Dr F. Ulrich Hartl received this year’s Körber European Science Award worth EUR 750,000. The Körber Prize, awarded annually by the Hamburg-based Körber Foundation for 22 years, honors a European scientist for a specific and pioneering research project. An international and independent Trustee Committee, chaired by Prof Dr Peter Gruss, President of the Max Planck Society, determines the winner from suggestions made by a Selection Committee composed of European scientists. The results of Hartl’s research are of particular interest to scientists involved in the field of incurable diseases. Hartl’s scientific findings on how proteins in the body are molded into the right shape will enable new therapeutic approaches in the treatment of neurodegenerative diseases such as Alzheimer’s, Parkinson’s or Huntington’s. Protein molecules control nearly all the vital functions in biological systems. However, before they can become active in cells, the individual protein segments must first be molded into a particular three-dimensional form. To do this, the proteins usually need helper molecules, called chaperones, as Hartl and his team first showed in 1989. These chaperones prevent molecules from folding incorrectly or having illicit contact with other molecules, causing them to clump. HARTL’S DISCOVERIES ARE OF CRUCIAL SIGNIFICANCE not only for the biotechnological production of protein molecules, but particularly for the treatment of neurodegenerative diseases. Age-related diseases, such as Alzheimer’s or Parkinson’s, develop from key proteins that cultivate aggregates and are then unable to carry out their proper function. Hartl was able to demonstrate in test tube trials and in intact cells that this erroneous cultivation of aggregates can be avoided by artificially increasing the number of chaperones. Hartl plans to use the prize money to establish new biophysical, biochemical, und cell biological methods of investigation. His aim is to increase the number of functional proteins produced biotechnologically. Above all, he wants to determine precisely how incorrect folding contributes to the origin of neurodegenerative diseases and why the molecular chaperones perform less well with increasing age. Dr Nikolaus Besch, Körber Foundation

IN FRONT OF 600 GUESTS in the large banquet hall of Hamburg’s City Hall, Dr Klaus Wehmeier, Vice-Chairman of the Körber Foundation, awarded the Körber European Science Award to Prof Dr F. Ulrich Hartl for his groundbreaking discoveries in the field of molecular biology. The highly distinguished scientist succeeded in presenting his research project to a wide audience in a clear and comprehensible way

GROUNDBREAKING FINDINGS. This award for Prof Dr F. Ulrich Hartl came as no surprise to many researchers. The overriding opinion in scientific circles was that Hartl had brought about a paradigm shift in his field of research and had proven his theory with remarkable consistency and despite all opposition

STRONG WOMEN FOR A STRONG PROGRAM. Susanne Kutz (right), Divisional Director of Communications and Culture, and Anette Meister, Program Director at the KörberForum, always manage to put together a list of high-profile guests for events at the KörberForum

Harbor brunch with a round-the-world yachtsman
The KörberForum always surprises its visitors with an array of exciting and top class events. The knowledgeable audience appreciates not only the professionalism that goes into the organization of these events but also the communicative atmosphere at Hamburg’s Kehrwiederspitze.
The Körber Foundation, sole shareholder of the Körber Group, also lays claim to being a “Forum for Impulses” and as such has initiated manifold projects in the foundation landscape. Following its relocation to Hamburg’s new HafenCity and the integration of a function room with a capacity of up to 200 people, the Körber Foundation is fast becoming recognized as a distinguished and much-frequented meeting-place, a forum for social discourse and intercultural exchange. In short: The KörberForum focuses on issues which interest and move people. With its wonderful view of the busy dockyards, the KörberForum at the Kehrwiederspitze has generated a lot of attention by offering a very diverse program concept designed for “people who are not willing to leave everything the way it is.” What is the secret of this rapid success? On the one hand, it is certainly the concept behind these events and on the other it is due to the continuous and determined efforts of two women: Susanne Kutz, Divisional Director of Communications and Culture, and Anette Meister, Program Director at the KörberForum. “Last year, we thought about what kind of issues we would like to bring to public attention. Of course, these were issues that were also defined through our work in the Foundation. We ultimately decided on four spheres of activity,” says Susanne Kutz describing the work of the Forum. Ultimately, they decided on: Dialogue and Communication, New Learning and Research, Integration and Civic Involvement and Young Culture.

IDEAS AND ACTIVITIES 50_51

The Foundation based its decision on the fundamental principle of developing the KörberForum into a projection forum for the “Körber-brand.” The Foundation’s individual projects do not stand separate from each other but in their entirety convey a joint and unified profile of the Foundation to the general public. THE FOUNDATION’S LIST OF SPEAKERS includes government ministers, highranking politicians, scientists, and representatives from the world of finance and the arts. That raises the question of how the Foundation always manages to win these kinds of people for its events. The excellent reputation of the Körber Foundation is certainly one reason, another being the highly respected work of the project team and above all the close ties to the Foundation’s projects. So it stands to reason that although Susanne Kutz and Anette Meister are responsible for the program of events at the Körber Forum, project teams from the Foundation are involved in the preliminary creative work. Anette Meister says, “If we have awards ceremonies for our competitions, for example, or the

scientific advisory boards hold their meetings, then we consider whether or not that could be a suitable subject for a parallel event at the KörberForum.” The distinguished speakers are aware of the close ties between their subjects and the high-quality level of the Foundation’s projects, and they can always expect to be greeted by an interested and knowledgeable audience. “The program is always posted for a period of three months – with flyers and also by specifically addressing people whom we think might be interested in our subjects,” says Susanne Kutz. THE HIGH NUMBER OF GUESTS attending the events at Kehrwieder 12, the Foundation’s headquarters, is an indication of just how successful the Forum has become. “In the case of some of the lectures or cultural events, we were expecting maybe 50 visitors, but then 200 or even more showed up,” says Anette Meister. Susanne Kutz believes she knows the reason for this. “Apart from the attractive subjects we focus on, it is the atmosphere in our Foundation’s house. People strike up conversations, they exchange thoughts and ideas with

the speakers or with each other in a relaxed atmosphere and with a glass of wine.” Even a new event format, such as the “Harbor brunch,” is immediately well received. Weekdays, at 11 A.M., the Foundation has organized a series of lectures with editors-in-chief from wellknown magazines, architects, a roundthe-world yachtsman or a well-known ship-owner, who all speak for thirty minutes on a subject linked to the harbor – and the visitors come in droves. Usually they come from offices in or near the HafenCity where publishing companies, advertising agencies and other such companies are located. These are all people with a sense of and a need for communication. In a major city like Hamburg there are a host of institutions and academies and forums with an extensive selection of lectures and discussions. And yet the Foundation’s KörberForum has managed to establish itself as an especially attractive meeting place within a short space of time. It is a place where one always encounters interesting people and where visitors always benefit from the topics discussed in the lectures.

NEW ROOMS FOR DIALOGUE. After relocating, more than 200 guests can be seated in the modern function rooms

Körber AG International
TOBACCO
HAUNI MASCHINENBAU AG Hamburg, Germany Production machinery for the tobacco industry and leading company of the tobacco division BALTIC METALLTECHNIK GMBH Grevesmühlen/Hamburg, Germany Systems supplier for parts and subassemblies DECOUFLE S.A.R.L. Chilly-Mazarin, France Production machinery for the tobacco industry HAUNI HUNGARIA GEPGYARTO KFT. Pécs, Hungary Equipment for the tobacco industry HAUNI LNI ELECTRONICS S.A. Geneva, Switzerland Control systems for production machinery HAUNI MALAYSIA SDN. BHD. Shah Alam/Selangor, Malaysia Fully overhauled machinery for the tobacco industry HAUNI PRIMARY GMBH Schwarzenbek, Germany Tobacco processing plants and process automation HAUNI PRIMARY INTERNATIONAL GMBH Schwarzenbek, Germany Tobacco processing plants, Research and Development, Pilot plant HAUNI RICHMOND INC. Richmond/VA, USA Production technology for the tobacco industry UNIVERSELLE ENGINEERING U.N.I. GMBH Schwarzenbek, Germany Fully overhauled machinery for the tobacco industry SALES COMPANIES REPRESENTATIVE OFFICES Decouflé Americas, São Paulo, Brazil Decouflé Moscow, Russia Hauni do Brasil Ltda., São Paulo, Brazil Hauni Far East Ltd., Beijing Representative Office, China Hauni Far East Ltd., Hongkong, China Hauni Far East Ltd., Kunming Representative Office, China Hauni Japan Co. Ltd., Tokyo, Japan Hauni London Ltd., London, Great Britain Hauni Maschinenbau AG, Representative Office Moscow, Russia Hauni Maschinenbau AG, Representative Office St. Petersburg, Russia Hauni Service St. Petersburg Ltd., St. Petersburg, Russia Hauni Singapore Pte. Ltd., Singapore Hauni Trading (Shanghai) Co. Ltd., China

PAPER, TISSUE AND ABSORBENT HYGIENE TECHNOLOGY
KÖRBER PAPERLINK GMBH Hamburg, Germany Holding E.C.H. WILL GMBH WRAPMATIC, PAPER SYSTEMS Hamburg, Germany Machinery for the production of stationery products and communication paper, folio sheeters for paper and board, packaging machinery for the paper industry KUGLER-WOMAKO GMBH Nürtingen, Germany Custom-made machinery for the production of stationery products, wire- and plastic-bound products, labels, filing systems and documents PEMCO INC. Sheboygan/WI, USA Packaging machinery for the paper industry and cross-cutters for paper and board KPL PACKAGING S.P.A. CASMATIC, TISSUE SYSTEMS Bologna, Italy Packaging machinery for the tissue industry FABIO PERINI S.P.A. Lucca, Italy Tissue converting equipment PERINI ENGRAVING S.R.L. Lucca, Italy Embossing rolls for tissue production FABIO PERINI S.A. Joinville, Brazil Tissue converting and packaging equipment DIATEC S.R.L. Collecorvino (PE), Italy Machinery for the manufacture of baby diapers, sanitary napkins,panty shields, incontinence products and underpads WINKLER+DÜNNEBIER AG Neuwied, Germany Machinery for the manufacture of envelopes, pockets, interfolded products, handkerchiefs, labels and cardboard blanks,offset- and flexo printing presses, packer and palletizers SALES COMPANIES REPRESENTATIVE OFFICES Körber PaperLink Russia, Moscow, Russia Körber PaperLink North America, Green Bay/WI, USA Körber PaperLink America Latina, São Paulo, Brazil Körber PaperLink Far East, Tangerang, Indonesia Körber Engineering Shanghai Co. Ltd., Shanghai, China Fabio Perini Germany GmbH, Neuss, Germany Fabio Perini France S.a.r.l., Paris, France Fabio Perini U.K. Ltd., Kingston-upon-Thames, Great Britain Fabio Perini North America Inc., Green Bay/WI, USA Fabio Perini Latin America Inc., Coral Gables/FL, USA Fabio Perini Japan Co. Ltd., Fuji, Japan Fabio Perini Singapore Pte. Ltd., Singapore Fabio Perini Korea Ltd., Gyeonggi-do, Korea Pemco International, Thetford, Great Britain PreOwnedEnvelopeMachines POEM GmbH, Neuwied, Germany WINKLER+DÜNNEBIER Representative Office Shanghai, China W+D Machinery Company Inc., Overland Park/KS, USA

MACHINE TOOLS
KÖRBER SCHLEIFRING GMBH Hamburg, Germany Holding BLOHM MASCHINENBAU GMBH Hamburg, Germany Surface and profile grinding machines EWAG AG Etziken, Switzerland Universal and production tool grinding machines K. JUNG GMBH Göppingen, Germany Surface and profile grinding machines MÄGERLE AG MASCHINENFABRIK Fehraltorf, Switzerland Surface and profile grinding machines, grinding centers STUDER MIKROSA GMBH Leipzig, Germany Centerless grinding machines STUDER SCHAUDT GMBH Stuttgart, Germany ID and OD grinding machines FRITZ STUDER AG Thun, Switzerland ID and OD grinding machines WALTER MASCHINENBAU GMBH Tübingen, Germany Universal and production tool grinding machines, measuring machines MANUFACTURING, SALES AND SERVICE COMPANIES Körber Schleifring Asia-Pacific Pte. Ltd., Singapore Körber Schleifring Italia Srl., Fino Mornasco, Italy Körber Schleifring GmbH, Representative Office Bangalore, India Körber Schleifring UK Ltd., Basingstoke/Coventry, Great Britain Körber Schleifring France s.á.r.l., Chilly-Mazarin, France Körber Schleifring Machinery Co. Ltd., Taicang, China Schleifring Brasil Ltda., Sorocaba, Brazil Körber Schleifring GmbH Representative Office Beijing, China Körber Schleifring GmbH Representative Office Chengdu, China Körber Schleifring GmbH Representative Office Chongqing, China Körber Schleifring GmbH Representative Office Guangzhou, China Körber Schleifring GmbH Representative Office Xian, China Schleifring Service GmbH, Stuttgart, Germany Schleifring Service AG, Thun, Switzerland Studer Tec K.K., Tokyo, Japan United Grinding Technologies Inc., Miamisburg/OH, USA United Grinding Technologies Inc./ Walter Grinders Inc., Fredericksburg/VA, USA Walter S.r.o., Kurim, Czech Republic Walter Japan K.K., Anjo City, Japan

PHARMA PACKAGING SYSTEMS
KÖRBER MEDIPAK Hamburg, Germany DIVIDELLA AG Grabs, Switzerland Packaging machinery for the pharmaceutical industry RONDO AG Allschwil, Switzerland Printing and packaging RONDO OBALY S.R.O. Ejpovice, Czech Republic Printing and packaging RONDO-PAK INC. Norristown/PA, USA Printing and packaging MEDISEAL GMBH Schloss Holte, Germany Packaging machinery for the pharmaceutical industry SALES COMPANIES REPRESENTATIVE OFFICES Körber Medipak Asia/Pacific, Singapore Körber Medipak France S.A.R.L., Saint Ouen, France Körber Medipak NA Inc., Clearwater/FL, USA Körber Medipak UK & ROI, Windsor, Berkshire, Great Britain MediSeal GmbH, Australian Representative Office, Melbourne, Australia MediSeal GmbH, Shanghai Representative Office, China

OTHER ENTERPRISES
BALTIC ELEKTRONIK GMBH Grevesmühlen, Germany Manufacture and assembly of electronic components BVG BERGEDORFER VERSICHERUNGSVERMITTLUNG GMBH Hamburg, Germany

K