This positive trend underlines the fact that the acquisition of Saurer AG was not only the　highlight of fiscal 2006 for Oerlikon: incorporation of the new group segment has tripled　the workforce of the Swiss high-tech group to over 19,000 employees worldwide,　significantly increased the volume of sales and achieved a dimension that unlocks huge　potential for the future. In Saurer AG a global player has been brought into the fold that　fits superbly into Oerlikon’s portfolio and is in line with its corporate orientation.

Technological give and take

Synergy effects are yielded above all at the technological level. Oerlikon’s expertise in　surface coating and wear protection for tools and components will directly benefit the　further development of former Saurer products such as textile machines and gears.

Conversely, Saurer’s core areas of competence in the field of mechatronic assemblies,
such as magnetic bearing assemblies, are of interest to Oerlikon.

This calls for the integration of the former Saurer business units. It was thus decided in the first quarter of 2007 to establish a coating centre of Oerlikon Balzers Coating at the Chinese textile plant in Suzhou - a first step towards making joint use of locations worldwide. Oerlikon Leybold Vacuum has also begun collaborating with Oerlikon Schlafhorst, now a business unit of Oerlikon Textile, to participate in the know-how for innovative drives. The same goes for the former Saurer segment Oerlikon Graziano Drive Systems, which is now exploring the potential of coating processes for transmission technology together with Oerlikon Balzers Coating.

New opportunities for growth

Opening up new markets also offers such opportunities. Oerlikon has been working for some time on a strategy for entry into the Russian market that is also benefiting Oerlikon Textile. This region, in which Saurer was not so strong represented, is now one of the textile markets of the future. On the other hand, Oerlikon is benefiting from the fact that Saurer is well positioned above all in China, India and Turkey - markets in which Oerlikon has done little business hitherto.

Another factor is that Oerlikon and Saurer are Swiss companies with a long tradition and history stretching back over 100 years. These origins, along with an ongoing commitment to achievement as market leaders, unite both global players in their orientation and direction. Oerlikon’s strategy of occupying or aspiring to the number one or two slot in its respective markets thus already forms part of the established corporate culture of former Saurer employees. Nevertheless, the integration of an international company with around 8,000 staff presents a challenge. For this reason a transformation programme has been developed to ensure smooth integration into the Oerlikon Group. This ranges from the harmonization of brand identities via process assimilation to standardization of the IT systems. The programme should also open up new sources of growth and help to increase profitability thanks to efficient cost management. “Integration has one goal above all: it should strengthen the competitiveness and innovative ability of our company　as a whole,” stresses Dr Carsten Voigtländer, executive vice president of Oerlikon Textile. The programme of integration is one of the central corporate tasks of the 2007 financial year.