won a huge contract with an internationally operated vehicle and engine manufacturer to develop and manufacture fluid systems to reduce nitrogen oxides in exhausts. Production will start in 2014 and annual order volume is described as “in the lower double digit millions of euros for a four year period”. “We are very proud of it,” says Werner Deggim. “We try to
patent all our products, to preserve a certain advantage in the short term but we recognise the crucial importance of constantly innovating and delivering improved value.” While the Maintal plant, outside Frankfurt, takes the
lead in Quick Connector research and development and has a very highly automated injection moulding facility, forming of the ‘hose’ elements and assembly of the entire component is more labour intensive. NORMA has an established plant in Poland, which is running close to capacity. This is one reason why the Group has just formally opened a new plant in Serbia. On the other hand, NORMA´s presence in Eastern Europe is further strengthened.
Global solutions – locally engineered Weight reduction and assembly efficiency have been
important criteria in Europe for a long time. NORMA’s experience in developing solutions to meet these needs in the most stringent world market, together with its recognition of the importance of local engineering expertise is paying dividends. “The emission reduction trend makes weight even higher priority so everyone tries to save it wherever they can. Today, here in Europe we are working on Euro 6 solutions. China plans to introduce Euro 6 in 2016 so we are engineering products today that China will need in 2016.” It is not, though, as easy as taking a sophisticated solution and trying to sell it into a market not currently operating to the same standards. Werner Deggim spells out an example. “We were approached by a leading Indian tractor manufacturer who wanted help to develop a leak free tractor. We already had a solution here in Europe. Elevated emission standards meant it needed a flame resistant surface and had to be a three layer thermoplastic extrusion. Our Indian engineers took this solution and talked to the customer. Lower emission standards meant that it did not need the heat resistant layer, just a leak free solution. So we developed a one layer extrusion.” At the heart of the story, for Werner Deggim, is NORMA’s
ability to use its Indian engineers to achieve the technical bridge between local requirements and the European technology. “That is why it is our philosophy to have local engineering expertise, to localise the solution. That way we maintain a very important advantage in our field of specialism. We know if we have a business model driven by growing environmental awareness, in all kinds of industries and markets we can create value for our customers throughout the world. That is part of our success and will be in the future.” Witness to the effectiveness of the strategy, NORMA plans
to expand its existing operations in India as well as in China. “Our facility in China has been doubled in size at the beginning of this year,” says Werner Deggim. A fluid plant in Mexico serves the North American market. Another opened earlier this year in Thailand serves the South East Asian market and 1,000km south of Moscow a plant supports Russia’s traditional automotive production area. So far NORMA has not established
production in South America but the recent announcement of opening a sales and engineering office close to São Paulo is indicative of intentions. “We view Brazil as a key market for growing our business on the South American continent,” says Werner Deggim. “In terms of production it is for now a white spot on the map. We have been looking to acquire a business
“ We know if we have a business model driven by growing environmental awareness, in all kinds of industries and markets we can create value for our customers throughout the world.”
for sometime but Brazilian companies are very aware of the attraction of their market to global companies right now. Our strategy is to come close to our customers and markets. So we will be expanding soon in Brazil.”
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