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Schweizer, 150 anniversary
November 8, 1999 |Estimated reading time: 5 minutes
Schweizer 150 anniversary
Christoph Schweizer, in 1849
Christoph Schweizer, in 1999
In 1849, Schweizer was producing clock's faces, and in 1958 its first single sided printed circuit boards. The firm is at present the 8th European manufacturer of PCB. Is present day management more difficult than in the past ?
As everywhere in the globalised economy nowaday's the stearing of companies is much more difficult then i.e. 10 or 20 years ago. Reasons are Errors are more critical, time to consider decisions become much shorter,customer relations are looser then in former times, quite often counts onlyprice and not the whole package including know-how and service.In the Pcb business all is very globalised and everybody is a competitor. Distances and languages are not anymore a barrier for buyers like in the past.
Schweizer is listed on the Frankfurt and Stuttgart Stock Exchanges. How is made of the shareholding ? What are the advantages and the disadvantages of being listed on stock Exchange ?
Two Schweizer families hold 34% each. 32% are freefloating stocks. The advantages are a higher value than the disadvantages We can raise additional capital from the public. Due to we are very "transparent" the pressure to show a positiv performance is much higher. One of the biggest advantage is To separate management and capital ownership. As you know two of the executive board are no family members anymore. And looking to the next faily genaration, only family members with a outstanding performance shall get a chance to enter in the key management. (otherwise it is better for the company’s future to stay outside and to enjoy dividend counting!)
Last year, you announced 100 mDM of investments between 1998 and 2002. What are the objects of these investments, and what are the growth forecasts for sales ?
There are two 1.) To enter in a high speed conversion of the high end of PCB production (HDI included)and to stop in future the low end. 2.) To reach a.s.a.p in the sense of anual turnover a critical mass, to remain a key player in this sector in future.
Schweizer uses equipment which is dedicated to high volume to manufacture prototypes. Is it an originality in the PCB world ?
Our business is in the medium and high volume manufacturing and due to technical reasons it is absolutely necessary for some of our customers that even prototypes are manufactured on those high-volume lines.
During a conference in 1996, you declared that German manufacturers should reduce workforce costs by 25 to 40% before year 2000, and you declared too that equipments should produce twenty four hours a day. Did Schweizer reach these objectives ?
Presently our factor is about 35%. We still try to press down below 30%. But the price reduction in the last 3 years has eliminated part of our progress in this field. We run already our facility partly 7 days a week and 350 days a year and we shall invest heavily in these areas.
In 1982, you created Pentex Schweizer, a joint venture in Singapour. In 1988, you warned your colleagues against the globalization effects and Asian pressure. In fact, between 1992 and 1995, multilayers prices have been cut in average by 35%. What is the origin of your deep understanding of Asian market ?
Experience and frequent and regular stays in Asia and my personal network of relations to many collegues (competiters) everywhere in the PCB world. But to establish and to maitain such relations is a personal burden, but it pays back.
We learned of Pentex Schweizer's closure. What will be the future for Schweizer in Asia ?
This closure is a scheduled one, due to the week market we have executed it earlier than planed. A new facility to replace the former Degussa is already under construction. It will be ready mid of 2000, but not with the Old fashioned Degussa technology, but with the latest in HDI production.
Do the German manufacturers come up against fierce competition from Italian , Spanish and British manufacturers in Europe ?
Yes, we feel it but with a better know how we are confident to be competitable in the high end area of PCB.
Do you think about Eastern Block countries in terms of reduced costs, or new export outlets ?
Presently there is no domestic market there. Only to reimport is not our strategy. If a reasonable domestic demand starts we shall consider what Schweizer has to do there. (As we did 1982 in Singapore)
The outsourcing phenomenon doesn't spare Germany. Are you worried to deal with subcontractors ?
No, about 20% of our custumers are allready EMS companies.
Fuba joined a big group, Ruwel made progress by external growth, STP is an offshoot of IBM Sindelfingen. Schweizer recent development doesn't look like this. Is it a choice ?
We have a total different strategy, and it is not yet proven if the mentioned are successfull at the end.
Regarding our strategy No comment to the public, sorry.
Globalisation means that it will be very difficult to compete on the world market for company owned by a family. During the 150th Schweizer anniversary, we had the feeling to live an historic day. How would you consider the fact that Schweizer become one day a member of an international pcb group ? Would it be a success or a failure ?
I never say no, but it must be a "win win" venture for all who participate in such a venture and especially it must give a positive impact to Schweizer!
VdL organise a seminar end of october between German manufacture about the question Will we be able produce PCBs in Europe next years ? What do you think about ?
Yes, for sure as well in ten years.
What was your best professional memory ?
A meeting withe the former prime minister of Bavaria, Franz-Josef Strauß He taught me a very true lesson "better do it 90% right and fast then 100% and never".
And the worst ?
That there is no way to convince all competititors on a global base not to install tremenous overcapacity, which creates for all, due to self initiated price erosion, only a big burden and low or zero profit margin which do not help to fullfill the future need's of this industry.
(1) 6ème French PCB seminar - march 96