German supplier of blown film lines Kiefel Extrusion reports record sales of its machines. CEO Edgar Gandelheidt says the Worms based company has managed to increase its turnover by 50 per cent since 2001. It has sold 126 Kirion machine lines worldwide, since their launch five years ago, and 20 complete lines had already been ordered by the end of May this year. Customers include a number of film producers that have already ordered their second or third multilayer line from Kiefel. Many new customers have also been gained in 2005, from such countries as Egypt, Argentina, Korea and Malaysia.
Edgar Gandelheidt announced at the end of 2004 that the company had exceeded the turnover target it had set for the year, and he now says the ambitious targets set for the entire year in 2005 have already been met in June. Despite high capacity utilization, the company says it still retains full delivery capability.
"Naturally we have also noticed among all these satisfying figures that our customers have had to battle increasingly with serious problems", he admits, "such as the enormous price pressure in raw materials and energy." In addition, he notes the worldwide pressure on profit margins due to competition from low cost suppliers, and the decline in the value of the dollar against the Euro that has made access to markets more difficult – and not only in North America.
The Kiefel management has reacted to these challenges with a series of strategic measures. For example, it has rationalized production to such a large extent that it has been able to shorten delivery times and despite this, to also maintain costs. The company claims it has had to adjust its prices "only moderately, if at all, while simultaneously offering enhanced and improved technology".
The retrofitting business has also been systematically expanded, as many customers are no longer aiming at immediate purchase of a new line, but choose the route of modernizing existing equipment.
Finally, Kiefel has further expanded its international sales network. New offices in eight countries have recently been added to the existing 50 sales representations.
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