"We have a good chance to continue growing"

Interview with Dirk Zschalich, managing director of HEROSE, about the forecast for 2019

How was 2018 – what will 2019 bring? vc spoke about this with Dirk Zschalich. 

vc: How would you assess the last year?

Dirk Zschalich: All things considered, 2018 was successful for us. That applies for Bad Oldesloe, but also for the other companies of the HEROSE group. We have achieved an increase in sales of 12 %. A good result considering that we have remained behind the goal that we have set in the scope of the strategy 2022. 

vc: What were the reasons?

Zschalich: Amongst others, the political framework conditions are anything other than ideal. I am only mentioning the trade war between the USA and China as well as the ongoing theme of Brexit.

vc: Let us talk about the positive aspects.

Zschalich: And there are a lot of them. For example, we have our delivery reliability – compliance with the agreed deadlines – after several problems in the previous year, sustainability increased to more than 98 % again. Thanks to the three large trade fairs that are important to us – ACHEMA, SMM and Valve World, that for the first time in 2018 all took place in one year, we were able to do a lot for customer retention and new customer acquisition. With our service, the installation and maintenance of valves, HEROSE has opened up a new and promising business field. And finally, we have introduced a row of new series and product extensions.

vc: In the meantime, more than 300 people are working for HEROSE in Bad Oldesloe. Production and administration are coming up against their special boundaries ...

Zschalich: We know that we will not get around a construction extension in the medium-term. We have sufficient reserve area and we have already made the initial thoughts and sketches. Planning shall continue this year.

vc: What are you expecting otherwise for 2019?

Zschalich: As in the previous year, the topic LNG Fuelling for shipbuilding will also have a significant role for our business. After the AIDA Nova was equipped with HEROSE valves in 2018, the construction of cruise ships is another highly interesting topic for us. Ferries and barges will also continually increase the demand. With the DLR – The German Aerospace Centre – we were able to gain a new important reference partner for the topic Aerospace. That is a completely new business field for us and I am very optimistic that this will develop 

positively for us.

Generally, in 2019 we have an ambitious development program with numerous novelties and expansions. For example, mobility solutions with hydrogen are approaching fast. We will still be dealing with the topics automation, digitisation and further optimisation of the internal processes intensively. As we want to further develop our service portfolio. And we want to make progress with the integration of the HEROSE group. With this point, we are a bit behind schedule. A qualitatively good solution that will also take a little longer, is more important to us here than a poor rush job.

vc: Your sales forecast for 2019?

Zschalich: We have a good chance to continue growing. However, I am a bit worried about the global political situation mentioned as well as the general economic development. Populist movements can also be another risk for the economy. That is difficult to assess. But I am generally an optimist.