Transcending limits

Time to act?
When Ferrum was founded in 1917, its customer base was a modest one: Hero Lenzburg, and several larger-scale farmers and butcher’s in the Swiss Central Plateau. Export didn’t become an issue until the ambitious Rudolf Werder took over the running of Ferrum in 1925 – or rather a dream which received a rude awakening in 1929 with the advent of the Great Depression. Fortunately, domestic demand developed pleasingly, thanks to tourism and the military.

Export hits
Peace and stability are drivers of the world economy. When Europe had finally laid down its arms in 1945, Ferrum from Rupperswil, which had been spared the hostilities of war, was ready for to take its first step abroad. The dynamic sales team in the Laundry Department were the quickest to react. It was thought that sales agencies in Western Europe, South America and Turkey would help to seize the top spot from ailing competitor, Germany. Ferrum used bills and exhibition stands in the intensive advertising of its washing and ironing machines. The French market would prove particularly lucrative. A long-term connection arose with George Theiler from Soultz in Alsace. His customer network extended as far as exclusive luxury hotels on the Côte d’Azur. When, in the early 1950s, global trade started to pick up speed, Ferrum’s still young Centrifuge Department also benefited. Not only did the pharmaceutical industry from Basel, its best client, export, but also began to open an increasing number of its own production facilities overseas. However, orders were still placed in Switzerland. As a result, Ferrum centrifuges made their way to America and Asia by the dozen. And, in the early 1960s, over two thirds of buyers of canning machines came from abroad. Whether Italy, Germany or Scandinavia: Ferrum won itself a loyal client base with its technically unrivaled vacuum seamers for coffee roasters and special pitting machines.

Dutch beer
Not until the oil crisis of 1973 did a serious kink appear in Ferrum’s growth curve. Ferrum had to react – and found the solution in 1976 in a collaboration with Dutch commercial brewery Bavaria. To compensate the loss of face suffered by conserved foodstuffs, the technicians risked a dalliance with the drinks can for the first time. A delicate venture, as the know-how for sealing the thinner, less resilient cans was lacking. As a result, the backing of Bavaria’s owners, the Swinkels family, became even more crucial. Convinced by the Ferrum technicians’ technical ingenuity, Bavaria refused to
be discouraged by the teething troubles suffered by the prototypes. The reward: When Ferrum’s F900 can seamer went into production, it was immediately on a par, in terms of performance, with the American competitors. This outstanding reference paved the way for Ferrum’s entry into the drinks can seaming segment – which remained a global growth market – and Bavaria places its trust in the high-performance machines from Aargau to this day.

Asian deals
From the 1980s onward – particularly in the wake of the Ferrum International breakdown of the former Eastern Bloc in 1989 – globalization held full sway. Egypt, Iraq, India, Indonesia, Russia, China, Japan: Ferrum’s Canning and Centrifuge Departments worked increasingly for overseas customers. A 1994 milestone was the company’s takeover of the pusher centrifuges from Sulzer-Escher-Wyss. Highly versatile in the production of chemical raw materials, they went on to establish themselves alongside scraper centrifuges as a second – export-oriented – source of income. The demand for pusher centrifuges was particularly large in China.

«Swiss Made» – now and in future
However, accessing this strictly-regulated market remained a challenge. Here, a close collaboration with distribution partners provided security and experience. Ferrum also invested simultaneously in the training of Chinese sales engineers. The mutual success would soon surpass all goals: While, in the 1990s, an average of five to six centrifuges were exported to China each year, this rose to over one hundred in the record year of 2011. Ferrum machines stand out
worldwide on the grounds of their precision and quality. This is the result of outstanding specialists based in Switzerland, and the training and professional development they receive. In 2001, Ferrum employee Peter Limacher won the national polymechanic championships, and was invited to represent Switzerland at the 36th World Skills Competition
in Seoul (South Korea) the same year. He processed the materials down to a thousandth of a millimeter – and, after a four-day competition with a total of 640 competitors, achieved 4th place. This also demonstrates that Ferrum is a top-class company as a result of its top-drawer employees. However, even Ferrum should beware of closing its eyes to trends and megatrends. The strong franc continues to pose a threat to Switzerland as a location, for instance – after all,
over 90 percent of our customers pay in foreign currencies! In addition, Europe’s population is shrinking strikingly in comparison with the global population. Just under 10 percent of the world’s population lives in Europe now – and this percentage is set to decrease significantly in the coming decades. By contrast, Asia is continuing to flourish and also offers great potential in terms of can consumption. The markets are influx – and so is Ferrum. Many long-standing OEM customers, particularly in China, appreciate local contact partners. This is an opportunity for Ferrum to consolidate its business in the form of after-sales services. It follows that, today, service centers in the USA, Brazil, India, Malaysia and China are offering customers worldwide responsive, solution-oriented services. This quality awareness is a tradition at Ferrum – and also forms a core part of the company’s future.