The NZMEA signals an even stronger focus on supporting globally competitive manufacturers with the launch of a new nameWith the changing face of manufacturing and the increasing global opportunities advanced technologies offer, the NZMEA has introduced a new and simply stated name supported by a strong logo that reflects where it wants to take the industry into the future - The Manufacturers’ Network.
“We are hugely proud of our history, having supported manufacturers and manufacturing since 1879. But today the industry is different. With a global reach and growth opportunities relying more and more on collaboration, strong networks and an indepth knowledge of future trends, it was time our name reflected these values, clearly and simply, says Mr Dieter Adam, CE, The Maufacturers’ Network.
Today, manufacturing in New Zealand faces many challenges. Manufacturers need to hold their own and want to grow their business in an increasingly interconnected and highly competitive global environment. Whether it’s through exporting or competing with imports, it’s all about remaining globally competitive. To achieve that, manufacturers need support now more than ever.
“Manufacturers need a champion and an expert immersed in trends and opportunities who they trust so they can get on with running their businesses as competitively as possible, knowing we have en eye on the future. That’s where we fit in, says Adam.
“The Manufacturers’ Network represents the best of our collaborative spirit and smarts. We are a Network because we know that working together, and collaborating locally, allows us to compete globally, to stay up with - if not ahead - of trends, and to remain agile and efficient.
“We have deliberately chosen to use THE ahead of Manufacturers’ Network as it shows strength in what we do. Our focus is narrow and deep. We are THE Manufacturers’ Network, focused on supporting New Zealand manufacturers — the people behind the industry,” says Adam.
Manufacturing is the second highest contributor to GDP and we know that making a difference to this sector will make a difference to New Zealand and New Zealanders. Given this, the focus of The Manufacturers’ Network will be that of a specialist support network.
“I have recently returned from Hanover Fair, Germany, and built relationships there which will be invaluable going forward. Our networks aren’t just amongst the New Zealand industry but globally too.
‘There was a gap and we have made a commitment to filling it. As The Manufacturers’ Network, we are the experts in manufacturing,” says Adam.
| A Manufacturers Network release || September 22, 2017 |||
The New Zealand economy continued to grow solidly in the June quarter, posting a 0.8 per cent increase in GDP, taking New Zealand's growth rate for the year to 2.7 per cent, Finance Minister Steven Joyce says.
“Our economy continues to outperform many developed nations, underpinned by strong export and domestic demand,” Mr Joyce says. “It is still a challenging international environment, which is why we need to continue with an economic plan that is working for New Zealand.”
New Zealand’s growth over the last year has exceeded that of Australia, the United Kingdom, the USA, the Euro area, Japan, and the average across the whole OECD.
Growth in the quarter was across 11 of 16 industries, including:
Exports rose 5.2 per cent, with exports of goods posting its biggest quarterly increase in 20 years. Overall growth in the quarter was partially offset by the construction sector, which contracted 1.1 per cent in the quarter but up 6.4 per cent from June 2016.
Today’s GDP figures followed on from the release of New Zealand's external accounts yesterday, which showed a current account deficit of 2.8 per cent for the June year.
"This week’s economic growth statistics show that the Government’s consistent economic plan is encouraging businesses to invest and grow more jobs for New Zealanders. It is important to maintain and support business confidence if we are to continue our progress in the years ahead."
| A Beehive release || September 21, 2017 |||
Written by Rural News Group the red meat sector looks to government for action. The red meat sector has eight key priorities and believes the next government can play a key role in bringing about positive change.
Environment
• Continuing to improve the sustainability of our production is a top priority. We are committed to improving our water quality and further reducing the sector’s GHG emissions.
Our leaders recently committed to bringing New Zealand’s rivers back to swimmable levels and we are working on further ambitious targets for the environment.
The incoming government can help by:
o Working with the sector to develop environmental policies focused on the outcomes we want to achieve and that recognise different farming systems can meet these outcomes in different ways.
o We need government support with research and the tools to give us answers on the best way to build productive, sustainable environment.
Trade
• We are an export-focused sector: 90% of NZ’s sheepmeat production and 83% of beef production is exported. We continue to face major tariff and non-tariff barriers around the world that affect our competitiveness.
The incoming government can help by:
o Continued leadership on trade liberalisation, including negotiating high quality FTAs and putting resources into tackling non-tariff barriers.
Food Safety
• Food safety is critical to the meat industry and for maintaining consumer confidence. NZ is recognised as a world leading in its industry and regulatory systems.
The incoming government can help by:
o Continuing to provide government services in an efficient and cost-effective way and to maintain the high performance of NZ’s regulatory system for food safety, market access and reputational reasons.
Biosecurity
• Incursions of pests and diseases are among the biggest risks to the sector and could be catastrophic to the NZ economy.
The incoming government can help by:
o Continuing to invest in a strong biosecurity system aimed at keeping pests and diseases out and working with industry to improve capability and systems to respond to those which arrive.
Animal Welfare
• NZ has high animal welfare standards. Farmers and meat processors work hard to ensure their animals are well cared for and treated humanely.
The incoming government can help by:
o Continuing to partner with the sector to enhance the animal welfare systems in NZ and promote NZ’s good reputation in this area.
Innovation
• Huge innovation and productivity improvements have occurred in the sheep and beef sector, onfarm and in processing. The sector is committed to striving for further improvements.
The incoming government can help by:
o Continuing to partner with the sector and ensuring its investment strategies include long-term support for sheep and beef sector innovation and growth.
Employment
• We represent NZ’s largest manufacturing industry and our processing companies employ some 25,000 people nationwide. We strive to employ NZers first. Every year, however, we need to bring in about 100 Halal slaughterers to support a fundamental component of the industry’s business model and to meet Halal regulatory requirements. The processes for this are lengthy and complex and expose the industry to significant risk.
The incoming government can help by:
o Putting Halal slaughterers on the long-term skills shortage list or finding other practical solutions to provide a secure pathway to source necessary workers from overseas.
Health & Safety and Training
• Working with livestock and machinery means the sector has health and safety hazards that need to be well managed. Industry leaders are committed to improving the sector’s health and safety performance and creating a safer work place.
• Having a skilled workforce is extremely important to the sector and we are investing in training systems to upskill workers, promulgate industry standards and promote the sector as a career pathway.
The incoming government can help by:
o Supporting a strong partnership between WorkSafe NZ and industry; and
o Supporting the sector in developing new qualifications to accelerate career pathways and maintaining and expanding the funding model with the Primary ITO.
| A RuralNews release || September 21, 2017 |||
Daylight Saving this weekend is a good time to check on the amount of sleep you are getting to keep yourself and others healthy and safe as you work, says WorkSafe Chief Executive Nicole Rosie.
“People who are tired and fatigued are 30% more likely to have an accident. Both businesses and workers have a responsibility to manage fatigue and the risks that arise from it.
“Work and personal demands can often make it difficult to get the sleep we need to function safely throughout the day,” Ms Rosie said.
WorkSafe has a fatigue quick guide with information for businesses and workers to explain their respective responsibilities to manage fatigue.
Fatigue is a work-related health risk if it reduces our ability and alertness to work safely and effectively. Fatigue can affect people’s feeling of wellness and wellbeing and impact productivity. It can also lead to safety incidents.
It is a state of physical and/or mental exhaustion which can impact our ability to function safely. This may lead to errors and an increase in workplace health and safety incidents, with potentially serious consequences for both workers and businesses.
“According to our 2015 Health and Safety Attitudes and Behaviour Survey, 43% of workers in sectors with a high risk of injuries and fatalities reported working when overtired,” Ms Rosie said.
WorkSafe is currently working with other regulators including the New Zealand Transport Agency, Civil Aviation Authority and Maritime New Zealand to look at ways to better support workers and business to manage fatigue in the workplace.
The aim is to develop key cross-industry information for businesses, workers and their families about how to recognise and manage fatigue in the workplace.
| A Worksafe release || September 21, 2017 |||
Acquires CommInsure and Sovereign, enters long-term distribution partnership with CBA and ASB
AIA announced today that it has reached an agreement to acquire CommInsure in Australia and Sovereign in New Zealand. It will also enter into 20-year strategic bancassurance arrangements with Commonwealth Bank of Australia (CBA) in Australia and ASB Bank (ASB) in New Zealand. Subject to regulatory approvals, the acquisition is expected to be completed in 2018.
The acquisition and partnership agreement will deliver a range of important benefits to AIA and our stakeholders, including:
It will make AIA the leading life insurer in both Australia and New Zealand’s profitable individual life protection segment It will be immediately accretive to AIA’s earnings It will add to AIA’s strength in retail and group insurance by materially expanding and strengthening AIA’s distribution capabilities and customer reach to CBA and ASB’s combined base of 13 million customers
AIA Australia and New Zealand CEO, Damien Mu said: “The scale and nature of the agreements with CBA and ASB represent an enormous step forward for AIA in the pursuit of our purpose to make a difference in people’s lives, and will significantly transform and expand our market leading presence in Australia and New Zealand.”
“By partnering with CBA and ASB, we can bring together the expertise of each organisation to further improve our offering to help champion Australia and New Zealand to be the healthiest and most protected nations in the world. This is an excellent outcome for all customers that we help not only through financial protection, but also by improving their health and wellbeing.”
Mr Mu said, “We have a strong history of building trusted, engaging and enduring partnerships with leading financial institutions in Australia, New Zealand and across the region. We look forward to welcoming our new team members from CommInsure and Sovereign in due course, and to building a successful partnership with CBA and ASB. We remain absolutely committed to our existing partners, and will be focused on ensuring that we continue to deliver the best possible outcomes for them and their customers.”
AIA Regional Chief Executive, Bill Lisle, said: “AIA Group is deeply committed to Australia and New Zealand and we are excited about our future in both markets, particularly in light of the highly attractive agreement we have announced today. We have a high performing and very experienced team in Australia and New Zealand, which is part of AIA Group, one of the largest and strongest life insurance companies in the world. We look forward to ensuring that the acquisition and bancassurance partnerships we have agreed to with CBA and ASB generate very positive and enduring benefits for our customers in both markets and indeed all of our stakeholders.”
Theresa Gattung, Chair of AIA Australia, said: "This is an exciting opportunity for AIA Australia to further strengthen our leading positions in both markets and to serve our customers. We have a great team, and we look forward to expanding on this with the Sovereign and CommInsure teams in due course, and building our partnership with CBA and ASB. I would also like to thank my fellow Board Members Peter Yates, Elizabeth Flynn and Paul Costello for their contribution and support during this time."
ABOUT AIA AUSTRALIAAIA Australia Limited is an independent life insurance specialist with over 40 years of experience building real and sustainable partnerships. The company employs over 900 people. AIA Australia offers a range of products that protect and enhance the lives of more than 3.3 million Australians and is widely recognised as a market leader in product innovation and development. In 2016, AIA Australia paid over 16,000 claims totalling over AUD$1.1 billion.
AIA Australia is the country’s second largest life insurer with a market share of 14.6% and total inforce premium of over AUD$2.3 billion. The company works closely with major financial institutions and corporate partners to provide life insurance solutions for their customers. AIA Australia is the number one group insurer by inforce premium. In addition, AIA Australia is the fastest growing provider of retail life insurance products sold through financial advisers, ranked number one for new business on a rolling 12 month basis, with a market share of 16.8%. AIA Australia also works with a network of affinity partners that distribute life insurance products. By having a partnership philosophy at the core of its business, AIA Australia is focused on building genuine relationships and delivering real value to its business partners.
In March 2014, AIA Australia introduced ‘Vitality’ – the world’s leading scientifically-backed health and wellness programme, to the Australian market. AIA Vitality aims to be the catalyst for real change to the positive health outcomes of Australians.
ABOUT AIA NEW ZEALANDAIA New Zealand is a member of the AIA Group and employs over 140 people. Since the company arrived in New Zealand in 1981, AIA New Zealand has consistently provided the market with innovative personal and business insurance products that suit the Kiwi way of life. Over the last quarter, AIA New Zealand led the market for new business sales in corporate solutions.
Today AIA offers a complete range of risk management products that focus on the needs of customers. AIA New Zealand is based in Auckland with regional offices in Wellington and Christchurch. However, through a network of financial advisers, AIA reaches every corner of the country.
AIA New Zealand is a member of the Insurance and Savings Ombudsman Scheme (ISO) and the Health Funds Association of New Zealand (HFANZ). Standard and Poor’s reaffirmed AIA New Zealand’s insurer financial strength rating at AA- in June 2016.ABOUT AIA
AIA Group Limited and its subsidiaries (collectively “AIA” or the “Group”) comprise the largest independent publicly listed pan-Asian life insurance group. It has a presence in 18 markets in Asia-Pacific – wholly-owned branches and subsidiaries in Hong Kong, Thailand, Singapore, Malaysia, China, Korea, the Philippines, Australia, Indonesia, Taiwan, Vietnam, New Zealand, Macau, Brunei, Cambodia, a 97 per cent subsidiary in Sri Lanka, a 49 per cent joint venture in India and a representative office in Myanmar.
The business that is now AIA was first established in Shanghai almost a century ago. It is a market leader in the Asia-Pacific region (ex-Japan) based on life insurance premiums and holds leading positions across the majority of its markets. It had total assets of US$200 billion as of 31 May 2017.
AIA meets the long-term savings and protection needs of individuals by offering a range of products and services including life insurance, accident and health insurance and savings plans. The Group also provides employee benefits, credit life and pension services to corporate clients. Through an extensive network of agents, partners and employees across Asia-Pacific, AIA serves the holders of more than 30 million individual policies and over 16 million participating members of group insurance schemes.
AIA Group Limited is listed on the Main Board of The Stock Exchange of Hong Kong Limited under the stock code “1299” with American Depositary Receipts (Level 1) traded on the over-the-counter market (ticker symbol: “AAGIY”).
| An AIA release || September, 21 |||
Former McLaren employee John Nicholson, who prepared Can-Am and F1 engines for the team and played a key role in the World Championship victories of 1974 and 1976, has passed away in his native New Zealand. He was 75.
Nicholson was also a gifted driver in his own right, and he even briefly made it to F1, competing in the 1975 British GP as well as four non-championship races. Although he never raced a works McLaren, he did a lot of testing for the team, driving Can-Am, F5000, F2 and on occasion F1 machinery.
John was born into a mechanical background in 1941. His father, who was an armourer in the air force, raced powerboats in New Zealand, and in his youth John helped to prepare them. From school he went to work for an engine reconditioning business, and he undertook a four and half year engineering apprenticeship – and in his final exams he earned the top marks in the whole country.
He had a few races in his father’s boat before he began competing on four wheels, initially in karts. He then acquired a Lotus Elan, and subsequently a Lotus 27 single-seater. In 1968 he took part in the New Zealand GP, a round of the Tasman Series – and thus joined a grid that included Bruce McLaren, Denny Hulme, Jim Clark, Chris Amon, Pedro Rodriguez and Piers Courage. In an uncompetitive car he finished ninth, albeit many laps down.
He later replaced the Lotus with a year-old Brabham BT18. He then decided to head to England, with an ambition to race in F3, and after earning some cash as a mechanic in the Far East he arrived on May 9th 1969. Like many Kiwis before him, he saw McLaren as his natural home.
“I’d contacted a few friends in Britain concerning a job here and had written to Bruce McLaren,” he said in a 1974 Autosport interview. “But I’d never met him, nor knew who he was. I arrived on the Thursday, and went straight to Earls Court.
“Meanwhile my friends had talked to Phil Kerr at McLarens and on the Saturday I took the Green Line bus down to see McLaren. I went in round the back and two guys recognised me, Alan McCall and Jimmy Stone, but there was this guy with his back to me. When I asked to see Mr McLaren he turned round and said, ‘I presume you’re Mr Nicholson.’”
He’d got the job – he was given responsibility for building the team’s Can-Am Chevy V8 engines, working under the supervision of American George Bolthoff. Bruce duly won the 1969 Can-Am title with engines that Nicholson had helped to prepare in England. John’s driving talents came to good use, and he did some testing at Goodwood.
In late 1969 Bolthoff came up with the idea of setting up an engine shop in the USA at which to prepare both Can-Am and Indy engines. The plan was that John should start the 1970 working in England, before moving to this new McLaren Engines Inc facility in Livonia, near Detroit.
It was of course to be a fraught season for the team. In May Hulme suffered serious burns at Indianapolis, and then in June Bruce was killed at Goodwood in a Can-Am testing accident.
Having headed to the States John wrote to team boss Teddy Mayer saying he wanted to return to the UK, and he did so at the end of the year, after the recuperating Hulme had clinched the 1970 Can-Am title. His timing was good, because Cosworth announced that for 1971 it didn’t want to service the whole F1 grid’s DFV engines. Nicholson was given the job of preparing those of McLaren.
“I’d never seen a DFV in my life,” he said. “I pulled one apart and thought, ‘I’d better go to Cosworths for a couple of days.’ There I was helped by Alan Peck and learnt by pulling them apart and putting them together. With no knowledge, but the help of four good guys and a small place, we set to work doing McLaren’s DFVs. I had to supervise, and it took two weeks for one man to build an engine.
“They didn’t give much BHP, about 400 to 420, although suddenly we got a 440 engine, ‘061,’ Denny’s favourite. These freak engines turned up in many teams during the 1971 season.”
In March 1972 Hulme scored McLaren’s first GP win for three years, and the first with an engine overseen by John, at Kyalami.
It was a busy time for John, for in 1971 he also resumed his own racing career, driving a March in the Formula Atlantic series, before moving to a Lyncar chassis for ‘72. At one stage he crunched the nose at Oulton Park, and unable to afford he a new one, he fitted a McLaren F1 nose that Hulme and tried and rejected!
At the end of 1972 he was offered a job by March Engineering – company boss Max Mosley wanted him to prepare the team’s BMW F2 engines, and there was even a chance for John to race as well. He eventually rejected the offer, but he had itchy feet, and it had set him thinking.
“I went back to McLarens determined to leave, go it alone, and continue in Atlantic. It was a Saturday afternoon and when I got back, Teddy Mayer was at McLarens. I told him what I was going to do, but he wouldn’t hear of it. We went to Phil Kerr’s house that evening, and by the time I’d left, we had a business contract to go into overhauling McLaren’s DFVs as a separate business.”
John found a premises in Hounslow, and with all bar one of his original colleagues, established Nicholson-McLaren Racing Engines in early 1973. That year Denny Hulme scored the new company’s first GP win in Sweden, and later Peter Revson won at Silverstone and again in Canada.
Meanwhile John’s own racing career flourished as he won the 1973 British Formula Atlantic title, repeating his success in 1974. That year also made own foray into F1 with a Lyncar chassis, with which he did the two British non-championship races, although he failed to qualify at the British GP. He would make his one and only Grand Prix start at Silverstone in 1975, crashing out in the rain. The main problem he had was finding the time to fit his own racing around his business, and by 1977, he had decided to hang up his helmet.
He was a busy man off track. In 1974 McLaren ran a third works car, with Hulme and Emerson Fittipaldi in Marlboro colours, and Mike Hailwood in Yardley livery, so there were more engines to service. In addition he picked up work from Graham Hill’s Embassy team. That year Fittipaldi scored McLaren’s first World Championship win, powered by John’s engines.
And the race wins would keep on coming. Fittipaldi finished second in the World Championship in 1975, and then James Hunt scored a sensational title success in 1976. Hunt continued to be a pacesetter in 1977, winning three races.
McLaren then went through a bad patch until Ron Dennis came on board at the end of 1980, and John Barnard’s carbon chassis was introduced for 1981. John Watson and Niki Lauda scored some memorable successes, but the tide was turning towards turbos, and the days of the Cosworth were numbered.
In late 1983 McLaren began the switch to the Porsche-built TAG Turbo, and Nicholson’s involvement with the team was over. However, there would continue to be a link as John turned his attention to servicing DFVs for many historic racing contenders, including of course some McLarens.
John retired to New Zealand several years ago, but the company he founded is still operational, in racing, engineering and aviation, although there has been no direct connection with McLaren for some time.
| A McLaren.com release || September 20, 2017 |||
Memorandum of understanding signed to combine European steel activities in 50/50 joint venture
Positioning as strong quality and technology leader
Annual synergies of €400 million to €600 million expected
Signing of agreement targeted for early 2018 and closing by 2018 year-end
thyssenkrupp and Tata Steel have today signed a memorandum of understanding to combine their European steel activities in a 50/50 joint venture. Their aim is to create a leading European flat steel player to be positioned as quality and technology leader. The new entity is set to have pro-forma sales of about €15 billion and a workforce of about 48,000, currently at 34 locations. Shipments are envisioned to be about 21 million tons a year.
Dr. Heinrich Hiesinger, CEO of thyssenkrupp AG: “Under the planned joint venture, we are giving the European steel activities of thyssenkrupp and Tata a lasting future. We are tackling the structural challenges of the European steel industry and creating a strong No. 2. In Tata, we have found a partner with a very good strategic and cultural fit. Not only do we share a clear performance orientation, but also the same understanding of entrepreneurial responsibility toward workforce and society.”
Natarajan Chandrasekaran, Chairman of Tata Steel: “The Tata Group and thyssenkrupp have a strong heritage in the global steel industry and share similar culture and values. This partnership is a momentous occasion for both partners, who will focus on building a strong European steel enterprise. The strategic logic of the proposed joint venture in Europe is based on very strong fundamentals and I am confident that thyssenkrupp Tata Steel will have a great future.”
To be named thyssenkrupp Tata Steel, the planned joint venture will be managed through a lean holding company based in the Netherlands. It is to have a two-tier management structure comprising a management board and a supervisory board. Both boards are to have equal representation from thyssenkrupp and Tata. The codetermination structures in Germany, the Netherlands and Great Britain will be retained.
thyssenkrupp intends to contribute its Steel Europe business to the planned joint venture. There are also plans for the joint venture to include thyssenkrupp MillServices & Systems GmbH, a steel mill services provider that is part of the Materials Services business. Tata would add all of their flat steel activities in Europe.
The memorandum of understanding signed today paves the way for thyssenkrupp to involve employee representatives at thyssenkrupp AG and in the Steel business in the process ahead on an ongoing basis. All employee participation rights will continue to be respected as before.
In the months ahead, due diligence will be conducted. In the process, the negotiating parties will give each other access to confidential business documents to the extent permissible between competitors. Based on this as well as on discussions with the entire Supervisory Board, it is envisaged to sign a contract in early 2018. Closing – the effective start of the joint venture – could take place in late 2018 following antitrust approval by the relevant authorities.
Synergies within the joint venture
In the initial years – from closing onward – the joint venture partners plan to focus on establishing the joint venture and leveraging synergies. These are anticipated among other things from integrating sales, administration, research and development, joint optimization of procurement, logistics and service centers as well as improved capacity utilization in downstream processing. After the ramp-up phase, the joint venture partners expect annual synergies of €400 million to €600 million.
Additionally, the production network is to be reviewed starting in 2020 with the aim of integrating and optimizing the production strategy for the entire joint venture. It is not yet possible to quantify the additional synergies from this integration in detail. The scope for optimization also depends on numerous external factors such as the outcome of the Brexit negotiations and the implications that follow. Other external parameters include the development of the regulatory environment in areas such as emission trading and international trade policy.
The two joint venture partners expect that leveraging the cost synergies across the entire entity will require a reduction in workforce over the years ahead by up to 2,000 jobs in administration and potentially up to 2,000 jobs in production. This burden is expected to be shared roughly evenly between the two parties, which means a total of about 2,000 jobs at thyssenkrupp.
“We will not be putting any measures into effect in the joint venture that we would not have had to adopt on our own. On the contrary: By combining our steel activities, the burdens for each partner are lower than they would have been on a stand-alone basis,” said Hiesinger.
The steel industry has faced massive challenges in Europe for many years: Steel demand is characterized by a lack of dynamic. There is structural overcapacity in supply and constantly high import pressure. This leads to the fact that various stages in the value chain are operating well below capacity. Consequently, all producers are under pressure to fill capacity and forced to pass on restructuring gains to the market time and again. The result is a downward spiral and a need for restructuring about every three to four years, with major steel assets coming under threat of closure in the medium term.
Reasons for partnering with Tata Steel
There are five reasons why combining the European steel activities of thyssenkrupp and Tata is the best possible next consolidation move:
Economies of scale: Economies of scale are a key success factor in a market caught up in ongoing consolidation. Combining the No. 2 and No. 3 in Europe results in a powerful new No. 2 for quality flat steel with a very competitive market position and promising growth prospects.
Complementarity: The businesses of thyssenkrupp and Tata are a good complementary fit. thyssenkrupp is stronger in the OEM sector while Tata’s strength lies with industrial customers. The main operating locations in Duisburg, IJmuiden and Port Talbot have good logistics links and serve customers in different, economically powerful regions. That makes for significantly broader overall coverage of customer sectors throughout Europe.
Performance orientation: The steelworks of thyssenkrupp and Tata rank among the most efficient facilities in Europe. Thanks to effective cost management, both producers operate at a profit. The two companies have paved the way for this over recent years, piece by piece and independently of each other: Tata, for instance, with the restructuring of Port Talbot and by selling long steel activities, and thyssenkrupp with the sale of CSA and capacity adjustment at HKM.
Innovative strength: Both partners aspire to quality and technology leadership in the European steel industry and continually develop innovative products and solutions for customers. High-tech steels are frequently the basis of industrial value chains in Europe and a key competitive differentiator.
Culture and capabilities: The two partners each have a highly capable and dedicated workforce who strongly identify with their company. thyssenkrupp and Tata have a cultural DNA equally characterized by the will to embrace change in order to secure their future. And both companies have the backing of strong shareholders through a trust structure that perpetuate the ideas and values of the original owners.
Further milestone on strategic way forward
Steel Europe will be accounted for on the balance sheet as a discontinued operation after signing. From closing of the transaction, the 50-percent share in the joint venture will be accounted for using the equity method, meaning based on the proportionate carrying amount of the investment. When the joint venture comes into effect, this will bring about a significant improvement in key balance sheet ratios for thyssenkrupp AG, most notably in the equity ratio and in gearing (ratio of net financial debt to equity). At the same time, the move creates a solid financial structure for the steel business.
The planned joint venture marks another key milestone on thyssenkrupp’s strategic way forward. In its evolution into a strong industrial group, thyssenkrupp has two priority aims: reducing dependency on the highly volatile steel business and enabling optimum development of all business areas.
Heinrich Hiesinger, CEO of thyssenkrupp AG: “We have always targeted the best solution for thyssenkrupp. A joint venture with Tata is the only option that addresses the structural overcapacities in the European steel market, that creates substantial added value through synergies and at the same time is in line with our corporate culture. This also marks a clear commitment to our roots, as the joint venture enables thyssenkrupp to retain its involvement in steel.”
Palace of the Alhambra, Spain
By: Charles Nathaniel Worsley (1862-1923)
From the collection of Sir Heaton Rhodes
Oil on canvas - 118cm x 162cm
Valued $12,000 - $18,000
Offers invited over $9,000
Contact: Henry Newrick – (+64 ) 27 471 2242
Mount Egmont with Lake
By: John Philemon Backhouse (1845-1908)
Oil on Sea Shell - 13cm x 14cm
Valued $2,000-$3,000
Offers invited over $1,500
Contact: Henry Newrick – (+64 ) 27 471 2242