Behr started operations in Feuerbach near Stuttgart, not far from either DaimlerChrysler or Porsche. So it is really no surprise to find a company that serves the leading players in the automotive industry in this area.
With its roots in Germany, Behr has successfully followed automotive producers around the world. Today it delivers products from 14 factories in Germany, France, Spain, Czech Republic, Brazil, South Africa, the US and India. In addition, Behr recently decided to move closer to the Chinese market by setting up a production unit in Shanghai.
Today, aluminium has grown to account for around 80 percent of the materials used in heat exchange functions (the remaining 20 percent are mostly synthetics). Aluminium’s unique properties, such as light weight, corrosion resistance and good weldability make it ideal for heat exchanger applications.
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| MAJOR CUSTOMER: "Behr is an important and complex customer," says Pascal Wagner (left), representing Hydro, together with purchasing manager Christian Wolf from the Behr group. |
“Although our main area is the automotive market, the Behr group also delivers to other branches of the transport sector, such as trains, airplanes and helicopters,” says purchasing manager Christian Wolf.
Technical collaboration
Hydro is the most important supplier of aluminium for Behr’s products, mainly rolled materials, but also extrusions, all of which pass through Behr’s production plants on their way to a variety of automotive producers all over the world.
The rolled strip in various alloys and formats comes from Hydro plants in Grevenbroich and Hamburg in Germany, Irurtzun in Spain, and in the future will also be delivered from Holmestrand in Norway, notes Hydro sales manager Pascal Wagner.
For a company with global operations such as Behr, it is important to work closely on product development with its global suppliers. The aluminium used must be of top quality and able to withstand significant stresses. The technical cooperation between the two companies takes place through regular meetings between Behr’s development department and representatives from Hydro’s research center in Bonn, Germany, in Karmøy, Norway, and in the technical departments at other Hydro plants.
Wolf points out that product development has to allow for the various standards in the markets to be served. Regulations vary between Europe, the US and Asia, for example on the thickness of the tubing, strength values, corrosion resistance and so on.
Behr’s main research activities are carried out at the center in Feuerbach, where a wind channel has been constructed. Research and development work also takes place at a plant Behr took over from DaimlerChrysler in Ohio in the US.
Central purchasing system
The Behr group has grown steadily and is now in a period of expansion, as illustrated by the decision to establish an operation in China.
“We follow up our customers through a global logistics system. It is also extremely important to promote our leading technological position, as customers are particularly interested in this,” Wolf points out.
Despite the global nature of the company, purchasing is done centrally rather than from different suppliers in each country. This way, it is easier to gain a good overview of aluminium prices compared with other input factors. Behr purchases a total of more than 50,000 tonnes a year from the large aluminium producers, not least Hydro
Market volumes are growing, and more and more cars in all categories now include air conditioning. In the US, this applies to 95 percent of all cars. The figure for Europe is 80 percent, and major increases are expected particularly in China in the years to come.
Overview
Wolf sees his job as purchasing manager in a strategic context. This involves more than just maintaining an overview of prices. He works with a global view, getting to know local cultures, raw materials and market conditions, and seeing all of this in a global perspective.
It is a definite advantage to be familiar with the suppliers’ technology and Behr’s in-house processes, as he points out. In other words, you need a total overview. It is also important to have an organizational network and to get feedback on material specifications. Last, but not least, you have to be able to negotiate:
“When we’re discussing prices we have to allow a margin so that our suppliers are able to continue their research work. We are both dependent on that.”
