Helmut Burmester: "An excellent fit"
(Jan. 7, 2002) "We have embarked on a new mission and think that Hydro will be a very good partner for us. Two excellent groups are joining forces," says Dr. Helmut Burmester, VAW AG top executive.
 Helmut Burmester |
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What opportunities do you see for the combined Hydro and VAW aluminium company?
"The new company's size and market reach will enable it to compete with the two big North American companies, Alcoa and Alcan. In the European market, our group will assume a leading position in almost all important downstream sectors. Our combined activities will also extend to most of the key growth regions in the world."
The two companies as they stand today are largely complementary. What will it mean to become a larger, stronger full-range supplier?
"I think that the automotive industry, in particular, with its increased requirements for lightweight design and reduced fuel consumption will appreciate the new group's very extensive range of products and manufacturing techniques. Given the companies' excellent fit, with Hydro and VAW bringing their own specific strengths and core competencies, customers will benefit from a much broader and deeper range of expertise."
VAW is much larger than Hydro in the rolled products sector. What opportunities, in your opinion, does the merger offer in this area?
"The new group will immediately strengthen its position as one of the biggest in rolled products in Europe. With rolling mills in four European countries, we will have the opportunity to focus on specially selected products at each plant. The strong metal base of Hydro is a crucial prerequisite for future growth in the rolled products sector. We aim to exploit the expansion opportunities not only in the building, lithography and packaging markets but also in the automotive industry where we expect to see the highest growth rates in the coming years."
Both companies are actively involved in the recovery and recycling of aluminium. What prospects do you see for the aluminium industry in this particular sphere?
"Sustainable growth is one of the most important topics in today's world. Aluminium recycling provides an excellent example of how an industry can contribute to the protection and sparing of our natural resources. Our stakeholders clearly expect us to participate in the recycling business. Not only that, however, recycling is a profitable business which makes good economic sense."
VAW has been "for sale" for a considerable length of time. How do you and the organisation feel now that this interim period is over and you will be integrated into another industrial group?
"We are more than glad that the period of uncertainty now lies behind us. We have embarked on a new mission and think that Hydro will be a very good partner for us. Two excellent groups are joining forces. Certainly, there are some concerns about what changes the integration of the two groups will bring. I think, however, that it is evident to most of us that these changes will provide far more opportunities than threats."
What do people at VAW expect in the coming months? What is important to them when they look at the integration of the two groups?
"I think that our top priority is to define the new organisational structure as quickly as possible. We then have to assign the respective management positions and start the post-merger integration process. It is important that our people - both at Hydro and VAW - understand this process and commit themselves to it wholeheartedly. Equally important is that we promote the best people, no matter whether they come from Hydro or from VAW. We need people who will not only drive the business forward but are also able to play a key role in the integration effort."
We all know that cultural differences exist between companies and countries. How do you suggest we avoid the pitfalls that so many others seem to fall into?
"I strongly believe that we should respect each other's culture and tradition, and the way we do business. Both of our companies are highly successful and there is a good reason for this. We should share our best practices, not just with regard to products, production and processes but also with respect to our values and vision. We should work towards blending the best of Hydro and VAW together and shaping a common purpose and identity."
What are the political challenges facing the aluminium industry in the European Union?
"Over the past few years, the EU has been very active in pushing ahead with new legislation, particularly in the areas of energy and climate but also in packaging - all of which affect our business in one way or another. We devote a considerable amount of time and effort to communicating with politicians and stakeholders, helping them understand how their policies have an impact on our business, and how our company is already a major contributor to energy saving, emissions reduction, waste management and recycling."
You have been one of the champions of the Aluminium for Future Generation's programme. How should we as an industry position aluminium in the future?
"Aluminium for Future Generations is a key communications initiative. It is aimed at raising the profile and the visibility of the European aluminium industry with stakeholders. Our industry has a very positive story to tell the outside world. Aluminium can make a substantial difference in such fields as packaging, transport and construction and contribute to the everyday needs of present and future generations. This is the message we want to get across in Europe and aim to achieve it with our programme of on-site events, research studies and consultation meetings."
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