Chairman of the Board / CEO, VEKA AG
Network VEKA AGM 2009 Interviews - One
Network VEKA AGM 2009 - Interview with VEKA Group chairman Andreas Hartleif and Dave Jones Managing Director of VEKA ...
About Andreas Hartleif
In a 2009 interview, Andreas Hartleif, Chairman of the Board and CEO of the VEKA Group, stated that the UK market is "still one of the biggest" in Western Europe and "from the Strategic point of view very important." He denied rumors that VEKA would pull out of the UK, saying "absolutely 100%" that the company's commitment remains. Hartleif described VEKA as a global player in PVC profile extrusion for windows and doors, with revenues of 728 million EUR the previous year, and noted the company's aim to be number one in its industry while acting locally in each market. Hartleif acknowledged the difficult global economic climate, particularly in the United States and parts of Europe. He said that VEKA had experienced "tremendous good years" in emerging markets with growth rates of 30 to 50 percent, but that growth had slowed to around 20 percent. He emphasized the need to reduce cost bases and improve efficiency while developing new product lines, including energy-saving products and recycling, to remain competitive.
Transcript (10 segments)
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Interviewer0:07
Andreas Hartleif all the way from Germany. So what position do you enjoy as a global company?
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Andreas Hartleif0:30
For the last 40 years we were able to build up the company as one of the global leading players in our specific industry, which is extrusion of PVC profiles for windows and doors. We are now between number two and number three, with a size of 728 million euros last year. We would like to be number one, but that is not the target. We think global act local is really true. We have a global market in our view, but we have to act local because all markets are different and specific. We want to play a major role in each specific market of relevance, and there are many markets around the globe. So being such a global player has a real benefit. In the UK, there is a strong background of technology and a good financial position. We don't want to give up our position in strategically relevant markets. The UK market is definitely one of those.
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Interviewer2:03
Overall, obviously we're talking about a world economic crash. Has that affected the group substantially?
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Andreas Hartleif2:11
Hopefully not substantially, but definitely there is an impact. We had some tremendous good years in emerging markets, especially in the last couple of years, with growth rates of 30 up to 50%. It was difficult to finance all that expansion. But now we're down around 20%. It's difficult to say if this is more or less than competitors are doing, but looking at global market positions, it's definitely very difficult all around the world, especially in the United States and also in some areas in Europe.
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Interviewer2:57
Do you think that we can be optimistic about anything in the UK, specifically for VEKA?
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VEKA UK Representative3:05
I think you've already alluded to it. The market has been very difficult. We're in a different place than 18 months ago. The world is different. As a business, we've adapted tremendously to the new challenges. We'll continue to do that. We've got great support from the group. That's one of the strong points of being in an international group. The markets are affected differently, but in the UK we're working very hard on product development. We've shown some products: the vertical slider, the Fuller reversible, and the amulet door. There are other things in the pipeline on energy efficiency that will be coming out.
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Interviewer3:48
Good. That leads me to a key question that's been banging around the UK for a year or two. Andreas, can you once and for all put to rest any rumors that VEKA are pulling out of the UK? I think we've all heard rumors. Can you make a statement one way or another? Is VEKA pulling out of the UK?
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Andreas Hartleif4:17
That's been a rumor. Very clear: definitely not. As I said, the UK market is still one of the biggest in Western Europe. Strategically, it's very important. What we need to do is reduce our cost base and improve our efficiency, both locally and through our combined networking concept across Europe, to be competitive tomorrow and in the coming years. There are many aspects for growth potential and opportunity in the UK. We need to look for new product lines, development in energy-saving products, recycling. All that was mentioned. VEKA as a group is in a very capable position because we have the services and products, but we need to develop that more specifically in each country. The UK is definitely a little different from the rest of Europe.
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Interviewer5:30
Will VEKA PLC continue to support Network VEKA in the UK?
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VEKA UK Representative5:34
Absolutely, 100%. Our commitment is there on the basis of trade and retail. It's our full marketing package. It needs to be exploited even further. It's been great up to now, but the market has changed, the economic climate has changed, and we need to adapt. We're 100% behind it. We're much more aligned between VEKA and Network VEKA going forward with the same goals. Absolutely, yes.