trade investment

January~February | 2011 € 6,90 | www.trade-investment.eu

„What makes Goldbeck

Predicaments and stand out in the construction
prospects industry is that most of the
construction is carried out in
the controlled environment of
World future energy factories,“
summit 2011
says Uwe Brackmann,
the Managing Director of
Goldbeck Group.
Methods of improving
the supply chain

KUOPION ENERGIA
RWE
ALLAMI AUTOPALYA
ASFINAG
DS FLEISCH

Jeff Bezos
The man who sells you anything
TRADE FAIR OF ELECTROTECHNICS, ELECTRONICS
AND POWER ENGINEERING

www.electroncz.cz

12. – 15. 4. 2011

EXHIBITION CENTRE PRAGUE LETŇANY
PRAGUE, CZECH REPUBLIC
 The Eurozone:
Predicaments and
Prospects
Speaking to industry leaders towards the end of 2010
it was evident that businesses have breathed a sigh of
relief in recognition that we are firmly settled into the
quiet after the storm of the financial crisis. 2011 was
set to start with an air of gentle confidence, humility
and readiness to prepare, very carefully, to rebuild and
reinforce. However, turning our attention to the bigger
picture, to the economies within which we trade and
invest, the question of the future of the eurozone, and
the euro, is now where all apprehension is focused.
The last year saw Greece and then Ireland quickly fall
into unprecedented economic crisis, with no foreseeable
way out. The greater the debt they fell in to, the less
confidence potential lenders had and interest rates
therefore continued to rise, making debts even more
unmanageable. The short-tem fix came in the form of
emergency credit from the eurozone’s stronger nations.
Now, several months and a degree of stability later,
leaders are tackling the problem of how the debts of our
struggling nations can be managed so as to safeguard
the future of the euro and the eurozone’s economy.
Some commentators are observing that the only
way to improve the euro’s prospects is to start the
process of restructuring countries’ debts now, urging
that original plans to postpone any restructuring and
reforms have resulted in uncertainty
amongst investors, who are
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Editor in Chief : Katerina Urbanova
Editor: Gabrielle Brown
Production Director: Mgr. Lukáš Ševčík
Business Development Manager: Marek Rottenborn
Sector Managers: Jan Kahanek, George Tacticos, Jiri Dohnal
Writers: Diane Mannion, Dave Foxall, Silke Humphrys,
Gabrielle Brown
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Trade & Investment | www.trade-investment.eu
left unsure what the ultimate effects of their debts will
be. Eurozone governments will have to raise funds of
€560 billion, according to UniCredit, with banks facing
considerably heftier re-financing targets. Future bail-
outs are being debated and considered, but some are
arguing that the worst way to tackle debt is to add to
it with further debt.
Those trying to rebuild their businesses in struggling
nations, such as Greece, Ireland, Spain and Portugal, are
finding themselves operating amidst unprecedented
austerity, with severe spending cuts and tax increases.
Whereas these measures are imperative to long-term
stability, they will hinder growth and invariably put
even greater pressure on the euro. Nonetheless,
amidst this disquiet are some positive glimmers of
hope: Europe’s biggest economies are proving to
remain strong, and Greece, for example, is taking the
opportunity to ‘start again’ re-establishing itself as a
nation of ‘green industry’.
The European Union is the world’s largest economy,
therefore as naive as it may seem to proffer, any more
severe failings in the eurozone is simply not an option.
2011 will unquestionably prove to be a milestone year
in the history of the euro, and with bated breath we
hope that with careful planning and clever cooperation
the euro will prevail.
Gabrielle Brown
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Website: www.trade-investment.eu
3 January~February 2011
 Content

/ Editorial
The Eurozone: Predicaments and Prospects ............................................ 3

/ News from industry sectors

Energy
Construction ................................................................................................ 13
Automotive ..................................................................................................16
Finance and banking .................................................................................. 20

/ Story

Methods of improving the supply chain

/ Companies

GOLDBECK | Building a Solid Future from Innovation and Service

ÁLLAMI AUTÓPÁLYA KEZELŐ | Guardians of the Highways ........................................38
BAVARIAN MOTORWAYS AUTOBAHNEN | Keeping Bavaria Moving .....................42
ASFINAG INTERNATIONAL GmbH | For Whom The Road Tolls .................................46
RWE RHEINRUHR VERTEILNETZ GmbH | Successful Partnerships ...................50
SIEMENS MOBILITY SWITZERLAND | Connecting Planes, Trains and
Automobiles’560 ...................................................................................................................54
DALKIA POLSKA S.A | Initiatives in Energy sector .....................................................56
KUOPION ENERGIA OY | Local Efficiency ...................................................................60
ENEMONA | An Environmental Future .............................................................................64
D&S Fleisch | Meat Matters .............................................................................................68

/ Technology news
NRL Works to Improve Understanding of Climate Change .......................................................72
Evotec to Collaborate With Takeda Cambridge for Multi-Target Hit Identification ......................73
Technology and partnerships key to meeting future energy demand ........................................74
Technology takeovers are expected to pick up in 2011 ............................................................75

/ Interview

Jeff Bezos
the man who sells you anything

Trade & Investment | www.trade-investment.eu 4 January~February 2011

 6
Energy
World Future Energy Summit 2011 Opens with 33 Inter-
national Official Delegations

eed Exhibitions, organiser of

the World Future Energy Sum-
ticipate at the summit?s ope-
ning ceremony and afternoon p.
mit (WFES) 2011 taking place policy forum. More than 3000

24
in Abu Dhabi 17–20 January delegates have confirmed
2011, revealed today that 33 participation for the first day
official delegations will par- of the summit.

p.
Focus on Logistics:
Methods for Improving the Supply Chain

Getting the right product to time immemorial, but just

the right person exactly on how to achieve this has un-
time is the essential mission dergone remarkable trans-
of logistics. This basic con- formations over the last dec-
cept hasn’t changed since ade or so.

GOLDBECK
From Turning Sods to Turning Keys - Building a Solid Future
from Innovation and Service

How does a company that factors of course but, in talk-

started with five employees in
1969, become a company with
2,389 employees and turnover
of over a billion a year, only 40
years later? There are many of
ing to Mr Uwe Brackmann, the
Managing Director, the main
ingredients seem to be pas-
sion and enthusiasm.business
across the board.

Jeff Bezos p. 32
76
the man who sells you anything

Jeffrey Preston Bezos was born attended River Oaks Elemen-

on January 12, 1964 in Albu-
querque, NM. He and his moth-
er relocated to Houston, Texas,
when Bezos was five to live with
his new stepfather. Jeff Bezos
tary School in Houston until
the sixth grade after which he
attended Miami Palmetto Se-
nior High School when the fa-
p.
mily moved to Miami, Florida.

Trade & Investment | www.trade-investment.eu 5 January~February 2011

 Energy

World Future Energy

Summit 2011 Opens
with 33 rd International
Official Delegations
Reed Exhibitions, organiser of the World
Future Energy Summit (WFES) 2011 taking
place in Abu Dhabi 17th -20th January 2011,
revealed today that 33 official delegations
will participate at the summit´s opening
ceremony and afternoon policy forum.
More than 3000 delegates have confirmed
participation for the first day of the summit.
Held under the patronage of H.H. Sheikh
Mohammed bin Zayed Al Nahyan, Crown
Prince of Abu Dhabi and Deputy Supreme
Commander of the UAE Armed Forces, and
hosted by Masdar, the Abu Dhabi based
Mubadala company focused on developing
commercially scalable sustainable energy
solutions, the World Future Energy Summit
is a unique business platform aiding the
global development and commercialisation
of renewable energy solutions.
The opening day will start at 11am, with a
grand opening ceremony beginning with
a welcome speech from Dr. Sultan Al Jaber,
CEO of Masdar, the host of WFES 2011 and
then a special address by Ban Ki-Moon,
Secretary-General of the United Nations.
The special address will be followed by a
number of speeches by participating heads
of state and royalty in the morning and
three ministers panels later in the afternoon.
Fredric Theux, President of Reed Exhibitions,
stated: „We expect the opening day of
WFES 2011 to be an absolute success. We
are extremely pleased with the number
of speakers and participants attending
tomorrow. We view this as a clear sign that
the world is truly taking future energy issues
and opportunities to heart and that the
collaboration of government, businesses
and technology providers is key to enabling
future energy solutions. I would like to take
this opportunity to thank everyone for
their support for this global event.“ Each
day of the summit has been structured
around a key theme, which forms the
basis for all discussions and presentations
as they relate to renewable energy. The
second day of the summit is the business
forum, where delegates and exhibitors will
communicate valuable ways of growing
renewable energy business opportunities.
The third day focuses on innovation and

Trade & Investment | www.trade-investment.eu 6 January~February 2011

clean technology, while the fourth day will
discuss financing future energy solutions.
Returning this year will be the World
Future Energy Exhibition and the
World Future Environment Exhibition
together taking place over 40,000 sqm
spanning 10 ADNEC halls. The World
Future Energy Exhibition focuses on
advanced and renewable energy, while
the World Future Environment Exhibition
is dedicated to air, water and waste
management technologies and solutions.
Over 600 exhibitors from 40 countries
have confirmed their participation
including, Deutsche Bank Group, TOTAL,
OXY, ExxonMobil, BP Alternative Energy,
Schneider Electric, Siemens, Vestas, Daimler
and Suntech Power.
For the first time this year delegates have
the choice of attending the full four-day
event, or just one of the days pertaining to
their interest. It is estimated that this year´s
event will attract more than 25,000 visitors
during the four days.

DJ OPEC Chief: will intervene to stabilize the market if it‘s

out of balance.“
This project has been launched to test
intelligent electricity meters under real-life
Oil Price Up On „OPEC is planning for its members to meet
conditions. The meter data management
system will serve as a data hub for other
next in June to discuss its output policy,
Speculation Not but an extraordinary meeting could be
IT systems to enable the meter data to be
efficiently used for the utility’s business
Demand held if noticeable imbalances emerge
before then,“ El-Badri says.
processes.

The Organization of Petroleum Exporting As a“data hub,”the meter data management

Countries considers the oil market well-
supplied and believes the recent price surge
is driven by speculation and production
disruptions rather than higher demand,
Secretary General Abdalla Salem El-Badri
tells Monday‘s Austrian financial daily
Wirtschaftsblatt.
Last week, crude oil reached a 27-month
high of just below $100 a barrel, but
OPEC estimates there is no appetite in the
market to absorb higher output, El-Badri
is quoted as saying, adding recent output
disruptions, most importantly one caused
by a major pipeline leak in Alaska, have
been utilized by speculators to drive the
price higher.
OPEC wants an oil price high enough
to accommodate investments in new
production, but not so high that it will
hamper the global economic recovery,
El-Badri says, adding the organization
won‘t try to calm the price by pumping
out more oil as long as the higher price
isn‘t driven by demand.
„OPEC won‘t intervene because of
speculators,“ he says. „For a start, we need
to wait and see what the trend will be, but
we are observing the market, and OPEC
„For 2011, OPEC estimates a rise in oil
demand of 1.2 million barrels a day, driven
by the economic boom in the developing
world,“ El-Badri confirms. A risk to the
estimate is the European sovereign debt
crisis, which could further hamper already-
declining European oil consumption.
Data hub for IT systems: Siemens supports
Salzburg AG‘s Smart Grid pilot project by
providing a meter data management system.
Data hub for IT
systems: Siemens
supports Salzburg
AG‘s Smart Grid pilot
project by providing
a meter data
management system
Siemens Energy is supplying the Austrian
power provider Salzburg AG with its Energy
IP meter data management system for their
“Smart Grid Model Region” pilot project.
system links the Siemens automated
metering and information system AMIS
to Salzburg AG’s accounting and billing
system SAP IS-U. The company is already
operating AMIS as a pilot installation.
Introducing the meter data management
system now endows the utility with a
comprehensive smart metering solution,
laying the basis for integration into further
IT systems going forward. Smart metering
features end-to-end functionality – it
The Siemens Energy Sector is the world’s
leading supplier of a complete spectrum
of products, services and solutions for the
generation, transmission and distribution
of power and for the extraction, conver-
sion and transport of oil and gas. In fiscal
2010 (ended September 30), the Energy
Sector had revenues of approximately
EUR25.5 billion and received new orders
totaling more than EUR30.1 billion and
posted a profit of more than EUR3.6 billion.
On September 30th, 2010, the Energy Sec-
tor had a work force of more than 88,000.

Trade & Investment | www.trade-investment.eu 7 January~February 2011


can be used in a range of applications,
from metering to billing, from operations
management to grid scheduling.
“We are one of the few companies
worldwide that can offer such all-round
solutions from a single source. Our meter
data management solution is helping
Salzburg AG to progress another step
further on the way to an intelligent power
supply network,” says Ralf Christian, CEO
of the Power Distribution Division in the
Siemens Energy Sector.
Robert Pumsenberger, Division Manager
for customer services and information
technology at Salzburg AG: “Salzburg
AG sees Siemens’ wide-ranging smart
metering solution as a sustainable basis for
future smart grid applications. The special
features of the comprehensive solution
include implementation of a meter data
management system as a central data hub,
Trade & Investment | www.trade-investment.eu
Energy
tie-in to the AMIS distribution network
automation system, and integration into
our SAP and CRM systems.” Siemens also
delivers an operations management system
that makes it possible to monitor all the
components involved in the process, such
as telecontrol devices, transmission systems
and servers, and so facilitates intelligent
troubleshooting.
Energy-efficient, eco-friendly solutions
for setting up smart grids are part of
Siemens’ Environmental Portfolio. In fiscal
2009, revenue from the Portfolio totaled
about EUR23 billion, making Siemens the
world’s largest supplier of eco-friendly
technologies. In the same period, the
company’s products and solutions enabled
customers to reduce their CO2 emissions by
210 million tons. This amount equals the
combined annual CO2 emissions of New
York, Tokyo, London and Berlin.
China’s state grid to
step up international
layout in 2011–2015
The State Grid Corp of China, one of China’s
two major power grid operators, will step
up strategic layout in international markets
in the following five years.
Liu Zhenya, general manager with the
company, said that the State Grid will
conduct more international power grid
operating management, power resource
acquisitions, engineering contracting,
and participate in project biddings and
standards formulation in overseas market.
Under the encouragement of Chinese
government to go abroad, State Grid
will expend business in south America
market, promote cooperation with Russia
and European countries in resources and
technology, strengthen the strategic
cooperation with American power
companies, seek to develop in Africa
and promote the application of ultra high-
voltage power transmission technology,
said Liu Zhenya.
China has mastered core technology of
ultra high-voltage power transmission and
manufacture of the entire facility. Three
ultra high-voltage power transmission lines
has completed construction and entered
operation. The technology is also believed
to be a bargain chip for State Grid in the
oversea acquisitions.
In December of 2010, State Grid took over
seven power transmission concessionaire
companies in Brazil at 989 million US
dollars. In 2011, State Grid will promote
the application of 800kV ultra high-
voltage DC power transmission in large
hydropower projects in Brazil. Besides,
America, Russia, and India have put up
cooperation with China in ltra high-voltage
power transmission.
The involvement in international power
grid market not only has enhanced the
position of the State Grid in international
market, but also has brought great profit
to the company.
Liu disclosed that the State Grid has
earned US$160 million of revenue from
the management of the Philippine Power
Grid since 2009, and expects to recover all
the investment including bank loans in four
years and be sure to make US$120 million
8 January~February 2011
net income annually in the rest contracted
21-year operating period.
Besides, the takeover of Brazil power
transmission company will bring State Grid
12~per cent annual return on equity, far
higher the 4 per cent in domestic market.
The State Grid targeted to double its profit
in 2010 to 70 billion yuan by 2015, 40 per
cent of which will come from overseas and
financial business. Besides, it will increase
its total assets to 3 trillion yuan by 2015
and control its asset-liability ration at
67 per cent.
In the past five years, the State Grid made
total profit of 133.6 billion yuan, with total
assets reaching 21,192 trillion yuan.
China Electricity Council predicted that
investment in power grid will keep rapid
growth in the following five years, which
may amount to 2.55 trillion yuan, and the
investment will be focused on ultra high-
voltage power transmission, smart grid and
upgrading of rural power grid network.
Liu Zhenya said that investment in ultra
high-voltage power transmission will
exceed 500 billion yuan in 2011-2015, and
China will construct an ultra high-voltage
AC power transmission covering the whole
country and launch 11 ultra high-voltage
DC power transmission projects. Total
length of the ultra high-voltage power
transmission lines will be 40,000 kilometers.
RWE Innogy grows
wind portfolio
in Poland to
108 megawatts
After less than one year of construction,
RWE Innogy commissions its new wind
farms Piecki and Tychowo in Poland.
The Piecki wind farm in the northeast
of Poland was developed and built by
Gamesa. The 16 wind turbines (G90-
2.0MW ) have an installed capacity
of 32 megawatts to produce over
60,000 megawatt-hours of electricity
annually. The electricity produced here is
enough to meet the equivalent demand
of over 30,000 residential households
per year and to avoid 60,000 tons of CO2
emissions. RWE Innogy acquired the project
together with energy utility HSE, based in
Darmstadt, which owns a minority share
of 49 percent.
Trade & Investment | www.trade-investment.eu
The Tychowo wind farm located in Western-
Pomerania has an installed capacity of
about 35 megawatts and consists of
15 Siemens turbines (SWT-2.3-93) each with
a capacity of 2.3 megawatts. It can produce
over 65,000 megawatt-hours of electricity
per year. The electricity generated here is
enough to meet the equivalent annual
demand of over 32,000 residential
households and to avoid 65,000 tons of
CO2 emissions.
“Poland is a particularly attractive market
for us when it comes to operating onshore
wind power plants. This is because of the
remarkable wind resources, the large
growth potential and the cooperation
opportunities with our sister company
RWE Polska. This is why we intend to go
ahead with the development of additional
Polish wind farms in the next few years,”
explains Paul Coffey, Chief Operating
Officer at RWE Innogy.
Since October 2009, 18 turbines each with
an installed capacity of 2.3 megawatts
have been in operation at Suwalki and
supply 40,000 residential households with
electricity. With Piecki and Tychowo, RWE
Innogy now operates three wind farms in
Poland. Together with the Suwalki wind
farm, the company has an onshore wind
portfolio of over 108 megawatts here.
“The boom for renewable energy, which
we are experiencing now in Poland, leads
to new challenges for the entire energy
sector,” says Filip Thon, CEO of RWE Polska.
“These two new RWE investments will more
than double the Group’s wind capacity
in Poland. RWE Polska is one of the first
energy companies in Poland to offer
“green energy” to business clients. The
newly launched product is sought after
especially by companies focusing on
sustainable development.”
According to the Polish wind energy
association, almost 1,100 megawatts
of wind power had been installed in
Poland by September 2010. The Polish
government intends to grow the installed
capacity to 6,100 megawatts by 2020.
Power generation from renewable energies
is subsidised in Poland by a system of “green
certificates” in order to achieve this aim.
Electricity suppliers are obliged to offer
a certain percentage of the energy fed
into the grid on the basis of renewable
energies. They can exempt themselves
from this obligation by purchasing “green
certificates”.
9 January~February 2011
ELECTRON 2011 Trade Fair –
Tradition stays in Prague
Both the professional and general public
can be looking forward to the Trade Fair
of Electrotechnics, Electronics and Power
Engineering which is to be held on 12-15
April 2011 at the Exhibition Centre Pra-
gue Letnany. The professional public will
be able to see innovations and trends
from such fields as power engineering,
electrical installation technologies,
electronic elements and systems,
information technology, measurement,
automation and regulation technologies
and many others.
The Trade Fair will offer a presentation of
news and trends of leading companies
from this sector. An integral part of the
Trade Fair is also formed, of course, by
a rich accompanying program, in which
the exhibiting companies, experts as well
as the general public can choose from a
Trade & Investment | www.trade-investment.eu
wide offer of seminars, lectures and Trade
Fair competitions.
The Trade Fair is held under the auspices
of important institutions - President of the
Chamber of Deputies of the Parliament of
the Czech Republic – Miroslava Němcová,
Ministry of Industry and Trade, Czech
Technical University in Prague or University
College of International and Public
Relations, Prague.
Representation of
firms at the Trade Fair
Visitors will have a possibility to see
leading representatives of individual
branches at the Trade Fair, including
representations of companies from
abroad, such as from the Netherlands,
Germany, Slovakia, the United Kingdom
and other countries.
Concerning the area of electrical installation
technologies, the Exhibition Centre
Prague Letnany will offer presentations
of such firms as DEHN+SOHNE GmbH,
Eaton elektrotechnika s.r.o., Enika.cz,
Eplan Engineering CZ, Hager Electro
s.r.o., Kopos Kolín a.s., Rittal Czech, s.r.o.,
Schmachtl CZ spol. s r.o. or ABB, s.r.o.
whose Marketing Manager Jiří Kubeš
comments the company’s participation
with the words: “Prague is the capital
city and from a large part of the Czech
Republic it is easily accessible for electrical
installation engineers, i.e. for the key
customer group of our company. Moreover,
the concentration of these customers in
Prague and in its close surroundings is
very high, and that is why participation
10 January~February 2011
at the ELECTRON Trade Fair is logical and
necessary for our company”.
Lenka Plačková, Promotion Manager of
ENIKA CZ, adds to the participation at
the Trade Fair: “We have been using the
possibility of presenting our company
in the areas of the Exhibition Centre
Prague Letnany for many years. For this
reason meetings with our traditional
customers, as well as addressing new
customers in the high-quality facilities
of the Exhibition Centre Prague Letnany
must be an integral part of suitable
means of our product range promotion.
We are glad to stay at the beginning of
a new tradition which is established by
the organising company “ABF” through
its 1st edition of the Electron Trade Fair.
We are looking forward to your visit to
our stand. Already now we are working
on preparation of news and matters of
Trade & Investment | www.trade-investment.eu
interest from our wide range of activities.
See you in April.“
Such firms as ČEZ, DCK Holoubkov
Bohemia, a.s., International BEZ Group,
spol. s r.o., Maschinenfabrik Reinhausen
GmbH or Pražská energetika, a.s. will
present their innovation lines especially
for those who are interested in the fields
of power engineering and heavy-current
electrotechnics.
“We have decided to implement our
core exposition at the Prague Trade Fair
“ELECTRON 2011”, because we believe
in the qualities of the location which is
already traditionally associated with this
Trade Fair and which the visitors know
very well. We expect this tradition to
continue and this Trade Fair to enjoy the
same interest of exhibitors and visitors as
it was the case in previous years,” states
Ing. Jiří Jílek, MBA, Executive Head and
General Manager of ČEZ Logistika, s.r.o.
to participation of their company.
This year’s edition of the Trade Fair
will serve also as an opportunity of
presentation for leading companies
from the sector of photovoltaics and
alternative energy resources, such as
Delta Energy Systems GmbH, Fronius
Česká republika, SMA Czech Republic
s.r.o. and many others. With regard to
the fact that this is currently a very up-
to-date and highly discussed power
engineering area, a large part of the
Trade Fair accompanying programme
will be dedicated to these issues – Day of
Renewable Energy Resources. The entire
section will be supported by professional
organisations, such as Czech Renewable
Energy Agency, Czech Photovoltaic
11 January~February 2011
ELECTRON 2011 Trade Fair –
Tradition stays in Prague
Industry Association or Renewable Energy
and Energy Efficiency Centre.

Accompanying
programme of the
Trade Fair
An interesting accompanying programme
focused on up-to-date topics from the
fields of electrotechnics, electronics and
power engineering is prepared for Trade
Fair visitors.
One of the attractive topics is without
any doubt Smart Metering. A lecture
focused on this topic will be held during
the second day of the Trade Fair in the
entrance hall. The Trade Fair visitors can
obtain very useful information at the
lecture held by the Ministry of Labour
and Social Affairs, dealing with work
safety topics. Visitors interested in IP
telephony in the health sector can visit
the lecture organised directly in the hall
no. 1 conference room.
Visitors interested in the issues of
e-mobility, nanotechnology or possibility
of energy savings will find their favourite
topics at the Trade Fair as well.
The exhibitors can also take part in the
competition GRAND PRIX ELECTRON
2011. They can register their selected
product in this competition, and registered
products will be assessed by the Expert
Jury consisting of leading personalities
of electrotechnics, electronics and power
engineering. The annunciation of winners
will take place on the occasion of the
ceremonial Evening Party organised on the
occasion of the ELECTRON 2011 Trade Fair.
Another competition prepared for
exhibitors is TOP EXPO ELECTRON 2011
– a competition for the best arranged
exposition of the Trade Fair. The assessment
will be focused on both aesthetic
performance and originality of the design
and on the approach of business staff
as well as hostesses towards customers.
The complete accompanying programme
for individual days of the Trade Fair and
current information can be found on the
website www.electroncz.cz.
Contact: ABF, a.s., Tel.: +420 225 291 132,
electron@abf.cz.

Trade & Investment | www.trade-investment.eu 12 January~February 2011


Skanska to construct
university buildings
in New York for USD
92 M, approximately
SEK 625 M
Skanska has secured an assignment to
construct two laboratory buildings at the
City University of New York in Harlem, New
York. The contract amounts to USD 92 M,
Skanska is one of the world’s leading
project development and construction
groups with expertise in construction, de-
velopment of commercial and residential
projects and publicprivate partnerships.
Based on its global green experience,
Skanska aims to be the clients‘ first choice
for Green solutions. The Group currently
has 49,000 employees in selected home
markets in Europe, in the US and Latin
America. Headquartered in Stockholm,
Sweden and listed on the Stockholm Stock
Exchange, Skanska‘s sales in 2009 totaled
SEK 137 billion.
Trade & Investment | www.trade-investment.eu
Construction
approximately SEK 625 M, which is included
in order bookings for the fourth quarter
of 2010. The customer is the Dormitory
Authority of the State of New York.
The assignment involves a 44,000-square-
meter research building with laboratories,
cafeteria and a 100-seat lecture hall, and
also a 23,000- square-meter laboratory
building for biology, chemistry and physics.
Skanska USA Building has commenced
work on the project, which is scheduled
for completion in the summer of 2014. At
City University of New York, Skanska has
also recently completed two buildings for
teaching and research.
Skanska USA is one of the leading
development and construction companies
in the country, consisting of four business
units: Skanska USA Building, which
specializes in building construction;
Skanska USA Civil, specialized in civil
infrastructure; Skanska Infrastructure
Development, which develops public-
private partnerships; and Skanska
Commercial
Development, which develops commercial
development projects in select U.S. Markets.
Headquartered in New York, Skanska USA
has approximately 7,000 employees and
its 2009 revenues were SEK 44 billion.
VINCI wins contract
for the new London
express rail link -
Crossrail
• Construction of the Liverpool Street and
Whitechapel station tunnels
• The Crossrail project will provide an
express rail link running east-west across
London in 2018.
VINCI Construction Grands Projets and
Bachy Soletanche Ltd (VINCI Construction),
members of the BBMV consortium along
with Alpine Beton und Monierbau,
Balfour Beatty and Morgan Sindall, have
won the €275 million contract (VINCI’s
share: 36.7%) to build the tunnels for
the Liverpool Street and Whitechapel
stations in London.
The contract is part of the Crossrail
project, which will provide an express
rail link running east-west across London
in 2018.
It calls for the construction of the Liverpool
Street and Whitechapel station tunnels
and associated works. Each station has
two platforms approximately 400 metres
long, numerous cross-passages and
13 January~February 2011

underground branches connecting to
the new Crossrail stations.
The works represent a total of about
190,000 m³ of excavation and 60,000 m³
of concrete lining. They are scheduled
to start in February 2011 and will take
approximately five years to complete.
VINCI Construction Grands Projets is a
world leader in underground works, with
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Construction
numerous references and 10 tunnel boring
machines in action in 2011 on the group’s
worksites. These include the Hallandsås
and Liefkenshoek rail tunnels in Sweden
and Belgium, respectively, as well as the
Cairo metro in Egypt.
Bachy Soletanche Ltd is the British
subsidiary of Soletanche Bachy (Soletanche
Freyssinet). It has provided its geotechnical
expertise to most of the United Kingdom’s
major infrastructure projects, including
Terminal 5th at Heathrow Airport, the
Jubilee line extension, Tyne Tunnel in
Newscastle, M74 in Glasgow and the
Channel Tunnel Rail Link (CTRL), with in
particular the refurbishment of London’s
St Pancras railway station.
Qatar Holding to
become major
shareholder of
HOCHTIEF
HOCHTIEF Aktiengesellschaft welcomes
Qatar Holding LLC (Doha) as new major
shareholder: HOCHTIEF increases the
capital stock of the company by around ten
percent under exclusion of subscription
rights of existing shareholders. After
acquiring all new shares, Qatar Holding
will - as soon as the capital increase is
registered with the commercial register
- hold almost 9.1 percent of the new
capital stock. The Ad-hoc Committee of
the HOCHTIEF Supervisory Board has
approved the capital increase. Qatar
Holding LLC is the strategic and direct
investment arm of Qatar Investment
Authority.
The capital increase will be carried out
by partly making use of the authorized
14 January~February 2011
capital created at the HOCHTIEF General
Shareholders’ Meeting on May 11, 2010,
by issuing 6,999,999 no-par-value shares
against cash contributions. According to
the resolution of the General Shareholders’
Meeting, subscription rights of existing
shareholders are excluded. The issue
price is EUR 57.114 per share, resulting
in an equity contribution of almost EUR
400 million to HOCHTIEF. „The cash inflow
from the capital increase strengthens
the financial position of HOCHTIEF. In
addition, it provides latitude for the
announced further growth after the
planned bond issue had to be called off
in mid-September,“ says CEO Dr. Herbert
Lütkestratkötter.
Qatar Holding believes HOCHTIEF’s
businesses are well positioned and
have excellent prospects. As a world
class investor, Qatar Holding supports
best practices in corporate governance,
financial management and stakeholder
consideration. Qatar Holding‘s policy
is to work with all stakeholders to help
develop the business, preserve core
values and maximise potential over the
long-term.
The investment also offers both partners
extensive strategic perspectives: Qatar is
facing a fast technological, infrastructural
and economic development. HOCHTIEF
supports Qatar by transferring the most
recent international know-how to the
country, and by coaching local staff in
state-of-the-art technology, like virtual
construction or Building Information
Modeling (BIM). Thus, the Group is already
present in the country via five subsidiaries
and employs more than 5,000 people
locally. These are working on large-scale
projects such as Barwa Commercial
Avenue, a more than 8-kilometer-long
commercial and shopping avenue in the
capital Doha for around EUR 1.3 billion.
Since 2008, HOCHTIEF as partner in a joint
venture has also been planning the Qatar
Bahrain Causeway, the longest inter-state
connection in the world.
Moreover, in April 2010, HOCHTIEF founded
a joint venture with Lusail Real Estate
Development Company, a subsidiary of
Qatari Diar. The current major project
of the company is the development of
a completely new city in Qatar by 2020,
the city of Lusail which is designed for
200,000 inhabitants, and which will host the
World Cup Final in 2022. The joint venture
is also planning to export design and
construction work to other countries. Both
partners have decided to take the historic
opportunity and consolidate the existing
cooperation by a direct participation in
HOCHTIEF: „We welcome Qatar Holding
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as our new major shareholder. Qatar has
recognized the capability of the HOCHTIEF
Group, the success of our strategy as well
as the benefits of a close partnership.
We will now be supporting each other
in our development,“ Lütkestratkötter
announces. According to the CEO, Qatar’s
strong relationship with the German state
was a key element of its decision to invest
in HOCHTIEF.
STRABAG SE: Siegfried
Wanker new technical
board member in
Special Divisions &
Concessions segment
Publicly listed STRABAG SE, Central and
Eastern Europe’s largest construction
company, is announcing a change
on its management board effective
1 January 2011. Siegfried Wanker will
assume technical management board
responsibilities in the Special Divisions &
Concessions segment. He succeeds Roland
Jurecka, who is resigning his mandate and
retiring on 31 December 2010.
Siegfried Wanker, born in 1968, currently
serves as technical head of the Infra-
structure Project Development Division
within the STRABAG Group. He studied
civil engineering at Graz University of
Technology before joining the company
as a site manager in 1994. Between 2001
and 2004, he held various management-
level positions at engineering service
providers before rejoining the STRABAG
Group in 2005. STRABAG SE ist einer der führenden europä-
STRABAG SE CEO Hans Peter Haselsteiner ischen Baukonzerne. Mit rund 75.500 Mit-
welcomes the internal succession: “Roland arbeitern wurde im Geschäftsjahr 2009 eine
Jurecka worked for STRABAG for more Leistung von € 13,0 Mrd. erbracht. Infolge
than 40 years and contributed greatly
dessen, ist STRABAG in der Liste der Fortune
to our success. I am pleased that he is
Global 500 als eines der größten Unterneh-
passing on his duties and his knowledge
in an orderly fashion to a colleague who men weltweit genannt. Ausgehend von
already knows the group very well. I thank den Kernmärkten Österreich und Deutsch-
Roland Jurecka for his commitment and land ist STRABAG über ihre zahlreichen
friendship over the decades.” Tochtergesellschaften in allen ost- und
südosteuropäischen Ländern, in ausge-
In addition to the succession planning,
the supervisory board of STRABAG SE, at wählten Märkten Westeuropas sowie auf
a meeting on 2 December 2010, voted der Arabischen Halbinsel präsent. STRABAG
to extend the existing mandates of the deckt dabei die gesamte Leistungspalette
other management board members. The
(Hoch- und Ingenieurbau, Verkehrswege-
mandate for CEO Hans Peter Haselsteiner
was extended until 31 December 2015,
bau, Spezialtief- und Tunnelbau) sowie die
those of the remaining board members Bauwertschöpfungskette ab.
to 31 December 2014.
15 January~February 2011

Analysis – Chinese
automakers rake in
robust profits in 2010
China‘s listed automakers raked in sound
profits last year, statistics from their recently
released financial reports show.
Anhui Ankai Automobile (SSZ:000868)
realized annual net profits of 73.24 million
yuan (US$11.13 million) for the whole year
of 2010, up 201.35 per cent from a year
earlier, with earnings per share up 202.53
per cent year on year to 0.239 yuan.
Ankai attributed the profits surge to
its expanded sales network as well as
remarkable performance of its auto parts
unit.
Jianghuai Automobile Co., Ltd. (JAC)
(SSE:600418), also based in Central China‘s
Anhui Province, posted brilliant net profits
as well, which rocketed 240 per cent from
the 336 million yuan registered in 2009.
Zhongtong Bus (SSZ:000957) announced
that its net profit attributable to sha-
reholders of the parent came to 38 million
to 41 million yuan, a surge of 85-100 per
cent from a year earlier.
More over, China‘s largest listed automaker
SAIC Motor (SSE:600104) announced in its
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Automotive
latest financial report that the company‘s
2010 annual sales reached 3.56 million
vehicles, a jump of over 31 per cent from
the previous year.
Another important listed automaker,
Chongqing Chang An Automobile Co.
(SSZ:000625), the listed arm of ChangAn
Group, sold a total of 1.851 million vehicles
for the whole year of 2010, a jump of 35.2
per cent from the 2009 annual sales of
1.369 million units.
Beijing Automobile Works (BAW), China‘s
fifth largest automaker in terms of sales,
sold 1.49 million vehicles in the full-year
of 2010, up 20.6 per cent year on year,
while the 2010 annual output climbed
18.3 per cent year on year to 1.50 million
units. Its total profits are predicted to hit
11.04 billion yuan, an increase of 75.1 per
cent from 2009.
China‘s auto sales hit 18.06 million last
year, up 32.37 per cent from the previous
year, ensuring the country‘s position as the
world‘s biggest car producer and market
for a second year, statistics from the China
Association of Automobile Manufacturers
(CAAM) show.
The combined sales of the 10 automakers
amounted to 15,596,100 units, representing
86 per cent of the country‘s total.
All-new Saab 9-5
SportCombi to Debut
at Geneva
Next step in Saab‘s biggest-ever new
product offensive - Distinctive alternative
choice in premium wagon segment -
Styling carries forward 9-5 sedan‘s bold
design language
Saab Automobile takes the next step in
the biggest new product offensive in
its history when the much-awaited 9-5
SportCombi is unveiled at the Geneva
Motor Show.
Sleek and fun-to-drive, the Sport Combi
adds versatility to the widely acclaimed
attributes of the 9-5 sedan and will bring
a distinctive, alternative choice to the
premium, large wagon segment.
It shares the sedan‘s bold, Aero X-inspired
looks and features an extended, falling
roof-line which culminates in a steeply
raked rear screen flanked by signature
Saab ‚wraparound‘ window glazing. The
result is an imposing and sporty wagon
with a low stance and a dynamic, visual
appeal that concedes nothing to the
requirements of load-carrying.
Smart cargo handling features include an
adaptable multi-fold floor, flexible U-rail
load space configuration and under-
floor stowage with a sealed wet storage
compartment. A programmable, powered
tailgate is also available.
Backed by a turbo engine, the SportCombi
includes Saab‘s industry-leading XWD
all-wheel-drive system and advanced
features such as: Saab DriveSense adaptive
chassis control, adaptive cruise control,
Bi-Xenon adaptive lighting, keyless entry
and starting, tri-zone air conditioning
and a Pilot Head-up Display which
projects information, aircraft-style on
the windshield.
The SportCombi will arrive in the US in the
Fall of 2011. It will significantly broaden the
appeal of the new 9-5 range in a segment
where Saab, with its tradition for designing
versatile vehicles, has enjoyed wagon
sales volumes on a par with sedan levels.
„The launch of the 9-5 Sport Combi is a
much-awaited next step in the roll-out
of our new product offensive,“ says Saab
Automobile CEO Jan Ake Jonsson. „It
will take Saab back into the large wagon
segment where we have established a
16 January~February 2011
strong presence in many key markets
with our previous offering.“
Sporty character
Designed in parallel with its sedan twin,
the 9-5 SportCombi shares the same
bold frontal styling and adds a swept,
‚wraparound‘ rear window graphic. This
echoes the 9-5‘s brand signature frontal
theme and gives the SportCombi its own
distinctive identity. The dramatic, sweeping
roof-line is extended by a deep rear spoiler
integrated into the top of the tailgate.
Ultra-slim roof rails are fitted as standard
without detracting from the car‘s svelte
silhouette.
Signature Saab themes, such as the strong
C-pillar with its hockey stick extension
of the belt-line, are combined with a
prominent rear shoulder contour to give
the SportCombi a muscular and dynamic
stance.
The tailgate is raked forward to underline
the car‘s sporty character. It features a full-
width‚ice-block‘ rear light bar which wraps
into light units at either side, continuing
a new signature Saab styling theme first
seen on the 9-5 sedan and 9-4X crossover.
Dynamic and functional
The deep cargo deck is fully carpeted
and optimized for space and ease-of-use.
The 60/40 split rear seatbacks fold down
almost completely flat without having
to reposition the seat squab or remove
the head restraints. Careful attention
to soundproofing in the rear bodywork
attenuates noise, vibration and resonance
so that occupants enjoy a level of interior
refinement similar to that of the sedan.
With the seatbacks lowered, the cargo
deck is just over six feet long (77.2 in.) and
offers an adaptable load capacity of up to
56 cubic feet (18.6 cu. ft., rear seats up). The
side walls are completely flat and upright,
creating a clean, open space without any
hard-to-use corners or rear wheel-arch
intrusions. Compartments in the side walls
offer convenient stowage for small items.
Four tie-down loops and a 12-volt power
outlet also come as standard.
An optional, U-shaped track around the
outside of the floor provides flexible
space configuration. As in the 9-5 sedan,
it carries an adaptable, telescopic dividing
rail which allows the cargo deck to be split
as required so that different sized items
can be separated and kept in place.
The floor, with a signature Saab aircraft-
shaped handle, folds back in steps to
access under-floor storage. When folded
twice, an additional storage compartment
is revealed for cars fitted with tire repair
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kits instead of a mini spare wheel. A pull-
out support arm can be slotted in place to
keep the folded floor in a fixed position.
This provides further support for items
stored in the under-floor recess, as a flexible
alternative to using the entire cargo deck.
The underside of the floor has two fittings
for flat stowage of the U-rail divider. They
also carry hooks that can be used to organize
bags, for example. A waterproof plastic
liner, available as option, can be dropped
into the recess to provide a separate wet
storage area for sports equipment, outdoor
clothing or muddy boots.
When a mini spare wheel is specified, it
is covered by a flat panel which provides
a sub-floor 2.5 in. below the main floor
height - ideal for the separate stowage
of flat or small items.
Smart tailgate
For additional convenience, the tailgate
is available with a remote-controlled,
electric power operation. It can be fully
opened and closed via a rotary knob in
the driver‘s door or a button on the car‘s
key fob. A touch pad on the outside of
the tailgate, above the number plate, and
a button in the interior trim also trigger
powered opening and closing.
A programmable mode can be used to
raise the tailgate to a lower position if
there is restricted clearance overhead, such
as inside a garage. The opening height is
pre-set via the rotary knob, which can also
disable the powered function.
For ease of loading, the tailgate opens
down to bumper level with a lift-over
height of only 25.5 in. The cargo deck floor
is also flush with the tailgate opening to
facilitate sliding heavy loads inside. A light
in the tailgate and small sidewall lights
provide excellent illumination of the load
space at night.
A retracting cargo cover can also be slotted
into lugs in the sidewalls immediately
behind the rear seats. It keeps items out
of sight and includes a convenient one-
touch action which allows the ends of
the locating bar to slide up channels on
the inside of the D-pillars for convenient
access to the cargo deck.
About Saab
Saab Svenska Aeroplan Aktiebolaget
(Swedish Aircraft Company) - was founded
in 1937 as an aircraft manufacturer and
revealed its first prototype passenger car
10 years later after the formation of the
Saab Car Division. In 1990, Saab Automobile
AB was created as a separate company,
jointly owned by the Saab Scania Group
and General Motors, and became a wholly-
owned GM subsidiary in 2000. In February
2010, Spyker Cars N.V. of the Netherlands,
acquired the company from GM as an
independently-run business.
17 January~February 2011

BMW Group expands
its lead in the
premium automotive
segment
Munich/Detroit. The BMW Group ended
2010 with its-second best sales result of
all time. Sales of BMW, MINI and Rolls-
Royce brand automobiles rose 13.6% last
year to reach a total of 1,461,166 vehicles
(prev. yr. 1.286 million). The company
therefore strengthened its position as the
leading provider of premium vehicles. The
growth course of recent months continued
through December: Sales were 14.2%
higher than in the same month last year,
at 141,358 vehicles.
“2010 was a very successful year for us.
We are “spot on” with our new models
and are building the cars people desire.
We advanced on all continents, in large
and small countries alike and continued
with a good sales balance between
Europe, Asia, and the Americas,” said
Ian Robertson, Member of the Board of
Management of BMW AG, responsible
for Sales and Marketing, at the North
American International Auto Show in
Detroit. “Looking ahead, we plan to remain
the world’s top selling premium automaker
and expect sales to climb to over 1.5 million
units in 2011 setting new record highs for
the Group and its three brands. And while
we closely watch some ongoing economic
BMW Group sales in / up to December 2010 at a glance
In December Comp. to
2010 previous year
BMW Group Automobiles 141,358 +14.2%
BMW 115,570 +10%
MINI 25,359 +38.3%
Rolls-Royce Motor Cars 429 +16.9%
BMW Motorcycles 3,764 -29.8%
Trade & Investment | www.trade-investment.eu
Automotive
uncertainties throughout the world, we
are certain to continue benefiting from our
young model line-up with full availability
of new vehicles like the BMW 5 Series,
BMW X3, BMW X1 and MINI Countryman.”
BMW brand: New models and trend
towards high-end models drive sales
BMW brand sales rose 14.6% in 2010
to reach a total of 1,224,280 vehicles.
In December, 115,570 vehicles (+10%
from December 2009) were sold. The
newly introduced BMW 5 Series and BMW
X1 have been very well received. Retail
volumes for the BMW 5 Series increased
22.6% from the previous year’s level to
211,968 units in 2010. The company sold
99.990 BMW X1 vehicles in their first year
of full availability.
The flagship BMW 7 Series and the other
X-models also continued to be in high
demand. Bolstered by strong demand
from Asia and the gradual recovery of the
American market, sales of the BMW 7 Series
climbed 24.9% over the course of the year
to reach a total of 65,814 units. BMW X5
volumes increased 15% to 102,178 units,
and 46,404 BMW X6 vehicles were delivered
to customers (+11.4%).
MINI brand: New sales record
With a total of 234,175 vehicles sold
(+8.1%; prev. yr. 216,538), MINI set a
new sales record in the year just ended.
December sales climbed 38.3% year-
on-year to 25,359 vehicles. The brand’s
positive annual result was due in part
Up to/incl. Comp. to
December 2010 previous year
1,461,166 +13.6%
1,224,280 +14.6%
234,175 +8.1%
2,711 +170.6%
98,047 +12.3%
to the MINI Countryman (14,337 units)
recently released in September, as well
as the MINI Hatch (+3.9% to 155,841) and
the MINI Convertible (+15.5% to 32,680).
Sales improved in virtually all markets.
The U.S. remains the largest market with
45,644 units sold in 2010, closely followed
by the U.K. (44,514 units). Third largest
market is Germany with 31,472 cars.
Rolls-Royce: Record sales result
Rolls-Royce remains the clear market leader
in the ultra-luxury-class segment. Sales for
the full year 2010 reach a record sales result
and surged 170.6% to 2,711 automobiles.
Rolls-Royce also reported 429 deliveries in
December (+16.9%). The company’s latest
model, Ghost, has been exceptionally well
received. Demand for Phantom models
remained strong as well. The majority
of Phantom series cars manufactured at
Goodwood (United Kingdom) in 2010
included some personalized Bespoke
element. Bespoke sales in 2010 reached
record levels.
Markets: Growth on all continents
The BMW Group made sales gains in
virtually all markets in 2010. Germany
remains the company’s largest market: In
December registrations increased 16.6%
to 23,550 vehicles. A total of 266,009 new
BMW and MINI were registered throughout
the year (+3.1%; prev. yr. 258,069). In a
total market that shrank by 23% from
2009 levels, the BMW Group was able to
expand its market share in Germany by
2.3 percentage points to 9.1% over the
course of the year. The BMW brand is the
only premium brand that succeeded in
increasing registrations in Germany in 2010.
In its second-largest market, the U.S.,
December sales climbed 16.9% to
27,600 vehicles, thanks to full local
availability of the BMW 5 Series and strong
demand for the BMW X5 and X6 models
produced in Spartanburg. The BMW Group
increased its sales volumes for the full
year 2010 by 9.9% to 265,757 vehicles. As
a result, the company was able to further
strengthen its leading market position in
North America, making the BMW brand
the best-selling European premium brand
in the U.S. once again last year.
Especially strong growth rates were
reported in China, the BMW Group’s third-
largest market. A total of 16,132 BMW
and MINI vehicles were sold in December
(+59.5%). Sales for the full year 2010 rose
86.7% to 168,998 units. The BMW Group
18 January~February 2011
profited from continued strong demand for
the high-end models in its product range.
Sales in the U.K, the BMW Group’s fourth-
largest market, also have recovered well.
In a volatile market that grew by 2% over
the course of the year, the BMW Group
experienced disproportionately strong
growth of 13.6% to 157,312 units and
continued to expand its market leadership
of the local premium segment.
Other regions of the world also provided
impetus for growth. Sales in important
emerging markets posted double-digit
growth as follows: Russia (+26.7% to
21,585 units), South Korea (+74.7% to
19,222), Brazil (+54.5% auf 9,886), and
India (+72.6% to 6,246).

BMW Motorcycles: Deliveries increased
for the year
In 2010, BMW Motorrad increased deliveries
by 12.3% to 98,047 motorcycles. December
sales reached 3,764 units (-29.8%).
Boom in Audi
production – further
expansion of
production capacities
Record production and continued growth:
in the past year, Audi increased production
by 23.4 percent compared with 2009
to a total of 1,148,791 cars. This is the
greatest number of cars ever built in a
single year in the Company’s history. The
carmaker has a total of 13 production
starts planned for 2011, including the
Audi Q3 in Martorell (Spain), and the new
Audi A6 in Neckarsulm (Germany). Audi
will begin a plant expansion this year in
Győr (Hungary) for another A3 derivative.
In addition, a decision should be reached
by 2015 regarding possible production
capacities in the United States.
“We are proud that we, along with
our dedicated team and our effective
Audi Production System (APS), have so
successfully met the challenges of 2010,”
said Frank Dreves, Member of the Board
of Management for Production at AUDI
AG. “Our production figures are higher
than ever before at our German sites
in Ingolstadt und Neckarsulm. This sets
a good foundation for us to tackle the
upcoming challenges that are part of our
growth strategy,” Dreves continued.
All Audi sites recorded significant
production growth in the past year. The
Ingolstadt plant achieved its highest
volume to date, with a total of 553,010 cars
(up 7.5 percent). The Neckarsulm site
increased production by 21.7 percent to
216,322 cars, and following the successful
launches of the R8 Spyder, the Audi A8
and A8L, and the A7, is now focusing on
the start of the new Audi A6 Sedan. In
addition, both sites made significantly
higher volumes of parts sets for production
in China and India (see the overview of
company sites). In Brussels (Belgium)
production of the Audi A1 was successfully
launched.
“The Audi growth strategy provides long-
term security for our sites and for the
jobs of the employees who work there,”
emphasized Peter Mosch, Chairman of
the General Works Council of AUDI AG.
“Without their dedication, Audi would
not have been able to cope with the
economic crisis of 2009 as well as it did. The
Overview of company sites
SIngolstadt plant
Production of 553,010 cars (A3, A4, A5, Q5
including derivatives; up 7.5 percent), as well
as a paint shop and body shop for Audi TT and
A3 Cabriolet (assembly at Audi Hungaria).
Added to this are 105,341 parts sets for auto-
motive production as part of the FAW-VW joint
venture at the plant in Changchun (China) and
at the Group plant in Aurangabad (India) up
103.9 percent.
This means: a total of 658,351 units (up
16.3 percent).
Neckarsulm plant
Production of 216,322 cars (A4, A5 Cabriolet, A6,
A7, A8, R8 including derivatives, up 21.7 percent),
as well as 118,761 parts sets for automotive
production as part of the FAW-VW joint venture
employees worked very hard in 2010. This
resulted in more production and higher
sales. Audi has emerged from the crisis
stronger than ever. We want to continue
following this path in the future as well.”
Dreves announced that production will
continue to be expanded this year. The
successor to the top-selling A6 model
is already in the starting blocks at the
Neckarsulm plant. This spring, series
production of the Audi Q3 begins in
Martorell, where there is enough capacity
to produce more than 100,000 units
annually. Following completion of the
planned expansion at Audi Hungaria,
another A3 derivative will begin rolling off
the assembly line there in 2013. Production
capacity at the Győr plant will then total
125,000 units. In addition, a decision should
be reached by 2015 regarding a possible
Audi production site in the United States.
at the plant in Changchun, and in the Group plant
in Aurangabad (up 18.4 percent).
This means: a total of 335,083 units (up
20.5 percent).
Audi Hungaria, Győr
Production of 38,541 cars (assembly of the
TT Coupé, TT Roadster, A3 Cabriolet and RS
3 Sportback; up 18.2 percent), as well as
1,648,030 engines (up 19.1 percent).
Audi Brussels, Belgium
Production of 68,939 Audi cars (A1 starting in
May 2010, A3 until May 2010, up 189.8 per-
cent).
Bratislava, Slovakia
Production of 47,769 Audi Q7 models (up
71.0 percent).

Trade & Investment | www.trade-investment.eu 19 January~February 2011


World Productivity
Returns to Solid
Growth in 2010, But
Future Trend Remains
Unclear
The world economy returned to solid
productivity growth in 2010, as GDP in
most countries recovered strongly from
the 2008/09 financial and economic crisis,
while employment lagged behind, The
Conference Board reported at the end
of January 2011.
While advanced regions left recession
firmly in the rearview mirror, emerging
economies continue to drive both global
growth and global productivity growth.
The U.S. economy remained on a higher
Trade & Investment | www.trade-investment.eu
Finance and banking
productivity growth path than Europe in
2010, but their productivity growth rates
may converge, at least temporarily, in 2011
as U.S. employment picks up momentum.
Global productivity growth may moderate
slightly in 2011 as cyclical effects abate.
„Global productivity growth has recovered
remarkably well following the economic
and financial crisis,“ said Bart van Ark,
Senior Vice President and Chief Economist
of The Conference Board. „It remains to be
seen whether global productivity growth
will return to its pre-recession trend as
employment picks up momentum in 2011.“
„U.S. productivity growth will be tempered
briefly in 2011 as employment recovers
from its major recession cutbacks but that‘s
temporary - the underlying productivity
growth trend in the United States remains
stronger than it is in Europe.“
The data reported today is drawn from
The Conference Board Total Economy
Database. Widely watched and utilized by
analysts around the world, the database
is available free of charge for public use.
It is updated in January in The Conference
Board Productivity Brief and in more in-
depth reports later in the year.
Among conference‘s key points:
As cyclical effects abate, advanced
economies‘ productivity gains from 2010
will moderate slightly in 2011. Advanced
economies saw an above-trend recovery
in labor-productivity growth in 2010 but
this is projected to decelerate in 2011.
Among emerging countries, China
and India remain the largest and most
dynamic economies in productivity terms,
with respective productivity growth of
8.7 percent and 5.4 percent in 2010.
20 January~February 2011
In 2010, Turkey‘s productivity growth
jumped, Brazil outperformed the Latin
American region as a whole, and Russia‘s
productivity growth recovered remarkably.
The long-term trends in world labor
productivity and Total Factor Productivity
are still weak.
U.S. productivity growth will slow
substantially in 2011 and could even fall
below the rate in the Euro Area.
Spanish banks on the
mend
Construction cranes hovered on the skyline,
savings banks were churning out residential
mortgages and loans to developers, and
everyone acted like the real estate boom
would never end.
South Florida a few years ago? No, this was
Spain in 2007. And just as the South Florida
real estate bubble burst, so did Spain‘s.
„We got carried away. In a way, people
thought the housing boom would last
forever,“ said Santiago Carbo-Valverde, an
Trade & Investment | www.trade-investment.eu
economics professor at the University of
Granada who also heads financial studies
for the Spanish Savings Bank Foundation.
„We were caught red-handed with 400
billion euros -- about half a trillion dollars
at the time -- lent to developers.“
As the Spanish economy slowed, projects
didn‘t get built, loans didn‘t get repaid,
properties fell into foreclosure and Spain‘s
mutual savings banks -- the cajas de
ahorro that had largely bankrolled the
construction boom -- were no longer
able to increase capital through profits.
It was clear a restructuring was needed,
said Carbo-Valverde, who was in Miami
last week at the invitation of the Florida
International Bankers Association to
explain steps Spain has taken to revamp
its troubled cajas.
„We feel Spain is taking the right measures
to deal with the crisis,“ said Dario Fuentes,
president of FIBA and general manager of
Caja Mediterraneo‘s agency office in Miami.
„We in FIBA feel the reality is changing but
the message is not getting out.“
When the 2007-2008 global economic
crisis began, Spanish banks were relatively
well-capitalized and weren‘t involved
in subprime mortgages or invested in
the toxic securities that poisoned the
U.S. financial system. That allowed some
resilience as the financial crisis rippled
around the world.
„We weren‘t facing the same type of
meltdown. At first the steps taken in
Spain weren‘t as big because Spanish
banks didn‘t need the same type of
recapitalization as banks did in most
western nations,“ said Carbo-Valverde,
who also serves as a consultant for the
Federal Reserve Bank of Chicago.
„The prognosis was the banking system
was strong enough to resist,“ he said.
But as the Spanish housing market
collapsed and the economy began a
downward spiral, the cajas were in trouble.
However, said Fuentes, it was more a case
of too many eggs in one basket than too
many bad loans as in the United States.
The government seized two small insolvent
cajas and encouraged others to merge by
allowing them to tap money from a special
fund if they undertook restructuring,
21 January~February 2011

which has included closing branches and
reducing staff.
The biggest merger brings Caja Madrid
-- Spain‘s second largest savings bank
-- together with Bancaja and five smaller
regional cajas in a financial group headed
by a new commercial bank, New Bank. It
will become the third-largest financial
institution in Spain.
Traditionally, cajas haven‘t had shareholders
and have reinvested their profits in cultural
and educational activities. They have often
been controlled by regional politicians.
But the reforms will open the cajas to
new business models and allow them to
tap capital markets.
Since the restructuring began, the mergers
have reduced the number of cajas from 45
to 17. The savings banks that have joined
forces tend to have synergies that lower
operating costs.
For South Florida bankers, what happens
in Spain isn‘t just an abstraction thousands
of miles away. Ten Spanish banks have set
up agencies, branches or representative
offices in South Florida over the past
decade, said Ana Cruz-Taura, regional
Trade & Investment | www.trade-investment.eu
Finance and banking
community development director in the
Miami office of the Federal Reserve Bank
of Atlanta.
About 50 percent of foreign banking assets
in South Florida are Spanish, she said.
In 2008, Caja Madrid brought an 83 percent
share in Miami-based City National Bank
of Florida for $927 million. The Federal
Reserve recently gave its approval for the
merged Spanish cajas to indirectly acquire
City National, its parent City National
Bancshares, and CM Florida Holdings of
Coral Gables.
Under the merger, Caja Madrid will own
52 percent of the shares in New Bank and
retain control.
„All of this is good news for the future of
City National Bank as our parent company
will have even more resources to help
support our anticipated growth,“ said Jorge
Gonzalez, president and chief executive
of City National, in a recent statement.
In general, Fuentes said, Spanish banks
„will come out stronger as a result of
the merger process. This is good news
in Florida.“
There are about 500 Spanish-owned
multinationals in the United States -- and
around 380 in Florida. Spanish banks have
followed these companies to South Florida
where they can keep track of business in the
United States as well as in Latin America.
„The large Hispanic population and the
South Florida gateway to Latin America
tends to create a welcoming environment,“
said Cruz-Taura. „Since they‘re in a mature
market in Spain, the growth opportunities
will continue to pull them in.“
Prospecting internationally is also a
strategy that many Spanish companies
have adopted as the economy soured at
home. Unemployment is now at about
20 percent, there‘s a worrisome budget
deficit, and economic growth is expected
to be near 0 this year.
The International Monetary Fund says the
Spanish recovery will be„weak and fragile“
and its analysts don‘t foresee GDP growth
exceeding 2 percent until 2014. But the
Spanish government has taken aim at its
budget deficit with labor reforms, proposed
pension reform and austerity measures
that have sparked widespread protests.
Late last year the Organization for Economic
Cooperation and Development said it
expected Spain would reach its budget
deficit target this year. But most analysts
expect the jobless rate to remain high.
Meanwhile, about 70 percent of small-
and medium-sized businesses in Spain
are trying to invest in or trade with Latin
America and the United States, said
Fuentes. „If we want to overcome these
crises, we have to think globally.“
To help understanding on both sides of
the Atlantic, FIBA is planning an event
in Spain in May that will bring together
banks and regulators from both the United
States and Spain. „This will be FIBA‘s first
trip to Spain,“ said Fuentes.
Still, Spain‘s ongoing economic problems
and massive debt have created a crisis
of confidence among some investors
who wonder if Spain will eventually be
forced into a EU financial rescue package
as Ireland was.
But Carbo-Valverde said such a bailout
isn‘t needed in Spain where banking
assets account for a far smaller share of
the overall economy than in Ireland. And,
he added,„Spanish banks are very solvent.“
In July, 91 European Union banks -- about
one-third of them Spanish -- underwent
22 January~February 2011
stress tests to measure their ability to
maintain solvency, and a second round of
stress tests in Spain is coming up shortly.
Spanish banks will be asked to provide
details about their mortgage portfolios
and loans to developers.
„We hope it will clear up the doubts,“ said
Carbo-Valverde.
China to raise deposit
reserve requirement
ratio
China has said it will raise next week the
deposit reserve requirement ratio for its
major banks amid growing worries over
inflation ahead of the Chinese New Year.
The People‘s Bank of China announced late
Friday on its website that it will hike the
reserve requirement ratio for the country‘s
deposit-taking financial institutions by 0.5
percentage point, effective at the end of
January 2011.
Since late October, Beijing has adjusted
banks‘ reserve ratios on four occasions,
raising interest rates twice, as the world‘s
second-largest economy continues its
battle against inflation.
China‘s inflation is expected to have
exceeded the government‘s target of
3 per cent for last year.
Trade & Investment | www.trade-investment.eu
Citigroup Announces
Appointment of John
Havens as President
and Chief Operating
Officer
Citigroup Chief Executive Officer Vikram
Pandit today announced changes to Citi‘s
management structure. John Havens,
currently CEO of Citi‘s Institutional Clients
Group (ICG), will become President and
Chief Operating Officer of Citigroup. In
this role, Mr. Havens will be responsible
for Citi‘s day-to-day operations and report
to Mr. Pandit.
Within the ICG, James A. Forese, currently
the Co-Head of Global Markets, will take
on new responsibilities and become the
CEO of Securities and Banking. Ned Kelly,
currently a Citi Vice Chairman, will assume a
new role as Chairman of the ICG. Francesco
Vanni d‘Archirafi will continue as CEO of
Global Transaction Services. They will all
report to Mr. Havens, as will the regional
CEOs of Europe, the Middle East and Africa,
the regional CEOs of Asia Pacific, and the
heads of certain global functions.
Mr. Pandit said, „John Havens is one of
this company‘s strongest managers and
best leaders. He‘s been indispensable
to the turnaround of Citi. This role will
take advantage of the full range of his
management talent and experience, and
will allow all of us to sharply focus on
executing our plans for the future. Our
strategy is working, as our full-year earnings
and four straight quarters of profitability
demonstrate. This new management
structure will serve the company well
as we aim to enter into a new phase of
responsible and sustained growth.“
Mr. Havens said, „While Citi has come a
long way in a short time, there is much
more to do. I am looking forward to a new
role on this great team, working not only
with the Institutional Clients Group but
our entire franchise. Most importantly,
I remain excited about helping Citi regain
its position as the world‘s most respected
and successful financial institution.“
Citibank, N.A. CEO Gene McQuade, Chief
Financial Officer John C. Gerspach, Chief
Risk Officer Brian Leach, Citi Holdings
CEO Michael L. Corbat, General Counsel
Michael Helfer, and Manuel Medina-Mora,
whose responsibilities include Citi‘s global
consumer strategy, will continue to report
directly to Mr. Pandit.
Mr. Pandit announced the changes in
the attached memo sent to Citigroup
employees today.
Citi, the leading global financial services
company, has approximately 200 million
customer accounts and does business in
more than 160 countries and jurisdictions.
Through Citicorp and Citi Holdings, Citi
provides consumers, corporations, go-
vernments and institutions with a broad
range of financial products and services,
including consumer banking and credit,
corporate and investment banking, secu-
rities brokerage, transaction services, and
wealth management.
23 January~February 2011
Focus on Logistics: Methods
for Improving the Supply
Chain Getting the right product to the right person exactly on time
is the essential mission of logistics. This basic concept hasn’t
changed since time immemorial, but just how to achieve this
has undergone remarkable transformations over the last decade
or so. New technologies, such as GPRS and RFID, have been gathering momentum, and will
continue to do so, especially in the food and beverage sector.
Silke Humphrys has been exploring some of the innovations that have impacted the industry in
recent years, including 4PL, the collaboration agenda, and RFID.

shipping activities. It offers particularly

SMEs the opportunity to access national
carriers at reduced rates.

Case Study: Aggregate Industries

4PL – Fourth Party
Logistics
One of the key buzzwords that has been
buzzing around the industry in recent
years is 4PL, or Fourth Party Logistics.
This is essentially an arrangement in
which a firm outsources its logistical
operations to two or more specialist
firms (third parties) in addition to hiring
another specialist – the fourth party – to
co-ordinate the activities of the third
parties. Sounds complicated? Perhaps,
but it does offer a great way of improving
efficiencies and reducing costs, as it
leverages the infrastructure, expertise
and technology of companies that really
know what they’re doing. A 4PL provider
will assemble the resources, capabilities
and technology of its own organisation
to design, build and run comprehensive
supply chain solutions for its clients. In
contrast to traditional 3PL providers, a
4PL will provide a range of value added
services with a strong emphasis on
business process analysis, re-engineering
and technology implementation. This will
achieve major optimisation of product
configuration, assembly and packaging as
well restructuring the core transport and
Aggregate Industries (AI) is a leading
construction and building materials
company for UK, US and European markets.
With environmental responsibility high on
their agenda, AI needed to optimise their
supply chain (involving circa 500 hauliers
and a variety of local processes). With
lengthy journey times, inconsistent service
performance and rising costs; UK-based
supply chain provider TDG introduced a
company-wide 4PL solution to maximise
efficiency, reduce empty miles, and cut
logistics costs from £48 million (approx.
57 million €). The eight-year contract covers
AI’s entire UK road transport operation.
Daily activities are co-ordinated via TDG’s
4PL platform located at Linby. All of AI’s
preferred hauliers remain in place and
are now contracted to TDG. Drivers can
access up-to-date information on their
laptops, and the warehouse systems are
all linked, giving transport and warehouse
teams complete control. That means
greater business clarity for AI, and lets
TDG oversee an optimised end-to-end
solution. It is already delivering quantifiable
benefits for AI, including savings of over
three million road miles per year, as well
as base line savings of 10% across 69
national sites. In addition, TDG covers
on-time delivery, Health & Safety and
continuous improvement, and takes on
any associated costs if performance targets
are not achieved.

Trade & Investment | www.trade-investment.eu 24 January~February 2011


Collaboration –
Relationships Matter
In their seminal 2006 book “ The
Relationship-Driven Supply Chain
– Creating a Culture of Collaboration
throughout the Chain”, Stuart Emmett and
Barry Crocker outlined how fundamental
to supply chain management relationships
are nowadays. One of the key principles
of supply chains is that they force
individual businesses to come together
to integrate and co-ordinate their supplier
and customer activities: buying, making,
moving and selling goods. It is how these
relationships are handled, with all internal
and external supply chain players, that
is fundamental to the efficiency and the
effectiveness of the overall supply chains
involved.
Aforementioned logistics specialist
TDG is committed to advancing the
collaboration agenda because it is
convinced it can make its customers
more competitive. In addition, getting
empty trucks off the roads is beneficial
for the environment. TDG’s approach to
collaborative management logistics is
Trade & Investment | www.trade-investment.eu
simple: bring together the key players from
all parties to explore the opportunities
for consolidating warehousing and
distribution logistics operations; align
the strategy to its customers’ business
goals; and then get to work to make it
a reality.
Since 2006 the company has applied
this concept to two of its key customers:
Kellogg’s and Kimberly-Clark. The aim
was to introduce a collaboration project
to consolidate the logistics operations
of the two consumer manufacturing
companies. The project was launched in
the South East of England and was based
on the premise that Kimberly-Clark and
Kellogg’s share many small independent
and multiple retail customers, and both
also have a long-term partnership with
TDG. Since its inception, the project
has delivered some impressive results,
including a reduction of annual miles of
270,000; a drop in diesel consumption of
over 30,000 gallons per annum; annual
savings of 380,000 kg CO2 emissions;
and a 7% reduction in transport costs
for both companies. Peter Surtees,
Director of European Supply Chain for
Kimberly-Clark commented: “Simply by
organising one joint delivery instead of
two, we have reduced congestion, miles
travelled, the amount of empty trucks
on the roads, and focused on reducing
our environmental impact. At the end of
the day the retailers benefit because we
have ensured shelves are stocked more
frequently with consumers’ favourite
brands.”
RFID – The biggest
step in supply chain
evolution
RFID (radio frequency identification)
enables recording and collecting of data
throughout the whole supply chain. This
way the consumer can follow up the
lifecycle of a product all the way from
the point of origin to the point of sale.
The self- monitoring system cares for
the condition of the item through the
entire journey in the transportation as
well as on the shop floor. The consumer
can be assured that for instance the food
on the table is safe and fresh. RFID tags
can store great quantities of information
specific to the individual item, including
serial number, point of origin, and details
25 January~February 2011

of its journey from manufacture to point
of purchase.
Nordic ID is one of the leading mobile RFID
providers in Europe and has also developed
a wireless self-monitoring system; it offers
the tools to realise RFID tracking and self-
monitoring. Jorma Lalla, CEO, illustrates the
benefits: “With this kind of tag, you could
scan a packet of fish fillets and see where
and when they were processed, when they
were put on a truck, how long they spent
there, and what their temperature was
at every point along the journey. This is
incredible visibility, giving manufacturers,
logistics companies and retailers the rich
data they need to streamline processes for
maximum efficiency. It also helps to track
assets better, for less shrinkage. Goods are
less apt to disappear mysteriously when
there is visibility all along the journey.”
Trade & Investment | www.trade-investment.eu
Focus on Logistics: Methods for Improving
the Supply Chain
Case Study: Assistor
At Finnish vehicle Terminal Assistor, Nordic
ID RFID handhelds are used to speed
up handling processes, and improve
the accuracy and efficiency of their
overall operations. Assistor, a provider of
complete logistics for vehicles and spare
parts to the Baltic region, sees around
350,000 vehicles move through their
facilities yearly. Prior to implementing
the mobile RFID system, Assistor utilised
a time consuming barcode and paper-
based tracking system to process vehicles.
Given the sheer volume of vehicles being
handled, the system was prone to errors
and inaccuracies, and simply unfit to meet
their growing volume of operations and
service offerings.
With the mobile RFID system in place, every
car entering the terminal has a passive
UHF RFID Gen2 tag affixed to its rear
view mirror. When a vehicle is transferred
during the handling process, information
is updated to the ERP (Enterprise Resource
Planning) system with a quick scan of the
RFID tag. It is then linked to the back-end
system via WLAN or GPRS to allow efficient
real-time tracking of operations. Having
implemented a system that accurately
identifies and tracks their vehicles
throughout the processing cycle, Assistor
is experiencing a number of significant
benefits. For instance, time for processing
has been reduced and most importantly
errors have been virtually eliminated.
What’s more, they are able to handle more
cars with the same amount of personnel
and a reduced margin of error.
Crystal Ball
So what does the future hold for logistics?
How will companies adapt to ensure their
survival with growing demands placed
upon them? According to Kerstin Eckstein,
26 January~February 2011
Deputy Spokesperson at DB Schenker, the two critical
elements for success are productivity and growth. “We are
placing our bets on both”, she comments. “One of the key
areas of growth we have identified is vertical markets, such
as automotive, electronics, pharmaceuticals, wood and
paper, FMCG and chemicals. We will increase our efforts in
these sectors dramatically in the coming months. It is also
essential to review even established processes continually;
this is how we shape the future of logistics. The provider
who is adaptable, disposes of a strong infrastructure and
expands it according to demand, who in addition has a THE 14TH CENTRAL EUROPEAN
strong staff base and comes to market early with the right LOGISTICS AND TRANSPORT
solutions stands the best chance of survival in the market.” CONGRESS

“Our prognosis for 2011 is positive, in fact we have BUSINESS ARENA

experienced stronger growth in 2010 than expected,”
Ms Eckstein continues. “We expect this to continue in the
coming year, to what extent remains to be seen.”
CONFERENCE
Interactive discussions, analyses,
The ideal spot for you and your business.
Over 40 partners will introduce you to the
market research, case studies, latest solutions, new technologies and trends…
endless information and the sharing of
experiences with your professional peers…

Andreas Froschmayer, Divisional Manager Corporate

Development/PR at Dachser GmbH, adds: “The logistics
sector has started the year 2011 full of verve. The worldwide
economic recovery is gathering momentum, which results in
a positive outlook for logistics providers. Dachser’s goal for
this year is intelligent growth once again. We want to achieve
continuous growth in our European business and further
expand our Air & Sea Logistics as well as Food Logistics.”
Silke Humphrys

CORPORATE SEMINARS
Take advantage of the hundreds
of logistics pros under one roof.
Present your comany‘s latest
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LOGISTICS HR FORUM
HR and personnel issues in logistics.
Seminars for future graduates of high
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LOGISTICS CENTER EXCURSIONS
How major logistics centers in the
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We’ll show you logistics in practice!

THREE PARTS OF THE CONFERENCE PROGRAM:

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MARKET AND CHANGES IN TRANSPARENCY

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HUNDREDS OF LOGISTICS PROFESSIONALS

IN THE BUSINESS ARENA – CONTACTS,
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www.eastlog.biz
AMPER Trade Fair has been reigning the field of electrotechnics
and electronics for more than 16 years

Trade & Investment | www.trade-investment.eu 28 January~February 2011

 The history of the AMPER Trade Fair
began in 1994 when it first took place in
the Palace of Culture in Prague, hosting
311 exhibitors. In 1996, the trade fair
with 506 exhibitors moved to the Exhi-
bition Center area Strahov and for the
next seven years – except for 2000 – it
was held here. One exception from the
line of trade fairs at Strahov was the
year of 2000 when Amper was organi-
zed at the Prague Exhibition Center at
Holešovice. At the time, the trade fair
hosted around 670 exhibitors from 12
of the world’s countries. In 2004, Amper
started its new era at the PVA Exhibition
Center – Letňany, where the fair was
held for 6 years. The year of 2011 brings
another breakthrough in the history of
the Amper Trade Fair. Not only will it be
in a new location – it will be in an enti-
rely different city. The 19th Trade Fair
has been moved to the Brno Exhibition
Center where it is anticipated to be held
in the future years, as well.

AMPER news at the

end of 2010
The first presentation of the Trade Fair
took place on November 26, 2010 on the
premises of the Brno Exposition Center
in the form of the AMPER 2011 VISITORS
DAY. In the presence of many existing
exhibitors, representatives of the providers
of services to exhibitors and the organizer,
the new modern pavilions P, V and F were
introduced. These areas have been reserved
for the 19th AMPER Trade Fair. During this
time it was possible to talk about provided
services (construction of exhibition stands,
catering, shipping, accommodations,
etc.) with the very people who provide
them. A press conference was held as
part of the Visitors Day, with invitations
to the representatives of regional media,
presenting the opportunity to view some of
the main news of the 19th Trade Fair. At the
same time, a show was held to present five
versions of the proposed official uniform
of the AMPER 2011 hostess costumes and
a vote was taken to select the best one.

Trade & Investment | www.trade-investment.eu 29 January~February 2011

AMPER Trade Fair has been reigning the field of electrotechnics
and electronics for more than 16 years
During the month of
December, additional
major exhibitors were
registered:
OEZ, which, over the course of 70 years,
developed from a manufacturer of circuit
breakers and fuses into a comprehensive
supplier of products and services in the
field of protection of low-voltage electric
circuits and devices. Extensive services
and technical support have become
an integral part of their portfolio. OEZ
products find their application in power
engineering, industry, infrastructure and
residential development. In 1994, OEZ
became a private, purely Czech company.
Dynamic development of the company
foreshadowed the arrival of a strong foreign
partner. In 2007, the Siemens Corporation
became such a partner. At present, OEZ
employs about 1600 workers. Visit the
exposition of OEZ at the AMPER Trade
Fair at pavilion P – the stand number will
be specified at a later time.
Furthermore, for example, ABB, which is
one of the foremost global manufacturers
of technology for power engineering and
automation and regularly presents new
development in the area of technologies
Trade & Investment | www.trade-investment.eu
that increase the competitiveness of the
customers and facilitate efficient use of
energy at many professional fairs. All
of the ABB divisions will be presented
at Amper 2011, including the Products
and Systems for Power Engineering,
Production Automation and Drives, Process
Automation and Low Voltage Products
division. ABB also participates in our
regular GOLD AMPER competition and
in past years they won the main prize on
several occasions.
SCHRACK Technik, which has presented
itself for several decades as a competent
partner in the field of low-voltage
electrical engineering, registered for
the Fair in the middle of December.
The main philosophy of the company is
quality service and continuous product
development. Making use of the wide
range of SCHRACK products, many major
projects have been designed and delivered
all over the world in cooperation with well-
known manufacturers of switchgear. The
products of these companies are used for
distribution of electric power in buildings
and facilities, ensuring safe operation and
control of all activities.
Or another example - OMRON Electronics, a
global leader in the production of advanced
products of industrial automation and
one of the top suppliers of professional
application solutions. They have 50 years
of experience in the field of industrial
automation and a strong position in the
field of scanning, control and imaging
components, movement control units and
control panels. At AMPER 2011, OMPRON
will present innovations in the area of
drives, sensors, automation and safety.
The end of the year
has meant more than
just new exhibitors for
AMPER.
On December 1, 2010, the Trade Fair
acquired the sponsorship of the Ministry of
Industry and Trade of the Czech Republic.
On December 10, 2010, Miroslava Němcová,
the Chairman of the Chamber of Deputies,
took official patronage over the Trade
Fair. Subsequently, on December 29, Petr
Nečas, the Prime Minister of the Czech
Republic became a patron of this project,
as well. Among traditional partners of
the AMPER Trade Fair are the Schools
of Electrical Engineering of the Czech
Technical Universities. Their individual
presentations will be presented to the
visitors throughout the Fair, including
lectures and practical presentations by VUT
Brno, ČVUT Prague and VŠB-TU Ostrava.
As part of AMPER 2011, Terinvest s.r.o.
in cooperation with ČVUT Prague will
organize a competition for the most
beneficial exhibit of the Trade Fair – GOLD
ALMPER 2011.
Sponsored by the Association of
Entrepreneurs and Traders of the Czech
Republic, a competition was launched in
January for the best business plan of the
year – AMPER – IDEA 2011. The objective of
the competition is to support interesting
business plans in the area of electrical
engineering, electronics, automotive
industry and IT. The competition especially
focuses on the students of ČVUT Prague,
VÚT Brno, VŠB – TU Ostrava, Škoda Auto
Vysoká škola, and Technical University
Liberec. Valuable prizes from the sponsors
will be awarded during the award ceremony
of GOLD AMPER at the AMPER Trade Fair
at Brno Exposition Grounds – on March
29, 2011 at 17.00. The project sponsors are
the portal Busyman.cz, Ertrag@Sicherheit,
Mladá Fronta, Economia and others. To
register for GOLD AMPER,as well as for
AMPER – IDEA 2011, visit www.amper.cz.
30 January~February 2011
 GOLDBECK GROUP – Building a Solid
Future from Innovation and Service

How does a company that started

with five employees in 1969, become
a company with 2,389 employees and
turnover of over a billion a year, only 40
years later? There are many of factors
of course but, in talking to Mr Uwe
Brackmann, the Managing Director, the
main ingredients seem to be passion and
enthusiasm.

The founder of the Goldbeck group, Ortwin

Goldbeck, retired four years ago but still
has some involvement in the company.
He has no company jet, villa in the south
of France or other expensive hobbies -
he’s passionate about building machines
that cut, bend and shape steel and so his
hobby is his business. His energy, focus and
money have always gone to the business
he loves and the business has benefitted
as a result.

History
Starting as a manufacturer of steel
skeletons for sheds, the company then
went through four further development
phases:

Trade & Investment | www.trade-investment.eu 32 January~February 2011

1. From just making the steel skeletons,
it moved into turn-key construction –
providing all the trades and materials
for building industrial and commercial
buildings. This way, the owner only
has to deal with one company – Gold-
beck – from turning the first sod to
turning the key in their new building.
2. Later, Goldbeck added their design
service so that they could complete
the whole project from the archi-
tectural design to the hand-over of
the key.
3. Then they added their maintenance
function so that the owner need do
nothing to their building once it is
built – Goldbeck will design, build
and maintain the building. At present
they maintain 740 buildings for the
owners.
4. Adding to their search for excellence
and quality, they now produce all the
key components for their building
projects. They have two steel factories,
in Germany, which produce 70,000
tonnes of steel a year and they also
have two precast concrete factories –
one in Germany and one in the Czech
Republic.
Trade & Investment | www.trade-investment.eu
The Goldbeck USP
What makes Goldberg stand out in the
construction industry is that most of the
construction is carried out in the controlled
environment of factories. The buildings are
modular and the factory-made process
has several advantages:
1. It is not subject to bad weather condi-
tions,
2. The manufacture of components is
done in a controllable, systematic and
repeatable way, ensuring the highest
precision and quality possible,
3. Once the components are manu-
factured, they are shipped to the site
and assembled, making the whole
process much faster than the traditi-
onal building methods. Goldbeck
recently built a 900-car car-parking
building in Aberdeen, Scotland, and
the project took a mere six months.
4. Because they take the project from
design to build to maintenance, the de-
sign takes into account their particular
building system and they pride them-
selves on the efficiency of their logistics
in getting materials manufactured in
their factories and assembled on site.
Such is their commitment to the quality
of their manufacturing plant; Goldbeck
has invested €100 million in production
equipment, in the last four years – all
from cash-flow.
Customers
The company had built up a loyal following
of customers – mainly medium-sized family
companies.When the Berlin wall came
down those customers expanded their
operations into Eastern Europe, taking
Goldbeck with them to build their new
factories, offices, shopping complexes,
car-parks and schools. Thus their business
expanded east of Germany, by customer
demand.
Because it manufactures and transports
all its own materials, Goldbeck is limited
to building projects close to its factories
– Europe. It has building projects in Italy,
Holland, Germany, Belgium, Poland, United
Kingdom, Slovakia, Czech Republic, Austria
and Switzerland.
33 January~February 2011

Mr Brackmann suggested that their
customers were so loyal because of 3
main factors:
• Goldbeck gave them the best price
available,
• Goldbeck always kept to their
schedules, and
• Goldbeck always kept their word.
This unwavering integrity has paid off in
company success. Because the building
system is more controlled than other
systems and because they are usually
manufacturing similar things, there is
less deviation and it’s a teachable and
predictable system. They have been
undertaking some of their processes for
over ten years and they constantly strive
to optimise them, looking for constant
improvement.
Employees
Mr Brackmann explained how they
motivate a workforce of 2,389 people to
continue to build high precision buildings
with tight time frames:
1. They pay market or above-market
rates,
2. The company continually shares its
vision and plans, creating a perspec-
tive of continual success and it conti-
Trade & Investment | www.trade-investment.eu
GOLDBECK GROUP – Building a Solid
Future from Innovation and Service
nually strives to make its employees
successful,
3. There are constant trainings, seminars
and discussions, keeping all personnel
up to date with company news and
industry knowledge. Over 900 of the
employees have a university degree.
4. Employees can buy shares and so
they benefit from profits, and
5. Salaries are increased in line with
company profits – a great incentive to
help the company succeed!
Environment
The company takes a very active role in
reducing its carbon footprint and some
examples are:
1. The building from which Mr Brack-
mann works is a zero-energy building,
drawing it’s energy needs from the
earth through a massive heat pump
system,
2. They now build solar collectors and
install them on most of their buildings,
3. Most of the steel is recycled steel,
reducing the need for mining, and
4. The painting process was changed
from spray painting – which is very
wasteful and toxic – to a powder
coating system. The changeover to a
more environmentally friendly pain-
ting system cost the company “a few
million euros”, in Mr Brackmann’s
words, such is their commitment to
the environment.
Also, most of their buildings are certified
by the USA LEED, the UK BREEAM or the
German DGNB standard, depending on
their particular clients’ requirements.
Finance
Because the profits are ploughed back
into the business – and not into expensive
hobbies out of it – the cash-flows have
always been healthy and the business
has, therefore, had the opportunity to
continually expand without having to seek
outside finance. They continually aim to be
independent of banks and other lending
institutions and currently have a 40%
equity ratio and their dynamic debt rate
is less than 5 weeks – the operating time
it would take the company to repay its
debts. These are remarkable figures in the
current economy, especially considering
the speed with which Goldbeck has
grown.
The credit crunch saw many of their
projects being delayed or halted as
their customers experienced economic
difficulties or their banks/lenders cut
back on their lending. However, at this
very same time, many medium-sized
family companies expanded and Germany
is currently undergoing an economic
resurgence, as the automotive and tooling
industries expand their production to meet
(mainly) demand from Asia.
Overall, the credit crunch had a dampening
effect on Goldbeck but their turnover did
not dip below €1 billion and the portfolio
of upcoming projects is above last year’s
turnover and above budgeted figures
for this year.
Passion and commitment
The enthusiasm Ortwin Goldbeck
has held for his company and for his
industry, for over 40 years, is reflected
in the enthusiasm the current Managing
Director, Mr Uwe Brackmann, displays
about his job and his company. With that
passion and commitment to excellence
filtering down to every worker, it is not
surprising to witness a company with
a healthy balance sheet and a healthy
forward order book from a growing list
of satisfied customers.
And the lesson here? Perhaps it’s to do
what you love doing and to do it the best
you can, every single time.
Introduction/Summary
In these tough economic times, it is
refreshing to see successful, healthy and
growing companies. The Goldbeck group,
a German commercial builder, is such a
company. Their success is testimony to
the passion for what they do and to their
commitment to doing it with precision
and excellence every single time. They
have also created a niche market, doing
what no other business does – they
design, manufacture and maintain large
commercial buildings, throughout Europe.
And they do it with such enthusiasm, they
cannot help but succeed.
Philip Bradbury
34 January~February 2011
 Aus Tradition zukunftsstark
Damals als echte Pioniere begonnen, haben
uns Mut, Leistungsfähigkeit und Qualitäts-
anspruch dahin gebracht, wo wir heute
stehen: ganz nach vorn in das Vertrauen
unserer Auftraggeber.
Und weil wir den Erhalt besonderer Werte
ebenso schätzen wie den Blick nach vorn,
werden wir auch weiterhin unsere Stärken
mit Tradition und Innovation bündeln.
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The State Motorway Management Co.
Ltd., founded in August 2000 by the
merger of three companies, is responsi-
ble for the operation and maintenance
of roughly three quarters of Hungary’s
highway system. All figures are expres-
sed in more than 700 km of highway,
some 200 km motorway and roads and
366 km long road junction branch –
Antal Pálfay, Chief Technical Officer and
Deputy CEO of State Motorway Manage-
ment talks to Henrik Tunyogi.
Trade & Investment | www.trade-investment.eu
ÁLLAMI AUTÓPÁLYA KEZELŐ
Guardians of the Highways
The State Motorway Management (SMM)
has two basic tasks. On the one hand is
the operation and maintenance of the
state highways, on the other hand is
the sale of rights to use and control of
the entire toll road system in Hungary.
„Since the paper-based sticker does not
exist, rights are granted for plates which
are checked regularly by automated
control equipment. SMM is responsible
to collect road tolls not only on state
owned and operated motorways, but on
the private motorways as well“, pointed
out Mr Pálfay.
Safety on roads
Under normal circumstances, the
maintenance of motorways is a daily
routine, the surface of the lanes needs some
restructuring time by time. The company
founded in 2000, had received all resources
needed for road sustenance until 2008, but
from 2009 the crisis had its effect, so they
could not fully raise necessary resources
for maintenance. In 2010, apart from the
lack of money caused by the economic
downturn, a lot of natural disasters (floods,
rainfall, etc.), which destroyed bridges and
38 January~February 2011
 source: Hink stock photos
covers over a number of places, made the
company’s job even more difficult.
This year, the government allocated
HUF 4.4 billion is available in full for the
company. This sum will be given to the
maintenance of the motorway network.
In addition, a further HUF 2 billion would
still be necessary to restore the natural
damage to the motorway network.
Operation of the state highways are based
on two pillars: security and culture in
transport. State Motorway Management
Ltd. emphasizes both. The highway safety
depends on the quality of roads and
Trade & Investment | www.trade-investment.eu
transport culture. “Eastern European traffic
culture is also present in Hungary, with large
transit traffic, so the highway traffic safety
situation cannot be compared to western
standard, although the development of
highways practically corresponds to those
standards. Our company does not wait for
the appearance of road safety statistics, but
our dedicated professionals also meet once
a week and on the basis of the previous
week’s accidents they decide on a variety
of preventive measures. The company
is trying to develop so-called ‘forgiving
environment’ alongside roads, which
means that the roadside equipments,
such as columns, lamps or plates should
be protected by barriers and energy-
absorbing elements which are constantly
updated,” - Mr Pálfay summarized.
The company is also responsible for
ensuring the aesthetic and clean rest stops,
endeavouring to achieve the convenience
of travelling for people, and last but not
least, the environmental standards and
the care for the environment. Operation
of the highways has its impact on the
environmen in air quality, surface water
and groundwater quality, noise and the
appearance of various wastes. However, the
39 January~February 2011

wildlife is affected mostly by construction
sites of the motorways.
Need for speed
Speed control is another important part
of the pillars of the safe operation of
highways, which was jointly carried out
by the police and the State Motorway
Management. On many locations automatic
radar equipments had been installed, which
led to significant decrease of the average
speed on motorways. The company also
plans further installation of radars, which will
be operated in accordance with the police.
„Our company has a high expectation of a
drop in average speed on the motorways.
The traffic culture should be based on a
travel speed what we can control. If travel
speed is lower, it will definitely improve
the traffic situation. There are typical
highway accidents, such as tailgating
inadvertently. To try to avoid these kinds
of accidents we made follow-up distance
signs and we alert drivers on electronic
message boards to call their attention
to the importance of compliance with
keeping the distance. The motorway’s
hard shoulder is another permanent type
of risk for motorists. It is highly dangerous
to stop or to park there, or to stay in the
car, every year nearly every fifth accident
is happening in the hard shoulder zone of
the motorway. To evade these accidents
SMM put large outdoor advertisements
and through electronic message boards
attempts to draw more attention”, pointed
out Mr Pálfay.
“SMM is working hard on accident rescue
service; we operate a motor ambulance
Trade & Investment | www.trade-investment.eu
ÁLLAMI AUTÓPÁLYA KEZELŐ
Guardians of the Highways
service, which greatly improved efficiency
in life-saving. We also cooperate with the
helicopter ambulance service but most
important is working closely with the
police. Previously, motorways managed
by the State Motorway Management were
supervised by high-speed sections of
highway police, but they were replaced
by county police stations. Currently, all
of our Highway Engineering Sections
have a police division, which is very
effective in maintaining traffic security
and fighting against crime on motorways.
In order to increase their presence, at
times, we also provide financial support
to police officers above all, mostly in the
summer season and at priority sections,
such as the Balaton-Budapest route,”
said Mr Pálfay.
Privatization or public
property?
“State Motorway Management’s future is
depending on the actual government’s
strategy. Whether they make it a well-
functioning company and sell it or their
strategy is to manage and maintain state-
owned firms. The previous government
voted for the former, while the present
government voted for the latter solution.
So the previous desire of sale no longer
exists. It is however important to note
that the company has been prepared
up for sale since 2005. The company is
now ready for an IPO or to issue bonds.
SMM thus meets the expectations in
efficiency and in corporate culture, which
are necessary for companies listing. This
is significant in the sense that it is not a
sleepy, slow-motioned public company, but
a company whose organization, efficiency
and corporate culture is more competitive
and business like”, summarized the Deputy
Chief Executive Officer.
The toll system
On the toll road sections the eligibility
checks are carried out by 180 people. Apart
from the stationary cameras, a further
26 mobile cameras are working in the
audit. The backbone of the highway sticker
distribution is the petrol station network,
but the State Motorway Management
has its own sales sites as well. These sites
have an electronic database where it is
possible to check whether the driver has
a highway sticker. If he does not then he
may be taken to court.
The toll revenue, which reaches about
HUF 50 billion every year, and all the
toll income goes to the so-called Road-
Fund. The company operates the toll fee
collection system for HUF three billion.
The company’s current year’s average
employee number is 982, which has not
changed in the last 6-8 years, but instead
the company has significantly increased
efficiency, since the managed road network
has doubled, and while the controlling
tasks were significantly increased.
In recent years, the economic impact
of the crisis touched State Motorway
Management’s earnings, there was a 10%
decline in heavy traffic, and a 5% drop
on traffic in general. But in 2010, some
promising signs were already shown,
and an upturn also started in traffic and
revenue as well.
40 January~February 2011
From mowing the slopes – to de-icing on roads

hidrot@hidrot.hu
www.hidrot.hu

www.porr.hu

Wo lfga ng Wü rker
Germany is famous worldwide for its “Au-
tobahn“ – songs have been written about
it, everyone knows about the absence
of a speed limit... There is, in short, a
certain mystique about it. With more than
12,700km it is the third longest motorway
network in the world, after the US and Chi-
na. But how to keep such a vast network in
good shape, with increasing traffic, envi-
ronmental concerns and economic down-
turns to fight against? Silke Humphrys
spoke to Wolfgang Würker, deputy chief
executive of the Motorway Directorate for
Northern Bavaria, and Paul Lichtenwald,
chief executive of the southern counter-
part, about the challenges of ensuring
Bavarians can get to where they need to
go, today and in the years ahead.
Trade & Investment | www.trade-investment.eu
Motorway Directorate for Northern and
Southern Bavaria: Keeping Bavaria Moving
Financing the Network
Bavaria, in the south of Germany, is the
largest of the German ‚Bundesländer’
(federal states), with over 2,500km of
motorway connecting its towns and cities.
Two administrative bodies look after its
maintenance: the Autobahndirektion
Nordbayern (Motorway Directorate for
Northern Bavaria), and the Autobahn-
direktion Südbayern (Motorway Dire-
ctorate for Southern Bavaria). Between
them they handle the planning, cons-
truction, maintenance and upkeep of more
than 2,500km of motorway, supported
by 2,420 permanent staff. A lot of the
construction and repair work is put out
to tender, increasing the real workforce
further, and it is the agencies’ job to ensure
all works are carried out to stringent
guidelines.
The German motorway network as a
whole belongs to the Federal Republic of
Germany and is mainly state-funded. With
the exception of labour costs, which are
covered by the individual federal states,
it is financed from taxpayers’ money
and is free to use for most vehicles. In
August 2003 a toll was introduced for
HGVs of over 12 tonnes, the proceeds of
which are channeled straight back into
the network. It is, however, generally
up to the German federal government
to decide how the funds are applied –
where to build new, where to expand,
and where to repair.
42 January~February 2011

Motorway Directorate
for Northern Bavaria
1,320km of motorway, around 3,000 bridges,
34 service stations and 72 parking lots
with toilet facilities are being managed
and maintained by the agency and its
network of Motorway Maintenance Units.
An annual investment of around €350m
is provided for this purpose.
In the last few years, the agency completed
a major 6-lane expansion of the A9 between
Nuremberg and the state border to
Thuringia as well as the new construction
of the A71 and A73 at a combined cost of
€1.9bn. In addition, the trans-european A6
Trade & Investment | www.trade-investment.eu
between Nuremberg and Prague came to
a conclusion. Currently, there are further
6-lane expansions under construction on
the A3 and the A6.
New Operating Models
A pilot project of the Motorway Directorate
for Northern Bavaria is currently underway
to test a new operating model for the
road construction and maintenance of its
motorways. A contract has been awarded
to an external construction company to
build a 6km stretch of a 6-lane motorway,
complete with bridges, on and off ramps,
noise reduction measures and landscaping.
Thereafter, the construction firm is obliged
to conduct all maintenance and upkeep of
this 6km stretch for a period of 25 years.
Paul Lichtenwa ld
Deputy chief executive Wolfgang Würker:
„By tasking the construction firm with
the responsibility for maintaining its own
product for such a long period of time, we
are hoping for a better quality end result.“
There are plans to roll out this scheme
further over time.
As far as the economic crisis is concerned,
this has not significantly affected the
agency. Mr Würker explains: „The federal
government introduced special measures
when the crisis hit in 2008 in order to boost
the economy. As one of the benefactors of
these measures we actually experienced
a positive effect as a result and were
able to commence two projects earlier
than planned. So far we have not felt any
43 January~February 2011

negative impact as a result of the recent
economic problems.“
Caring for the Environment
National and international guidelines
such as Natura 2000 and FFH (Fauna
Flora Habitat) ensure that environmental
concerns are given top priority during the
planning and construction of any new
motorway, but there is also a high level
of retrospective installation of certain
environmental measures to existing roads.
One example is the addition of so-called
‚green bridges’, where in areas that have
been identified as containing trails for
certain species of wild animals special
corridors are being constructed that
ensure a safe passage for the animals.
The measure is quite extensive, consisting
of a 50-metre wide planted bridge across
the road, with large fencing on either side
of the motorway leading up to it. Two
such bridges have been installed on the
northern Bavarian motorway system to
date, at an expense of €5m each.
Measures for Noise Reduction
Alongside wider environmental challenges,
noise protection is a permanent problem
that is high on the agenda. The agency
is continually striving to improve noise
protection for those citizens living near
a motorway, and one measure currently
undergoing testing is a new type of noise-
reducing tarmac. Trial stretches have been
in operation for four years using stone
mastic noise-reducing asphalt, and results
have been positive so far. “We were the
first to test this particular type of tarmac,
which is now being tested in other federal
states, as well as in the Czech Republic”,
explains Mr Würker. “We are using a total of
25 km of this type of surfacing to conduct
measurements and analyses, and the
results are very promising, achieving a
noise reduction of up to 4db.”
Motorway Directorate
for Southern Bavaria
Covering a network of 1,200km, 1,160 perma-
nent employees look after the maintenance
of Southern Bavaria’s motorway system.
19 Motorway Maintenance Units are
available around the clock to take care
of the landscaping, keeping the roads
clear during the winter months – a very
important factor in this state which tends
to get a lot of snow – and being at hand
Trade & Investment | www.trade-investment.eu
Motorway Directorate for Northern and
Southern Bavaria: Keeping Bavaria Moving
to cordon off an area after an accident, committees created work groups in
for example. which solutions were discussed that
would minimise the negative impact for
Like its northern counterpart, the agency
the residents. Mr Lichtenwald: “We are
also outsources planning and construction
near the conclusion of these discussions,
projects to external engineering firms,
and this approach has been very well
adding another de facto 250 staff in a
received. It just means that there is less of
typical year. The average annual investment
a sense among the citizens that decisions
overall is between €300m and €350m.
are made arbitrarily.”
New Financial Models
Noise Reduction
Southern Bavaria is also looking at new
In a similar way to its colleagues in the
strategies to finance its projects in the
north of Bavaria, the southern agency
future, and is one step ahead of its northern
colleagues. Based on the PPP model (Public is also undertaking several tests of new
Private Partnership), a private consortium road surfacing materials that enable
has been commissioned which has already significant noise reduction. “One of the
completed a 40km stretch of motorway, measures we are currently testing is
due to be inaugurated in December. A putting a thin layer – 1,5-2cm – of tarmac
further 50km stretch is currently in the on top of a concrete layer”, explains Mr
planning stages. The unique twist: the Lichtenwald. “Concrete is durable, stable
financing for this project will not be made and can carry heavy loads. On the other
by the taxpayer, but come exclusively hand, it is not noiseless. By combining
from future income of the HGV toll on the stability of concrete with the noise-
that particular stretch. The consortium reducing quality of this special tarmac
will build and then operate the motorway we get the best of both.”
for 30 years; during this time it will receive
100% of the toll income. Paul Lichtenwald,
chief executive, comments: ”This is a
somewhat risky strategy for the operator,
as for example over the last two years we
have seen a 10% decline in income from the
HGV toll. At the same time however there
has been a toll increase, so overall things
have balanced out. A certain element of risk
is definitely there, but so is the potential
for great success.
“The state has in this case provided some
small initial investment; after 30 years of
operation the motorway will be returned
to the care of the agency – in a condition
that has been contractually specified, so
there is practically no risk on the part of
the highway agency with this model,” Mr
Lichtenwald concludes.
Planning dialogue with the community
Building or extending motorways is
always a contentious issue and likely to
create protest amongst those who live
near it. Therefore, about 18 months ago,
the agency decided to take a unique
approach when it comes to keeping an
open dialogue with the population. The
expansion of the A8 Munich to Salzburg
was on the cards – an enlargement to
six lanes for a stretch of 70km. For the
first time, a dialogue was instigated
involving all affected communities. The
various local administrations together
with citizens’ groups and planning
44 January~February 2011
 In Conclusion
It is no mean feat, as we have seen,
to manage such a highly developed
road system. Particularly maintaining
the quality and standard of the road
surface is problematic. Paul Lichtenwald
acknowledges: “There is a huge need for
expansion and better maintenance. Even
disregarding possible future negative
effects of the economic downturn, there
simply isn’t enough investment. The road
surface is getting worse and we are trying
to counteract this problem.”
At the same time, regulations and demands
are getting more and more stringent,
in terms of environmental concerns for
instance, where the goal posts of what are
acceptable levels of noise or air pollution are
constantly changing. This makes planning
more and more difficult and lengthy,
sometimes taking up to 30 years! And who
knows what can happen in 30 years? One
thing is for sure, we are driving more and
more cars and are going more and more
places, so we need decent roads to drive on.
But who will pay for it all in the long run?

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Based on the efficient running of the
country’s motorways, ASFINAG Interna-
tional are showing the rest of Europe
what Austria has to offer.
ASFINAG International is the consulting arm
of the ASFINAG Group, the Federally-owned
company that manages the entire Austrian
Trade & Investment | www.trade-investment.eu
ASFINAG International GmbH
For Whom The Road Tolls
motorway and expressway network (all
2178 kilometres of it). As such, it is an
international gateway, providing access
to the expertise and know-how of the
Group for European clients.
A Recent History
ASFINAG was originally founded in 1982
as a sole financing company for new
motorway construction projects, but in
1997 the company won the concession
to operate all motorways within Austria.
ASFINAG does not own the motorways but
it does have rights of usufruct or, in other
words, the right to use the ‘fruits’ of the
motorway, i.e. collect tolls. This is essential
as the Group receives no subsidy from its
Government owners and must therefore
be completely self-financing.
Following the concession, the various
existing companies involved in the different
aspects of motorway management –
planning, construction, operations,
maintenance, traffic information, rest areas
and (of course) tolls – were restructured
and brought together as the ASFINAG
Group. The corporate goal is to be one
of the leading motorway operators in
Europe by 2015.
46 January~February 2011
Trade & Investment | www.trade-investment.eu 47 January~February 2011

Knowledge Brokers
In operation since 2005 and with a total
staffing complement of just five (including
the MD) ASFINAG International is small but,
one might say, perfectly formed. After all,
their function is not to actually deliver the
consultancy services themselves but to act
as brokers between clients and a pool of
over 100 experts within the wider ASFINAG
Group. The expertise on offer covers tolling,
traffic and tunnel management, safety,
environmental impacts, and engineering
& construction. In the performance of
their role, the International team tender
for projects, interface with the client, and
provide the project management.
The primary strategy is to focus on Public
Private Partnership projects (PPPs) in
other EU member states. The first such
project completed was the M6 Tolna
motorway in Hungary, a joint venture with
– among others – Austrian construction
company, the PORR Group. The 65km
stretch of motorway, near Budapest is now
operated by ASFINAG and its partners.
Throughout 2009, a representative from
the Group oversaw the establishment of
Trade & Investment | www.trade-investment.eu
ASFINAG International GmbH
For Whom The Road Tolls
operational structures and equipment
acquisition, ensuring the successful
opening of the M6 earlier this year. 2009
also saw the commencement of three
more international motorway projects:
one in Eastern Hungary and two in the
Bavaria and Thuringia areas of Germany.
Despite the impact of a global economic
downturn, ASFINAG’s European profile
appears to be on the up. As Managing
Director, Dr. Hubert Resch states, “We are
at the start of a process.”
Global Recession
In the light of recent economic trends in
Europe and the wider world, it could be said
that 2008 was not the most auspicious year
in which to start a new venture. It is also
fair to say that the ASFINAG Group – like
everyone else involved in the transport
and construction sectors – has felt the
impact of the recession. Toll revenue in
the 2009/10 accounting period was down
€140million compared to the previous year
and although a full recovery is predicted
and expected, it is unlikely to be swift.
As well as a structural reorganisation
in 2008 and a reiteration of the core
corporate values in 2009 (service, reliability,
responsibility, teamwork, and mutual
respect) it is fair to say that widening the
scope of activity beyond the Austria border
is a key part of the recession-busting
strategy. However, market conditions
are tough. On the one hand, the current
climate means that there are fewer PPPs
on the horizon and therefore fewer
opportunities for international work.
On the other, with widespread pressure
on public finances, more countries are
looking at the possibilities of outsourcing
motorway operations and the use of tolls;
both areas of special expertise accessible
to ASFINAG International.
Tolls
In Austria, the tolls are split into two
categories: vehicles over 3.5 tonnes are
subject to a distance-related toll, collected
electronically via an onboard GO-Box; and
those under 3.5 tonnes pay a time-related
toll by purchasing and displaying a toll
sticker. This dual system is designed to
48 January~February 2011
meet the different needs of commercial
and individual customers. The tolls taken
amount to approximately 90% of the
Group’s income; which is then reinvested
in the construction, financing and
maintenance of the motorway network.
A current toll-based project is taking place
in Poland. ASFINAG International has
brokered in experts to advise a consortium
bidding for a contract similar to that won by
the Group in 1997 in Austria. A potentially
huge project involving thousands of
kilometres of road, ASFINAG is providing
experience of electronic tolling and multi-
lane freeflow systems in an effort to offer
something new to the Polish network.
Construction is timetabled for 2011 so a
decision is expected shortly. Similar project
bids are awaiting final decisions next year
in Denmark, Greece and France,.
Trade & Investment | www.trade-investment.eu
Future Strategy
The future holds two main priorities for
ASFINAG International. Firstly, there is the
interoperability of tolling systems: working
towards a European Electronic Toll Service
(EETS) in which the systems of different
European countries can interact to be
the ease and benefit of the road user. The
analogy used by Dr Resch is that of roaming
for mobile phones. For example, a driver
could pay a toll in Germany which would
be valid for the balance of the journey in
neighbouring Austria. Initial development
and testing has begun between the two
countries with general availability planned
for mid-2011.
The second focus is on establishing a
clientèle among European financial
institutions that are looking to invest in
motorway projects. There is a huge demand
for improved transport infrastructures,
particularly in Eastern Europe but it all
depends on adequate financing. As a
state-owned company with its origins in
finance, the ASFINAG Group is in a position
to offer experienced and neutral advice to
such bodies, untainted by local interest.
To return to the overall Group aim of
becoming one of the leading European
operators by 2015, ASFINAG International
although young in years is already playing
its part in the greater success. The final
words belong to Dr. Resch:
“We are a small but flexible expert regarding
all road management services and are
successful in international competition.”
Dave Foxall
49 January~February 2011

The last few years of EU legislation have
seen great changes for energy compa-
nies. RWE Rhein-Ruhr Verteilnetz prove
that it is possible to stay ahead of the
game.
RWE Rhein-Ruhr Verteilnetz, an energy
grid management company, has its HQ
in Wesel, in the North Rhine-Westphalia
region of Germany. Possibly a small town for
a large company, but Wesel is a traditional
site for the RWE Group, which started in
this part of Germany over a century ago.
While the RWE Group – one of the major
European utilities companies – covers most
of Europe, from Germany, Austria, UK, and
the Netherlands, to Poland, Czech Republic,
Slovakia, and Hungary, RWE Rhein-Ruhr
Verteilnetz offers similar‚blanket‘ coverage
within its own marketplace of Western
Trade & Investment | www.trade-investment.eu
RWE Rhein-Ruhr Verteilnetz GmbH
Successful Partnerships
Germany with about 100.000 km of grid
and a turnover of €2billion per year.
Good Planning...
The very existence of RWE Rhein-Ruhr
Verteilnetz is tied up in the energy
legislation that came into force in
Germany in 2005 (and that has – due
to an EU-directive – subsequently been
adopted by all EU member states) under
which the different parts of an energy
supply chain must be managed and run
by separate legal entities. Prior to this
legislation it was common for a single
energy company to run the power station,
build and own the distribution grid and
act as direct supplier to the consumer.
The new legislation required that such
arrangements be ‚unbundled‘ in order
to ensure a reduction of monopoly by
the energy companies and an increase
in choice for the end users.
RWE Rhein-Ruhr Ver teilnetz was
established in 2003, two years before the
compulsory unbundling. Michael Schmidt,
the Managing Director says, “We aimed to
be prepared and in those two years we
could make any mistakes Regulator-free.”
The division of a previously harmonious
whole into separate corporate structures
inevitably requires new interfaces and
communications arrangements and
also complete agreement on division of
responsibilities. Responsibilities which
people may have had for years and are
often unwilling to relinquish. Take away
the single, cohesive hierarchy and the new
watchwords must be co-operation and
50 January~February 2011
partnership. With forward planning, RWE
Rhein-Ruhr Verteilnetz was able to work
through this potentially difficult ‚storming‘
phase without the added external pressure
of official supervision.
...Creates Success
The first step in 2003 was to become a
functional corporate entity. Having created
a separate legal identity within the RWE
Group, RWE Rhein-Ruhr Verteilnetz went
from strength to strength. Connected
to the grid that they manage are power
stations and energy suppliers at one
end of the chain while at the other are
2.9 millions domestic households, and
15,000 municipal, and industrial customers,
from bakeries to chemical plants.
Trade & Investment | www.trade-investment.eu
The legislation dictates non-discriminatory
access, in other words there can be no
preferential treatment for other parts
of the parent company involved in the
energy supply chain. It is an indicator of
RWE Rhein-Ruhr Verteilnetz‘s efficiency
and observance of the legislation that
they have 270 suppliers using their grid
– a large number even for a grid that size
(97.000 km for electricity and 7.000 km
for gas).
Perhaps the key measure of success is that
based on the company‘s expertise in grid
management under the new legislation,
other grid companies have commissioned
RWE Rhein-Ruhr Verteilnetz to manage
their grids for them. There are currently
15 such partnership arrangements. Initial
contracts were for a year, then three, and
the service has now been provided for
seven years with agreements for the next
five. One might say that the preparation
has paid off.
Intelligent
Communication
Technology
In addition to becoming a sector leader
in unbundling structures and processes,
RWE have moved ahead in developing
smart technologies for grid management.
In Germany there has been a big increase in
interest in using renewable energy sources
such as wind and solar; not least because
of a system of subsidies to encourage their
use. In order to effectively use such sources
51 January~February 2011

of power, smart technology is vital. Unlike
a coal or nuclear (or biomass) power plant
whose output can be controlled, wind
and solar output depends on the weather
which is notoriously fickle. As Michael
Schmidt says, “You might have a sunny
day in May when the wind is blowing, but
the customer wants to switch on their
heating in November when the weather
is cold and not so sunny.” Intelligent
Communication Technology can be used
to manage the imbalance in timing and
quantity between supply and demand
across the network.
That said, even during the winter of 2009/10
which was prolonged and extreme across
most of Europe, there was no problem in
managing supply, even without having
yet fully realised the benefits of the smart
technology. Put simply, both the German
grids and the RWE Rhein-Ruhr Verteilnetz
processes are high quality. In terms of
meeting demand, Germany is currently the
RWE Rhein-Ruhr Verteilnetz GmbH
Successful Partnerships
best in Europe with an average of about
just 20 minutes of power cut per customer
per year. RWE Rhein-Ruhr Verteilnetz is a
little better than most in Germany despite
the large size of the grid.
Health & Safety
Of course, none of this success is possible
without the people who work there and
RWE Rhein-Ruhr Verteilnetz prefers to
do a little more for its 200 people than
simply pay them a salary. The RWE-
Group partnership approach extends to
its own people. The company operates
a programme of ‚work-life‘ initiatives,
encouraging sports, healthier lifestyles
and other activities that might have a
beneficial effect on health and safety at
work. For example, the company pays for
staff to attend safe driving courses. This
might make their commute safer but
also their driving in general, creating a
wider social benefit as well as that to the
individual and their employer.
Most company meetings begin with a
‚security tip‘ after the usual welcomes
and introductions. Maybe something as
straightforward as, ‚Do not use the phone
when driving.‘ or‚Use a ladder to reach high
shelves, not a chair.‘ These common sense,
serious messages are delivered in a gentle,
light-hearted way, often accompanied by
an amusing cartoon.
The philosophy in RWE Rhein-Ruhr
Verteilnetz is one of culture change, hearts
and minds, and not big thick books of rules.
The way Michael Schmidt sees it, simply
giving orders can be resented, whereas a
helpful suggestion can be appreciated. It
is about the method as much as it is the
message.
Dave Foxall

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Siemens Mobility Switzerland:
Connecting Planes, Trains and Automobiles’560
With a network stretching to nearly 5’600km,
Switzerland boasts the densest railway
network on the European continent. Thanks
to this extensive coverage, the average
Swiss uses the train twice as often as many
other Europeans. The “Mobility” division of
Siemens Switzerland provides technology
solutions to connect different transportation
systems – notably the road and train
networks – to carry people and cargo more
efficiently. Under the umbrella heading of
“Complete Mobility”the company is striving
to unite core competencies in signalling
and control management for rail, road,
air traffic and postal automation. Silke
Humphrys spoke to the managing director
of the division, Gerhard Greiter.
The Swiss branch of Siemens Mobility
operates as a regional HQ for rail
automation business covering Poland,
Hungary, Denmark and Spain, in addition
to the Swiss home market. 750 staff are
employed there, with 100 out of those
dedicated to the development of new
products for the global marketplace.
The key sectors serviced by the company
are Postal Automation, Complete
Transportation, Airport Logistics and
Rail Automation. The company achieved
Trade & Investment | www.trade-investment.eu
a turnover of CHF 380m in the financial
year to October 2010, with 5-7% being
re-invested for research & development.
Let us take a closer look at the two main
strands of the business: Rail Automation
and Complete Transportation.
Rail Automation
This area is by far the most significant
for Siemens Mobility Switzerland, and it
dedicates 500 staff to this sector in which
it holds a market leading position. The
company provides complete solutions
in railway system management including
signal box and light signal technology, as
well as process control and safety systems.
SBB, the Swiss national rail operator, is
one of the main customers, along with
projects in Hungary, Malaysia and Spain.
Managing Director Gerhard Greiter explains:
“Rail traffic is heavy in Switzerland, with at
least one train per hour on most lines – on
the busier sections we’re looking at a train
per minute during peak times. It is therefore
absolutely crucial that everything works
together perfectly, as otherwise one small
failure could create a domino effect and
cause disruption across large parts of the
network. Our “Iltis” defect management
system ensures that this cannot happen; it is a
unique system allowing the computer-driven
management of the entire Swiss network
from just six locations across the country.”
Electronic Ticketing
Siemens is currently working on an
electronic ticketing solution covering all
public transport systems in Switzerland.
The aim is to introduce a credit card style
payment method, which will automatically
debit the customer and allow him to use
any train, bus or tram across the country
with a single card. Mr Greiter comments:
“This is the quantum leap in e-mobility
– to connect different operators under
a single system, and so vastly improving
the customer experience.
Gotthard Rail Tunnel
A new railway tunnel crossing the Alps
is currently under construction. The new
tunnel is scheduled to be completed in
54 January~February 2011
2017 and will be the longest of its kind in
the world at 57km. At a cost of at least CHF
12bn it will improve passenger services to
Italy, and help relieve the road network
of increasing HGV traffic by transferring a
large portion onto the railways. Siemens
Mobility Switzerland has been chosen to
provide the process control technology
for this prestigious project.

Complete
Transportation
This part of the organisation deals with
all aspects of road traffic technology
– from traffic light controls to process
control management in tunnels to parking
management – and employs 120 people.
The key goal is to introduce technologies
and systems that can help connect and
network the various modes of transport
available in the most efficient manner – for
example travelling to work by driving to
the nearest station, parking the car and
then catching a train. One area of particular
interest is guidance system for tunnels, as
accidents can be particularly dangerous
and can cause maximum disruption if not
managed carefully. Siemens Mobility takes
particular care of the security element,
with early warning systems in place that
prevent further traffic from entering a
tunnel in which an accident has occurred.
Centralised Processing
impact from the recent downturn; in
fact we have experienced growth. This
is partly because we introduced a lot of
automation three years ago, and partly
because most of our activity is in public
infrastructure, which has benefited from
public investment boosts. However, there
are some challenges ahead. Investment
in other countries is being scaled back,
and we are exposed to the Euro exchange
rate, which is not going in our favour at
the moment. To counter this, we have
been introducing measures to increase
efficiencies, which have worked for us so
far, and which will put us in a great position
when the Euro becomes stronger again.
Another challenge is finding the right
people – currently we have between 20
Another reason why Siemens has survived
the crisis so well is undoubtedly its
reputation for unparalleled quality and
reliability, and the ability to undertake
complex projects. In the mobility sector it
is by far the largest provider, which gives
customers a sense of security, an assurance
that it will be a future-proof partner in
the years ahead. “We are in a life cycle
service industry”, comments Mr Greiter, “in
which partnerships are forged for many
years. We work with our customers to
constantly improve and enhance solutions
to transportation problems, investing in
the future for generations to come; and we
take pride in our reputation for keeping
our promises.”

Centres and 30 vacancies for qualified personnel.” Silke Humphrys

Putting infrastructures on such a large

scale in place and maintaining them on an
ongoing basis is costly and time-consuming.
Not every customer requires its own bespoke
infrastructure, and Siemens is offering those
customers the possibility of buying into
a shared service centre, which manages
the entire process from a central location,
enabling operators and local authorities to
share resources and lower their expenditure
by outsourcing the entire management of
their transportation infrastructure.

Future-Proof Partner
Siemens as a whole, and Siemens Mobility
in particular, have sailed through the
recent economic crisis unscathed. Mr
Greiter explains: “We have felt no negative

Trade & Investment | www.trade-investment.eu 55 January~February 2011


Dalkia Polska is the largest private pro-
vider of district heating in Poland with
operations in 40 cities, but it is more than
that; it is a company run according to
the rules of CSR. Dalkia runs a number of
initiatives in education, employment and
sport to actively support the local gover-
nments and population. Diane Mannion
talks to the Sales and Marketing Director,
Mr Brice Mellies, to find out more.
Trade & Investment | www.trade-investment.eu
Dalkia Polska S.A.
Initiatives in Energy sector
As the largest heating provider in Poland,
Dalkia employs 5000 people. It had a
turnover of 1.9 Zloty in 2009, which is
almost €500 million. This turnover shows
an upward trend, as Mr Mellies, the Sales
and Marketing Director explains:
‘There has been a large increase in
turnover from 2008 to 2009, because in
2008 Dalkia acquired Praterm through
public tender on the Warsaaw Stock
56 January~February 2011
Exchange. 2009 was the first year to
show the impact of this acquisition so the
turnover increased accordingly. Usually
we have 4 to 5% of organic growth a year
thanks to the dynamic development
of Polish cities and our district heating
networks.’
Praterm (now Dalkia term) used to be
a Polish heating company operating in
medium sized cities, and Dalkia acquired
Trade & Investment | www.trade-investment.eu
100% of its shares, which has extended
Dalkia’s customer base to the whole
territory of Poland.
Dalkia Polska produces, distributes and
deals in heat and electricity from coal
and biomass. This process, when the
electricity is a fatal product of heat
production, is called cogeneration. The
heat produced is distributed as hot water
through the district heating network to
households and industrial plants, and
the electricity is sold to the national
power network.
Company Structure
T Veolia Environment, a leading
environmental services company, and
EDF are Dalkia’s two main shareholders.
57 January~February 2011

EDF is one of the main players in the
cogeneration sector in Poland,
Veolia Environment has four divisions,
which are: Veolia Water, Veolia Services
(dealing in waste management and waste
to energy facilities), Veolia Energy and
Veolia Transport. The Energy division of
Veolia is actually run by Dalkia.
Dalkia Polska has a division called Dalkia
Energy and Technical Services, which deals
with the facilities management area of the
business. It was previously called ‘Dalkia
Facilities Management’ but the name was
changed. Mr Mellies explains why:
‘Dalkia’s strategy is to be in energy
management for clients, managing
energy and electricity consumption, and
outsourcing the non-core business. We
changed the business name to be more
visible in the energy market, and so that
we wouldn’t be compared to facilities
management companies who manage
such functions as cleaning and reception.
Dalkia is more concerned with the technical
and energy business.’
Trade & Investment | www.trade-investment.eu
Dalkia Polska S.A.
Initiatives in Energy sector
Initiatives
Dalkia’s strategy, related to the strategy of
the whole Veolia Environnment Group, is
strongly based on the ideas of sustainable
development. Dalkia cares for the cities
where its business is run and for the people
inside and outside the company. Dalkia
is involved in many initiatives, such as
employment, educational and sporting.
Mr Mellies explains that this ethos applies
throughout Dalkia, and in Poland the
company aims to be close to the people
and be a general partner with the City.
When it comes to its development, that
cannot happen without culture, education
and employment perspectives.
Dalkia Talent Academy (ATD) began
after the 2008 Beijing Olympics when
an IT Manager for Dalkia, who is a young
sucessful sportsman involved in epee
fencing, was supported by the company.
Dalkia helped with his training for the
Olympic Games, and he went on to win
a silver medal. Observing how hard it is
for young sportsmen and women to find
sponsors, be recognized by the media and
decide about their carrier, Dalkia decided
to create a one year programme aiming to
show young champions what the business
world looks like, how sports marketing is
developing and how to care about their
image and not only aboutsports results.
Thanks to the Talent Academy workshops
young champions have more elements to
help them decide about their professional
and sports life. Some of them could find
employment within Dalkia as their values
of courage, performance and excellence
are close to the Dalkia values. Mr Mellies
comments:
‘We focus mainly on education. Sometimes
it is difficult for sportsmen and women to
attend University so we run a dedicated
course that covers business subjects such
as marketing or psychology. That’s why
this programme is sustainable – we do
not just give out money – we educate
and create value for young people and
for our company’
Every year new young champions will
join the Academy. Some of them may
58 January~February 2011
participate in the London Olympic Games
in 2014.
Another initiative by Dalkia is the Dalkia
Foundation, which helps unemployed
people to find jobs or create their own
business and was set up in 2005. More
than 350 individuals have attended
the Foundation and 60% of them have
been able to find a job afterwards or to
create their own company. Some of these
positions are within the energy sector, but
some are in other industrial and commercial
sectors as well. The Foundation is open
to all people in the regions where Dalkia
operates.

Renewables
The targets on renewable energy set by
Poland are for 15% utilisation by 2020, and
20% utilisation by 2030, but Dalkia expects
to exceed this target by converting some
of its energy source from coal to biomass.
Mr Mellies gives the reasons for this:
‘Two big projects have been announced
this year by Dalkia to convert the source
of heat from coal to biomass. This will
account for 67 megawatts of electricity.
Therefore, 18% of Dalkia’s electricity will
be from biomass. The projects will become
operational in 2012, so Dalkia will be in
advance of the Government target by 2020.’

Plans
In terms of Dalkia’s operational plans for
the future, Mr Mellies explains that there
are four focus areas:
1) To increase Dalkia’s position in district
heating management.
2) To increase the business in electricity
production.
3) To increase biomass consumption to
20% in 2012.
4) To increase energy efficiency through
operating contracts, and one of the
leading companies in this area is Dalkia
Energy and Technical Services.
Mr Mellies concludes by detailing the
ownership plans for Dalkia:
‘We plan to be really active in the
privatisation of the business and will
look for any opportunities that Poland
has to offer. The process slowed down in
the last month, but Dalkia expects more
opportunities in the coming year.’

Trade & Investment | www.trade-investment.eu 59 January~February 2011


In a cold climate, heat and power are
of crucial importance. With a century’s
experience of serving their market,
Kuopion Energia Oy understand their
customers’ needs.
At 104 years old, Kuopion Energia Oy must
be one of the more well-established power
and heating companies in Finland, or even
in Europe. Founded in 1906 as an electricity
provider, the expansion to include district
heating came in 1963. The citizens of
Kuopio and the surrounding area are the
primary customers and also – indirectly
Trade & Investment | www.trade-investment.eu
KUOPION ENERGIA OY
Local Efficiency
– have a share in the ownership of the
company as it is a municipal operation,
owned by the city itself. Electricity is also
sold to the Finnish national grid.
Electric Pioneers
Kuopio can be found in central Finland.
It has 90,000 inhabitants and it might be
fair to call their forebears ‘early adopters’
when it came to electricity. 1872 saw its
first use when electric streetlights were
installed. Initially, supply was reliant on
local production, either by industry or
the company’s own generators. In 1935,
Kuopio was connected to the national
grid which now not only covers any
shortfall when demand outstrips supply
but also purchases any excess power
generated.
Since the introduction in the early 60s,
district heating (the distribution of heat
via a network of insulated pipes using hot
water as a medium) has become the city’s
favoured heating utility. It’s efficiency and
effectiveness as a heating method in the
60 January~February 2011
Trade & Investment | www.trade-investment.eu 61 January~February 2011

Finnish climate means that in 2010, 90%
of the population use district heating
supplied by Kuopion Energia Oy.
Initially, the heat was provided by water
boilers – a single unit to begin with, rising
to three within the first decade of operation
– but the from the beginning, the plan was
to build their own power plant in order
to create an independence of supply and
in 1972, the power plant was completed;
the first such facility in Finland to use
peat as its main energy source. Based on
a Combined Heat and Power technology
(CHP), the power plant utilises the heat that
is a by-product of electricity production
for the district heating network.
Eco-Friendly Power
There is some debate about peat and
how ‘green’ a fuel it is. Some classify it as
Trade & Investment | www.trade-investment.eu
KUOPION ENERGIA OY
Local Efficiency
a biofuel and even see it as renewable
(although the timescales involved are
millennia rather than decades). Others
view it as a fossil fuel with all the associated
climate change and emissions concerns.
Either way, the fact is that a third of
Finland’s landmass (i.e. approximately 10
million hectares) is marshland and bogs
and a source of peat. At this time only
1% of this available natural resource is
used in energy production nationwide
– longevity of supply is not a current
issue. In addition, according to recent
evaluations, the effect of carbon dioxide
released during the burning of peat is
somewhat neutral.
Kuopion Energia Oy’s website is clear on
the company’s environmental position
when it states, “Environmentally friendly
production of electricity and heat, efficient
distribution and competitive services are
the main strengths of Kuopio Energy.”
As if to underline the green credentials,
customers also have the option of an
electricity supply derived entirely from
wind energy.
New Investment
Environmental issues are also at the
heart of Kuopion Energia Oy’s plans for
the future. Despite the ongoing global
economic downturn, the company has
felt less impact than others in Finland.
Regardless of recession, people still need
to heat their premises and so the district
heating business has suffered hardly at all.
On the electricity side, the city of Kuopio
does not host much in the way of heavy
industry (which tends to be harder hit
by the drop in the economy) and so has
not seen a spate of cutbacks and closures
leading to a reduction in its customers. As
62 January~February 2011
 a result, the drop in the Kuopio economy
has only been a seventh of that of the
rest of Finland.
So with investment in mind, the company
is working towards replacing its original
1972 power plant within the next 18
months. The new design will stick with the
tried and tested CHP technology but will
see an increase in the amount of biofuel
used. Currently the plant burns mainly
peat with some oil and a small amount
of wood; the objective is to increase the
proportion of wood to a third.
Further improvements are aimed squarely
at improving services to the customer
with the introduction of automatic
meter-reading technology, initially for
the electricity supply but then also for
the district heating provision. Efficiencies
such as this all help to keep the costs
down for the user and while Kuopio is no
different to the rest of the world in that
the people always want cheaper energy,
regular customer surveys do provide
good feedback. Managing Director, Esa
Lindholm says, “I dare to say that we have
quite reasonable prices here in Kuopio
– we are below the average, in the 10
cheapest providers in Finland.” This is
quite something, considering that some
say that Finland has the lowest energy
prices in Europe.
The Finnish Approach
When asked what might account for
Kuopion Energia Oy’s success, Esa Lindholm
points to the CHP technology. Of course,
the combined heat and power setup is
used in many other countries, but the
Finnish company believe that they make
maximum use of the efficiencies that it
offers. An example would be the recent
extreme and prolonged winter experienced
by much of Europe. In Kuopio, demand
on the district heating network rose by
20% during last December, January and
February. The creation of that additional
heat using CHP necessarily generated
the corresponding additional electricity.
However, the demand for electricity did
not increase and so the company had
a surplus which they were then able to
sell to the national grid. Add to this the
fact that electricity commands a higher
price during the winter months and the
efficiency of the CHP system of production
becomes clear.
Esa Lindholm sees the current state
of the energy sector as requiring big
investments for long-term repayments
and with constantly evolving ‘rules’ there is
often an air of uncertainty that can make
decision-making difficult (for example, the
new power plant is a €135 million project
and yet what international agreements
regarding the environment may be in
force in 18 months’ time, who can predict?)
However, at the end of the day, Kuopion
Energia Oy is committed to providing
efficient, well-priced electricity and heat
and is building the future now.
Dave Foxall

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Tampereen Automaatiosähkö Oy
www.tas-automation.fi

Trade & Investment | www.trade-investment.eu 63 January~February 2011


Enemona is a private publicly traded
Bulgarian company with 20 years of cor-
porate history. Its main business activity
is to develop, finance and implement
projects in the fields of conventional
power engineering, industry, energy ef-
ficiency and renewable energy sources.
Enemona Group of companies manages
and implements responsible projects
on a large scale. Most of them are on
the territory of Kozloduy Nuclear Power
Plant (NPP), energy complex Maritsa
Iztok, Aurubis (Cumerio Med) in the town
of Pirdop, Holcim (Cement) Bulgaria AD,
TITAN Zlatna Panega Cement AD, and lots
of other large-scale industrial projects all
over the country. In 2009, the company
started to look seriously at the EU market
and in 2010, the largest contract in the
history of Enemona was signed in the EU –
Trade & Investment | www.trade-investment.eu
ENEMONA
An Environmental Future
with Slovenske Elektrarne, a.s. – Mochovce will be performed by Enemona Group
Nuclear Power Plant. of companies in the months ahead. The
public reveal of the indicator’s value gives
After the successful launch of the company’s
evidence to our investors and partners that
common shares at the beginning of 2008,
we carry out our activities transparently. As
today three types of equity securities,
of June 30, 2010 Enemona’s Construction
issued by Enemona, are traded on the
Backlog Indicator – CBI on a consolidated
Bulgarian Stock Exchange – warrants,
basis is BGN 212 million, a 54.74% increase
common and preferred shares. By the
compared to that of March 31, 2010,
Warrants project, the company became the
pioneer to issue a derivative instrument on when the value of the indicator was BGN
the BSE-Sofia. Due to the low liquidity on 137 million.
the BSE-Sofia as a whole, the management
of the company has taken the decision
to list its securities on the Warsaw Stock Engineering,
Exchange, Poland.
Enemona is the first publicly traded
Construction and
company in Bulgaria, which regularly Assembly Works
provides information about its Construction
Backlog Indicator – CBI on a consolidated Since its establishment, Enemona operates
basis. The indicator reflects the amount most actively in the fields of Engineering,
of construction and assembly work that Construction and Assembly Works. They
64 January~February 2011
are an essential part of the company’s
structure. Our Engineering, Construction
and Assembly Works line of activities
includes the Construction Works Unit,
Assembly Unit, Engineering Department,
Enemona – Branch Office Sofia, as well as
the companies Enemona Galabovo JSC
and EMCO – Belene JSC. All these units
of Enemona Group of companies carry
out the construction and assembly works
on numerous industrial sites all over the
country.
Enemona has successfully carried out
over 300 contracts and projects on the
territory of Kozloduy NPP. The company
has accomplished over 70% of the activities
for the reconstruction and modernization
of Power Units from 1 to 6 of the nuclear
power plant. The rest of the contracts
with Kozloduy NPP are mainly related to
electrical assembly works, modernization
Trade & Investment | www.trade-investment.eu
of instrumentation and control (I&C),
automatic systems for control and
functional testing, reconstruction and
modernization of radiation safety control
systems, etc.
One of the group’s projects of great social
importance on the territory of Kozloduy
NPP is the construction of an on-site
Facility for Processing Radioactive Waste,
as well as the repository to it. Among
the other significant energy contracts
on the territory of Kozloduy NPP are
modernization of the Safety Management
Systems of Power Units 5 and 6, assembly
of Filtered Vent Systems, Pump Stations,
assembly works including reconstruction
on Machinery and Technological Parts, etc.
In the field of nuclear power engineering
the company collaborates with leading
international companies such as such as
Westinghouse, Siemens, AREVA Group,
Atomenergoexport and others.
International Nuclear
Project
Following an international tender, at the
end of April, 2010, Enemona signed a
contract with the second largest utility
company in Central and Eastern Europe
- Slovenske Elektrarne, a.s. Since 2006 the
Slovak company has been a part of the
Italian group ENEL S.p.A . The subject of
the contract is Electrical and I&C erection of
Units 3 and 4 of Mochovce Nuclear Power
Plant in the Slovak Republic. According
to the preliminary schedule there the
staff of Enemona on-site will be over
250 employees during peak times.
65 January~February 2011

A Leader In The Field
Of Conventional Power
Engineering
Enemona Group of Companies has
established itself as a leader on the territory
of the energy complex Maritsa Iztok for the
past seven years. The company is a desired
Trade & Investment | www.trade-investment.eu
ENEMONA
An Environmental Future
and reliable partner and subcontractor for
the on-going rehabilitation, reconstruction,
and modernization of certain equipment
at the Thermal Power Plant (TPP) Maritsa
Iztok 2 and Enel Maritsa Iztok 3.
A major and complex project that brings
environmental benefits is the Flue-gas
Desulfurization Plant for Power Units from
1 to 4 of the TPP Maritsa Iztok 2. The Plant
is of great production and environmental
significance. After being put in operation
the sulphur-cleaning installation will
attain effectiveness of over 94% in order
to comply with the European requirements
for Clean Environment.
Enemona took a significant part in the
construction of the electrical part of two
power units with 2x300 MW output in TPP
AES – 3C Maritsa Iztok 1 as a partner and
subcontractor of Аlstom Power Generation
AG. The overall activities on the erection
of new power units include construction
and assembly works in terms of electrical
equipment and I&C, as well as start-up
and commissioning works.
In its work on the territory of energy
complex Maritza Iztok the Group of
Companies works in close cooperation
with foreign contractors such as ЕNEL
S.p.A., AES, ALSTOM Power Generation
AG, Mitsui Power Projects LLC, etc.
Enemona Group carries out electrical
and installation activities on large-scale
industrial and power engineering projects
in Bulgaria. The company works on the
construction, reconstruction, repairs
and replacement of equipment in the
electricity distribution companies all
over the country. Hunderds of contracts
have been completed on the territory
of Kozloduy NPP, companies within the
National Electrical Company, and many
other power engineering and industrial
sites. The Group has implemented all
the activities on these sites on a turnkey.
Enemona is the main contractor of over
25 projects in the Open Switchgear Yard
on 110 kV, 220 kV and 400 kV in Kozloduy
NPP. The area of the Open Switchgear Yard
in the nuclear power plant is 500 dca and
is the largest one on the Balkan Peninsula.
So far the Company has carried out
installation and civil construction works
in Open Switchgear Yard 110 kV in Prista
Electric Substation nearby Rousse,
Open Switchgear Yard 220 kV in Stolnik
Electric Substation nearby Sofia, Open
Switchgear Yard 110 kV in Sofia South
Electric Substation, Open Switchgear
Yard 110 kV and 220 kV in Boychinovtsi
Electric Substation.
Energy Efficiency
Projects
Enemona is a leading company in the field
of Energy Efficiency Projects, carried out in
66 January~February 2011
public and private buildings, industrial and
power generation facilities. The company
provides and implements a comprehensive
package of energy efficiency measures
in public and private buildings as well as
energy efficiency activities in industry.
These activities are targeted at reducing
the energy losses in the power and heat
supply infrastructure as well as at increasing
the efficiency ratio of power generating
equipment.
Enemona is among the pioneers in Bulgaria
that has successfully accomplished an
ESCO contract - a contract that guarantees
a certain amount of energy savings after
the implementation of a package of energy
efficiency measures in buildings that are
municipal or state property.
For the past six years, we have signed
and successfully accomplished ESCO
contracts that exceed BGN 40 million. The
total amount of energy saving contracts
we have fulfilled is equal to over BGN
70 million. The Energy Efficiency Division
of the company independently organizes
the execution of the signed contracts.
In 2009 alone we signed contracts for
implementing energy efficiency measures
for a total amount of BGN 15 million.
Almost all of the contracts signed last
year, worth more than BGN 14 million,
were carried out by the ESCO model. From
them, the annual revenues amounted
to over BGN 8.5 million and the income
reached BGN 2.6 million.
Pioneer In The
Construction Of
Biomass Power Plants
In 2006 Enemona was the main contractor
of the construction of a heating plant
fuelled by biomass in the town of Bansko.
The project was accomplished jointly by
Bansko Municipality and an investor. The
heating plant, with a capacity of 5MW, is
fueled by wooden biomass. It supplies
heat and hot water to the municipality
building, the Community Center, the
museum, two schools, two kindergartens
and the telephone factory in the town. The
implementation of the project included
the installation of heating boiler and its
necessary facilities, the main construction
and assembly works, as well as expansion
of the existing heating distribution network
in Bansko.
CHPP Nikopol JSC was established as a
project company for developing Enemona’s
activities in the field of renewable energy
sources. According to the conceptual
Trade & Investment | www.trade-investment.eu
technical characteristics, the Central
Heating Power Plant will have a total
installed heating capacity of 50 MWth,
electrical capacity of 16.5 MWel, generating
an annual gross electricity production of
142.9 GWh. The technology allows 80% of
the fuel to be waste agricultural biomass
(straw) and an option for the remaining
20% to be other biological waste. The total
investment on the project is estimated at
about BGN 120 million.
The construction of CHPP Nikopol by
applying the most modern technologies
could turn the power plant into a standard
for constructing such power plants using
Renewable Energy Sources in Bulgaria.
Among the Project’s advantages are
supporting the energy system of Bulgaria
by offering a fuel, which guarantees
uninterrupted supplies; energy, which is
not influenced by sudden changes in the
prices of the alternative energy resources;
decrease in the unemployment rate in
the region; increase in the competitive
power of the local agricultural producers;
and efficient utilization of the agricultural
products.
Centre For
Professional Education
The Training Centre of Enemona is licensed
by the National Agency for Vocational
Education and Training to conduct training
of 20 strands of professions including
Architecture and Construction, Electrical
and Energy, Electronics and Automation,
Metalworking and Engineering. The centre’s
activity is dedicated only to our employees.
The continuous training, education and
qualification of the personnel are very
important for the development of our
company. Since the establishment of
the Training Centre in 2006 more than
1,000 employees of Enemona have gone
through different training programmes.
As a result the personnel’s competences
are increased and perfected.
Economic Challenges
At the end of 2009, aiming at optimizing its
activities and concentrating on the main
fields of interest of Enemona, the Board
of Directors took steps for the company’s
restructuring. The management of the
company focused mainly on efficiency
and markets outside Bulgaria – mainly the
EU. Despite the global financial crisis and
the fragile economic landscape, in 2009
Enemona managed to achieve an increase
in its revenues on a consolidated basis of
26.58% in comparison to 2008. The total
revenues of the company in 2009 amount
to EUR 97.329 million compared to EUR
76.890 million in 2008.
The consolidated net profit as of the end
of 2009 amounted to EUR 7.784 million
compared to EUR 6.760 million in the
previous reporting period, which was an
increase of approximately 15.15%.
The management of Enemona constantly
analyses the difficult economic condition
on national, European and world level.
The 2009 results give us hope that we can
continue our sustainable development by
guaranteeing our investors and partners
the security of their investments.
67 January~February 2011

Founded in 1988 and still in private
hands today, D&S Fleisch is one of the
leading manufacturers of pork meat pro-
ducts in Europe, and the fourth largest
in Germany. Thanks to its strategic focus
on quality management and high-end
products, combined with measures of
cost and energy savings, the company
has weathered the economic crisis and
been able to achieve a turnover of
€600m in 2009. Silke Humphrys spoke
to Jürgen Focke about the secrets of the
company’s success.
Trade & Investment | www.trade-investment.eu
D&S Fleisch
Meat Matters
Competitive Edge
One of the key competitive advantages,
according to Managing Director Jürgen
Focke, is the fact that D&S operates
largely from a single site – in Essen,
northern Germany. “Thanks to the entire
production chain – from the arrival of
the animals right through to packaging
and logistics – taking place at a single
location, we are able to manage the
whole process very closely and keep the
costs down”, he explains. “In addition,
the majority of pigs we slaughter on
site come from within a 100km radius,
shortening the stress they are exposed
to during transport and thus creating a
higher quality end-product.”
D&S supplies large trade partners in
Germany with fresh meat products
that are tailor-made according to each
customer’s specific needs. A high-speed
logistics system ensures fast and seamless
processing of all orders, generally allowing
just 48 hours from the arrival of the animals
to delivery of the final product to the
customer.
Approximately 38% of the entire output
– which amounts to 3.5m pigs a year – is
destined for export. The main markets in
Europe include Italy, Sweden and Poland,
but the company also ships to Korea,
68 January~February 2011
Hong Kong and Russia. “We believe in
diversification, which is why we spread our
export web quite widely”, says Mr Focke.
“This way we are not too dependent on
one or two key markets – it’s simply a case
of not putting all our eggs in one basket,
helping to ensure we can sustain our
business even if we did lose customers
in a certain region.”
Quality Responsibility –
The Four Q’s
In order to ensure that internal procedures
are diligently adhered to and to provide
Trade & Investment | www.trade-investment.eu
the highest possible quality of product and
service to the customer, D&S have introduced
a unique system for quality control. The“Four
Q’s”, as it is also known, is a programme
allowing D&S to assure consistently excellent
quality in the areas of taste, processing, quality
control and customer service.
Q1: Quality of Taste
To ensure that the end-user receives a
consistently top quality meat product,
D&S selects only the best breeds from
renowned and well-established breeders
who adhere to strict standards of animal
rearing and feeding. Furthermore, short
transit times and stress-free slaughtering
by CO2 stunning ensures the animals
are relaxed throughout the process,
minimising the release of stress hormones
and resulting in a better-tasting meat.
Q2: Quality of Processing
Regular, meticulous checks on hygiene,
cleanliness and effective disinfection
through external laboratories ensure a
high level of sanitation is maintained at
all times. In 2001 the company invested
in a sirial refrigeration system, the first of
its kind used in Germany. It’s a thermal
system with cyclic foc cooling, which
69 January~February 2011

enables a more tender meat product and
limits bacteria growth through gentle
refrigeration.
Q3: Quality Control
D&S operates its own internal quality
control department, with external auditors
regularly verifying tests on salmonella
and other microbiological data. Constant
monitoring and checking of data in its
own laboratories ensure consistency
and reliability, and detailed tracking
means each product can be traced back
to its origin.
Q4: Quality of Service
Using the latest technologies available
allows D&S to deliver cuts, portions and
packaging that are highly tailored to each
customer’s individual needs. Thanks to
the company’s own logistics firm, which
is equipped with a telematic system
providing up-to-the minute information
on refrigeration conditions as well as
delivery status, D&S can offer just-in-time
delivery within a 48-hour period.
Mr Focke summarises the 4Qs programme:
“We are very proud of this system, which
symbolises our commitment to innovation
and reliability. By investing in state-of-
the-art technology we have created the
right conditions for growth and increasing
our capacity in the future, as well as
maintaining the standards and quality
our customers have come to appreciate
and depend upon.”
D&S Fleisch
Meat Matters
Looking Ahead
According to Mr Focke, the economic
crisis lies firmly behind D&S. “Although the
food industry hasn’t suffered as much as
many other sectors, there was a noticeable
decline in sales. We are also continually
battling against pricing dictated by the
wholesale trade, making every cent count.
Nonetheless, we have recently invested in
a new deep freeze system, as this enables
us to freeze on site if necessary, which
will give us a further competitive edge
in the long run.”
As a means of keeping costs down, D&S has
also looked at ways in which to cut down
energy expenditure. One such measure was
the installation in 2007 of a waterworks
plant, which enables a saving of 20% of
the total fresh water requirements.
So what does the future hold? D&S is
steaming ahead with further plans for
improvements, innovations and expansion.
Currently, there are plans for extending
the internal laboratory by purchasing new
diagnostic equipment, which will achieve
test results within 24 hours. Furthermore, the
company is awaiting approval for a capacity
extension, taking the annual number of
animals to be processed to 5 million in the
near future, meaning further investment
will be needed to extend slaughtering,
cooling and packaging facilities. Mr Focke
concludes: “We are aiming to continue to
offer our partners and customers the level
of quality and service they are accustomed
to - in Germany as well as European and
Asian markets. Our goal is to keep growing
and expanding – without compromising
on the quality that defines us.”
Silke Humphrys

Your partner for

• Meat classification
• Controls for beef labelling in the regulation of (EC) No 1760/2000
• Audits for the standards QS (Qualität und Sicherheit), GlobalGAP and Tesco Nurture
• Management systems (ISO/HACCP)
• Brand meat programms
• Controls for organic production in the regulation of (EC) No 834/2007 and (EC)
No 889/2008
• Supervision services and inspections for metals, minerals, coal & coke, steel and
agriculture products

Luxcontrol GmbH, Sternstraße 108, D-20357 Hamburg, Germany

Phone: +49(40) 37 86 71 0, Fax: +49(40) 37 86 71 99, www.luxcontrol.de
Accredited according to DIN EN ISO 45011 and 17025

Trade & Investment | www.trade-investment.eu 70 January~February 2011

Trade & Investment | www.trade-investment.eu 71 January~February 2011

NRL Works to Improve
Understanding of
Climate Change
The Naval Research Laboratory announced
Judith Lean is a co-author in new research
that will help scientists better understand
how the Sun’s radiation interacts with the
climate system.
According to a release, scientists have a
continuous, 32-year record of the Sun’s
energy output, which they call total
solar irradiance (TSI). This new research
improves the accuracy of this record. Solar
radiation is the primary energy input to
Earth’s climate, which scientific consensus
indicates has been warming since the
Industrial Revolution. Greg Kopp, from
the University of Colorado, Laboratory
for Atmospheric and Space Physics, is the
lead author of the study.
NRL’s Lean, who works in the Space Science
Division, specializes in the effects of the
sun on climate and space weather and in
modeling how the Sun’s energy output
varies on multiple time scales. She said,
“Scientists estimating Earth’s climate
sensitivities need accurate and stable solar
irradiance records to know exactly how
much warming to attribute to changes
in the Sun’s output, versus anthropogenic
or other natural forcings.”
Kopp, the lead author, said, “Improved
accuracies and stabilities in the long-
Technology news
term total solar irradiance record mean
improved estimates of the Sun’s influence
on Earth’s climate.”
The research, which is now available on
the Geophysical Research Letters Papers
in Press site, supports a lower TSI value
than scientists had previously accepted.
This new value has been reported by the
LASP-built Total Irradiance Monitor (TIM)
instrument on the NASA Solar Radiation
and Climate Experiment (SORCE) mission;
validation tests at a new calibration facility
at LASP support the lower TSI value.
“The calibration facility indicates that the
TIM is producing the most accurate total
solar irradiance results to date, providing
a baseline value that allows us to make
the entire 32-year record more accurate,”
Kopp said. “This baseline value will also
help ensure that we can maintain this
important climate data record for years
into the future, reducing the risks from a
potential gap in spacecraft measurements.”
“We are eager to see how this lower
irradiance value affects global climate
models, which use various parameters to
reproduce current climate: incoming solar
radiation is a decisive factor,” Lean said. “An
improved and extended solar data record
will make it easier for us to understand how
fluctuations in the sun’s energy output over
time affect temperatures, and how Earth’s
climate responds to radiative forcing.”
Lean’s model, which is now adjusted to the
new lower absolute TSI values, reproduces
with high fidelity the TSI variations that TIM
observes and indicates that solar irradiance
levels during the recent prolonged solar
minimum period were likely comparable
to levels in past solar minima. Using this
model, Lean estimates that solar variability
produces about 0.1oC global warming
during the 11-year solar cycle, but is not
the main cause of global warming in the
past three decades.

Evotec to Collaborate
With Takeda
Cambridge for
Multi-Target Hit
Identification
Evotec AG (Frankfurt:EVT) today announced
that it has entered into a collaboration with
Takeda Cambridge Limited, to identify
small molecule modulators against GPCR
and Protease targets involved in various
CNS and Metabolic diseases.
Evotec will apply its state-of-the-art
Screening Platform and proprietary GPCR
modeling software to identify and validate
novel modulators against various targets
selected by Takeda Cambridge.
Dr Mario Polywka, Chief Operating
Officer at Evotec stated: “We are proud
to be selected by Takeda Cambridge to
collaborate on this important project. We
have invested significantly in our world
leading, hit-identification platform and
this alliance further validates the strength
of this platform and Evotec’s ability to
bring value to its partner’s drug discovery
efforts. We look forward to working with
Takeda Cambridge.”
Dr Andrew Ayscough, Director of Chemistry
at Takeda Cambridge, commented: “We
are pleased to have this opportunity to
work with Evotec making use of their hit
identification platform.”
73 January~February 2011

Technology and
partnerships key to
meeting future energy
demand
The continued development of advanced
technologies for hydrocarbons and
renewable fuels and cooperation among
national oil companies and international
oil companies are essential to meet the
expected growth in global energy demand,
according to Sara Ortwein, president of
ExxonMobil Upstream Research Company,
speaking at the 2011 World Future Energy
Summit in Abu Dhabi today.
“Currently the world uses 15 billion BTUs
of energy every second,” said Ortwein.
“That’s the equivalent of 40 light bulbs
running continuously for every person
on earth - including the 1.2 billion people
who do not have access to electricity.”
Ortwein said balancing energy and
economic growth while addressing
environmental risk and safety is a key
challenge for the energy industry -- and
for society in general. This challenge can be
met with integrated technology solutions
that expand supply, increase efficiency
and mitigate emissions.
“Energy producers such as Abu Dhabi
face a parallel challenge -- with added
complexity,” Ortwein explained. “The
challenge here is to develop resources
in a way that maximizes value -- and also
satisfies the national vision for economic,
social and environmental progress for the
benefit of future generations of Emiratis.”
Ortwein said national oil companies (NOC)
and international oil companies (IOC)
partnerships are best positioned to meet
the energy challenges of the future - while
also helping develop world-class energy-
producing nations.
Trade & Investment | www.trade-investment.eu
Technology news
“The unique structure of NOC-IOC
partnerships also contributes to their
success. They are typically characterized by
mutual investment and strong integration,”
said Ortwein. “Both partners normally share
the risk and the reward, and this mutual
commitment fosters the trust vital to any
partnership.”
Controlled Freeze Zone that utilizes a
Several advanced technologies developed single-step, high-pressure cryogenic
by ExxonMobil are enabling the process to remove high carbon dioxide
development of previously untapped oil and hydrogen sulfide concentrations
and gas deposits. Ortwein pointed out that from natural gas streams without the
record well distances had been drilled using use of solvents.
extended reach drilling technology, and
Faced with the challenge of meeting the
that ExxonMobil’s Multi-Zone Stimulation
growing demand for energy around the
Technology (MZST) allows the company
world, Ortwein said, “It’s going to require
to rapidly and reliably stimulate multiple
strong NOC-IOC partnerships, trillions of
reservoir zones in a single operation to
dollars of new investment in people and
improve well economics.
in technology, and a long-range focus on
Speaking of the MZST process, Ortwein continuous innovation and safety. I am
said, “This award-winning breakthrough confident that working together we will
process was developed through a decade be able to meet this huge challenge - to
of steady investment in research and supply energy safely, reliably, affordably
development. It reflects ExxonMobil’s and in an environmentally responsible way.”
practice of making long-term commitments
to pursue game-changing technologies.”
She also said that ExxonMobil has built a
commercial demonstration plant to test
a new gas treating technology called
74 January~February 2011
 Groupon Inc., the Internet-coupon service
with more than 35 million users, may be
among those going public in 2011. The
I look at enterprise clients, I see they are Chicago-based company walked away from
poised to invest in growth on a global basis.” a $6 billion takeover bid from Google in
December and will decide this year whether
Buyers aim to capture the $3.4 trillion to sell shares in an IPO, a person close to
in information-technology spending
Technology takeovers projected by researcher Gartner Inc.
the situation said last month. Groupon
has also filed to raise as much as $950
are expected to pick for 2011, a 3.5 percent increase from
2010. Cisco Systems Inc. and Oracle
million from the sale of preferred shares.

up in 2011 Corp. are among IT providers driving the

convergence of services, software and
“The increase in global tech IPOs in 2010
bodes well for M&A in the industry” in
NEW YORK – Technology companies hardware as they compete to become 2011 and beyond, said Drew Guevara,
that fueled more than $100 billion in the most relevant to chief technology head of West Coast technology investment
acquisitions last year are likely to spend officers. More companies are moving banking for Morgan Stanley, which advised
more in 2011 in a race to harness surging to cloud computing, allowing them to Groupon together with Allen & Co. “Going
demand for cloud computing and security access information over the Internet from public both establishes a company’s market
services. external data centers. valuation and creates the potential to
achieve higher value downstream through
Intel Corp., Hewlett-Packard Co. and Sonsini’s firm worked on 62 technology a sale.”
IBM led purchases of more than 2,700 acquisitions valued at a total of $16 billion
companies and still spent only a fraction of in 2010, including the McAfee takeover – Speculation about who will be next has
the cash piles they accumulated during the the biggest deal in the industry last year. already boosted the stocks of the fastest-
recession. The dollar amount of announced From his vantage point in Silicon Valley, growing companies. F5 Networks Inc.,
tech deals gained 12 percent, lagging Sonsini predicts an increase in many types whose software helps companies manage
behind a 26 percent jump in worldwide of tech transactions this year. Internet traffic, more than doubled in 2010.
mergers, according to data compiled by Riverbed Technology Inc., a provider of
“Starting at the bottom of the enterprise equipment to boost networks’ speed, more
Bloomberg. ladder such as venture financing, we than tripled. Acme Packet Inc., a maker of
“I’m bullish” on 2011, said Larry Sonsini, will see active investments in important devices that help networks transmit phone
chairman and co-founder of Wilson, areas such as cloud computing, clean calls and video, quintupled as investors
Sonsini, Goodrich & Rosati, the Palo Alto, technology, alternative energy, life sciences bet on continued revenue growth and a
Calif.-based law firm that worked with and Internet,” said Sonsini, whose firm possible sale.
security-software maker McAfee Inc. on helped take Google and Apple public.
its $7.7 billion agreed sale to Intel. “When “In this environment, managing the
Venture capitalists are also pushing for market’s expectations is always a challenge,”
paydays after a dearth of initial public said Ken Goldman, chief financial officer of
offerings during 2008 and 2009. Worldwide, Fortinet Inc., the Sunnyvale, Calif.-based
94 technology companies held IPOs in maker of network-security systems, whose
2010, up from 54 in 2009, according to market value increased by about 80 percent
Bloomberg data. in 2010. “The risk of missing the targeted
numbers even by a tad is always greater
than overachieving.”

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Trade & Investment | www.trade-investment.eu 75 January~February 2011


The president, founder, and CEO of Ama-
zon.com where he also acts as chairman
of the board.
Jeffrey Preston Bezos was born on
January 12, 1964 in Albuquerque, NM.
He and his mother relocated to Houston,
Texas, when Bezos was five to live with
his new stepfather. Jeff Bezos attended
River Oaks Elementary School in Houston
until the sixth grade after which he
attended Miami Palmetto Senior High
School when the family moved to Miami,
Florida. Bezos spent many summers of his
childhood on his grandfather‘s 25,000 acre
ranch in Cotulla, Texas helping perform
various duties necessary for upkeep. He
showed early mechanical aptitude and
eventually turned his parents‘ garage into
his own personal laboratory. He eventually
attended Princeton University where he
joined the Phi Beta Kappa fraternity and
graduated with a major in computer
science and electrical engineering. He
graduated with a grade point average
of 4.2, higher than the „perfect score“
of 4.0 due to his overwhelming number
of „A-pluses“ that earned him 4.3 points
each.
With his new degree, Bezos began working
with computers on Wall Street. He helped
create a computer network for Fitel for use
in international trade and later worked for
D.E. Shaw & Co. He founded Amazon.com
in 1994 and was criticized by many in the
Trade & Investment | www.trade-investment.eu
Jeff Bezos
the man who sells you anything
industry who projected that his fledgling
business would fail. Since Amazon‘s original
goal was to sell anything, starting with
books, many believed that the rival website
launched by Barnes and Noble in 1997
would quickly put him out of business.
Bezos, however, remained eternally
optimistic, even after Amazon shares
dropped from $100 to $6 as a result of
these criticisms.
Amazon.com flourished and quickly led
the market for online retailers. Bezos
has been known to work by numbers
and spreadsheets and is well known for
his ability to quantify data and statistics
into his marketing and business goals.
Amazon.com continued to be profitable
and grew to sell a wide range of objects
both new and used. Bezos has profited
from his venture and made it onto Forbes
list of the world‘s wealthiest people for
many years.
In 2004, Bezos started a new company
centered on human spaceflight called
Blue Origin. The concept was originally
to create an „enduring human presence“
in space through regular sub-orbital
trips via specially designed aircrafts. The
program eventually focused more on
creating greater opportunities for anyone
to experience sub-orbital flight. Blue
Origin‘s named its craft „New Shepherd“.
The craft contains more on-board control
than ground support, making it more like
an airplane than a spacecraft. Blue Origin
designed it to take off and land vertically
rather than horizontally. They first flew a
prototype on November 13, 2006.
Bezos also helped develop Amazon
Mechanical Turk, one of Amazon‘s web
services that maximize computer and
human interaction. Bezos introduced the
phrase „artificial artificial intelligence“ to
help explain the principal behind these
services. Since humans perform certain
tasks better than computers, individuals
should continue to perform these activities
and leave computers to tasks that are
better suited to machines. Humans, for
example, are better at recognizing gender
in other people, making them better suited
for this task. These are known as Human
Intelligence Tasks (HITs) and Amazon
helps promote these tasks by hosting a
crowd-surfing marketplace to help match
„Requesters“ to „Workers“.
Jeffrey Bezos ranked 35 on the Forbes
list of the world‘s wealthiest people in
2007 when he was worth an estimated
$8.7 billion.
„We see our customers as invited guests
to a party, and we are the hosts. It‘s our
job every day to make every important
aspect of the customer experience a little
bit better.“
source: http://www.woopidoo.com/
biography/jeff-bezos/index.htm
76 January~February 2011
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