Sven Lehnert, CEO of Manz Hungary Kft.
Interview with Sven Lehnert, CEO of Manz Hungary Kft.
The company Manz’s impressive size and international presence belie its relative youth. This month the firm, which is still predominantly owned by founder Dieter Manz, celebrated its 25th birthday at the head office in Reutlingen, Germany. The company has also been active in Hungary since 2004 with Manz Hungary Kft. On the occasion of the anniversary we spoke to CEO Sven Lehnert about business at the Manz subsidiary in Debrecen and the company’s prospects.
Why was the company founded 25 years ago?
The starting point was the manufacture of automation equipment for the production of solar cells. Over the years that was joined by the manufacture of machines for the production of flat-panel displays, batteries and fuel cells. Since the company was founded we have undergone constant development and grown dynamically. We are now in the position to manufacture entire factories where solar cells and solar modules can be made.
Where else is the company present internationally?
We have four sites in Hungary, and elsewhere in Europe there is a manufacturing site in Novo Mesto, Slovakia. For several years we have been supplying the Asian market through our subsidiaries in China and Taiwan. In order to concentrate our manufacturing in Asia we recently opened a new factory in China. That’s the largest investment in the history of Manz. It has a hall area of 16,000 square metres.
How many employees does Manz have worldwide?
Over 2,000. Here in Hungary we have 93. Our worldwide turnover last year was EUR 240.5 million and will be somewhat higher this year. In Hungary we are targeting turnover of EUR 5 million to 6 million this year.
When did your firm first establish its presence in Hungary?
Since 2004 we have had a manufacturing site in Debrecen. We have a welding shop there and a processing shop with a large portal machine, allowing parts with large dimensions to be processed. Its processing bench has dimensions of five by three metres, and the height of the portal is 1.8 metres. However, we also have a small parts processing shop with CNC-controlled (computer numerical control) milling machines and turning machines. In addition we have an assembly shop where we can ourselves assemble machines electrically and mechanically. We have a relatively high manufacturing depth. We obtain the materials and bought-in parts ourselves for everything that we manufacture. Then we manufacture or assemble the required parts or equipment and deliver them to our customers. Those are mainly sister factories but we are also increasingly supplying to end customers.
Why did Manz decide to set up in Debrecen in particular?
There were links between the founder of our firm and a Mr. Mészáros in Debrecen. Initially a joint enterprise was established by the two parties. Our parent company wished to move some parts of the manufacturing process from Germany to a low-wage company. After some time the Hungarian partner withdrew from the company as planned. Our company has been called Manz Hungary Kft. since then. We were first called Manz Automation Hungary Kft. but we removed the word “automation” because it ceased to be our sole focus.
What is your unique selling feature?
Highly sophisticated manufacturing of high-precision welded parts.
Precision, above all. Solar cells need to be treated extremely carefully because the silicon wafers are very thin and fragile. Special, precise machinery is required to handle them. That is why precision has been key to our manufacturing since the very beginning. We have built the necessary equipment here such as machines and welding benches. We have system welding benches, allowing parts to be welded very precisely. Not many companies can weld with high precision, especially in Hungary. We also make parts from steel, aluminium and plastic using various cutting processes. All this requires a lot of expertise and perfect teamwork between employees. That’s why we recently decided to introduce special training to enhance such cooperation.
What kind of machines do you manufacture?
One of our customers, for example, ordered a turning bench from us. That company makes equipment for the automobile industry. We manufactured the base frame for the turning bench. Extreme precision is critical. The tools need to be precisely positioned in the machine. If that isn’t guaranteed, the reject rate is high. As is well known, the automobile industry is very sensitive to that. Since we began supplying to end customers we have been able to gain numerous big-name customers, including Bosch Packaging, Frimo, Hauni and Heidelberger Postpress. However, we still have free capacity that we would like to use. I would welcome additional customers in the fields of welded parts, large parts processing, assembly and small parts in particular.
Who are your potential customers in Hungary?
Anyone manufacturing machines is a potential customer of ours. If we receive the blueprints we can manufacture complete machinery. We don’t yet have a blueprinting department ourselves. We have a job preparation department, which accepts orders and then says in what order we should manufacture the parts. Then our technology department with its programmers and melding technologists gets involved. Following such preparatory work we then manufacture the required parts. In other words we are a pure manufacturing operation.
Why did you decide to supply increasingly to end customers?
First, the order situation in the photovoltaic industry is not good at the moment. Second, we have built up a very good workforce, which we would like to retain. And finally, by increasing our effectiveness we are able to produce more parts than one or two years ago. However, if the unsatisfactory order situation goes on for a more extended period, we will likely not be able to avoid staff adjustments. Our aim is not to let employees go but to give work to our existing qualified employees and make the best possible use of our capacity.
What do you offer?
The manufacture of high-precision welded parts with drilling and cutting including surface treatment, as well as electrical and mechanical assembly. We also offer small parts manufacture with surface finishing such as anodising, painting or powder coating. In total, therefore, there are three main fields in which we can support our customers. We are relatively small but our manufacture is highly sophisticated. The average job size at our factory is six pieces. Incidentally, we are looking not only for customers but also suppliers. We are always on the lookout for companies to whom we can outsource certain processes. We are also seeking reliable suppliers of materials.
What is the situation regarding suppliers?
We have a large circle of suppliers. In Hungary it’s difficult to find suppliers that can satisfy the three key demands of price, turnover time and quality in the right balance. We’re keen to work together with additional suppliers. That’s one reason why we’re involved in setting up a supplier qualification project. That’s not about putting suppliers under pressure but about helping them to produce better quality so that all our processes function more smoothly. We need to investigate why errors have occurred and how such errors can be avoided. If I notice an error as a customer, then my entire assembly can end up in disarray. Given such quality requirements we realise the importance of working together even more intensively with our customers and suppliers. It’s about developing long-term cooperation based on trust. There will always be highs and lows. The management of Manz, however, is committed to Hungary. We definitely want to retain and further expand our manufacturing here.
