Heraeus: Key decisions made to improve revenue and results
- Revenues planned to double by 2020
- Strong investment spurs innovations
- Research and development bolstered in the regions and at headquarters in Hanau
Heraeus, the Hanau-based precious metals and technology Group, has honed its strategy for future growth. "Heraeus has been very successful for many years. Working from this position of strength, we have been able to fine-tune our strategy, aiming for significantly stronger long-term profitable growth," said Jan Rinnert, Chairman of the Heraeus Holding GmbH Board of Management, at the press conference on annual results. The company has already launched a number of initiatives designed to spur this growth between now and 2020.
In the coming years, Heraeus will invest several hundred million euros in research and development as well as the associated infrastructure. One focal point will be at the company headquarters in Hanau, where a modern innovation center, to be completed by the end of 2016, will tie together Group-wide and interdivisional activities. Cutting-edge research there will underpin efforts to expand the positions Heraeus holds in global markets and to outperform the market.
With the focus on attractive future-oriented markets, Heraeus is forming clusters to bundle expertise drawn from all its business groups. "This interdisciplinary approach will enable us to identify new trends and opportunities for Heraeus and align our technology roadmap even more closely with those of our customers," said Rolf Najork, a Member of the Heraeus Board of Management whose responsibilities include technology and innovation. Research will center on new products that deliver tangible benefits to end customers. Increasingly fast-paced innovation cycles in many customer segments, above all the electronics industry, offer Heraeus significant potential for growth.
A steadily flowing innovation pipeline will accelerate organic internal growth in the years ahead. Despite all the dynamic development, the company is holding fast to the values that have always characterized Heraeus. "Our history of success mainly depends on our ability to develop products that give our customers a competitive edge. We could not do this without the solid technological expertise of our employees," Rinnert acknowledged.
Building on its extremely sound financial base and ample liquid assets, however, Heraeus will also continue to grow through acquisitions. "We intend to continue balancing our technology portfolio through purchases and to open interesting new markets," said Jan Rinnert. Heraeus aims to more than double product revenues by 2020.
The financial interest of the Heraeus Medical division in the British start-up Locate Therapeutics, based in Nottingham, constitutes a measure of this takeover strategy. The company has developed a patented polymer platform with TAOS (Targeted Orchestrated Signaling) technology, which enables the precision focus of therapeutic signals and provides an optimal structure to support tissue repair. Heraeus is investing in the development of this wound healing therapy on a long term basis, in order to complement the existing portfolio of the division for orthopedic surgery as well as casualty surgery and biosurgery.
Heraeus Holding GmbH
Heraeus, the precious metals and technology Group headquartered in Hanau, Germany, is a global, private company with more than 160 years of tradition. We create high value solutions for our customers, strengthening their competitiveness for the long term. Our fields of competence include precious metals, materials and technologies, sensors, biomaterials and medical products, quartz glass, and specialty light sources. In fiscal year 2013, Heraeus had product revenue of €3.6 billion and precious metals trading revenue of €13.5 billion. With more than 12,500 employees in over 110 subsidiaries worldwide, Heraeus holds a leading position in its global markets.