The Dürr Group is one of the world's leading mechanical and plant engineering firms with extensive expertise in automation and digitization/Industry 4.0. We supply the automotive and furniture industries as well as general industry.
We achieve around 55% of our sales in the automotive business. We also supply equipment to the woodworking industry (among others furniture industry), the machinery industry, and to the chemical, pharmaceutical and printing industries. About 40% of our activities are in plant engineering, 60% are in the machinery industry. We focuse on technological niche markets and achieve high market shares of 25 to 50% worldwide.
Production depth within the Dürr Group is relatively low. As a result, we can react more flexibly in an economic downturn, and has a smaller business risk than companies with a high production depth. The Dürr Group achieves typically high ROCE margins. Due to its relatively low vertical depth of production and its focus on NWC optimization, we can generate a high level of cash flow and free cash flow. Service business is becoming more and more significant, as it leads to recurrent and steady business.
The Dürr Group depends on the long-term capital spending behavior of the industrial customers. Growth rates of around each 2-3% are expected long-term in the automotive industry and in the furniture industry as well, but a temporary downturn is visible in 2019 in both fields. Growth is driven by the emerging markets; with China in the lead. The share of the emerging markets in Dürr Group's incoming orders of 40-50% is very high.
The “Dürr 2020” strategy is our roadmap for the Group’s development through 2020. We want to achieve sales of up to € 4.2 billion until 2020.
A key element of “Dürr 2020” entails tapping new areas of growth. Following the successful takeover of the HOMAG Group in 2014 as well as Megtec/Universal (2018), we want to continue on our acquisition course outside the automotive industry.
The acquisition criteria for potential targets are:
- Mechanical and plant engineering or related services and technologies (e.g. software)
- Leading market and technological position
- Not in need of restructuring but offering potential for improved earnings and synergies
- A corporate culture which is a good fit for Dürr
Our strategy for the existing portfolio has one main goal: to ensure that Dürr as a plant and mechanical engineering specialist retains its position at the market vanguard in the digital era. We are driving forward the digitization of our products, services and processes under digital@DÜRR. As the core element of our strategy, digital@DÜRR has ramifications for the four strategic fields that accompany it. We are implementing digitization initiatives in all four segments and simultaneously working on aspects critical for success such as the optimization of our organizational structures and the development of technology.
The main thrusts of the individual strategic fields are:
Internet of Things (IoT), smart factories, smart products, smart processes, automation
Further localization of manufacturing input in the emerging markets
Smart services (e.g. predictive maintenance), customer relationship management, growth through optimized service for the installed base
Digital transformation of the value creation processes, process optimization