Business model / Strategy

Dürr is a world-leading provider of systems, services and products with outstanding expertise in automation and digitization/Industry 4.0. We supply the automotive and furniture industries as well as general industry.


Business Model

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. Dürr focuses on technological niche markets and achieves high market shares of 30 to 60% worldwide.

Production depth within the Dürr Group is relatively low. As a result, Dürr can react more flexibly in an economic downturn, and has a smaller business risk than companies with a high production depth. Dürr achieves typically high ROCE margins. Due to its relatively low vertical depth of production and its focus on NWC optimization, Dürr 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.

Dürr depends on the long-term capital spending behavior of the industrial customers. Growth rates of around each 3-4% are expected in the automotive industry and in the furniture industry as well. Growth is driven by the emerging markets; with China in the lead. The share of the emerging markets in Dürr's incoming orders of about 50% is very high.

Strategy

The “Dürr 2020” strategy is our roadmap for the Group’s development through 2020. It defines the following targets:

  • Sales: increase to as much as € 5 billion by 2020 through organic growth and further acquisitions.
  • EBIT margin: increase to 8 to 10% by 2020.
  • ROCE: Planned level of more than 30% by 2020 on a sustained basis.

Portfolio strategy: Tapping new areas of growth

A key element of “Dürr 2020” entails tapping new areas of growth. Following the successful takeover of the HOMAG Group in 2014, 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

Further strategic areas

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:  

  • Innovation:
    Internet of Things (IoT), smart factories, smart products, smart processes, automation
  • Globalization:
    Further localization of manufacturing input in the emerging markets
  • Service:
    Smart services (e.g. predictive maintenance), customer relationship management, growth through optimized service for the installed base
  • Efficiency:
    Digital transformation of the value creation processes, process optimization
Ralf W. Dieter, CEO Dürr AG

Industry 4.0 has evolved into an important aspect of innovation at Dürr. In the ADAMOS IIoT platform for the mechanical engineering sector and the LOXEO and tapio digital marketplaces based on it, we have a pioneering infrastructure that will allow us to support the users of our machines and plants with digital services.

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