Shanghai, China – The new name Hennecke OMS was launched here at the start of the month. The rebranding comes after Hennecke bought OMS in December 2017.
PU China 2018: Hennecke OMS launches
'Rolf Trippler, managing director, Hennecke said: 'This is because Hennecke was strong in the past in steel sandwich lines, mineral wool lines, and also some flexible face lines. OMS is a strong brand in flexible faced panels. It makes sense to show both brands under the brand Hennecke OMS in the future'.
Hennecke decided to buy OMS because the Italian firm was well entrenched in an attractive business area and it would have been expensive and time-consuming to compete.
'To supply flexible face [panels] we would have to do a lot of our own development work and this takes time and money. So strategically, do we want to do all that work, or is there someone on the market who we can bring in? When you look at OMS, they do 90% of the business in flexible face lines and they are the world market leader in this. It was a perfect fit,' he said.
The deal made sense for OMS too, 'If they were to increase the business, they would have to invest massively in an international organisation,' Trippler added.
'In the end, if you look at OMS as a competence centre in lamination, they will grow too bigger than before,' he promised.
Hennecke is impressed with Northern Italian machinery companies' knowledge. The German firm wanted a presence in the region.
Trippler said: 'Our largest competitors in lamination beside flexible faces are companies out of North Italy. This purchase means we can compete with them from the same area. That is a strategic advantage. Northern Italy has a number of sub-suppliers who specialise in lamination systems'.
Hennecke plans to 'keep the complete staff, all the real estate, plant and equipment will stay. The polyurethane business is a very small world. The people at OMS are experts, they have become expert with years of experience, . Therefore, we want to keep all the employees. Everybody has a safe workplace at OMS'.
He promises a significant boost to overseas representation for OMS products, technical service and support. The key is to use the existing Hennecke agents and international service network.
'We are strong with subsidiaries in Korea, China the US, Mexico and Russia. Now we have Italian colleagues in this group,' Trippler added.
'Hennecke agents will take additional OMS equipment into their portfolios. On the other side, in some areas you will have OMS agents who are then complete Hennecke group agents. Agents for the Hennecke group are responsible for the Hennecke portfolio plus OMS.
Trippler said there are a number of business processes that it will bring to bear on the new acquisition.
Decision making will be tackled first. 'OMS was a family business. There were some key people who made the decision the owners and a few key people. In the private equity world, there are clear, structured processes. These processes have to be established in OMS. There will be a lot of work over the next couple of years to streamline OMS business processes,' he said. This will make them 'more closely match a private equity approach.'
'It's not so much the way you do business, the question is how do you manage reporting and how do you structure it to be a complete part of the Hennecke group.'
It will extend to 'new computing systems; reporting guidelines; how you structure sales; how you forecast and the budgeting process.'