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Family man equips Bobst
2010-10-28

Packaging News

 

Profile: Family man equips Bobst for fruitful future

 

 

 

The converting equipment giant had a tough time in 2009 but, after cutting millions in costs, things are looking positive. Josh Brooks meets the man who took the helm in the midst of a make-or-break crisis

 

The recession brought difficult times for many in the packaging industry, not least equipment suppliers. Bobst was no exception. Despite owning some of the biggest names in converting kit – such as Fischer & Krecke, Asitrade, Rotomec and more – sales plummeted by half between 2008 and 2009 and the business became loss-making.

 

In the midst of the crisis last May, Jean-Pascal Bobst, part of the business’s founding family, became chief executive and set about turning the firm around. Packaging News met up with him for an exclusive interview at the Ipex print show to talk about what has happened and his plans to grow the business.

 

PN: We’re at a major machinery trade show but you haven’t brought any machines. What’s the thinking?
You have to take some risks sometimes in how you do things. We’ve presented the 3D show which enables customers to see inside the machines. It’s working – we’ve seen new potential customers. It’s about the group image and optimising our cost. You can’t say you’re going to cut costs out of the business and get your act together and then bring lots of machines to every show.

 

Speaking of costs, you’ve just gone through a cost-cutting programme where the aim was to reduce costs by around CHF100m (£60m) a year and you’ve closed two plants – one in France and one in Switzerland. How did you approach that?
We had to go back to being profitable, while keeping a focus on the three industry sectors we serve – folding carton, corrugated and flexible material – but finding cost synergies. When you make CHF1bn a year in each sector, you don’t have to worry about it. But when that drops to CHF1bn a year for the group you have to think a bit harder.

 

Is it just about cutting costs?
We are aiming to get breakeven from CHF1.4bn to around CHF1.2bn. So we launched a transformation programme – not a restructuring – where the aim was to do things differently. Just by saying you need to cut costs by 15%, you don’t prepare the future for the company. Of course with that you have some restructuring plans. But to change the culture is much harder and much more challenging.

 

All machinery manufacturers have been hit by slower sales during the recession due to the lack of credit. So where do you see growth?
We’ve got to look for the low-hanging fruit. In recent times I don’t think we have focused enough on proactive service for our customers. Service is one of the three business units we now have internally. Currently it accounts for around 22% of total sales – the objective is for that to rise to 30%.

 

What about emerging markets like China and India?
In India, we have a leading edge and a strong presence. We are increasing our capacity by doubling our facility in Pune – so we are increasing our commitment to the Indian market. China’s different – there are a lot of local competitors and we should not underestimate their strengths. It’s also harder because each state has its own rules and regulations, and as an overseas company there are special rules. Very few Western companies are successful in China from a profit point of view. That said, we’ve been there 10 years and we want to be the major player in China.

 

Are you looking at acquisitions?
Yes, always. If it’s in Europe or North America, you’re buying technology that you don’t have. In emerging markets like China and India, it’s all about m
arket share. But there’s nothing concrete to talk about at the moment.

 

How do you see the market for your customers at the moment?
Most of our customers had decent to good years in 2009. Many were down 5% or 10% in turnover – pretty good, given the economic situation. So the market is ready to rebound and invest again. The big uncertainty now is the crisis for the euro, which will slow down the decision-making process and I guess we will see some stagnation. But for us, Q1 was 20% ahead of last year and I’ve predicted we’ll get back to CHF1.25bn sales for this year.

 

You’re the first member of the Bobst family to run the company for many years. How are you enjoying it?
I love the job – there’s no point doing it if you don’t. What’s really satisfying is the loyal and long-term relationships with our customers and staff. Many of our customers are family companies themselves, so we speak the same language. Bobst is a listed company but the family still owns around 45% of the shares, so we still have that family culture.

 

How did you come into the business?
I trained as a mechanical engineer then worked for three years for another company in Germany. I joined Bobst in 1994 and went to work in the US for a few years doing the normal jobs – service and spare parts, customer service and so on. So I know the company quite well from the inside out. And I have peace of mind because I know I have the trust of the family, too – that’s very important.

 

Finally, how would you define Bobst?
Through the transformation plan we’re putting the priority on servicing our customer base better, and there are no cuts in developing new technology. We remain a very strong, human company and we are driven by our values. Sometimes smaller companies think we’re too big for them to deal with, but it’s a myth – we’re open to all types of smaller, medium or larger size companies, with the same motto: deliver what we promise in a professional way.


JEAN-PASCAL BOBST
Age 45
May 2009-present Chief executive, Bobst
2006 Becomes Bobst board member
1994-2006 Various management positions in Bobst’s international businesses
1991-1994 Schindler Berlin, Production Eastern Europe
Education Studied mechanical engineering at degree level. Studied business at French business school INSEAD

 

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