TÜV SÜD steps up growth and creates new jobs
Munich. International service corporation TÜV SÜD has succeeded in significantly accelerating its growth. The Group's consolidated revenue for 2010 will rise by roughly 10 per cent to just under EUR 1.6 billion, more than doubling last year's increase (2009: EUR 1.43 billion, a year-on-year increase of 4.5 per cent). The number of employees also reflected this positive trend, rising this year by 1,400 to 16,000-plus. In addition to organic growth, TÜV SÜD also relied on major acquisitions in the USA, Asia Pacific and Europe and on founding new international subsidiaries to advance the internationalization of its business and its global position as "add value" partner. Another focus of the Group was the proactive move into innovative and profitable growth sectors including electromobility and renewables.
"This year, we significantly stepped up growth", noted Dr Axel Stepken, CEO and President of TÜV SÜD AG, at the corporation's annual financial results conference in Munich. "We provided important impetus – particularly for inorganic growth and the further internationalization of our company."
The two largest acquisitions were the US company Global Risk Consultants (GRC), with 350 staff and revenue of USD 55 million, and Korea-based KOCEN Consulting & Service, with 316 staff generating revenue of EUR 14 million. In addition, TÜV SÜD also strengthened its international presence in its key fields of activities by acquiring a number of smaller companies, including Canada-based Global Advantage, US Playground Certification and the UK-based Laidler Group in the field of product testing, Austria-based ZWP and the US company Mechanical Integrity in the field of industry services and, in the field of rail services, the newly founded company ECG.
Following the success story of TÜVTURK, TÜV SÜD has also continued to expand its automobile services at international level. "We already entered the South African vehicle inspection market in summer by acquiring shares in AVTS Roadworthy Stations", explained Dr Stepken. However, TÜV SÜD has pursued further internationalization not only by making acquisitions, but also by establishing further international subsidiaries. According to Dr Stepken, the establishment of TÜV SÜD France, TÜV SÜD Ukraine, TÜV SÜD Serbia and TÜV SÜD Sri Lanka is a clear demonstration of TÜV SÜD's aim to strengthen its services on these markets.
Investments in existing and new business areas up by 25 per cent
In the current business year, TÜV SÜD succeeded in increasing its consolidated revenue by roughly
10 per cent to just under EUR 1.6 billion. "This result has brought us well on our way to reaching our '2014 target', i.e. to increasing our revenue to EUR 2.4 billion over the next four years", explained
Dr Peter Klein, Chief Finance Officer of TÜV SÜD AG. Over the next years, the efforts of reaching this target will revolve around organic growth complemented by profitable acquisitions. Fiscal 2010 provided an excellent foundation for this growth strategy: "We are extremely satisfied with the earnings for this year. Currently available figures show that we succeeded in markedly improving our result in 2010", announced Dr Klein.
The CFO described the classic industry business, from the testing of power stations to industrial installations, lifts and transport infrastructure, as one of the key growth drivers in 2010. "This is all the more notable, given that the market for the inspection of plants and installations falling under regular supervision and inspection underwent liberalization only a few years ago", he explained. "Our successful development in this fiercely competitive sector clearly shows that TÜV SÜD is excellently prepared to face competition." The number of employees also reflects the positive development of the service corporation, rising by over 1,400 to 16,000-plus this year.
To continue on this path of success, TÜV SÜD expanded its investments into existing and new business areas in the current fiscal year. "In 2011, we plan an even more pronounced increase in investments to a total of around EUR 100 million", announced Dr Klein. A major share of these investments will be used to develop and expand new profitable business areas, including electromobility, renewables and softlines (textile products, apparel and shoes) testing.
Safe electromobility – TÜV SÜD on its way to becoming the number 1
After carrying out the first crash tests on lithium-ion batteries in 2009, TÜV SÜD continued to deliver clear impetus for electromobility this year. The milestones in this development included the go-ahead for the construction of a new battery testing laboratory in Garching, development of a landmark standard for determining the range of electric cars, performance of the first roadworthiness test on an E-Mini, approval of the Mitsubishi i-MIEV – and thus of the first fully electric car for German roads – at our subsidiary TÜV Hessen, and the opening of e-car recharging stations at the service centres in Hamburg and Starnberg. "All our activities in the field of electromobility focus on a clear target", said Horst Schneider, Chief Officer MOBILITY of TÜV SÜD AG: "Within the next five years, we aim to become the international number 1 provider of safety-related testing and certification services in electromobility."
Renewables – from "B for biofuel" to "W for wind power"
Renewables are another important growth market for TÜV SÜD.
"We already offer a wide range of services on this market, and are continuously expanding this offering", said Dr Axel Stepken. Certification of green power, now with almost 'classic' status since TÜV SÜD is conducting certification of the zero-carbon transport offers of Deutsche Bahn and DB Schenker Rail, was complemented this year by sustainability certification of biofuels. After gaining accreditation from the Federal German Agency for Agriculture and Food (Bundesanstalt für Landwirtschaft und Ernährung, BLE) as Certification Body for Biofuels, TÜV SÜD presented the first certificates confirming sustainable biofuel production to Nordzucker AG as early as September.
"In the field of wind power, we are also strengthening our service portfolio in a highly targeted manner", explained the CEO and President. Today, TÜV SÜD offers all types of wind assessments, permitting informative and reliable yield and profitability forecasts. On behalf of Baden-Wuerttemberg's State Ministry of the Economy, TÜV SÜD is developing a wind atlas designed to improve the dataset for the use of wind power in this German state. Against the backdrop of the opening of Germany's first offshore wind farm this year, Dr Stepken announced that TÜV SÜD will also proactively support development in the offshore sector. The activities in this field will be concentrated in the Hamburg-based Certification of Offshore Wind Power department, which will launch operations in January 2011.
Consistent expansion of global testing infrastructure
TÜV SÜD has built up a global network of laboratories and partner laboratories for the testing and certification of photovoltaic modules. "We are represented in all major manufacturing countries and the key photovoltaic markets", emphasized Dr Stepken. "This benefits manufacturers who want to sell their products across a wide variety of target markets and global regions." To support manufacturers, importers and retailers, TÜV SÜD continuously invests in further expansion and improvements to its global test infrastructure.
"Over the last three years, for example, we have spent a total of EUR 10 million on establishing, improving and expanding the testing of softlines – textile products, apparel and shoes", stated Dr Stepken. This year alone, two new softlines laboratories opened in Vietnam and Bangladesh. Today, the Group has 300-plus staff in this area working in 18 testing laboratories, 14 of which are located in Asia alone.
New technologies and international networks bring big challenges for companies and staff. Given this, the demand for vocational education and training is steadily rising. "These are good prospects for TÜV SÜD Akademie, which will celebrate its 25th anniversary next year", said Dr Stepken. With 500 staff at 80 locations, TÜV SÜD Akademie has become one of the leading education and training partners of industry, trade, commerce and private individuals. In August 2010, TÜV SÜD Akademie took an important step towards the further internationalization of its activities by acquiring Singapore-based Service Quality Center. "This acquisition enabled us to further strengthen our position on the Asia Pacific market of further education and training", noted the CEO and President. TÜV SÜD Akademie and PSB Academy – another TÜV SÜD subsidiary – offer a wide range of training courses in the fields of technology and management and one-stop, full further training solutions.
"The development of TÜV SÜD Akademie is another example of TÜV SÜD's successful expansion into growth markets", noted the CEO and President. By continuing on its path of further internationalization and moving into sustainable business areas, TÜV SÜD's highly dynamic upward trend will continue undiminished in the years to come.
