10% Cost Reduction

To safeguard our global competitiveness we are aiming to reduce costs by an average of 10% by the year 2010. The focus in achieving this cost reduction potential in our own proportion of value-added will be on

• increasing plant utilization rates
• extending operation times to 6 or 7 weekdays and
• utilizing the cost advantages in low cost countries.

An important instrument to achieve cost reductions is our Idea Management. Our employees contribute a significant amount to our competitiveness due to their good ideas.

Cost reductions totaling 10 % can however only be achieved if basic potential can also be developed in purchasing. In this respect we place the same demands on our suppliers as our customers place on us, knowing full well that exceptional performance can only result from fair and constructive cooperation with mutual benefits. Furthermore the fact that greater cost effects can only be achieved via a more pronounced internationalization of purchasing activities applies.