Realignment of a leading manufacturer and operator of recycling plants

The starting position 

With a turnover of more than € 230 million, the Eggersmann Group is one of the market leaders in the European recycling industry. Its operations encompass machinery and plant engineering, the management of composting facilities, and various ancillary activities. Until 2016, the group experienced dynamic growth, driven in part by numerous acquisitions both domestically and internationally. However, this expansion resulted in a high level of product diversity, spread over more than 30 individual companies and ten production sites with historically grown systems and processes. In 2017, there was a market-related drop in performance of almost 20% and a first-time loss situation. Despite attemts at selective, decentralized optimization, the desired success remained elusive.

The procedure 

bachert&partner developed the introduction of business units with bundling of downstream production units as an overriding organizational strategy. This involved establishing a central manufacturing and assembly site was set up in Poland for both plant engineering and mechanical engineering, and the remaining activities were bundled into just two production sites in Germany, each separated according to site and special designs. While decentralized technology locations for individual brands were retained, they were standardized into a uniform group image concerning market presence, service, modular systematics, and design standards. bachert&partner took over both the conception and the project management of the implementation in close cooperation with the Eggersmann Group over a period of two years.

The measures at a glance 

  • Setting up the site in Poland over a period of two years and ensuring technical capability on site

  • Establishment of 230 employees in Poland and implementation of materials management, work preparation and production management

  • Consolidation of core areas by closing seven locations and relocating logistics to Poland

  • Gradual relocation of assemblies and machines from the individual brands and locations

  • Significant increase in productivity through establishment of store floor management, value stream analyses and takt production, optimization of set-up and target times

  • Standardization of IT processes through introduction of central QM system, standardization of ERP/PDM systems at all sites, integration of merchandise management, preparation of production plans suitable for relocation 

The successes 

  • A return to positive annual results already took place in 2018

  • Thanks to the straightforward approach to implementation, earnings improvements in the double-digit millions were realized

  • The company's overall productivity as a ratio of gross profit generated to personnel expenses employed increased by 21%

  • Project risks were significantly reduced thanks to stringent project controlling - loss-making products were largely eliminated

  • More than 800 jobs have been secured, the Group is well positioned for future performance and sustainability