by Malcolm Bates
A three hundred percentage point increase in production within a decade is impressive in any language. Even in Chinese, judging by the news that China’s annual economic growth now faces a downturn in growth of less than 10% next year. And for those who think that all the key movers and shakers in any industry are large, multi-national corporates that move around the planet exploiting new markets to benefit shareholders before all other considerations, there’s another shock in store – it is the family-owned hydraulic machinery manufacturer Sennebogen, based in Bavaria, Germany, that is claiming these growth figures. Not some new joint venture company with cheap labour rates based in the Far East.
 The new €30 million Straubinger Havn production facility recently opened by Sennebogen, taken by the author suspended from a Sennebogen-built tower crane, naturally! |
And to those in the financial world who think that ‘globalization’ ultimately means large chunks of national manufacturing capacity being controlled by people from another country, or that commercial considerations have, by their very nature, to be in direct conflict with our planet, a closer look at Sennebogen says: ‘Oh no it doesn’t.’ In fact, ‘taking a closer look at Sennebogen’ is exactly what the author – together with 3500 other visitors – has been doing in the town of Straubing recently. The reason for the visit was both a contrast and a welcome surprise – it was to attend a party, celebrating the company’s success to date and the director’s infectious confidence in the future.
At a time when many machinery manufacturers are announcing cuts in production, the closure of factories and the loss of skilled jobs, Erich Sennebogen Junior (who together with his brother Walter, now run the company following Erich Sennebogen’s retirement), was announcing an increase in production of Sennebogen lattice and telescopic boom cranes, rope excavators and materials handlers to meet global demand – to a point where a brand new production facility and more staff were necessary.
Increased share
At the same time, it was announced that the capacity of the company’s spare parts stocking was being doubled, together with a corresponding expansion of the company’s training facilities. Today, around 1000 people work for the company worldwide and the order books are full. So far, so impressive then.
But Erich Sennebogen Junior confirmed that new products will also be launched on schedule – whatever the financial pundits predict. Taking the opportunity to talk directly to 3500 policy-makers, potential customers, distributors and journalists from all over the world, he predicted Sennebogen would continue to grow market share (even in a tightening market) and more controversially, outlined why the company could afford to take a long-term view, when its larger corporate competitors (with loyalties to shareholders and banks) could not. Staying with controversial topics, he also explained why Sennebogen no longer had any production ambitions in China – issues over machine cloning and unapproved distribution, it seems being the cruncher.
 Green machines: visitors were able to inspect just about every machine in the Sennebogen program. A fixed raised cab 723 Green Line materials handler is in the foreground |
Obviously, finding a suitable venue to accommodate and entertain so many people could have presented a logistical problem, but Erich Sennebogen Junior’s stage was in fact as purpose-built as the company’s machines – being built inside the main product test hall within the brand new 125,000 m2 Number Two plant at Straubinger Havn. With the production of all Crane Line and Port Line machines now transferred to this new €30 million facility, the original plant in Straubing city centre is being refurbished to become the global spare parts, service and training centre, he explained.
With both production and turnover up consistently over the last decade (dramatically so between 2003 and 2005) Erich Sennebogen Junior predicted that the projected turnover of €400 million for 2009 was still achievable, in spite of the cutbacks in traditional markets for hydraulic plant and machinery. Although not prepared to talk production numbers, it is estimated that total production could well exceed 2000 machines next year. Not large by multinational corporate manufacturer’s standards, perhaps, but doubly impressive when you consider that nearly all Sennebogens are currently built to customer order and each are likely to be of a different specification. So the big question had to be: Why were the Sennebogen brothers so confident about the future?
The answer is that only part of the Sennebogen programme relates to the construction industry. Plus, recent product launches have either been of a multipurpose nature (such as the Multi-Crane), or aimed specifically at the waste and recycling sectors (like the Green Line machines). That shows canny foresight.
First with safety features
It’s worth noting that Sennebogen was one of the first manufacturers to see the value in a modular construction, to allow for economy of scale (due to reduced parts stocking) and ease of build, while the company also pioneered features such as hydraulically-raised driver’s cabs to improve site safety. This, and the purpose-built nature of Sennebogen products, has stood the company in good stead to meet the exacting requirements of the scrap, waste, recycling and composting sectors at a time when reliability, productivity and operator safety came under the spotlight. Another example of foresight, good fortune or just plain luck?
 ‘It’s my party ...’ Erich Sennebogen, who, with his brother Walter, has presided over the company’s recent expansion and is optimistic for the future |
Call it what you like. But whatever you call it, Erich Sennebogen Junior will probably suggest it was all part of some typically German long-term planning. In fact he has a phrase for it: ‘Vorsprung durch innovation,’ echoing that slogan used by Audi, another famously forward-looking German brand.
A combination of innovative features, quality construction and an ability to build specialized machines to meet tough and severe operating conditions, has enabled Sennebogen to win a growing share of the scrap, waste, recycled materials and composting markets. And while he doesn’t doubt that hard times lie ahead, Erich Sennebogen Junior suggests that high quality products built in an efficient, modern factory, to give a long service life with enhanced warranty and spares back-up, are likely to be more useful to customers than cheaper budget solutions. It’s a logical argument – and the high residual prices achieved by secondhand Sennebogen machines confirms the market thinks so too.
So what else does the Sennebogen brand stand for? We’ve covered the marketing philosophy: ‘We will concentrate on building Sennebogen-designed products. We are not interested in either marketing products made by others with our branding or building mass-produced machines,’ Erich confirms. And we have noted that the family company is prepared to invest in modernizing production facilities, but we should also bear in mind that this comes just four years after a considerable investment in the refurbishment of the 160,000 m2 Wackersdorf factory. This site previously built machines for CAT and other leading brands under contract, but since 2005 has been used to manufacture the Green Line products.
Talking exclusively to Waste Management World, Erich Sennebogen Junior further explained his commitment to our industry and why he thought machinery manufacturers should adopt a ‘problem solving partner’ role, working more closely with waste authorities, local councils (kommunes) and commercial contractors. He acknowledged this required trust on all sides, but gave some specific examples of where bringing the machinery manufacturer in at the early design stages of a new waste handling plant, for example, could save considerable resources, boost tonnage throughput and increase site safety. It is also clear that Erich Sennebogen’s key priority is the need to reduce emissions and the carbon footprint of Sennebogen machines.
A replacement for wheeled loaders?
The next new Sennebogen product, due to be launched in April, is another example of the blue-sky thinking by the company’s design team. Waste Management World had previously looked at the unique 305 Multi-Handler (April 2006): essentially, a hydraulically-raised cab telehandler with all-wheel-drive/four-wheel-steer capability which allows the operator to adjust his sight line by up to four metres above ground level, while loading crushers or waste containers. The cab can be raised while the machine is working without stabilisers being required.
While the 305 Multi-Handler is used throughout the construction, port handling and aggregate-loading industries, the build of this 11.5 tonne machine also makes it ideal for many scrap, waste, recycled materials and composting applications. One downside of the 305 is that, as a unique ‘one machine range’ in the product line-up, it was difficult to market against competitive brands of conventional telehandlers. Soon that situation will change with the launch of the 310 Multi-Handler.
 Production of the new 310 Multi-Handler starts in April. Price-wise it will compare with existing large wheeled loaders, rather than existing conventional telehandlers |
This new big brother to the 305 will have a machine weight nearer to 20 tonnes and the capability to lift three tonnes up to 10 metres. When working with a five m3 capacity loading bucket, it will have the capability to directly replace articulated wheeled loaders – allowing a more efficient trimming of stockpiles (thanks to the teleboom facility) and the ability to load waste containers and shredders in greater safety (thanks to the hydraulically raised cab feature, shared with its smaller sibling).
 The interior view of the hydraulically-raised cab of the 310 underlines the high quality of this innovative Sennebogen machine |
At this point, I would love to be able to report on how well the 310 performed on test – and give you more technical details – but unfortunately I can’t. At the time of my visit, only the prototype existed and despite my pleas, Erich Sennebogen Junior refused to allow me to drive it, perhaps understandably! But from a detailed inspection, it looks like this heavier, more powerful (143 Kw) addition to the Sennebogen range will be a winner – and that’s not just my view. Another guest at the party, Matthew Hanlon from UK-based specialist plant rental company Hanlon & Co, confirmed my enthusiasm, adding: ‘I can see several applications for the 310 and I can’t wait to try one.’
Conclusion
With the range of Green-Line 360 materials handlers, starting with the 22 tonne machine weight 821M and going to the top-of-the-range, extended pedestal 90 tonne 870M Special (plus corresponding R-suffixed versions), Sennebogen was already in a competitive position to meet the specialised demands of our industry. The arrival of the new 310 will enhance that capability, while continuing the trend towards heightened safety and operational efficiency improvements, established by the recently introduced X-Cab option on the 360 machines.
 Materials handlers are getting bigger – this is the 70 tonne machine weight 870M wheeled machine. Tracked and tracked/extended pedestal versions are available |
But Sennebogen is unlikely to have things all its own way in the months ahead. The Italian manufacturer Solmec (also family-owned) has a new production facility under construction. At the same time, the big corporate brands that have previously relied on the construction sector, are sure to try to win over what they considered the more difficult niche market sales.
Indeed, the waste sector looks set to be the only market likely to continue to expand. And in that respect, CAT and Terex (to name just two key brands) have reorganized their sales structures from ‘by model type’ to ‘by operational sector’ basis, within waste and recycling so to support local dealer sales staff. Others, such as Case and Komatsu, are also refocusing. Whether these brands will go as far as UK-based JCB and add market-specific branding (such as JCB’s Wastemaster logos) remains to be seen, but it should come as no surprise to learn that Sennebogen is already there!
With its yellow Crane Line, deep blue Port Line and bright green Green Line product colour coding, one thing is for sure – the future is unlikely to be grey and boring!
Malcolm Bates is Transport Correspondent for Waste Management World e-mail: wmw@pennwell.com
