Mr. Carta, as a medium-sized company, what strategies do you utilise to identify long-term growth potential despite economic challenges?
Andrea Carta: The Kurtz family and management have ensured the consolidation of the Group through three pillars that also work independently of each other: Electronics Production Equipment, Moulding Machines, and Automation. We are constantly looking to expand these business areas, and are always asking ourselves whether – and in which area – we should perhaps establish a fourth pillar. It is extremely important for us not to be dependent on one single business or sector. Although there are many joint projects between our three divisions, each division runs its business independently.
How important is it to be close to customers, especially in the current situation?
Carta: In view of the many multinational crises of the recent past, over the last years, we have been putting a lot of effort into expanding our global footprint. We established our own production sites outside Germany at an early stage – in the USA, China, and in Mexico last year. Due to the fact that manufacturing takes place there, we are less susceptible to customs duties. Apart from the geopolitical advantages, I have always been of the opinion that you can't please the whole world from Germany. Customer requirements differ from country to country. That is why it is important to be very close to customers, in order to better recognise and meet their requirements. For example, if the level of automation in a country is still low, we have to offer machines there that are operated by more staff than it would be the case in countries with a high level of automation. It is incredibly important to match the right products to the respective markets. As a medium-sized company, Kurtz has been doing this for a long time. In my view, this is exemplary.
How important is resource conservation in the various markets?
Carta: We have already come a long way in Europe. Strong regulations here require that many products and processes are being developed that benefit the environment and sustainability. This is also an advantage over our competitors, because if you don't set these requirements, you won't incorporate them into your products. Sustainability is now highly valued in China. For us as a mechanical engineering company, China is therefore a market for sustainable solutions. I consider Japan and Korea to be on roughly the same level as Europe. Southeast Asia is not yet as advanced. In South America, the idea of resource conservation is still in its infancy. I view current developments in the USA as problematic, as politics are very erratic, depending on which president is in office at the time. This creates great uncertainty regarding the extent to which they are focusing on sustainability.
How can greater efficiency help to reduce the use of plastics?
Carta: The key to greater efficiency is the process. This is where we are leaders in the German plastics machinery industry. We know the complexity of the processes and we are able to handle them. Understanding the process and having the right machines brings two major advantages: firstly, the precise use of material already offers efficiency benefits. At the next K trade fair, we at Kurtz will be presenting a new dosing system that is so precise that it can save five to ten percent of materials. Secondly, we have processes in place that ensure that less waste is being produced. These are the two levers. As far as the processes are concerned, we are still much further ahead of the Chinese.
What is the current status of the circular economy?
Carta: The circular economy is a process that will take a long time. European mechanical engineering has only just started. I think we have to give mechanical engineering the chance to develop the necessary processes. I don't see the goal as being to recycle 100 percent of used plastics. I see it from a business perspective: Germany is further ahead of everyone else. We have a unique selling point here and we should use it to generate further business. Will everyone join in? No, not everyone will be joining in. There are a lot of countries that still do not recycle at all, but many other countries are continuing to increase their recycling levels. I believe that the circular economy needs further encouragement and requirements. We are on the right track, both in terms of the environment and industry. We are developing a lot of technologies – because we are leading the way, which will benefit our business on a global scale.
What potential does artificial intelligence have?
Carta: AI will have a huge impact on our business. Our machines generate billions of data over their life cycle, which is what AI requires in order to learn. With the help of AI for example, we will be able to produce and process recyclates better. AI will learn which material fluctuation should be treated and how. You could argue that the process sovereignty that we have in Germany would no longer be necessary; that is only superficially true. In order to maintain process sovereignty, we have to invest more than everyone else, and need to make our machines AI-capable as quickly as possible; otherwise other parties will be faster, and it will be too late for us.
The motto of the K is very self-confident: "The Power of Plastics". What does this power consist of?
Carta: Plastics have made the world a better place and will make it even better in the future. No material in the past has achieved what plastics make possible – except perhaps metal. Plastics form the basis for the quality of life to which we have become accustomed. The world would be unthinkable without plastics. They have disadvantages, just like any other material. Is everything good that is made from plastics? No, it is not. But in some areas it is the best possible material. Should we use less plastic packaging? Probably, yes. But fundamentally, plastics are extremely valuable. That's why I think the K's self-confident motto is very good.
