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Freek winner at "milestones" contest |
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Original extract from
www.milestones.nrw.de (link no longer available)
Category: Turnaround, Group: medium-sized and small enterprises
Friedr. Freek GmbH, Menden: impressive market success by horizontal co-operation
Founded in 1950 in Menden as a single enterprise and converted into a Ltd. company in 1970, today Freek manufactures and distributes with 45
employees electric heating elements and heating systems for industrial and household appliances. The turnover in 2001 exceeded 5 million euros.
As a typical subcontractor, specialized in niches, Friedr. Freek GmbH was confronted by considerable problems in the nineties: concentration
on customers' side resulting in demands for price reduction, a larger performance spectrum and increased quality standards pressed the company hard.
The dependance from the stagnating 'white ware' industry and missing monopoly characteristics led to a 34% decline in business from 1993 to 1996.
As a way out the management looked for an intensified co-operation with other small enterprises with a similar need of action. Yet, merger and acquisition
were ruled out. In 1997 Freek initiated the horizontal R&D co-operation EUCOPET, which is meanwhile joined by five carefully selected international
partner companies. Main target was the mutual completion of resources and abilities, especially for joint Research & Development followed by the
promotion of innovation power and the orientation towards export markets. The co-operation proved to be most successful. New products became money-spinner,
among them heating elements for hand and hair dryers. With this example Freek and its co-operation allies showed that it is possible, with intelligent value
adding concepts, to produce even Low-Tech-products in highly industrialized markets profitably. A million-order deal for Infrared-heaters followed.
The intensive exchange in all relevant technological and organisational matters as well as the exploitation of synergy effects paid for all parties involved.
Apart from new products, lasting process improvements in administration and production have been achieved. Together with extensive marketing all partners
achieved visible improvements in turnover and outcome. Since the foundation of EUCOPET Freek celebrates great sales successes. The export rate "jumped"
almost from a "standing position" up to 35%, upward tendency. The number of customers increased tenfold. From 1997 to 2000 the turnover grew
more than 130%. All co-operation partners succeeded in catching up with the sector's world-wide market leaders and partially even in overtaking them.
Already in 1999 awarded as a particularly innovative company by the initiative TOP100 NRW, Freek offers a large part of its gained co-operation know-how in seminars
and publications to other interested parties. |
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Friedrich Freek GmbH
Sudetenstraße 9, D-58708 Menden
Germany |
© 2008 Freek
www.freek-heaters.com |
Tel +49 - (0) 23 73 - 95 90-0
Fax +49 - (0) 23 73 - 95 90-30
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