An Exclusive interview on the road to K 2025 with Mr. Andrea Carta, Managing Director Molding Machines at Kurtz Ersa, Germany Alone Can’t Keep the Whole World Happy
As a medium-sized company, what strategies do you use to identify long-term growth potential despite the economic challenges?
The Kurtz family and the management have taken care to strengthen the Group through three pillars that also function independently of each other: Electronics Production Equipment, Molding 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 mainstay. It is extremely important for us not to be dependent on one business or one sector. Although there are many joint projects between our three divisions, each division runs its own business independently.
How important is it to be close to the customer, especially in the current situation?
In view of the many multinational crises in the recent past, we have been doing a lot to expand our global footprint for several years now. We established our own production sites outside Germany at an early stage – in the USA, China and, last year, in Mexico. As we produce there, we are less susceptible to customs duties. Apart from the geopolitical advantages, I have always been of the opinion that you can’t make the whole world happy from Germany. Customer requirements differ from country to country. That’s why it’s important to be very close to the customer in order to better recognize and serve 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 is the case in countries with a high level of automation. It is incredibly important to bring 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?
We have already come a long way in Europe. Strong regulation here means that many products and processes are being developed that benefit the environment and sustainability. This is also an advantage over the competition. Because if you don’t have these requirements, you won’t incorporate them into your products. Sustainability now has a high priority in China. For us as a mechanical engineering company, China is therefore a market for sustainable solutions. I would see Japan and Korea at about the same level as Europe. Southeast Asia is not quite there yet. In South America, the idea of resource conservation is not yet very well developed. I see developments in the USA as problematic. Politics is very erratic, depending on which president is in office at the time. This creates a great deal of uncertainty as to the extent to which sustainability is being pursued there or not.
How can greater efficiency help to reduce the use of plastics?
The key to greater efficiency is the process. We are leaders in this area in the German plastics machinery industry. We know the complexity of the processes and can deal with them. Understanding the process and having the right machines brings two major advantages. On the one hand, the precise use of material already brings 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 material. On the other hand, we have the processes that ensure that less waste is produced. These are the two levers. As far as the processes are concerned, we are still much further ahead than the Chinese.
Where does the circular economy currently stand?
The circular economy is a process that will take a long time. European mechanical engineering is still at the beginning. 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 plastic. I see it from a business perspective: Germany is further ahead than everyone else. Wen have a unique selling point here and we should use it to generate more business. Is everyone going along? No, not everyone is going along. In many countries, recycling is not yet practiced at all. But many other countries are recycling more and more. I believe that the circular economy needs further support and demands. We are on the right track, both in terms of the environment and industry. We are developing a lot of technologies – because we are a pioneer, this will benefit our business around the world.
What potential does artificial intelligence have?
AI will change our business massively. Our machines generate billions of pieces of data over their life cycle. And data is what an AI needs, what it can learn from. With the help of AI, for example, we will be able to produce and process recyclates better. The AI will learn which material fluctuation should be treated and how. You could argue that the process sovereignty that we have in Germany will no longer be necessary. That is only superficially true. In order to maintain process sovereignty, we have to invest more than everyone else. We have to make our machines AI-capable as quickly as possible. Otherwise, others will come and then it will be too late for us.
The motto of K is very self-confident: “The Power of Plastics”. What is this power?
Plastic has made the world a better place and will make it even better in the future. What plastic makes possible, no material has achieved before – except perhaps metal. Plastic is the basis for the quality of life we have become accustomed to. The world is no longer conceivable without plastic. It has disadvantages, just like any other material. Is everything that is made with plastic good? No, it is not. But in some areas, it is the best possible material. Should we use less plastic packaging? Probably yes. But plastic is fundamentally extremely valuable. That’s why I think the self-confident motto of the K is very good.
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