Gisbert Schulze, SSB
Release Date: 2009-08-25
Why did you decide to enter the wind industry, and what attracted you to SSB?I joined the company in January of this year because I found the wind industry very exciting and I can personally provide the management skills the company needs in both the technology and international business focus.
The rapid growth of the wind industry in recent years has created several challenges for companies operating in this sector, what are the main challenges for you here as a manager?
You need to manage the growth of both the organization and the customer base while keeping pace with the continually innovating technology.
How international was SSB five years ago, and where are you positioned today?
The company was not international at all; we were focusing on a few wind turbine manufacturers here in Germany and that was it. Today, our business in China alone is larger that our business in Germany, and we also have important customers in India and Korea. Germany is a minor share of our business now so there has been a major transformation in only three years.
What has been the secret to the success of SSB in going global?
First of all, our product and know-how are the key business drivers. We have a long history of producing electrical pitch systems and we have a highly experienced application engineering team that is able to adjust our pitch applications to any given turbine design, which is exactly what is required for most emerging OEMs in the world.
Of course, innovation and new technology development are essential to stay at the leading edge of technology, how are the R&D activities structured at SSB?
Our R&D activities are structured around three different departments. First of all, our application engineers who develop the actual application for our customers are involved in various projects in parallel any time. The second department is our research technology group which focuses on new product development and our innovation pipeline, while our third group is composed of senior engineers who are in charge of reviewing results of the application group and work on special projects as well as qualifying our suppliers in China.
Can you tell us some more about your special projects and the indication they give about where the industry is heading?
Our strategic projects are oriented towards where we think the market is going to develop in the next five years: new products that fulfil future requirements. We have identified a few strategic demands that we use to define the products of the future.
SSB works with a wide range of wind turbine manufacturers, do you strive to develop in-depth R&D relationships with your main customers?
In the beginning you have to have your own ideas and at a certain stage we pick certain customers to whom we present these ideas in order to develop prototypes together. The right partner depends on the particular product; they should be representative of a certain group of customers or products and you need to have access to the best people to work with.
SSB decided to enter China in 2005 and your first facility was opened in 2006. At that time, the Chinese wind industry was much smaller. What was the vision behind the decision to enter the Chinese market?
General Electric, a big customer of SSB, went to China and asked us if we would be interested in joining them as a supplier, so this was really the trigger for entering the market. We started a small operation in Qingdao and looked into the market. Then our management clearly saw what was going to happen in the next three years so SSB prepared for the growth and as of today 150 of our 360 employees that are dedicated to our wind activities are located in China.
How are you positioned towards cooperating with Chinese companies on R&D projects, which could both be integral to your success and an intellectual property risk?
We are worried about intellectual property risks. Therefore, we develop new products exclusively in Germany with a select number of exclusive partners. In China our engineering group primarily focuses on customer applications.
When you took up this position in January you must have travelled to China to see SSB’s operations firsthand. What was your impression of the organization there and what did you feel SSB needed to focus on there in the coming years?
I was pretty amazed by the operation and how well it was run. The managers who set up our operation in Qingdao had focussed heavily on operations. Our focus for the first six months was on identifying key talents to build up a second line of operational management that is able to cope with the growth we are facing. Senior managers are more and more focusing on more strategic tasks.
Entering the market on the back of GE guaranteed a first customer in China, but since then domestic manufacturers have over taken much of the Chinese wind turbine market and are destined to be your key customers of tomorrow. How has cooperation with Chinese wind manufacturers developed over the years?
Very quickly, it was our reputation that brought us in contact with our customers. Keeping those customers is our primary focus now.
What are the main trends that you see in the Chinese wind industry?
When it comes to the product its reliability that drives the business because our systems are critical for the reliability of the whole turbine. Beyond the product it’s the level and quality of customer service, that is crucial. And last but not least: it is all about growth.
SSB is primarily still targeting the high-end segment of the market while many Chinese wind turbine manufacturers are operating at a different cost competitiveness level; is this a game you want to play in the future or is it difficult to compete with Chinese alternatives in this growing market segment?
That is a good question. It is something that we have been looking into and we are trying to determine what is going to happen in the market. This is something of a strategic topic to us so I don’t want to put it into print.
Would you be able to compete in this more competitive market segment with 100% SSB product or would a joint venture with a Chinese counterpart offering a manufacturing cost advantage be an option?
This is something we do on our own; it is at the core of our business. Personally I try to avoid joint ventures as they are difficult to manage.
Today, you have one third of your people and 50% of your turnover in China; what are your expectations for the development of the role of China in the growth of SSB in the future?
In the near future we foresee more growth in china as well as a return of growth in the European and North American markets in the next year, so we may end up with a 50/50 type of business but as you are well aware China is growing much faster than the rest of the world.
As you stated, China is a high growth market. Does SSB have the capacity to work new customers while supporting the growth ambitions of existing clients?
Absolutely: we can grow. We have been growing in step with the industry growth over the past several years and there is potential for even more.
What is on the top of your agenda in China right now, and what will be your priorities in the coming years?
Right now the focus is on fulfilling our customer expectations and pursuing operational excellence since in a fast growing organization.
It is important that our customer understand we offer the best in world-class application engineering for wind turbine pitch control; we can offer pitch systems and WTG control systems for any turbine in China and we are more than glad to do so. This is the core of our business and we are more than happy to work with established and emerging OEMs alike on customizable, high-quality control systems: SSB has the largest install base with over 12,000 turbines all over the world producing electric energy.
| Company: | SSB |
| Position: | Managing Director |
| Country: | Germany |