Flexibility, Professionalism, Pragmatism and Friendliness

Stephan Meindl, Graduate Engineer (University of Applied Sciences), the new Executive Chairman of HORN Glass Industries AG, describes the developments in the glass industry and in which ways HORN will react after the former executive chairman, Mr Maximilian Sollfrank, was bidden farewell in December 2014, his successor, Mr Stephan Meindl, took up his activities at full speed. He has a clear idea of the future development of HORN Glass Industries which is ultimately influenced by the market itself.

Two Main Pillars: Float Glass and Container Glass

Future prospects within the glass industry look to be good, whereas global demand is expected to increase. In 2013 approx. 177 million tons of glass were produced (source: Glass Global Consulting GmbH). For 2016 a demand for 200 million tons is predicted, corresponding to an annual increase in production of about 4.5 %. In fact, sales of beverage bottles increased by about 4.4 % in the first three quarters of 2014 (source: BV Glas), the domestic market growing a bit more strongly by 4.4% compared to sales abroad which increased by 4.2%.

The field of container glass for foods is currently facing a trend reversal. “There is no industry which currently faces a change as dynamic as that in the food industry. The way in which we prepare, serve and eat our food distinctly reflects our lifestyle,” states the renowned trend scout from the Future Institute, Hanni Ruetzler. A clear trend in the food sector: values such as quality and pleasure are coming to the fore and are replacing the hunt for the lowest price.

This change of consumer attitude also brings about a major change for the companies in the food sector. In the future they will offer more premium quality products. The packaging must not be disregarded here, since it is an essential sales argument in a more than saturated market. So it does not come as a surprise that in these times of change the companies rediscover the material glass. For there is hardly any other packaging material which conveys the quality and the pleasure derived from its contents as easily and credibly as glass does.

Thus the demand for container glass and packaging glass will also increase respectively in the future. HORN Glass Industries AG wants to consolidate its market shares in glass melting furnaces in existing markets and break into new, developing markets.

The second main pillar of HORN is the float glass sector. The float glass industry is at a very low level. Few investments are made in new production facilities, so there will only be moderate growth in 2015. “However, we expect to have a slice of the pie,” says Meindl. As there are only a few companies active worldwide, this goal should be achieved. Market information suggests that HORN Glass Industries AG is considered to be one of the few professional suppliers for turn-key float glass production plants. HORN offers the complete range starting from batch charging through utilities up to packaging. Moreover customers may expect the complete project management and architectural planning.

HORN’s customers in the float glass industry usually are “free” glass manufacturers, but HORN has also managed to make close contacts to established, internationally active float glass corporate groups. According to the executive chairman, the future target is cooperating more closely with the global players of the float glass industry. The fact that HORN manufactures the melting furnaces, the tin bath and the automation in-house will sup- port these plans.

Markets and Competitive Pressure

The global markets fluctuate considerably but in general HORN Glass Industries AG achieves 75% of its turnover abroad. Currently the EU and Asia are the key markets. Also Latin America, e.g. Brazil, plays an important role. “We are also pleased that the demand from the Middle East is increasing again,” says Meindl.

But Meindl sees strong competitive pressure in the newly industrializing countries. For a high-tech supplier it is difficult to compete. But HORN Glass Industries AG has two solutions for this problem: in-house manufacture and global locations. Due to the high percentage of in-house planning and manufacture, HORN is, for instance, in a position to adapt the heating system or the electric control of the glass melting furnaces and to maintain attractive prices. Moreover, services can be purchased directly and locally through global locations in China, Malaysia, India and the Czech Republic. “With the maximum possible flexibility, professionalism, pragmatism and friendliness, HORN will continue to offer high-tech equipment at a good price,” the executive chairman reports.

Networking and Internationalization

Germany is the world champion in exports and strongly interconnected and internationalized especially in the fields of electronics and mechanics. Locations all over the world, agencies abroad and joint ventures are increasingly becoming the focus of the business models of German companies. HORN will follow this development and consolidate and expand its locations worldwide in order to be closer to the customers.

Apart from that, more agencies will have to be set up in countries with a strong glass industry. HORN is already represented in many countries in the world. In Meindl’s view, cooperating with other companies in order to offer complete production facilities and extensive service to the glass industry is a model for the future. HORN is already represented in a strong partnership within the Container Glass Alliance and can offer complete glass factories together with its partners.