Business Chief Europe — November 2018

EUROPE EDITION NOVEMBER 2018 europe.businesschief.com

TRANSFORMING SUSTAINABILITY THROUGH TECHNOLOGY

Sirius Minerals

SUSTAINABLE EXCELLENCE IN MINING

PHOTO © TOM TOIKKA

A sustainable journey to becoming

a smart city HOW THE CITY OF HELSINKI LEVERAGES TECHNOLOGY TO BECOME A DIGITAL POWERHOUSE

City Focus

TOP 10 richest people in Europe

TALLINN A TECHNOLOGYDRIVEN BUSINESS HUB

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WELCOME

H

ello and welcome to November’s Europe edition of Business Chief, bringing you the latest news analysis and insights from the region.

For our cover story this month, we sat down with Sami Aherva, Head of Stara Logistics, and, Ilpo Laitinen, Head of Stara Administration, to see how the City of Helsinki is being recognised on a global stage as both a smart city and a functional capital.

Today’s Chief Security Officers (CSOs) and technology executives face an unprecedented challenge: by 2021, global cybercrime damages are expected to cost $6trn annually by 2021. Business Chief caught up with Optiv Security’s Simon Church to learn how its helping executives navigate this field.

Elsewhere, Dale Benton speaks to Charlotte Finn, VP Global Strategic Relations at Salesforce.org, to learn

how the firm is using innovative technology to enable social good.

For our City Focus, we’ve zoned into the thriving Estonian capital of Tallin. Frequently hailed as one of the most digitally advanced societies in Europe and an ideal European hub.

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We also take a look at the top 10 richest people in Europe and how they earned their billions.

On top of this, you’ll also find exclusive insights from industry giants like Sirius Minerals, Global Switch, Scandic Hotels, Prometeon Tyre Group and more. We hope you enjoy this month’s bumper issue and, as ever, you can find us across social media @Business_Chief.

Enjoy the issue!

Laura Mullan. laura.mullan@bizclikmedia.com e u r o p e . b u s i n e s s c h i e f. c o m

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CONTENTS

City of Helsinki: a smart city, a functional capital, a sustainable future

12 30 SECURITY

A CYBERSECURITY GUARDIAN YOU CAN TRUST WITH YOUR DATA

42 SALESFORCE.ORG EMBRACING INNOVATIVE TECHNOLOGY TO ENABLE SOCIAL GOOD AROUND THE WORLD

CITY FOCUS

00

54 66

TOP 10 RICHEST PEOPLE IN UROPE

CONTENTS

82 Siriuseconomic Minerals and

sustainable excellence in mining

116 100 AEX Gold

Mining for

the future

90 A QUESTION OF TRUST

130

152

Scandic Hotels

ARBOREA Hotels

Digital transformation for sustainability, health and guest experience

Prometeon Tyre Group manufacturing efficiency through operational

excellence

168

PROVIDING UNFORGETTABLE EXPERIENCES WITHIN A NEW HOTEL CONCEPT

182 LONDON BOROUGH OF WALTHAM FOREST COUNCIL

Creating value through innovation

12

City of Helsinki: a smart city, a functional capital, a sustainable future WRIT TEN BY

L AUR A MULL AN PRODUCED BY

LE WIS VAUGHAN

NOVEMBER 2018

CONSTRUCTION

13

The Market Square in front of City Hall is perhaps the heart of Helsinki. Stara’s street maintenance vehicles wash it every day after the Market Square quiets down for the day. Photo Š Veikko Somerpuro e uro pe .busi ne ssc hief. com

H E L S I N K I C I T Y C O N S T R U C T I O N S E R V I C E S , S TA R A

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Blending digitisation and an environmentallyconscious approach, the City of Helsinki is no longer just a European powerhouse. Today, it’s also being recognised on a global stage for its sustainable smart city initiatives.

E

ntwining spectacular Baltic bays, a stylish design scene and a dependable economy, the Finnish capital

of Helsinki regularly tops the leaderboard as one of the world’s most liveable cities – and it has the numbers to back up this claim.

For the past decade, the capital’s population has grown by more than 1% on average every year and, by 2050, Helsinki expects to add an extra 250,000 residents. As other cities struggle to accommodate swelling populations in limited urban spaces, the City of Helsinki has devised a meticulous plan to ensure that it remains a world-class location for businesses, residents and visitors alike.

NOVEMBER 2018

Stara is in charge of approximately 70% of the public areas in Helsinki. Washing statues in the spring is just one of Stara’s tasks. Photo © Veikko Somerpuro

CONSTRUCTION

15

e uro pe .busi ne ssc hief. com

H E L S I N K I C I T Y C O N S T R U C T I O N S E R V I C E S , S TA R A

THE MOST FUNCTIONAL CITY IN THE WORLD ‘Functional’ is a term that is synonymous with Helsinki but, as part of its 2017-2021 strategy, the Nordic capital aims to take this one step further by becoming the most functional city in the world. Together with residents, the capital is rallying to create coordinated, efficient and humane public services which will make everyday life easier for citizens.

Helsinki City Construction Services, Stara, undoubtedly has a pivotal role to play in this roadmap, delivering construction, environ16

mental management and logistics services to the capital. With almost 1,400 employees and hundreds of utility vehicles and other machines, this municipal enterprise is responsible for maintaining and constructing the streets, parks, natural areas and city-owned buildings in Helsinki. As the city pushes ahead with its five-year plan, Sami Aherva, Head of Stara Logistics, points out that whilst technology is a vital tool, the primary focus will always be on the needs of citizens.

“The strategy hopes to make Helsinki competitive on a global scale,” he explains.

“It’s a pretty bold aim. We don’t want to be among the top 10; we want to be the most functional city in the world. We are going to remodel our services and enhance the lives NOVEMBER 2018

Photo © Tom Toikka.

Esplanadi park is the most well-known of the most prominent parks that Stara looks after in Helsinki.

Photo © Veikko Somerpuro

CONSTRUCTION

Stara’s city engineers discuss their plans.

Photo © Juho Huttunen / Duotone

of our citizens through technology. However, this will be based on citizen demand; we’re going to make sure that we listen to every single inhabitant to create a meaningful city structure.”

SMART CITY POWERHOUSE Digitisation goes hand in hand with the City of Helsinki’s five-year strategy, and as such the capital has also ramped up its efforts to become a smart city. When the European Parliament published its findings on 468 smart city projects in Europe in 2014, Helsinki was ranked in the top 10 smart cities, alongside e uro pe .busi ne ssc hief. com

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H E L S I N K I C I T Y C O N S T R U C T I O N S E R V I C E S , S TA R A

Amsterdam, Barcelona, Copenhagen, Manchester and Vienna. But what exactly propelled the Nordic capital to the top of this report? The city was praised thanks in part to Forum Virium Helsinki – an innovation unit within the City of Helsinki which develops smart city technologies in partnership with other units and residents – as well as the opening up of municipal data and decision-making data.

“We want to be the most functional city in the world. We are going to remodel our services and enhance the lives of our citizens through technology”

By looking at the numbers behind Helsinki’s economy, education system, 18

health services and more, open data

— Sami Aherva Head of Stara Logistics

was seen as the first step that the capital needed to take to become both

E X E C U T I V E P R OF IL E

Sami Aherva Sami Aherva, Head of Stara Logistics, is senior level director. He is an experienced Director of Logistics with a demonstrated history of working in the government administration industry and is skilled in procurement, transportation, R&D, quality management, and organisational leadership.

A strong operations professional, Aherva qualified at the University of Helsinki and Aalto University Executive Education.

Photo © Stara Communications

CONSTRUCTION

CLICK TO WATCH : STREET REBOOT2 HIGHLIGHTS — STARA’S BIG DATA CHALLENGE 19

a functional and smart city. Ilpo Laitinen,

our own services. We are at that stage

Head of Stara Administration, argues

where we are now developing our

that this accessible data has not only

services and engaging citizens to be

made the city more transparent but it has

a part of the process.”

also helped to foster citizen engagement.

“Through the open data project, one

By creating participation engagement programmes and making residents

of the data sets that you can access is

a part of this journey, the Nordic capital

the city’s decision-making data which

isn’t implementing technology for

helps to make this an increasingly

technology’s sake but rather is implem-

transparent process,” he explains. “At

enting digitally-savvy public services

the same time, Helsinki also wanted to

which are community based. “Our

create an open source services platform

coders follow certain codes of conduct

whereby companies, SMEs and even

and guidelines, to ensure that they’re

residents can work together to develop

making services based on citizens’ e uro pe .busi ne ssc hief. com

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The articulated steering and location of the cabin in the front frame p with excellent working conditions.

tal management and r seasons, especially expensive.

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H E L S I N K I C I T Y C O N S T R U C T I O N S E R V I C E S , S TA R A

The Market Square in front of City Hall is perhaps the heart of Helsinki.

Stara’s street maintenance vehicles wash it every day after the Market Square quiets down for the day. Photo © Veikko Somerpuro

22

needs, rather than experimentation,”

our smart city initiatives that can be

Laitinen adds.

scaled up to other parts of the city as

But what does this mean for daily life

well,” Laitinen notes. “A number of

in Helsinki? What impact are these

infrastructure services have been and

strategies having? To see this first

will be automated. Solar panels, smart

hand, it’s best to take a look at Kalasa-

metering and smart remote control

tama, a former harbour and industrial

systems have also been embedded here.

area in Helsinki that has been trans-

Additionally, the district has also tested

formed into a hotbed of innovation.

a unique vacuum waste collection

The City of Helsinki has been experi-

system whereby waste collection points

menting with everything from social

transport waste to waste management

and healthcare services to waste

facilities via underground pipelines.”

management, energy solutions and

Additionally, the City of Helsinki and

even smart parking. “It’s a testbed for

Stara have encouraged locals to ‘Reboot

NOVEMBER 2018

CONSTRUCTION

“Our coders follow certain codes of conduct and guidelines, to ensure that they’re making services based on citizens’ needs, rather than experimentation” — Ilpo Laitinen, Head of Stara Administration

the City’ by hosting a series of hackathon events. This has led to the creation of ‘helper’, an app which provides optimal routes for Helsinki winter maintenance crews, as well as Call Plate, an automation technology which alerts car owners to when they have parked in restricted places.

A GREENER WAY OF LIVING Helsinki has set itself bold targets for the next five years but it doesn’t stop there. On top of this, the capital has committed to an ambitious goal to

E X E C U T I V E P R OF IL E

Ilpo Laitinen Ilpo Laitinen, Head of Stara Administration and Adjunct Professor is both a senior level director and a researcher, demonstrating his ability to work across the boundaries of academia and the public sector.

The work that he undertakes in both of these realms involves looking for new solutions to improve the quality of the public sector in Helsinki, a city that is among the world leaders in providing services to its people.

He is internationally experienced both in science and management, including public administration and public management, public value of services, digitalisation of public services, smart cities and innovation management.

Photo © Stara Communications

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H E L S I N K I C I T Y C O N S T R U C T I O N S E R V I C E S , S TA R A

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Photo © Veikko Somerpuro NOVEMBER 2018

CONSTRUCTION

C OMPA N Y FA C T S

• Helsinki aims to become carbon neutral by 2035 • In order to become carbon neutral by 2035, Helsinki needs to reduce its CO2 emissions by 1.62% every year • Helsinki wants to become ‘the most functional city in the world’ as part of its 2017-2025 plan • In 2017, Helsinki had a population of 629,512 and, by 2050, the city expects to add an extra 250,000 residents.

e uro pe .busi ne ssc hief. com

25

H E L S I N K I C I T Y C O N S T R U C T I O N S E R V I C E S , S TA R A

26

Due to the slush on Finnish streets in wintertime, gravel is spread onto streets throughout winter to combat slippery conditions. Stara machinery collecting chips on a busy route as winter turns to spring. Photo © Veikko Somerpuro

become completely carbon neutral by

Stara has also taken up the fight

2035. In Helsinki’s metropolitan area,

against climate change and has

the electrification of buses has already

switched to biofuels to power its non

begun, with an aim to have over 100

-road vehicles. “Stara is a cleantech

electric buses in operation by 2020.

leader,” observes Aherva. “My person-

The city has also been a testing plat-

al goal is that I would like to robotise the

form for new smart mobility solutions

whole fleet of vehicles and processes

such as the Mobility-as-a-Service

we have. We are also using several

model, which hopes to make car own-

means of clean technology like biofuel,

ership unnecessary by promoting

electric, hybrid and fuel cell. In order to

existing services like ride-hailing, trip

achieve our 2035 goal, we need to

planning and car-sharing.

reduce our CO2 emissions by 1.62%

NOVEMBER 2018

CONSTRUCTION

City of Helsinki executives rode on the eco-friendly Stara truck that runs on biofuel in the 2018 Pride parade. The parade had a record turnout of 100,000 participants. Photo © Akifoto

Hackjunction was a success for Stara. The team to ultimately win the event grand prize of 20,000 euros was one of the teams that participated in the Stara big data challenge. Photo © Teemu Heljo

“We are trying to solve real problems for real people in Helsinki” — Sami Aherva, Head of Stara Logistics

every year. We’ve done that by using

just yet, but by creating an ecosystem

biofuel but to bridge the gap we also

that fosters R&D and innovation, Stara

need to look at new technologies.”

hopes to make this sector greener and

HOTBED OF INNOVATION

more efficient.

Providing a platform for Vilakone Oy

A key part of Stara’s daily business

(a leading environmental management

involves using snow ploughs, city

machinery firm in the country), Stara

sweeps and other environmental man-

hopes to help the company develop and

agement machinery to ensure that the

investigate the use of energy efficient

city can continue to run regardless of

machinery. “We are providing Wille with

the whether it’s sunny, rainy or snowing.

the environment to develop market-

This industry may not be fully developed

ready products that may be electric or e uro pe .busi ne ssc hief. com

27

H E L S I N K I C I T Y C O N S T R U C T I O N S E R V I C E S , S TA R A

Photo © Veikko Somerpuro

“It’s not just about data: it’s about better decisions and better approaches to city issues. When it comes to our services – be they technical, street maintenance, construction or logistics” — Ilpo Laitinen, Head of Stara Administration

28

hybrid,” observes Aherva. “Once they have the ready-for-market machinery in place they can then also sell it everywhere. This showcases our role as a development platform for innovation and new energy efficient innovations.”

As Helsinki’s 2021 deadline inches closer, Aherva says that the city will not only transform its processes and technologies, it will also “change the whole culture of the city.” He says: “The city’s services are going to transform.

It’s a game-changing type of approach.

NOVEMBER 2018

CONSTRUCTION

29 Ilpo Laitinen, Head of Stara Administration (left), and Sami Aherva, Head of Stara Logistic, examining Stara machinery that utilises digital technology and favours eco-friendly solutions. Photo © Stara Communications

The role of the public and private sectors

have. We want to collaborate with these

will no longer be black and white: it’s

innovators and networks to renew and

more collaborative. Helsinki is the

improve our city. This program is very

platform that many companies need

much about social capital; it’s about

to try something new.

improving the quality of life for our resi-

“We are trying to solve real problems

dents and our companies.”

for real people in Helsinki,” he concludes.

“It’s not just about data: it’s about better decisions and better approaches to city issues. When it comes to our services – be they technical, street maintenance, construction or logistics – we don’t want to deliver services the way we always e uro pe .busi ne ssc hief. com

LEADERSHIP

SECURITY

30

A CYBERSECURITY GUARDIAN YOU CAN TRUST WITH YOUR DATA

Global cybercrime damages are expected to cost $6trn annually by 2021 and as cybersecurity tools increasingly flood the market, Optiv Security is helping technology executives navigate this critical field.

WRITTEN BY

NOVEMBER 2018

L AUR A MULL AN

31

e uro pe .busi ne ssc hief. com

LEADERSHIP

T

oday’s Chief Security Officers (CSOs) and technology executives face an unprecedented challenge. As Europe’s business scene is shaken up

by a wave of new technologies like artificial intelligence

(AI), machine learning and blockchain, more and more cybersecurity threats have also entered the fray.

From phishing to hacking, trojans to malware, today’s adversaries are malicious, creative and unrelenting.

Swathes of cybersecurity tools are now available to tackle this, but it can often be difficult to ascertain how much an organisation should spend on cybersecurity or which technologies are most vital. Indeed, until recently, many CSOs and technology executives found it hard 32

to even get a seat at the table at an executive level to make these decisions.

Now, as the cybersecurity industry has gained more momentum (and as recent large-scale hacks have gained more airtime) more and more organisations are recognising the benefits of abandoning a reactive approach to cybersecurity in favour of an ‘inside-out’ risk-centric method, driven at a corporate level. In fact, this is where Optiv Security, a leading security solutions integrator, has made a lasting impression on the market.

Simon Church, General Manager and Chief Executive Vice President, Europe, explains that Optiv helps customers navigate the proliferation of tools on the market so that they can plan, build and run successful cybersecurity systems. “The biggest challenge facing CSOs and technology executives today is what I would call the increase in noise,” Church observes. “A decade NOVEMBER 2018

“Ultimately, the value of an organisation can be severely degraded by a security event. Would you as a consumer want to be doing business with an organisation that can’t look after your data or your payment card information?”

— Simon Church, General Manager and Chief Executive Vice President, Europe, Optiv Security

33

e uro pe .busi ne ssc hief. com

LEADERSHIP

ago, there were only a handful of viruses

security technology manufacturers,

and so there were very few cybersecu-

Optiv acts as a ‘one stop shop’ for com-

rity technologies to deploy. Now that’s

panies who want end-to-end security

changed: we have huge numbers of

solutions. With global expertise and

viruses and malware looking for gaps

leading cybersecurity partnerships,

wherever they possibly can. The work-

Church highlights that this is just one

place environment is also more open

way in which the cybersecurity company

as people are bringing smartphones,

stands out from the crowd. “Today,

laptops or tablets in and out of the

technology executives are looking for

organisation. There’s a growing threat

a company to help them understand

and that means the cybersecurity

their systems, their risks and how they

market is growing too.”

can balance this against their budgets

Maintaining world-class partner34

ships with more than 350 leading

NOVEMBER 2018

and corporate strategies,” he says.

“They also require someone who can

CLICK TO WATCH : ‘OPTIV PERSPECTIVES: SIMON CHURCH’ 35 simply communicate with their manage-

Knitting together thousands of

ment, their board and their users. With

potential products and technologies,

Optiv, they only need one partner.

Optiv is able to offer cybersecurity in

“We really understand this land-

the form of managed services for compa-

scape. We have a high level of exper-

nies who perhaps could not afford to

tise and talented employees, as well

maintain an inhouse security team of

as lots of long-lasting trusted partner-

their own – and this has proven to be

ships with cybersecurity companies.

a success. After celebrating a turnover

It’s beneficial for our clients because,

of around $2.5bn last year, the North

as the business saying goes, there’s

American firm is now turning its attention

‘only one throat to choke’. All in all,

to the European market so that it can

we’re making a relatively complex

offer these services to Europe-based

subject as simple as possible for our

firms or US businesses which have

clients and we’re taking them on that

expanded into the region. “Today, we

journey of security improvement.”

count nearly two-thirds of Fortune e uro pe .busi ne ssc hief. com

LEADERSHIP

C OMPA N Y FA C T S

• According to Gartner, Western Europe is the largest corporate security market outside of North America • Corporate security spending is set to increase to around $32.6bn by 2021 • Between 2017 and 2021, there will be a 27% increase in corporate security spending

36

1000 companies among our custom-

strives to execute the most effective

ers,” says Church. “A lot of these

solution, taking its clients’ priorities,

organisations want to expand and

values and budget into account. To this

want a partner who can provide these

end, Church asserts that his customers’

services across Europe. We certainly

successes are also Optiv’s successes.

think there’s a huge market here.”

Regardless of location, however, one

“I think it’s key that we understand our customers and the companies that

thing remains consistent at Optiv. As

they’re doing business with,” he notes.

one of its key values, the company stre-

“Ultimately, we need to understand what

sses that it will work shoulder to shoulder

they’re trying to achieve so that we can

with its clients to understand their

develop a security strategy that aligns

needs regardless of the location. By

with this goal. In cybersecurity, I often

understanding the bigger picture, Optiv

think that companies throw the latest

NOVEMBER 2018

technology at a problem whereas I think it’s really important to have a much deeper understanding as to what these technologies truly mean in context. Overall, I would say the key challenge, what keeps you awake at night, is making sure that we’re applicable to the marketplace and that we have the right engagement with our clients.”

On top of Optiv’s impressive technology roster, Church is also keen to point out that cybersecurity isn’t just about having the latest gadgets and tools. Harking back to the cybersecurity threats that have dominated the headlines of late, he says that one of the most important considerations for CSOs

“If you can take that secret sauce which Optiv developed in the US and apply it with a European flavour then we’re confident we can do well in the market” — Simon Church, General Manager and Chief Executive Vice President, Europe, Optiv Security

and technology executives today is a simple one: education.

“You just have to look at the news to see that every day there are high profile breaches,” he reflects. “A lot of it has to do with education: the education of employees, regular testing and making sure that they recognise the implications of clicking on a particular link, for example. Ultimately, the value of an organisation can be severely degraded by a security event. Would you as a consumer want to be doing business with an organisation that can’t look e uro pe .busi ne ssc hief. com

37

LEADERSHIP

38

NOVEMBER 2018

after your data or your payment card information? It’s vital that employees understand how critical security is to their roles and the trust that their clients have with them.”

Outside of North America, Western Europe is the largest market for corporate security, according to reports from Gartner.

The global research firm forecasts total spending to grow to around $32.6bn by 2021, up 27% from 2017. Backed by private equity giant KKR Group, it seems Optiv is well positioned to tap into this booming market. “Our goal is to be the number one security services integrator globally,” Church says. “I think overall if you look at what we’ve been doing from a US perspective, every week, month, year, we’re winning awards, from vendor awards to industry awards. So, if you can take that secret sauce which Optiv developed in the US and apply it with a European flavour then we’re confident we can do well in the market.”

e uro pe .busi ne ssc hief. com

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TECHNOLOGY

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SALESFORCE.ORG EMBRACING INNOVATIVE TECHNOLOGY TO ENABLE SOCIAL GOOD AROUND Hentur sum ipsapero et es THE WORLD andendant que et aut mi, temut es exerrovid mi, qui bea By connecting noncommolut et apienecepti que profits and educational corerum hil idus, torecti busape institutionsnon to innovative con perrovidio technology, Salesforce.org creates a better world for tomorrow WRITTEN BY

DA LE BENTON

NOVEMBER 2018

43

TECHNOLOGY

T

echnology, when used for good, can truly change the world. This is the core belief of Salesforce.org, a social enterprise that plac-

es the greatest technology the world has to offer into the hands of non-profits and educational institutions in order to enable them to connect their organisations and accelerate their impact. Salesforce.org is defined by three key pillars, technology, resources and people. These key pillars represent the ways in which Salesforce.org can deliver on its vision of empowering non-profit organisations and educational sectors all over the world.

“Technology can do the most amazing things

44

when used for social good, but it has to be applicable and appropriate for a non-profit to be able to use,” says Charlotte Finn, VP Global Strategic Relations. “What we’ve done is developed technology specific for those area. So, we’ve taken fundraising technology, volunteer management technology, donation management technology and student management technology and really tailored them to our market. This approach has made a significant difference.”

Formally known as the Salesforce Foundation, Salesforce.org leverages the Salesforce Customer Relationship Platform (CRM) and made it accessible to non-profit organisations and developed its own non-profit specific technology solutions. What this does is allow some of the smaller

NOVEMBER 2018

45

“ Every single year, we surpass our volunteering targets because we are an organisation made up of employees who are passionate about the real difference each and every one of them can make” — Charlotte Finn, VP Global Strategic Relations

e uro pe .busi ne ssc hief. com

TECHNOLOGY

non-profit organisations to access and leverage the same technology as some of the largest non-profit or corporate companies in the world. Finn points to Child’s i Foundation, a foundation designed to “rewrite the script” for all children in orphanages across Uganda.

“Childs i Foundation was founded by one person with a vision of simplifying the process of tracing blood relatives for orphaned children and reconnecting them with their families,” says Finn.

“What she did was build a case management system using Salesforce 46

CRM to track a child’s family then work with the Ugandan government and local social services top accelerate the flow of adoption in the country. It was really incredible.”

Child’s i is a perfect example of the way in which Salesforce.org delivers on its vision but in order for the foundation to be able to benefit and lever-age Salesforce’s technology, it called upon Salesforce.org’s second key pillar, resources. As a foundation, Salesforce.org is a granting foundation and grants funding specifically in the areas of workforce development and in education. Finn believes that in order to drive technology and innovNOVEMBER 2018

“ Technology can do the most amazing things when used for social good, but it has to be applicable and appropriate for a non-profit to be able to use” — Charlotte Finn, VP Global Strategic Relations

CLICK TO WATCH : ‘HOW GEORGETOWN CREATES A PERSONALISED STUDENT EXPERIENCE’

ation, the organisation must start

made available and this is just in the

enabling the next generation to have

UK alone. We have to think about how

incredible opportunities to do so.

we can fill them,” says Finn.

Across its entire global portfolio,

This is where the organisation’s

Salesforce.org has granted more than

third pillar comes into play, people.

$220mn into non-profit and education-

Salesforce.org provides every single

al organisations to build what Finn des-

employee with seven day’s volunteer-

cribes as future ready programs. These

ing and actively encourages each

future ready programs will create the

employee to go out and volunteer with

next generation of technology enabled

non-profit organisations to train and

individuals all around the world.

develop the skillset and capabilities

“Take the UK as an example: In the

of individuals. To date, the organisation

next few years there are close to

has registered more than three million

745,000 IT jobs that are going to be

hours of volunteering work worldwide. e uro pe .busi ne ssc hief. com

47

TECHNOLOGY

“Every single year we are asking ourselves, how are we going to continue this and improve and give more time?”, says Finn. “Every single year, we surpass our volunteering targets because we are an organisation made up of employees who are passionate about the real difference each and every one of them can make individually as well as collectively.”

An inescapable challenge that comes with technology and innovation is readiness and whether or not there is the right skillset and capabilities to fully 48

embrace technology. As an organisation looking to connect non-profit and educational sectors from all over the world to the latest technology solutions, this challenge is only exacerbated. Finn recognises this and admits that there are more mature and ‘techready’ countries and markets in some parts of the world than others.

The one thing she does note however, is the demand for technology. “There is a huge appetite to become tech ready and in fact, sometimes it’s the systems and solutions that aren’t ready to match that appetite,” she says. “There are some incredible, innovative organiza-

NOVEMBER 2018

“ Sometimes it’s actually technology that has to be ready.

So as developers, we have to catch up with some of their innovative concepts” — Charlotte Finn, VP Global Strategic Relations

tions down there that want to harness the powers that technology can give them. But because they are so innovative, because they are so amazing the delivery, especially to the last mile, when you’re right out in the field, it’s not there yet. Sometimes it’s actually technology that has to be ready. So as developers, we have to catch up with some of their innovative concepts.”

To this end, Salesforce.org builds and invests into a number of education programs and educational workforce development programs that are accessible both externally and internally.

One such example, is Trailhead. Trailhead is an online tool that provides training, badges and accreditation to all staff and employees. Finn feels this is key because it shows that technology education is just the beginning, its Trailhead enables them to take that education and make a real difference.

Given the incredible rate in which technology has evolved and will continue to evolve, the technology conversation has shifted immensely. Historically in the non-profit sector, Finn feels that people have always looked to tackle situations by themselves. Only through

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49

TECHNOLOGY

37,000+

Nonprofit and education customers

$230mn+ Grants

3.2mn 50

Service hours

NOVEMBER 2018

public and private partnerships and working collaboratively with NGOs and organisations like Salesforce.org can the sector truly embrace and ride the digital wave. “There is much stronger appetite for the collaboration amongst companies to enable this to happen,” she says. “As more and more of these entities are coming together and creating a collaborative approach, we are starting to see more of these challenges being addressed and tackled more successfully, much more quickly.”

The technology conversation shows no signs of slowing down and Salesforce. org will continue to play a key role in enabling the non-profit organisations of the world to access the greatest and most innovative technologies the world has to offer.

For Finn, it will always be about one thing.

“It really is to enable technology to be used for social good,” she says. “I know it’s a trite answer but its true. We can really help the world through technology. The work we do is truly game changing.”

e uro pe .busi ne ssc hief. com

51

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CITY FOCUS

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NOVEMBER 2018

55

e-Estonia: Could the digital power-house of Tallinn be your next European business hub?

Frequently hailed as one of the most digitally advanced societies in Europe, Estonia is carving its own unique path in today’s digital landscape.

But could it be the right location for your European venture?

WRITTEN BY

LAURA MULLAN e u r o p e . b u s i n e s s c h i e f. c o m

C I T Y F O C U S | TA L L I N N

A

t the heart of Estonia’s business sphere lies the country’s capital, Tallinn. The burgeoning city is also making waves in the wider European business scene too – and

for good reason. Between free public Wi-Fi, a well-educated population, and business-friendly tax policies, Tallinn has quickly become a force to be reckoned with amongst professional circles. In 2016, the country’s gross domestic product (GDP) was €20.9 billion 53% of which was comprised of Tallinn’s GDP. Recognising the country’s potential, more and more businesses, startups and employees are also flocking to the Eastern European capital. In 2015, there were 13,462 companies in Tallinn with turnovers of more than €100,000 and 29 companies with turn56

overs of more than €1mn.

NOVEMBER 2018

57

e uro pe .busi ne ssc hief. com

C I T Y F O C U S | TA L L I N

Boasting a population of around 1.32mn people, the country has been ranked as the 14th easiest place to start and operate a business, according to the World Bank Group’s rankings. But should you head there for work or consider operating a business in this Baltic business hub? Business Chief investigates.

E-ESTONIA: THE MOST ADVANCED DIGITAL SOCIETY IN EUROPE With the nation commonly dubbed as ‘e-Estonia’, Tallinn prides itself on being a digital stalwart. In 2000, the

58

country passed a law declaring internet access as a human right and from that, it has put forward a campaign to bring the internet to rural areas.

Over the past few decades, the country’s digital transformation has been in hyperdrive: when Estonia gained independence in 1991, only half of the country had a phone line yet, by 1997, 97% of Estonian schools were online.

Fast forward a few years later, and Estonia would continue to make history, becoming the first nation in history to offer e-residency. Useful for businesses, this government-issued ID is available to anyone in the world, NOVEMBER 2018

CLICK TO WATCH : ‘VISIT TALLINN CREATORS CAMP — HOW IT ALL HAPPENED!’ 59 granting them the freedom to easily start and manage a global business in the EU. This technological ethos hasn’t gone unnoticed by the business community either. In 2015, Estonia came 22nd among 143 countries in the World Economic Forum’s International Technology Index. Thanks to its digitallydriven approach, Tallinn has become a home to tech behemoths such as Skype, and it has also helped to create

‘ The nation commonly dubbed as ‘e-Estonia’, Tallinn prides itself on being a digital stalwart.

In 2000, the country passed a law declaring internet access as a human right’

Tehnopol, the biggest science park and startup incubator in the Baltic region.

Foreign investors like Microsoft, CGI, Fujitsu, Keuhne+Nagel and Arvato have e uro pe .busi ne ssc hief. com

C I T Y F O C U S | TA L L I N

Viru Keskus Centre Photo: Paul Kuimet www.visittallinn.ee

Restaurant Lendav Taldrik Photo: Paul Kuimet www.visittallinn.ee

60

established long-lasting operations in

CCDCOE, Guardtime and Malware-

the country and the Baltic capital is

bytes, the country seized the top spot

also known for being a beacon for up-

in Europe and fifth position globally in

and-coming startups like taxi-hailing

the Global Cybersecurity Index this year.

startup Taxify or tech firm Nortal.

Not only is the capital technologically-

This digital outlook has also enabled

savvy, but it also has the talent and

Tallinn to become a global heavyweight

expertise to support it. The Estonian

in cybersecurity. In 2017, the country

labour market is highly skilled, with 86%

faced cyber-attacks that were widely

of adults speaking at least one foreign

regarded as the world’s first ‘cyber war’.

language. According to the Human Capi-

But, by learning and gaining from the

tal Report, the Baltic nation is a success

experience, Tallinn has now emerged

story when it comes to successful human

as a powerhouse in cybersecurity-

capital potential maximisation, ranking

related knowledge. Home to NATO

15th globally.

NOVEMBER 2018

61

BIG BUSINESS IN TALLINN:

markets as well as the international

Renowned industry giants, Eesti Ener-

liquid fuels market. Eesti Energia

gia and AS Tallink Group have both

produces electricity from oil shale as

chosen to position their headquarters

well as wind, water, municipal waste

in the bustling city of Tallinn.

and biomass and in 2017, it passed a new milestone and added solar

EESTI ENERGIA

energy to its portfolio. Now, the com-

The international energy company,

pany is one of the largest producers

Eesti Energia, has chosen the

of renewable energy in Estonia. In

Estonian capital as the site of its

May, the company revealed that it

headquarters. Operating in the Baltic

had signed a shares purchase agree-

and Polish regions, the company is

ment to acquire renewable energy

present in the electricity and gas

firm Nelja Energia.

e uro pe .busi ne ssc hief. com

C I T Y F O C U S | TA L L I N N

Cafe Maru Photo: Paul Kuimet www.visittallinn.ee

Currency

Euro 452,000 Population

Nearest airport

4.3km

Tallinn International 62

AS TALLINK GROUP Boasting 15 vessels, AS Tallink Grupp is a mini-cruise and ferry company headquartered in Tallinn. The Estonian company also owns Silja Line and a part of SeaRail. Additionally, the group also operates four hotels in Tallinn and one in Riga. The Baltic ferry and cruise operator named Paavo Nþgene as its new Chief Executive Officer in March. Tallink recently acquired the right to operate international fashion brand Esprit’s franchise stores in Estonia.

NOVEMBER 2018

‘ The service industry dominates the Tallinn economy, with seven out of ten residents employed in the service sector’ Situated on the north coast of the country, Tallinn ties together the Nordic, Baltic and northwest Russian regions, making it a strategic location for any business. Estonia’s longlasting system of low, flat-rate taxes, like the 20% income tax, is simple and has also been favourable to businesses. There is also no tax on retained and reinvested in profits and as a result, the country topped the OECD Tax Competitiveness Index in 2017. Since gaining its independence, Tallinn’s economy has grown rapidly.

The service industry dominates the Tallinn economy, with seven out of ten residents employed in the service sector, according to the Tallinn Busi-

Tallinn Airport Photo: Maret Põldveer-Turay www.visittallinn.ee

ness Administration.

e uro pe .busi ne ssc hief. com

63

T O P 10

66

NOVEMBER 2018

TOP 10 RICHEST IN PEOPLE UROPE Today, the 20 richest people on the planet are worth a staggering $1.2 trn. As the divide between the rich and the richer widens and fortunes stack up, we take a look at Forbes’ ‘The World’s Billionaires’ list to find out the richest people in Europe and how they got there...

WRITTEN BY

LAURA MULLAN

e uro pe .busi ne ssc hief. com

67

T O P 10

68

10

Stefan Quandt

German billionaire Stefan Quandt is one of the richest men in Europe thanks to his stake in automotive giant BMW. Quandt owns 23.7% of the luxury car market whilst his sister, Susanne Klatten, owns 19.2%.

Additionally, he also has shares in homeopathic medicine firm Heel, digital security company Gemalto, and logistics business Logwin.

He has a net worth of around $22bn, according to Forbes.

www.bmw.co.uk

NOVEMBER 2018

69

=09

Giovanni Ferrero Inheriting his family’s $13bn confectionery empire in 2015, Giovanni Ferrero is now one of the wealthiest businessmen in Europe. The Italian businessman controls Ferrero Group, the world’s second-largest chocolate maker, which is best known for its Ferrero Rocher chocolates, Nutella spread and Tic Tac mints. Ferrero is executive chairman of the company and has a net worth of around $23bn. In January, he helped ink a deal with Nestle to acquire the company’s US confectionery business for $2.8bn.

www.ferrero.com

e uro pe .busi ne ssc hief. com

T O P 10

70 Photo © Red Bull

=09

Photo © Red Bull Stratos

Dietrich Mateschitz Austrian billionaire Dietrich Mateschitz made his fortune by cofounding energy drink company Red Bull with Thai businessman Chaleo Yoovidhya. Last year, over 6.3bn cans of Red Bull were sold worldwide, which is enough to provide caffeine to more than 80% of the planet. Today, he holds around 49% of the world’s largest energy drink maker. Today, Forbes estimates that Mateschitz has a net worth of around $23bn.

www.redbull.com

NOVEMBER 2018

71

07

Susanne Klatten The richest women in Germany, Susanne Klatten, owns 21% of BMW, the world’s largest maker of luxury vehicles. Meanwhile, her brother Stefan Quandt (who also features on the Forbes’ billionaires list), owns 23.7%.

The automotive company owns brands including BMW, Mini and RollsRoyce. As well as this, Klatten also has shares in chemical company Atlana, carbon producer SGL Group, and turbine developer Nordex and more. Forbes reports that Klatten has a net worth of $22.9bn.

www.bmw.co.uk

e uro pe .busi ne ssc hief. com

T O P 10

72

06

Georg Schaeffler German businessman Georg Schaeffler is chairman and majority owner (80%) of Schaeffler AG, a major manufacturer of ball bearings and automotive supplies. His mother, Maria-Elisabeth Schaeffler, owns the other 20%. The company generated about EU14bn in sales last year and it owns a partial stake in tyre giant Continental AG.  Schaeffler has previously also served two years as a lieutenant in Germany’s Air Force reserves. According to Forbes Schaeffler has a net worth of around $25.3bn.

www.schaeffler.com

NOVEMBER 2018

73

05

Franรงois Pinault With a net worth of around $27bn, Franรงois Pinault is also one of the richest business leaders in Europe. The French businessman is the founder of designer and luxury goods firm Kering, which owns brands like Gucci and Yves Saint Laurent. In 2017, the Paris-based business reported revenue of EU15.5bn ($17.5bn). Pinault also has a personal art collection of over 2,000 works including pieces by Andy Warhol and Mark Rothko.

www.kering.com

e uro pe .busi ne ssc hief. com

T O P 10

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04

Beate Heister & Karl Albrecht Jr. Heirs to the Aldi retail fortune, Beate Heister & Karl Albrecht Jr. have a net worth of around $29.8bn. They are the children of Karl Albrecht Sr. who founded the discount chain with his brother Theo Sr. in 1946 after they took over their mother’s store in Essen, Germany. In 1961, the founders split ownership of the company following a dispute over whether to sell cigarettes.

Karl Sr. took the stores in in southern Germany plus rights to the Aldi brand in the UK, Australia and the US in what is now known as Aldi Sued. Meanwhile, Theo Sr. was responsible for Aldi Nord, with stores in northern Germany and the rest of Europe.

www.aldi-sued.de

NOVEMBER 2018

75

03

Françoise Bettencourt Meyers & family Françoise Bettencourt Meyers inherited the £79.3bn L’Oréal fortune following the death of her mother, Liliane Bettencourt, last year. Boasting a 33% stake in the world’s largest cosmetic maker, Bettencourt Meyers currently stands as the richest woman in Europe with a net worth of $42.2bn. She runs the family’s holding company as chairwoman. Today, L’Oréal owns makeup brands including Lancôme and Garnier with reported a revenue of $29.4bn in 2017.

www.loreal.com

e uro pe .busi ne ssc hief. com

T O P 10

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02

Amancio Ortega NOVEMBER 2018

77

By co-founding Inditex fashion group,

world under brands like Massimo

best known for the clothing brand

Dutti and Pull & Bear. A pioneer in fast

Zara, Amancio Ortega has cemented

fashion, Ortega has a net worth of

his position as the second richest

around $70bn and owns around 60%

man in Europe. Â He co-founded the

of the company.

company with his ex-wife, RosalĂ­a

www.inditex.com

Mera, in 1982, and today the company has around 7,500 stores around the e uro pe .busi ne ssc hief. com

T O P 10

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01

Bernard Arnault NOVEMBER 2018

79

French business magnate, investor,

a mega-deal to takeover Parisian fash-

and art collector Bernard Arnault tops

ion house Christian Dior, Arnault’s

the leaderboard as the richest person

fortune has climbed by around $30.5bn

on the continent. As Chairman and

over the past year. Today, Arnault has

CEO of LVMH – the world’s largest lux-

a net worth of around $72bn.

ury products group – Arnault overseas

www.lvmh.com

an empire of over 70 brands including Louis Vuitton, Givenchy and Sephora.

Thanks to record results at LVMH and e uro pe .busi ne ssc hief. com

Pioneering th smart factory w

15-16 No Hotel Catalon Barcel

he transiion into with lean thinking

ovember 2018 nia Eixample 1864 lona, Spain

SIRIUS MINERALS 82

Economic and sustainable excellence in mining WRIT TEN BY

DA LE BENTON PRODUCED BY

RICHARD DE ANE

NOVEMBER 2018

MINING

83

e uro pe .busi ne ssc hief. com

SIRIUS MINERALS

Through the $4.2bn Woodsmith Mine, Sirius Minerals will disrupt the ‘sustainability in mining’ conversation

D 84

estructive by its very nature, the mining industry is one that requires an incredible focus and understanding of the impact

that a project has, and can have, on the environment.

For many mining operators, getting this one element right is key to achieving any form of success. Get it wrong and the results can be catastrophic.

With a vision to become one of the world’s largest producers of multi-nutrient fertilisers, and a $4.2bn (£3.2bn) project to achieve that, Sirius Minerals takes its environmental responsibility incredibly seriously. In fact, it’s built into the company’s very mission statement of ‘sustaining the future’.

“This project will establish Sirius as a global fertiliser company,” says Graham Clarke, Operations Director at Sirius Minerals. “But I think what’s important to us is the way we’ve gone about doing that and the way we work.

“We’re not just a mining company trying to develop a resource and make as much money as NOVEMBER 2018

MINING

85 we can out of it. It’s how we’ve always engaged with the local communities, national government and well as regionally.

I think we’re really setting the benchmark in sustainability within mine development.”

The Woodsmith Mine is a 2.66bn tonne polyhalite project: the largest highest grade polyhalite resource in the world. Located near Whitby in the North of England, Sirius Minerals is currently implementing major infrastructure that will connect a deep shaft system and e uro pe .busi ne ssc hief. com

www.josephgallagher.co.uk

Leading the way underground.

From London’s Super Sewer to Sirius Mineral’s Woodsmith Mine.

Joseph Gallagher is a trusted partner for some of the biggest underground tunnelling and infrastructure projects taking place in the UK today.

SPECIALIST CIVIL ENGINEERING CONTRACTORS

®

TUNNELLING | CIVIL ENGINEERING | TRENCHLESS SOLUTIONS

Joseph Gallagher founded his company in 1982, which has grown significantly in the last 36 years to become a leading tunnelling and civil engineering sub-contractor in the UK. 2018 has been been aa milestone milestoneyear yearfor the the company, leading the way both for company, leading the way in terms of recent project both in terms of recent project successes and and their their safety safetyculture. culture.

Sirius Minerals Woodsmith Mine Joseph Gallagher has been contracted by Careys to undertake shaft sinking works at Sirius Minerals’ £3.2bn polyhalite mine near Whitby.

The project reached a historic milestone in September this year, with the naming of the Herrenknecht Vertical Shaft Sinking Machine (VSM) that will be used to excavate the first 120m of a 360m deep tunnel access shaft.

“Using this innovative cutting-edge machine is proof of our determination to use the best, most effective engineering solutions to build this mine.”

Chris Fraser, CEO and Managing Director Sirius Minerals.

Tideway Project Tideway Project The £4.2bn £4.2bn Thames ThamesTideway TidewayTunnel project, project, a 25km atunnel run to Tunnel 25kmtotunnel beneath the River Thames in thein run beneath the River Thames centre of London, is theislargest the centre of London, the largest sewer improvement improvementproject projecttotobebe conducted in conducted inthe theUK UKfor forover overa a century. Contracted century.

Contractedbybythe theFerrovial Agroman Laing O'Rourke joint Ferrovial Agroman UK and Laing venture, Joseph O’Rourke (FLO) Gallagher joint venture, constructed two, 10constructed metre internal Joseph Gallagher two, diameter, SCL 10 metre 37-metre-long internal diameter, tunnels, and two reinforced 37-metre-long SCL tunnels,concrete and portal frames (20m x 16m) two reinforced concrete portal containing 280x tonnes of steel. frames (20m 16m) containing 280 tonnes of steel.

Joseph Gallagher has previously worked with Ferrovial and Joseph Gallagher hasAgroman previously Laing O'Rourke onon thethe Northern Line worked with FLO Northern Extension and this working Line Extension andpositive this positive relationship continuedcontinued onto Tideway, working relationship whereTideway, the same level of onto where the same level professionalism andand workwork ethicethic were of professionalism a big contribution in delivering the were a big contribution in work successfully. delivering the work successfully.

An industry industryleading leadingsafety safetyculture culture Joseph Gallagher Joseph Gallagherbegan beganitsitsLiving Living Incident Free Incident FreeEveryday Everyday(LIFE) (LIFE) behavioural safety behavioural safetyprogramme programmetoto fundamentally change fundamentally changeits itsculture culture and attitudes attitudestowards towardssafety safetynearly nearly four years years ago. ago.

“We have have had hadgreat greatsuccess successwith with the programme, programme,attitudes attitudesand andways of working have moved on. Buton. ways of working have moved therethere is still to be to achieved.”

But is more still more be Joseph Gallagher, Chairman. achieved.”

Joseph Gallagher, Chairman.

Joseph Gallagher Joseph Gallagherview viewleadership leadershipas fundamental to promoting and and as fundamental to promoting sustaining the sustaining thesafety safetyand andwell-being of its people. aim of the LIFE well-being of The its people.

From the programme is toevery provide everyone 1st of October member of withJoseph the exceptional leadership and the Gallagher Group will be mutual respect that is required to attending an industry leading and empower people feel comfortable awarding winningtoimmersive with challenging un-safe training day provided bybehaviours Active and situations.

Training Team (att…). The session combines interactive experiences, “A safe business is the by-product film, drama, live action, exercises, of the business having exceptional participation and facilitated leadership. We continue on our discussion, leaving participants journey with the next phase with a lasting understandingofofour LIFE Culture.”

Steve Harvey, their role in ensuring the safety Managing Director. and well-being of everyone.

From October 2018 every member of The aim of Gallagher the LIFE programme the Joseph Group will is to provide everyone with attend an industry-leadingthe and exceptional leadership and training mutual awarding-winning immersive respect that is required to day provided by Active Training Team empower people to feel (ATT). comfortable with challenging un-safe behaviourstraining and situations.

The ATT immersive day combines live drama, film, exercises “A business is the by-product andsafe facilitated discussion.

“People of the business having come away with a deep, lasting exceptional We for awareness ofleadership. their responsibility continue on our journey their own safety and that ofwith the next phaseand of our Culture.” colleagues the LIFE practical Steve Harvey, Managing Director communication tools to make a

difference.” Dermott Kerrigan, Joseph are creating DirectorGallagher Active Training Team. an environment where people decide to make the Joseph Gallagher areright creating choices, wherever theypeople work across an environment where decide the company.

From procurement, to make the right choices, wherever to planning, HR, the engineering they work across company.and From project management, everyone procurement, to planning, HR, is a leader whenand it comes engineering projectto safety and well-being. management, everyone is a leader when it comes to safety and well-being.

SIRIUS MINERALS

an underground tunnel directly to nearby sea ports and shipping channels. The challenge for Sirius lies in the location, as the project is situated inside a major national park, meaning that the level of environmental responsibility placed on Sirius’ shoulders is significant.

“It started with the way that we designed the project and the infrastructure. Post construction, it will have minimal, if any, impact on the environment,” explains Clarke. “The mine site itself won’t be visible from any viewing point around the site once we’ve finished, 88

and I think we’ve demonstrated that it’s possible to design a deep mine in a sensitive area without it having a significant impact on the environment.

As a company, we take a lot of pride in the way we’ve gone about that, from the way we engage with the local people and the care we take in the environment.”

This is echoed by Chris Fraser, Managing Director and CEO of Sirius.

He notes that the innovative low impact design came about through initial discussions and planning meetings about the mine, which originally was going to involve turning the polyhalite into sulphate of potash (SOP) through a large-scale thermal process that NOVEMBER 2018

“I think we’re really setting the benchmark in sustainability and the way to develop a mine” — Graham Clarke, Operations Director at Sirius Minerals

MINING

CLICK TO WATCH : ‘SIRIUS MINERALS – THE PROJECT EXPLAINED’ 89 would use a large amount of energy and water. This, he explains, would leave a rather significant carbon footprint.

“The process, while technically feasible, caused us great concern because of the amount of gas it was going to consume and the amount of carbon it was going to produce.”

As the team went back to the drawing board and conducted a number of studies to find a more carbon neutral process, it was discovered that when left in its high grade natural mineral form, polyhalite’s crop yield performance surpassed expectations. It was decided e uro pe .busi ne ssc hief. com

MINING

“ It’s who we are and it’s the way we do things. We will address whatever is coming in the future in the same way that we’ve addressed everything we’ve done so far, and I think that’s one of the things that sets us aside, is our ability to change and evolve and meet the next challenge” — Graham Clarke, Operations Director at Sirius Minerals 91

that, rather than turn polyhalite into

Given the location of the ore body,

SOP, a product which was already

Fraser also recognised that Sirius

widely used, Sirius would market

needed to work closely with the local

polyhalite itself as a new fertiliser

community and national government in

product. This had the added benefit

order to ensure that the Woodsmith

of significantly reducing the energy

Mine could even get off the ground.

consumption required for processing.

“We made the early design decision

“That was choice number one, and

that we would not build big headframes

that meant that our carbon footprint

into the sky as normally seen with

reduced massively as a project,” says

underground mines around the world,”

Fraser. “It also meant that we didn’t

explains Fraser. “We decided that all

have to have a massive chemical

of our infrastructure should go under-

process plant nearby consuming huge

ground. These choices mean that there

amounts of gas and water.”

will be zero visual impact on the National e uro pe .busi ne ssc hief. com

SIRIUS MINERALS

92 Park, which is a fundamental ethos of the

MTS is a fully segmented tunnel

whole project.� While Fraser admits this

containing a conveyor belt that will

decision did incur additional costs, he

transport the extracted ore outside

stresses that these were non-negotiable.

the national park to the industrial port

The second component was one of

of Teesside, where the polyhalite will

transportation: extracting the ore and

be granulated and shipped. It will be

moving it to and from the mine site. The

constructed using three tunnel boring

transportation and logistics surround-

machines (TBMs) undertaking three

ing mine sites create a myriad of major

independent drives: one will launch

and minor noise and light pollution, as

from the surface at the port end, and

well as congestion and additional carbon

two from sub level launch chambers at

emissions. To avoid this impacting the

the mine end and at an intermediate site.

park, the company looked to another

“The tunnel will be dug through one

innovative solution: an underground

rock strata, Redcar Mudstone, at an

Mineral Transport System (MTS). The

average depth of 250m� says Clarke.

NOVEMBER 2018

MINING

“What we’ve had to do is design a project that is setting new standards in sustainable design because ultimately, we’ve a project for the next century and beyond, rather than one that’s based on thinking from the last century” — Graham Clarke, Operations Director at Sirius Minerals

93 E X E C U T I V E P R OF IL E

Chris Fraser Chris Fraser has almost 20 years’ experience in the mining industry with a particular focus on financing and strategic developments. He is the founder of the Project, has led its development since 2010 and has been managing director and CEO of the Company since January 2011. During his finance career he worked for KPMG, Rothschild and Citigroup, the latter culminated in him being appointed head of metals and mining investment banking for Australia in 2006 and managing director in 2008. Upon leaving Citigroup in 2009, he founded Sigiriya Capital, a boutique advisory and investment firm. Chris founded York Potash in 2010 and subsequently joined Sirius Minerals Plc in 2011.

e uro pe .busi ne ssc hief. com

Pioneering Your World.

OLKO-Maschinentechnik GmbH has been awarded a contract by Sirius Minerals for the supply and commissioning of two winders for the North Yorkshire Polyhalite Project.

Compared to a human body, the shaft hoisting system can be considered as the main artery of a mine. OLKO is very pleased to have been entrusted by Sirius Minerals with that responsible task and is delighted that their hoists are part of one of the world’s ambitious mining projects.

OLKO is a German based manufacturer and considers itself as supplier of high-end shaft hoisting systems. The company covers a wide range of winders, such as Koepe, Double Drum or Double Blair Winders. Beside the winders, OLKO supplies rope handling equipment, loading and unloading facilities and has references worldwide.

www.ts-olko.com olfen@olko.info

find us

MINING

“That means it will be deep enough to

footprint of the operation, Fraser

avoid any meaningful surface impact

believes that it represents a shining

during construction, and have minimal

example as to what can be achieved

environmental visual impact post

with regards to sustainability in mining.

construction. Effectively when the

“What we’ve had to do is design

project’s built, nobody will actually

a project that is setting new standards in

know there’s a mine here, or a tunnel

sustainable design because ultimately,

in existence.”

we’ve got a project for the next century

In building such massive infrastruc-

and beyond, rather than one that’s based

ture, which provides low operating

on thinking from the last century,” says

costs, minimal environmental impact

Fraser. “Beyond that, we can really tap

and contributes to reducing the carbon

into the incredible technological

E X E C U T I V E P R OF IL E 95

Graham Clarke Graham joined Sirius Minerals in 2011 and has been involved in all aspects of the development of the project. He is currently responsible for construction activities at the Woodsmith and Lockwood Beck sites.

He has over 30 years’ experience in the potash mining industry, in particular extensive operational experience at Cleveland Potash Limited (CPL). Starting as a graduate trainee, Graham initially worked underground as a miner, supervisor and shift manager before taking on more senior management roles culminating with the post of Managing Director, a position held for 7 years. At CPL, he secured investment to support the exploration and development of polyhalite, making CPL the first mine in the world to commercially extract this valuable mineral.

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SIRIUS MINERALS

96

United. Inspired.

United in performance. Inspired by innovation.

Performance unites us, innovation inspires us, and commitment drives us to keep moving forward.

Count on Epiroc to deliver the solutions you need to succeed today and the technology to lead tomorrow. www.epiroc.com/en-uk

www.epirocgroup.com

salesukire@epiroc.com

MINING

97 advantages and thought that comes out

onto that. I’ve never doubted it for

of the UK, in terms of designing our

a minute since I joined the company,”

operating systems, with regards to

he says. “It’s a feeling shared by every

remote and/or automated operations,

single one of us here at Sirius. We

and really looking at achieving even

believe in that vision as well, and the

higher standards, in terms of our

reality is, that if you actually believe

operational presence, once this infra-

you can do something, then you’ve got

structure’s constructed.”

a pretty good chance of doing it.”

For Clarke, this vision of setting new

Sirius’ first exploration programme

standards and pushing the boundaries

ran from 2011 to 2013 which resulted

as to what can be achieved through

in the identification of the 2.6bn tonne

innovative thinking and sustainability in

resource. With construction beginning

mining is something that he bought into

in early 2017, Sirius has targeted

from the very start. “Chris Fraser had

production of the first polyhalite

a vision at the very beginning; I signed

towards the end of 2021 and an initial e uro pe .busi ne ssc hief. com

SIRIUS MINERALS

10mn tonne per annum operation by 2024.

For the immediate future, Fraser notes that the company’s attention is entirely focused on completing the remaining financing required to build the project. “Construction is well underway and we’re coming toward the end of our second year of our construction schedule,” says Fraser. “Now we look at stage two of our financing, which is our senior debt financing. That is concluding early next year and involves finalising our project procurement, signing and securing our delivery partners on the project. These include DMC, Strabag, Jacobs and our market partnerships 98

with our customers, with whom we have already secured aggregate peak take or pay sales of 8.2mn tonnes per annum.”

As the project continues to advance, both Clarke and Fraser can look at how far the company has come since identifying the resource back in 2010. More importantly for Clarke, the company can prove that it has and will continue to do things in future the right way. “It’s who we are and it’s the way we do things. We will address whatever is coming in the future in the same way that we’ve addressed everything we’ve done so far. I think that’s one of the things that sets us aside, is our ability to change and evolve and meet the next challenge,” he says.

Through that vast polyhalite resource, NOVEMBER 2018

MINING

combined with the incredible understanding of its environmental responsibility, Sirius Minerals will truly transform not only the fertiliser industry, but it will send a clear message to the global mining industry. The mining conversation is often dominated by Canada, Australia and emerging mining markets across Africa, but both Fraser and Clarke feel passionately that the Woodsmith Mine can put the UK back on the map – it is the first deep mine to be built in the UK in decades, and will produce over two billion pounds a year through exports alone. This is a key driver for Fraser and is a cornerstone of his vision for Sirius: “I think the material contribution that mining projects can make is just such a fundamental component that has been lost from the UK. Look at a project like this, done to such high sustainable standards. It really does show you the power of mining as an economic driver for growth.�

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99

100

Mi NOVEMBER 2018

MINING

101

ining for

the future WRIT TEN BY

CATHERINE S TURM AN PRODUCED BY

RICHARD DE ANE

e uro pe .busi ne ssc hief. com

AEX GOLD

AN AREA OF SIGNIFICANT POTENTIAL, AEX GOLD HAS BECOME THE ONLY ACTIVE GOLD LISTED COMPANY IN GREENLAND, PROVIDING A SIGNIFICANT BOOST TO THE LOCAL ECONOMY

T

raditionally known for its fishing and hunting industries, Greenland is fast becoming the next significant area of exploration for

mining businesses. The largest island in the world, Greenland remains one of the least populated areas worldwide with 56,000 citizens, and it has sought to 102

attract local and foreign investment across a number of new projects.

The island’s current position remains complex.

A sovereign government, it is positioned under the Danish kingdom who provide grants to support its local economy. To further its independence and bolster its economy to create increased tax revenue, Greenland has embraced the exploration of new mining projects as well as utilising all the renewable and local resources it has to offer.

Rich in rare-earth minerals, gold, iron-ore, uranium, in addition to hydro and wind power, Greenland’s favourable legal framework and robust infrastructure, particularly in South Greenland, have factored into AEX Gold’s vision to explore through its Greenlandic subsidiary, Nalunaq Gold Mine, situated in the Nanortalik Gold belt, Southern Greenland.

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MINING

“ The government is very supportive, so it’s about having a sound exploration strategy. We are very much focused on that” — Eldur Olafsson, CEO, AEX Gold

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AEX GOLD

Acquiring an existing Exploitation Licence in 2015, the company is at the advanced exploration stage of its Nalunaq property, including the previously operating Nalunaq Gold Mine.

It also holds Exploration Licences at the early exploration stage Vagar and Tartoq properties.

Hosting a high-grade NI 43-101 compliant gold resource estimate of 263k oz (inferred) at 18.7 g/t and a number of regional exploration targets, AEX Gold has undertaken three years of exploration at Nalunaq, developing an up104

dated geological model and an extension of the main vein strike length up to 1km.

“The government is very supportive, so it’s about having a sound exploration strategy. We are very much focused on that, as we have an asset package that we think we can grow and create a lot

Through this process, the business has

of value,” explains Chief Executive

turned its attentions solely towards

Officer, Eldur Olafsson.

gold exploration.

Originating from Iceland, Olafsson

“The known gold deposits in Green-

has gained extensive experience of the

land are in an area where the climate is

local geography. Focusing on mining

mild and, given our experience, logistics

projects in Greenland since 2012, he

are relatively easy. Gold opportunities

has analysed the country’s potential

are easier to finance than larger base

against the backdrop of environmental

metals projects and our perception

responsibilities and associated legalities

was that we could fully fund projects

with partner SRK Exploration Services.

like these through our support here in

NOVEMBER 2018

MINING

“ We have a total of 690 sq km of licences in south Greenland and we’re the only active listed gold company in Greenland” — Eldur Olafsson, CEO, AEX Gold

105

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AEX GOLD

106

NOVEMBER 2018

MINING

Iceland and in the UK market,” he explains.

“We started looking for opportunities in the South Greenland Gold Province and became aware of this historically producing mine. We were attracted by the extremely high-grade potential of the resource and the fact that the project had significant infrastructure in place. We believed there were significant opportunities to materially improve the mining operation that had been run by previous operators.”

EXTENSIVE EXPLORATION Throughout the exploration of highgrade resources, Olafsson is proud to remain hands on and is regularly seen on site. By undertaking various technical studies, AEX has gained the ability to comprehensively analyse similar types of assets with potential. After e uro pe .busi ne ssc hief. com

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AEX GOLD

acquiring the Nalunaq project in 2015 the company has continued to expand its portfolio. Whilst Nalunaq encompasses the required licence to explore and recommence production at the old gold mine, they own the larger Vagar exploration licence, situated a few kilometres to the west of the mine, where AEX believes the ground is prospective for the discovery of further Nalunaq-type deposits. In addition, they also own the early stage Tartoq Project to the North West of Nalunaq.

Each licence area is at a different stage

WWW.CARTWRIGHTDRILLING.CA

JUNIOR@CARTWRIGHTDRILLING.CA

TEL: +1 709-896-4446

MINING

C OMPA N Y FA C T S

• Greenland is fast becoming the next significant area of exploration for mining businesses.

• Obtaining an Exploitation Licence, AEX Gold is at the advanced exploration stage of its Nalunaq property • AEX Gold has undertaken three years of exploration at Nalunaq, developing an updated geological model and an extension of the main vein strike length up to 1km.

• Focusing on mining projects in Greenland since 2012, Olafsson has looked at the company’s environmental impact and all associated legalities with partner SRK of exploration which supports AEX’s aim of having a continuous pipeline of projects being brought into

• The use of hydropower and wind power would complement AEX Gold’s operations, not only in its existing mine operations, but with the implementation of an electric mining fleet

production.

“We have a total of 690sqkm of licences in south Green-

years at Nalunaq in order to support

land and we’re the only active listed

our exploration in the larger licences in

gold company in Greenland. Previous

the next 5-10 years,” he says.

operators undertook very little forward-

“Iceland is a short distance from

looking exploration once the mine was

Greenland, so logistically it’s good for

in production. It’s a very under-ex-

us. Additionally, in Iceland you need to

plored region so we intend to recom-

be really self-sufficient, and the same can

mence production within the next two

be said for those in Greenland. We e uro pe .busi ne ssc hief. com

109

AEX GOLD

don’t have as many people or the multitude of services that you would have in other countries which encourages you to think creatively,” he adds.

Consequently, the company has sought to maximise efficiency whilst keeping costs down, yet all the time adding increased value across its operations.

By acquiring a high-grade deposit, less material is needed to be broken down, lowering AEX Gold’s carbon footprint.

Everything taken out of the mine from underground will be processed and shipped out to a different processing facility, or processed on site adhering to the current environmental guidelines. Historically, electricity has been generated through the use of traditional fossil fuels, something which is steadily changing throughout Greenland.

110

“We’re using oil to put in generators or to power mobile mining equipment which is high cost both in monetary and environmental terms. Greenland currently has five hydroelectric power plants and they are looking at building more in south Greenland,” says Olafsson.

Seeing huge opportunities, he explains that the use of hydropower and wind power would complement AEX Gold’s operations, not only in its existing exploration activities, but with the implementation of an electric mining fleet with electricity being obtained from local renewable resources.

PROVIDING LOCAL OPPORTUNITIES In the future, it will be essential for Greenland to gain further revenue to unlock opportunities and services for its citizens. This is something Olafsson believes that AEX Gold can help with due to its knowledge of Iceland as it has many similarities to Greenland and has been NOVEMBER 2018

MINING

“ There are an increasing number of Greenlandic students attending Danish Universities so that now, for example, we are seeing well qualified Greenlandic geologists available for employment” — Eldur Olafsson, CEO, AEX Gold

111

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AEX GOLD

‘ Greenland remains one of the least populated areas worldwide with 50,000 citizens’

112

NOVEMBER 2018

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through a period of comparable change.

“Greenland is in a similar position to Iceland not so long ago. Iceland didn’t have a high education rate and wasn’t wealthy compared to other European countries, with economic and cultural activities that were very insular.

We are now at the highest level of all parameters in terms of education, wealth per family, etc. and this has stemmed from improving the breadth of schooling and creating opportunities for people to grow and develop outside of the traditional areas of agriculture and fisheries.

“Our aim is that the majority of employees will be Greenlandic, but it will take time. Greenland has a large number of people competing for jobs in the fisheries and tourist centres. It is important that Greenlanders are able to access programmes that will allow them to consider other career options. In Iceland we are importing a lot of people to work in different industries in our country because we don’t have enough people. This might be the case for Greenlanders as well if the anticipated growth of the mining sector materialises but we want to ensure that, where possible, we use local people first before looking elsewhere.

“The Greenlandic Government provides good support for those who seek education. There are an increasing number of Greenlandic students attending Danish Universities so that now, for example, we are seeing well qualified Greenlandic geologists available for employment. There has been a Mining School at Sisimiut for the last 10 years which provides local qualified labour who can take advantage of opportunities in the mining sector.

You need skilled labour and as we own a mine that was in production for 10 years previously, there is a fair bit of e uro pe .busi ne ssc hief. com

113

AEX GOLD

“ We are creating revenue for local communities, creating highly skilled jobs, and are providing benefits where local communities can live better lives and individuals can grow” — Eldur Olafsson, CEO, AEX Gold local knowledge that we have been able to use during our exploration work and which we are keen to utilise going forward,” he says.

“We are creating revenue for local

Cartwright Drilling, due to the company’s extensive experience in Greenland

communities, creating highly skilled jobs,

and subsequent knowledge of the

and are providing benefits where local

island’s government systems, process-

communities can live better lives and

es and practices.

individuals can grow. We need to create opportunities for young people.”

Additionally, by working with local

Planning to mine high-grade resources using significant infrastructure already in place, AEX Gold holds

businesses as well as those who have

extensive licences managed by an

been operating in Greenland for some

experienced team. Previous operations

time, AEX has made a conscious effort

produced between 50,000 to 100,000

to hire companies which can support its

ounces a year at 15.4 grams/ton

growth. AEX have therefore acquired

produced and this has provided a

a longstanding relationship with

benchmark for the company, who will

NOVEMBER 2018

MINING

115

utilise this cash flow to explore the wider

a number of projects,” notes Olafsson.

region in the long-term.

“It will create a dramatic effect on the

“We have a five-year plan where we

local community and hopefully be

want to get into production at Nalunaq

a springboard for unlocking much larger

and use the cash generated to fund

potential in Greenland. There are plenty

exploration in the wider district. We

of deposits that have been found, but

envisage investing a significant amount

you have to be able to develop them. You

in exploration assets to provide a portfolio

can only do that that with support and

of different deposits that we can bring

cooperation from the local people who

into production. We are creating a com-

believe in your vision.”

pany that has a long-term mission in Greenland to build up local know how to support our aim of ramping up to very profitable production across e uro pe .busi ne ssc hief. com

116

A QUESTION OF TRUST WRIT TEN BY

ANDRE W WOODS PRODUCED BY

LE WIS VAUGHAN

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GLOBAL SWITCH

Aman Khan, Managing Director, Frankfurt of leading data centre provider Global Switch, discusses a major new project in Frankfurt…

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rust lies at the heart of every business – and every business deal. Without it, you have uncertainty, fear and possible catastrophe.

Nowhere is trust more fundamental than when choosing a data centre, the potential custodian of your most valuable and sensitive assets.

118

Aman Khan, Managing Director of Global Switch Frankfurt, is committed to the company’s ambitions to place trust front and centre of its operations. “When enterprises, telecom companies or cloud providers come to us to host their IT or backbone infrastructure, it is as though they are giving us the keys to their homes,” Khan explains. “It is extremely critical to them, and they need total confidence and trust in us.”

Global Switch’s customers not only need to trust its infrastructure and the security, performance and reliability it provides, but also the company’s financial stability and stature within the marketplace. After all, who wants to place all of their most prized assets into the hands of a precarious operation? “We are the highest credit rated data centre company in the world,” he says. “In addition, we own and operate all our data centres under freehold or under the longest leasehold NOVEMBER 2018

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119 available in the markets where freeholds are not offered due to local regulation. We do not rent – whenever we develop a data centre we own it, which gives us the added flexibility to scale it easily and meet customer demand.

It is one of our key differentiators and gives customers peace of mind.”

CONSTRUCTION TIME 2018 marks Global Switch’s 20-year anniversary – the past two decades have seen the company establish itself as one of the world’s leading operators with a portfolio of 11 largescale data centres in eight locations across Europe and Asia-Pacific operated to a Tier III e uro pe .busi ne ssc hief. com

1972 established in 1972

750

3

completed â‚Ź3 billion worth of data centre projects

3000

REVENUES OF OVER â‚Ź750M

over 3000 emloyees

1

31

countries worked in

Premier data centre contractor in europe

4

completed projects on 4 continents

MERCURY ENGINEERING - AN OVERVIEW

Mercury is an International Construction Company and the European Market Leader in turnkey Datacentre construction.

With Projects completed in 31 Countries on 4 Continents, we have vast experience & a hugely successful track record of completing large complex projects overseas. We have a mobile workforce who enjoy a challenge and who are fully supported by senior management & dedicated function departments. Many of our experienced operatives are long term direct employees who manage projects on behalf of our clients to the strictest codes of integrity & professionalism.

Today, we are building on this legacy applying our expertise and credibility on projects for some of the world’s largest corporations. The strong partnerships we form with our clients enable us to assist them at a strategic level and to deliver business critical projects seamlessly and effectively.

Every project we undertake is unique & has its own set of risks and challenges however our approach is the same; to optimise the engineering design, supply chain, installation techniques and management practices. This approach coupled with our strategy of engaging the local supply chain wherever we operate ensures excellent project support and long-term sustainability.

Safety and Quality are key to our businesses success & our management processes are audited and certified to OSHAS 18001 and ISO 14001.

Evolving IT has given us new tools to manage our business more efficiently and increase the level of service we offer to clients. We believe that our company’s future success is dependent on keeping our workforce educated and equipped with the best tools and business processes. To this end, we quickly adapt the latest building systems & services both through experience & the use of educational seminars.

The future belongs to companies who take responsibility for updating their skills and knowledge and who continuously improve their ability to transform data into value added, actionable information to serve customers.

MERCURY ENGINEERING MERCURY HOUSE, Ravensrock Road, Sandyford Dublin, Ireland. www.mercuryeng.com info@mercuryeng.com +353 1 216 3000 Follow us on:

GLOBAL SWITCH

122

standard or higher. The total size of the

organisations Global Switch is part way

company’s data centres – all 100%

through a significant global expansion

carrier and cloud neutral – comes in at

plan with developments and upgrades

340,000 sq m with a massive 357MVA

currently underway in London, Hong

(mega volt amps) of total connected

Kong and Singapore. Germany’s

utility power capacity.

financial capital Frankfurt is home to

The company’s focus is on highly

Global Switch’s next major development

resilient, central, low latency, network

in Europe. Built by Mercury Engineering,

dense locations in prime city centre

the €115mn Frankfurt North data centre

areas and internet hubs close to its

– due to be operational in 2019 – will

customers on the edge of financial

provide an additional 11,000 sq m of

and business districts. Due to customer

space with 14MVA power supply

demand from financial institutions,

capacity to the company’s operations

enterprises, global systems integrators,

there and will be adjacent to Global

cloud providers, telecoms, managed

Switch’s existing data centre, Frankfurt

service providers and other hosting

South. Customers will have access to

businesses as well as government

a wide range of cloud and network

E X E C U T I V E P R OF IL E

Aman Khan Aman Khan is a passionate, forward-thinking and resultsdriven executive with several years’ experience in strategical and operational leadership functions at multinational technology services enterprises. Khan has proven experience in business development, sales management and go-to-market strategies of technology companies that focus on mid-to-large enterprises including public, service provider as well as startup segments.

CONSTRUCTION

‘The data centre will benefit from an independently verified annualised design Power Usage Effectiveness (PUE) of less than 1.2, and will be targeting a BREEAM ‘Very Good’ certification’ — Name of Person, Position and company e uro pe .busi ne ssc hief. com

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GLOBAL SWITCH

1998 Year founded

500

Approximate number of employees

124

NOVEMBER 2018

CONSTRUCTION

providers as well as the DE-CIX peering platform allowing direct access to the global IP backbone, already available from Frankfurt South. Once Frankfurt North launches, the campus will provide around 28,000 sq m of space with 28MVA utility power supply capacity.

So how does a company like Global Switch gain a competitive advantage over its rivals when so many are providing similar services?

“One of our key differentiators is that we provide truly bespoke solutions according to our customers’ needs. In addition to our state-of-theart security and green-energy data centre environment, our best-in-class Critical Environments Programme (CEP) and our highly skilled data centre engineers and management team are what set us apart.”

Highly experienced Khan, who has spent over 20 years in senior management in the IT and telco markets, is justly proud of Global Switch’s operational excellence. “We have very rigorous procedures and processes in place,” he explains. “Our CEP is regarded as one of the most robust in the industry and ensures a consistent approach to operational delivery. Its primary objective is to ensure risks are effectively controlled to provide unrivalled uptime. These best-in-class operating procedures and practices are supported by e uro pe .busi ne ssc hief. com

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GLOBAL SWITCH

continuous improvement programmes and comprehensive training. For that reason, Frankfurt South, since its launch, has enjoyed 100% uptime. This shows that the architects and technical design team, the processes and the people have all done an excellent job in providing that kind of availability. If you are a customer, that is what you are looking for.” It is certainly something Daily-Tech – a strategic partner of China Telecom Global – is looking for, having taken up a substantial pre-commitment in Frankfurt North.

126

Khan puts much of Global Switch’s success in the data centre space down to its focus. “The difference between us and many other companies over the past 20 years has been our focus on our core business. We have not tried to sell the services that our partners, system integrators, or cloud providers or telecom companies are offering. We do not want to compete with our partners. Our model has been across those 20 years, now, and in the future, built around our core business, which comprises of highly secure and resilient data centre services, and the provision of ‘home’ to primary and secondary data centres.”

NOVEMBER 2018

CONSTRUCTION

“We have not tried to sell the services that our partners, system integrators, or cloud companies or telephone companies are offering. We do not want to compete with our partners” — Aman Khan, Managing Director Frankfurt, Global Switch

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GLOBAL SWITCH

SUSTAINABLE CONSTRUCTION Energy efficiency is at the heart of all Global Switch’s data centres. Frankfurt North, which Khan is overseeing, will feature high-efficiency static UPS and an advanced Chiller Assist system that uses both hybrid dry and watercooled chillers, which operate for less than 10% of the year. The facility will benefit from an independently verified annualised design Power Usage Effectiveness (PUE) of less than 1.2 and will be targeting a BREEAM ‘Very Good’ certification.

“Energy costs across the globe have 128

increased dramatically in the last couple of years, and Germany is no exception,” says Khan. “There are several kinds of energies which you can use for data centres including grey energy, which is not renewable, mixed energy, which is renewable and green energy, which is completely renewable. At Global Switch Frankfurt, we only use green energy.”

The downside to green energy is cost, due to country taxes and surcharges in Germany.

“Germany produces green energy itself but also buys a lot of green energy from Norway and Finland,” Khan explains. “Germany has one of the highest taxes and surcharges on green energy in Europe – however these costs can be offset by Germany’s reliable infrastructure and economic stability.

NOVEMBER 2018

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129

“Nevertheless, at Global Switch we acquire energy at the most competitive pricing possible and use all other options available to us such as auction and hedging, etc… At the same time, we work with our customers to design their infrastructure intelligently to optimise the energy usage – after all this is a win-win game if we work together with our customers to achieve this common goal.”

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Digital transformation for sustainability, health and the guest experience WRIT TEN BY

SE AN GA LE A-PACE PRODUCED BY

BROGAN BAGGOT T

Photo © Scandic Hotels NOVEMBER 2018

FDF

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SCANDIC HOTELS

Director of Food & Beverage at Scandic Hotels Norway, Morten Malting, discusses how Scandic Hotels is embracing digital to eliminate waste and operate more sustainably

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hen it comes to breakfast, there are few hotels that know more about achieving continuous success than Scandic Hotels

in Norway. With the hotel chain having consistently won the prestigious Twinings Best Breakfast competition, including 12 victories out of the last 14 awards 132

at its Scandic Nidelven hotel, it’s clear Scandic is revolutionising the way it provides breakfast. “Unique for the Scandinavian hotel market, a rich and varied breakfast buffet is usually included in the room price. As a consequence, providing the best breakfast offering is a key factor in order to attract new guests and keeping existing guests loyal. What better way to do so by offering hotel guests the very best breakfast?” asks Morten Malting, Director of Food & Beverage of Scandic’s Norwegian operations.

In order to achieve this, Scandic has developed and introduced a new breakfast offering together with its top chefs and key suppliers. By emphasising high-quality local produce, healthy products made fresh to order, often by chefs present in the breakfast restaurant, and acknowledging the importance of the service element with things as NOVEMBER 2018

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133

Photo Š Hotel Norge by Scandic / Francisco Munoz

e uro pe .busi ne ssc hief. com

SCANDIC HOTELS

CLICK TO WATCH : ‘ARCTIC SLEEP OF NORWAY’ 134 simple as greeting every guest with a ‘good morning’, Scandic has become the undisputed breakfast champion in Norway.

EMBRACING KEY SUPPLIERS Since Malting became Director of Food & Beverage in 2011, Scandic Hotels Norway has undergone quite the transformation.

Over the past seven years, the firm has seen its total number of hotels increase from 16 to 85 with food and beverage sales also rocketing. Currently, Scandic is not only one of the biggest hotel chains in Norway, but also ranks among the biggest players in the restaurant industry.

Photo © Hotel Norge by Scandic / Francisco Munoz NOVEMBER 2018

FDF

“The journey of the quality of our F&B offering has been amazing,” says Malting.

local guests and our core business, hotel guests.”

“Initially, some hotels performed better

Malting mentions restaurant Nova

than others, but today we are an entire

at the newly reopened Hotel Norge by

chain of hotels recognised for great

Scandic as an example of how the

food and beverage experiences, and

company is embracing local love by

we have been successful in creating

selecting the absolute best local prod-

a variety of local restaurant concepts

uce and having the former Bocuse

with one thing in common: we target

d`Or winner Ørjan Johannessen as

the locals. We have managed to do this

the Chef Advisor – Johannessen also

through high-quality local produce

happens to be a local chef who began

and by focusing on telling the unique

his career as a Scandic apprentice.

stories to our guests. By doing this we

Another example is restaurant Bruket

have been successful in attracting both

at Scandic Lillestrøm. Both restaurants

“ We have over 140 items on our breakfast buffet and work lots with local products.We really encourage the hotels to find local products from nearby,so that guests can enjoy the storytelling aspect of the products too” — Morten Malting, Director of Food & Beverage, Scandic Hotels Norway

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SCANDIC HOTELS

136

“If you really want to embrace sustainability through cutting down on overproduction, you have to start at the beginning” — Morten Malting, Director of Food & Beverage, Scandic Hotels Norway

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Photo Š Hotel Norge by Scandic / Francisco Munoz

e uro pe .busi ne ssc hief. com

& A. Idsøe.

SCANDIC HOTELS

OLD CRAFTS, traditions

INNOVATIONs SINCE 1828

post@idsoe.no | 47476783

www.idsoe.no

Haugen-Gruppen Foodservice is the proud organizer of Twinings Best Breakfast through 14 years.

Thank you to all participating hotels for their effort to improve the breakfast experience of their guests.

www.haugen-gruppen.com

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Photo © Scandic Hotels

139

have become the preferred choice for

pany it was important to choose supp-

locals and hotel guests alike, thanks to

liers where we become their most

their ‘local love’ strategy. “In Norway,

important customer,” he explains.

there used to be a common impression

Malting points towards key suppliers

that hotel restaurants were of subpar

such as Albert Idsøe (A. Idsøe), which

quality and reserved for hotel guests

has provided high quality meat products

only – I’m glad we are changing that impr-

to Scandic, and Haugen Gruppen, an

ession. Now, even food critics recom-

important supplier within the food and

mend our restaurants,” says Malting.

beverage industry, as reasons why the

Malting emphasises the importance of maintaining relationships with suppl-

company has maintained its success.

“I think Albert Idsøe was crucial as

iers and believes this has enabled

our meat supplier when we were small.

Scandic to produce a better product.

Even though it’s quite a small, family-

“My strategy has always been very

run company, I believe our partnership

clear that when we were a small com-

with Albert has helped us tremendouse uro pe .busi ne ssc hief. com

SCANDIC HOTELS

1963

Year founded

16,000

Approximate number of employees

140 Photo © Hotel Norge by Scandic / Francisco Munoz

ly with the quality of our products. They

visit more than 400 breakfast buffets

currently have three signature prod-

to identify and crown the breakfast

ucts on our award-winning breakfast:

champion. “This competition has really

breakfast sausage, ham and liver paté.

helped us by creating an awareness

Our guests often comment on social

and interest in hotel breakfast among

media about the fantastic liver paté.

the public, and Scandic has taken the

All recipes are made in cooperation

number one position in Norway. It

between Scandic and A. Idsøe chefs,”

means that when people ask which

Malting explains.

hotel chain has the best breakfast,

“Haugen Gruppen, the supplier behind the ‘Twinings Best Breakfast’ competition, has really helped improve the overall

most people will answer Scandic.

It really drives business for us.”

Scandic Hotels Norway continues

breakfast offering in Norway,” he conti-

to work with all of these companies

nues. Every year independent judges

thanks to the significant success of

NOVEMBER 2018

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141

each partnership, but Malting is careful to add that although good relations are important, neither supplier nor customer should become too comfortable and it’s vital to ensure a strict tendering process is maintained for every contract.

“I think it’s a fine balance between having a really great network, partnerships and relationships – however, these relationships can never become too close because I think it’s critical that you keep your eyes open to see if there are alternative offerings on the market that can potentially do a better job,” he says.

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SCANDIC HOTELS

C OMPA N Y FA C T S

• 70,000+ meals have been ‘saved from the bin’ from Scandic hotels in Norway via the Too Good To Go app • Scandic Hotels Norway has reduced waste by 80 tonnes annually — ­ this equals 125,000 meals

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Photo © Scandic Hotels NOVEMBER 2018

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143

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All Equipment for Professional Kitchens Leading Kitchen Equipment Supplier in Scandinavia www.metos.com

“That’s why we have our own procurement department, both on group level but also here in Norway,” he continues. “They pretty much run the tenders, but we decide together. I think it’s important to consider each company as not just a supplier but also someone that cooperates with us well as a partner.

They must have a really great product and be able to offer the best price.”

SUSTAINABILITY THROUGH DIGITISATION In 2016, Scandic Vulkan was the first Norwegian hotel to utilise an app called ‘Too Good To Go’ which helps NOVEMBER 2018

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Photo © Scandic Hotels

145 eliminate food waste by offering

Scandic has also embraced another

leftover food to the public at discount-

digital solution called ‘Winnow Solutions’,

ed prices. Malting strongly believes

a system which connects a device to

the new app has been an excellent

a weight in order to measure leftover

initiative that has proved mutually

food from a buffet or a customer’s plate,

beneficial to both Scandic and its

affording Scandic an in-depth look at

customers. “The system allows us to

exactly how much is being wasted. The

get money for food that would

daily and weekly reports from the solu-

otherwise go in the bin. At Scandic,

tion enable Scandic’s head chefs to

we like to say that we make our food

produce the right amount of food each

with heart and passion. It belongs in

day and decrease food waste.

the stomach rather than the bin,” says

“If you really want to embrace sustain-

Malting. So far more than 70,000

ability through cutting down on over-

meals have been ‘saved from the bin’

production, you have to start at the

from Scandic hotels in Norway alone.

beginning,” explains Malting. “You have e uro pe .busi ne ssc hief. com

SCANDIC HOTELS

to buy the right quantity, you have to spend the right amount of time on production, and you have to serve the right portions so that you really avoid leftovers. That’s what we’re aiming for.” In fact, Scandic Hotels Norway has signed a trade agreement with the agriculture and food department whereby the hotel chain has committed to cutting its food waste by 20% by 2020. So far, the Too Good To Go app has helped Scandic cut down on 70,000 meals worth of food waste, while overall through total initiatives at all hotels a 10% reduction has been achieved, and 80 tonnes less food waste is created annually – this is equal to about 125,000 meals.

146

GROWTH THROUGH STRATEGIC ACQUISITIONS In recent years, Scandic has made significant acquisitions in a bid to strengthen its position as the leading hotel chain in the Nordic region. The company acquired the Norwegian hotel chain Rica Hotels in 2014, as well as Finland-based Restel in late 2017 in moves to drive Scandic forward. Malting believes the decision to purchase Rica, among other things, was key in allowing Scandic to revolutionise its breakfast. “Rica Hotels were very famous for their breakfast so when we acquired them, we actually integrated Rica into Scandic, and looked very carefully at how they handle breakfast.

“We took the best from Rica and the best from Scandic and we turned it into an award-winning NOVEMBER 2018

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“The ‘Too Good to Go’ app allows us to get money for food that would otherwise go in the bin. At Scandic, we like to say that we make our food with heart and passion. It belongs in the stomach rather than the bin” — Morten Malting, Director of Food & Beverage, Scandic Hotels Norway

Photo © Hotel Norge by Scandic / Francisco Munoz e uro pe .busi ne ssc hief. com

147

SCANDIC HOTELS

148

Photo © Scandic Hotels

breakfast. We have over 140 items on

with a “good morning”. Breakfast

our breakfast buffet and work lots with

is also a great occasion for hotel

local products. We really encourage

managers, or even the general

the hotels to find local products from

manager, to take an hour each

nearby, so that guests can enjoy the

morning to serve coffee or tea and

storytelling aspect of the products too”,

at the same time chat with guests

says Malting.

and create an informal arena to

Another key element for Malting

receive feedback on the overall hotel

is how the hotels are connecting with

experience or on the breakfast offer-

their guests.

ing. Breakfast is often the last impre-

“I think the breakfast has a lot to do

ssion a hotel guest has of a hotel

with the service level, the visible chefs

before checking out, and therefore

who make the omelette or eggs to

an important element of a stay to

order and how we greet our guests

make a good overall impression.”

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Photo © Scandic Hotels

149 Photo © Scandic Hotels

Having achieved such consider-

every breakfast buffet in a specific

able success with its breakfast

section. “Even though I don’t have

offering, Malting points to Scandic’s

any food intolerance myself, I was

mentality of ensuring that every

a little bit irritated that it’s always

customer is catered for regardless of

really low-quality products on offer

dietary requirements. This is a part

for those who do. It’s always affect-

of Scandic’s legacy as a pioneer of

ing the gluten-free or the lactose

accessibility and creating hotel

intolerant person, so they never have

experiences which every guest can

a great food experience when they

enjoy, regardless of disability or

visit hotels or restaurants,” says Malt-

specific requirements. Citing the

ing. “At Scandic today, our guests can

aim to achieve ‘a better morning to

enjoy great tasting allergy products

everyone’, Scandic has introduced

on our Food for All section, across

allergy-friendly local products to

all our hotels in the Nordics.” e uro pe .busi ne ssc hief. com

SCANDIC HOTELS

150

Photo © Scandic Hotels

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FUTURE ASPIRATIONS Looking ahead to the future, Malting believes Scandic must continue to prioritise the guest experience in order to sustain its position as the leading hotel chain in the Nordics.

“At Scandic, we are always working to be guest-centric. It’s all about the guest experience and we always make sure the guest comes first. We work hard to make everything as seamless as possible so that it’s easy for you to go on a mobile app to book your room or your restaurant; because we know that the digital journey is really important for us moving forward,” he explains.

“I think it’s important for Scandic to lead the way. We are a leader when it comes to sustainability and have been since the early 1990s. We are also a leader when it comes to healthy food and food intolerance. If you don’t take each of these elements – health, Photo © Scandic Hotels

food intolerance and sustainability – seriously, then people aren’t going to choose to stay with you in the future. You could say that sustainability’s part of the Scandic DNA.”

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152

PROVIDING UNFORGETTABLE EXPERIENCES WITHIN A NEW HOTEL CONCEPT WRIT TEN BY

CATHERINE S TURM AN PRODUCED BY

BROGAN BAGGOT T

NOVEMBER 2018

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ARBOREA HOTELS AND RESORTS GMBH

Launching a sustainable leisure resort concept, ARBOREA Hotels and Resorts has sought to fully transform the traveller experience

W

ith extensive experience of the hospitality and leisure industry across Europe, the Middle East and Africa, Johann Kerkhofs is no stranger

to the challenges and subsequent rewards which the industry can bring. With evolving customer demands, alongside an increased global tourism boom, guests are no longer content with traditional services, but are 154

consistently looking to gain an unforgettable experience at each destination.

Specialising in everything related to hotel and hospitality services, Kerkhofs has sought to transform the traditional guest experience by concentrating on communication, community and bringing people together through a new, innovative hotel concept known as ARBOREA Hotels und Resorts.

Originating from ‘abor’, meaning ‘tree’ and formed and developed by Kerkhofs during his time in Egypt and Jordan, ARBOREA Hotels und Resorts is focused on bringing people together during their vacation.

“The travel behaviour of tourists has changed.

Many people now travel for a couple of days, but more often, rather than three weeks in a row,” he explains. “We provide an interesting product and NOVEMBER 2018

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155

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ARBOREA HOTELS AND RESORTS GMBH

156

NOVEMBER 2018

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all kinds of services for our guests

and tissue boxes at all establishments

and want people to experience more

are also constructed out of old maps

during their vacation through being

and files.

outdoors and undertaking various sports and activities.�

Additionally, all establishments under ARBOREA will be powered by 100%

A variety of rooms will be on offer

green energy sources. The company’s

to cater for families, couples and lone

ARBOREA resort in St Gallenkirch,

travellers, with all beds positioned

Austria will house a pellet heat system

directly into nature, creating a unique

and photovoltaic energy to provide

experience for all guests. The concept

essential electricity.

will only utilise natural materials, sustainable products and locally sourced goods,

EXPERIENCE.TOGETHER

eliminating most plastics and sourcing

With the aim to transform the guest

alternative solutions. Carpets have

experience, ARBOREA houses a number

been created out of recycled fisherman

of communication platforms to build

nets, promoting upcycling. Hangers

a sense of community. An amphithea-

E X E C U T I V E P R OF IL E

Johann Kerkhofs Part of the Swiss Hotel Association, Johann Kerkhof has become a key figure in the hospitality industry for more than 30 years.

Developing internationally acclaimed hotels, he has also worked in a number of senior level roles. With a wealth of knowledge and experience, Johann now provides in-depth seminars and refresher courses at Cornell University, NY, USA.

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157

ARBOREA HOTELS AND RESORTS GMBH

“Guests can have a type of living room experience, and it’s very interesting for corporate businesses” — Johann Kerkhofs, Managing Director

158

NOVEMBER 2018

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CLICK TO WATCH : ‘WE ARE ARBOREA’ 159 tre, named The Stairs, is an essential

which tastes great, whilst they learn

space for guests to socialise, relax,

how to cook with fresh products,”

and enjoy all the entertainment options

says Kerkhofs.

on offer at all resorts.

Secondly, noting that food traditionally brings people together, the kitchens, which have been certified by green

Long tables have also been placed in the dining area, promoting communication across all avenues.

Kerkhof’s commitment to promoting

chiefs, have been strategically placed

sustainability across ARBOREA has

in the centre of all restaurants under

also been extended to the food provided

ARBOREA, bringing people together

to guests. Procuring 80% of products,

wherever possible.

which are not only ethically sourced

“When you have a group of eight to

but bought within a 100km radius, strong

10 people who decide to cook for an

relationships with local farmers and

afternoon with our chef, people auto-

suppliers have been established across

matically connect to create something

the business. e uro pe .busi ne ssc hief. com

ARBOREA HOTELS AND RESORTS GMBH

160

“ Many people only eat convenience food, so we are looking to promote the advantages of using fresh products” — Johann Kerkhofs, Managing Director

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ARBOREA HOTELS AND RESORTS GMBH

C OMPA N Y FA C T S

• With an increased global tourism boom, guests are consistently looking to gain an unforgettable experience • Kerkhofs has sought to transform the traditional guest experience by concentrating on communication, community and bringing people together 162

• New lifestyle concept, ARBOREA Hotels & Resorts, utilises only natural materials, sustainable products and locally sourced goods • ARBOREA houses a number of communication platforms to build a sense of community.

• The kitchens have been strategically placed in the centre, enabling guests to cook together, as well as undertake cooking classes and events

NOVEMBER 2018

FDF

“We buy our vegetables and fruits locally and have a winery not far away from the hotel. It’s all about local food and a local experience. Guests who come to us know where our food products are coming from,” says Kerkhofs.

“Our grill restaurant, for example, provides all different cuts of meat, from a Tomahawk steak to a normal rib eye or fillet steak. Fish and all different kinds of vegetables are also on offer.

We have a special grill which we imported from Grillworks® in New York.”

A variety of activities are offered through the ARBOREA Experience.

From running and cycling to paddle boarding and yoga, water sports are a particular focal point at the company’s hotel in Neustadt, where sailing, wakeboarding, kite surfing and diving are all on offer. The concept of collaborating and creating something new has also been extended to the establishment of a woodwork workshop, enabling guests to create their own furniture and upholstery.

“Through these activities, people get to know each other and you get a different kind of atmosphere,” observes Kerkhofs.

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163

IXMO SOLO

LESS CAN DO MORE. IXMO SOLO

=

mixer r e v le Single

+

IXMO onlineplanner: www.ixmo.de

Offering an E-Mobility Centre in

Wall outl et fo r sh owe rh os e

W

Guests are not sitting in a row, as we

cooperation with GP Joule, ARBOREA

try and make it more collaborative.

also provides e-bikes, e-cars and

Guests can have a type of living room

e-scooters on demand. However, not

experience, and it’s very interesting

content with catering solely to leisure

for corporate businesses. Guests can

travellers, the concept has also been

also celebrate their wedding, birthday

built to serve corporate guests. A num-

or any kind of celebration with us,”

ber of conference rooms have been

observes Kerkhofs.

established to cater to up to 80 attendees, transforming the traditional corp-

EUROPEAN EXPANSION

orate experience.

Noting that 12 projects in total are in deve-

“We furniture the rooms to our guests’

lopment, ARBOREA Hotels und Resorts

preferences. We have three confer-

has an ambitious plan to make it one of

ence rooms and a community room.

the most recognised and widely reno-

NOVEMBER 2018

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“ It’s all about local food and a local experience.

Guests who come to us know where our food products are coming from” — Johann Kerkhofs, Managing Director

e uro pe .busi ne ssc hief. com

165

ARBOREA HOTELS AND RESORTS GMBH

2014

Year founded

80

Approximate number of employees

166

NOVEMBER 2018

FDF

wned hotel brands across Europe, launching its first resort in Neustadt in July.

With a clear strategy to build 19 new resorts in the next 10 years, focusing primarily on German speaking countries, the Dolomite region of Italy and Spain, the company’s unveiling of its hotels in St Gallenkirch and its Schierke will be undertaken between 2020-2021.

“It is all dependent on what the opportunities are. We have some special requirements for land plots, how we want to build our hotels and where they have to be built,” concludes Kerkhofs.

“We don’t want to build a hotel in urban areas, but always a bit more out the way where guests have a view. We want to be close to urban areas, but at the same time it’s important for us to be green and to be a natural resort which will bring its own lifestyle.”

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167

168

Prometeon Tyre G

manufacturing efficiency through operational excelle WRIT TEN BY

DA LE BENTON PRODUCED BY

JARROD K NIGHT S

NOVEMBER 2018

M A N U FA C T U R I N G

Group

169

h ence

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PROMETEON TYRE GROUP

Through an efficiency transformation program, Prometeon Tyre Group delivers lean manufacturing excellence

D

rawing on Pirellli’s more than 100 years’ experience in delivering an entire range of products and

services to the automotive market, Prometeon Tyre Group has firmly established itself as a market leader. With a licensing agreement with Pirelli Tyre S.p.A to produce Pirelli 170

branded tyres, Prometeon has a commercial presence in over 160 countries. Looking ahead to the next 100 years, continuous improvement and evolution will be the key to building on this success.

Hervé Ghesquières heads the group’s global industrial engineering operations.

With experience in industrial engineering and manufacturing in a number of European Tier 1 companies, Ghesquières’ career has been built around creating and improving the operational efficiency of organisations.

“I also work on the industrial footprint of companies that have production facilities in order to improve the competitiveness, considering the product lines, the capacity and capabilities of the processes,” he says.

NOVEMBER 2018

M A N U FA C T U R I N G

171

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PROMETEON TYRE GROUP

This experience saw Pirelli headhunt Ghesquières back in 2011 to join the company’s Milan headquarters. His mission? To create an organisation of industrial efficiency and increase the competitiveness of the company. He feels his career has provided him with the right insight to drive the group forward.

“My experience fits perfectly with companies like Prometeon, which have an endless need to improve value generation for their customers and shareholders,” he explains. “The truth is, improvement has no end and 172

neither does efficiency. In order to continue to deliver on this, we are involving all the operations functions to accelerate efficiency generation.

Production, R&D, Purchasing, Logistics, Quality, Technical Engineering, Maintenance, Energy Specialists, HR– everyone is involved and contributes to the turnaround of the company.”

Ghesquières’ first task was recruit new people, create new teams in each region and establish factories across the company’s footprint. In each of the factories, he defined the standards, put training programmes in place and defined reporting and communication channels which all formed part of the NOVEMBER 2018

“ OUR MOST IMPORTANT ASSET AND KEY TO OUR SUCCESS IS OUR PEOPLE. THE EMPLOYEES, EACH AND EVERY ONE OF THEM, CREATE TRUE VALUE” — Hervé Ghesquières, Global Head of Industrial Engineering at Prometeon Tyre Group

M A N U FA C T U R I N G

CLICK TO WATCH : ‘DISCOVER PROMETEON MANAGEMENT SYSTEM’ 173 Pirelli Lean System. The Pirelli Lean System saw the creation of a number of best practices including the Kaizen Weeks, Blue Collar Trainer system, the Pirelli Productions Control System and innovation projects and automation (Industry 4.0).

“In order to improve the competitiveness of the company, I also defined the optimal size of a tyre plant, jointly the Operations team, balancing the many different constraints. We defined the best global footprint of the company and increased the volume in low cost countries at the level of the optimal size of e uro pe .busi ne ssc hief. com

PROMETEON TYRE GROUP

174 the plant, while implementing automation

a unique manufacturing system to be

and working on efficiency increase at the

implemented in the Prometeon and

plants in high cost countries.”

Chemchina tyre factories, Ghesquières

This proved successful enough that

set out to improve and align

when Chemchina became Pirelli’s major

the products and their quality without

shareholder and Prometeon Tyre

compromising efficiency. “We had to

Group was created, into which the

look at a way of aligning quality, integrity

previous Pirelli Industrial Business Units

and standards of the products without

were converged, and some assistance

incurring additional costs or loss of

agreements were defined, Ghesquières

volume, and without increasing the

was asked to replicate the success he

headcount,” he says. “To achieve this,

had achieved with Pirelli and create an

we created a number of systems and

efficiency organisation plan for the

processes that will enable us to achieve

new nascent company.

seamless integration and greater

Through his mission of creating NOVEMBER 2018

efficiencies throughout all of the plants.”

M A N U FA C T U R I N G

Ghesquières created an Efficiency

on to de-bottleneck the plants and

Improvement Team, which is also

improve the efficiency of the opera-

known as the company’s Industrial

tions while improving the quality of

Engineering Team. By creating an

the products.

efficiency and resources planning

“At first we had to create the

system from scratch, the team is

efficiency team, in order to have the

defined by its ‘training by doing’

workforce physically doing the job,

approach. This system allowed

training by doing,” he says. “Then, by

Ghesquières and his team to have

creating Industrial Engineering

a clear overview of plant capacities,

systems in order to have visibility on

identify bottlenecks and highlight

the capacities, the bottlenecks and

priority areas that needed working

the headcounts of the plants, we were

E X E C U T I V E P R OF IL E

Hervé Ghesquières

175

Hervé Ghesquières is the Global Head of Industrial Engineering and Lean Manufacturing of Prometeon, the ex-Pirelli Industrial Tyres. He has been working 17 years in the Tier 1 automotive industry of which 9 as an executive in industrial efficiency. Hervé has a strong experience in the management of the efficiency increase and the competitiveness improvement of operative organisations, involving the people, from the operators to the top managers. This is his passion.

These last years, drastic efficiency improvements have been consolidated, thanks to the optimisation of the industrial footprint reorganisation and the implementation of strong continuous improvement actions. And lately, as Hervé did for Pirelli, he created and set up, for Chemchina tyres division, who became the main shareholder of Pirelli in 2015, the Industrial Engineering organization in charge of the management of the efficiency and the competitiveness of its factories in China. This enables Pirelli’s new shareholder to be more competitive on the global market.

e uro pe .busi ne ssc hi e f.c o m

PROMETEON TYRE GROUP

Your PROGRESSION is our OBSESSION Our history EFESO was born in the eighties as a consulting boutique, mainly for manufacturing clients with a focus on automotive industry. Our hundreds of multi-site operation performance improvement programmes have enabled many clients to be awarded the prestigious TPM Awards from JIPM.

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Partners for Progression Excellence In a world with great volatility and high velocity, we help accelerate the progression of our clients, enabling them to reach the pace of change required to survive and thrive.

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We integrate technical methodologies with human change expertise, developing a virtuous cycle of hard and soft achievements.

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MONTH 2018

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M A N U FA C T U R I N G

shop floor with all of the different teams in order to foster collaboration able work on and execute an efficien-

and tackle challenges together in order

cy improvement strategy.”

to grow and succeed together. “This

Also, creating mixed and interfunction-

level of collaboration ensures that we

al teams that go from “success stories” to

as an organisation win together,” he

“success stories” and celebrating the

says. “Our most important asset and

collective successes, is essential in the

key to our success is our PEOPLE. The

process of creating a unique company

employees, each and every one of

and a common culture.

them, create true value and we need

In fact, celebrating collective successes generates an acceleration of team work, while celebrating

each of them to adopt and be involved in the change process” As a testament to the success of

individual successes generates bad

this methodology and collaborative

competition and frustration. This saw

approach, during the first quarter of

Ghesquières implement a number of

2018, the Industrial Engineering team

Kaizen (improvement) activities on the

was recognised twice by ChemChina e uro pe .busi ne ssc hief. com

177

PROMETEON TYRE GROUP

(the major shareholder of Prometeon Tyre Group) at the yearly awards ceremony for achieving outstanding results in efficiency and for implementing innovative methodologies. For Ghesquières, this recognition represents a solid foundation on which he and his teams can build as the company continues to grow.

While people are the most important resource to Prometeon’s efficiency journey, the impact of technology cannot be understated. Industry 4.0 has already played a key role in delivering efficiency and success for the group and Ghesquières firmly believes that it will only continue to unlock new opportunities in the future. The company has already significantly invested and implemented data analytics solutions, dynamic simulation technology designed for 178

resource planning, and online tools and platforms that enable seamless operations management from top management right down to the shop floor.

“Take Virtual Reality (VR) as an example,” says Ghesquières. “We can now simulate the issues we usually encounter during the production process without entering the process at all. This is something that can only be done thanks to a simulator. No other technology, neither augmented or mixed reality, nor the real machine itself can guarantee the same result. Thanks to this, we have already reduced the training time of the operators on this type of process by 25%.”

Through the use of data analytics, Prometeon can automatically collate information and data that would historically have been collected by hand, transforming the non-value adding data-crushing time in problem solving and value-added improvements.

NOVEMBER 2018

M A N U FA C T U R I N G

“ WE HAD TO LOOK AT A WAY OF ALIGNING QUALITY, INTEGRITY AND STANDARDS OF THE PRODUCTS WITHOUT INCURRING ADDITIONAL COSTS, LOSS OF VOLUME AND WITHOUT INCREASING THE HEADCOUNT” — Hervé Ghesquières, Global Head of Industrial Engineering at Prometeon Tyre Group

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PROMETEON TYRE GROUP

“ THE TRUTH IS, IMPROVEMENT HAS NO END AND NEITHER DOES EFFICIENCY. IN ORDER TO CONTINUE TO DELIVER ON THIS, WE ARE INVOLVING ALL THE BUSINESS FUNCTIONS TO ACCELERATE THE EFFICIENCY GENERATION”

180

— Hervé Ghesquières, Global Head of Industrial Engineering at Prometeon Tyre Group

As Prometeon continues this journey of

contributed to Prometeon’s success

efficient transformation, Ghesquières

are EFESO Consulting and virtual shop

recognises that the successes he and

floor management company Staufen

his teams have achieved so far would

Italia. “EFESO has been working with

not have been possible without key

us since the beginning of our adven-

partnerships. He sees these partner-

ture, supporting us in defining the

ships as a little different from tradition-

roadmap and guidelines to design our

al client-supplier relationships; rather,

manufacturing transformation

they are real partnerships that develop

roadmap,” he says. “They clearly

solutions together and share ideas in

understood our business needs and

order to define a common solution to

helped defining a vision, set priorities

reach the goals.

and support us in structuring a

Two key partners that have really NOVEMBER 2018

high-performance organisation.

M A N U FA C T U R I N G

operations, but ultimately it is one that serves the end customer. Prometeon has a clear vision to be one of the leaders of the supplier for Tier 1 Original Equipment manufacturers (OEMs) in the truck, bus, agriculture and off-road automotive industry. In order to get there, Ghesquières believes that it must continue to grow and evolve to be efficient, and to increase the quality of the products and services offered to the customers.

“Our team will continue to play a key role in achieving this,” he says. “We will prepare the industrial footprint, continue to adapt the processes and machines for more premium products, continuously increase the knowledge With Reviathech, the company support-

and expertise of the teams and always

ed us on designing ad-hoc training

put our people at the core of our

systems, using virtual reality. Their

strategy, by always increase their

simulators were designed focusing on

involvement and motivation to deliver

the right added value, enabling to have

a higher standard for our company and

the maximum efficiency of the training,

our shareholders.”

with the lowest possible design costs.

They are certified as training company and their expertise on that field helped us a lot as well.”

This transformation has been centred around the quality of the product and the efficiency of the e uro pe .busi ne ssc hief. com

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LONDON BOROUGH OF WALTHAM FOREST COUNCIL

Creating value through innovation WRIT TEN BY

CATHERINE S TURM AN PRODUCED BY

RICHARD DURR ANT

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As the demands on Council budgets rise, local Councils have embraced shared services in procurement to help deliver value for money and enhance return on investment

P

roviding an array of services, from adult social care, housing, environmental and leisure services, education and vocational training, and

more, London Borough of Waltham Forest supports more than a quarter of a million citizens in northeast London.

Encompassing a multifarious portfolio, its procurement division has subsequently faced a number of challenges 184

amidst a changing economic climate.

Moving from central to local government services, via a quango, Director of Supply Chain, Dave Levy, has been a key figure in the public sector procurement industry for more than two decades. With a passion for delivering effective public services through procurement and supplier relationships and adding value across its services, he has led the borough’s procurement service for nearly 10 years.

Over the last two years his role has broadened to include contract management, business intelligence, insurance and risk, as well as its corporate complaints team.

“Procurement takes up the bulk of my time, but I also run a shared procurement service with another London borough, Redbridge. I have had to change the way that public sector procurement behaves,” he says.

“Procurement used to be very much focused on compliance, process, following regulations – those days are gone.

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S U P P LY C H A I N

185

Of course, that is still needed but the emphasis now is on people that have a bit of commercial know-how, can identify opportunities and deliver on those, influence service redesign and undertake more effective supply chain management.�

As public procurement moves away from process and towards attracting those with a range of skills, automation and new digital tools will further revolutionise the industry. Utilising electronic tendering and spend analytics more effectively will further impact the ways in which traditional services are delivered. e uro pe .busi ne ssc hief. com

186

“ The transformation of procurement from a transactional back office function when I arrived to a strategic support service is testament to the ambitions of the authorities and also a credit to the staff” — David Levy Director of Supply Chain

NOVEMBER 2018

“When I joined procurement, it was very much around process and compliance.

That has changed. Now it’s about making sure we deliver the added value,” he adds.

“Making sure we deliver outcomes, that we deliver social value through our contracts and other essential policies.

This includes paying the London living wage and eradicating modern slavery throughout the supply chain. That is why it’s important that that we’ve got people within the organisation that have the know-how to make this happen.”

Creating the first local authority shared procurement function in the

S U P P LY C H A I N

CLICK TO WATCH : ‘MOMENTS IN RECYCLE IN WALTHAM FOREST’ 187 Capital with the north London borough

where there may be examples where

of Enfield in 2011, the council has taken

one borough has done something

all lessons learnt and applied the learning

innovative or even something that’s

from that arrangement to develop its

not quite worked and use that to inform

partnership with Redbridge. Whilst

solutions at the other borough.

local authorities continue to struggle

Sometimes the benefits of joint working

to recruit and retain talent, its shared

are less obvious, but the simple efficiency

service has enabled the two boroughs

benefits of doing something once, there’s

to look at its procurement activities and

a potential financial benefit. There’s also

formulate joint arrangements to drive

a cost benefit in sharing experiences,

long-term advantages.

learning and maximising efficiency.

“We’ll look at economies of scale where

“This is where I am most proud,

possible in areas such as indirect spend

delivering the shared service with

but we can also learn from each borough.

Enfield and later with Redbridge. The

For example, in areas such as social care,

transformation of procurement from e uro pe .busi ne ssc hief. com

188

“ As the demands on budgets rise, local Councils have embraced shared services in procurement to help deliver value for money and enhance return on investment.”

— David Levy, Director of Supply Chain

NOVEMBER 2018

S U P P LY C H A I N

a transactional back office function

partnership with the client service

when I arrived to a strategic support

areas to deliver contracts and supports

service is testament to the

all associated strategic supply chain

ambitions of the authorities

relationships. Additionally, he developed

and also a credit to the staff

the council’s Contract Management

who deliver on a day

Framework, setting out key standards

to day basis. We buy everything

relating to contract reviews, risk manage-

from paperclips to education,

ment, issue management and planning.

social care and new buildings.

There aren’t many jobs where you get involved in so many diverse areas.”

“Most contracts are managed operationally by leads within service areas, so the client department will manage those contracts. If it’s a strategic

Managing all procurement

contract, if it’s one of our key partners,

activities for anything over the EU

then we get involved from a commer-

threshold, Levy’s team works in

cial perspective,” he explains.

E X E C U T I V E P R OF IL E

David Levy, Director of Supply Chain David Levy is an experienced strategic procurement and contract management practitioner. He is a change agent responsible for transforming procurement functions and delivering savings.

David’s specialities span procurement, contract management, team development, programme management, project management, local and central government and category management.

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189

How Did We Help Waltham Forest?

Matrix SCM help private organisations, local councils, and other Government bodies deliver and maintain vital services by supplying temporary and permanent staff.

Our market-leading solutions include Neutral Vendor Managed Services, technology-only approaches to support in-house teams, or Hybrid ‘Blended’ models.

The London Borough of Waltham Forest partnered with Matrix SCM since 2012 and achieved recruitment savings in excess of £5.4m through our Neutral Vendor Managed Service model.

Reducing costs by 8% to 12%, maintaining 99.6% fulfilment rates, and guaranteeing workers are 100% compliant.

Get In Touch To See How We Can Help You Please contact Chris Grimes on 0844 372 1534 or visit www.matrix-scm.com for more information.

“ When I joined procurement, it was very much around process and compliance.That has changed. Now it’s about making sure we deliver the added value” — David Levy Director of Supply Chain

NOVEMBER 2018

“We still have operational meetings and they’ll manage the service and contract on a day-to-day basis but on the strategic side, we’ll get involved to ensure that the overall objectives of that contract are met, that there is alignment at a strategic level between both parties and deal with any commercial issues that arise.”

The council is keen to driving continuous improvement and efficiency through technology. An example of this is their contract with Matrix.

“In terms of our innovative procurement methods and technology, Matrix is one

S U P P LY C H A I N

of the council’s strategic suppliers, spending up to £20mn (US$26.1mn) per annum on agency staff. We have worked successfully with them for a number for years now, where they act as a neutral vendor and source our requirements from their supply chain. The source to pay process is fully electronic with CVs, timesheets and invoicing all handled within the system with appropriate financial approvals built into the workflow.

As our needs have changed over time Matrix has worked in partnership with the council to develop a hybrid solution

191

with tailored supply chains for different job types e.g. hard to fill areas,” says Levy.

“We have also implemented a number

Whilst all local authorities in London

of Dynamic Purchasing Systems (DPS)

have adopted an electronic tendering

using AdamHTT to enable a fully

system, the council has adopted

electronic, EU compliant, sourcing

a collaborative e-tendering system

solutions for social care (homecare),

which undertakes all associated

special educational needs transport,

procurement activities.

temporary accommodation and most

“Whether you are after a quote for

recently, Specialist Professional

£10,000, or you’re going after a multi-

Services. This last category is an

million-pound contract, it all goes through

innovative approach to buying consul-

that system and ultimately published

tancy and covers 20 categories of

on our contracts register. It ensures

professional services. It is also open to

transparency and allows potential

the wider public sector and provides

suppliers to bid for contract opportuni-

a more effective alternative to procuring

ties across the Capital,” he adds.

consultancy than traditional frameworks.” e uro pe .busi ne ssc hief. com

192

NOVEMBER 2018

S U P P LY C H A I N

19

London boroughs adopted the London Tender Portal

1st For shared business

193

function — North London Borough

250,000

People supported by London Borough of Waltham Forest

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194

In such a mature market, collabora-

stand the markets in which it operates.

tion has, therefore, become vital to

Investing in digital product Atamis has

enable more effective sourcing of goods

allowed data to be explored fully to

and services. 23 London boroughs

identify opportunities, where the council

have subsequently adopted the London

has looked closely at its categories and

Tender Portal, where suppliers can

transform its supply chain management

sign up, pick sectors of interest and

capabilities.

will receive an alert when a local auth-

“For example, we could look at price

ority has an opportunity and bid for

differentials for the same product or

new prospects.

service. We might have areas where

Bringing on board new digital tools

we’ve not got much in the way of a local

has enabled the council to transform

supply chain, and look at what we can

its spend analytics and further under-

do to help that. We use spend analytics

NOVEMBER 2018

S U P P LY C H A I N

“There’s a lot more we can do with spend data through our business intelligence side, such as cross-matching service performance data, with spend and budget data. We can then explore for example, if we have a really high performing function What are we spending on that? What outcomes are being delivered? Is it underpinned by lots of contracts? I think this would be really valuable in the future in determining our ROI. “We’ve been approaching this over the summer doing a proof of concept with Cloudwick and Amazon Web Services, using things like natural language processing and machine an awful lot, but there’s a lot more that

learning to identify the potential use of

we can do with it,” he says.

such tools to help us deliver services

“Public sector bodies have to publish spend of £250 plus a month, and there

more effectively.”

Levy is eager to enhance capacity

are companies out there that will do

and capability across the organisa-

analysis from that. They take that data

tions. Developing a training programme

and send it back to you in a format which

for staff, covering everything from the

enables you to interrogate it. There are

basics around process to sustainable

some advantages because you haven’t

procurement, social value and contract

got to do lots of data cleansing, although

management, the tool encompasses

it’s not as rich as our own data, (it’s

the entire procurement cycle.

fairly high level) it does at least enable you to start asking questions.

“Some elements of the training programme are integral. Without it, people e uro pe .busi ne ssc hief. com

195

can’t do what they need to do, training on the e-tendering portal must be done in conjunction with contract procedure rules, so that staff not only understand what they have to do but more importantly why. The big push at the moment within the boroughs is around social value but it’s no good if just comes from leads in procurement. We need this to be embedded in the design of services and contracts so I need to get senior buy-in from both boroughs, and elected Members to champion some of these 196

causes,” he states.

Brexit is naturally a major issue at the moment and recently the Council has established a working group and held risk workshops to look at the potential impact and to enable scenario planning.

“There is no doubt that if freedom of movement becomes an issue it will impact our supply chain with regards access to labour. We’ve also got issues in London within social care and the construction sector”, he says.

“Medium to long-term, we will look at the pipeline of developments that are going to go on in the different boroughs and we can use this as an opportunity to attract and train apprentices to NOVEMBER 2018

S U P P LY C H A I N

plug these gaps. Whilst it’s

“ We have a passion for delivering effective public services through procurement and supplier relationships and adding value across its services” — David Levy Director of Supply Chain

going to be a turbulent period, we know we have to keep local services running and most services are underpinned by contracts and third parties in some way so ensuring that our suppliers are planning for Brexit is also key.”

Levy is passionate about the value that public sector procurement can add, and to ensure that the procurement function remains valued, Levy continually strives to ensure that the procurement team is viewed

as a critical friend that delivers value for money across all services delivered in Waltham Forest. Creativity, delivering exceptional results and driving value will remain its key goals as it serves citizens now and, in the future, bringing new solutions to the table and enabling a new breed of procurement professional through digitisation.

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Just in time to say goodbye.

Keeping you in the air. The best time to develop services for tomorrow’s technology is today. That’s why we’re doing that now — along with integrating new models, materials and technologies in our portfolio as quickly as possible. Our goal is to keep your aircraft off the ground, tomorrow as well as today. So let the future arrive: our services will be waiting. Talk to us.

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