Customers want to know how we are looking to improve

"Sure, now’s the perfect time,” says an energetic voice on the phone. Andre Materne is driving from Singen, located near the German-Swiss border, to Prague. This experienced manager and director of Strojmetal Singen is keen on using his time as efficiently as possible.

Andre Materne is the director of Strojmetal Singen, a company that develops and sells forged aluminum and aluminum alloy parts for the automotive industry.

Do you come to the Czech Republic often?

Yes, every two weeks. We discuss various issues with our customers such as our offer, as well as new investments, all to ensure that we stick closely to our strategy.

What exactly do you do in Singen? What are you in charge of?

We take care of marketing and sales, as well as manufacturing forged aluminum and aluminum-alloy parts and components. In addition, we oversee business development, looking for new growth opportunities in the market and for geographical expansion. In Singen, we are expanding our marketing and sales departments to be able to penetrate the market with new products such as battery housings or special heavy parts for the MacPherson front suspension. We hired several new managers from our segment with similar experience. A third of our workforce are women and our average employee age is 42 years. This means we have a good mix of experienced and newer employees with a good education from renowned universities.

Who are your customers?

95% of them are car manufacturers. We are very proud to be one of the main suppliers of forged parts and components for Mercedes, AMG, BMW, Porsche, Audi, VW, Ford, GM, Volvo, Aston Martin, and tier 1 suppliers such as ZF, THK, Schaeffler, Raufoss, and Iljin.

What are you focusing on right now?

A lot of things. Primarily, marketing, sales and product development. Also, I’m looking for production opportunities in North America, another rapidly growing market in our sector. In addition to Bruntál and Kamenice, it would be our third premises. The recession, rising energy costs, and declining customer demand, especially in Europe, all present their own challenges. In such a serious situation, you need to have an excellent market network, which we, to our advantage, have managed to build over the years in Singen.

How are you coping with that?

This year as well as last year, we split the rising energy costs with our customers. It’s still a sensitive issue.

How does ESG affect your work and customer requirements?

It is something I’ve been personally conscious of for over a decade, because when you’re working with aluminum, sustainability is one of the key arguments. We recycle much better than our steel or carbon fiber competitors, which is a big advantage for us.

So, you haven’t noticed any changes?

We definitely need to change the way we think about production and purchasing. We need to create a database to track the current situation and where we can define clear goals for the future.

Can you be more specific?

Customers want to see that we have a clear plan for gradual decarbonization. They want to know what we plan to improve.

What do you think of MTX Group from a German perspective?

It’s a very diverse group that is spread across multiple industries. Based on the numbers I see, it’s very well managed. On top of that, our Kamenice forge is one of the best in Europe. As a new owner of Strojmetal, MTX pushes us and supports us in a very ambitious and professional manner. Our customers appreciate this strong alliance. It makes us highly credible and helps us land profitable, long-term contracts.

Is there something your Czech colleagues have taught you or that you have taught them?

Rather than teaching, I’d say we support one another. I have been working with Czechs for 20 years and I can see we complement and support each other perfectly. Both teams are very experienced and well-coordinated. We know how to use the best of both worlds in order to experience as much success as possible.

What does the market currently look like?

We have a lot of profitable contracts lined up all the way to 2036, totaling 1.6 billion EUR. I think it’s fair to say that our future is secure. The current state of the market, however, is a much bigger challenge. Our customers aren’t making as many cars as they expected. This year is critical because we’re 30% behind.

What can you do about it?

We need to share the additional costs caused by the current economic situation with our customers and suppliers in order to achieve a reasonable result in 2023. Forecasts say that the coming years should be better. In general, I’m optimistic about the market. We still need to get a bigger market share and we need to be cost-sensitive. As far as our carbon footprint is concerned, we need a clear approach from Strojmetal and MTX.

Andre Materne

Andre Materne began his career in 1991 at Alcan, Canada’s leading aluminum miner and processor. He remained in the industry and with the company and worked his way up through various management positions. He was there when Czech company Strojmetal began working closely with Alcan, as well as when they later founded their joint venture, Strojmetal Aluminium Forging, of which Strojmetal Singen is now a part. Andre Materne has been managing the latter for the past 12 years. Currently, there are about 20 employees who are involved in the sales and development of aluminum parts and aluminum-alloy parts, which are mainly supplied to car manufacturers.

Strojmetal Singen GmbH

A producer and vendor of forged, machined, and assembled parts from aluminum alloys for the automotive and transport industry. It also manufactures aluminum parts.