Posted: November 10th, 2015
You have been appointed Geschaftsfuhrer of KAVAG GmbH outside of Frankfurt,
Germany, by the Vice President International of a large US
engineering/manufacturing corporation. KAVAG has been struggling for years, mainly
due to the neglect by the parent company. Morale is poor. The demand for oil and
natural gas is expanding, there are tighter air pollution control laws, and
manufacturing companies in Eastern Europe and the Central Asia countries (newly
formed after breaking with the Soviet Union) are looking for business.
See the description of KAVAG’s Product lines for applications, competition,
customers, sales and gross margins. A brief summary is as follows:
• Catalytic & thermal incinerators. Most of the fabrication is
done in the KAVAG shop.
• Wet scrubbers. The application engineering (chemical) is the
key to the business and KAVAG has three chemical engineers. Most of the work is
sub-contracted to specialty shops, with final assembly and testing at in a
warehouse at corporate headquarters.
• Bag filters. Competition is intense with the bigger
fabricating shops having a distinct advantage. Fabrication is at KAVAG.
• Pulse Jet filters. The application engineering is key with
this specialty equipment (US patent expired 3 years ago) that is used in food
processing, veneer and furniture operations, mineral processing, metal fabrication
and textiles. Strong competition in most Common Market countries. The fabrication
is basically cutting, fitting and welding of steel, painting, assembly of blowers
and motors at KAVAG. The gross margins are 10% less than in the parent company, but
there is a lot of potential due to the strong US position/reputation..
• Dry Gas Scrubbers & Gas Separators. These are pressure
vessels which have layers of cyclones inside a heavy steel chamber. Application
engineering is key. The pressure vessels are sub-contracted to heavy industry
companies (80% of COGS), while the cyclones and accessory equipment is handled by
KAVAG (20% of COGS), but can done in a steel fabrication shop. KAVAG Dry Gas
Scrubbers have been installed at every compressor station on the Orenburg Gas
Pipeline running from central Russia to Western Europe. Almost every drilling
platform in the North Sea has a Gas Separator from KAVAG.
PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY AND GET A GOOD DISCOUNT 🙂
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