45 years professional experience, 25 years presence in China
07.03.1936 Born in Berlin1956 − 62 Study MachineTools and Production Technology at Technische Universität (TU), Berlin, Dipl.-Ing.
1962 − 67 Works Manager at Gustav Strohm, Machine Tools GmbH, Schwenningen (Swiss Type Lathes)
1969 − 81 Managing Director of Traub Machine Tools GmbH, Reichenbach/Fils (Automatic Lathes)
1982 − 89 President of DIAG –Deutsche Industrieanlagen Gesellschaft mbH., Berlin and
General Manager of Fritz Werner Berlin, Hermann Kolb, Köln and Gebr. Honsberg, Remscheidt (MC, FMS, SPM, TL)
1990 − 95 President of Fritz Werner, Machine Tool AG, Berlin (MC, FMS, FML)
1996 − 99 General Trustee of Burkhardt+Weber (Holding) GmbH, Karlsruhe with Burkhardt+Weber GmbH, Reutlingen, Steinel, Kolb,
SHW, Bokö, Max Müller (MC, TL, Milling and Drilling Machine, M+D-Machines, Turning Machines)
Supervisor of SES (Senior Expert Service) for Chinese Machine Tool Industry (Official Developing Service of the German Government)
2000 − 01 General Manger of BW Shenyang Machine Tool (BWSMT) between Shenyang Machine Tool Co.Ltd. (SMTCL) and Burkhardt+Weber (Holding)
Since 2002 Sales – Representative in China of Burkhardt+Weber, Bokö,
Zimmermann, Honsberg, IXION-AUERBACH, aba z&b with local offices in Shanghai and Dalian
Industrial Consulting:
- Dalian Machine Tool Group (DMTG) and INDEX Group
(arrangements to settle the JV-Company Index Dalian MT (IDM), 2002) - Shenyang Machine Tool Co.Ltd. (SMTCL) and Schiess AG
(arrangements to purchaise shares, 2003)
- Dalian Machine Tool Group (DMTG) and F. Zimmermann GmbH (arrangements to purchaise shares, 2004)
- Hangzhou Machine Tool Group (HZMTG) and aba z&b (arrangements to purchaise shares, 2005/06)
Awards, presented from Chinese Authorities
1999 Dalian Xinghai Friendship Award for Foreign Experts (honored citizenship of Dalian) handed over by Mayor Bo Xilai
Progressive thinking, professional working, personal acting
14.07.1962 Born in Berlin1983 − 88 Technical University (TU), Stuttgart, Germany: Machine Tools
University of Applied Sience, Esslingen, Germany.
Master Degree in Production Technology , Dipl.-Ing. (FH)
1989 − 90 Sales Engineer, Bielomatic Leuze GmbH & Co., Neuffen, Germany Products: Printing machines, collator, responsible: Germany, USA
1990 − 95 Sales Engineer, Schaudt GmbH, Stuttgart, Germany
Products: CNC Cylindrical Grinding and Special Purpose Grinding Machines (SPGM)
Project Manager for quotation, design, cost controlling and market introduction of new product lines include advertising and quotation. Sales Manager for North, Mid and South America.
1996 − 99 Product Manager at United Grinding Technologies, Dayton, Ohio, USA. responsible for the Schaudt product lines
2000 − 03 President of INDEX Corporation, USA
Products: Fully automized horizontal and vertical CNC-Turning Machines Since 2004 H + C HAMMER − Industrial Consulting
Industrial consultant for German and major Chinese machine tool companies in partnership with my father Helmut Hammer.
- Hangzhou Machine Tool Group and aba z&b (acquisition of share, 2005) - Auerbach GmbH and Dalian Machine Tool Group (DMTG)
(arrangements for licence agreements, 2006)
- DVS Group (represents Präwema, Gear Grinding, Pittler, Turning, Buderus, Circular Grinding and others) asked for a Marketing- and Feasability-Study, based on presentation visits in the Chinese Automotive Industry, 2007 - Bosch Rexroth purchase several production equipments from Dalian Machine Tool Group (DMTG) to fulfill the contract agreements an external Project Management has been requested (2007/08)
Additional studies and competence
Export business, Export Akademie, Baden-Wuerttemberg Technical Sales, VDI
Produktmanagement, FH-Pforzheim
Building trustful relationships
The
mentality of Germans and Chinese
has quite some common
aspects but on the other hand also shows great differences. Both
equally embrace hard work, diligence and determination.
Ger-man virtues such as reliability, technical competence and
orga-nizing abilities are much valued in China. Although feelings are
rarely expressed in words, the Chinese expects business to be
personal. Reliably friendship and trustful partnership is highly
recognized and preceding a jointly beneficial and long-term co
-operation.
Our task and strength is building a
bridge between future
part-ners
, based on the confidence they both have in us. By explaining
each side the different mental, cultural and intellectual
perso-nalities we develop a solid base of trust between the partners. In
doing this we benefit from the long-term experience in dealing
with business leaders and managements in China and Germany.
In both countries we have close contacts to key leaders in
busi-ness, universities and associations as well as the related
govern-ment departgovern-ments.
Our efforts in building trustful relationships are based on our
experience and contacts and are focused on three fields of ac
-tivities:
market entry project management share acquisition
Our expertise is funded in
machine tools
,
production technology
and turn key projects. Bringing together each strength into one
team. You can find out more about our individual services and
As for market entries, our support considers to a large extent your individual preconditions. In case of no or limited contacts in China we offer the following:
• Market study including product presentations and questionnaire at selected target customers.
• Establishing contact and evaluate potential local distributors with suitable sales expertise.
• Propose market strategies with action plan, time line, budget and economic analysis.
• Organizing and carry out visits to potential customers and local competitors.
In case of sales activities already exist, we support the build up of an effective sales network:
• Search for suitable, local distributors who work area-wide or are focused on special trades, and have the required qualification and are willing to fully identify with your products. Excellent customer contact and a good sales record are mandatory.
• Develop concepts for building up an efficient services and spare part business, either with sub-providers or exclusive and independent. Calculation of profitability and realistic time schedule can be furnished upon request.
If to establish your own representation with service and spare part supply, we can provide information about the registration procedures, cost structure, steps of implementation and prepare the formalities on site:
• Develop a detailed plan of procedures, cost and timeline up to the registration. Develop budget and profit projection for the startup phase.
• Propose suitable locations and office space; support the search for qualified personal.
• Handling of all formalities in the registration process of a REP-Office and employment of local personnel, recommending local auditor, CPA and lawyers.
We offer to handle the project management in China as coordinator or fully authorized agent for different types of marketing tasks and projects. Some typical projects are:
• Coordination of final acceptance of complex production lines with dedicated machining technologies. This includes inspection of the facilities, foundation, installation and initial start-up. Test cutting of work pieces up to final acceptance with possible monitoring of the start-up production. We take care of the meeting notes, conduct of negotiations and composition of written agreements. Our professional and independent conduct greatly reduces the usual tension and often results in faster agreements.
• In case of Chinese sub suppliers are involved in complex projects, then for these delive-ries we offer the necessary project management including providing supplier’s liaison and support. This begins with the negotiations and order placement and continues with ongoing progress check and timeline. Monitoring of final acceptance and integration of components into the main system are available upon request.
• Professional organization and participation in exhibitions and industrial colloquiums. This includes the operational and cost planning, layout of presentation, public relation, publi-cation and specific customer information.
• Increasingly German companies place larger orders with Chinese machine tool manufac-turers. To ensure a smooth and professional order processing it requires a trustful, know-ledgeable and competent project manager on site. Experienced senior Chinese engineers are available to meet your requirements. Continuous progress reporting and plan of action upon deviation if milestones or agreed qualities are not met and will be timely solved to-gether with the supplier’s management and the client if necessary.
An additional focus of our activities is the coordination of share acquisitions. After being con-tacted either from Chinese or German clients we usually start with a search for a suitable partner. After a promising relationship is proposed, the first meeting with introduction of the representatives has to be organized. In case both partners show their serious interest, they jointly agree on the next steps in the procedure, define strategic goals, feasibility and obtai-nable benefits. Usually this will be carried out by preparing a Feasibility- and Due Diligence Study, which could be managed by us if jointly required.
Next step in the process is writing a Letter of Intent, which describes the scope and scale of conditions of the planed transactions and a time line to process the necessary steps until finalizing the sales contract. After both partners have agreed and notarized there of, together with the respective legal advisors we accompany each party in wording and negotiation of the contracts. This phase is critical and requires our independent mediation to bridge the gap of different mentalities and experiences. Naturally the different positions of the lawyers involved results in uncertainties on both sides which require an insightful negotiation.
The desired conclusion of contract – up to 12 to 18 months after initial contact – is followed by a joyful ceremony of all participants and important partners of both companies including an-nouncements to employees, business partners and the public. Many times it is overlooked that
the actual work has yet to begin, which may be accompanied with disillusion. Both partners are walking into new territory to materialize vision once set up. Also in this phase our advice and participation is often requested.
Retrospectively none of the partners has regrets about their decision. The achieved benefits outweigh even if all initial expectations could not be fully realized as the case studies impres-sively attest to. All cases show that the made experience have lead to new awareness and perception. The strategic positioning of the companies have greatly benefited of this.
The Firma F. Zimmermann in Denkendorf is a leading manufacturer of gantry milling ma-chines which are predominately used in the mold and die production. In the end of 2000 the managing owner, Mr. Rudolf Gänzle offered Mr. Hammer sen. to introduce his products into the totally unknown Chinese market. Since it was Mr. Hammers intention to continue his en-gagement in China and based on his previous experience on sales of similar products in China a simple handshake confirmed the agreement made. This was the beginning of a close and trustful partnership which was rewarded by extraordinary sales success.
A first market analysis showed that the general mold and die industry rarely purchased foreign machine tools whereas the Chinese car and aircraft industry preferred imported machines. Especially the innovative high speed cutting of aluminum consequently provided good oppor-tunities for Zimmermann to penetrate the aircraft industry. Countless customer visits with presentations about this new technology were made until it resulted in a first sales negotia-tion. Sales agents were changed out during this process until the suitable partner was found with the most in-depth contacts.
This start up phase lasted approx. one year then things started happening fast. We won almost every tender although priced higher than the competition. After the start up phase we could meet all technical requirements. Extensive adaptation and complete new machine designs were necessary, which in a short time were executed consequently by Zimmermann. Especially in the recession years of 2003 and 2004 the quickly increased turnover in China
was of substantial significance to the company and made up to 50% of total sales. The ever increasing sales volume has settled down ranging from 25% to 30%.
This success is based on many factors. First of all it is the impressive commitment of the owner and his management team as well the Chinese sales agent. Further it is the set up of the representative office in Shanghai. It worked as the interface between customers, sales agents and parent company and provided service for many activities including organization of exhibitions, appointments and travel arrangements. As the chief representative for China Mr. Hammer sen. was giving full authority to largely conduct the negotiations autonomously. The convincing mutual trust and the comprehensive technical capability were crucial in gaining sales orders.
In the course of our REP-Office operation for F. Zimmermann GmbH, we were repeatedly assigned the projects management for installation of production equipmentand run off
including conduct of negotiations at customers site. Until then the biggest order for F. Zim-mermann in China was for 5 gantry milling machines with 5 interpolating CNC-axis for the customer Chengdu Aircraft Group. The project handling was done in segments and lasted over 10 month:
• Inspection and acceptance of installation site and condition of foundation • Assembly and commissioning of machines including acceptance of peripheral components purchased from local suppliers
• Geometrical and function tests of machine and peripheral components • Set up and acceptance procedure for test pieces followed by test production
• Negotiation on acceptance and monitoring commencement of the start up production
The responsible project management for exhibition and participation at seminars is part of our common services for F. Zimmermann. In close consultation with the responsible de-partments the organization of the show participation notably for the CIMT, Beijing and CNC-Machine Tool Show, Shanghai has to be managed:
• Trade fair planning in regards of exhibits, floor plan, costs and timelines • Booth design, booth set up and staff assignment
• Coordination at tradeshow and customer care
• Dismantling, accounting, show analysis, follow up activities
An additional demand of external project management for production equipment was requested for orders placed at Chinese suppliers. The company BOSCH Rexroth placed an order about various machine tool equipment at the Dalian Machine Tool Group (DMTG), which was intended to be used at the local production site. Due to a lack of experience with Chinese suppliers, Mr. Carsten Hammer was entrusted with the project management at the supplier site.
This challenging task included the following:
• Clarification of technical specification, order processing and terms of examination in the purchase order
• Periodical inspection of manufacturing progress, check and balance to project schedule, action plan of correction
• Verbal and written reporting about status quo and corrective measures
Such an external, on site project monitoring requires highly professional competency and great intuition. Only then an effective external project management can have the necessary acceptance at the Chinese supplier.
The consolidation of companies interested in uni- and bilateral share acquisitions currently represents the main focus of our consulting activities. For more than 10 years in the field of industrial consulting we could participate in various forming of joint ventures and partici-pations. A summary of the examples are listed chronological:
• At the end of 1999 the Burkhardt and Weber (Holding) GmbH, Karlsruhe, Germany (BWH) and the Shenyang Machine Tool Co. Ltd (SMTCL) equally founded a joint venture, the BW Machine Tool Co. Ltd, (BWSMT). Mr. Hammer sen. significantly contributed to that and for two years assumed the position of general manager. In the year 2001 after insolvency of the BW-group, SMTCL took over 100% of the shares and has successfully developed it further.
• In the year 2002 the INDEX—Werke, Esslingen, Germany and the Dalian Tool Group Co. LTD (DMTG) have formed a joint venture named the INDEX Dalian Machine Tool Ltd. (IDM) with INDEX being the majority share holder. Mr. Hammer sen. participated largely in the formation and consulted in the start up phase. The company operates successfully and grows steadily.
• In the beginning of the year 2004 talks were arranged between the SCHIESS AG, Aschers-leben and the Shenyang Machine Tool Co. Ltd, (SMTCL) with the purpose of minority parti-cipation by SMTCL. The talks could not be brought to an end due to the insolvency of SCHIESS. Later SMTCL took over the newly founded SCHIESS GmbH as majority share holder. The company is very successful, expanded step by step and is run by the German management.
• In the end of 2004 the Dalian Machine Tool Group Co. Ltd., (DMTG) participated in the F. Zimmermann GmbH, Denkendorf as majority share holder. The resulting financial strengthening of the German daughter company was used for further development of the product program, open up new markets and for diversification of the products. The existing management continued to be in the hands of the German share holder whereas the Chinese partner does not take any influence in the daily operation. Mr. Hammer sen. was substantially involved in building the parnership and in the formation of the contract.
• In spring of 2005 the Hangzhou Machine Tool Co. Ltd. (HMTC) acquired the majori-ty in the aba z&b Schleifmaschinen GmbH, Reutlingen, in conjunction with a substan-tial financial improvement of the company. Again, the management continued indepen-dently under the lead of the German general manager. Since then in every aspect the company has made positive improvements. Beginning with a successful search for the partner and strategic planning, clarification of sales terms and transfer of shares un-til the negotiation phase and contract signing, H+C Hammer actively have been invol-ved and gave the necessary support to jointly overcome and solve any critical phases.
Germany (Main office)
H + C HAMMER − Industrial Consulting
Bernadottestraße 9 D-14193 Berlin Germany Fon: +49 (0) 30 / 826 14 21 Fax: +49 (0) 30 / 826 28 96
Helmut Hammer (President)
Mobil Deutschland: +49 (0)171 / 414 68 93 Mobil China: +86 (0)1390 / 409 7105 E-Mail: H-Hammer@t-online.de
Carsten Hammer (CEO)
Mobil Deutschland: +49 (0)151 / 1554 83 75 Mobil China: +86 (0)1390 / 409 5102 E-Mail: chammer@smtllc.com
China (Representative Offices)
Shanghai Office
Fon: 021 / 629 439 66 Fax: 021 / 628 152 78 Unit 1602, Block A, No. 699
Xinhua Road, Shanghai, PC 200052, PRC
Dalian Office
Fon: 0411 / 846 763 19 Fax: 0411 / 846 729 07
Heishijiao Street 74-1-5-1, Shahekou District Dalian, PC 116023, Liaoning Province, PRC
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