TÜV Rheinland: Course of Expansion Continued in 2012

2-2-2013 — /europawire.eu/ — TÜV Rheinland again posted good results in 2012, owing to the very dynamic growth recorded in previous years. Revenues generated by the global test service provider climbed well above EUR 1.5 billion for the first time with a profit of over EUR 110 million. “In a difficult market environment and faced with fierce competition, we achieved all of our key goals and, at the same time, laid the foundations for further growth in the years to come. All business streams and regions are in the black,” said Dr. Manfred Bayerlein, CEO of TÜV Rheinland AG. The employee headcount rose to over 17,200, with TÜV Rheinland creating 1,200 additional jobs through organic growth. Over 10,000 of the company’s staff members are now employed outside Germany.

In 2012, TÜV Rheinland posted growth in all key markets worldwide as well as in the domestic market. In Germany, revenues increased by well over 3% and the number of new employees also rose to around 250. Outside Germany, TÜV Rheinland saw revenues increase by over 10%. For the first time in its 140-year history, the company generated more than half of its revenues outside the domestic market.

In 2012, the strongest growth regions were India and the Middle East with almost 32% as well as South America – particularly Brazil – with over 18%. TÜV Rheinland also posted an above-average increase in business performance in North America and in the Asia-Pacific region including Japan. In China, growth cooled somewhat in 2012 following a number of years of extremely dynamic growth. However, the economy started to pick up again at the beginning of the year. At its laboratory in Hong Kong, TÜV Rheinland runs a 3-shift operation with well over 200 employees and now conducts up to 70,000 product and component tests a month at this facility alone.

One focus of the investment of over EUR 85 million in 2012 was on further expanding TÜV Rheinland’s global laboratory network. Its newly opened facilities included laboratories for testing harmful substances and textiles and for electrical and electronic products in Turkey, for testing harmful substances and textiles in India, for products and vehicle components in Saudi Arabia, and for batteries and energy technology in Osaka, Japan.

Strategy for 2017

“We aim to become the best sustainable, self-financed and independent provider of testing services. Our comprehensive strategy for 2017 sets out our objectives and defines how we aim to reach these objectives. With increasing profitability, we aim to almost double our sales revenues to EUR 2.7 billion over the next five years. This will ensure our long-term independence,” said Dr. Bayerlein.

A part of the strategy for the coming years also includes the expansion of our portfolio via value-creating acquisitions. In 2012, TÜV Rheinland strengthened the business through the integration of five carefully selected companies, particularly in the mobility and training sectors. Dr. Bayerlein: “Over the next few years, one of the key areas our investments will focus on is industrial business. Here, the increasing industrialization taking place in many threshold countries will provide an important impetus for growth. In addition, we will also be investing in the areas of further IT training and certification.”

In the area of industrial services, the company’s biggest business stream, TÜV Rheinland will continue to develop innovative testing methods and expand the highly promising project management sector. Here, the focus is no longer on the provision of individual testing services but on the accompaniment and monitoring of entire large-scale projects. TÜV Rheinland also expects to achieve significant growth from its involvement in the energy industry in general. This applies equally to further expansion of business relating to renewable sources of energy as well as to infrastructure and conventional power plant technology and the oil and gas industry. For example, shale gas production is currently gaining significant importance in North America – this is another market development that will be closely accompanied by TÜV Rheinland.

In the mobility industry, TÜV Rheinland will further expand the classic vehicle inspection business both throughout the whole of Germany and at international level. Another growth segment is damage reports and value appraisals, including the specialist market for high-value classic cars. TÜV Rheinland has already created the key basis for this at the start of 2013 through the acquisition of a company and by bundling activities in the Competence Center for Classic Cars. At international level, further efforts will be made to push services in the railway engineering sector.

Textile testing services is another area that is becoming increasingly more important for the entire testing industry. During the past 24 months, TÜV Rheinland has established and expanded its global network for the testing of textiles and leather, and now has laboratories at all key production sites and in all important markets. Among other things, the food laboratories in the TÜV Rheinland network perform sensory tests, testing of nutrient content and analyses of residues and toxic substances, as well as tests for freshness and perishableness, allergens and genetically modified organisms.

In terms of the training and consulting business stream, TÜV Rheinland will also focus on the expansion of IT training in addition to the conventional business relating to professional qualifications and further training. It is also expected that demand for neutral auditing and certification of systems and IT infrastructures will significantly increase in the future. TÜV Rheinland has already been operating in this field with great success for around ten years.

Dr. Manfred Bayerlein: “In the 140th year after our company was founded, we have created the basis for continued profitable growth. Our success is based on our global presence and the knowledge and skills of our employees relating to markets and new technologies, as well as on our independence and neutrality, flexibility and quality. These will continue to be the key pillars of our success in the future.”