Many languages, one voice
Article from TÜV SÜD Journal 3/2010
 | TÜV SÜD has locations in nearly 50 countries around the world. In future years, the company has particularly set its sights on generating strong growth in Asia as well as in Central and Eastern Europe. The company's customers will be the ones who will profit the most from this international focus – thanks to globally standardized services provided by a single source. |
Welkom« – »welcome«, this was the way that the South African province of Western Cape greeted soccer fans and players to the World Cup this summer – in Afrikaans. »Welkom« is also a greeting that recently began to be used at TÜV SÜD: The company is entering the automotive inspection business on the southern tip of Africa. Just a few weeks ago, the Group acquired a minority stake in the vehicle-inspection chain »AVTS Roadworthy Stations« that is based in Cape Town. The company intends to generate strong growth on the Cape of Good Hope in years to come and become the market leader in the Cape Town region.
Present in all major markets
About 13,000 kilometers away, TÜV SÜD has already reached its goal of market leadership: About a year ago, the company acquired GNEC, the leading service provider for inspections and assessments of nuclear power plants in South Korea. GNEC assists manufacturers and operators with the planning and approval of new plants, issues certifications and trains personnel.
Both examples make one point clear: TÜV SÜD has been a global group for some time now. »We have a local presence in all major markets,« says TÜV SÜD CEO Dr. Axel Stepken. »This enables us to offer our globally active customers standardized, single-source services worldwide.« In times when companies procure services and goods internationally, companies like TÜV SÜD must also be globally positioned.
The meaning of such a worldwide presence is rising as well: The issue of »global sourcing« will take on additional significance in years to come, according to the business consulting company Capgemini. This means one thing: Companies that have their main production facilities in such places as Europe or North America are procuring more and more components and services around the world. And they need companies like TÜV SÜD to assist them with quality management and supplier monitoring.
Systematic international growth
As a result, TÜV SÜD has been pursuing a systematic strategy of internationalization and growth for years now. »We see exceptional growth potential particularly in dynamic markets like Asia or Central and Eastern Europe,« Dr. Stepken says. »We also intend to generate strong growth in North America and the Middle East in future years.« Forty percent of revenue – as set in the strategic target – is to be produced outside Germany in the future. The international share is already 30 percent.
In Asia alone, TÜV SÜD employs about 3,000 people, most of whom work in China, India and Singapore. Large branches are also located in Thailand, Malaysia and Vietnam. At the beginning of this year, a national subsidiary was established in Sri Lanka: »Even though Sri Lanka may seem small at first glance, this country is an important textile exporter. All important international textile and retail companies as well as purchasing companies obtain large volumes of goods from this island country. With our own national subsidiary, we intend to offer our global customers improved service and more thoroughly tap growth potential,« Dr. Stepken said. Other national subsidiaries were set up in Ukraine, Switzerland and France in recent months. With the help of international acquisitions, TÜV SÜD is rapidly becoming established in the new markets: In recent months, it acquired the Texas company Mechanical Integrity, a specialist in non-destructive examinations and mechanical integrity, and PS Playground Certification based in Detroit, among others. This company tests and certifies playgrounds and playground equipment – TÜV SÜD is now the market leader in this area. »The acquisition of Playground was so important because we gained accreditation for the United States, one of the largest markets for playground equipment, as a result of it,« Dr. Stepken said.
Most significant risk-management adviser
TÜV SÜD also gained one other market-leadership position in recent months. By acquiring the U.S. company Global Risk Consultants, TÜV SÜD has become the world's most important adviser in the areas of risk management and loss prevention. »We have really stepped on the gas in terms of inorganic growth,« says Dr. Manfred Bayerlein, Chief Operating Officer. TÜV SÜD employees ensure safety in more than 40 languages today – and more will be added to them.