SHW 2020 strategy

    Drive forward internationalisation – increase the lead in innovation
    1. Home
    2. The company
    3. Strategy

    “SHW 2020” strategy

    In light of the market and industry trends, priority has been given to the expansion of our international footprint, our group-wide operational excellence programme and increasing our technological and innovative edge over the competition.

    The core competence of SHW in hydraulics is precisely complemented by the acquisition of Lust Hybrid-Technik to add process knw-how in electronic circuit boards.

    The strategic fields of SHW

    SHW AG pursues the goal of expanding from the strong market position occupied by its Pumps and Engine Components and Brake Discs business segments in order to grow in future making efficient use of capital resources.

    Strategic field: internationalisation

    SHW has a foothold in three strategically relevant regions, Europe, NAFTA and China, in order to satisfy the increasing demand of its customers. The scalability of the pump business allows SHW to expand into other countries with relative ease – pursuing a best-cost-country approach – and making efficient use of capital. In this way, it can serve existing customers or new ones who already manufacture engines or gearboxes in the country or are planning to open new production operations in the country in question in future.

    In the course of the corporate strategy, SHW will expand the international footprint of Pumps and Engine Components business segment in a targeted fashion.

    In September 2016 the Chinese subsidiary, SHW Automotive Pumps (Kunshan) Co., Ltd., started producing variable engine oil pumps for a Chinese-European joint venture. In 2017 production of primary gearbox oil pumps and electric auxiliary gearbox oil pumps started for a leading Chinese automobile manufacturer. The start of production of a variable engine oil pump with balancer shaft for a Chinese-North American joint venture is scheduled for fiscal year 2018. The same applies to a variable engine oil pump for a Chinese-North American joint venture and an electric auxiliary gearbox oil pump for a European automobile manufacturer.

    The Canadian subsidiary, SHW Pumps & Engine Components Inc. will start the production of variable engine oil pumps for the global engine platform of a North American automobile manufacturer in fiscal year 2018. The start of production for a variable engine oil pump with a control valve for three and four-cylinder engines produced by the same customer is scheduled for 2019 on the basis of the current planning. For further penetration of the North American market, SHW Pumps & Engine Components Inc. will continue to focus on passenger car applications for the leading North American automobile manufacturers on the market as well as providers of automobile gearboxes. In addition to engine oil pumps, further potential is identified for electric gearbox pumps. In terms of industrial applications, the company will intensify its existing relationships to North American manufacturers of agricultural machines and construction machines.

    The Brazilian location plays an important role in the global production network of SHW. Together with the locations in North America and China, SHW is able to meet the requirement of having a global footprint, which is particularly important for North American automobile manufacturers.

    Since July 2014 engine oil pumps have been produced for a major US automobile manufacturer. Production of identical engine oil pumps for the European requirements of this customer started in the fiscal year 2017. The start of production of a variable engine oil pump for another North American customer is scheduled for 2019.

    Strategic field: innovation

    SHW is a success story hallmarked by product innovations that have made a significant contribution to the reduction of vehicle fuel consumption and consequently CO2 emissions. The company intends to keep its focus on this core competence in future and extend its market leadership in terms of technology and innovations for all types of powertrains.

    For example, in 2016 SHW decided to develop an electric cooling pump that can be used in both hybrid vehicles and in fully electric vehicles. This marketable pump for the electric powertrain marks the entrance of SHW into the market for purely electric vehicles.

    Due to the rising demand for vehicles with automatic gearboxes, SHW perceives high growth potential for gearbox oil pumps in the coming years. SHW is convinced that it can repeat its success with engine oil pumps on the basis of a new generation of primary gearbox oil pumps. For example, SHW has developed primary gearbox oil pumps in the form of two-stage rotary vane pumps that afford significant benefits in terms of weight, effectiveness and size. In addition, the standardisation of secondary gearbox oil pumps for the start-stop function has been driven forward in combination with a modular design.

    SHW also perceives the increasing electrification of auxiliary onboard equipment in association with the hybridisation of the powertrain and introduction of a 48V power network as another field of development offering additional market potential. With the acquisition of Lust Hybrid-Technik SHW has complemented its core competence in hydraulics with the corresponding expertise in electric drives and controls.

    The Brake Discs business segment is profiting from the trend towards lighter vehicle components. With the composite brake disc in its portfolio, SHW has an innovative product that combines weight reduction and improved braking performance.

    Strategic field: operative excellence

    Operative excellence involves aligning of the company towards continuous and dynamic optimisation of all processes and systems along the entire value chain.

    The second significant module relates to optimisation of the European production network with the commissioning of an additional location in Romania. This step involves the relocation of selected existing pump projects with less technical complexity and the allocation of selected new projects. The start of production is scheduled for the first half of 2018.