19891990

1926 1927 1928

1942 1943

1944 1945 1946

The Company Newsletter ofAugust Rüggeberg GmbH & Co.MarienheideVol. 17, No. 31 September 1997

1897 1898 1899 1900 1901 1902 1903 1904 1905 1906 1907 1908 1909 1910 19111912 1913 1914 1915

1916 19171918

19191920

1957 1958 1959 1960 1961 1962 196319641965

1977 1978 1979 1980 1981 1982

1991 1992 1993 1994 1995 1996 1997

1936 1937

100 YEARS OF AUGUST RÜGGEBERG

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Before 1897Of poets, file cutters and “rough ridges”Files were known many centuries be-fore our era. The Greek poet Aesop,writing in the 6th century B.C., alreadycomposed a fable about “the serpentand the file”. In Roman history, too, files arefrequently mentioned, particularly asinstruments for working wood andmarble, precious stones and iron. In aletter by Theodoric the Great, datingback to the fifth century A.D., heexpresses his thanks for a shipment ofswords “so evenly sharp that you’dthink they were not finished with thefile but cast from a glowing furnace.”From Leonardo da Vinci, the greatpainter, sculptor and inventor, we havea sketch of a filemaking machine(approx. 1500) equipped with severalpointed knife-shaped hammers.Business at Rüggeberg commencedon a modest scale, yet with encour-aging success. In the small town ofRüggeberg (denoting “rough mountainridge”) in the Ennepetal-Altenvördearea, Johan Caspar Rüggeberg beganto produce the first files and raspstowards the end of the 18th century.

According to oral tradition, his shop in-itially performed only the actual toolforging operations. Steel was melted ina puddling furnace, shaped into rodsunder water-powered stretching ham-mers, then forged into blanks whichwere annealed in a furnace fired withbeechwood logs. The decarburizedlayer was filed off before the finishedblank was transferred to the cuttingshop for the teeth cutting process.

The small hammer forge is eventuallytaken over by the son, Johan Frie-drich, who contracts local farmers tocut files at home from blanks suppliedby the company. Also dating from thisperiod is the company’s logo, a horsejumping through the hoop.

Thalers, stubers and pfennigs werethe currency of the day. In the subse-quent currency reform, one thaler isexchanged for 3 marks. The price of amedium file, 300 mm in length, wouldthus have amounted to about 65pfennigs.

1897 - 1907Towards MarienheideThe industrialization changes thecountry’s social and economic fabric.The German economy is booming.Many file cutters from the Ennepetalvalley have left for the blossoming in-dustrial cities in the Ruhr basin.

Ancestral home: the Westphalian town of Rüggeberg

Johan Friedrich Rüggeberg produces thefirst files at Voerde

August Rüggeberg gives the company hisname

The first company photo of 1897.

Alfred, Emil and Robert Rüggeberg move the company to Marienheide

In search of skilled labour and morefavourable transport conditions,August Rüggeberg and his sons,Robert, Emil and Alfred, decide tomove the company to Marienheide,some 40 kilometres away.The new location is noted for its skilled

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manpower, organized mainly in theform of an extensive cottage industry.Rolling mills supplying the necessarysteel rods are situated virtually nextdoor.The first factory building, although stilla simple brick structure, reflects thecompany’s progress from a manufac-turing workshop to a modest industrialenterprise. The product range, ori-ginally consisting mainly of rough filesfor use by blacksmith’s shops, is ex-tended to a line of machinist’s filesand single-cut files employed mainlyfor sharpening saws. Sales - alreadyinvolving travel to Holland, Belgiumand Denmark - are originally handledby the three brothers themselves, be-fore a number of travelling salesmenand field representatives are hired.

In 1903, a patent is obtained for a“half-round file with spiral paths ar-ranged in serpentine lines on a roundback”

1917 - 1927Manpower and materialget scarceA series of bad harvests result in the“winter of famine” of 1917. By resort-ing to turnips as the main food source,the country barely escapes massstarvation. All food is strictly rationed.Siberian temperatures, falling as lowas -180 in the Rhineland, cripple theeconomy. Coal supplies are disruptedas the rivers are frozen solid. Thenews from Russia breeds civic unrestthroughout the German empire.Peace proposals from various govern-ments indicate a growing war weari-ness in Europe. Nevertheless, two moreyears must pass before Germany signsthe Versailles peace treaty imposed bythe allied powers.At Rüggeberg, the management’s primeconcern is to keep up production.Women take the place of conscriptedproduction workers on the assemblylines.Although only the file factory isoperating, sourcing sufficient raw ma-terials has become a serious problem.Through a determined effort, theshortage can eventually be overcome.

Producing files is still a laborious man-ual process. Bold entrepreneurs de-pend on the support of strong crafts-men, such as blacksmiths andgrinders. These supply the blankswhich are subsequently finished by filecutters using a hammer and chisel. To achieve teeth of even depth, thehammer must always fall on the chiselfrom the same height.

Packing room staff on the first loading dock

The company’s chauffeur, Karl Bellingrath, poses proudly with new ADLER car

A highly skilled file cutter can produce upto four files an hour, depending on thetype and size of the cut

A skilled workforce assembled approx. 1900

1907 - 1917Mobility and growth markthe course of progressIn 1907, a long-distance automobilerace captures the world’s attention. Theroute extends from Peking to Paris.After a two months’ ordeal over badroads, rutted dirt tracks and precipitousmountain passes, F. Scipione Borghesein his four-cylinder Itala car is the first topass the finish line.Four years later, in 1911, Rüggeberg’sacquisition of its first company carcauses a commotion of almost identicalproportions in and around Marienheide.Business progress is also reflected thecompany’s building and modernizingactivities. Addition of the first loadingdock serving the company’s packingroom makes shipping operations moreefficient as growing volumes of PFERDbrand files are sent out to the customer.

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1927 - 1937A new managementgenerationIn May 1927, Charles A. Lindberghcompletes his non-stop flight acrossthe Atlantic. Adolf Hitler holds his firstspeech in Berlin. The crisis of theWeimar Republic and its politicalparties is coming to a head. Electionresults reflect the disaffection of largeparts of the population. The GreatDepression and the moderate parties’inability to provide solutions pave theway for political extremism, giving riseto the most painful chapter in Germanhistory.

A far-sighted strategyearns Rüggeberg’sbreakthroughIn these days of economic and socialturmoil, Rüggeberg nevertheless suc-ceeds in pioneering a revolutionarybreakthrough in metalworking techno-logy. The linear motion of the traditionalfile is converted into rotary action. Thenew concept forms the basis for thedevelopment of the handheld rotarymilling cutter, a tool outperforming thecut file due to its optimized toothgeometry and angle of twist.

With far-sightedness, the company’sowners had identified the trend towardsan increasing use of power tools thatwould put an end to the dominance ofmanual files.

In 1928, Alfred Rüggeberg is appointedHead of Distribution by his father

Hans Rüggeberg follows in his fathersfootsteps in 1933 by taking over the management of Company Operations

Increased building activities emphasize the company’s growing status

The first trade fair brochures have a powerful appeal, even in the early years

Drive problems are solved by means ofan ingenious solution, the so-calledflexible shaft machine. This newtechnology represents a milestone thatwill lead to the replacement and human-ization of hard and labour-consumingmanual work.Determined to serve the needs of theemerging precision machining market,Rüggeberg launches the production ofmounted grinding points at about thesame time. In a brochure produced forthe 1936 Leipzig spring fair, a productrange about to evolve into a compre-hensive modular system of surface ma-chining tools is already impressivelypresented.

In 1942 Rüggeberg is granted the first patent for its rotary milling cutter

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PFERD - a worldwidepresence on trade fairsand exhibitionsA desire to keep up the dialoguewith customers, retailers and indus-try specialists has always charac-terized Rüggeberg’s approach. Ourtradition of exhibiting products ontrade fairs goes back to the start ofthe century.The theme of the company’s pre-sence on the 1936 Leipzig springfair is the “Exemplary Use of RotaryTools in Machining Materials of Inter-est”. At the first post-war industrialfair at Hannover in 1947, Rüggebergis likewise in attendance. Althoughthe booth floor still consists of peatmould, we are determined to meetthe public’s growing demand for in-formation about new products and

solutions, prices, and delivery con-ditions.Today, the Cologne Hardware Fairhas become the cornerstone ofRüggeberg’s trade fair activities.Our increasingly sophisticatedbooths have become the venue ofever new product presentations andlive demonstrations, while productinformation is disseminated in theform of a diverse range of catal-ogues, price lists and brochures.This grass-root marketing effort setsthe stage for each new sales year.But not only the trade fair “high-lights” are the subject of our atten-tion. Numerous small and in-houseexhibitions are becoming increas-ingly important and require a com-petent approach. Today, Rüggebergattends over 20 trade fairs eachyear, handling a designed trade fairarea of approx. 1000 sq.m.

1937 - 1947Manpower shortageamidst the ravages ofWorld War II The airship “Hindenburg” is destroyedby fire while landing at Lakehurst (NewYork). Although its cause is never fullyestablished, the accident marks theend of the once-promising airship ser-vice on the North Atlantic route.In the German empire, a system of ri-gid controls and coordination of publicopinion has been imposed. All politicalparties have either dissolved or subor-dinated themselves to NSDAP suprem-acy. Opponents of the government ha-ve been locked away in camps, or fled the country. Resistance is sup-pressed with cruelty and terror. Europe

is living on the eve of the SecondWorld War.

This period of history has a lasting im-pact on the development of our com-pany. Marienheide is surrounded bylarge armament factories, creating ageneral shortage of labour. Rüggebergdecides to erect a new facility in theWest Prussian town of Konitz. Theproduction of ceramic tools and themachinery department are shifted tothe new site. By this time the companyhas grown into Germany’s largest

manufacturer of mounted grindingpoints.

At the end of the war, the Konitz site islost. At Marienheide, the US authori-ties allow a re-start of productionactivities. The permit is later suspendedfor a brief period when British forcestake control of the region.

Vintage filemakingmachine made user-friendly

In the early ‘40s, a number of filemak-ing machines were purchased fromthe Backhaus company. All are of thesingle file production type and devoidof automatic functions. In the years

1943/44, some of these machines arerebuilt by Hermann Schmitz of Gogar-ten (Märchenwald), a gifted and ex-perienced file cutter. He manages toachieve a substantial improvement inthe user-friendliness of these machi-nes, as well as a reduction in non-productive cycles.

Increasing hardness1949 the production of carbide-tippedmilling cutters is already in full swing.The first units are still produced onconverted Kirmer machines. The late‘50s mark the start of our proprietarydevelopment of automatic hard metalgrinders, briefly referred to as HM I.The machines are followed by the HM II generation (1980) and by thesubsequent CNC-controlled HM III(1983) and HM IV (1993) types.

The company is forced to relocate toKonitz in West Prussia

In 1939, the Marienheide facility acquiresa new look

1997 Cologne Hardware FairVeteran filemaking machine restored tomint condition

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What are your thoughts, looking backon 100 years of company history?I was born in 1910, so the foundationof August Rüggeberg at Marienheidein 1897 took place before my time. Myfather and his brother, Robert, handeddown a flourishing company to myselfand my cousin, Alfred. When my fatherdied unexpectedly early in 1936, I wasonly 26 years old. My cousin Alfredhad been putting his shoulders to theplough since 1928. As for myself, I stillhad to struggle. Although I had beengroomed as successor and hadimbibed the workings of the companyfrom infancy, so to speak, I foundmyself suddenly facing the seriousside of life. I was guided by my father’slast advice to “keep a clear head,boy.” That was enough. Verbosity wasnot the style of the early Rüggebergs.

The year was 1933. A period of turmoilbegan. State politics began to intrudeinto every aspect of our lives. Although,due to some crafty manoeuvering, theperiod of Hitlerism left the companylargely unscathed, and we werepersonally spared. It was always awfulwhen they forced us to grant these“eaves of absence” to draft staff intothe military, and there was no wayaround it. Towards the end of the war,many of these employees left without aprospect of ever coming back. Still, somehow we managed to keepthe company on track, mainly becausethe management and the workforcewere acting in joint enterprise. The spi-rit is reflected in this photograph,which shows Alfred and Hans carryingtheir suitcase.

There is a nice little poem that goeswith this picture:

“Two cousins, stepping boldly forward,bear a valise here side by side,as is their habit and the custom,each pulling half of the same weight.

Which tells us much can be accomplishedby moving jointly, hand in handand in the same direction, surelynot just towards a trade fair stand.”

Externally, our company offered littlemore than the usual appearance dur-ing the first half of our century. Thevisitor was greeted by a rather ugly-looking red brick building.Today, I am still overjoyed and proudthat we were able to do so muchbuilding. Our sons, Tom and Jan, haveeven expanded this activity. And that’show things are supposed to be, Iguess. Summing up, I may choose aquotation from scripture: “Our yearsare threescore and ten, yet is theirstrength labour and resolve.”

How did the two World Wars influ-ence the company’s development?Between 1914 and 1918, only the filefactory was up and running. Conscrip-ted production workers were replacedwith women, for the first time ever. Thetriumphant ecstasy that followed thefirst few victories soon gave way to vi-cious trench warfare and the ignomi-nious end of the empire. This was fol-lowed by the treaty of Versailles and

the economic burdens it imposed. Myfather and my uncle would have beenable to comment profusely on thissubject. But they somehow managedto keep up production, despite thescarcity of raw materials. Then camethe period of general confusion which,in 1933, ended in Hitler’s ascent topower. Unemployment was peaking atover 5,000,000, with virtually no socialsecurity to speak of. It seemed like amiracle, the way new jobs materializedquickly out of nowhere.

And what enabled the company toexpand its rotary tool range duringthis period?Our company gathered significantstrength at this time, mainly due to thegeneral rearmament effort. We cameto benefit specifically from the airforce’s enormous demand for rotarytools. It was our job to manage thecompany, and we put all our commit-ment into that. But where was thisgeneral concentration of power takingus? History has taught us. My father,who tended to be quite a sceptic de-spite his entrepreneurial spirit, took apessimistic view much earlier than Idid. So, things came over us the waywe would never have anticipatedthem. If you ask me personally for theeffects of World War II, I must say I stillremember and mourn our 49 employ-ees who died in the prime of life.

How did you go on after the SecondWorld War?After the war we were back to squareone, in every respect. Peace did notcome to Marienheide until April 12,1945. But our district, althoughravaged by bombs, managed to re-establish a normal course of life quitequickly. Thanks to Professor Erhardt, Imust say (German minister of econo-mics and subsequent Chancellor).We had to replace the capacity of ourplant in Konitz (West Prussia), to re-structure our in-house organization,and to set up new sales offices. All thiswas a concurrent process. The pro-duct range was expanded to includecarbide milling cutters and fibre discs.We also sought to establish overseascontacts quite early, not only to sellour products but also to gather inspi-ration from these foreign markets.

Interview with Hans Rüggeberg, Senior ChairmanCompany history in a personal retrospective

Hans Rüggeberg

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When did you start working in thecompany, and when did you retire?I started to work for the company inlate 1933 and retired in 1980, aboutthe time of my 70th birthday. Thus, Ipassed on the baton after 47 years.My cousin, Alfred, did the same after52 years. Our sons, Jan and Tom, tookcharge. It was a good decision,although not an easy one for ourselves,their fathers.

How would you summarize yourcareer?Upon leaving high school, I underwenta one-year practical traineeship thattook me through all major depart-ments of the company. In the autumnof 1928 I enrolled in a course ofmechanical engineering at the TechnicalUniversity of Munich. After my prelimi-nary examinations I completed a spe-cial programme, mainly in metallogra-phy and business administration, toprepare me for the job. This wasfollowed by a number of stays abroad,mainly in Liège and Brussels.It was my father’s request, dictatedmainly by his poor health, that I shouldjoin the company as soon as possible.He died in the autumn of 1936. Hisbrother Robert, who was ten years hissenior, had already retired and trans-ferred his shares to his son Alfred bythen. Alfred was responsible for sales,while I was put in charge of opera-tions.

How many employees did the company have at that time?In 1932, our staff complement wasdown to between 80 and 100. Thiswas the all-time low. For a brief transi-tional period we were even forced towork short hours and lay off personnelback then, but these difficulties weresoon overcome with the launch of ournew production range.

Whom do you recall as your closestcollaborators over the years?I am glad for this opportunity to com-memorate all the men and womenwho gave us their untiring supportduring the period of reconstruction. Inmy father’s day, we had capablesenior officers such as Emil Köster,Ernst Rönchen and Otto Pattberg,who were still around when we tookover. They found their worthy succes-sors in Erich Kaiser and Dr. RudolfHolzhauer, who worked with me formany years. In managing the com-pany and overseeing our product

development I was lucky to have themby my side, with their competence andrelentless dedication. Our success istheir reward, too, and I am glad andgrateful for that.Otherwise I would much rather refrainfrom naming particularly competentand diligent staff members, for thesimple reason that I would probablyforget other, equally deserving peoplewho gave us their input and support.We worked as a team, dedicated tothe Rüggeberg cause on both the hu-man and professional level.

I would like to mention my two trustedsecretaries, Emmi Hütt and AnnelieseHeimes, who unfailingly shared theirboss’ worries, and the late ErnstFörster, plant steward for many years,who, as a dedicated labour unionist,always maintained his freedom to takedecisions in favour of the companyand its workforce.

A family-owned company in its sixthgeneration - how do you viewRüggeberg’s perspectives today?

Yes, you might almost call us an entre-preneurial dynasty in which I, for in-stance, form the fifth link in the chain.Our enterprising spirit stirred first in1770, although this was still at Voerde,in pre-Marienheide times. At the be-ginning, the going was rough, not tosay hazardous, especially when theman who started the chain died at theage of 38. But that is a different story.What I mean is that we had to overcomesevere setbacks. As far as per-

spectives go, I would like to say thefollowing: if we manage to align thecompany with modern managementprinciples, as is the current ownersdeclared goal, it will survive as a suc-cessful entity. We must work as ateam, and teamwork has always beenone of our first and foremost strengths.

Our senior officers, Mark Kesseler, Dr.Rudolf Holzhauer, Willi Drux, KarlWette and Erich Kaiser, set up the“ring”, which discussed all importantand confidential issues with the owners

and came to adopt so called “ringresolutions”. This tradition is still verymuch alive and has proven its effec-tiveness to this day.

For many years you worked underan enormous professional strain.Was there any time left at all foryour family and hobbies?Indeed, the challenges were formida-ble, and we went through many a trialof strength. In the end, most problemswere overcome and were even sparedthe need to go to war. If you ask me ifthere was enough time for the familyand hobbies, I can answer this in theaffirmative but only with some reserva-tions. Given the many commitments ofthe companies owners, it was oftennecessary to make concessions at thefamily level. There is always regret af-terwards, maybe even a weight onyour consciousness. And as far ashobbies go, such as my horse riding, Icould indulge these only to a limitedextent anyway, for reasons of health.

The „leading four“ with flag flying (from left: Tom Rüggeberg, Hans Rüggeberg, AlfredRüggeberg, Jan Rüggeberg)

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Did your professional successmade up for these deficits?As I said, looking back on my work, Ihave a positive feeling of achievement.Being virtually the sole survivors of theGerman filemaking industry, we havemanaged to expand our product line-up by adding a range of advancedrotary tools and to maintain our mo-mentum advantage through an inces-sant development effort. My father,August Rüggeberg, once said thathard work can only be savoured if it isultimately crowned with success. Andthat’s just what happened in my case.It was always an objective of mine tostay personally in touch with all mem-bers of our workforce, and to managethe company so that an atmosphere ofgood manners would prevail at alllevels. I wanted to preserve a spiritthat would make people like to workfor Rüggeberg. Our enormous work-loads, which drew a lot of criticismfrom our sons in their youth, have nowbecome their fate as well. For them, ithas become a question of maintainingenough entrepreneurial leeway toretain their decision-making freedomin the future.

If you could start all over again,where would you act differently?When I left school and was askedwhat I would like to do for a profes-sion, I stated my determination to jointhe company. Once, on a Sunday walkwith my father, he told me: “If you be-come my successor, it appears to methat, given the complexities of the file-making business, your life will have tochange in many ways.” And indeed,there were many ups and downs.“Those damn files”, as the standingexpression went in our company, didindeed determine our lives. Without regretting my decision in fa-vour of an entrepreneurial career backthen, I wouldn’t have minded becom-ing a doctor. When I mentioned this tomy father once, he expressed aston-ishment. “Why didn’t you tell me ear-lier?” Obviously, he would have under-stood if I had chosen another career,and I appreciated this attitude verymuch. Back then, self-actualizationwas less of an issue, I guess. Never-theless, I managed to achieve it,having lived as I did.

Mr. Rüggeberg, the editors thankyou for giving us your time.

1947 - 1957Conquering the marketwith grinding and cut-offwheelsThe mood in post-war Germany is stilldepressed. Ruined cities and indus-tries, economic and administrativechaos, and widespread political disaf-fection have their impact on the overallmood.“Our policy is directed neither againsta country nor against an idea, butagainst famine, poverty, despair andchaos.” With these words, GeorgeMarshall describes the US occupationstrategy. The US government resolvesto ship 1.2 million tons of grain to Ger-many to avert mass famine. The im-plementation of the Marshall Plan istaking shape.

Angle grinder wheels

In the late ‘40s, the owners, Alfred andHans Rüggeberg, travel across the At-lantic. Industry overseas is alreadyusing synthetic resin bonded, rein-forced grinding wheels for high rota-tional speeds. Soon the breakthroughthat will revolutionize industrial grind-ing and cutting applications is takinghold in Germany too.

With the development and introduc-tion of synthetic resin bonded grindingand cut-off wheels designed for useon the increasingly popular angle grin-ders, Rüggeberg scores another majorsuccess in 1951.

Today, the production and sales ofElastic wheels contributes the greatestshare to our company’s turnover. Thecurrent lineup comprises wheels bet-ween 70 and 1250 mm in diameter.

Rüggeberg launches its range of Elasticwheels

The first car body files are milled as earlyas in 1955. Our special expertise and out-standing product quality have won us thestatus of a leading supplier to the automo-tive industry.

Apart from hard work ...

Hans Rüggeberg enjoys himself on a stafftrip to Rüdesheim in 1951.

... Rüggeberg has established a tradition ofsocial get-togethers taking the form of staffparties and outings. These events do muchto improve the company atmosphere.

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Consistent customer orientationThis has been our first and foremostobjective since the founding days ofRüggeberg. Our customers must begiven optimum support in addressingtheir surface finishing and cuttingneeds, so that they can resolve theassociated problems in the most cost-efficient manner. The PFERD range oftop-quality tools helps them to achievethis task. Until the early ‘50s, customer service ishandled by a team of independent fieldrepresentatives. A differentiation bet-ween final users and re-sellers has alrea-dy been implemented. In 1952, Rügge-berg replaces these field representativeswith a salaried sales force. The newsystem allows us to rely on proven salesstaff possessing the appropriate productexpertise. A total of eight regional salesoffices with associated warehousing fa-

cilities is set up all over Germany to ac-celerate domestic shipments of PFERDproducts. Their inventory is made upmostly of top selling items, but also ca-ters to regional demand variations whichreflect the local industry and craftsstructure. If unusual application prob-lems arise, the sales force is assisted byspecialized sales support staff. Thisapproach enables us to provide opti-mum support and delivery services.Foreign markets (Europe and overseas)are covered centrally by sales staffbased in Marienheide. Sales are handledmostly via authorized distributors (import-ers). Wherever possible, an attempt ismade to enlist the support of strongpartners who are capable of operating asa distribution base or “A-status” dealer-ship. Later, in the ‘60s, our own distribu-tion companies are established inseveral European and overseas coun-tries. These organizations rely on thework of permanently employed salessupport staff. The ongoing development

of modern communication systems andimproved logistics keep changing oursales force’s operating environment. By1985, our domestic offices are connec-ted to the central computer at Marien-heide via the Datex network. This givesthem access to all data and inventoryfunctions of the company’s main ware-house and results in a substantial costimprovements at the orders handlinglevel, relieving home staff of manyroutine administrative tasks. Starting in1990, the regional warehouses are grad-ually closed down. Their service functionis taken over perfectly by the centrallogistics units.Today, personal customer service is pro-vided by 37 PFERD sales support repre-sentatives assisted by 27 in-house staff.International sales are handled by 14subsidiary companies operating in therelevant markets, supported by a teamof 20 staff members in the Marienheideexport department. Products are expor-ted into 110 countries worldwide.

In 1955, Otto Duhm becomes the firstemployee to complete 50 years of ser-vice with the company. Deserving jubi-larians are honoured once a yearthrough an appropriate festivity. To-day, this “jubilarians’ circle” comprisesover 280 people.Many veteran staff members still takeactive part in the workings of the com-pany.

1957 - 1967Increased productionadds to administrativeburden

In 1959, a new office building is createdto overcome space constraints. A high-rise design is adopted, offering plentyof room for future needs on 8 floorslevels. A total of over 1,400 sq.m. ofnew working space is created.

The first hydraulic four-column filemak-ing machine, the forerunner of our mo-dern hydraulically controlled auto-matic filemaking centres, is developedin 1954.

Jubilarians’ circle

At a height of over 22 metres, the new office building is one of the tallest structures in Marienheide.

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Founding years of key internationalsubsidiariesThe ‘60s mark the start of the interna-tionalization of markets. Numerousforeign subsidiaries are established:

Our Belgian subsidiary, PFERD-Rüggeberg S.P.R.L. of Brussels, isfounded in 1961.

Switzerland, too, receives itsown subsidiary. PFERD RüggebergWerkzeug + Maschinen GmbH is estab-lished in 1964. In 1995, the companyjoins forces with VSM’s Swiss subsid-iary to form PFERD-VITEX (Switzerland)AG, located at Brüttisellen near Zurich.

A new production facility isfounded at Vitoria, Spain. Trading underthe name PFERD-Rüggeberg S.A., thesite quickly increases in importance.

PFERD-Rüggeberg France isset up in 1966. The company has itsregistered offices at Molsheim nearStrasbourg (Alsace).

August Rüggeberg’sCompany Choir

A jubilarians’ outing in 1961 sparksthe idea of August Rüggeberg’s com-pany choir. Following talks betweenthe management and prospectiveperformers, musical director HeinrichPingel of Hagen is enlisted as headconductor. On 4 May 1962, 27 sin-gers turned up for the choir’s firstrehearsal.

The choir soon establishes itself as apermanent feature. It performs atcompany celebrations and jubileesand soon cooperates with otherchoirs. A concert at the Bad Driburgspa and one organized jointly withthe Hagen Municipal Orchestra be-come its first key achievements.

Choirmaster H. Pingel dies in April1972. Under his 10-year leadership,the choir had developed into a typicalmale-voice choir. In August 1972, Mr.Pingel is succeeded by choir directorPaul Gastreich of Altenhundem, whotakes the choir to a new level of suc-cess. Major performances include agrand concert with the GürzenichOrchestra of Cologne, the churchconcert held in the Marienheide pa-rish church in 1983, featuring cathe-dral organist Adrian Bank, and therepeat performance at AltenbergCathedral. The years 1985/86 mark further musi-cal highlights in the choir’s history.After its successful participation inthe level 1 and 2 performance com-petition in 1985, it receives the much-coveted title of “Master Choir” in the1986 Federal Choral Competition atLüdenscheid, organized by the VoicePerformer’s Association of North

Rhine-Westphalia at Lüdenscheid.The award deservedly coincides withthe choir’s 25th anniversary. In 1987,this anniversary is celebrated in thecompany’s assembly hall in the formof a goodwill concert uniting all otherMarienheide choirs.Other landmarks were the concerttrip to Vitoria/Spain on the 25th anni-versary of that production facility, anda major charity concert staged to-gether with all other communitychoirs.In 1992, the choir is awarded its sec-ond master’s title at a competitionstaged in the Stolberg town hall -another landmark in its history.These successful years are insepara-bly linked with the name of PaulGastreich. His outstanding achieve-ment is based on competence and anuntiring commitment to the cause of

choral music. After 23 years, healthreasons force him to retire from hisconductor’s post.Since 1995, the company choir hasbeen managed by musical directorMichael Rinscheid of Attendorn. Thisgeneration change is reflected in theuse of new scores and a new perform-ance style, implemented by the newconductor with plenty of musicaladroitness supported by his never-failing sense of humour.For the company’s 100th anniversary,the choir has recorded its first CD.Entitled “The sun awakens”, it repre-sents a collection of 25 well-knownGerman folk songs. No doubt, our company choir hasachieved much in its 35-year history.Its performances have been enjoyedby a wide public and helped to winmany friends. By the way, 8 singersfrom the founding year, 1962, are stillactively involved in the choir’s work.

The launch of the new “Elastic” productline calls for an expansion of productionfacilities. In this photo from 1957, removaloperations are in full swing

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Seven at a stroke

The secret of the right blendA new mixing technology finds its wayinto our grinding wheel production.The newly commissioned BIZERBAsystem allows bonding formula to beautomatically weighed and mixed. Thechangeover from punched cards tocomputer control is made in 1988.

Following the introduction of the newwarehouse system in 1977 and lastyear’s replacement of the pre-mixers,the plant receives a new main blend-ing unit in 1997.

Round and round we goThe electronically controlled revolving-type high-bay rack storage warehouse,briefly referred to as “high-ceiling rack”,is commissioned at Marienheide in1970.In conventional warehouses, corridors,rack heights and access routes arevery much a performance limiting fac-tor. The revolving-type high-bay racksystem has no intermediate corridors,but operates on the paternostersystem, moving each storage unit pastthe loading and removal point on abay-by-bay basis. Products can beconveniently stored and removed atarm level, saving much time and labour.

Start of HermeskeiloperationsBy 1973, space problems and theshortage of skilled labour impose theneed to establish a branch factory forthe manufacture of small-size, grind-ing and buffing tools.Today, the Hermeskeil site producesmillions of mounted grinding pointseach year in over 2,000 different types,down to the “mini” variety with headdiameters of only 1 mm. The manufac-

ture of abrasive spiral bands, whichhave formed part of our product rangesince about 1955, is also transferredto Hermeskeil.

Meanwhile at Marienheide, the pro-duction of fan grinders is commenced.Abrasive caps and cones are todayproduced in Spain.

PFERD Austria, established in1975, is now headquartered at Linz.

1967 - 1977Revolving high-bay racksystem and Hermeskeilplant add newperspectives

The first chain saw files were cut individu-ally on English Walters & Dobson ma-chines. Today, our modern manufacturinglines produce more than 10 million units ayear, using equipment which cuts 7 filessimultaneously.

Pferd South Africa (Pty.) Ltd. isestablished in 1968. A new productionfacility is built at Spartan near Johannes-burg.

Production in the new factory starts in1975

Countertop displays boost product sales

Cornerstone ceremony at Hermeskeil in 1974

12

Suggestive issuesOn 1 September 1985, the first plantagreement dealing with our CompanySuggestion System (BVW) becomeseffective. The first registered employeesuggestion dates back to 1944 andconcerns the conversion of a filemak-ing machine. During the 30 yearswhich follow, about 20 suggestionsare put in writing. Most of them areevaluated personally by “Mr. HR” andrewarded with bonuses between DM 20 and DM 250.

Until 1985, the numberof suggestions declinessteadily. In May 1995,the system is re-chri-stened “PVW - PFERDSuggestion System”.

Suggestions are coming in at a rapidpace. The year 1996, with 99 sugges-tions and total bonus payments ex-ceeding DM 49,000, marks an all-timehigh in the history of the suggestionsystem. And the motto stands un-changed: “Getting better withPFERD.”

POLIFAN®- surface grind-ing wheels - the new di-mension in grinding toolsThe PFERD product range continues togrow. Segments of adhesive material,bonded to a backing pad, form thebasis of a product which is noted for itsreduced vibrations and low-noisegrinding performance. The productionof POLIFAN surface grinding wheels islaunched. Commenced as a fullymanual operation, manufacturing isshifted to an “assembly line” in 1990. In

1992, the first generation of automaticPOLIFAN production machines takeover the cutting and segment assemblyprocess, now performed in a singleoperating cycle. A second generation ofthese machines is commissioned in1996.

Microbot alpha, the first robot used onRüggeberg production lines, is madein America. Its duty is to supply ourautomatic dressing machines at Her-meskeil with mounted grinding points.It is followed by five more Mitsubishifeeder robots who have since beenperforming their duty around theclock, as if by magic.

1977 - 1987

Changing of the guardsAfter half a century at the helm, Hansand Alfred Rüggeberg put their sons,Jan and Tom, in charge of the com-pany’s fate. Their work has beencharacterized by a partnership-basedmanagement approach and a consis-tent dedication to the welfare of theirworkforce and staff. Their exemplaryachievement sets a high standard forthe younger generation. In 1979,Rüggeberg takes the leap across theAtlantic:

PFERD INC., USA is estab-lished. Today, the giant US market iscovered from the company’s head-quarters at Leominster near Boston.

1982 sees the foundation ofPFERD Australia. The markets inAustralia and New Zealand are servedfrom Dingley near Melbourne.

Boxing miracleAs of 1983, a new automatic chainsawfile packing machine replaces manualfilling of our “six packs”. It sets upboxes, inserts files and closes packsunfailingly, in a matter of seconds.

The “Jumping Horse” is born

The first edition of our companynewsletter is published in March,1981. It actually owes its birth to anecessity: in a company our size,with many international and domes-tic subsidiaries, it has become diffi-cult for the individual staff memberto remain informed about events,contexts, and developments. Anewsletter is just the rightcommunication medium. Made byand for the members of our staff, itmirrors Rüggeberg’s unique characterand living corporate culture. With 30issues published over 16 years, ithas also become a documentary ofour company’s evolution.

Jan Rüggeberg, MBA Tom Rüggeberg, M. Eng.

VORSCHLAGSWESEN

13

From the good oldpacking shopto advanced logisticsThe old “packing shop” remains inuse until the ‘60s, and even long af-terwards the term remains synony-mous with Rüggeberg’s shippingdepartment. Customer orders arefilled by removing products from longstorage racks and packing them forshipment on long desks. Many adroithands are needed to keep the systemgoing.In the ‘50s and ‘60s, when thedomestic and international distribu-tion organization is revamped toaccommodate a new system ofregional sales offices and warehousesto cope with an ever-increasingproduct range, an upgrade of Marien-heide’s old warehousing organizationbecomes inevitable.

The electronically controlled revolv-ing-type high-bay rack system, brieflyreferred to as the “high-ceiling rack”,is commissioned in 1970 and reflectsstate-of-the-art technology. It operateson a simple yet convincing principle.Products are no longer fetched fromlong shelves by a time-consumingprocess, but are moved to the removalstation once a day. The availablestorage space is utilized to full capacity.All product movements to and fromstorage are computer-assisted.This system allows us to meet ourcustomer’s needs until way into the‘80s. By this time, increased expecta-tions on product availability and agrowing product range call for theadoption of an even more efficientsolution. Newly developed ware-housing systems and the use ofquicker, more cost-efficient shipping

services allow Rüggeberg to concen-trate all its domestic stock at one cen-tral location. The regional ware-houses, with their associated high costburdens, have become expendable.

The project for the planning and erec-tion of a central logistics facility atMarienheide is born in the late ‘80s.After a 13 months’ constructionperiod, the new logistics centre iscommissioned in late August 1991. Itstechnology instantly improves ourcustomer service. Shipping times aresignificantly reduced, overnight ship-ments become the norm, and shippingerrors are virtually eliminated.To follow is some explanatory infor-mation: the new facility comprisestwo integrated warehousing systems,the automatic tray rack (ATL) and thehigh-bay pallet rack (PHR). The ATLsystem contains about 40,000 pro-

duct trays, while the PHR comprises4,000 Euro-pallet positions. Today, anaverage of 450 orders per day involv-ing some 2,200 items is picked andprepared for shipment. About 80% ofthese items are routed to the com-missioning crew by a fully automaticprocess. Items are removed fromstock on the basis of data displayedon a computer screen. The high-baypallet rack still involves manual remo-val, but uses computer-optimizedstacker crane movements.Picked orders are packed for ship-ment, then dispatched to the custom-er by mail, courier service, railway, orhaulage contractors. At a cost of over DM 13 million, thelogistics centre represents the largestsingle investment in the 100-year his-tory of August Rüggeberg. It will en-able us to continue meeting our cus-tomers’ needs now and in the future.

To meet increasing customer demands,the old system ...

... gives way to advanced computer control and warehousing technology

14

1987 - 1997Meeting the challengesof the future

PFERD Sweden is founded in1988. A shareholding in this companyis later acquired by VSM. Today’sPFERD-VSM AB is headquartered atJärfälla near Stockholm.

PFERD tools in theory and practiceA particularly ambitious project is startedin 1989 with the planning for the PFERD Continuous Training Centre. Itprovides a venue for training and skill

enhancement programmes attendedby our own sales force, but also bykey staff of our worldwide distributionpartners. Booked to capacity on a per-manent basis, the centre also forms a

hub of communication betweenPFERD and our customers. Over 500people per year come here to attend

events and seminars. Since our capa-city at Marienheide is nearing exhaus-tion, we will soon transfer these train-ing activities to our internationalsubsidiaries.

PFERD-Giolo s.r.l. (Italy), foun-ded in 1989, is conveniently located inMilan, a major industrial hub

PFERD-Rüggeberg B.V. is setup as an independent subsidiary atBreda (Netherlands)

PFERD-Vitoria (Spain) celebra-tes its 25th anniversary with a big galaevent.

From punched cards toSAP R/3

Computerization ad-vances at a brisk paceThe first punched card machines areinstalled in the early ‘60s. Operatingon a purely electromechanical princi-ple, they are controlled via switch-boards. All customer data and masterproduct data are acquired in punchedcard form and stored for use in enor-mous filing cabinets.

The next generation of machines iscontrolled no longer from a switch-board, but by programmes enteredalso via punched cards. Eventually,magnetic disc storage units areadded to allow the storage of larger

data volumes and an unrestrictedaccess to all data sets. This technologyheralds the rapid advance of electronicdata processing.The first monitor screens, purchasedin the mid-70s, finally replace thepunched card as a data input device.From the screen and keyboard, oper-ators can access all master data, in-cluding information on the customer,product items and stock levels,prices, and suppliers. Increasinglypowerful software facilitates the on-screen entry of purchase orderswhich form the starting point of theorder processing chain. The actual“data processing” is performed atnight, when the workshops and of-fices are deserted. The daily inflow ofpurchase orders is divided accordingto available and out-of-stock items.

Shipments are compiled, stock remov-als are processed, and delivery notesare printed. Data on out-of-stock itemsare transferred to production EDPsystems as the basis for productionorders, triggering the procurement ofraw materials and standard productsby Purchasing. Items supplied from theproduction line and outsourcedstandard products are booked intoinventory, compared with backlog listson a daily basis, and then prepared forshipment.

In the late ‘80s, the subsidiaries andbranch offices are connected to thecentral Marienheide computer systemvia data lines. This allows a direct ac-quisition of incoming purchase or-ders, which can thus be fed into theshipping cycle on the next day. Our

The production of PFERD files at Marien-heide is featured in the “Mouse Show”, ahugely popular children’s TV programmebroadcast by the Cologne-based WDR station.

Endusers are frequently among our semi-nar attendees

PFERD Tools India is estab-lished as a subsidiary company atNasik near Bombay. Our latest filemak-ing facility, it is formally commissionedin 1990.

Files from far afield

15

SuperabrasivesGalvanically bonded diamond andCBN tools are first added to ourPFERD product range in 1987. In early1992, the production facility at Marien-heide is upgraded with the addition ofa high-precision electrodepositing line.

At the Cologne Hardware Fair in 1992,PFERD presents its new product cata-logue 205 covering files, grinding toolsand cut-off wheels based on diamondand CBN superabrasives.

PFERD diamond cut-off wheels are, ofcourse, laser-welded to meet all appli-cable safety standards. First-rate rawmaterials and high grade diamondsensure a top quality product - hightechnology made by PFERD.

Environmental protectionat RüggebergA new exhaust air cleaning andextraction system provides optimumvisibility and a “clean atmosphere” inthe Elastic products workshop.

But our “clean” approach does notstop there. An ultrafiltration (UF)system, supported by a waste watertreatment plant for our electrodeposit-ing line, ensures that all effluents meetlatest emission standards.

Quality as good as ourword - PFERD tools receive DIN EN ISO 9001certification

VSM stake brings flexibleabrasives into focusIn 1995, Rüggeberg acquires a 25%stake in the share capital of VereinigteSchmirgel- und MaschinenfabrikenAG (VSM) of Hanover. The move be-comes a milestone in the evolution ofour fine grinding, polishing, and brush-ing tool product line (catalogue 204).In late August, Jan Rüggeberg be-comes a voting member in VSM’ssupervisory board. A worldwide distri-bution cooperation between PFERDand VSM is about to take shape.

PFERD Asia Pacific (Singapore)is founded in 1995 in the heart ofSoutheast Asia, now the world’s mostdynamic growth market.

The foundation of PFERD-VSM SP.Z.O.O in Warsaw (Poland) in 1997 marks the start on an im-proved coverage of East Europeanmarkets.

goal is to ensure that each customerorder coming in today is filled tomor-row. Through the continuous expan-sion of our shopfloor and administra-tive computer systems, this objectiveis soon achieved.Additional application packages suchas cost and payroll accounting, en-gineering design and production con-trol are added. The only problem liesin the fact that each application,whether old or new, represents anisolated solution. Although data canbe exchanged between individualprogrammes, there is no direct“through access” or direct processingcapability. Why is this sophisticated computertechnology no longer satisfactory to-day? The market demands that cus-tomer requests must be met even

faster, and in a more timely and cost-efficient manner. Customer and sup-plier EDP systems are converging.Ordering data, delivery dates, ship-ping data and payment informationare exchanged via data lines. Thesedata are immediately fed into thepartner’s computer system and enterthe processing cycle without havingto be transcribed by an operator. Newapplications based on the Internetdata highway allow direct accessfrom anywhere on the globe. This to-tal transparency of company datastreams, both internally and external-ly, can no longer be achieved by in-house programming.

New software must therefore be em-ployed to meet these criteria. It isbased on a large data base. Individu-

al application packages are arrangedaround this entire body of operationaldata. Each department (distribution,production, financing, cost account-ing, purchasing, maintenance, pay-roll, design, quality control, researchand development) can thus accessthe latest information.

In order not to “miss the train” of ad-vanced computer solutions, it is deci-ded in 1995 to adopt the SAP R/3software package, a system de-veloped by hundreds of programmersover many years. To us, this meansthe installation of new hardware, newsoftware, new networks, new databases, and new programming lan-guages. The introduction of thesystem is proceeding at full speedand will be completed by early 1998.

Rüggeberg is DIN EN ISO 9001 certified

In 1993, PFERD South Africacelebrates its 25th anniversary with amultitude of guests.

CORRADI Rüggeberg isappointed exclusive distributor forCORRADI precision files (Italy) in Ger-many and a number of other Europeancountries. Our cooperation with UMV/Switzer-land is terminated after more than 25years.

The unsurpassed quality of PFERDproducts is the key to customer satis-faction. This applies to all companyactivities, from production to customerservice.

Our successful DIN EN ISO 9001 certi-fication, awarded in 1994, attests tothe effectiveness of our continuousquality assurance effort at all levels.

In the meantime, our PFERD sub-sidiaries in Spain and South Africahave likewise been certified to thishigh standard.

16

The Works Council -

representing employeeinterests

Under the Industrial Constitution Actof 1952, the company’s employeeselect a body of colleagues intendedto represent their interests and rightsvis-à-vis the management (employer).These elections are held every fouryears subject to a closely defined re-gime. Main issues include the monitor-ing of compliance with aspects of

collective bargaining law, such as sal-ary levels, sickness pay, leave of ab-sence entitlements, vacation pay, so-cial security, etc. In addition, theworks council has a say in matters offactory regulations, occupational ac-cident prevention, etc. The number ofrepresentatives forming the workscouncil depends on the size of theworkforce. The council members el-ect their chairman from their midst fora period of four years. The workscouncil is the “mouthpiece” for a two-way communication process linkingstaff and management. Since 1950,the following colleagues have held

the office of works council chairmanat Marienheide and Hermeskeil:

Marienheide works1950 - 1978 : Ernst Förster1978 - 1990 : Walter Eulitz1990 - today : Josef Funke

Hermeskeil works1975 - 1978 : Rudi Igel1978 - 1984 : Anton Anell1984 - 1994 : Alois Hein1994 - today : Werner Hornetz

The first PFERD Partner meeting opens up new perspectives for a successful cooperation

The second factory in Spain, at Araia, iscommissioned in 1996

A facelift at ARM, carried out in 1995, involves the redesign of the front building, specifi-cally the factory gate with gatekeeper’s house

The PFERD Partnermeeting - trust createsthe right spirit

Crumbling prices, shrinking marketsand predatory competition characterizethe economic trend of the ‘90s. Ourgoal, defined jointly with our retail anddistribution partners, is to concentrateforces via an enhanced cooperationand the pursuit of a joint marketingstrategy.In 1996, a new domestic distributionstructure is implemented. More than120 PFERD Partner dealerships sign acontract to align their strategy withRüggeberg. The first PFERD Partnermeeting takes place in Marienheide.The cornerstone has been laid for along-term successful partnership thatwill benefit both sides.

17

PFERD tool manual inchanging guises

Over the last few decades, the Manualhas developed in an important refer-ence source for the professional userof surface machining and cutting tools.It is also our company’s “calling card”.The revised 1995 edition comprises afurther expanded systematic range ofabout 5,000 tools plus an impressiveline-up of purpose-designed powertools. Detailed technical informationand valuable spare part recommenda-tions round out its contents. While the first editions of the PFERDTool Manuals were still produced bythe hot composition and letterpressprinting method, all text and imageprocessing is digital today. The book isprinted cost-efficiently on high-speedoffset machines. Its size has morethan doubled over the years, with thelatest edition comprising 256 pages. By the year 2000, when it will be su-perseded by its successor, the currentedition will have been distributed inover 150,000 copies in more than 10languages. About 135 tonnes of paperwill have been expended for this pur-

pose, a load filling 18 large 7.5-tonnetrucks. Altogether, some 38 million ofpages will have been printed on over19 million sheets of paper to presentthe scope and advantages of the

PFERD range. If one would separateall pages from these catalogues andplace them side by side, they wouldcover the area of 320 football fields.

Rotary movement in ever new varia-tions has been the front page themeof our Tool Manual since 1963

200/95

Product Receives National Award ofthe Federal Ministry of Economics forOutstanding Innovative Achievementin the Crafts

August Rüggeberg GmbH & Co. of Marien-heide has presented an innovative solution inthe field of abrasive cut-off wheels. The aimmotivating the company’s development effortwas to launch a tool with significantly en-hanced performance characteristics whichwould be fully recyclable after use. This goalwas achieved through an all-new wheeldesign in combination with new formulas andnew abrasive material grades. The newECOPLUS® abrasive cut-off wheel concen-trates the entire abrasive power of a conven-tional cut-off wheel in its useful, i.e.,economically efficient outer diameter area,thereby achieving superior performance. The non-useful, i.e., inefficient interiorwheel core has been replacedwith a metal support disc(hub) which can be easily recycled as all-metal

scrap and thereby reintroduced into the valuechain. In view of this feature, ECOPLUS® cut-off wheels already meet the requirements ofthe German Materials Recycling and Waste

Management Act, thereby creating additionalcost benefits for the user. ECOPLUS® abrasi-ve cut-off wheels are suitable for multi-pur-pose metal cutting applications and can bemounted on all standard commercial anglegrinders powered by a pneumatic or electricprime mover. PFERD starts its new gene-ration of abrasive cut-off wheelsfor freehand grinding with adiameter of 230 mm.

ECOPLUS®: - The New Generation of Abrasive Cut-OffWheels for Handheld Power Tools

A major trade fair attraction: The benefits of the new abrasive cut-off wheel, which has already brought Rüggeberg aNational Award from the Ministry of Economics, were continuously demonstrated on the Hannover Trade Fair.

Ia. Hannover/Marienheide. TheRüggeberg tool company, whosePFERD brand name enjoysworldwide renown, has been aregular presence at the Hanovertrade fair for decades. This yeartheir booth in Hall 5 attractedeven more visitors than usual.The reason for this keen displayof public interest is called Ecoplus, a product which signali-zes the beginning of a new era inthe 50 years’ history of abrasivecut-off wheels for freehand use.The new tool now launched of-fers between 15 and 30% moreperformance and efficiency than

conventional cut-off wheels. Atthe end of its service life, its steelhub can be fully recycled as me-tal scrap. „Even our competitorsacknowledge that the new pro-duct constitutes a revolutionaryaccomplishment“, says com-pany spokesman WolfgangBenna. The Ecoplus tool offerssignificant benefits to the user,since apart from its enhancedperformance it also reducesmachining costs.

Rüggeberg believes that the newEcoplus cut-off wheel, which isthe result of more than 2,5 years’

development, will also help to„open doors“ for its remainingproduct range. „Demand for thenew tool is so brisk that we havebeen able to limit deliveries to anumber of selected markets“,Mr. Benna rejoices. The com-pany had already attracted anoverwhelming customer and re-tailer interest at the CologneHardware Fair.

Moreover, the patented cut-offwheel has received the GermanMinistry of Economics’ nationalaward for outstanding innovativeachievement in the crafts

Domestic industry demonstrates performance potential on Hanover Trade Fair - Hopes pegged to economic uptrend

Rüggeberg Co. launches world novelty on Hanover Trade Fair

Small Wheel in Focus of Trade Show Attention

High-Tech

Made in Oberberg

18

High-grade vocationaltraining

reflects confidence in thefuture

Our company’s future depends on itscompetitiveness and innovative capa-bility. The skill potential of our work-force and thorough training of the newgeneration form the basis for succes-sful corporate growth. Our two-tiertraining system is a key advantage inthe international competitive arena.

● Fully skilled employees are prere-quisite to the implementation ofsimpler and more flexible opera-tions, translating into higher produc-tivity.

● A high degree of identification withthe company’s goals, supported bydiligence and commitment, ena-bles fully skilled staff to handlecomplex tasks on their own res-ponsibility within a team.

● Fully skilled staff combines a soundtheoretical and practical back-ground with important abilities, e.g.,to bear responsibility, work within ateam, and pursue a continuous im-provement of professional skills.

● With semi-skilled labour, these ob-jectives can only be accomplishedto a limited extent. Continuous skillenhancement, even if regularly pur-sued, cannot compensate for lackof training received at the school-to-job transition stage.

Our in-house training schemes, based

With a staff complement of over 1,600, our quality-certifiedcompany is a market leader in the toolmaking industry. Underthe trade name PFERD we have been supplying quality toolsfor more than 100 years to a global market now spanning over100 countries. We have vacancies for

Apprentices/Traineesto undergo Industrial mechanicsvocational Machinery and systems technologytraining as

Machine tool mechanicsLathe and milling cutter systems

Power electronics fittersProduction operations technology

Skilled industrial clerks

Our state-of-the-art training workshops feature CNC machinetools (lathes, milling centres) as well as a wide range of pneu-matic and hydraulic training equipment.

Our training in electrical engineering is based on computer andPLC control technology.

Please address your application to:August Rüggeberg GmbH & Co. • PFERD ToolsVocational Training DepartmentPostfach 1280 • D-51704 Marienheide

on modern concepts and newly devel-oped vocational profiles, ensures thecontinuity of our company and itsjobs.

Above-average examination results inboth technical and commercial fieldsconfirm the validity of AugustRüggeberg’s vocational training effort.

100 years’ of PFERD

Outlook for the next century

On the eve of the next century, we areconfronted with a rapidly changing en-vironment. The viability of Germany asan industrial location is being put tothe test. And yet, as the debate on thepermanent loss of domestic jobs isreaching its climax, practicable remedialconcepts are nowhere in sight.This negative trend applies particularlyto the metalworking industry, with itsmanufacturing cycles saddled by highlabour costs. This industry is the mainuser of handheld power tools andhence, our main market.We should not fool ourselves. Theachievable sales volume for our toolsin key European markets is eitherstagnating or shrinking.

The resulting predatory competition isaccompanied by a continuous declinein prices and margins.So-called discounters from low-wagecountries are flooding the market withlow-price products, displacing our owndomestic low-price competitors fromthe “lower echelons”. In order to sur-vive, the latter now aim at penetratingour traditional premium markets withadditional services and attractive offers. We cannot overlook the fact that thatour „classic“ distribution route, i.e., viaoutlets catering to the manufacturingindustry and professional craftsmen, islosing an increasing part of its businessto DIY markets and specializeddiscount stores. Moreover, the directsales approach based on dealerbrands is competing more and moreeffectively with manufacturer brandsburdened with high brand manage-ment costs.We are determined to meet this chal-

lenge. As a premium manufacturerwith a century-old corporate culture,we will oppose this trend. We arecalled upon to convey our dynamicservice concept and experience to thecustomer. There is no other way toensure continuous success in thecompetitive environment.

The company will continue to focus onits first and foremost target group, i.e.,users with a high service and qualityawareness who choose a product onthe basis of quality and performancewith a view to solving specificproblems, and who expect us to liveup to the most demanding standards.

Haven’t we known it all along?

As a premium manufacturer, we areexpected to supply products of unsur-passed quality and performance. This imposes the need to distinguish

19

ourselves from the competitor field notonly in terms of product personality(what does the customer experiencewith PFERD?), but also at the productenvironment level (what does the cus-tomer expect from us?).

These two areas are our strengths,since they influence the customerspositive value judgement on PFERD.

We are therefore called upon to● improve customer loyalty by step-

ping up our communication effort

● increase our performance by offer-ing specific solutions, i.e., by creat-ing a customer perception ofPFERD as a value-adding experi-ence (as distinct from gimmicksand empty verbiage).

Naturally, such performance cannotbe had free of charge. From our custo-

mers’ view, it is an recognized accom-plishment which justifies a mark-up onsales prices.

Showing our commitment

We refuse to be transformed into justanother service-providing site. Marien-heide remains one of our industrialmanufacturing locations, reflecting ourconviction that software and hardwareare ultimately indivisible. Experiencein manufacturing technology and anongoing exchange of views with cus-tomers and users are prerequisite tothe development of high-grade tools.The development of our ECOPLUSline on the drawing board alone wouldhave been inconceivable. Competentcustomer service is integral to the suc-cess of any high-performance indus-trial product. Custom solutions, tai-lored to individual application needs,cannot be developed without a local

presence in the form of continuousproduction technology support. Thelocal presence of PFERD staff mem-bers capable of delivering such sup-port is an indispensable element ofour success.

Recalling the old virtues

Each of us knows that “service” meansmore than a salesman’s friendly face.Serving means doing one’s duty in theemploy of a master or customer, as thesource of income or gain. It meanstrading performance for profit. Withoutthe former, the latter cannot be had.

For 100 years we have known that thesecurity of our jobs is ultimately deter-mined by the PFERD customer. AllPFERD marketing efforts must there-fore be based on the serious and opendetermination to satisfy the market’sneeds.

Success through teamwork

On the eve of the celebrations for our100th anniversary, the organizing teamand its crew of helpers present a happy, ifsomewhat exhausted face to the photo-grapher. The day had been meticulouslyplanned and prepared in countless meet-ings. Thousands of details had to be takeninto account. Working with enthusiasm,diligence and gusto, the team braved amultitude of challenges and staged amemorable event.

Our heartfelt praise and gratitude to youand everybody who lent a hand. (The“100th Anniversary Organizing Team”comprised Heiko Alter, Sandra Bock,Günter Braun, Katja Düperthal, NadineFeichter, Josef Funke, Anja Ginczek, teamleader Sven Kuhnert, Petra Lückerath,Florian Pottrick and Martina Rademacher).

1897 – 1997

20

Having welcomed all employees andguests, both from Germany and abroad,Jan Rüggeberg continues as follows:

We spent many hours deliberatinghow to celebrate this day in the mostagreeable manner for everybody in-volved. After prolonged debate, it wasfinally resolved by the management,the “ring” and the works council thatwe wanted this to be a “familycelebration”, without customers andsuppliers, so that the families of ourcurrent and former employees wouldhave an opportunity to see thecompany and part of its workplaces inoperation. We wanted to deepen, ormaybe even awaken, their under-standing and interest in our company,on which we all depend, but also todemonstrate to them the manychanges which have taken place inMarienheide and the extent of theindustrial and technological progressachieved. It is nice that the newexterior, complete with parking lotsand landscaping, was finished just intime for the 100th anniversary.

So, our heartfelt thanks are due to allthose of our employees who, beforejoining the festivities, were willing todon their overalls on this anniversaryday to allow us to visit a company “inaction”.But we also have to thank all thosewho contributed many hours of hardwork to the preparation, planning andimplementation of this special day, i.e.,the 100th Anniversary OrganizingTeam, our advertising department, theworks council, and the company choirwho published its own CD for thisoccasion, but also to the numerousoutside helpers such as the firebrigade, the Red Cross, the craftsmen,and all others involved. We do appre-ciate your achievement!

It was teamwork which made this fest-ivity possible, and now it’s up to you toenjoy a happy “family celebration”. Ihope you are all in an excellent mood.

The fact that food and drink are notentirely free of charge today is due to avery good reason. We all know that, atPFERD, quality has a price, so whilethe costs of this festivity are covered

fully by the company, the income fromtoday’s sales will be donated to charityby agreement with the works council.

In addition to the foregoing, themanagement has decided to maketwo rather substantial donations to thetwo institutions who care for the well-being of our community’s seniorcitizens, namely, the Senior Citizens’Forum and the Old Folks’ Home onLeppestrasse, respectively.

One hundred years of AUGUSTRÜGGEBERG in Marienheide arecertainly a worthy and suitable oc-casion for a moment’s reflection. Afterall, turning 100 is not by itself anachievement for a company, indeedquite the opposite might be true.

But completing 100 years of success,now that is something unusual, parti-cularly if you compare us with ourcompetitors of equally old standing, oreven the majority of those competitorswho are much younger.

What I shall try to do, therefore, is tobriefly analyze the factors which havebeen responsible for this many yearsof success, to see if they can form thebasis for strategies, consequences or

visions for the future that may guaran-tee growth and prosperity in the yearsto come.

To outline the main success factors Iwould actually have to embark on adetailed account of our company his-tory, from which I will refrain for thesake of brevity. I will only mentionsome key milestones, turning pointsand progress steps here, for early nextweek you are all going to receive thelatest edition of our company newslet-ter, the “Jumping Horse”, which will in-clude a detailed chronicle of our com-pany history, complete with all dataand many pictures.

I have identified a total of 6 differentsuccess factors. The succession inwhich I address them is not intendedto imply a priority judgement, and Ishould like to point out that they areoccasionally hard enough to differen-tiate due to their interdependency,also with regard to cause and effect.

The very first factor and prerequisitefor success was the willingness to ac-cept an entrepreneurial risk. This wasreflected in a number of facts, e.g.,

- that our forebears, at the start ofthe last century, decided to give upthe profession in which they hadbeen trained, i.e., farming, and be-gan to manufacture forged tools,including files - one of the oldesttools known to mankind and, at thetime, the only chip-removingmetalworking instrument;

- that they were willing to leave theirancestral seat and estate at Effey inthe Ennepetal valley to settle asProtestants at a new and entirelyalien place, the strictly Catholiccommunity of Marienheide, be-cause this region had a prominentcottage industry of skilled file-makers, and because Marienheideas a railway junction offered idealcommunication links with theindustrial areas of Cologne,Wuppertal, Hagen and Dortmund;

- that they continued to invest sub-stantial private funds into the devel-opment and production of ever

Jan Rüggeberg’s ceremonial speech , held at Marienheide on 6 September 1997on the occasion of August Rüggeberg’s 100th anniversary

Jan Rüggeberg receives special applauseas he welcomes his father, “senior chair-man” Hans Rüggeberg

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new products such as precisionfiles, rotary milling cutters, polis-hing tools, grinding and cut-offwheels, diamond tools, ECOPLUSproducts, etc., without any guaranteeof recovering their investment

- that they continued later to esta-blish ever new manufacturing sites,e.g., at Konitz in West Prussia, atHermeskeil, in the USA and inSpain, in South Africa, and in India.

The decision to shift productionabroad, i.e., to Spain, was promptedprimarily by the determination toaccess an interesting market madeinaccessible by high customsbarriers. Similar considerationssubsequently induced us to set up amanufacturing base in South Africa.But it didn’t take long until PFERDVitoria evolved into a supplier ofhigh-grade tools and hence, into anindispensable pillar of our domesticand international competitiveness. Shifting our production of ma-chinist’s files to India in the early‘90s was a particularly difficultdecision, although one that be-came inevitable when all attemptsat setting up an economicallyefficient production in Germany,even based on the latest technology,failed to bring success.

- and that we opted for a close co-operation with the Hanover-basedVSM Co., establishing joint distri-bution companies in foreign mar-kets and ultimately acquiring asubstantial stake in this companyto secure our strategic distributiongoals.

In addition, this joint effort isexpected to generate new impetusat the product development stageas well, and will therefore beintensified.

and finally,

- that we invested capital on ahitherto unknown scale in organi-zational equipment such as thehigh-ceiling rack, the new logisticscentre, and the new SAP R/3 com-puter system to improve our cus-tomer service and achieve lastingimprovements in cost-efficiency.

The second success factor was thepursuit of a vision, i.e., a product and

marketing idea, and its consistentlong-term implementation. This is evi-denced by

- the very early focus on files as achip-cutting instrument, which ga-ve rise to a continuously growing,systematic range of surface finish-ing and cutting tools;

- the development of the associatedoptimum power tools in close andsuccessful cooperation with theSUHNER Co. of Switzerland, pur-sued over many decades;

- the restructuring of our distributionorganization in the ‘50s, whichbrought the changeover from fieldrepresentatives to our own salariedsales force and the creation ofdecentralized sales regions withtheir own warehouses;

- the systematic and application-ori-ented segmentation of markets,supported by a correspondingmarketing effort, which brings to-gether hardware and software in analmost ideal manner while turningour re-selling customers intogenuine distribution partners;

- the uncompromising implementa-tion of our high quality standardsas a prerequisite for a consistentlysuccessful brand product market-ing;

and finally;

- by the erection of the Training Cen-tre in the late ‘80s, in recognition ofthe fact that the further training ofour own sales support staff andthose of our domestic and interna-tional distribution partners is thekey to the company’s future marketposition.

As the third success factor I would liketo mention our innovation capability,which is the basis of progress in pro-duct development and manufacturingtechnology alike. It is this synthesis,the pursuit of radically newapproaches, which has often won usseveral decades’s worth of competiti-ve advantage in many areas.

Examples include the following,although the list is naturally not ex-haustive:

- the development of the Eilfix file-making machines at the start ofthis century, followed by multiple-type filemaking units, automaticproduction machines for car bodyfiles, automatic production machi-nes for carbide milling cutters(series I through IV), adhesiveapplication and hot-pressingtechnology for our Elastic wheels,mat reinforcement and, finally, theECOPLUS system;

and

- product innovation, pursued parti-ally in parallel with new manufac-

The audience in the full tent listens attentively as Jan Rüggeberg takes them through hisanalysis of success factors for growth and prosperity

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turing techniques, such as thedevelopment of spiral-cut chainsaw files, half-round machinist’sfiles, patented milled rotary cutters(the decisive step towards anexpanded range of many modernsurface-finishing tools), industrial-grade flexible shaft machines,convex-tooth car body files, surfacegrinders, POLIFAN tools and finally,last year’s launch of the ECOPLUSline, which has created radicallynew growth prospects particularlyfor our parent factory site.

This last product allowed us toachieve an advanced synthesis ofeconomy and ecology, and weacknowledge the achievement ofour ECOPLUS product team.

The fourth success factor is doubtlessour company’s healthy financial struc-ture. It alone provided the independ-ence and necessary conditions forsuch a long period of successful en-trepreneurial activity. It requires profitsto be generated, first of all, beforethese can be channeled back into thecompany.

Care must also be taken to ensurethat even critical phases remain finan-cially manageable. Apart from for-ward-looking planning, this requires awillingness to renounce the pursuit ofmany a growth opportunity, as well asa timely settlement of the successionissue which deliberately puts the out-going heirs at a disadvantage, inkeeping with our fathers’ and grand-fathers’ conviction that each generationis merely one link in a chain.

This was also the rationale behind lastyear’s conversion of the company’s le-gal form and of the creation of a newmemorandum of association, whichwas prompted by the determination toensure a smooth generation changeand to preserve our company’s struc-ture as a family-owned enterprise.

The fifth (and probably most impor-tant) success factor is and remains thecommitment of our workforce, whichis reflected in the culture and atmos-phere of human relations within ourcompany. To illustrate the high prioritywhich we attribute to this aspect, Imay mention the following:

- Rüggeberg is a family-owned en-terprise, not only in terms of

ownership structure, but also interms of the emotional atmospherewhich forms the basis of our socialfabric. This fact is reflected in ourconcern for our employees duringand after their active service, ourtraining and further educationschemes, our care for direct humanrelations at all levels, our socialsecurity fund, and our assistance ofsenior citizens within the community.

- Another aspect of this approach isthe maintenance of a good rela-tionship with the works council,which we respect and acknowl-edge as a genuine partner.

- And finally, there is our support ofjoint leisure activities, such as thework of the company choir and di-verse sports clubs.

All these efforts have always been,and continue to be, integral elementsof our conviction that working forRÜGGEBERG should not only be ameans to earn a livelihood and appro-priate social security, but should alsogenerate a measure of satisfactionand joy of life.

All in all, the RÜGGEBERG group cur-rently employs a workforce of over1,600 men and women, including 750based in Germany.

A total of 284 jubilarians in Germany,including 155 still active and on thepayroll, are an impressive testimony toour employee’s loyalty.

As the sixth success factor I would liketo mention the necessary dose of luck,

for which I may also quote some ex-amples, i.e.,

- the good luck of all of us here whohave retained their good health andphysical ability to this day;

- the good luck that the Marienheidecompany and its owners emergedout of the war unharmed - a warwhich, after all, cost the lives of 49RÜGGEBERG employees whichwe also commemorate today;

- the good luck that Robert Rügge-berg had to see a dentist one day,which gave him the decisive ideafor the subsequently patented ro-tary cutter with milled teeth;

- the good luck that my cousin andmyself had fathers to whom we notonly owe most of the company’ssuccess, but to whom we may alsobe grateful for their wisdom to re-tire from the management of thecompany’s at the age of 70, havingthoroughly trained their succes-sors, although they were still fit andvigorous at the time, for which wemay express our heartfelt thanks tothem on this occasion;

- the good luck that we found somany capable and highly moti-vated employees;

and last but not least,

- the good luck that Marienheide hasremained a healthy and pleasantplace to live and work in, which alsoreflects the achievement of the com-munity leaders present here today.

August Rüggeberg’s company choir contributes songs from its latest CD to the festivities

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On the whole, we have been luckymany times over, for which weshould thank God and our fate.

In the course of this brief analysis Ihave thus defined six success fac-tors, i.e.,

- the willingness to face entrepre-neurial risks;

- the development and pursuit of avision;

- the ability to innovate;

- our company’s healthy financialstructure;

- the motivation of the workforce of afamily-owned enterprise, and

- the necessary dose of good luck.

If you ask me whether these factorsare still of relevance, especially in viewof the future, I would answer thisquestion unreservedly in the affirmative.

About two years ago, the manage-ment and the “ring” have extensivelydiscussed, stated, and published thevision and corporate goals of theRÜGGEBERG group of companies.You are all familiar with the result.

The text contains all of the above suc-cess factors, albeit with some modifi-cations as to sequence, priority andstructure, which are or should be ourguide in shaping our company’s pre-sent and future.

The unfortunate question of Marien-heide’s continuation as a productionsite, which has once again crept into thedebate today, may be dispensed with inmy view if we stick by the five successfactors which are within our control. Thesixth, i.e., luck, happens to be andremain a question of luck. May we re-main blessed with such good luck, too.

Securing Marienheide’s future as a pro-duction site is a prime objective of ourcompany. However, achieving this goalwill require additional investment in ourkey markets to enable us to remainclose to the customer and deliver anoptimum level of customer service.

Regardless of all global strategies andinvestments in other markets, Marien-heide will remain, for all the foresee-able future,

- the site of our central administra-tive headquarters;

- our key site for state-of-the-art ma-nufacturing;

- our key research and developmentsite

However, the above can only be ac-complished if we focus on ourstrength, and if we consistently obser-ve the proven principles which haveguided us over the last 100 years,adapting them to each new situationthat may arise.

Despite the company’s difficult econo-mic situation today, of which you areall aware, I may say that RÜGGEBERGas a whole is healthy, that we areoperating without exterior funds orinfluence, that we see enormousdevelopment opportunities in manyproduct sectors and markets, that wehave a highly motivated and welltrained team, and therefore, I think,every reason to engage in a good andproper celebration today.

In closing, I may convey my heartfeltthanks for their commitment and co-operation to all those, in Germany andabroad, whether present or absent to-day, who have helped the horse to gal-lop and jump so successfully for solong.

Our company celebrates its 100th an-niversary today. I call it “our company”because the workings of this enter-prise are so closely interwoven withthe life of Marienheide and its in-habitants. Many of our colleagueshave spent their entire working lifehere and will probably continue doingso until retirement.

From its modest beginnings to its cur-rent worldwide status, this companyhas played a very special role for thelabour force of our entire region.

And much like its management hasbeen passed on within the family fromone generation to the next, it has be-come an accepted tradition, in manylocal employees families, that thegrandfathers, fathers and childrenearned their livelihood here - some-times successively, sometimes evenworking side by side.

Such a closely interwoven relationshipover an entire century harbours oppor-tunities and risks at the same time.

The opportunity for the company con-sists in the availability of an often well-trained, local manpower base.The opportunity for the local labourforce consists in the availability oflong-term employment right near theirhomes.

The risks attached to a family-ownedenterprise, even a large one, lie natur-ally in the ups and downs of the eco-nomic cycle and the increasinglytough competition now prevailing inthe marketplace.

This close involvement of the com-pany with Marienheide, its environ-ment and its population, grown over100 years, imposes an additional

Ceremonial speech by Josef Funke, Works Council Chairman

Joseph Funke pointed out that working atRüggeberg also has a long tradition inmany employees’ families

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responsibility on the management forthe security of our jobs and for thelivelihoods of the families dependingon them.

Speaking for this company’s employ-ees, I may confirm today as chairmanof the works council that the manage-ment has at all times been aware of,and lived up to this responsibility.

Certainly, the reasons for a number ofdecisions were not always easy tograsp, and the consequences weresometimes painful for many of us. Buta way has been found to adapt thecompany to the inevitable changes, topreserve much of its competitivenessand hence, our jobs, and to distributethe resulting burdens evenly in thesedifficult times on as many shouldersas possible - not only those of the em-ployees.

If you can live with the conviction, asthe staff of this company does, thatyou will not be forgotten in goodtimes, you will certainly not shun anextra effort in less fortunate periods.

This attitude has a tradition in ourcompany. Our 284 jubilarians, includ-ing 155 still actively employed, cantestify to the truth of this statement.

For us regular Rüggebergers, thisworkplace is not just any other job. Wehave always felt a particular responsi-bility for our work and for the quality of“our” PFERD tools. This has alwaysbeen true and will remain so, even inthe context of the development ofnew, modern forms of cooperation.

Despite these difficult times and thetough competition around us, despiteall the debate revolving around Ger-many’s value as an industrial manu-facturing location, we have everyreason to look into the future withoptimism and to wish our companysuccess for the next 100 years.

We, the employees, will do everythingwithin our powers to make this suc-cess come true.

Hard work rewarded by goodluck: Marvellous weather onthe day of the big celebration

Splendid sunshine on this late summer day attracts an incessant flow of visitors

Numerous helpers meet arriving guests ingood spirits

Relaxed employees enjoy the festivitytogether with the “rest of the family”

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Works visits draw large crowdsMany visitors used the occasion to get a rare “backstage view” of theworkings of the company

From the ECOPLUS production plant, the origin of a world novelty product ...

... and the computer-controlled blending system on theElastic line ...

... the automatic band saw on the steel warehouse conveyor ... ... and our Logistics Centre packing stations ...

... to the seminar and practical training rooms of our TrainingCentre...

The so-called “time tunnel” brings back the past in pictures,documents and many a “vintage” rarity.

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Festivity highlights

The “Altstadtramblers” dixieland jazz group from Düsseldorfsweeps the audience along with spirited oldtime music

Volker and Gerd open the almost two hour entertainment in themarquee

Düsseldorf fire brigade’s top gymnasts ... ... capture young spectators’ heart and full attention

The Calypso show dancing group fascinates guests .. .. not only our colleagues from the plant in Vitoria (Spain).

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Fun for the kids was written large

Clown Peppino entertains crowds all around the tent Husters Ferdi’s railway ride was another major attraction

The youngest PFERD generation competes with zeal Changed into butterfly and cat, these twins are no longer difficult to tell apart

1,800 grilled sausages and 1,200 barbecue steaks, 250 litres ofpea soup and 250 kg of potato salad were handed out by diligenthelpers.

Delicious indeed: Our heartfelt thanks are due to Helga Will-mund and all hands, as well as to the many sponsors who haddedicated cakes

And plenty of physical comforts, too

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Editors:B. Federbusch, B. Hüttenmeister, R. Piter, M. Maßmann, M. Radermacher, U. Schnauder, E. Schorre, R. Suhrheinrich, A. Wiegand, A. Zimmer We thank F. Pottrick, J. Schultz-Siemens, our photographer Klaus Stange, and many others, for their help withthis anniversary edition.Print: Gronenberg, Wiehl

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