KUHN-BLACKSMITH TO WORLD PLAYER…
19 February 1999
KUHN-BLACKSMITH TO WORLD PLAYER…
French equipment maker
Kuhn claims to be market
leader in France with 15
out of its 21 product lines,
and there are more products
to come – SIMA will see
the company move into the
hedge cutting market for
the first time.
Geoff Ashcroft looks at
the companys progress
BLACKSMITHS forges have proved a suitable spawning ground for many farm machinery manufacturers, their metal bending expertise creating all manner of opportunities.
One such company is French equipment maker Kuhn, based at Saverne on the eastern side of France, where 171 years ago blacksmith Joseph Kuhn began making weighing equipment.
But it was to be another 56 years before he diversified into farm machinery with the help of his brothers. By 1928 the company was producing 1000 threshing machines a year, with mower and rake production starting to take off.
Today, the firm holds Group status with four manufacturing sites in France. At Saverne, Kuhn makes grass machinery, pneumatic seed drills, toppers, cultivations kit and fertiliser spreaders; moving west to Montereau, Kuhn-Nodet makes seed drills and sprayers.
Further west at Chateaubriant, Kuhn-Huard specialises in ploughs, direct drills and non-powered cultivators. And travelling south to La Copechagniere, Kuhn-Audureau makes feeder wagons, straw shredders, self-loading bale feeders and a new range of hedge cutters, the latter to be launched at SIMA.
"We have expanded in recent years with the Huard, Audureau and Nodet businesses, with machines which complement our existing ranges," says Michel Siebert, one of four directors of the Kuhn business. "It is important in todays markets not to have overlapping products.
"As a result, we offer the widest product range under one brand of any implement manufacturer in the world."
Such a broad product portfolio saw Group turnover exceed 2.2bn francs in 1998, and production at Saverne alone passed 50,000 machines a year.
Interestingly, the company no longer manufactures weighing equipment, choosing to be a specialist in grass machinery and cultivations equipment.
"We try to closely match our products to the needs of our customers. Our development work has to be customer-driven to give farmers the products they need," says Mr Siebert.
As a result of this approach, Kuhn says it holds market leadership in France with 15 out of its 21 product lines; its weakest areas are in the Kuhn-Nodet products.
"We have only had the Nodet business for two years and this is an area where we have scope for significant development," he says.
But not all products reach all export markets; in the UK, for example, Kuhn has yet to introduce its sprayer range and direct drills.
As part of studying this farmer-oriented strategy, Mr Siebert has noticed a recent shift in the buying trends of French farmers, as bigger kit is starting to have an impact on our Continental counterparts: Frances 50ha (123 acres) average farm size is expected to increase considerably over the next few years.
"Like the UK, France is seeing fewer but larger farms each year," he says. "And with it, farmers have become much more professional in evaluating their own needs and demanding more efficient machinery.
"Take precision farming as an example. It is not a temporary phenomenon. Sophisticated electronics are getting better all the time and this makes the technology more affordable for those in farming," he says.
"As a machinery manufacturer, we are prepared for the technological revolution. Already, we can integrate harvesting information with our sprayers, seed drills and fertiliser spreaders."
Export markets
Beyond the home market – which accounts for 40% of the Kuhn Groups total production – export manager, Roland Rieger, looks for opportunities to build market share in over 50 countries worldwide.
In the UK, Kuhn Farm Machinery at Telford, Shropshire, represents the third largest export market for the company, accounting for 11% of the export business. Germany and North America make up the lions share, with 22% and 24%, respectively.
"In the UK, Kuhn has the biggest share for power harrows and we are among the top three players in fertiliser spreaders and mower conditioners," says Mr Rieger. "And we are looking to improve on our share of the UKs plough and diet feeder markets."
Reinvestment continues at Kuhns four plants at considerable pace. Last year, 100m francs were invested in a new electrostatic paint facility at Saverne, while at the Kuhn-Huard facility a new plough factory is nearing completion, at a cost of 70m francs.
The emphasis is on quality. "The new plough factory will increase production capacity and improve quality," says Mr Siebert. "We intend to stay in farm machinery manufacturing for as long as possible, but we can only do it with satisfied customers."
At Saverne, Kuhns foundry has developed an enviable reputation for quality, being one of only five out of 550 foundries in France to hold European quality assurance for the production of spheroidal graphite cast iron.
Such quality means Kuhn also produces castings for other manufacturers including Mercedes, John Deere, Agco and Volvo.
As part of the quality control procedures, each load of raw material arriving at Saverne is sampled in Kuhns lab before being offloaded; any load failing to meet the companys high standard is rejected.
And during every casting operation, random samples are sent to the lab for analysis. Within 14 seconds, a spectrometer reveals the content of 22 elements used in the casting process, the foundry is able to make adjustments to the process when necessary.
Production line quality control also includes machine tool operators manually measuring every component , which are then randomly double-checked by a computer measuring system. After assembly, every machine is operated and checked for 10-20 minutes, before receiving its top coat of paint and decals.
The final step in the quality procedure is to randomly select one machine from a completed batch then abuse it solidly for a minimum of 10 hours; larger machines such as the Alterna 500 mower conditioner can receive two days of solid abuse.
"With these quality procedures in place, our warranty claims represent only 0.7% of turnover, and I am confident we can reduce this further," says Mr Siebert.
KUHNGROUPDATA
• Base Saverne, France
• Annual production over 60,000 machines
• Turnover 2.2bn francs in 1998
• Product lines 21 ranges of equipment
• Group employees 1650
• Production 40% for French market; 60% exported