ANNUAL REPORT 2018

MARKET LEADERSHIP
IS NO COINCIDENCE.

Dear shareholders,

As is the case every year, we would like to mark the publication of the annual report by examining one of Geberit’s special skills in more detail. This time around, we are focusing on our investing activities. In 2018, investments in property, plant and equipment and intangible assets reached a new all-time high of CHF 162 million. The largest part of this sum was used for expanding and modernising our production capacities and for the permanent optimisation of processes. What is probably unique – at least in the sanitary industry – is the systematic way in which investment projects of all sizes are approached.

We would like to take this opportunity to introduce this way of thinking and, using four current examples, demonstrate how we put investment plans into action.

Albert M. Baehny, VR-Präsident
Albert M. Baehny
Chairman of the Board of Directors

EDITORIAL

The chairman on the business year →

HIGHLIGHTS

Business year → Financial year → Sustainability →
Clever investment
01 Specialising
02 Clearing up
03 Unravelling
04Organising
Clever investment
01 Specialising
02 Clearing up
03 Unravelling
04Organising

Clever investment

We set standards with our products and in our plants. Because we constantly invest in production at Geberit. The Geberit Production System (GPS) is our guideline.

Whether expanding our production network, optimising processes or starting the production of new products, time never stands still at the Geberit production sites. In order to ensure that all investment projects large and small achieve the desired effects at the right moment, they follow the principles of the Geberit Production System. These are to be best-in-class thanks to stable, standardised processes and the systematic avoidance of waste.

FACTS AND FIGURES

5%
average increase in productivity per year
7286
women and men work in production
10
years with GPS as a guideline in pro­duction
The flowing factory
Robert Lernbecher

Head of Production Plants Plastics & Metal

Play Video

INVESTMENTS IN 2018

FROM LARGE TO SMALL – A LOOK
AT FOUR INVESTMENT PROJECTS.

01

SPECIALISING

A STRONG PRODUCTION NETWORK EMERGES.

Location

Langenfeld (DE) and
Ozorków (PL)

PROJECT

Expansion and modernisation of fitting production

INVESTMENT

EUR 44,000,000

Location

Langenfeld (DE) and
Ozorków (PL)

PROJECT

Expansion and modernisation of fitting production

INVESTMENT

EUR 44,000,000

Geberit Mapress – the supply system with metal pressfittings – has been used in industrial applications and residential and infrastructure projects for decades with great success. The extensive range with various pipe dimensions, product materials and fitting types requires a high degree of flexibility in production. As early as 2015, it was clear that there was not enough space to cope with future growth at the site in Langenfeld (DE). The solution: demolition of the existing plant and construction of a new one, modernisation of the machine fleet and a focus on flow production of high volumes at the existing production location, with the labour-intensive production of small volumes relocated to the site in Ozorków (PL).

LANGENFELD
OZORKÓW
2015
April

Identification of the site for labour-intensive production of small volumes

Geberit
December

First employees trained in future production methods

Geberit
2016
February

Assembly of an initial pilot line for future flow production

Geberit
October

Decision on investment in new plant

Geberit
2017
April

Mapress distribution logistics relocated to the Geberit logistics centre in Pfullendorf (DE)

Geberit
September

Groundbreaking ceremony for production hall and administration building at the former logistics site

Geberit
2018
February

Foundation stone laid for expansion of the production hall

Geberit
April

Billionth Mapress fitting is produced

Geberit
July

Relocation of the production of Supersize fittings completed

Geberit
2019
From March

New building is moved into and future large-scale production is developed

From April

New buildings moved into

TIMELINE IN DETAIL
02

CLEARING UP

THE GEBERIT PRODUCTION SYSTEM
TAKES ROOT.

Location

Ekenäs (FI)

PROJECT

Introduction of the Geberit Production System (GPS)

INVESTMENT

EUR 1,700,000

Geberit

It is wintertime in 2015, when Marius Guffarth arrives in the Finnish town of Ekenäs. He is tasked with introducing the Geberit Production System at the newly acquired ceramics plant. For this purpose, the qualified engineer spends almost two years at the Finnish plant. He first analyses existing processes, organises GPS workshops and turns the flow of material completely on its head by introducing both optimised and entirely new processes. The GPS specialist convinces his Finnish colleagues of the benefits of the new approach. Together, they manage to increase productivity by 12 per cent in the first year alone. The cold start in the Finnish winter is thus quickly forgotten.

Location

Ekenäs (FI)

PROJECT

Introduction of the Geberit Production System (GPS)

INVESTMENT

EUR 1,700,000

Marius Guffarth Audio diary 2:51 minutes Geberit
Here we see the ceramics plant in Ekenäs. Ekenäs is around 100 km south-west of Helsinki. The plant, which is located in the heart of a forest right beside the sea, has a total area of 58 hectares.
When I arrived in Ekenäs, the yard was full of pallets with half-finished ceramic sanitary appliances, packaging materials and waste, all of which were exposed to the elements.
The hall itself was packed with ceramic sanitary appliances. A total of 35,000 appliances are waiting to be assembled and packed here.
In order to get to know my colleagues and the on-site processes, I spent the first few weeks working in assembly and packaging.
With the help of the colleagues, we developed new production, assembly and packaging methods and designed workstations in line with flow production. We built a mock-up in order to simulate these workstations and processes.
Not only did we optimise the actual production process, but also the provision of materials. The provision of components was thus structured, organised and realigned.
Once the new assembly processes were defined, we looked at which machines and systems could still be used. Here we have an old grinding machine that was completely renovated by the in-house maintenance team.
Nowadays, lifting and moving the ceramic sanitary appliances from the truck by hand is no longer necessary. A robot with gripping device takes hold of the ceramic sanitary appliances and sends them straight on for quality control.
In the newly developed production process, the ceramic sanitary appliances are transported to the employee on a conveyor. The employee is then able to check the quality of the appliance at an ergonomic height. If the appliance is given the green light, the employee sends it on directly for assembly. If there are some minor imperfections, the employee can reglaze the appliance in the adjacent station and then send it back to the kiln.
This is the plant in Ekenäs today. The floor is spick and span. The hall is tidy and all production processes are tailored for optimal flow production according to the Geberit production strategy.
Over 25 colleagues worked on the project on site. From the outset, they were highly motivated and proud that investments were being made at their plant.
PLAY DIARY PLAY DIARY
03

UNRAVELLING

CAPACITY EXPANSION GETS NEW SCOPE.

Location

Pfullendorf (DE)

PROJECT

New hall

INVESTMENT

EUR 14,100,000

In Pfullendorf, everyone is well versed in making great progress with small changes. Thanks to optimisations in line with the principles of the Geberit Production System (GPS), productivity has been increased here year in and year out. Compared to this, the latest investment appears to be a minor revolution at first glance. However, the reality is very different. Completed in 2018, the new hall is not turning the tried-and-tested processes on their head. Instead, it creates scope in the old hall for expanding capacities in manufacturing concealed cisterns – something that was urgently needed.

Location

Pfullendorf (DE)

PROJECT

New hall

INVESTMENT

EUR 14,100,000

Albert M. Stefan Schneiter
Klaus Keller
Area Manager Production in Pfullendorf
Klaus Keller
Stefan Schneider
Area Manager Production in Pfullendorf
A tour of the plant
with the professionals
Play Video
04

ORGANISING

DIRECT FLOW OF MATERIAL LEADS TO INCREASED PRODUCTIVITY.

Location

Gaeta (IT)

PROJECT

Introduction
of the ceramics supermarket

INVESTMENT

EUR 210,000

Location

Gaeta (IT)

PROJECT

Introduction
of the ceramics supermarket

INVESTMENT

EUR 210,000

Geberit

"The relatively modest investment in the supermarket has had a major effect. We have been able to increase productivity in the packaging areas by 20% while reducing the storage space required by one-third."

Marco Luigi Schiavo
Managing Director at Pozzi-Ginori S. p. A. in Gaeta
Geberit

The material flow at the ceramics plant in Gaeta in southern Italy was characterised by long distances, half-full pallets and a lack of overall coherence. The situation is now being rectified by a newly established “ceramics supermarket”. Following quality control, all ceramic sanitary appliances that have been given the green light are now sent directly to this supermarket, where they are clearly sorted. As soon as enough appliances of the same type are available to fill a full pallet, they are taken from the supermarket and packaged. The result is a highly efficient, direct and simply structured flow of material.

The optimisation of processes

is seen by Geberit as an ongoing commitment – one which constantly spurs us on to be innovative and able to renew ourselves while keeping profitability at a high level.

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