Grenzebach Corp.

A material differenceKeith Regan learns how employee longevity, intense training and a culture of improvement have made Grenzebach Corp. a market leader in materials technology, positioned for expansion into new markets. The parent company of Newnan, GeorgiaÔÇôbased Grenzebach Corp. was founded in Bavaria, Germany, in 1960 with seven people. Today, Grenzebach has a strong global presence, with 1,400 employees in the niche market of manufacturing equipment production, specifically flat building materials like wallboard and gypsum board as well as flat glass and high-quality veneer. Through close cooperation with its customers, the company produces individual, customized solutions. Those business partners include such well-known names in building products as Georgia Pacific and US Gypsum, as well as a growing roster of solar panel producers. ÔÇ£Every project is 100 percent customized for their needs and is done so they can maximize production quantity and quality,ÔÇØ says Stefan Grenzebach, president and CEO of the companyÔÇÖs North American division. The company provides services that range from designing entire plant layouts to creating turnkey solutions. Grenzebach maintains and updates equipment on an ongoing basis for smaller-scale projects where existing factory lines are updated or retrofitted with new equipment. Customer collaboration will often result in the development of new processes, techniques or equipment. The company traditionally reinvests approximately eight percent of revenue into new product development each year. As Grenzebach builds out its intellectual property portfolio and improves on an extensive four-plus decades of experience, the corporation recognizes that its employeesÔÇÖ expertise and know-how keep it on top of its chosen markets. The company seeks to minimize attrition, as evidenced by its first three US workers still being on the payroll and the German parent company having several workers who have been with the company since it was founded. Asked to explain that level of loyalty, Stefan Grenzebach points out, ÔÇ£We treat our people very fairly, and we also have a kind of a family atmosphere. WeÔÇÖre a family-owned company, and the founderÔÇÖs perspective is that if the company is doing well, our people should also do well. The other big factor is that we work internationally, so many of our employees get to travel, get to see a lot of different areas and see that every project is different. ItÔÇÖs not like theyÔÇÖre designing the same doorknob every day for years and years. Every project presents challenges in manufacturing, engineering, software and controls. I think thatÔÇÖs why people like to stay. There is a variety in the work and also a chance to feel they are making accomplishments.ÔÇØTo keep the company infused with young talent as it grows, Grenzebach has an extensive internship and training policy, including a Germany-based program that involves three full years of training across the company. In the US, partnerships with Georgia Tech University and other educational institutions foster the same idealsÔÇöexposing new recruits to the entire scope of the companyÔÇÖs work. ÔÇ£We may hire the most talented engineer in one area, but we want him or her to be able to understand and appreciate how all the other components of what we do come together in our solutions,ÔÇØ says Stefan Grenzebach. ÔÇ£As we have diversified into more products, we have to have very knowledgeable people. We have to have people who can provide the total solution.ÔÇØGrenzebachÔÇÖs US facilityÔÇöa 110,000-square-foot plant on nine acres near AtlantaÔÇöis ISO 9001 certified, following strict quality guidelines laid down by the parent company and lean and continuous improvement techniques shared among the companyÔÇÖs various sites around the world. Traditional manufacturing improvement techniques have their limitations, since GrenzebachÔÇÖs typical customer engagement lasts from six months to more than two years and results in entirely customized machinery and solutions. Still, over eight years the company was able to drive 25 percent cost savings in its manufacturing operations without laying off any workers and was able to triple the revenue of the Georgia facility without any major increase in its manufacturing staff. Some of those gains came through investment in capital equipment, such as new heavy-duty CNC mills that will serve the company as it continues to grow. The total investment in Georgia has been more than $18 million.As many of its projects have long completion windows and because commodity and raw materials prices can be volatile, Grenzebach tries to use its size and strong supplier programs to lock in pricing whenever possible. The company also remains flexible in its production approach, moving work to the locations where it makes the most sense given the economic environment. Currently, that means shifting some work performed for customers in Europe into the United States to take advantage of favorable currency exchange rates. ÔÇ£In some cases, we produce components in the US and send them back to Germany. Our main focus is still to support the North American and South American markets, but if we have the capacity, it makes sense to do this as well.ÔÇØ Grenzebach also has two facilities in China that can be leveraged to keep costs down, Stefan Grenzebach notes.Today, the companyÔÇÖs glass line, which was created in the 1970s, has gained a foothold in the fast-growing solar panel production field, work that has helped pick up some of the slack due to a weakened home-building sector. Grenzebach itself has a history of sustainable practices, with all of the companyÔÇÖs European facilities having solar panels installed on the property. Stefan Grenzebach says the company is well known in its niche markets for its expertise and customer-centric approach. Currently, the company is seeking to build its name in a new area, with the installation of robotics-based airport baggage-loading and -unloading equipment. ÔÇ£WeÔÇÖve sold several of the systems in Europe already, and weÔÇÖre trying to promote it because we know itÔÇÖs a way to increase safety and security while reducing manual handling of baggage. WeÔÇÖre not a well known brand name in that field yet, but we do feel our track record of excellence speaks for itself.ÔÇØ┬á