100 Years of August Rüggeberg August of Years 100

942 1943 1 926 1928 1927 1 1989 1990 ol. 17, No. 31 September 1997 September No. 31 ol. 17, The Company Newsletter of Newsletter Company The & Co. GmbH Rüggeberg August Marienheide V H 1991 1992 1993 1994 1995 1996 1997 1918 1919 1920 1977 1978 1979 1980 1981 1982

1912 1913 1914 1915 1964 1965 100 YEARS OF AUGUST RÜGGEBERG AUGUST OF YEARS 100

944 1946 1945 936 1937 1957 1958 1959 1960 1961 1962 1963

1 1916 1917

1897 1898 1899 1900 1901 1902 1903 1904 1905 1906 1907 1908 1909 1910 1911 1 2

The small hammer forge is eventually In search of skilled labour and more Before 1897 taken over by the son, Johan Frie- favourable transport conditions, drich, who contracts local farmers to August Rüggeberg and his sons, Of poets, cut files at home from blanks supplied Robert, Emil and Alfred, decide to by the company. Also dating from this move the company to Marienheide, file cutters and period is the company’s logo, a horse some 40 kilometres away. “rough ridges” jumping through the hoop. The new location is noted for its skilled Files were known many centuries before our era. The Greek poet Aesop, writing in the 6th century B.C., already composed a fable about “the serpent and the file”. In Roman history, too, files are frequently mentioned, particularly as instruments for working wood and marble, precious stones and iron. In a letter by Theodoric the Great, dating back to the fifth century A.D., he expresses his thanks for a shipment of swords “so evenly sharp that you’d think they were not finished with the The first company photo of 1897. file but cast from a glowing furnace.” From Leonardo da Vinci, the great painter, sculptor and inventor, we have Johan Friedrich Rüggeberg produces the a sketch of a filemaking machine first files at Voerde (approx. 1500) equipped with several pointed knife-shaped hammers. Business at Rüggeberg commenced Thalers, stubers and pfennigs were on a modest scale, yet with encour- the currency of the day. In the subse- aging success. In the small town of quent currency reform, one thaler is Rüggeberg (denoting “rough mountain exchanged for 3 marks. The price of a ridge”) in the Ennepetal-Altenvörde medium file, 300 mm in length, would area, Johan Caspar Rüggeberg began thus have amounted to about 65 to produce the first files and rasps pfennigs. towards the end of the 18th century. 1897 - 1907 Towards Marienheide The industrialization changes the country’s social and economic fabric. The German economy is booming. Many file cutters from the Ennepetal valley have left for the blossoming industrial cities in the Ruhr basin. August Rüggeberg gives the company his name

Ancestral home: the Westphalian town of Rüggeberg

According to oral tradition, his shop in- itially performed only the actual tool forging operations. Steel was melted in a puddling furnace, shaped into rods under water-powered stretching hammers, then forged into blanks which were annealed in a furnace fired with beechwood logs. The decarburized layer was filed off before the finished blank was transferred to the cutting shop for the teeth cutting process. Alfred, Emil and Robert Rüggeberg move the company to Marienheide 3 1917 - 1927 Manpower and material get scarce A 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 mass starvation. All food is strictly rationed. Siberian temperatures, falling as low as -180 in the Rhineland, cripple the economy. Coal supplies are disrupted as the rivers are frozen solid. The A skilled workforce assembled Packing room staff on the first approx. 1900 loading dock news from Russia breeds civic unrest throughout the German empire. Peace proposals from various govern- manpower, organized mainly in the ments indicate a growing war weari- form of an extensive cottage industry. 1907 - 1917 ness in Europe. Nevertheless, two more Rolling mills supplying the necessary years must pass before Germany signs steel rods are situated virtually next Mobility and growth mark the Versailles peace treaty imposed by door. the course of progress the allied powers. The first factory building, although still At Rüggeberg, the management’s prime a simple brick structure, reflects the In 1907, a long-distance automobile concern is to keep up production. company’s progress from a manufac- race captures the world’s attention. The Women take the place of conscripted turing workshop to a modest industrial route extends from Peking to Paris. production workers on the assembly enterprise. The product range, ori- After a two months’ ordeal over bad lines.Although only the file factory is ginally consisting mainly of rough files roads, rutted dirt tracks and precipitous operating, sourcing sufficient raw ma- for use by blacksmith’s shops, is ex- mountain passes, F. Scipione Borghese terials has become a serious problem. tended to a line of machinist’s files in his four-cylinder Itala car is the first to Through a determined effort, the and single-cut files employed mainly pass the finish line. shortage can eventually be overcome. for sharpening saws. Sales - already Four years later, in 1911, Rüggeberg’s involving travel to Holland, Belgium acquisition of its first company car and Denmark - are originally handled causes a commotion of almost identical by the three brothers themselves, be- proportions in and around Marienheide. fore a number of travelling salesmen Business progress is also reflected the and field representatives are hired. company’s building and modernizing activities. Addition of the first loading In 1903, a patent is obtained for a dock serving the company’s packing “half-round file with spiral paths ar- room makes shipping operations more ranged in serpentine lines on a round efficient as growing volumes of PFERD back” brand files are sent out to the customer.

A highly skilled ﬁle cutter can produce up to four ﬁles an hour, depending on the type and size of the cut

Producing files is still a laborious manual process. Bold entrepreneurs depend on the support of strong craftsmen, such as blacksmiths and grinders. These supply the blanks which are subsequently finished by file cutters using a hammer and chisel. To achieve teeth of even depth, the The company’s chauffeur, hammer must always fall on the chisel Karl Bellingrath, poses proudly with new ADLER car from the same height. 4

Drive problems are solved by means of 1927 - 1937 an ingenious solution, the so-called flexible shaft machine. This new A new management technology represents a milestone that will lead to the replacement and human- generation ization of hard and labour-consuming In May 1927, Charles A. Lindbergh manual work. completes his non-stop flight across Determined to serve the needs of the the Atlantic. Adolf Hitler holds his first emerging precision machining market, speech in Berlin. The crisis of the Rüggeberg launches the production of Weimar Republic and its political mounted grinding points at about the parties is coming to a head. Election same time. In a brochure produced for results reflect the disaffection of large the 1936 Leipzig spring fair, a product parts of the population. The Great range about to evolve into a compre- Depression and the moderate parties’ hensive modular system of surface ma- inability to provide solutions pave the chining tools is already impressively way for political extremism, giving rise presented. to the most painful chapter in German history. In 1942 Rüggeberg is granted the first patent for its rotary milling cutter

In 1928, Alfred Rüggeberg is appointed Hans Rüggeberg follows in his fathers The ﬁrst trade fair brochures have a Head of Distribution by his father footsteps in 1933 by taking over the powerful appeal, even in the early years management of Company Operations

A far-sighted strategy earns Rüggeberg’s breakthrough In these days of economic and social turmoil, Rüggeberg nevertheless suc- ceeds in pioneering a revolutionary breakthrough in metalworking technology. The linear motion of the traditional file is converted into rotary action. The new concept forms the basis for the development of the handheld rotary milling cutter, a tool outperforming the cut file due to its optimized tooth geometry and angle of twist. With far-sightedness, the company’s owners had identified the trend towards an increasing use of power tools that would put an end to the dominance of manual files. Increased building activities emphasize the company’s growing status 5

manufacturer of mounted grinding 1937 - 1947 points. PFERD - a worldwide presence on trade fairs Manpower shortage At the end of the war, the Konitz site is lost. At Marienheide, the US authori- and exhibitions amidst the ravages of ties allow a re-start of production A desire to keep up the dialogue World War II activities. The permit is later suspended with customers, retailers and indus- for a brief period when British forces try specialists has always charac- The airship “Hindenburg” is destroyed take control of the region. terized Rüggeberg’s approach. Our by fire while landing at Lakehurst (New tradition of exhibiting products on York). Although its cause is never fully trade fairs goes back to the start of established, the accident marks the Vintage filemaking the century. end of the once-promising airship ser- machine made The theme of the company’s pre- vice on the North Atlantic route. sence on the 1936 Leipzig spring In the German empire, a system of ri- user-friendly fair is the “Exemplary Use of Rotary gid controls and coordination of public Tools in Machining Materials of Inter- opinion has been imposed. All political In the early ‘40s, a number of filemak- est”. At the first post-war industrial parties have either dissolved or subor- ing machines were purchased from fair at Hannover in 1947, Rüggeberg dinated themselves to NSDAP suprem- the Backhaus company. All are of the is likewise in attendance. Although acy. Opponents of the government ha- single file production type and devoid the booth floor still consists of peat ve been locked away in camps, or of automatic functions. In the years mould, we are determined to meet fled the country. Resistance is sup- the public’s growing demand for in- pressed with cruelty and terror. Europe formation about new products and

The company is forced to relocate to Konitz in West Prussia is living on the eve of the Second World War. Veteran filemaking machine restored to 1997 Cologne Hardware Fair mint condition This period of history has a lasting impact on the development of our com- 1943/44, some of these machines are solutions, prices, and delivery con- pany. Marienheide is surrounded by rebuilt by Hermann Schmitz of Gogar- ditions. large armament factories, creating a ten (Märchenwald), a gifted and ex- Today, the Cologne Hardware Fair general shortage of labour. Rüggeberg perienced file cutter. He manages to has become the cornerstone of decides to erect a new facility in the achieve a substantial improvement in Rüggeberg’s trade fair activities. West Prussian town of Konitz. The the user-friendliness of these machi- Our increasingly sophisticated production of ceramic tools and the nes, as well as a reduction in non- booths have become the venue of machinery department are shifted to productive cycles. ever new product presentations and the new site. By this time the company live demonstrations, while product has grown into Germany’s largest information is disseminated in the form of a diverse range of catal- Increasing hardness ogues, price lists and brochures. This grass-root marketing effort sets 1949 the production of carbide-tipped the stage for each new sales year. milling cutters is already in full swing. But not only the trade fair “high- The first units are still produced on lights” are the subject of our atten- converted Kirmer machines. The late tion. Numerous small and in-house ‘50s mark the start of our proprietary exhibitions are becoming increas- development of automatic hard metal ingly important and require a com- grinders, briefly referred to as HM I. petent approach. Today, Rüggeberg The machines are followed by the attends over 20 trade fairs each HM II generation (1980) and by the year, handling a designed trade fair In 1939, the Marienheide facility acquires subsequent CNC-controlled HM III area of approx. 1000 sq.m. a new look (1983) and HM IV (1993) types. 6 Interview with Hans Rüggeberg, Senior Chairman Company history in a personal retrospective

What are your thoughts, looking back the economic burdens it imposed. My on 100 years of company history? father and my uncle would have been I was born in 1910, so the foundation able to comment profusely on this of August Rüggeberg at Marienheide subject. But they somehow managed in 1897 took place before my time. My to keep up production, despite the father and his brother, Robert, handed scarcity of raw materials. Then came down a flourishing company to myself the period of general confusion which, and my cousin, Alfred. When my father in 1933, ended in Hitler’s ascent to died unexpectedly early in 1936, I was power. Unemployment was peaking at only 26 years old. My cousin Alfred over 5,000,000, with virtually no social had been putting his shoulders to the security to speak of. It seemed like a plough since 1928. As for myself, I still miracle, the way new jobs materialized had to struggle. Although I had been quickly out of nowhere. groomed as successor and had imbibed the workings of the company And what enabled the company to from infancy, so to speak, I found expand its rotary tool range during myself suddenly facing the serious this period? side of life. I was guided by my father’s Our company gathered significant last advice to “keep a clear head, strength at this time, mainly due to the boy.” That was enough. Verbosity was There is a nice little poem that goes general rearmament effort. We came not the style of the early Rüggebergs. with this picture: to benefit specifically from the air force’s enormous demand for rotary “Two cousins, stepping boldly forward, tools. It was our job to manage the bear a valise here side by side, company, and we put all our commit- as is their habit and the custom, ment into that. But where was this each pulling half of the same weight. general concentration of power taking us? History has taught us. My father, Which tells us much can be who tended to be quite a sceptic de- accomplished spite his entrepreneurial spirit, took a by moving jointly, hand in hand pessimistic view much earlier than I and in the same direction, surely did. So, things came over us the way not just towards a trade fair stand.” we would never have anticipated them. If you ask me personally for the Externally, our company offered little effects of World War II, I must say I still more than the usual appearance dur- remember and mourn our 49 employ- ing the first half of our century. The ees who died in the prime of life. visitor was greeted by a rather ugly- Hans Rüggeberg looking red brick building. How did you go on after the Second Today, I am still overjoyed and proud World War? The year was 1933. A period of turmoil that we were able to do so much After the war we were back to square began. State politics began to intrude building. Our sons, Tom and Jan, have one, in every respect. Peace did not into every aspect of our lives. Although, even expanded this activity. And that’s come to Marienheide until April 12, due to some crafty manoeuvering, the how things are supposed to be, I 1945. But our district, although period of Hitlerism left the company guess. Summing up, I may choose a ravaged by bombs, managed to re- largely unscathed, and we were quotation from scripture: “Our years establish a normal course of life quite personally spared. It was always awful are threescore and ten, yet is their quickly. Thanks to Professor Erhardt, I when they forced us to grant these strength labour and resolve.” must say (German minister of econo- “eaves of absence” to draft staff into mics and subsequent Chancellor). the military, and there was no way How did the two World Wars influ- We had to replace the capacity of our around it. Towards the end of the war, ence the company’s development? plant in Konitz (West Prussia), to re- many of these employees left without a Between 1914 and 1918, only the file structure our in-house organization, prospect of ever coming back. factory was up and running. Conscrip- and to set up new sales offices. All this Still, somehow we managed to keep ted production workers were replaced was a concurrent process. The pro- the company on track, mainly because with women, for the first time ever. The duct range was expanded to include the management and the workforce triumphant ecstasy that followed the carbide milling cutters and fibre discs. were acting in joint enterprise. The spi- first few victories soon gave way to vi- We also sought to establish overseas rit is reflected in this photograph, cious trench warfare and the ignomi- contacts quite early, not only to sell which shows Alfred and Hans carrying nious end of the empire. This was fol- our products but also to gather inspi- their suitcase. lowed by the treaty of Versailles and ration from these foreign markets. 7

When did you start working in the development I was lucky to have them spectives go, I would like to say the company, and when did you retire? by my side, with their competence and following: if we manage to align the I started to work for the company in relentless dedication. Our success is company with modern management late 1933 and retired in 1980, about their reward, too, and I am glad and principles, as is the current owners the time of my 70th birthday. Thus, I grateful for that. declared goal, it will survive as a suc- passed on the baton after 47 years. Otherwise I would much rather refrain cessful entity. We must work as a My cousin, Alfred, did the same after from naming particularly competent team, and teamwork has always been 52 years. Our sons, Jan and Tom, took and diligent staff members, for the one of our first and foremost strengths. charge. It was a good decision, simple reason that I would probably although not an easy one for ourselves, forget other, equally deserving people Our senior officers, Mark Kesseler, Dr. their fathers. who gave us their input and support. Rudolf Holzhauer, Willi Drux, Karl We worked as a team, dedicated to Wette and Erich Kaiser, set up the How would you summarize your the Rüggeberg cause on both the hu- “ring”, which discussed all important career? man and professional level. and confidential issues with the owners Upon leaving high school, I underwent a one-year practical traineeship that took me through all major depart- ments of the company. In the autumn of 1928 I enrolled in a course of mechanical engineering at the Technical University of Munich. After my prelimi- nary examinations I completed a special programme, mainly in metallogra- phy and business administration, to prepare me for the job. This was followed by a number of stays abroad, mainly in Liège and Brussels. It was my father’s request, dictated mainly by his poor health, that I should join the company as soon as possible. He died in the autumn of 1936. His brother Robert, who was ten years his senior, had already retired and transferred his shares to his son Alfred by then. Alfred was responsible for sales, while I was put in charge of operations. The „leading four“ with flag flying (from left: Tom Rüggeberg, Hans Rüggeberg, Alfred Rüggeberg, Jan Rüggeberg) How many employees did the I would like to mention my two trusted and came to adopt so called “ring company have at that time? secretaries, Emmi Hütt and Anneliese resolutions”. This tradition is still very In 1932, our staff complement was Heimes, who unfailingly shared their much alive and has proven its effec- down to between 80 and 100. This boss’ worries, and the late Ernst tiveness to this day. was the all-time low. For a brief transi- Förster, plant steward for many years, tional period we were even forced to who, as a dedicated labour unionist, For many years you worked under work short hours and lay off personnel always maintained his freedom to take an enormous professional strain. back then, but these difficulties were decisions in favour of the company Was there any time left at all for soon overcome with the launch of our and its workforce. your family and hobbies? new production range. Indeed, the challenges were formida- A family-owned company in its sixth ble, and we went through many a trial Whom do you recall as your closest generation - how do you view of strength. In the end, most problems collaborators over the years? Rüggeberg’s perspectives today? were overcome and were even spared I am glad for this opportunity to com- the need to go to war. If you ask me if memorate all the men and women Yes, you might almost call us an entre- there was enough time for the family who gave us their untiring support preneurial dynasty in which I, for in- and hobbies, I can answer this in the during the period of reconstruction. In stance, form the fifth link in the chain. affirmative but only with some reserva- my father’s day, we had capable Our enterprising spirit stirred first in tions. Given the many commitments of senior officers such as Emil Köster, 1770, although this was still at Voerde, the companies owners, it was often Ernst Rönchen and Otto Pattberg, in pre-Marienheide times. At the be- necessary to make concessions at the who were still around when we took ginning, the going was rough, not to family level. There is always regret af- over. They found their worthy succes- say hazardous, especially when the terwards, maybe even a weight on sors in Erich Kaiser and Dr. Rudolf man who started the chain died at the your consciousness. And as far as Holzhauer, who worked with me for age of 38. But that is a different story. hobbies go, such as my horse riding, I many years. In managing the com- What I mean is that we had to overcome could indulge these only to a limited pany and overseeing our product severe setbacks. As far as per- extent anyway, for reasons of health. 8

Did your professional success made up for these deficits? 1947 - 1957 As I said, looking back on my work, I have a positive feeling of achievement. Conquering the market Being virtually the sole survivors of the German filemaking industry, we have with grinding and cut-off managed to expand our product line- wheels up by adding a range of advanced rotary tools and to maintain our mo- The mood in post-war Germany is still mentum advantage through an inces- depressed. Ruined cities and indus- sant development effort. My father, tries, economic and administrative The first car body files are milled as early as in 1955. Our special expertise and out- August Rüggeberg, once said that chaos, and widespread political disaffection have their impact on the overall standing product quality have won us the hard work can only be savoured if it is status of a leading supplier to the automo- ultimately crowned with success. And mood. tive industry. that’s just what happened in my case. “Our policy is directed neither against It was always an objective of mine to a country nor against an idea, but Apart from hard work ... stay personally in touch with all mem- against famine, poverty, despair and bers of our workforce, and to manage chaos.” With these words, George the company so that an atmosphere of Marshall describes the US occupation good manners would prevail at all strategy. The US government resolves levels. I wanted to preserve a spirit to ship 1.2 million tons of grain to Ger- that would make people like to work many to avert mass famine. The im- for Rüggeberg. Our enormous work- plementation of the Marshall Plan is loads, which drew a lot of criticism taking shape. from our sons in their youth, have now become their fate as well. For them, it Angle grinder wheels has become a question of maintaining enough entrepreneurial leeway to retain their decision-making freedom In the late ‘40s, the owners, Alfred and in the future. Hans Rüggeberg, travel across the At- lantic. Industry overseas is already If you could start all over again, using synthetic resin bonded, rein- where would you act differently? forced grinding wheels for high rota- When I left school and was asked tional speeds. Soon the breakthrough what I would like to do for a profes- that will revolutionize industrial grind- sion, I stated my determination to join ing and cutting applications is taking hold in Germany too. the company. Once, on a Sunday walk ... Rüggeberg has established a tradition of with my father, he told me: “If you be- social get-togethers taking the form of staff come my successor, it appears to me parties and outings. These events do much that, given the complexities of the file- to improve the company atmosphere. making business, your life will have to change in many ways.” And indeed, there were many ups and downs. “Those damn files”, as the standing expression went in our company, did indeed determine our lives. Without regretting my decision in favour of an entrepreneurial career back then, I wouldn’t have minded becom- Rüggeberg launches its range of Elastic ing a doctor. When I mentioned this to wheels my father once, he expressed aston- ishment. “Why didn’t you tell me earlier?” Obviously, he would have under- With the development and introduc- stood if I had chosen another career, tion of synthetic resin bonded grinding and I appreciated this attitude very and cut-off wheels designed for use much. Back then, self-actualization on the increasingly popular angle grin- was less of an issue, I guess. Never- ders, Rüggeberg scores another major theless, I managed to achieve it, success in 1951. having lived as I did. Today, the production and sales of Mr. Rüggeberg, the editors thank Elastic wheels contributes the greatest you for giving us your time. share to our company’s turnover. The current lineup comprises wheels bet- Hans Rüggeberg enjoys himself on a staff ween 70 and 1250 mm in diameter. trip to Rüdesheim in 1951. 9

The first hydraulic four-column filemak- In 1959, a new office building is created ing machine, the forerunner of our mo- 1957 - 1967 to overcome space constraints. A high- dern hydraulically controlled auto- rise design is adopted, offering plenty matic filemaking centres, is developed Increased production of room for future needs on 8 floors in 1954. levels. A total of over 1,400 sq.m. of adds to administrative new working space is created. Jubilarians’ circle burden

In 1955, Otto Duhm becomes the ﬁrst employee to complete 50 years of service with the company. Deserving jubilarians are honoured once a year through an appropriate festivity. To- day, this “jubilarians’ circle” comprises over 280 people. Many veteran staff members still take active part in the workings of the company.

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

cilities is set up all over Germany to ac- of modern communication systems and Consistent customer celerate domestic shipments of PFERD improved logistics keep changing our products. Their inventory is made up sales force’s operating environment. By orientation mostly of top selling items, but also ca- 1985, our domestic offices are connec- This has been our first and foremost ters to regional demand variations which ted to the central computer at Marien- objective since the founding days of reflect the local industry and crafts heide via the Datex network. This gives Rüggeberg. Our customers must be structure. If unusual application prob- them access to all data and inventory given optimum support in addressing lems arise, the sales force is assisted by functions of the company’s main ware- their surface finishing and cutting specialized sales support staff. This house and results in a substantial cost needs, so that they can resolve the approach enables us to provide opti- improvements at the orders handling associated problems in the most cost- mum support and delivery services. level, relieving home staff of many efficient manner. The PFERD range of Foreign markets (Europe and overseas) routine administrative tasks. Starting in top-quality tools helps them to achieve are covered centrally by sales staff 1990, the regional warehouses are grad- this task. based in Marienheide. Sales are handled ually closed down. Their service function Until the early ‘50s, customer service is mostly via authorized distributors (import- is taken over perfectly by the central handled by a team of independent field ers). Wherever possible, an attempt is logistics units. representatives. A differentiation bet- made to enlist the support of strong Today, personal customer service is pro- ween final users and re-sellers has alrea- partners who are capable of operating as vided by 37 PFERD sales support repre- dy been implemented. In 1952, Rügge- a distribution base or “A-status” dealer- sentatives assisted by 27 in-house staff. berg replaces these field representatives ship. Later, in the ‘60s, our own distribu- International sales are handled by 14 with a salaried sales force. The new tion companies are established in subsidiary companies operating in the system allows us to rely on proven sales several European and overseas coun- relevant markets, supported by a team staff possessing the appropriate product tries. These organizations rely on the of 20 staff members in the Marienheide expertise. A total of eight regional sales work of permanently employed sales export department. Products are expor- offices with associated warehousing fa- support staff. The ongoing development ted into 110 countries worldwide. 10

August Rüggeberg’s Rhine-Westphalia at Lüdenscheid. The award deservedly coincides with Company Choir the choir’s 25th anniversary. In 1987, this anniversary is celebrated in the A jubilarians’ outing in 1961 sparks company’s assembly hall in the form the idea of August Rüggeberg’s com- of a goodwill concert uniting all other pany choir. Following talks between Marienheide choirs. the management and prospective Other landmarks were the concert performers, musical director Heinrich trip to Vitoria/Spain on the 25th anni- Pingel of Hagen is enlisted as head versary of that production facility, and conductor. On 4 May 1962, 27 sin- a major charity concert staged to- gers turned up for the choir’s ﬁrst gether with all other community rehearsal. choirs. In 1992, the choir is awarded its sec- The choir soon establishes itself as a ond master’s title at a competition permanent feature. It performs at staged in the Stolberg town hall - company celebrations and jubilees another landmark in its history. and soon cooperates with other These successful years are insepara- choirs. A concert at the Bad Driburg bly linked with the name of Paul The launch of the new “Elastic” product line calls for an expansion of production spa and one organized jointly with Gastreich. His outstanding achieve- facilities. In this photo from 1957, removal the Hagen Municipal Orchestra be- ment is based on competence and an operations are in full swing come its ﬁrst key achievements. untiring commitment to the cause of Founding years of key international subsidiaries The ‘60s mark the start of the interna- tionalization of markets. Numerous foreign subsidiaries are established:

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

Switzerland, too, receives its own subsidiary. PFERD Rüggeberg Werkzeug + Maschinen GmbH is estab- Choirmaster H. Pingel dies in April choral music. After 23 years, health lished in 1964. In 1995, the company 1972. Under his 10-year leadership, reasons force him to retire from his joins forces with VSM’s Swiss subsid- the choir had developed into a typical conductor’s post. iary to form PFERD-VITEX (Switzerland) male-voice choir. In August 1972, Mr. Since 1995, the company choir has AG, located at Brüttisellen near Zurich. Pingel is succeeded by choir director been managed by musical director Paul Gastreich of Altenhundem, who Michael Rinscheid of Attendorn. This takes the choir to a new level of suc- generation change is reﬂected in the cess. Major performances include a use of new scores and a new perform- grand concert with the Gürzenich ance style, implemented by the new Orchestra of Cologne, the church conductor with plenty of musical concert held in the Marienheide pa- adroitness supported by his never- rish church in 1983, featuring cathe- failing sense of humour. dral organist Adrian Bank, and the For the company’s 100th anniversary, repeat performance at Altenberg the choir has recorded its ﬁrst CD. Cathedral. Entitled “The sun awakens”, it repre- The years 1985/86 mark further musi- sents a collection of 25 well-known cal highlights in the choir’s history. German folk songs. A new production facility is After its successful participation in No doubt, our company choir has founded at Vitoria, Spain. Trading under the level 1 and 2 performance com- achieved much in its 35-year history. the name PFERD-Rüggeberg S.A., the petition in 1985, it receives the much- Its performances have been enjoyed site quickly increases in importance. coveted title of “Master Choir” in the by a wide public and helped to win 1986 Federal Choral Competition at many friends. By the way, 8 singers PFERD-Rüggeberg France is Lüdenscheid, organized by the Voice from the founding year, 1962, are still set up in 1966. The company has its Performer’s Association of North actively involved in the choir’s work. registered offices at Molsheim near Strasbourg (Alsace). 11

Seven at a stroke Round and round we go The electronically controlled revolving- type high-bay rack storage warehouse, briefly referred to as “high-ceiling rack”, is commissioned at Marienheide in 1970. In conventional warehouses, corridors, rack heights and access routes are very much a performance limiting factor. The revolving-type high-bay rack system has no intermediate corridors, Production in the new factory starts in The first chain saw files were cut individu- but operates on the paternoster 1975 ally on English Walters & Dobson ma- system, moving each storage unit past chines. Today, our modern manufacturing the loading and removal point on a ture of abrasive spiral bands, which lines produce more than 10 million units a bay-by-bay basis. Products can be have formed part of our product range year, using equipment which cuts 7 files conveniently stored and removed at since about 1955, is also transferred simultaneously. arm level, saving much time and labour. to Hermeskeil. The secret of the right blend A new mixing technology finds its way into our grinding wheel production. The newly commissioned BIZERBA system allows bonding formula to be automatically weighed and mixed. The changeover from punched cards to computer control is made in 1988.

Following the introduction of the new warehouse system in 1977 and last year’s replacement of the pre-mixers, Start of Hermeskeil Countertop displays boost product sales the plant receives a new main blending unit in 1997. operations By 1973, space problems and the shortage of skilled labour impose the Meanwhile at Marienheide, the pro- 1967 - 1977 need to establish a branch factory for duction of fan grinders is commenced. the manufacture of small-size, grind- Abrasive caps and cones are today Revolving high-bay rack ing and buffing tools. produced in Spain. Today, the Hermeskeil site produces system and Hermeskeil millions of mounted grinding points plant add new each year in over 2,000 different types, PFERD Austria, established in down to the “mini” variety with head 1975, is now headquartered at Linz. perspectives diameters of only 1 mm. The manufac-

Pferd South Africa (Pty.) Ltd. is established in 1968. A new production facility is built at Spartan near Johannes- burg. Cornerstone ceremony at Hermeskeil in 1974 12

Microbot alpha, the first robot used on Suggestive issues 1977 - 1987 Rüggeberg production lines, is made in America. Its duty is to supply our On 1 September 1985, the first plant automatic dressing machines at Her- agreement dealing with our Company Changing of the guards meskeil with mounted grinding points. Suggestion System (BVW) becomes It is followed by five more Mitsubishi effective. The first registered employee After half a century at the helm, Hans feeder robots who have since been suggestion dates back to 1944 and and Alfred Rüggeberg put their sons, performing their duty around the concerns the conversion of a filemak- Jan and Tom, in charge of the com- clock, as if by magic. ing machine. During the 30 years pany’s fate. Their work has been which follow, about 20 suggestions characterized by a partnership-based are put in writing. Most of them are management approach and a consis- evaluated personally by “Mr. HR” and tent dedication to the welfare of their rewarded with bonuses between workforce and staff. Their exemplary DM 20 and DM 250. achievement sets a high standard for Until 1985, the number the younger generation. In 1979, of suggestions declines Rüggeberg takes the leap across the steadily. In May 1995, Atlantic: the system is re-chri- stened “PVW - PFERD VORSCHLAGSWESEN Suggestion System”. Suggestions are coming in at a rapid pace. The year 1996, with 99 suggestions and total bonus payments ex- ceeding DM 49,000, marks an all-time high in the history of the suggestion system. And the motto stands un- changed: “Getting better with PFERD.”

POLIFAN®- surface grinding wheels - the new di- mension in grinding tools The PFERD product range continues to grow. Segments of adhesive material, bonded to a backing pad, form the basis of a product which is noted for its reduced vibrations and low-noise Jan Rüggeberg, MBA Tom Rüggeberg, M. Eng. grinding performance. The production of POLIFAN surface grinding wheels is launched. Commenced as a fully The “Jumping Horse” manual operation, manufacturing is shifted to an “assembly line” in 1990. In is born PFERD INC., USA is established. Today, the giant US market is The first edition of our company covered from the company’s head- newsletter is published in March, quarters at Leominster near Boston. 1981. It actually owes its birth to a necessity: in a company our size, with many international and domes- 1982 sees the foundation of tic subsidiaries, it has become diffi- PFERD Australia. The markets in cult for the individual staff member Australia and New Zealand are served to remain informed about events, from Dingley near Melbourne. contexts, and developments. A newsletter is just the right communication medium. Made by and for the members of our staff, it mirrors Rüggeberg’s unique character Boxing miracle and living corporate culture. With 30 1992, the first generation of automatic As of 1983, a new automatic chainsaw issues published over 16 years, it POLIFAN production machines take file packing machine replaces manual has also become a documentary of over the cutting and segment assembly filling of our “six packs”. It sets up our company’s evolution. process, now performed in a single boxes, inserts files and closes packs operating cycle. A second generation of unfailingly, in a matter of seconds. these machines is commissioned in 1996. 13

From the good old services allow Rüggeberg to concen- duct trays, while the PHR comprises trate all its domestic stock at one cen- 4,000 Euro-pallet positions. Today, an packing shop tral location. The regional ware- average of 450 orders per day involv- to advanced logistics houses, with their associated high cost ing some 2,200 items is picked and burdens, have become expendable. prepared for shipment. About 80% of The old “packing shop” remains in these items are routed to the com- use until the ‘60s, and even long af- The project for the planning and erec- missioning crew by a fully automatic terwards the term remains synony- tion of a central logistics facility at process. Items are removed from mous with Rüggeberg’s shipping Marienheide is born in the late ‘80s. stock on the basis of data displayed department. Customer orders are After a 13 months’ construction on a computer screen. The high-bay ﬁlled by removing products from long period, the new logistics centre is pallet rack still involves manual remo- storage racks and packing them for commissioned in late August 1991. Its val, but uses computer-optimized shipment on long desks. Many adroit technology instantly improves our stacker crane movements. hands are needed to keep the system customer service. Shipping times are Picked orders are packed for ship- going. signiﬁcantly reduced, overnight shipment, then dispatched to the custom- In the ‘50s and ‘60s, when the ments become the norm, and shipping er by mail, courier service, railway, or domestic and international distribu- errors are virtually eliminated. haulage contractors. tion organization is revamped to To follow is some explanatory infor- At a cost of over DM 13 million, the accommodate a new system of mation: the new facility comprises logistics centre represents the largest regional sales offices and warehouses two integrated warehousing systems, single investment in the 100-year his- to cope with an ever-increasing the automatic tray rack (ATL) and the tory of August Rüggeberg. It will en- product range, an upgrade of Marien- high-bay pallet rack (PHR). The ATL able us to continue meeting our cus- heide’s old warehousing organization system contains about 40,000 pro- tomers’ needs now and in the future. becomes inevitable.

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

The electronically controlled revolving-type high-bay rack system, brieﬂy referred to as the “high-ceiling rack”, is commissioned in 1970 and reﬂects state-of-the-art technology. It operates on a simple yet convincing principle. Products are no longer fetched from long shelves by a time-consuming process, but are moved to the removal station once a day. The available storage space is utilized to full capacity. All product movements to and from storage are computer-assisted. This system allows us to meet our customer’s needs until way into the ‘80s. By this time, increased expecta- tions on product availability and a growing product range call for the adoption of an even more efficient solution. Newly developed warehousing systems and the use of quicker, more cost-efficient shipping ... gives way to advanced computer control and warehousing technology 14

enhancement programmes attended events and seminars. Since our capa- 1987 - 1997 by our own sales force, but also by city at Marienheide is nearing exhaus- Meeting the challenges key staff of our worldwide distribution tion, we will soon transfer these train- partners. Booked to capacity on a per- ing activities to our international of the future manent basis, the centre also forms a subsidiaries.

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

PFERD-Rüggeberg B.V. is set up as an independent subsidiary at Breda (Netherlands)

PFERD-Vitoria (Spain) celebrates its 25th anniversary with a big gala event.

Files from far aﬁeld The production of PFERD ﬁles at Marien- hub of communication between heide is featured in the “Mouse Show”, a PFERD and our customers. Over 500 hugely popular children’s TV programme people per year come here to attend broadcast by the Cologne-based WDR station.

PFERD Sweden is founded in 1988. A shareholding in this company is later acquired by VSM. Today’s PFERD-VSM AB is headquartered at Järfälla near Stockholm.

PFERD tools in theory and practice PFERD Tools India is estab- A particularly ambitious project is started lished as a subsidiary company at in 1989 with the planning for the Nasik near Bombay. Our latest ﬁlemak- PFERD Continuous Training Centre. It Endusers are frequently among our semi- ing facility, it is formally commissioned provides a venue for training and skill nar attendees in 1990.

From punched cards to data volumes and an unrestricted Shipments are compiled, stock remov- SAP R/3 access to all data sets. This technology als are processed, and delivery notes heralds the rapid advance of electronic are printed. Data on out-of-stock items Computerization ad- data processing. are transferred to production EDP The first monitor screens, purchased systems as the basis for production vances at a brisk pace in the mid-70s, finally replace the orders, triggering the procurement of The first punched card machines are punched card as a data input device. raw materials and standard products installed in the early ‘60s. Operating From the screen and keyboard, oper- by Purchasing. Items supplied from the on a purely electromechanical princi- ators can access all master data, in- production line and outsourced ple, they are controlled via switch- cluding information on the customer, standard products are booked into boards. All customer data and master product items and stock levels, inventory, compared with backlog lists product data are acquired in punched prices, and suppliers. Increasingly on a daily basis, and then prepared for card form and stored for use in enor- powerful software facilitates the on- shipment. mous filing cabinets. screen entry of purchase orders which form the starting point of the In the late ‘80s, the subsidiaries and The next generation of machines is order processing chain. The actual branch offices are connected to the controlled no longer from a switch- “data processing” is performed at central Marienheide computer system board, but by programmes entered night, when the workshops and of- via data lines. This allows a direct ac- also via punched cards. Eventually, fices are deserted. The daily inflow of quisition of incoming purchase or- magnetic disc storage units are purchase orders is divided according ders, which can thus be fed into the added to allow the storage of larger to available and out-of-stock items. shipping cycle on the next day. Our 15

Superabrasives Quality as good as our In 1993, PFERD South Africa Galvanically bonded diamond and word - PFERD tools celebrates its 25th anniversary with a CBN tools are first added to our receive DIN EN ISO 9001 multitude of guests. PFERD product range in 1987. In early certification 1992, the production facility at Marien- CORRADI Rüggeberg is heide is upgraded with the addition of appointed exclusive distributor for a high-precision electrodepositing line. CORRADI precision files (Italy) in Ger- many and a number of other European At the Cologne Hardware Fair in 1992, countries. PFERD presents its new product cata- Our cooperation with UMV/Switzer- logue 205 covering files, grinding tools land is terminated after more than 25 and cut-off wheels based on diamond years. and CBN superabrasives. VSM stake brings flexible PFERD diamond cut-off wheels are, of course, laser-welded to meet all appli- abrasives into focus cable safety standards. First-rate raw In 1995, Rüggeberg acquires a 25% materials and high grade diamonds stake in the share capital of Vereinigte ensure a top quality product - high Schmirgel- und Maschinenfabriken technology made by PFERD. AG (VSM) of Hanover. The move becomes a milestone in the evolution of our fine grinding, polishing, and brush- Rüggeberg is DIN EN ISO 9001 certified ing tool product line (catalogue 204). In late August, Jan Rüggeberg becomes a voting member in VSM’s supervisory board. A worldwide distri- The unsurpassed quality of PFERD Environmental protection bution cooperation between PFERD products is the key to customer satis- and VSM is about to take shape. faction. This applies to all company at Rüggeberg activities, from production to customer A new exhaust air cleaning and PFERD Asia Pacific (Singapore) service. extraction system provides optimum is founded in 1995 in the heart of visibility and a “clean atmosphere” in Southeast Asia, now the world’s most Our successful DIN EN ISO 9001 certi- the Elastic products workshop. dynamic growth market. fication, awarded in 1994, attests to the effectiveness of our continuous But our “clean” approach does not quality assurance effort at all levels. stop there. An ultrafiltration (UF) The foundation of PFERD- system, supported by a waste water VSM SP.Z.O.O in Warsaw (Poland) In the meantime, our PFERD sub- treatment plant for our electrodeposit- in 1997 marks the start on an im- sidiaries in Spain and South Africa ing line, ensures that all effluents meet proved coverage of East European have likewise been certified to this latest emission standards. markets. high standard.

goal is to ensure that each customer faster, and in a more timely and cost- al application packages are arranged order coming in today is filled tomor- efficient manner. Customer and sup- around this entire body of operational row. Through the continuous expan- plier EDP systems are converging. data. Each department (distribution, sion of our shopfloor and administra- Ordering data, delivery dates, ship- production, financing, cost account- tive computer systems, this objective ping data and payment information ing, purchasing, maintenance, pay- is soon achieved. are exchanged via data lines. These roll, design, quality control, research Additional application packages such data are immediately fed into the and development) can thus access as cost and payroll accounting, en- partner’s computer system and enter the latest information. gineering design and production con- the processing cycle without having trol are added. The only problem lies to be transcribed by an operator. New In order not to “miss the train” of ad- in the fact that each application, applications based on the Internet vanced computer solutions, it is deci- whether old or new, represents an data highway allow direct access ded in 1995 to adopt the SAP R/3 isolated solution. Although data can from anywhere on the globe. This to- software package, a system de- be exchanged between individual tal transparency of company data veloped by hundreds of programmers programmes, there is no direct streams, both internally and external- over many years. To us, this means “through access” or direct processing ly, can no longer be achieved by in- the installation of new hardware, new capability. house programming. software, new networks, new data Why is this sophisticated computer bases, and new programming lan- technology no longer satisfactory to- New software must therefore be em- guages. The introduction of the day? The market demands that cus- ployed to meet these criteria. It is system is proceeding at full speed tomer requests must be met even based on a large data base. Individu- and will be completed by early 1998. 16

The PFERD Partner meeting - trust creates the right spirit

Crumbling prices, shrinking markets and predatory competition characterize the economic trend of the ‘90s. Our goal, defined jointly with our retail and distribution partners, is to concentrate forces via an enhanced cooperation and the pursuit of a joint marketing strategy. In 1996, a new domestic distribution structure is implemented. More than 120 PFERD Partner dealerships sign a contract to align their strategy with Rüggeberg. The first PFERD Partner meeting takes place in Marienheide. The cornerstone has been laid for a long-term successful partnership that will benefit both sides. The first PFERD Partner meeting opens up new perspectives for a successful cooperation

The second factory in Spain, at Araia, is commissioned 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 Works Council - collective bargaining law, such as sal- the office of works council chairman ary levels, sickness pay, leave of ab- at Marienheide and Hermeskeil: representing employee sence entitlements, vacation pay, social security, etc. In addition, the interests works council has a say in matters of Marienheide works factory regulations, occupational ac- 1950 - 1978 : Ernst Förster cident prevention, etc. The number of 1978 - 1990 : Walter Eulitz Under the Industrial Constitution Act representatives forming the works 1990 - today : Josef Funke of 1952, the company’s employees council depends on the size of the elect a body of colleagues intended workforce. The council members el- to represent their interests and rights ect their chairman from their midst for vis-à-vis the management (employer). a period of four years. The works Hermeskeil works These elections are held every four council is the “mouthpiece” for a two- 1975 - 1978 : Rudi Igel years subject to a closely deﬁned re- way communication process linking 1978 - 1984 : Anton Anell gime. Main issues include the monitor- staff and management. Since 1950, 1984 - 1994 : Alois Hein ing of compliance with aspects of the following colleagues have held 1994 - today : Werner Hornetz 17

ECOPLUS®: - The New Generation of Abrasive Cut-Off Wheels for Handheld Power Tools Product Receives National Award of scrap and thereby reintroduced into the value Management Act, thereby creating additional the Federal Ministry of Economics for chain. In view of this feature, ECOPLUS® cut- cost benefits for the user. ECOPLUS® abrasi- Outstanding Innovative Achievement off wheels already meet the requirements of ve cut-off wheels are suitable for multi-pur- the German Materials Recycling and Waste pose metal cutting applications and can be in the Crafts mounted on all standard commercial angle grinders powered by a pneumatic or electric August Rüggeberg GmbH & Co. of Marien- prime mover. PFERD starts its new gene- heide has presented an innovative solution in ration of abrasive cut-off wheels the field of abrasive cut-off wheels. The aim for freehand grinding with a motivating the company’s development effort diameter of 230 mm. was to launch a tool with significantly enhanced performance characteristics which would be fully recyclable after use. This goal was achieved through an all-new wheel design in combination with new formulas and rade Fair new abrasive material grades. The new ECOPLUS® abrasive cut-off wheel concen- trates the entire abrasive power of a conventional cut-off wheel in its useful, i.e., economically efficient outer diameter area, thereby achieving superior performance. The non-useful, i.e., inefficient interior wheel core has been replaced with a metal support disc (hub) which can be easily recycled as all-metal g Co. launches world novelty on Hanover T Domestic industry demonstrates performance potential on Hanover TradeHigh-Tech Fair - Hopes pegged to economic uptrend Rüggeber

Small Wheel in FocusIa. Hannover/Marienheide. of Trade TheShowconventional Attention cut-off wheels. At development, will also help to Rüggeberg tool company, whose the end of its service life, its steel „open doors“ for its remaining PFERD brand name enjoys hub can be fully recycled as me- product range. „Demand for the worldwide renown, has been a tal scrap. „Even our competitors new tool is so brisk that we have Maderegular presence in at the HanoverOberbergacknowledge that the new pro- been able to limit deliveries to a trade fair for decades. This year duct constitutes a revolutionary number of selected markets“, their booth in Hall 5 attracted accomplishment“, says com- Mr. Benna rejoices. The com- even more visitors than usual. pany spokesman Wolfgang pany had already attracted an The reason for this keen display Benna. The Ecoplus tool offers overwhelming customer and re- of public interest is called significant benefits to the user, tailer interest at the Cologne Ecoplus, a product which signali- since apart from its enhanced Hardware Fair. zes the beginning of a new era in performance it also reduces the 50 years’ history of abrasive machining costs. Moreover, the patented cut-off cut-off wheels for freehand use. wheel has received the German The new tool now launched of- Rüggeberg believes that the new Ministry of Economics’ national fers between 15 and 30% more Ecoplus cut-off wheel, which is award for outstanding innovative performance and efficiency than the result of more than 2,5 years’ achievement in the crafts A major trade fair attraction: The benefits of the new abrasive cut-off wheel, which has already brought Rüggeberg a National Award from the Ministry of Economics, were continuously demonstrated on the Hannover Trade Fair.

PFERD tool manual in Over the last few decades, the Manual pose, a load filling 18 large 7.5-tonne has developed in an important refer- trucks. Altogether, some 38 million of changing guises ence source for the professional user pages will have been printed on over of surface machining and cutting tools. 19 million sheets of paper to present It is also our company’s “calling card”. the scope and advantages of the The revised 1995 edition comprises a further expanded systematic range of 200/95 about 5,000 tools plus an impressive line-up of purpose-designed power tools. Detailed technical information and valuable spare part recommenda- tions round out its contents. While the first editions of the PFERD Tool Manuals were still produced by the hot composition and letterpress printing method, all text and image processing is digital today. The book is printed cost-efficiently on high-speed offset machines. Its size has more than doubled over the years, with the latest edition comprising 256 pages. By the year 2000, when it will be su- perseded by its successor, the current edition will have been distributed in PFERD range. If one would separate Rotary movement in ever new varia- over 150,000 copies in more than 10 all pages from these catalogues and tions has been the front page theme languages. About 135 tonnes of paper place them side by side, they would of our Tool Manual since 1963 will have been expended for this pur- cover the area of 320 football fields. 18

100 years’ of PFERD The resulting predatory competition is lenge. As a premium manufacturer accompanied by a continuous decline with a century-old corporate culture, Outlook for the next in prices and margins. we will oppose this trend. We are So-called discounters from low-wage called upon to convey our dynamic century countries are ﬂooding the market with service concept and experience to the low-price products, displacing our own customer. There is no other way to On the eve of the next century, we are domestic low-price competitors from ensure continuous success in the confronted with a rapidly changing en- the “lower echelons”. In order to sur- competitive environment. vironment. The viability of Germany as vive, the latter now aim at penetrating an industrial location is being put to our traditional premium markets with The company will continue to focus on the test. And yet, as the debate on the additional services and attractive offers. its ﬁrst and foremost target group, i.e., permanent loss of domestic jobs is We cannot overlook the fact that that users with a high service and quality reaching its climax, practicable remedial our „classic“ distribution route, i.e., via awareness who choose a product on concepts are nowhere in sight. outlets catering to the manufacturing the basis of quality and performance This negative trend applies particularly industry and professional craftsmen, is with a view to solving specific to the metalworking industry, with its losing an increasing part of its business problems, and who expect us to live manufacturing cycles saddled by high to DIY markets and specialized up to the most demanding standards. labour costs. This industry is the main discount stores. Moreover, the direct user of handheld power tools and sales approach based on dealer Haven’t we known it all along? hence, our main market. brands is competing more and more We should not fool ourselves. The effectively with manufacturer brands As a premium manufacturer, we are achievable sales volume for our tools burdened with high brand manage- expected to supply products of unsur- in key European markets is either ment costs. passed quality and performance. stagnating or shrinking. We are determined to meet this chal- This imposes the need to distinguish

High-grade vocational With a staff complement of over 1,600, our quality-certified training company is a market leader in the toolmaking industry. Under the trade name PFERD we have been supplying quality tools for more than 100 years to a global market now spanning over reflects confidence in the 100 countries. We have vacancies for future Apprentices/Trainees Our company’s future depends on its competitiveness and innovative capa- to undergo Industrial mechanics vocational Machinery and systems technology bility. The skill potential of our work- training as force and thorough training of the new Machine tool mechanics Lathe and milling cutter systems generation form the basis for succes- Power electronics fitters sful corporate growth. Our two-tier Production operations technology training system is a key advantage in Skilled industrial clerks the international competitive arena.

● Fully skilled employees are prere- Our state-of-the-art training workshops feature CNC machine tools (lathes, milling centres) as well as a wide range of pneu- quisite to the implementation of matic and hydraulic training equipment. simpler and more flexible opera- Our training in electrical engineering is based on computer and tions, translating into higher produc- PLC control technology. tivity. Please address your application to: ● A high degree of identification with August Rüggeberg GmbH & Co. • PFERD Tools Vocational Training Department the company’s goals, supported by Postfach 1280 • D-51704 Marienheide diligence and commitment, enables fully skilled staff to handle complex tasks on their own res- ● With semi-skilled labour, these ob- on modern concepts and newly devel- ponsibility within a team. jectives can only be accomplished oped vocational profiles, ensures the to a limited extent. Continuous skill continuity of our company and its ● Fully skilled staff combines a sound enhancement, even if regularly pur- jobs. theoretical and practical back- sued, cannot compensate for lack ground with important abilities, e.g., of training received at the school- Above-average examination results in to bear responsibility, work within a to-job transition stage. both technical and commercial fields team, and pursue a continuous im- confirm the validity of August provement of professional skills. Our in-house training schemes, based Rüggeberg’s vocational training effort. 19 ourselves from the competitor field not mers’ view, it is an recognized accom- presence in the form of continuous only in terms of product personality plishment which justifies a mark-up on production technology support. The (what does the customer experience sales prices. local presence of PFERD staff mem- with PFERD?), but also at the product bers capable of delivering such sup- environment level (what does the cus- Showing our commitment port is an indispensable element of tomer expect from us?). our success. We refuse to be transformed into just These two areas are our strengths, another service-providing site. Marien- Recalling the old virtues since they influence the customers heide remains one of our industrial positive value judgement on PFERD. manufacturing locations, reflecting our Each of us knows that “service” means conviction that software and hardware more than a salesman’s friendly face. We are therefore called upon to are ultimately indivisible. Experience Serving means doing one’s duty in the ● improve customer loyalty by step- in manufacturing technology and an employ of a master or customer, as the ping up our communication effort ongoing exchange of views with cus- source of income or gain. It means tomers and users are prerequisite to trading performance for profit. Without ● increase our performance by offer- the development of high-grade tools. the former, the latter cannot be had. ing specific solutions, i.e., by creat- The development of our ECOPLUS ing a customer perception of line on the drawing board alone would For 100 years we have known that the PFERD as a value-adding experi- have been inconceivable. Competent security of our jobs is ultimately deter- ence (as distinct from gimmicks customer service is integral to the suc- mined by the PFERD customer. All and empty verbiage). cess of any high-performance indus- PFERD marketing efforts must there- trial product. Custom solutions, tai- fore be based on the serious and open Naturally, such performance cannot lored to individual application needs, determination to satisfy the market’s be had free of charge. From our custo- cannot be developed without a local needs.

Success through teamwork

1897 – 1997 On the eve of the celebrations for our 100th anniversary, the organizing team and its crew of helpers present a happy, if somewhat exhausted face to the photographer. The day had been meticulously planned and prepared in countless meet- ings. Thousands of details had to be taken into account. Working with enthusiasm, diligence and gusto, the team braved a multitude of challenges and staged a memorable event.

Our heartfelt praise and gratitude to you and everybody who lent a hand. (The “100th Anniversary Organizing Team” comprised Heiko Alter, Sandra Bock, Günter Braun, Katja Düperthal, Nadine Feichter, Josef Funke, Anja Ginczek, team leader Sven Kuhnert, Petra Lückerath, Florian Pottrick and Martina Rademacher). 20

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

Having welcomed all employees and visions for the future that may guaran- guests, both from Germany and abroad, tee growth and prosperity in the years Jan Rüggeberg continues as follows: to come.

We spent many hours deliberating To outline the main success factors I how to celebrate this day in the most would actually have to embark on a agreeable manner for everybody in- detailed account of our company his- volved. After prolonged debate, it was tory, from which I will refrain for the finally resolved by the management, sake of brevity. I will only mention the “ring” and the works council that some key milestones, turning points we wanted this to be a “family and progress steps here, for early next celebration”, without customers and week you are all going to receive the suppliers, so that the families of our latest edition of our company newslet- current and former employees would ter, the “Jumping Horse”, which will in- have an opportunity to see the clude a detailed chronicle of our com- company and part of its workplaces in pany history, complete with all data operation. We wanted to deepen, or and many pictures. maybe even awaken, their under- standing and interest in our company, I have identified a total of 6 different on which we all depend, but also to success factors. The succession in demonstrate to them the many which I address them is not intended changes which have taken place in to imply a priority judgement, and I Marienheide and the extent of the Jan Rüggeberg receives special applause should like to point out that they are as he welcomes his father, “senior chair- industrial and technological progress man” Hans Rüggeberg occasionally hard enough to differen- achieved. It is nice that the new tiate due to their interdependency, exterior, complete with parking lots also with regard to cause and effect. and landscaping, was finished just in fully by the company, the income from time for the 100th anniversary. today’s sales will be donated to charity The very first factor and prerequisite by agreement with the works council. for success was the willingness to ac- So, our heartfelt thanks are due to all cept an entrepreneurial risk. This was those of our employees who, before In addition to the foregoing, the reflected in a number of facts, e.g., joining the festivities, were willing to management has decided to make don their overalls on this anniversary two rather substantial donations to the - that our forebears, at the start of day to allow us to visit a company “in two institutions who care for the the last century, decided to give up action”. well-being of our community’s senior the profession in which they had But we also have to thank all those citizens, namely, the Senior Citizens’ been trained, i.e., farming, and be- who contributed many hours of hard Forum and the Old Folks’ Home on gan to manufacture forged tools, work to the preparation, planning and Leppestrasse, respectively. including files - one of the oldest implementation of this special day, i.e., tools known to mankind and, at the the 100th Anniversary Organizing One hundred years of AUGUST time, the only chip-removing Team, our advertising department, the RÜGGEBERG in Marienheide are metalworking instrument; works council, and the company choir certainly a worthy and suitable oc- who published its own CD for this casion for a moment’s reflection. After - that they were willing to leave their occasion, but also to the numerous all, turning 100 is not by itself an ancestral seat and estate at Effey in outside helpers such as the fire achievement for a company, indeed the Ennepetal valley to settle as brigade, the Red Cross, the craftsmen, quite the opposite might be true. Protestants at a new and entirely and all others involved. We do appre- alien place, the strictly Catholic ciate your achievement! But completing 100 years of success, community of Marienheide, be- now that is something unusual, parti- cause this region had a prominent It was teamwork which made this fest- cularly if you compare us with our cottage industry of skilled file- ivity possible, and now it’s up to you to competitors of equally old standing, or makers, and because Marienheide enjoy a happy “family celebration”. I even the majority of those competitors as a railway junction offered ideal hope you are all in an excellent mood. who are much younger. communication links with the industrial areas of Cologne, The fact that food and drink are not What I shall try to do, therefore, is to Wuppertal, Hagen and Dortmund; entirely free of charge today is due to a briefly analyze the factors which have very good reason. We all know that, at been responsible for this many years - that they continued to invest sub- PFERD, quality has a price, so while of success, to see if they can form the stantial private funds into the devel- the costs of this festivity are covered basis for strategies, consequences or opment and production of ever 21

new products such as precision marketing idea, and its consistent - by the erection of the Training Cen- files, rotary milling cutters, polis- long-term implementation. This is evi- tre in the late ‘80s, in recognition of hing tools, grinding and cut-off denced by the fact that the further training of wheels, diamond tools, ECOPLUS our own sales support staff and products, etc., without any guarantee - the very early focus on files as a those of our domestic and interna- of recovering their investment chip-cutting instrument, which ga- tional distribution partners is the ve rise to a continuously growing, key to the company’s future market - that they continued later to esta- systematic range of surface finish- position. blish ever new manufacturing sites, ing and cutting tools; e.g., at Konitz in West Prussia, at As the third success factor I would like Hermeskeil, in the USA and in - the development of the associated to mention our innovation capability, Spain, in South Africa, and in India. optimum power tools in close and which is the basis of progress in pro- successful cooperation with the duct development and manufacturing The decision to shift production SUHNER Co. of Switzerland, pur- technology alike. It is this synthesis, abroad, i.e., to Spain, was prompted sued over many decades; the pursuit of radically new primarily by the determination to approaches, which has often won us access an interesting market made - the restructuring of our distribution several decades’s worth of competiti- inaccessible by high customs organization in the ‘50s, which ve advantage in many areas. barriers. Similar considerations brought the changeover from field subsequently induced us to set up a representatives to our own salaried Examples include the following, manufacturing base in South Africa. sales force and the creation of although the list is naturally not ex- But it didn’t take long until PFERD decentralized sales regions with haustive: Vitoria evolved into a supplier of their own warehouses; high-grade tools and hence, into an - the development of the Eilfix file- indispensable pillar of our domestic - the systematic and application-ori- making machines at the start of and international competitiveness. ented segmentation of markets, this century, followed by multiple- Shifting our production of ma- supported by a corresponding type filemaking units, automatic chinist’s files to India in the early marketing effort, which brings to- production machines for car body ‘90s was a particularly difficult gether hardware and software in an files, automatic production machi- decision, although one that be- almost ideal manner while turning nes for carbide milling cutters came inevitable when all attempts our re-selling customers into (series I through IV), adhesive at setting up an economically genuine distribution partners; application and hot-pressing efficient production in Germany, technology for our Elastic wheels, even based on the latest technology, - the uncompromising implementa- mat reinforcement and, finally, the failed to bring success. tion of our high quality standards ECOPLUS system; as a prerequisite for a consistently - and that we opted for a close co- successful brand product market- and operation with the Hanover-based ing; VSM Co., establishing joint distri- -product innovation, pursued parti- bution companies in foreign mar- and finally; ally in parallel with new manufac- kets and ultimately acquiring a substantial stake in this company to secure our strategic distribution goals.

In addition, this joint effort is expected to generate new impetus at the product development stage as well, and will therefore be intensiﬁed.

and ﬁnally,

- that we invested capital on a hitherto unknown scale in organi- zational equipment such as the high-ceiling rack, the new logistics centre, and the new SAP R/3 computer system to improve our customer service and achieve lasting improvements in cost-efficiency.

The second success factor was the The audience in the full tent listens attentively as Jan Rüggeberg takes them through his pursuit of a vision, i.e., a product and analysis of success factors for growth and prosperity 22

turing techniques, such as the development of spiral-cut chain saw files, half-round machinist’s files, patented milled rotary cutters (the decisive step towards an expanded range of many modern surface-finishing tools), industrial- grade flexible shaft machines, convex-tooth car body files, surface grinders, POLIFAN tools and finally, last year’s launch of the ECOPLUS line, which has created radically new growth prospects particularly for our parent factory site.

This last product allowed us to achieve an advanced synthesis of economy and ecology, and we August Rüggeberg’s company choir contributes songs from its latest CD to the acknowledge the achievement of festivities our ECOPLUS product team. ownership structure, but also in for which I may also quote some ex- The fourth success factor is doubtless terms of the emotional atmosphere amples, i.e., our company’s healthy financial struc- which forms the basis of our social ture. It alone provided the independ- fabric. This fact is reflected in our - the good luck of all of us here who ence and necessary conditions for concern for our employees during have retained their good health and such a long period of successful en- and after their active service, our physical ability to this day; trepreneurial activity. It requires profits training and further education to be generated, first of all, before schemes, our care for direct human - the good luck that the Marienheide these can be channeled back into the relations at all levels, our social company and its owners emerged company. security fund, and our assistance of out of the war unharmed - a war senior citizens within the community. which, after all, cost the lives of 49 Care must also be taken to ensure RÜGGEBERG employees which that even critical phases remain finan- - Another aspect of this approach is we also commemorate today; cially manageable. Apart from for- the maintenance of a good rela- ward-looking planning, this requires a tionship with the works council, - the good luck that Robert Rügge- willingness to renounce the pursuit of which we respect and acknowl- berg had to see a dentist one day, many a growth opportunity, as well as edge as a genuine partner. which gave him the decisive idea a timely settlement of the succession for the subsequently patented ro- issue which deliberately puts the out- - And finally, there is our support of tary cutter with milled teeth; going heirs at a disadvantage, in joint leisure activities, such as the keeping with our fathers’ and grand- work of the company choir and di- - the good luck that my cousin and fathers’ conviction that each generation verse sports clubs. myself had fathers to whom we not is merely one link in a chain. only owe most of the company’s All these efforts have always been, success, but to whom we may also This was also the rationale behind last and continue to be, integral elements be grateful for their wisdom to re- year’s conversion of the company’s le- of our conviction that working for tire from the management of the gal form and of the creation of a new RÜGGEBERG should not only be a company’s at the age of 70, having memorandum of association, which means to earn a livelihood and appro- thoroughly trained their succes- was prompted by the determination to priate social security, but should also sors, although they were still fit and ensure a smooth generation change generate a measure of satisfaction vigorous at the time, for which we and to preserve our company’s struc- and joy of life. may express our heartfelt thanks to ture as a family-owned enterprise. them on this occasion; All in all, the RÜGGEBERG group cur- The fifth (and probably most impor- rently employs a workforce of over - the good luck that we found so tant) success factor is and remains the 1,600 men and women, including 750 many capable and highly moti- commitment of our workforce, which based in Germany. vated employees; is reflected in the culture and atmosphere of human relations within our A total of 284 jubilarians in Germany, and last but not least, company. To illustrate the high priority including 155 still active and on the which we attribute to this aspect, I payroll, are an impressive testimony to - the good luck that Marienheide has may mention the following: our employee’s loyalty. remained a healthy and pleasant place to live and work in, which also -Rüggeberg is a family-owned en- As the sixth success factor I would like reflects the achievement of the com- terprise, not only in terms of to mention the necessary dose of luck, munity leaders present here today. 23

On the whole, we have been lucky The text contains all of the above suc- - our key research and development many times over, for which we cess factors, albeit with some modifi- site should thank God and our fate. cations as to sequence, priority and structure, which are or should be our However, the above can only be ac- In the course of this brief analysis I guide in shaping our company’s pre- complished if we focus on our have thus defined six success fac- sent and future. strength, and if we consistently obser- tors, i.e., ve the proven principles which have The unfortunate question of Marien- guided us over the last 100 years, - the willingness to face entrepre- heide’s continuation as a production adapting them to each new situation neurial risks; site, which has once again crept into the that may arise. debate today, may be dispensed with in - the development and pursuit of a my view if we stick by the five success Despite the company’s difficult econo- vision; factors which are within our control. The mic situation today, of which you are sixth, i.e., luck, happens to be and all aware, I may say that RÜGGEBERG - the ability to innovate; remain a question of luck. May we re- as a whole is healthy, that we are main blessed with such good luck, too. operating without exterior funds or - our company’s healthy financial influence, that we see enormous structure; Securing Marienheide’s future as a pro- development opportunities in many duction site is a prime objective of our product sectors and markets, that we - the motivation of the workforce of a company. However, achieving this goal have a highly motivated and well family-owned enterprise, and will require additional investment in our trained team, and therefore, I think, key markets to enable us to remain every reason to engage in a good and - the necessary dose of good luck. close to the customer and deliver an proper celebration today. optimum level of customer service. If you ask me whether these factors In closing, I may convey my heartfelt are still of relevance, especially in view Regardless of all global strategies and thanks for their commitment and co- of the future, I would answer this investments in other markets, Marien- operation to all those, in Germany and question unreservedly in the affirmative. heide will remain, for all the foresee- abroad, whether present or absent to- able future, day, who have helped the horse to gal- About two years ago, the manage- lop and jump so successfully for so ment and the “ring” have extensively - the site of our central administra- long. discussed, stated, and published the tive headquarters; vision and corporate goals of the RÜGGEBERG group of companies. - our key site for state-of-the-art ma- You are all familiar with the result. nufacturing;

Ceremonial speech by Josef Funke, Works Council Chairman

Our company celebrates its 100th an- Such a closely interwoven relationship niversary today. I call it “our company” over an entire century harbours oppor- because the workings of this enter- tunities and risks at the same time. prise are so closely interwoven with the life of Marienheide and its in- The opportunity for the company con- habitants. Many of our colleagues sists in the availability of an often well- have spent their entire working life trained, local manpower base. here and will probably continue doing The opportunity for the local labour so until retirement. force consists in the availability of From its modest beginnings to its cur- long-term employment right near their rent worldwide status, this company homes. has played a very special role for the labour force of our entire region. The risks attached to a family-owned enterprise, even a large one, lie natur- And much like its management has ally in the ups and downs of the eco- been passed on within the family from nomic cycle and the increasingly one generation to the next, it has be- tough competition now prevailing in come an accepted tradition, in many the marketplace. local employees families, that the grandfathers, fathers and children This close involvement of the com- Joseph Funke pointed out that working at earned their livelihood here - some- pany with Marienheide, its environ- Rüggeberg also has a long tradition in times successively, sometimes even ment and its population, grown over many employees’ families working side by side. 100 years, imposes an additional 24 responsibility on the management for the security of our jobs and for the Hard work rewarded by good livelihoods of the families depending on them. luck: Marvellous weather on Speaking for this company’s employees, I may conﬁrm today as chairman the day of the big celebration of the works council that the management has at all times been aware of, and lived up to this responsibility.

Certainly, the reasons for a number of decisions were not always easy to grasp, and the consequences were sometimes painful for many of us. But a way has been found to adapt the company to the inevitable changes, to preserve much of its competitiveness and hence, our jobs, and to distribute the resulting burdens evenly in these difficult times on as many shoulders as possible - not only those of the employees.

If you can live with the conviction, as the staff of this company does, that you will not be forgotten in good times, you will certainly not shun an extra effort in less fortunate periods.

This attitude has a tradition in our company. Our 284 jubilarians, including 155 still actively employed, can testify to the truth of this statement.

For us regular Rüggebergers, this workplace is not just any other job. We have always felt a particular responsibility for our work and for the quality of Splendid sunshine on this late summer day attracts an incessant ﬂow of visitors “our” PFERD tools. This has always been true and will remain so, even in the context of the development of new, modern forms of cooperation.

Despite these difficult times and the tough competition around us, despite all the debate revolving around Ger- many’s value as an industrial manufacturing location, we have every reason to look into the future with optimism and to wish our company success for the next 100 years.

We, the employees, will do everything within our powers to make this success come true.

Numerous helpers meet arriving guests in Relaxed employees enjoy the festivity good spirits together with the “rest of the family” 25

Works visits draw large crowds Many visitors used the occasion to get a rare “backstage view” of the workings of the company

From the ECOPLUS production plant, the origin of a world ... and the computer-controlled blending system on the novelty product ... Elastic 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 Training The so-called “time tunnel” brings back the past in pictures, Centre... documents and many a “vintage” rarity. 26

Festivity highlights

The “Altstadtramblers” dixieland jazz group from Düsseldorf Volker and Gerd open the almost two hour entertainment in the sweeps the audience along with spirited oldtime music marquee

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). 27

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 And plenty of physical comforts, too

1,800 grilled sausages and 1,200 barbecue steaks, 250 litres of Delicious indeed: Our heartfelt thanks are due to Helga Will- pea soup and 250 kg of potato salad were handed out by diligent mund and all hands, as well as to the many sponsors who had helpers. dedicated cakes

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1997 1997 1997 1997 thank F. Pottrick, J. Schultz-Siemens, our photographer Klaus Stange, and many others, for their help with Pottrick, J. Schultz-Siemens, our photographer Klaus Stange, and many others, thank F. Editors: E. Schorre, U. Schnauder, M. Maßmann, M. Radermacher, R. Piter, B. Federbusch, B. Hüttenmeister, R. Suhrheinrich, A. Wiegand, A. Zimmer We this anniversary edition. Wiehl Print: Gronenberg, 1997 1997 1997 1997 1997 1997 1997 1997 1997 1997 1997 1997 1997 1997

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