skip to Main Content

REICH operates subsidiaries in eight countries

Published on 29/03/2016 - category Company.

Bochum. The Bochum-based company has evolved from a repair shop for mining machinery into one of the world's leading coupling producers.

REICH operates subsidiaries in eight countries

The flowers are not for the boss. It is true that everybody at REICH celebrated the 70th anniversary of the company's foundation. But the potted flowers kept ready for distribution in the reception office are intended for the female employees. International Women's Day. And on occasions like these Herwarth Reich likes tosay it with flowers to his staff.

In fact, he and his son Christian Reich who has been managing the business operations of the coupling manufacturer side by side with
his father for two and a half years now, leave no doubt about who is playing an essential part in the success story of their company. 'In the past few decades we have impressively demonstrated that a Bochum-based company is able to successfully sustain its position in the world market. We owe this to the innovative strength of our engineers and to the commitment of all our employees.'

International significance

REICH has evolved from a repair shop for mining machinery into one of the world's leading coupling producers in the past seven decades. What started in the Ewaldstrasse in Ehrenfeld in 1946 and continued with the move to the Vierhausstrasse location in Grumme as the first major milestone in the history of the company has long since gained international significance. Admittedly, Germany is still the most important sales market. But in the record year of 2014, when particularly the fracking boom in the USA made the demand for REICH couplings soar to hitherto unattained heights, the share in international business was already as high as 60 per cent. Expanding its position in the global marketplace has become one of the vital goals of this family-owned company.

Low labour costs at the factory in Poland

Meanwhile, eight subsidiaries in the USA, in China, Korea, India, the Netherlands and Great Britain, and 18 sales partners are responsible for global sales. The company furthermore operates a wholly-owned factory in Bytom, Poland. In 2013, Reich, after having moved out of the initially rented halls, started production at its own modern factory. This brings two tangible advantages benefits over the German location, namely: the option of around-the-clock production and less labour costs.

This is also where so-called low-cost or good-enough products are being produced with even more intensity than before – for example for the Indian market as long as Reich is not yet in a position to offer local production which, needless to say, is only a question of time.

The low-cost and good-enough products for less demanding requirements are 'slimmed-down versions of our top-quality couplings', explains Christian Reich who has been pushing the international business activities forward since he joined the management. These low-cost products are targeted at customers who, unlike those in Western Europe, Russia or in the USA, attach a somewhat lesser degree of importance to an extremely long durability of the couplings.

Different requirements in Asia and Europe

The company headquarters are currently considering the question as to whether they should take another step towards internationalisation with Iran emerging as an exciting market. 'We are holding talks on this', says Herwarth Reich. Engagement, in his view, only makes sense when you are one of the first to enter the market. The number of the major global players in the coupling sector is relatively small, though. And they are located at home within a radius of 150 kilometers around Bochum.

Herne, for instance, is the headquarters of Vulkan, the world market leader for marine couplings. Reich, by contrast, occupies other market segments and is, for example, the German market leader for couplings in commercial vehicles and generator sets.

Exchange of information between representatives from all locations

The further the company network is expanded, the greater the importance that the senior boss attaches to an intensive mutual exchange of information. For the first time, representatives from all international sales subsidiaries came together for a weekend meeting which was held at the Vierhausstrasse location two weeks ago.

'The focus here was on an exchange of experience and on getting to know each other', explains the senior boss. This group is supposed to meet semi-annually from now on in order to exchange experience and to benefit from one another. The next regular meeting of all sales partners is also upcoming in the near future.

'This business has become and more exciting', says Herwarth Reich who took over the management after his father's death in 1977 and developed the family-owned company into what it is today.

One of the experiences: requirements in the global market are different. In Asia, the focus is on large quantities and favourable conditions whereas, in Europe and the USA, it is the European quality that matters. Reich is determined to make both possible. 'One of the goals for the next few years is to extend our product portfolio in order to be successful in low-cost countries', says Christian Reich. In this way, the company will undoubtedly be able to reach its 100th anniversary.

 

Link / Source: WAZ, 2016

Press release Download

Post details:

Published on: 29/03/2016
Category: Company

If you have any questions about this article, use our contact form or simply call: +49 (0)234 959160

More news

Well informed.
Video of REICH at the SMM Hamburg 2012

Hamburg. SMM is the leading international forum for the maritime industry. Every two years representatives of the…

read more...
TOK coupling and TOK coupling system

Engine manufacturers rely on the TOK coupling system from REICH The highly flexible TOK couplings from REICH…

read more...
Coupling system for methanol hybrid drive

First electric excursion vessel in Germany with methanol hybrid drive and Reich-Kupplungen coupling system. Germany’s first electrically…

read more...
Reich Kupplungen on-site around the globe

REICH founds further subsidiaries The German manufacturer of highly flexible couplings invests in new subsidiaries in India…

read more...
The TOK 176.1 Hybrid Boat

The hybrid drive for industry and boats is a modern answer to one of today ‘s ecological…

read more...
Stiff and yet flexible!

The new RCT coupling from REICH REICH has expanded its product portfolio withthe addition of the RCT…

read more...
New Internet Appearance of REICH

It is clearly arranged, modern and technically advanced. The talk is of the new homepage from REICH.…

read more...
REICH-Kupplungen supplies couplings with fire protection certified elastomers to the railway industry

As a result of the further development of its in-house elastomers, Dipl.-Ing. Herwarth Reich GmbH in Bochum…

read more...
Seawork International: Ringflex exhibted

Ringflex sales partner of Reich Kupplungen exhibted at the Seawork fair from 10-12 June 2014 in Southampton…

read more...
New Reich subsidiary in UK

Foundation of subsidiary in United Kingdom Driven by the successful foundations of subsidiaries – the most recent…

read more...
New ‘Y’ Elastomer Increases the Service Life of the Proven Arcusaflex Coupling by 7-Times

Successful Initial Use in a Combined Heat and Power Plant: Highly Stress Resistant 'Y' Rubber Compound from…

read more...
REICH-Kupplungen capable of ensuring continued full production

REICH, as a global company with long tradition, is able to continue full production at the Bochum…

read more...
Not yet found what you are looking for?
REICH ARCUSAFLEX®
Back To Top