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January 25, 2017 01:00 AM

ContiTech reorganizes conveyor belts business

Shahrzad Pourriahi
European Rubber Journal
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    ContiTech
    ContiTech will focus its conveyor belts business on industrial applications business.

    HANOVER, Germany—ContiTech A.G. has reorganized its conveyor belts business to focus more on industrial applications business in the future, the German company has announced.

    In the new structure, which took place in October 2016, ContiTech has put together the industrial business segment and conveyor belts segment.

    "This is not a merger but an internal reorganization. We put together two segments (not business units) with similar customers," ContiTech spokesman Mario Toepfer said. "This is so we have one face to the customers. We're not doing this to economize on jobs, but to provide better support for our customers and, in turn, to ensure growth."

    With the new segment called 'industrial belt solutions', the company expects to offer greater product diversity for bulk material industries and provide new opportunities in the off-highway sector.

    "Our conveyor belt portfolio for industrial applications is growing steadily. Service and digitalization also offer the business further potential," explained Michael Hofmann of the ContiTech Conveyor Belt Group, who has taken on the role of segment head.

    Michael Hofmann

    Mergers into larger units among customers prompted ContiTech to change its way of thinking and working, he went on to say.

    With the new layout, ContiTech will focus primarily on the raw material processing industry, power and cement plants, steel manufacturers, port operators, and the recycling and wood industries.

    Offering a portfolio of products such as harvesters and work machines for the off-highway industry will be "a second key pillar" of the new segment, ContiTech added.

    In terms of product portfolio, intelligent systems for belt and temperature monitoring, as well as planned and preventative maintenance also are expected to provide additional opportunities for growth.

    "The segment is also looking to focus on assisting its customers at local level by offering products such as splice kits for belt joints, service materials, and accessories," Toepfer said.

    Sales, he said, will also be supported by new digital offerings such as customer portals and online shops.

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