GLOBAL VALUE DELIVERY AT BEST COST

Transcription

1 GLOBAL VALUE DELIVERY AT BEST COST

2 Agenda 1. What is our business model? 2. Why Findlay, OH? 3. Where can we improve?

3 A UNIQUE PROCESS - UNIQUE PRODUCTS A UNIQUE APPROACH Young animals and their special requirements for nutritious, digestible feed HAMLET PROTEIN promotes health and efficiency in animal nutrition through outstanding functional ingredients and service

4 The market place Bulk Contamination free production facility Bulk, totes and 50 lb bags Processor (crushing and refining) HAMLET PROTEIN Feed additives (Vitamins, minerals etc.) Feed specialities Premix producer Home mixer Feed mill Integrator (Enzymes, other specialities) 4

5 KEY FACTS Established in 1992 Approx. 120 million piglets fed worldwide Sales in over 50 countries Net revenue 80 mill. USD 85 employees worldwide Majority shareholder is Polaris Private Equity

6 HAMLET PROTEIN SALES NETWORK Represented in 50+ countries with 30 highly qualified local business partners Business partners Direct sales

7 Agenda 1. What is our business model? 2. Why Findlay, OH? 3. Where can we improve?

8 Location study Country level US, China, Brazil, DK/Europe Market size, Maturity of market, Expected growth rate, Regulation antibiotics, Business environment Political climate, Currency exposure, Competition, HP sales channel Experience HP team, HP market Penetration, market reaction Strategic fit, Sourcing soy Other sourcing Outbound logistics Patent, IP-risk Capex US

9 Location study State level phase 1 14 states in and around the Midwest Quality of soy (show stopper) Other raw materials Customer locations/volume Export infrastructure IL, IN, OH, PA, MD, NC and IA

10 Location study State level phase 2 IL, IN, OH, PA, MD, NC and IA Quality of soy and availability Other raw materials Customer locations/volume Export infrastructure Energy costs, Work force visits and hands on impressions. IN, OH

11 Location study State level phase 3 IN, OH Available locations, buildings/permits Conducted SWOT analysis on 3 suitable locations Hamlet Drive, Findlay, OH

12 Conclusion on the location study Close to the perfect fit High quality building with good layout in relation to lean production flow Good location for high quality soy meal high protein and low iron, flexible supplier Energy immediately available very competitive prices, multiple suppliers available Good sourcing area for qualified workforce Placed in Tall Timbers Industrial Park 17 production companies in the park. Good access to both highways and railroads (spurs not on property) Very short project time production start 7-8 months earlier 12

13 NAFTA Locations Pigs and Broilers 17. september 2013

14 Agenda 1. What is our business model? 2. Why Findlay, OH? 3. Where can we improve?

15 Several feasible routes???

16 Export from Findlay Ohio vs Horsens Denmark Denmark Routing Warehouse Horsens Terminal Hamburg, Germany Destination Tonnage Able to move up to 25 metric tons NET per container Max. payload is dependent on the recipient country High flexibility Loading 1 week prior to closing date FOC All standard equipment 17. september 2013

17 Export from Findlay Ohio vs Horsens Denmark USA Routing Warehouse Findlay, Ohio Rail Columbus, Ohio Port of Norfolk Destination Drayage from Findlay to Rail Columbus, Ohio using OW permits Direct service between Columbus and the Port of Norfolk, hence no risk of containers on public roads Tonnage Able to move MAX metric tons NET per container due to OW permits in the State of Ohio Low flexibility OW permit is specific to each truck and made for a special route, hence vulnerable if the truck breaks down Worst case shipments will be split giving extra costs for the customer in the recipient country 17. september 2013

18 Export from Findlay Ohio vs Horsens Denmark USA Routing can also be from the West Coast Warehouse Findlay, Ohio Rail Columbus, Ohio Rail Chicago, Illinois Port Long Beach, California Destination Challenges when shipping via the West Coast Pricing generally USD higher per container Changes to different tracks in Chicago thereby causing shipments to miss the vessels due to delays in the transfers Containers can arrive at a railway station outside Port of Long Beach giving problems with trucking on public roads due to heavy weight 17. september 2013

19 Export from Findlay Ohio vs Horsens Denmark Shipments to Mexico Moving 53 trailers to Laredo, Texas allowing us to spread the load over the entire trailer Not able to move heavy weight since we cannot obtain an OW. Experience difficulty in getting cost competitive rates for Guadalajara, Mexico 17. september 2013

20 Export from Findlay Ohio vs Horsens Denmark Denmark compared to USA Country Destination Incoterm Type Cost savings DK vs US in % per MT Australia Brisbane CIF 40 container 130 Brazil Santos CIF 40 container 50 China Shanghai CIF 40 container 182 Holland Rotterdam CIF 40 container 134 Japan Tokyo CIF 40 container 32 Malaysia Port Kelang CIF 40 container 153 Philippines Cebu CIF 40 container 65 Philippines Manila CIF 40 container 52 South Africa Durban CIF 40 container 281 Taiwan Kaohsiung CIF 40 container 149 Thailand Lat Krabang CIF 40 container 156 Vietnam Haiphong CIF 40 container 98 Vietnam HCMC CIF 40 container september 2013

21 Conclusion Excellent location Excellent plant Strong organization Open the door to all segments in NAFTA Increase earnings on shipments to Asia but (hopefully) room for improvement

22 HAMLET PROTEIN Søren Munch CEO For questions related to logistics, please contact: Supply Chain Coordinator Rikke Schmidt,