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Sichelschmidt Material Handling Solutions GmbH - The Interview

Purpose-built explosion-proof forklifts put safety first

Handling particular items and materials in specific working environments requires fork lift trucks to incorporate appropriate safety measures, and explosion proofing is often an essential precaution. In many instances the preferred solution is to use purpose-built explosion-proof trucks, rather than convert standard machines for the purpose. The world's leading supplier of explosion-proof electric forklifts is the German based company Sichelschmidt, which was the original pioneer of this technology and has been designing and building such machines since 1960. Ralf Sichelschmidt, CEO of Sichelschmidt material handling solutions, spoke to Warehouse & Logistics News.

Warehouse & Logistics News - First of all, Ralf, to set the scene, please can you define what constitutes an "explosion-proof" forklift truck?
A flameproof forklift is a machine designated for and approved by certification for work in a declared hazardous area.

WLN - Where are these hazardous areas?
Typically, they cover a wide range of manufacturing and/or storage situations, from aerosols to whisky, including paints, printing inks, pharmaceuticals, petrochemicals, essences and flavours.

WLN - In what circumstances would it be better to use a purpose-built, explosion-proof machine, rather than adapting standard machines?
Clearly, if the equipment is available and cost-effective, it is usually perceived as far better to select purpose-built. Who would buy a Û30,000 saloon car then pay Û40,000 to convert it to an estate? Not many of us.

WLN - When was the Sichelschmidt business founded?
It was founded by my grandfather in 1914, in Wetter, in the Ruhr region of Germany. I am the third generation of Sichelschmidts heading the family-owned business.

WLN - I understand that Sichelschmidt forklifts are manufactured to accord to various strict international guidelines and directives, and designated for use in specific "Zones" where there are defined risks of explosion. Please can you explain these guidelines and the different Zones?
I can, but rather than fill your page with rules and regulations, I feel it better to steer potential clients to our technical engineers who will, without obligation, guide companies and individuals through the complexities of the regulations and help them fulfil their legal obligations.

WLN - What different types and handling capacities of explosion-proof forklift trucks do you supply?
We design and build flameproof battery electric machines to the end user client's exact requirements. They include rider counterbalance, 3 and 4 wheel and rider reach trucks, and a comprehensive range of pedestrian pallet and masted machines, all fully compliant with the regulations and CE-marked accordingly. Capacities vary from one to four tonnes, but because we build to individual clients' exact needs we can be very accommodating.

WLN - Where do you make the machines you sell in the UK?
We have our 35,000 square metre factory in Wetter, which has been in existence for 93 years. In recent years our drive for continued improvement in quality and efficiency has led us to expand and upgrade our manufacturing factory in Vienna, Austria. Substantial investment there has assisted our efforts in absorbing suppliers' increased costs, and we now manufacture the entire range of pedestrian operated machines in Vienna.

WLN - Are you planning to launch any new trucks this year?
We will be launching our new 3 tonne and 4 tonne Zone 1 (2G) pedestrian pallet trucks in November, just in time for the Christmas rush. We will follow that with some Zone 2 (3G) versions of the machines.

WLN - Your trucks' AC motors feature ASM technology - can you tell us what this is and explain its benefits?
ASM is Asynchronous Motor, which is actually A.C. Motor in English. The benefits for normal unprotected forklifts are very useful, and with fully flameproof forklifts they are quite remarkable: for example, the whole range of Sichelschmidt ASM flameproof forklifts does not need any motor servicing. Other aspects such as contactor-free Electrical Systems, sealed for life and oil immersed brakes all contribute towards reduced operating costs and increased "up time," whilst improved battery power utilisation coupled with the fully programmable, improved performance and almost silent running, result in a more efficient, more reliable, more cost effective machine.

WLN - Who heads your UK sales operation?
Chris Andrew is our Business Development Manager, based in Bolton, Lancashire.

WLN - How many explosion-proof forklift trucks do you sell in the UK per year? How big is the United Kingdom as a market for explosion-proof forklift trucks?
Easy answers in each case - not enough! Our understanding is that the UK flameproof truck market is 60 percent diesel and 40 percent electric, totalling around 400 machines per annum. We expect to win around 15% of the flameproof battery electric truck business, and are now better focused to expand upon this.

WLN - Is the overall UK market growing, and what's driving it?
Yes, the market has grown due to legislation, but by contrast is now being disrupted by the closure of factories as businesses are purchased and unfortunately eventually closed once the order book and client base have been relocated to parent companies outside the U.K.

WLN - Which UK industrial sectors are your biggest market opportunities? Can you name any UK customers? Do you publish case studies about how they use these machines?
The "sleeping giant" in terms of growth sectors is probably the chemical manufacturing industry. In 2004 and 2005 we ran a whole series of editorials featuring customers in U.K. industry, and the applications for which they used our trucks. The companies included Fragrance Chemicals Cussins, W&J Leigh Paints, Jotun Paints and Weilburger-Shramm.

WLN - How do you sell your machines in the UK - direct to customers, or through distributors? Do you sell trucks outright, or do you lease them or both?
Whatever the client requires - we can accommodate most scenarios.

WLN - How can people get to see a Sichelschmidt machine in action?
Our sales people are always more than willing to arrange site visits to existing users.

WLN - In your experience does the extra safety from using explosion-proof forklift trucks qualify UK companies for cheaper insurance cover, or for particular Health and Safety accreditations?
It doesn't usually do so directly, but by working safely and providing appropriate equipment users will demonstrate a duty of care that will assist in everyone's objective to reduce accidents, injury and loss, and therefore enable them to negotiate a better "no claims discount" with their insurer.

WLN - This interview forms part of our Guide to the FLTA Safety Conference. From your observations are end users in the UK getting better at using forklift trucks safely?
Both the FLTA and BITA have worked hard to educate the industry and drive down the statistics. The U.K. should be proud of their forklift truck safety standards, and continue to strive for further improvement.

WLN - In your experience what proportion of UK companies use forklifts safely, and understand the risks of explosions?
To be fair it is seldom the company that is lacking. It is more likely to be an individual person's neglect or oversight that results in an incident that had perhaps been foreseen, in a risk assessment for instance, and therefore should not have occurred.

WLN - What can be done to train forklift operators to work more safely? Do you provide operator training?
Within our own organisation we have procedures that identify training needs, and implement training as appropriate. We advocate the procedure of driver skills reviews and offer driver training to the industry, direct from Sichelschmidt or from our network of dealers and distributors.

WLN - What proportion of your sales are outside Germany? Which other countries are your biggest export markets? Do you sell direct in these countries, or through partners?
Historically, the vast majority of our output was for use within Germany, with a small percentage exported. In the last 6-7 years, we have specifically targeted exports to achieve growth and compensate for the downturn within our domestic market. We have sold machines into almost every developed nation around the world, sometimes direct to the user, but our preferred route is via dealers. We have an excellent dealer network in many countries, including Austria, Canada, Denmark, Ireland, Netherlands, Norway, U.K. and the USA.

WLN - How do you handle service and repairs?
Again, we work through dealers, a major reason why they are so important to our business. After-market routine servicing and support is essential for long-term trouble-free cost-effective operation. Should problems occur they need to be swiftly resolved. For Germany and Austria we provide service and sales support direct through our own Sichelschmidt regional service depots. We also have service support provided in almost every export country by the importing dealer.

WLN - Your Company designed and built its first explosion-proof machines in 1960. What was the impetus for making these?
Having established a credible reputation within, in particular, the German chemical industry for non-flameproof trucks, we were approached by Bayer in the late 1950's to help them resolve certain issues relating to the possibilities of introducing powered lifting equipment into production facilities where flammables and dust could be present. This led to the in-depth study of flammables and forklifts in the workplace. Having identified the potential causes, we then set out to resolve the issues. This led to the design and manufacture of our first purpose-built flameproof forklift truck. From little acorns - we have built literally thousands of flameproof trucks since then, and indeed even today continue to supply machines to Bayer.

WLN - What proportion of your current turnover today comes from explosion-proof forklifts? What are your other business areas?
In terms of manufacturing figures some 50-60% of the business is flameproof forklifts, the balance being non-flameproof, specialist forklifts. These include pedestrian reach trucks, cold store specialist machines, rider reach trucks with 18-inch CSE tyres and four-way machines for long load work.

WLN - When did you join the company?
In 1983, with my father as M.D. of Sichelschmidt and my older brother firmly established in the business, I went off to Switzerland to finish my High School years. Then in 1986 I came to England for further studies and undertook two back-to- back degrees in five years. I also met my future bride. As a qualified engineer and qualified business manager I was then well placed to return to Wetter. I became Managing Director in September 1999 and assumed my present role.

WLN - You exhibited at this year's IMHX. How did that go?
It was good but as always difficult, almost impossible, to measure the results. We have already booked our stand for 2010, which indicates again our confidence in U.K. industry generally and the forklift truck marketplace.

WLN - For people thinking of buying your trucks, how does the purchase price compare with conventional forklifts of the same capacity?
Direct comparisons are difficult to generalise. What can be said is that we must provide value for money. We live in a very competitive market place and must always be mindful of the impact of price increases. Innovation continues to drive efficiencies within our factories.

WLN - How do your machines "fit into" truck fleets with multiple types of forklift truck?
What is not often realised is that certain other forklift OEMs will fill a gap in their product range with equipment manufactured and supplied by Sichelschmidt. We provide the machines in the colour of choice with labels, stickers, data plates and so on either bearing our name and logo or will accept another OEM's supply of these items and affix them in agreed locations.
The other point is that we supply into an industry that is quite mature and reasonable, and readily accepts that it is essential to provide equipment that is correct for the application and "fit for purpose."

WLN - What batteries do they run on?
For our range of non-flameproof machines the battery selection is often down to the purchaser. We can, will and do supply all makes of battery, which are normally expected to complete an average working day before recharging. For multi-shift usage we can supply all the equipment and facilities for battery changing. For certified flameproof machines, a certified battery must be specified. The two household names in the U.K., Hawker and C.M.P., are also well known and respected throughout Europe and beyond and as both companies supply excellent, fully certified batteries, we supply and fit both makes depending upon the wishes of the end user or supplying dealer.

WLN - What's the waiting time for a new machine?
Sichelschmidt machines are produced individually to the client's specification. We work closely with dealers and end users to fully identify their requirements, and tailor our production and completion to meet their needs. Generally we anticipate around 12 weeks from order to completion, although that varies with the specification, and "special build" machines usually take longer.

WLN - What's the working lifetime of one of your machines?
Like a good wine, if kept properly they will last many years. We have machines still working around the world that are 20 or even 30 years old.

WLN - What external factors and trends do you see affecting demand for your machines in the UK?
It ultimately depends on the development of global trade and the emerging industrial nations.

WLN - Finally, what are your plans for Sichelschmidt's development in the UK, looking ahead?
Our five-year plan's objective is to continue to improve what we do and strive to exceed our clients' expectations. We have new machines in development, and will also be reengineering certain other machines. We will be expanding our presence within the U.K., France, Spain, USA and the Far East. We know we need to further improve certain parts of our business, and measures are in place to drive these changes. We have radically restructured the company over the past five years, and our development is by no means completed yet. There are exciting times ahead.
Contact Information
For further information about this company's activities in the warehouse and logistics industry please contact:

Sichelschmidt
UK Tel: 01204 799 331
Mobile: 07720297043
www.sichelschmidt.co.uk
German Tel: 0049 2335 63090