Company Report: STEMA Engineering
Masters of steel Operating as part of the STEMA/PEDAX group, created in 1997, STEMA Engineering A/S is widely recognised as a leader in the steel industry, extending its pioneering commitment from its headquarters in Denmark

Production Hall at STEMA Engineering

Terminal 5 Project - London Heathrow Airport

Polymaster for polygonal shapes

When Denmark-based Stema Engineering A/S, established in 1965, acquired Peddinghaus of Bitburg, Germany, established in 1926, the “perfect match” was created. Through this strategic union, the company has become one of the few players in the market supplying total production systems for the reinforcing industry.

STEMA’s automatic stirrup bending machines straighten, bend and cut reinforcing steel in coils from ø 5 mm to ø -20 mm, while its unique Rollmaster produces welded mesh in carpets up to 40 mm in diameter. The shearing and bending systems in the lines Cadormatic, Combi-Line and Metax families from PEDAX, process steel bars up to 60 mm diameter, and the Mafix machines cut and bend conventional steel wire mesh. Machine types like Perfekt, Special and Simplex are recognised worldwide as the Rolls Royce of reinforcing steel equipment.

However, it is clear that STEMA/PEDAX is more than just a machine supplier. Its long history has built up invaluable experience and know-how, creating a firm that is often regarded as a partner with whom customers can develop their businesses. The company provides economic studies, for example, so that customers are aware of all costs and can also obtain precise calculations based on different machine options and layouts in production flow; an invaluable service given the current times.

The firm additionally provides intensive training of a customer’s operators, allowing its clients to make full use of the advantages associated with computer controlled machines. STEMA/PEDAX’s recent customers SmorgonOnesteel and Express Reinforcements, for example, have successfully expanded their production machinery and as a direct result, enjoy a strong position in their respective markets.

A GLOBAL BUSINESS
As well as working to diversify the firm’s capabilities and offerings, the acquisition back in 1997 has also improved presence. Today, STEMA/PEDAX is working on a global basis, as Klaus B Jensen, Managing Director at STEMA, attests: “In the first year of STEMA’s history we were only selling to our neighboring countries, Sweden, Norway and Germany, but today we are worldwide.”

Per Meincke, Sales Director at STEMA, agrees: “We are global, we are everywhere really. If there is a customer requirement from anywhere in the world we will be there to advise the customer and to provide strong after sales service.” “We have our own sales office in Dubai, Poland and India, and in the other countries we work through agents,” adds Jensen. “In additional we have our own service engineers located strategically around the world to be close to our customers, such as North and South America, Middle East, and Australia.”

Meincke continues, outlining what he attributes the success of the company to: “We are in a niche business; there are only four or five in the world that do what we do globally.”

“Also, our service level has always been very high compared to our competitors,” Jensen adds. Situated worldwide, the company’s main customers are construction companies, rebar shops and precast companies, who make up a big part of the business.

FINANCIAL CRISIS
The downturn has proved a challenge for almost all in the construction industry, but STEMA has faced its issues head on and found the positive: “From a sales point of view, the financial crisis has given us a big advantage, because most of our customers are really looking at return on investment and they have to be really sure that they get the best solutions with the strongest aftersales service. We try to be the company with the best solution, and to offer the customer the best possible pay-back on their investment, which is to do with logistics, flexibility and acting as a partner with our customers,” explains Meincke.

Furthermore, the firm’s wide spread presence has also proved invaluable through tough times, as Jensen details: “The financial crisis has hit us hard in some areas, such as Dubai and Eastern Europe, but there are also other areas where we are not affected.”

“It’s more important than ever to have a wide platform to stand on; you really have to be a global company today to pick up the business wherever it is. If you’re just focused on one or two areas then you really have a problem. So we see a lot of orders coming in now from areas that we really didn’t see a few years ago and if you’re not out there, you’re not getting them,” reiterates Meincke, who goes on to highlight India and Brazil as some of the growing markets in the coming years.

THE FUTURE
Looking to the future with a positive viewpoint, Jensen says: “We have a development department with 20 people who are working on new projects. So we have a lot of projects coming along to benefit our customers. One of the new machine types coming up next is a new Twinmaster 20 that can process 20 mm Ø reinforcing steel coil.” Meincke says the new technologies being offered to the market in 2010 by STEMA/PEDAX will be of great benefit to the firm by “opening up new areas and new markets”.

STEMA’s staff are also ready to develop alongside the firm’s new technologies: “There are ongoing initiatives throughout our business regarding staff development, differing depending on the department. In the technical department for instance, they are being continually updated on drawing programmes, construction methods, and they keep themselves updated as to the newest technologies within hydraulics or pneumatics,” explains Meincke.

By taking on the role of “partner” as opposed to merely a “supplier”, STEMA/PEDAX has been able to understand its customers’ businesses and is therefore in an ideal position to propose the best possible solutions. This whole process has led to the establishment of a strong and successful company with a reputation that is respected worldwide.

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