Hoppe Uk | The Company Profile

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The Company Profile of the HOPPE Group

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The Company Profile of the HOPPE Group

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Sixteenth century door handle,Town Hall “Römer” in Frankfurt/Main

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Twenty-first century„Monte Carlo“ door handle by HOPPE

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People

Development of number of employees and turnoverin the HOPPE Group 1985 – 2005

employees sales turnover

1985 = 1001985 = 1001985 = 1001985 = 1001985 = 100

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Employees (Ø 2005)

HOPPE Holding AG, Müstair 10

HOPPE AG, Stadtallendorf 1404HOPPE AG, St. Martin 988HOPPE s.r.o., Chomutov 263HOPPE AG, Müstair 91HOPPE (UK) Ltd., Wolverhampton 76HOPPE North America, Inc., Fort Atkinson 145

HOPPE Group 2.977

14,5% sales and marketing

Personnel Structure

32% women

68% men

2,9% apprentices

5,8% production of specialmachinery

2,7% research, developmentand design

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The Total Beneficial Advantage (“TBA”) Increased quality of life in the

The basic thought behind working at HOPPE:Within the framework of the company beliefs and aims, jobs at HOPPEare self-made adventure playgrounds for mature adults.

Social Matters

Conditionsof Work

Income

The Fair Relation between Performance and Benefit in Return

Social Matters

High JobSecurity

CompanyBeliefs/

AimsPersonnel

Policy

Information

Advancementthrough

Challenge

ApprenticeshipTraining

Income

Conditionsof Work

DirectContact

with Staff

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dvantage (“TBA”) for HOPPE employeessed quality of life in the workplace!

Even with what you would normally expect, HOPPEoffers more:

You’ll work in a safe and ergonomically-designed environment withstate-of-the-art equipment. Flexible working hours give you the opportunityto organize your professional and free time, for example by enabling youto balance your family and job commitments more easily.

In addition to your basic pay, your income at HOPPE includes specialpayments and performance benefits.

You‘ll benefit from our social provisions. The company will help you, promptlyand without fuss, in cases of need as well as in less urgent matters.

fit in Return

While the company beliefs and aims are the guidelines of your activity, you aregiven the freedom and duty to perform responsibly within this wide-rangingframework.

The personnel policy forms the basis for our everyday dealings with eachother. In working at HOPPE you can and should be able to develop in apositive way as a complete human being.

Direct leadership, short communication paths and open doors play key roles.

Information is the raw material for your decision-making. Transparency,and the ensuing security, as far as possible, are thereby assured.

You can expect to progress both professionally and personally in yourdaily tasks as well as through our in-house training and external courses.Through your performance, you will have the opportunity for promotionwithin the company.

Apprentices are the specialists of tomorrow. We ensure they are thoroughlytrained.

With the international structure of the HOPPE Group, its market-leader statusin Europe and the market potential, your job has increased security. Throughyour knowledge, willing approach and ability, you’ll contribute to the increasedsurvivability of the company and thereby the security of your own job.

(revised 8/2005)

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Company Beliefs

(revised 1/2006)

The HOPPE Group recognizes that it must keep up with the challenges ofa constantly-changing free-market economy on a day-to-day basis.

The pursuit of long-term, workable relationships with its employees,customers and suppliers, based on mutual trust, along with its concernfor the regions in which the company is located, takes priority over short-term success.

Nine production plants in Europe and the United States, along withworldwide distribution, form the basis of the company’s survivability,elements of which are:

Liquidity, Profitability, Flexibility, Innovation,Sales and Profits.

These are put into practice under conditions of

Social Acceptability.

The HOPPE Group consists of separate, medium-sized enterprises, whichnot only facilitate direct communication between staff, but provide for simpleand overseeable processes.

The company is continually mindful of the following axioms, which aim toimprove HOPPE’s overall market presentation.

• “Information is the raw material for decision-making.”• “Mistakes are allowed, as long as one learns from them.”• “Employees accept challenges if they understand the why and

wherefore of them.”• “Customers are prepared to pay for beneficial performance only.”

By concentrating and specializing in door and window hardware, and notdiversifying into other areas, HOPPE strives for comprehensivecompetence in its field.

While adhering to the rules of international business, HOPPE aims to keepred tape to a minimum. The right balance between central leadership,through the holding company, and the decentralized freedom of the individualcompanies, makes for the most effective use of resources and maximizesbenefit for all.

The following beliefs, in conjunction with the independent decision-makingpowers of the company owners, make the HOPPE Group what it is today:

“Creativity is intelligent thinkingagainst the norm”,the result being:

“Different from and better than others.”

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Company Aims

(revised 7/2003)

The HOPPE Group aims to be successful in the market by creating additionalcustomer-oriented added-value. The overall objective of increasedsurvivability is to be achieved by committing ourselves to beneficialperformance and willingness to change, combined with the necessaryability to (re-)act. Hence the dictum for our organization: the market processdetermines the internal structures.

Jobs are to be secured in the long-term, humanized by the use of moderntechnology and increased by keeping one step ahead of our competitors.Informed and involved employees, who are willing to learn, can make anactive contribution to the company and earn accordingly.

Social acceptability and consideration for the environment are indispensableprerequisites for the company, its products and manufacturing.HOPPE wants to be the specialist for functional and decorative hardware.

In fairness to employees, customers, suppliers and the regions in whichHOPPE is located, we pursue the principle of

Profitability before Turnover.

Depending on his job, each employee is responsible for costs; and thosewith leadership responsibilities, in addition, for results.

The success of the HOPPE Group is to be secured in the long run by thefollowing company policies:

1. Personnel PolicyHOPPE aims to establish a fair relation between performance and benefitin return.The “creative destruction” of old habits is more important than maintainingconventional lines of thinking.Equal importance is given to competence in the job, social and communicationskills.

2. Quality PolicyThe company continually strives to improve its overall market presentation.

3. Marketing PolicyIn marketing, HOPPE recognizes that increased customer-benefit assuresits own long-term survivability in the most sustainable way and actsaccordingly.

4. Logistics PolicyHOPPE regards logistics as an all-embracing concept of market-orientedcompany leadership, the aim of which is to structure the whole value-added chain, including those partners involved prior to and following themanufacturing process, in an integrated and beneficial way.

5. Environment PolicyBased on economic-ecological demands, HOPPE seeks to achieve itsgoals as economically as possible, using the means available as efficientlyas possible.

6. Communication PolicyCommunication at HOPPE is to be clear, precise, expeditious andconducted in an atmosphere of honesty, openness and lack of fear.

These basic beliefs are all connected and interdependent in the customer-oriented process of creating added-value. They will yield the best resultsonly in conjunction with each other.

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Creating Customer-oriented Added-Value

HOPPE develops, manufactures and markets door and window hardware madeof aluminium, brass, bronze, polyamide and stainless steel.

As a high-volume automated manufacturer, HOPPE supplies high qualitybrand-name products at an optimum price/benefit ratio to a broad spectrumof customers. The finishing touch doesn’t have to be expensive!

Marketing

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HOPPE aims to achieve the highest possible self-sufficiency and flexibilityin production. Having obtained the raw materials, the companymanufactures almost everything itself, with the exception of standard parts,resulting in a high degree of vertical integration of manufacturing withaccordingly high added-value. In addition, HOPPE designs andmanufactures special machinery and other equipment used inmanufacturing processes developed by the company. If these remainsecret, significant differentiation from the competition is possible at source.

Innovation

Manufacturing

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Communication

... with customers... with employees

HOPPE wants to provide its market partners with beneficial performance,since customers are prepared to pay for beneficial performance only.Getting to know the customers‘ needs is the prerequisite. Active listening,intelligent questioning and deliberate wording, and indeed in this order, formthe basis of providing solutions with employees, customers and suppliers.

Of course, HOPPE also seeks constructive cooperation with serviceindustries and administrative offices. Close contact with them at all levelshas played an important role from the beginning.

... right up to the highest nationalrepresentative – the Federal Presi-dent of Germany, Horst Köhler (seepage 30 for more details)

... with suppliers ... with authorities, from local level,such as the Mayor of Stadtallendorf,Manfred Vollmer (right), to regionallevel, with the Economics Ministerof Hesse, Dr. Alois Rhiel (centre), ...

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The Brand

A brand-name product keeps its promise of quality to the customer (e.g.distributor, retailer, OEM, installer and enduser).

From a basic functional element to the finishing touch.

The Brand-name Strategy:• Brand-name as a registered trademark

• HOPPE products bear the logo

• Consistent quality standards

(or improved standards as a result of technical developments)

• Uniform visual appearance (Corporate Design)

• Widespread, enduser-oriented distribution (ubiquitous brand)

• Enduser-oriented advertizing

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Private accommodation

The Handle of Excellence.

The Handle of Excellence lives up to its name everywhere, whether ondoors and windows at the top end of the housing market, such as privatehouses and luxury apartments; in standard housing, such as that providedby local authorities; or indeed on doors and windows in commercial,institutional and public buildings.

The logo is proof that it really is the Handle of excellence, and not amere copy.

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Commercial and institutional buildings

Standard housing

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Beneficial Performance

The Total Beneficial Advantage (“TBA”) for customers

Conditions

Quality

Technique

Conditions

Environ-mentally-

considerateMeasures

Brand-name

ProductsMarketingConcepts

ActivePartnership

InternationalFocusQuality

Technique

Logistics

SalesPromotion

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A”) for customers Advantages which pay!

In addition to what you would normally expect,HOPPE offers more:You‘ll be able to solve your customers‘ problems through innovativeproducts geared to the appropriate target-group.

You’ll enjoy increased trust in the eyes of your customers by your offeringconsistently good, appropriate brand-quality products at various pricelevels. You’ll be actively supported by the relevant standards and testingrequirements met, as a matter of course, as well as the guarantees grantedby HOPPE which exceed such standards by far.

You’ll benefit profitably from business with HOPPE because of the attractiveprice/additional benefit ratio. Be careful not to be misled by comparing themargin of HOPPE products with the average margin of the distributor, sincethis does not take into account the actual processing costs (quantity effects).

You‘ll be making an active contribution to the environment by using HOPPEproducts. Consideration for the environment is of “constitutional”importance at HOPPE, and indeed on a daily basis.

You’ll profit from HOPPE’s international structure (locations, costs, assureddelivery, numerous home markets) not only in purchasing but also in sales.

You’ll increase the efficiency of your sales through the use of our salespromotion activities.

You’ll increase your profits in the long term by benefiting from focusedsales strategies developed in cooperation with HOPPE.

You’ll be able to build up a long term, sustainable business relationshipwith us through close cooperation in the market. HOPPE will contributethrough its ideas and experience.

You’ll stand out as a competent market partner with products „Made by HOPPE“in the distribution chain against competitors who sell cheap, no-name products.

You’ll be able to decrease your stock costs with the help of our binding,high on-time delivery for those ranges with set lead times. Even moresavings potential can be provided by the integration between ourrespective systems.

(revised 10/2005)

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Production Facilities

1,474,700 sq. ft. of production area, out of 3,905,800 sq. ft. totalindustrial area, form the physical basis of HOPPE’s manufacturing.

What is more important than size alone, is the linked possibility of gearing-upproduction utilizing the principles of modern logistics, as well as usingthe latest technology.

D-Bromskirchen plant(founded 1956)162,700 sq. ft. production area

D-Stadtallendorf plant(founded 1954)155,100 sq. ft. production area

I-Schluderns plant(founded 1964)201,300 sq. ft. production area

I-St. Martin plant(founded 1972)178,100 sq. ft. production area

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USA-Corinne plant(founded 2005/06)

36,500 sq.ft. production area

USA-Fort Atkinson plant(founded 1991)

77,000 sq. ft. production area

CZ-Chomutov plant(founded 1996)

99,700 sq.ft. production area

D-Crottendorf plant(founded 1991/93)

332,900 sq.ft. production area

I-Laas plant(founded 1987)

231,400 sq.ft. production area

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The Environment

Consideration for the Environment

Everyone bears responsibility for a healthy environment, but an industrialcompany, with its employees and many links in society, should be awareof its increased responsibility.

Our stance on the environment is based on the recognition that theconflicting aims of economy and ecology don’t actually exist. No systemis more sparing and efficient than nature herself. It’s her processes whichteach us efficiency and thrift:

Economy = Ecology

Based on economic-ecological demands, HOPPE seeks to achieve itsgoals as economically as possible using the means available as efficientlyas possible, in other words, with due consideration for its resources.This is why we aim to

• increase the level of effectiveness by taking due care of the resourcesavailable

• avoid producing unwanted waste as much as possible.

At HOPPE, consideration for the environment is of “constitutional” importance.

Some examples are:

• the manufacture of hardware in an environmentally-considerate way

• the recycling of waste-water and the use of a circulatory system for waterrequired in manufacture

• bio-degradable packaging

• the use of recyclable scrap in the internal raw material cycle

• the use of process heat

• membership of the Hesse State Environmental Alliance

All production facilities of the HOPPE Group in Germany and Italy arecertified to DIN EN ISO 14001.

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The HOPPE Group

legally independent unit

not legally independent unit

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Company Structure as of 3/2006

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Development

In September 1949, following his release as a prisoner of war in theSoviet Union, Friedrich Hoppe made his way to Heiligenhaus (nearDüsseldorf), the traditional heartland of Germany’s lock and hardwareindustry and the place where his family had settled after being expelledfrom their native Silesia.

He set up a company for the produc-tion of door hardware on 5 Novem-ber 1952 in Heiligenhaus afterworking for three years in thehardware industry, realizing thatthere would be a need, and indeedan economically significant one, forbuilding-trade accessories, asreconstruction began after the SecondWorld War. From the outset, his wifeAgnes and his brother, Herbert,were at his side as his firstemployees. In 1954 he moved hiscompany to Stadtallendorf nearMarburg, some distance from the

competition, thereby setting the course for further expansion. In 1956,Friedrich Hoppe set up the first subsidiary in Bromskirchen near Franken-berg, 30 miles from Stadtallendorf. Even at this early stage, concentrationwas on large-scale manufacture of window and door hardware, whichwas to become a basis of the company.

The beginnings in Allendorf (since 1977 Stadtallendorf): foundry, production and office

Production worker 1961

Production workers 1961

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It was in 1963 that the founder, withhis far-sighted location policy,ventured outside Germany and setup the Schluderns plant in German-speaking South Tyrol in 1964.

The idea of going to a place whereindustry was needed, and thereforewelcome, and where there wereenough workers, instead of bringingthem to Germany, was a determiningfactor in this location philosophy.

In 1971 a production site and salesoffice was set up in Müstair, Switzer-

land, which since 1983 has served solely as an international sales officefor the Handle of excellence.

A further plant was set up in St. Martin in South Tyrol in 1972, whichinitially produced aluminium hardware.

In 1975, the second StadtallendorStadtallendorStadtallendorStadtallendorStadtallendorf f f f f plant was set up, where brass hardwarewas produced for the first time. In 19871987198719871987, HOPPE expanded its range toinclude larger-scale production of polyamide handles at the newly-inaugurated plant in LaasLaasLaasLaasLaas, also in South Tyrol.

HOPPE UK in Wolverhampton came into being in 1988 as a sales officefor the British market. An important milestone in the development of thiscompany was the purchase of one of the leading hardware distributors inEngland, Charter Hardware, in 1997.

In 1989, HOPPE crossed the Atlantic to Fort Atkinson (Wisconsin), joiningup with an American trading company and taking it over in 1991, today’sHOPPE North America, where special products for the American markethave also been manufactured since 1997.

With the reunification of Germany in 1990, Friedrich Hoppe and his sonswere determined to make an active contribution to the setting up of thefree and social market economy in East Germany, so they took over aformer state-owned hardware company in Crottendorf, Saxony, in 1991,

Müstair 1972

Wolverhampton

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while at the same time building a totally new plant there, which becameoperational in 1993.

Finally, a production plant was set up in Chomutov in the Czech Republicin 1996.

At the Stadtallendorf production site, the first plant was converted tostainless steel hardware production in 1995. In 2000, the second Stadt-allendorf site was transformed into an assembly plant and distributioncenter. This was to meet the changing logistical demands after theintroduction of enduser-oriented sales in 1996, complementing thetraditional distribution channel via the wholesale trade.Finally, in 2005, a new production hall was built onto the existing plant 1,with plant 2 moving there also. The two (too) small plants, therefore, havebeen replaced by one large, efficient, cost-optimised plant.

In purchasing Stone River Bronze LLC in the USA in 2005, it has beenpossible to extend not only the range of our materials and products butalso broaden our manufacturing technology and customer base. Thenewly-built plant in Corinne (Utah), which replaced the originallypurchased plant in Logan in 2006, is for the development and produc-

Development

Working conditions (now)Working conditions (then)

Chomutov 1996

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tion of high-quality hardwareand accessories in bronzefor residential buildings.

Since 2002, internationalmarketing through HOPPEAG in Müstair, along with itssubsidiaries in France, Spainand China (Hong Kong), hasbeen strengthened by thesetting up of representativeoffices in Finland, Swedenand China (Beijing). In2004 the Stadtallendorfcompany set up a repre-sentative office in Russia.

Since 1979, in line with theexpansion of the company,HOPPE has been pursuinga consistent brand-namestategy, aimed at fam-iliarizing endusers with theHandle of excellence as adesign feature on doorsand windows.

In 1992, the pioneer himself officially handed over control of the HOPPEGroup to his sons, who had proven they were up to such responsibilty,after working successfully together with him. Both had decided from thebeginning to carry on with the business and have been trainedaccordingly. Wolf Hoppe took over as sole chairman of HOPPE AG, Stadt-allendorf, while Christoph Hoppe is responsible, inter alia, for HOPPE AG,St. Martin, and HOPPE AG, Müstair.Through the Holding, both entrepreneurs jointly run the HOPPE Group.It’s here where strategic decisions are made prior to ensuring theiroperative implementation in the national companies.

What stands out in the HOPPE Group, despite its present size, is thefriendly, personal atmosphere and general air of congeniality throughoutthe company as a result of its family ownership.

And so the company has grown from modest beginnings in Heiligenhausto a worldwide business with headquarters in Switzerland since 1993. Today,the HOPPE Group, with its nine production plants plus sales offices in Europe,the USA and China, is one of the leading hardware producers in the world.

In making sustainability a priority in the way business is conducted, notjust financially but in social and ecologic matters too, coupled with overfifty years’ experience in developing, producing and marketing hardware,it has been possible, with continuing globalization, to increase thesurvivability of the HOPPE Group, even in these times of turbulent markets.

HOPPE experience shows:Peak performance boosts the overall

standard of an industry.

The entrepreneurs: Wolf Hoppe, Friedrich Hoppe andChristoph Hoppe (from left to right)

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Praise and encouragement from the top: on 9th December 2005, thePresident of the Federal Republic of Germany visited the HOPPE plant inCrottendorf.

... and finally

In the visitors’ book, he wrote: „Here I got to know a company and itsowners with a forward-looking philosophy in the best sense. It can be anexample to us all. I wish the company all the best for the future becauseit’s all about people.“

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Stone River Bronze LLC2705 North 4600 WestCorinne, UT 84307

+1 435 744 0400+1 435 744 [email protected]

HOPPE Holding AGVia Friedrich HoppeCH-7537 Müstair

+41 (0)81 8516-600+41 (0)81 [email protected]

HOPPE AGAm Plausdorfer Tor 13D-35260 Stadtallendorf

+49 (0)6428 932-0+49 (0)6428 [email protected]

HOPPE AGJaufenstraße 16I-39010 St. Martin i.P. (BZ)

+39 0473 640-111+39 0473 [email protected]

HOPPE North America, Inc.205 East Blackhawk DriveFort AtkinsonWisconsin 53538-1268 USA

+1 920 563-2626+1 920 [email protected]

HOPPE España S.LPlaza Vic. 1- 1° 1aE-08940 Cornella del Llobregat

+34 93 475 17 38+34 93 475 17 [email protected]

HOPPE France E.U.R.L.27, rue des trois FrontièresF-68110 Illzach

+33 (0)389 31-1100+33 (0)389 [email protected]

HOPPE (UK) Ltd.Gailey ParkGravelly WayStandefordGB-Wolverhampton WV10 7GW

+44 (0)1902 484-400+44 (0)1902 [email protected]

HOPPE s.r.o.Prazskà 5377CZ-43001 Chomutov

+420 474 9300-11+420 474 [email protected]

HOPPE AGVia Friedrich HoppeCH-7537 Müstair

+41 (0)81 8516-600+41 (0)81 [email protected]