HISTORICAL LEADER IN EMBEDDED ELECTROMECHANICAL RELAYS

Mors Smitt is now one of the worldwide leaders in its main market: embedded electromechanical relays used in the railway sector, where the company has been present since the 1950s. Electromechanical relays are used to transmit an order between the command part and the power part of an electrical device. For example, the opening of doors or the air conditioning in trains. These are essential components that guarantee the proper performance of critical operations.

2010 turnover : 40.3 million euros

Arne Wijnmaalen,
President

Prospects
With revenue growth of more than 20% in 2010, Mors Smitt fully benefited from its positioning on a particularly buoyant market, rail transport. Whether it is for financial or environmental reasons, this method of transport is growing rapidly in both emerging and developed countries.

This performance was notably driven by the development of Asian markets, where Mors Smitt records sharp growth. In China, where the group opened an assembly plant in Zhongshan and a sales office in Hong Kong, 2010 revenue totalled €9 million, for growth of about 30%. Asia currently accounts for almost 25% of the group's revenue, notably thanks to a strong sales network that it has been developing over the past ten years. Another market in which Mors Smitt intends to invest increasingly in the next few years is India, with its 1.3 billion inhabitants.

The group's expansion also draws on its capacity to innovate. In addition to its recognised expertise in automating on-board electromechanical procedures (mechanism used to open doors, air conditioning systems in trains and braking systems) which has earned the group some of the largest rail transport groups as its clients (SNCF, Alstom, Bombardier, Siemens, etc.), Mors Smitt benefited from the mass distribution of its signalling relay (NS1) designed for use on tracks and certified by SNCF.

This is the same for the energy measurement system MSAV 25000, whichwon its first two major contracts in 2010 with Alstom and Bombardier. Eight hundred running gears will be equipped with the MSAV 25000. It is a new product with strategic interest for train manufacturers, at a time when the European rail market is opening to competition and railway network managers are breaking from transport companies. Another innovation is the modernisation of the Sablé production unit, with an automating assembly at the plant.

The group also decided to review its structure: marketing and sales in the Netherlands, train-related technological issues in France and the manufacture of skilled-labour intensive products in China.
At last, Mors Smitt is looking even further ahead, with the development of new-generation products, a mix of traditional techniques and new technologies.

Sustainable Development

The rail industry is particularly stringent in this area. Suppliers are required to meet strict quality, safety, health and environmental standards. Mors Smitt's environmental policy is integrated at its ISO 9001 and 14001 certified sites and into its supplier strategy: products are designed and developed in a way to reduce both costs and energy.

ESG issues are perfectly integrated into the company's strategy and have influenced its understanding of the business as well as its executives and employees. The group has defined a mission and values that take into account all of its stakeholders.The Management Board is very involved in a responsible social policy that favours integration, skills development, compliance with standards for working conditions and a number of other labour-related benefits. It also encourages strong communication with its employees, which helps motivate them and promotes employee loyalty.