Between Tradition and Transformation
Interview with Dieter Kleen, Managing Director of IAS GmbH
Electrification is considered a key strategy for shaping and advancing the energy transition. It involves much more than just switching to electric vehicles. An important building block on the way to a green future is the use of induction systems, as manufactured by IAS GmbH in Iserlohn. Their induction furnaces are not off-the-shelf, but reflect individual customer wishes.
Wirtschaftsforum: Mr. Kleen, you have been the managing director of IAS GmbH for two years. How would you describe the company, its structure, and its core competencies?
Dieter Kleen: IAS is an independent company within the SMS Group, operating in the metalworking industry. We manufacture induction furnaces for both inductive heating and inductive melting of metals. Founded in 1985, we are currently transitioning from a master craftsman's business to an industrial company; I have been accompanying this process as the managing director for almost two years. As a mechanical engineer, I previously worked in various roles and industries for many years.
Wirtschaftsforum: What did the company development look like in broad terms?
Dieter Kleen: IAS started as a pure service company, handling for example repairs and maintenance of induction systems. It was only after a restructuring in the 1990s that we gradually began manufacturing our own products and systems. Today, IAS employs 60 people, with revenue of around 15 million EUR and an export share of 70%. Services now account for one third of the revenue. Since 2013, we have been part of the SMS Group, which provides us with a financially strong parent company. We carry out many orders together, and we also utilize the worldwide network of the group. In this way, we combine the best of both worlds and benefit from important synergistic effects.
Wirtschaftsforum: Induction furnaces have always dominated the portfolio. Are there any highlights?
Dieter Kleen: The billet heater technology marks an important milestone. In inductive heating, blocks are heated and then pressed into profiles, which are often needed for electric vehicles. With this, we are actively shaping the green transformation. It is a forward-looking technology that has allowed us to win many customers. Another highlight is our melting furnaces. Here we only work with non-ferrous metals such as copper and zinc and are heavily involved in recycling. An example here is the recycling of circuit boards.
Wirtschaftsforum: The portfolio thus rests on the two pillars of inductive heating and inductive melting. It is a technology with a rich tradition and great potential. How important are innovations in this market?
Dieter Kleen: The industry is rather conservative and making changes is difficult and time-consuming. Our primary goal is therefore less about launching new products, but rather making existing plants more efficient, optimizing them to save energy. We work with electricity and the less electricity that is needed, the greater the competitive advantage. Retrofitting old plants is naturally only possible to a limited extent, yet it remains an interesting business where we develop new things together with the customers.
Wirtschaftsforum: IAS has been in the market for 40 years and is, as you said, transitioning into an industrial company. Why has the company been able to successfully maintain its market position for so long?
Dieter Kleen: One strength is our technical expertise. We are involved in plant construction; every facility is different, there are no off-the-shelf products. We listen closely to customers, know what they need, how their process works, and implement individual solutions. In addition, there is the quality. We have a high depth of production and all the electronics are in-house. With our own converter technology, we set ourselves apart from the market. Last but not least, the name IAS stands for strong service orientation; we come from service, this is where our DNA lies, and we have the staff to live this service ethos.
Wirtschaftsforum: Does that mean that the shortage of skilled workers has not yet reached IAS?
Dieter Kleen: On the contrary: the shortage of skilled workers is one of the biggest challenges. We are desperately looking for employees, especially for assembly. The willingness to travel for a longer period, despite financial incentives, is not very pronounced today. We have tried many things in recruiting; nevertheless, it remains difficult to find suitable personnel.
Wirtschaftsforum: What values characterize the company culture?
Dieter Kleen: Reliability, honesty, and innovation capability. Last but not least, we are fast and agile and want to remain so.
Wirtschaftsforum: Maintaining agility despite growth is a goal. Are there any others?
Dieter Kleen: We are aiming for a clear growth path and anticipate a sustained revenue of over 20 million EUR. Therefore, not only qualified employees are essential, but also improved, professional processes.