The Movement Artists
Interview with Ralph Breuer, Managing Director of Stromag GmbH
They are inconspicuous, but play a key role in various industries because they ensure smooth operation of wind turbines, agricultural machinery, elevators, crane systems, or engines in the background: switchable couplings, brakes, highly elastic couplings, and cam limit switches. Indispensable products that have defined the portfolio of Stromag GmbH from Unna for over 90 years.
Wirtschaftsforum: Mr. Breuer, you have been with Stromag GmbH for almost 20 years, holding various management positions and have been managing director for more than three years. What is special about Stromag?
Ralph Breuer: Stromag has been consistently growing since its foundation and is today a part of the American corporation Regal Rexnord, based in Milwaukee. Despite this dynamic growth, it still has a medium-sized company spirit. This spirit of the medium-sized business is for me a significant characteristic.
Wirtschaftsforum: The company's roots go far back. What were the major milestones in Stromag's history?
Ralph Breuer: Stromag was founded in 1932 in Dortmund as Stromschienen und Apparatebau GmbH and moved to Unna in 1933, where its headquarters are still located today. Initially, the production was limited to busbars and electrical crane materials, but as early as 1933, couplings were added to the portfolio and have been continuously optimized and developed since then. Notable products include spindle limit switches, multi-disc clutches, electromagnetic single-disc clutches, gear cam limit switches, and hydraulic ship clutches. However, not only the continuous expansion of the product portfolio has significantly shaped the history of Stromag, but also its internationalization. The first branch was established in Austria in 1953, followed by 15 more subsidiaries worldwide from 1961 to 1981. In the over 90 years since its foundation in 1932, a lot has changed; the core competence in manufacturing drive components has remained unchanged.
Wirtschaftsforum: There were also significant organizational changes. What does the current structure look like?
Ralph Breuer: Stromag was a family business for a long time, acquired in 2007 by the investment company Equita. In 2011, Stromag became part of the English conglomerate GKN. In December 2016, Stromag was acquired by the American conglomerate Altra Industrial Motion, headquartered in Boston. After the entire conglomerate merged with Regal Rexnord in April 2023, Stromag GmbH is also part of the American conglomerate based in Milwaukee. The acquisition was a major cut and involved a cultural change. But, as I have already emphasized, there is still the feeling of a typical medium-sized company at Stromag.
Wirtschaftsforum: The production of clutches and brakes has been Stromag's core competence since the beginning. What products and application areas does the company exactly stand for?
Ralph Breuer: We supply clutches and brakes in any form, including electromechanical, pneumatic and hydraulic actuation. This includes 2in1 solutions, combinations of switchable with highly elastic clutches, as well as limit switches, encoders, plates, and friction linings. These are mostly custom Engineered-to-Order designs. Although we have a very broad product portfolio, we mainly deliver tailor-made solutions, which are developed in close cooperation with our customers. Our products are used in a variety of markets; ranging from the steel industry, marine, mining, and engines to warehouse vehicles, elevators, agriculture, and mining. We work for major names like Liebherr and their suppliers. Ultimately, Stromag solutions can be found anywhere loads are moved. This also includes theater technology and TV studios.
Wirtschaftsforum: Stromag has always remained true to its core competence while evolving with the market and its demands. What innovations or technical developments play a role today?
Ralph Breuer: One issue we are deeply engaged with is electrification. In ports, the push is increasingly to maneuver electrically only. That's why we have developed a compact combo standard for clutches that significantly reduces volume. For nearly every combination of electric or diesel engine and pump, generator or belt drive, we offer suitable 2in1 solutions. Digital technologies shine in predictive maintenance, among other areas. Since sensors are prone to failure and electronics might fail, we want to move away from sensor technology. Special electronic evaluation modules enable us to develop predictive maintenance models. The advantage is that spare parts can be scheduled even before the machine fails, yet we can already detect when wear will occur. Overall, we focus intensely on process optimizations in close coordination with the team in the USA.
Wirtschaftsforum: Stromag employs 435 employees in Unna, turns over about 85 million EUR, and ranks among the top 2 to 3 companies depending on the markets. Is there a recipe for success? What makes Stromag different?
Ralph Breuer: Because of our location, we have to offer more than others; for example, manufacturing is more expensive. What is crucial is that we provide added value, for example through competent and comprehensive customer consultations that reflect our extensive application knowledge. This is complemented by our internationally active sales and service team. Ultimately, what sets us apart is the total package and extraordinary application knowledge.
Wirtschaftsforum: What role does sustainability play for Stromag?
Ralph Breuer: A large role. Because we actively want to contribute to climate protection and see it as our duty, we have, among other things, switched technology in the hardening shop and eliminated salt bath hardening. We use LED technology, supply components to wind turbine manufacturers, and are planning a solar field to be able to operate with electricity generated in-house in the future. Of course, sustainability reporting is also a big issue.
Wirtschaftsforum: The mood in the economy is currently subdued. How do you look forward? Do you have a call to the government?
Ralph Breuer: We need to ensure Germany's competitiveness; the Ruhr area is particularly under pressure. To set new accents here, we would like to see the government reduce bureaucratic hurdles; we also need to get energy costs under control again and think about the supply chain law, which brings many problems. The topics of education and sustainability are also challenging. We need to talk about innovations and technologies to reduce CO2 emissions; we have big gaps here. As early as school and university, we need to raise awareness and create an open culture for technological innovations. Only then can we differentiate ourselves from international competition.
Wirtschaftsforum: What personally excites you about your work given these great challenges?
Ralph Breuer: I am demotivated by stagnation, whereas any change in the right direction motivates me. At Stromag, I see new challenges every day in an exciting environment with an open-minded, competent team and around exciting technologies. That is my personal motivation to get a little better every day.