European Business: Mr. Seidel, could you give us an overview of the company’s history and its focus areas? 

DI Stefan Seidel: Pankl has always concentrated on niche markets and high-tech sectors, with a particular emphasis on innovation. We started out as a motorsport specialist, and over time, we’ve expanded into the sportscar and hypercar sectors, using the technologies and innovations we developed for racing. More recently, we’ve made significant strides in the aerospace sector. We manufacture high-performance components such as crankshafts, connecting rods, and gearboxes specifically designed for racing applications, as well as lightweight, precision-engineered parts for aerospace that meet stringent safety standards. Even during the COVID-19 pandemic, when aviation was at a standstill, we took the bold step of building a new factory for aerospace components. Now, as the industry picks up again, we’re ready to meet the demand with cutting-edge products.

European Business: How has Pankl managed to maintain growth despite rising costs and economic pressures like EU regulations? 

DI Stefan Seidel: The economic climate, especially with inflation and rising energy costs in Europe, has been challenging. To address this, we’ve heavily invested in automation and digitalization, which have been essential in keeping us competitive. Our ERP system, for example, has been invaluable in streamlining our production and managing the thousands of components we deal with. This allows us to produce more efficiently, despite rising operational costs. With 2,500 employees in the Pankl Racing Systems division, contributing to a total group revenue of 930 million euros, we’ve also reduced transportation expenses by increasing in-house production, which has the added benefit of minimizing our environmental impact.

European Business: Sustainability has become a major focus for companies across industries. How is Pankl approaching this challenge? 

DI Stefan Seidel: Sustainability is a key pillar of our strategy. By increasing vertical integration, we’ve managed to reduce transport distances, which lowers emissions and costs. Additionally, producing more components in-house gives us more flexibility, ensures better quality control, and reduces our carbon footprint. Our aerospace division, for example, is heavily focused on developing components that support more sustainable forms of aviation, such as lightweight materials and greener propulsion technologies. 

European Business: With operations around the world, how do you balance your global presence? 

DI Stefan Seidel: Although we have production facilities in the USA, Slovakia, the UK, and Germany, the heart of our operations remains in Austria, where 75% of our workforce is based. Austria is where our most specialized products are manufactured, particularly those requiring advanced technical knowledge. For high-volume production, especially in markets like Asia, we may localize certain operations to remain competitive. However, we always maintain a strong link to our Austrian operations to ensure that the same high standards are met across all our sites. 

European Business: How does your focus on innovation manifest in practice? 

DI Stefan Seidel: Innovation is at the core of everything we do. Our R&D teams are constantly pushing the envelope, whether through developing new materials, advancing additive manufacturing processes, or refining lightweight construction techniques for motorsport and aerospace. We are also exploring the potential of artificial intelligence and digitalization in production. While AI is still in the early stages for us, it’s an area we’re excited to develop further. Motorsport remains our testing ground for innovations, which we later apply to road cars and even aerospace.

European Business: How do you attract and retain talent, especially in such a competitive market? 

DI Stefan Seidel: Our employees are a critical part of our success, and we focus on fostering a dynamic, innovative culture with short communication paths and open idea exchange. We emphasize young talent, particularly through our apprenticeship program, with 150 apprentices in Austria making up 10% of our workforce. Continuous training through our Pankl Academy ensures we stay at the cutting edge of technology. Additionally, health programs and sports events help maintain a motivated and positive work environment. 

European Business: Shifts in employee expectations, particularly around work-life balance, are impacting industries globally. How is Pankl addressing this trend? 

DI Stefan Seidel: It’s definitely a challenge. Fewer people are willing to work in shift systems, especially the three- or four-shift rotations that we require for some of our operations. That’s one of the reasons we’re so focused on automation and digitalization—to reduce the need for manual labor in these areas. However, we’ve also made efforts to improve working conditions and offer flexibility wherever possible. We’re committed to finding a balance that works for both the company and our employees.