Investment Success Story
Matching Australian innovation with Germany technology
June 2013
Environmental and waste management specialist REMONDIS invests in Australia and then takes Australian technology to a global market.
It’s not often that an engineering idea is exported to Germany. But Luenen-based REMONDIS, one of the world’s leading water and environmental service companies, realised its Australian subsidiary had machinery that deserved a wider audience. REMONDIS International Managing Director, Torsten Weber, takes up the story...
“When we first came to Australia in the 1980’s, we realised it was a country with a lot of interesting activity in waste treatment,” says Weber.
“For example, we came across the side-loading truck, at a time when everyone in Europe was using rear-loaders. We shipped one from Sydney to Germany. We also had a front-loader in Australia that had never been used in Europe. This system was also much more efficient than rear-loaders.
Mr Weber says the company’s Australian experience made it the first to use these types of trucks in Germany and soon, its competitors followed suit.
“We took a lot of higher performance and higher activity trucks and experience to Germany and we forced the industry to change.
“Our Australian experience made us the first company in Germany to use these types of trucks and our competitors followed because they realised these systems are much more efficient and cost-effective. We then took these systems from Germany onto America.
“Over the years, we have taken more ideas in logistics from Australia to Germany than we have from Germany to Australia.”
Since then, REMONDIS has discovered Australian innovation in waste management goes well beyond side-loading trucks. The company has transferred a number of technologies and systems developed in Germany such as mechanical biological treatments to its operations around the world.
REMONDIS Pty last year acquired the waste business of the Leighton Group in Australia. This places REMONDIS now in the Top 5 in the Australian waste market.
The Australia-Germany connection
REMONDIS Australia is part of the REMONDIS Group of Companies. The parent company started in 1934 and now has more than 500 facilities in 34 countries and 28,000 employees. Annual global turnover is more than €6 billion.
Beside of a lot of waste and industrial service division, like TSR and Xervon, REMONDIS also concentrates on water management and environmental services. The company safeguards water supplies and collects and treats wastewater. Its environmental services include logistics systems and processing recyclable matter into raw materials, products or energy, reducing the amount of waste that would otherwise go to landfill.
REMONDIS Australia was founded in 1982 in Sydney. Since then, REMONDIS has continued to invest in Australia, opening branches in Melbourne in 1992; establishing a state-of-the-art organic resource plant in Port Macquarie in 2001; opening a depot in Brisbane in 2006; and opening branches in Adelaide and Perth in 2007.
Today, REMONDIS Australia operates 110 vehicles and employs about 180 people. The company serves more than 7,000 commercial clients and works with many domestic customers.
Why Australia is a priority market for REMONDIS
Financial pressures mean many European companies are seeking alternative markets. Weber says REMONDIS looks for countries that have strong economies and stable currencies.
At the same time, many Australian government authorities have established municipal waste reduction targets and are using landfill taxes to drive compliance.
“There is a lot of potential for investment in the new technologies that Australian companies and municipal authorities will need to make their waste treatment more efficient,” says Weber.
“We have all that proven technology and experience. We are very strong in logistics, waste collection, and all kinds of waste treatment – commercial and domestic.
“For example, we are in the process of building plants that can capture more methane gas and transform it into energy. This is the future: waste-to-energy.”
Why REMONDIS invests in Australia
Weber says that Australia’s business environment, infrastructure and skills base has always allowed REMONDIS to make investments with confidence.
“Our investments in Australia have only increased in value. It is not our main focus to invest money in fixed assets in some countries.
“In Australia it is different. The legal framework is visible and practical. We know exactly what is expected of us and we know we are safe in this market. Nothing depends on politics. That is very important.
“In some countries you can have a contract only for three years and your business is dependent on the local politic. That is too volatile. We are totally free of such issues in Australia.
“Australia allows you to concentrate on your business – developing your technology and operations without having to worry about the things that do nothing to advance your business.”
Business opportunities from Australia
Weber says REMONDIS faces different commercial issues in Germany than it does in Asia and Australia. The company cannot export all of its waste treatment technologies around the world due to their expense or their suitability for local requirements.
“We operate in China, Taiwan and elsewhere in Asia,” says Weber. “Sometimes, our technologies developed in Europe are not transferable to these markets. Maybe we will also export alternative systems we operate in Australia to our Asian markets in the future. The Australian technology is of great interest to other parts of the world.
“In Germany we have around 100 waste incinerators and biomass power plants. In Europe, this is the usual waste treatment process. In Australia this technology is not accepted yet, but also we believe, it will come some day, so we will use mechanical biological treatment plants to maximise recycling and minimise landfill. In other countries also it is easier and cheaper to process waste this way.
“It helps our business in Asia to use our technology, knowledge and experience out of Australia.”
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