Reorganization of GEA Divisions

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Increased transparency and improved controlling through all divisions is the goal

Reorganization of GEA Divisions
Reorganization of GEA Divisions

Technology group GEA has outlined its new organizational structure, which will be implemented gradually from October 1, 2019 onwards and become effective January 1, 2020. Going forward, GEA will be organized in five divisions with each up to six sub-divisions. These will be based on technologies and be essentially oriented towards existing legal entities of the Group. Each division will be led by a manager directly responsible for the Profit and Loss account (P&L). Central Group functions will be focused on areas featuring the greatest potential for synergies, in particular procurement and production. GEA will continue bundling activities in country organizations, which has proven itself since 2015 and will ensure central points of contact on the ground for customers. 

New Executive Board position for procurement, production and logistics 

Given the great significance of procurement, production and logistics, GEA will create a new and joint Board level position for these areas. A targeted search to fill the post of this COO position has already been launched. Previously, procurement activities were led separately by business areas or countries. Going forward, they will be bundled in a single global procurement organization. The procurement volume of the entire group amounts to more than EUR 2.5 billion per year

Executive Board member Martine Snels has decided to not prolong her contract expiring by the end of September 2020 and will leave GEA at her own request at this point of time. The Board will therefore continue to comprise four members going forward. Martine Snels’ current responsibility for GEA’s regions and countries will be split between the remaining Board members following her departure. Responsibility for the five divisions will be split between CEO Stefan Klebert and Board member Steffen Bersch once the new organizational structure has become effective. “One of the major changes will be the organization of the company along technologies – which is just appropriate for a technology leader. The importance of procurement and production will be reflected in the creation of a new Executive Board position. The division heads will have full accountability for the respective results.”, commented Stefan Klebert, CEO of GEA Group Aktiengesellschaft. 

Five divisions

The company’s current organizational setup features the two business areas Equipment and Solutions. However, the businesses in these two areas are bundling different technologies with limited potential for synergies. They will be replaced by a clear divisional structure in which the new segments comprise similar or highly complementary technologies. 

Separation & Flow Technologies 
Separation & Flow Technologies comprises all activities related to the manufacturing of process-related components, in particular separators, decanters, valves, pumps and homogenizers.

Food & Healthcare Technologies 
The offering of the Food & Healthcare Technologies division comprises different competencies in the field of foodstuff and pharma. This includes customer solutions for foodstuff processing and packaging, solutions for the bakery industry, extrusion and milling technology as well as process technology for the pharmaceutical industry. 

Refrigeration Technologies 
Refrigeration Technologies is among the market leaders for industrial cooling technology. The division develops, manufactures and installs technical customer solutions and innovative key components like reciprocating and screw compressors. 

Farm Technologies 
Farm Technologies combines all activities related to integrated customer solutions for profitable dairy production and livestock farming. 

Increased financial transparency and improved administration processes 

Central steering and administration functions as well as standardized administrative processes will continue to be bundled in a Global Corporate Center (GCC). Moreover, GEA will retain existing structures of the Shared Service Center (SSC) with regards to IT, finance and human resources, while improving this on a continuous basis to ensure smooth administrative processes. The new organizational structure will significantly increase financial transparency and controllability of GEA. The financial reporting will be simplified and linked to the legal units.
 

Posted on July 11, 2019 - (71 views)
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