The Saline Reporter
A Heritage Newspaper
Weekly Publication
Billion Dollar Baby
Second-generation business a worldwide success
By Majida Rashid, Special Writer
PUBLISHED: February 8, 2007
Little did Hans Liebherr know that the company he started in 1949 would place his family on the "Billionaires of the World" list five decades later.
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Swiss-born Liebherr, a contractor by trade, started supplying equipment to the construction industry. His first mobile, easy-to-assemble and affordable tower crane was the foundation.
Gradually, the company became known for supplying building materials. Today, the second-generation, family-owned Liebherr Group Inc. has more than 100 companies spread across the world with about 26,000 employees and multimillion-dollar revenue.
Liebherr Group Inc. manufactures earthmoving and mining equipment, mobile cranes, construction cranes and mixing technology, as well as maritime cranes, aerospace and transportation systems, machine tools and material-flow technology and domestic appliances.
Some of its machines used in mining, such as the Liebherr T282 dump truck, have been recognized with awards.
Success can be attributed partly to the company's philosophy of educating its work force through continuous training and technical assistance, as well as market positioning through increased local presence.
It was precisely this philosophy that brought Liebherr-Aerospace Vice President Jochen Faber to Saline in 1989. The company wanted to start a support center for its airline industry customers in the United States, Canada and South America.
At the time, the Saline plant had Liebherr Automation System serving clients in the automotive industry. They were cutting, cleaning, grinding and packaging automotive parts for their clients. Now the automation system occupies only one-third of the building.
Liebherr-Aerospace of Saline is the first port of call for North American customers, whether they want repairs or new parts. It deals with component sales, in-country liaison, maintenance service and testing and repair of landing gear, hydraulics and air-conditioning equipment for aircraft.
Liebherr-Aerospace is headquartered in Saline's sister city, Lindenberg, Germany. It employs about 1,400 people. It has another production facility in Toulouse, France, that manufactures equipment for airplane manufacturers such as Airbus, airline operators and carriers.
An unusual feature of Liebherr-Aerospace is that it supplies to its competitors.
"Liebherr was known for its building supply materials. The government approached the company to boost the fledgling aerospace industry. By the late '50s, Liebherr-Aerospace was a stand-alone product line. In the '80s, the company acquired the French ABG and SEMCA," said Alex Vlielander, president of Liebherr-Aerospace in Saline. Vlielander joined the Saline plant four years ago.
Today Liebherr-Aerospace is a multi-million dollar company that ranks among Europe's leading manufacturers of aircraft equipment. It manufactures and services, actuation and flight control, air conditioning anti-icing, cabin pressure control, hydraulics, integrated air management and landing gear and systems electronics.
In 2003, the company secured direct order from Boeing to deliver optional equipment for B 777 program. In June 2006, Liebherr-Aerospace Toulouse SAS agreed to supply the air-management system for Boeing Co.'s new 747-8 airplane.
In June 2006, the company hosted a grand re-opening of its Saline plant to celebrate the expansion, which was a result of a tax abatement granted to Liebherr-Aerospace by the city of Saline in 2005.
"We looked at various options. The city of Saline started to compete because of the quality of personnel," Vlielander said. "Saline has a strong German heritage, as well. Besides, the company prefers the environment of smaller rural areas for setting up business."
Despite the economic condition of Michigan, the number of employees in Liebherr-Aerospace's Saline facility has almost doubled to 110 in the last three years. Most of the employees live in Washtenaw County. Some are local college graduates.
"Since the company is family-oriented, it has longer-term vision," Vlielander said. "The company takes care of its employees. We give them good benefits and perks.
"Liebherr Group did so well in 2006 that we increased the company's matching contribution to our employees' 401K by 1 percent for 2006."
The company's success can be attributed to its diverse product line, varied customer base and quality of service worldwide.
Quality is taken seriously. The Saline plant is approved by the U.S. Department of Transportation, Federal Aviation Administration and European Aviation Safety Agency. This ensures that the quality of every part, whether new or repaired, fulfills a criteria dictated by these agencies.
Even the working conditions are clean and environmentally friendly. The atmosphere inside the shops, where repairs and testing takes place, is pressurized to keep all the dust out.
The company offers tours to students of the Michigan School of Aeronautics and the German-language students at the University of Michigan.
The company's participation in the Saline community is through donation and sponsorships. They are the major sponsor of Saline's annual Holiday Parade.
"We appreciate these folks. They contribute and add to the life of the Saline community," said Larry Osterling, executive director of Saline Area Chamber of Commerce.
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