Karl Eugen Fischer (KEF) is the world’s leading manufacturer and developer of cutting systems for the tyre industry. Tyre manufacturers use the machinery produced by KEF primarily to manufacture rubber-coated steel wire and fabric layers (known as calendered cord material) for tyre carcasses and tyre belts. These layers form the supporting structure for the tyre and give it shape and driving stability. KEF’s machinery cuts this cord with absolute precision. The company’s manufacturing operations are located at its headquarters in Burgkunstadt (Upper Franconia). There is one distribution and service company in the US and one in China. Cutting systems are crucial for smooth production operations of the tyre manufacturing process. KEF’s machinery is at the forefront of this technology. For example, the machines are characterised by a high degree of precision and low material losses, both of which are key success factors. With a high level of vertical integration, KEF ensures that the machines, which are tailored to meet each customer’s requirements, can be supplied in the desired quality and by the desired deadline. The company has been working with its customers to develop the machines for decades and is the preferred supplier of countless tyre manufacturers.

Based on its outstanding technological position, KEF is anticipated to benefit from the rising demand for tyres. As cutting machines are capital goods, the market is faced with some underlying cyclicity. Nevertheless, in the long-term 4-5 per cent average annual growth in demand is expected.

2019 was marked by a difficult market situation for KEF due to the increased uncertainty around future global trade tariffs and other factors as well as a decline in automotive production. Nevertheless, KEF was able to fully defend its market share.

A market recovery is expected for 2020. Backed by a corresponding order backlog, revenues and EBITDA are anticipated to increase over the prior year.