Karl Eugen Fischer GmbH (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), where more than 500 of the 545 workers are employed. There is one distribution and service company in the US and one in China. Cutting systems are crucial for smooth production operations. 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 and, as a result, for the corresponding production facilities. As a result, the company will be investing in expanding its capacities over the coming year, for example in the construction of an additional assembly hall in Burgkunstadt. The company’s revenues and the number of employees have risen by an average of five percent annually since 2005.

DBAG Fund VII acquired a stake in KEF in June 2018, from which time early measures have been initiated to strategically develop the company and optimise its operational processes. KEF’s revenues and earnings in 2018 are expected to be slightly above the previous year’s level.

KEF will continue to push ahead with the measures agreed at the start of investment. In 2019, KEF expects, at best, a stable business performance. This is due to the fact that many of its customers are holding back on investment decisions in light of the uncertainty caused by the trading conflicts between the United States and both China and the European Union.