This medium-sized company achieves true globalisation through a clever business model
The world is growing closer and closer together. It is not just news that travel fast around the globe, also products cover increasingly longer distances. As a consequence, medium-sized companies are in worldwide competition, especially when they offer technical solutions for large projects. Finding ways to differentiate oneself from the competition can be a key success factor for a company. LTI ReEnergy demonstrates how this can be realized successfully. As a part of the Körber Group, an international group of technology companies, LTI ReEnergy is based in the German town of Unna.
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Mit einem cleveren Geschäftsmodell: Dieser Mittelständler lebt die Globalisierung
The solar energy market is growing rapidly and can rightly be described as highly intricate: Subsidies which companies in some countries benefit from more than in others, distort competition. Government grants for renewable energies play also an important role. There is no doubt that LTI ReEnergy as a supplier of technical components for solar parks, as well as wind and hydroelectric power plants, operates in a difficult market environment. Still, in the past decade, the company has become one of the leading global suppliers of electric blade pitch control systems for wind power plants and for central inverters including turnkey solutions for the photovoltaic industry.
“German Heart – Local Content”
But LTI ReEnergy’s success is not just based on their outstanding products as the result of German engineering. LTI ReEnergy also deploys a clever business model which CEO Michael Bellmer summarizes with the company slogan “German Heart – Local Content”.
For many projects, LTI simply manufactures its core technology – the most efficient inverter in its class – in Germany and delivers it to the desired location. The remaining components of the system, which works reliably even under difficult conditions, are produced locally by specially qualified partners.
LTI ReEnergy’s process increases the return for local investors
This approach offers a number of benefits: The crucial technical know-how remains in Germany and under the ownership of the company. Transport costs and any impact associated with the transport are kept low. But most of all, LTI ReEnergy is able to meet local requirements. In the field of renewable energies these are mainly in relation to state subsidies for construction and special feed-in regulations. While most competitors in the market will produce all components through subsidiaries in the target country, LTI ReEnergy commissions local, specially qualified companies. By including regional providers, investors can benefit in all projects, in which LTI ReEnergy is involved, from local government subsidies .This international value chain model “German Heart – Local Content” shows: sharing benefits for everyone is possible!
Flexible approach for global success
There is another building block to help LTI ReEnergy be successful in the world markets. By taking a closer look at LTI ReEnergy, it becomes apparent how valuable it can be when a medium-sized company (as part of a strong group) has financial strength while retaining the flexibility of a medium-sized company in day-to-day business.
Michael Bellmer explains: “On the one hand, we can properly invest in continuous development at the highest level in order to always provide customers with products based on state-of-the-art technology. On the other hand, we are not bound by rigid global concepts.” On the contrary, LTI ReEnergy consistently considers local conditions and circumstances and successfully adjusts their approach to local requirements. For most projects, such as in Turkey, LTI ReEnergy collaborates on a temporary, project-specific basis with regional providers. In major markets like the United States, solid collaboration networks have been established, for example with Shoals Technologies. These will be expanded over the next few years reaching beyond the borders of the USA to implement cooperative projects in Latin America, the MENA region and in South-East Asia. For Chinese projects, however, only the most critical components are supplied. The control cabinets are manufactured in China by contractors under the same quality standards as in Germany, and local warranties are transferred to the local partner company.
More innovation for wind and hydro power
LTI ReEnergy is well placed not only in solar technology, but offers innovative technical solutions also for wind and hydro power. The extensive know-how within the company, the high regard for German technology in the world and the company’s proven flexibility are helping to selectively expand LTI ReEnergy’s market position for wind and hydro solutions over the next few years. In wind energy, for example, LTI ReEnergy is already a global leader for compact, electrical solutions for the adjustment of the rotor blades, which replace traditional hydraulic technology. LTI ReEnergy offers efficient feed-in systems for small hydro power plants.
Overall, it can be said that companies such as LTI ReEnergy fully embrace and live sustainability across all areas: valuable jobs are retained permanently in Germany; transport routes are kept to a minimum; the products serve a more considerate way of interacting with the environment and utilizing resources. Moreover, the interests of all stakeholders are considered – from employees and customers to suppliers and technicians.
LTI ReEnergy GmbH