TE Connectivity has decided to strengthen its focus on its core utility business in low and medium-voltage products and solutions. Thus, AXICOM became a non-core business
AXICOM has a premium market position with strong brand heritage, offering best quality and highest adaptability to customer needs
The AXICOM business is not a separate legal entity and therefore doesn’t operate on a standalone basis. There is a high degree of operational entanglements with other TE entities, which provide support functions such as IT, Finance, HR, and Legal
Improvements by RCP:
Transforming AXICOM from a highly entangled and interwoven TE Group unit to a fully standalone company
Accelerating market penetration to gain market shares in APAC and EMEA and unlocking the existing sales potential of AXICOM
Continuous development of new products such as SF6 free solutions or new product design and customization for High Voltage Components (HVC) and Hollow Composite Insulators (HCI)
Implementation of a clearly defined cost savings roadmap, optimizing processes and labor costs as well as fully exploiting the savings potential in material costs
Steel became a non-core business, because Adient has decided to reduce its vertical integration in order to be more flexible with regards to OEM’s volatile order pattern
Steel is well positioned in the metal stamping and forming market as a one-stop-shop provider of the entire value chain, offering tailor made solutions for specified automotive products
Initiatives by RCP:
Assessment of product portfolio regarding margin potential and definition of new improved pricing strategy
Reduction of customer dependency through definition of new customer groups and cross-selling potential including implementation of improved sales process / incentives
Streamlining of organizational structures with focus on support functions and the reduction of number of sites / locations
Improvement of core processes, such as setup-times for manufacturing, and machine utilization
Sector:
Automotive Supplier
Business:
Manufacturer of high precision cold-formed metal parts
Temetic faced reduced order volumes by customers during COVID-19 pandemic and necessary measures for an organizational re-structuring in order to adjust costs have not been implemented
Temetic’s management team without transparency about profitability per product and customer in combination with existing unfavorable customer contracts in context of materially increased input costs in the aftermath of COVID19-pandemic and Ukraine crisis
Temetic’s production setup was characterized by small lot sizes and high set-up cost of machines
Initiatives by RCP:
Streamlining of organizational structures with focus on manufacturing and support functions
Implementation of new finance team, core financial monitoring and controlling as well as implementation of short-term financing
Assessment of product portfolio regarding margin potential and definition of new improved pricing strategy
Improvement of core processes, such as setup-times for manufacturing, and machine utilization
Recent Exits
Sector:
Energy Technologies
Business:
Supplier of energy conversion systems for the rail industry