KEY INTERVIEW: Emsland Looks to Recover Following Management Changes

28 Jan 2015 --- Earlier this month the new management board at Emsland-Stärke GmbH announced the staff changes within the business, which were made as a result of “irregularities in business processes,” according to the company. While the investigation into this continues, FoodIngredientsFirst spoke to the company’s new chairman (and managing director of Emsland-Starke GmbH and its subsidiaries), Udo Hinkelmann, to see how this upheaval has affected the business as a whole.

“Although I thought this situation would be not the most comfortable one, the current atmosphere at Emsland Group is quite optimistic,” explains Hinkelmann from the onset. “We will continue to follow our strategy, which we have put in place until 2018, and it will remain a permanent part of our daily work. Many of the more than 1,000 employees are apparently sure that operations will continue as usual and without substantive changes.”

Ensuring that the atmosphere within the company is positive is not something most people expect to face so soon after taking up a new role, but for Hinkelmann this was a key part of his focus for the start of 2015.

The press statement from earlier this month quoted the company’s Gebhard Bakker, a member of the Group’s supervisory board, who pointed to a steadily increasing loss of confidence and inconsistencies since the summer of last year. Around this time various incidents were uncovered, leading to an examination by the forensic department of external auditors KPMG, which is still ongoing. This process has so far led to longtime managing directors Hubert Eilting and Michael Schonert being released from duty. Hinkelmann was appointed to the management board as a neutral third person, he explains.

Thankfully, the reaction of employees has been that of surprise, but “with positive expectations regarding the future direction of the company,” the statement read. Hinkelmann explains further: “We were and are on the right path with many of our activities. We will also continue to intensively pursue the future-orientated projects that we initiated over the past few months. Currently, the forensic department of the external auditors KPMG is doing an intensive examination of all the facts happening the last three years. These results, which we expect are finalized within the next three month, will get things straight. Until then, all members will support the consistent direction of the Emsland Group with an ongoing motivation and commitment.”

As well as the new role for Hinkelmann, the management board has also been strengthened by the appointment of Gerrit-Jan Wesselink, previously responsible for the management of raw material procurement at the Emsland Group. Further important personnel decisions saw longtime employees Stefan Hannemann, Stefan Joppich, Christian Kemper and Dr Norbert Sdunnus being granted full power of attorney, with effect from January 7, 2015. And the company is also still seeking another top management member to head the Finance division.

“With Gerrit-Jan Wesselink now a member of the executive board with more than 10 years working experience at Emsland Group, we have an expert in the raw materials procurement segment,” explains Hinkelmann. “This is quite important for our raw-material suppliers and stockholders. We also seek another top management member to head the Finance division, which will give us a competent lead for the future.”

The company has stressed that despite the changes it will not veer from its strategic direction, as Hinkelmann confirms. “We are the market leader for potato flakes and granules; the No. 1 solution partner in the entire sector of potatoes. As a partner of our customers we develop new applications in tune with nature. This is a very positive point of departure. With innovative products and services, we would like to position ourselves as a competent solutions partner even more strongly in the future.”

The goal for the company, he explains, is to generate new and improved products along the entire internal and external value chain for the area of “food innovation and technical specialties,” with optimal product conditions.

“We have already made an important step in this direction with our newly created “Emsland Innovation Germany,” an outstanding innovation center,” he notes. “With the most modern food technology equipment as well as the highly modern development and analysis areas, we are making our motto “using nature to create” into reality.

Hinkelmann adds also that the company sees good opportunities with alternative raw materials, such as peas, and on the basis of these new starch, protein and fibre products are being created to exploit new markets.

“In my opinion Emsland Group is a very economical healthy company with an efficient way of working,” he concludes. “For sure, we have substantial but at the same time exciting tasks awaiting us in the coming years. But we will continue to focus on the proven cooperation of well trained employees, agencies, customers, suppliers and service providers, supported by our raw-material suppliers and stockholders. Because it will only be possible to reach the goals that we have set for the coming year by a show of joint commitment.”

In his opinion the Emsland Group will “continue in the foreseeable future” to be Germany’s largest producer of potato starch and a global leader in the manufacture of refined starch products, proteins, fibers, as well as potato flakes and granules in the international market.

By Sonya Hook