We look back on the results of 2019 with satisfaction. After the successful years ’16, ’17 and ’18, the objective was to maintain those results. The filled order book increased the group’s confidence. This ambitious objective was nearly achieved. Sales rose slightly to almost 68 million euro and net earnings even increased. The favourable results achieved in recent years strengthened the group’s equity, leading to an increase in the group’s solvency of over 60%. It is true that the increase in equity slightly reduced the profitability compared to 2018, but at 25% it was still above average compared to the overall industry average. The favourable results and the thorough investment policy also ensured a healthy cash flow and liquidity position. As can be seen, for example, from the current ratio the results make the group a very strong player in the construction, transport and machinery industry.

Within the group, too, the earnings of all divisions were very solid. Kampstaal and Kamplacon were responsible for the largest share of the turnover with steel construction and cladding. The results of these companies in 2019 were even slightly better than 2018, both in terms of turnover and earnings. Turnover was frequently achieved through cooperation with existing clients. After a successful collaboration, they are also happy to carry out the follow-up assignment together. Nauta’s results in infrastructure and industry were also excellent throughout the year.

Nauta Heeg and Vossebelt

In Heeg a stylish architect-designed new office building was built, with plenty of room for future plans in the field of infrastructure and industry. Not only does the office offer more space, but above all it has become a very pleasant place to work. In order to further flesh out Nauta’s plans for the future, an extensive 3D cutting-drill was acquired. The production of various large and heavy constructions requires precise pre-treatment of thick sheet-metal work, pipes and other profiles. The new machine is able to cut and drill these profiles in all angles. We avoid unnecessary welding and the production process is therefore more efficient.

In addition, Nauta and Vossebelt have jointly invested in a welding robot installation which was put into operation at Vossebelt in Geesbrug in the beginning of 2020. With modern offline programming software, the installation is ideally suited to automatically weld single pieces and small series of semi-finished products.

Kampstaal

Kampstaal purchased a new sawing machine that will further increase its sawing and drilling capacity. In addition, Kampstaal has invested in a grinding and deburring machine. Here too, the machine avoids manual grinding work later on in the process, which offers cost benefits in terms of health and safety.

In 2019 the environment and climate was a much-discussed topic. There is consensus within science; we will have to take drastic measures to prevent global warming and rising sea levels. Politicians respond to this with plans and policies, for example in the field of nitrogen emissions and PFAS pollution. And people in turn respond to that. In 2020, when this annual report was published, the coronavirus came on top of that. Solidarity is not self-evident in these times. When economic growth is no longer guaranteed either, uncertainty grows. How can we still live together in a sustainable way with the current level of population? Especially when nature makes itself felt, and challenges of this magnitude come our way, mankind will have to unite. This applies to the whole of society, but also to the business world.

Strategy

Economies of scale and synergy enable GB Steel Group to invest more efficient efforts into the future. That is why the group has set itself the goal of growing to the top of the Dutch manufacturing industry. For achieving this objective, cooperation, sustainability, talent management and automation are important pillars. We are proud that our business grows according to plan; in 2019 GB Steel Group climbed to place 33 in the Dutch manufacturing industry. #wemakesteelwork

Although economic growth is not self-evident in current times, growth in the sense of learning and development is always an issue. In a technical company, the emphasis usually tends to be on technological innovations. Of course, technology enables us to work on the finest projects every day. As in other companies, technology is always developing. Technical knowledge alone is not enough to meet these challenges and seize opportunities such as robotization and digitisation. Organising and innovation is about people. The social aspect of change is just as important as technical knowledge itself. That is why GB Steel Group not only focuses on development in technology, but also on people and organisation.

We do not only apply the vision of social innovation and cooperation to ourselves. We also cooperate with others. In the chain, we work together in construction teams with suppliers and customers. Especially in the construction and customization industry, where each project is unique, the organisation and chain must be able to learn from their mistakes and work together on opportunities. This cooperation and mutual trust ensure that risk management is at a higher level, which benefits results throughout the chain. Again, our conviction is that we are not only working for our own interest; there is no ‘I’ in GB. Working together means learning to understand each other’s interests, passing the ball to each other, and eventually scoring together. Never change a winning team also applies in business; clients appreciate our way of working and are therefore happy to choose a long-term relationship.

Anyone who chooses sustainability has a head start with steel. It is made of more than 80% recycled iron. It is especially suitable for demountable building and thus for avoiding new construction.

In previous editions of our annual reports we already mentioned another ambition: with the maintenance of the Dutch bridges and locks, infrastructure is a market with a lot of potential. Ambitions are there to be realized, and GB Steel Group is very happy with the acquisition of MF Emmen just before the publication of this annual report. MF Emmen’s design and production experience in infrastructure, recycling and industry fits in seamlessly with Nauta’s extensive production facilities in Heeg.

In 2020, Nauta and MF Emmen will jointly start the renovation of the Follega bridge. We are the main contractor for the entire bridge, the electrical installations and the civil works. The perfect kick-off for a successful collaboration, which we will also continue in the field of industry and recycling technology. With new recycling installations, we will from now on also (re)construct buildings, if required

As in previous years, GB Steel Group has a healthy order book. We are grateful to our clients for their confidence in us. We can build data centres, high-voltage substations and car parks to our heart’s content. Vossebelt’s tippers and containers are also frequently purchased; the planning for 2020 is almost full. Although hydraulic engineering is still struggling, regular clients from the industry appreciate Nauta Heeg for its flexibility and extensive possibilities and expertise in production technology. Finally, MF Emmen also started the year with a good order book, mainly with large orders in recycling technology. There are also indications that the infrastructure will continue to pick up.