AECM Annual Event -Istanbul 2014

1. 17.10.2014
1
Internationalisation
of SMEs – a case study
Remzi Simsek, CEO, GSW Maschinenbau
GmbH / Germany and Turkey
Guy Selbherr, Member of Board,
Bürgschaftsbank Baden-Württemberg

2. 17.10.2014
2
Baden-Württemberg in a Nutshell
 Population:
10,51 million
(= 13 % of Germany)
 Surface:
35.752 km²
(= 10 % of Germany)
 Capital:
Stuttgart
 Unemployment Rate:
4,1% (2013)
 GDP: EUR billion 398,5
 Strengh: strong export orientation
 Flagship branches: automobile
production and mechanical and
electrical engineering

3. 17.10.2014
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Baden-Württemberg´s population is international
 26% of the population has a migration background
 38% of the population of Stuttgart has migration background (Berlin only: 24%)
 Main groups: 23 % with turkish routs (> 508.000)  high proportion of entrepreneurs
(economic data)

4. 17.10.2014
4
Example financing innovation
GSW Maschinenbau GmbH in
Waibstadt, Germany
 founded 1990 / employees > 100
 project: together with his housebank and the
guarantee bank Remzi Simsek finances two R
& D projects in Germany.
 1. development of highly durable parts for
powerful and energy efficient wood presses
 2. development of a new process to treat
large components in V4a stainless steel
 the innovation was supposed to be financed
out of cash flow / equity. But it has been
financed with a guaranteed innovation loan in
order to use the liquidity to realise production
in Izmir

5. 17.10.2014
5
Trend since 2008 and characteristics
Year Number of
applications
Loans/
participations
€ 000s
Guarantees
€ 000s
2008 2,425 571,101.8 359,598.1
2009 3,141 707,232.7 433,330.1
2010 2,992 670,387.5 420,203.0
2011 2,832 524,544.8 325,028.0
2012 2,831 557,696.1 344,274.6
2013 2,847 602,525,9 359,435.5
 35 % of all guarantees
(number) in Germany
 Projects limited to investments
in Baden-Württemberg due to
counter-guarantee (26 %)
 No direct option to provide
guarantees for investments in
other countries for own clients
 High number of exportoriented
companies producing mainly
in other EU-countries

6. 17.10.2014
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What are the lessons to be learnt?
 an international perspective on guarantees for companies producing in
different countries is needed
 we need a close cooperation with local guarantee institutions between
AECM Members
 where local guarantee may not be applicable (e.g. german bank) a new
approach with EU-Financial Instruments could be part of a solution
 we applied for a new program under InnovFin to fill this gap