"Continuity and development must not exclude each other, on the contrary, achieving a balance between the two is a guarantee of business success," explains Reinhard Kuge, managing partner of Faubel & Co. Nachfolger. The 158-year-old company has been run by master printer Reinhard Kuge since 1982.

Thanks to his skillful management, Faubel has now become one of the leading system providers of booklet labels and custom labels. Today, it employs more than 160 people, including 20 trainees and apprentices.

At the end of 2012, the company had to be restructured following the departure of one of its shareholders, M. Bretschneider. Instead of integrating external partners into the company, the Kuge family decided to take over all the shares.

"The decision was made together with my wife and our sons. Faubel is a typical medium-sized enterprise and there is more to it than just dry figures – for example, our social responsibility as employers."

The next generation of the Kuge family is already taking an active part in the business. Besides Reinhard Kuge and Frank Ludwig, the technical manager, Martin Kuge is now part of Faubel’s management.

2012: another successful year

How profitable continuity can be was also confirmed by the result for fiscal year 2012. Sales amounted to 21.1 million euros, equity was 66.5 percent, with a balance sheet total of 21.4 million euros, a return of 14.3 percent and an EBITA of 30.6 percent.

"To us, these figures are extremely positive as they prove how sound our management is," Reinhard Kuge said.

Ambitious targets for 2013

Sales are expected to reach 22m euros in the current fiscal year. Growth should not be limited to revenues, additional staff shall be brought in, too, mainly by offering permanent positions to trainees and apprentices.

Expanding our Melsungen facilities

In the future, Faubel’s facilities will have to grow to match full order books and a larger staff. "The space we currently have at our disposal is fully utilized, that’s why we are planning to expand our Melsungen facilities in the next few years," the managing partner explained.

No growth without export

The products of the company which is related to the printing, paper, film and foil converting industries, are in demand worldwide. Faubel has five sales offices in Europe and a sister company, Faubel Pharma Services, in the United States. Fortunately, Faubel’s export rate has been rising steadily in recent years. In 2011, 55% of its products were delivered abroad, while in 2012, it was already 61%. This trend is to be maintained and even rise to 65 percent this year.

Operating in the United States for the fourth year

Its sister company, Faubel Pharma Services, is to play a key role in achieving the company’s goals. Currently, its share in total sales is only 7%; however, a huge growth potential has been predicted for the years to come. "To us, the US market is very attractive and we intend to set up part of the production there by the end of this year," Reinhard Kuge added, commenting on further action.

Bound for Asia

Equally promising is the Asian market. In the coming months, a representative office will be set up at Faubel’s Shanghai operation in China. Many of its regular customers have been expanding across Asia, creating demand for high-quality and innovative products from Europe, This demand shall now be adequately met by a local company representative.

Focusing on new products

Innovative products are needed to tap new markets. That is why Faubel has its own product development unit in Melsungen covering the whole process from industrial design up to technical development. New products can arise from individual customer requirements or from internal, creative ideas.

Currently, several international patent applications are being filed for a variety of products developed by Faubel. These patents shall apply to Europe, the US, China and India.

"Besides, we want to widen our product portfolio by focusing on non-pharmaceutical products. A wider range will help us react to market changes in a better way," Reinhard Kuge concluded.