36 04 03 Kernaussage - Desarrollo Sostenible · MAN Nutzfahrzeuge is the biggest among the MAN...

Sustainability ReportMAN AG 2007/2008

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Sustainability ReportMAN AG2007/2008

MAN AktiengesellschaftLandsberger Straße 11080339 Munich, GermanyPhone +49. 89. 36098-0Fax +49. 89. 36098-250www.man.eu

E N G I N E E R I N G T H E F U T U R E – S I N C E 17 5 8

MAN Nutzfahrzeugeis the biggest among the MAN Group companies and one of the leading suppliers of commercial vehicles and transport solutions.− Trucks from 7.5 to 50 t for every application− Buses and coaches for regular services and

luxury tourist travel− All-in, all-round vehicle services− Vehicle, marine and industrial engines

MAN Dieselis the world leader in two-stroke marine main engines and among the leaders in the global market for large four-stroke diesel engines.− Two-stroke diesel engines for marine and power plant

applications− Four-stroke diesel engines for marine propulsion systems,

onboard power generation, and power plants− Combustion ignition and spark-ingited engines for stationary

power applications, on shore and offshore− Exhaust-driven turbochargers and propulsion systems− MAN Diesel PrimeServ: worldwide aftermarket services

MAN TURBOis among the worldwide leading manufacturers ofthermal turbomachines; it has production plants in Germany, Switzerland, and Italy.− Broad product range of compressors, turbines, and chemical

reactors− Engineering, manufacture, installation and servicing of

complete machine lines and complexes for the oil and gas sector, primary matrials industry, and for power generation

− Worldwide unique center for assembling testing machine lines of up to 1,000 t

MAN Ferrostaalis a worldwide supplier of industrial services.− Foremost prime contractor for international petrochemical,

oil and gas, energy, and fuel complexes. Project development, project management and financing arrangements for turnkey industrial plants.

− Sales and service organization for manufacturers of transport, infrastructure, printing and specialty equipment. Automotive industry services: just-in-sequence preassembly of complete modules.

− Service and sales platform for the MAN Group.

The MAN Group

MAN Ferrostaal Group

¤ million 2005 2006

Order intake 1,745 1,982

Sales 1,414 1,379

Operating profit 64 119

Headcount at Dec. 31 4,563 4,290

ROS (%) 4.5 8.6

ROCE (%) 10.9 31.2

MAN Diesel Group

¤ million 2005 2006


Sales 1,666 1,802



ROS (%) 7.1 12.7

ROCE (%) 22.8 46.6

MAN TURBO Group

¤ million 2005 2006

Order intake 850 1,498

Sales 694 908



ROS (%) 6.2 7.8

ROCE (%) 18.5 30.5

MAN Nutzfahrzeuge Group

¤ million 2005 2006


Sales 7,377 8,685



ROS (%) 6.7 8.0

ROCE (%) 17.9 26.8

Contact persons

In our sustainability report, we provide the public—particularly our shareholders, customers and employees, as well as public authorities and the media—with information on our sustainabil-ity activities, and invite them to engage in constructive dialogue. You are welcome to contact us for any additional questions, sug-gestions and critique.

Corporate Communications:Wieland SchmitzLandsberger Strasse 11080339 Munich, GermanyPhone +49. 89. [email protected]

Environmental and Safety Management:Georg StemberVogelweiherstrasse 3390441 Nuremberg, GermanyPhone +49. 911. [email protected]

Investor Relations:Silke Glitza-StambergerLandsberger Strasse 11080339 Munich, GermanyPhone +49. 89. [email protected]

Human Resources:Jörg SchwitallaLandsberger Strasse 11080339 Munich, GermanyPhone +49. 89. [email protected]

IMpRINT

publisher:MAN AktiengesellschaftWieland SchmitzCorporate CommunicationsLandsberger Strasse 110

Editorial Department:Inés Gutiérrez (resp.) Phone +49. 89. 36098-357Georg Stember

publisher: BurdaYukom Publishing GmbH Konrad-Zuse-Platz 11, 81829 Munich, Germany, Phone +49. 89. 30620-0

Editors: Wolfgang Miller (resp.), Timm Saalbach, Marlies Viktorin (Managing Editor)

Editors, International Edition: Patricia Preston, Asa C. Tomash

Graphics: Heike Nachbaur, Blasius Thätter (Art Director)

Images: Elke Latinovic

production: Wolfram Götz (resp.), Franz Kantner, Cornelia Sauer

photos: p. 2, p. 12–16, p. 22, p. 26–31, p. 38–43, p. 50–53: Hauke Dressler; p. 5: Andreas Pohlmann/MAN; p. 10, p. 58: Golden Section Graphics; p. 25: Roman Klonek; p. 37: Erika Koch/corbis; p. 46: Enker/laif; p. 47: contrasto/ laif, Klaus Lefebvre/Theater Oberhausen; p. 49: Harmsbergung; all other MAN

printer: Pinsker Druck und Medien, Pinskerstrasse 1, 84048 Mainburg, Germany

The entire 2007/2008 Sustainability Report of MAN AG can be downloaded as a PDF document from www.man.eu. It is also available in German.

Our Products: less consumption, fewer toxic emissions, alternative energies

Our Processes: flexibility with global quality standards

Our Responsibility: new energies, new markets

Our Employees: jobs for the future

Technology to Benefit Nature

12 38Developing hybrid engines for citybuses: Stefan Kerschl, head ofAlternative Drives Development at MAN Nutzfahrzeuge

Advancing economic growth of theCaribbean island nation: RampersadMotilal, CEO of Methanol HoldingsTrinidad Limited

50 26 Passing on expertise to his colleagues: Gerd-Ulrich Woelk, senior partner at MAN TURBO

Looking after the optimization ofprocesses: Hans-Otto Jeske, headof technology at MAN TURBO

3

CoverThe MAN GroupContact

PrefaceSummaryContentsMy Point of View – Foreword by Håkan SamuelssonCorporate Success – Sustainable Growth Corporate Governance – Rules for ManagementCorporate Leadership – Dealing with Risks

MagazineTechnology for the Benefit of NatureThe MAN Energy Map

Our Products Report: Environmentally Friendly Buses for Clean Cities In Toxic Emissions, Every Gram MattersSustained Drop in ConsumptionNews

Our Processes Report: Production Between High-Tech and Manual WorkWorldwide Quality Standards Under the MAN ArchNews

Our ResponsibilityReport: Growth Under Palm TreesNew Energies, New MarketsNews

Our EmployeesReport: When Generations Come TogetherWorkplace Development for AllProfessional Drive and Parental JoysNews

Management ReportManagement Report on Sustainability Selected Consolidated CompaniesGlossaryContact Persons, Imprint

CONTENTS

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4I PREFACE MY POINT OF VIEW

Arisen from what was once the St. Antony metalworks inGermany’s industrial Ruhr region, MAN celebrates its250th birthday in 2008. With this long history, the MANGroup today is one of the veteran German industrial enterprises: 250 years of experience, expert know-howand skills, 250 years of technology and progress, 250 yearsof reliability, earning power and economic success. At the same time, this history is also the expression of sus-tainable corporate management, without which MANwould never have been able to cope with the many dras-tic changes and challenges of the past decades.

Because of this history, we have the obligation to makesustainable corporate management a yardstick for todayand for tomorrow. Economic success is the central factorfor the future of the MAN company. Being sustainablysuccessful also means safeguarding the conditions forprofitability in the future. These conditions are not juststamped by economic factors but also depend on ecolog-ical and social issues. Only in an intact environment andwith societal acceptance of what we do, were we able tosuccessfully operate in the past and will we be profitable in the future.

Due to the alarming reports that have recently reachedthe public, the climate debate has moved back to the cen-ter of sustainability discussions. As a company with itscore competence in Transport-related Engineering, weare aware that we have a particular responsibility. It is theaim of our sustainable corporate management strategyto combine the requirements of a mobile society and anincreasingly global, transport-focused economy with environmental conservation and the sparing use of re-sources. It is essential to do justice to both sides. Onlythen does the MAN Group earn social acceptance.

The endeavor to link ecology and economics, thus en-suring social acceptance, is certainly nothing new forMAN. It especially applies to CO2 emissions, which playa major part in current discussions about climatechange. We are investing a large percentage of our re-search and development budget in improving the eco-efficiency of our products, while at the same time main-taining the highest standards of technical quality. Hereare just a few examples of the innovative strength thatis oriented toward sustainability: In the commercial

Ladies and Gentlemen,

vehicles sector we are reaching ambitious environmen-tal targets with TGS and TGX truck series. We are inten-sively continuing the ongoing development of utilizedCommon Rail engines according to the future emis-sions standards and will offer these new engines to themarket as soon as possible. With their low consumptionof fuel and lubricants, our engines are among the mostenvironmentally friendly and economical drives avail-able for commercial vehicles anywhere. In our ship engines we also have accomplished further improve-ments: Equipped with electronic controls and CommonRail technology, these large-scale diesel engines con-sume about a quarter less fuel today than they did 25 years ago, with decidedly lower emissions levels, andare thus equipped to meet the increasingly stringent re-quirements of the International Maritime Organization(IMO). In the turbo engine sector, we own key compo-nents of this technology to produce synthetic diesel fuels and CO2-neutral fuel from renewable energysources. This indicates an attractive future market thatcombines ecological and economic factors. In addition, we joined the international 3C (Combat Climate Change)initiative in 2007, which is dedicated to the reduction ofenvironmentally damaging emissions worldwide.

As for social issues, we have also achieved progress in theyears that are behind us. Our degree of training, whichfar exceeds our own internal requirements, offers youngpeople the chance to enter highly qualified professions.We have likewise extended our involvement with col-leges and universities, to improve the educational op-portunities of young people, while at the same time cre-ating top-ranking staff for the job market. Finally we aredeveloping new approaches for enhancing the loyalty ofour employees to the company. To offer highly qualifiedwomen even better opportunities in the future, we havefocused greatly on issues such as child care and work-lifebalance. We have also committed ourselves to making asignificant increase in the number of women in execu-tive positions, which is still low today. Our recently re-drafted and updated corporate guiding principles defineour responsibilities toward our principal stakeholders—customers, capital grantors, our employees and society.This vision is based on our traditional corporate values:reliability, innovation, dynamic strength and openness.This corporate vision is conveyed by a Code of Conduct

that is binding for all employees of the MAN Group. The basic conditions that govern our actions, as definedin the guiding principles, are described in greater detailby the Code of Conduct, which shows how they are to beimplemented in our daily working routine. A Compli-ance Board, supported by external ombudspeople, moni-tors adherence to these behavioral guidelines. With thesetools, we continuously ensure the social acceptability ofour business activities.

These few examples indicate that we take our strategy of sustainable corporate management very seriously.This strategy is sustained by our industrial governancemanagement concept, which underlines our commit-ment to a contemporary corporate culture. You will find detailed examples, figures and facts about our sus-tainability policies in the pages that follow. This sustain-ability report shows that we continue to keep track ofenvironmental and social issues on an ongoing basis. At the same time, we see this report as a commitment to our strategy of sustainable corporate management—a strategy that we will continue to follow in the future.

For we can only continue our success story in an intactsociety and a healthy environment. To this end, we re-quire the trust of our stakeholders. We are convincedthat based on this strategy, MAN will continue to operatesustainably in the years to come.

Sincerely,

Håkan Samuelsson,Chairman of the Executive Board,MAN AG

Håkan Samuelsson,

Chairman of the Executive Board

6I PREFACE CORPORATE SUCCESS

The MAN Group is one of the leading engineering enter-prises in Europe. Our key competencies are commercialvehicles, diesel engines, turbo machinery and related in-dustrial services. At the top is the head office of theGroup, the MAN Aktiengesellschaft. In their variousmarkets, the companies of the MAN Group are all in thetop three positions. MAN has more than 50,000 em-ployees in about 120 countries around the world.

Responsibility for the strategic management of the MAN Group rests with the Executive Board. Aside fromthe Chairman and CFO, this includes representativesfrom all of MAN’s business divisions. Its task consists ofthe Group’s development and its overall strategy. Eachbusiness division must continue to develop independ-ently, and must measure itself against the strongestcompetitor in its own market. The various units have re-turn targets that they are obligated to reach, during theaverage duration of an economic cycle. Losses are nottolerated. In addition, there is no cross-subsidizationamong the business divisions.

The most important aim of our sustainable corporatemanagement strategy is to achieve a stable and future-oriented earnings situation. In the past several years, the MAN Group has achieved record results. Making allowances for special payments, return on sales ex-ceeded 8 percent in 2006, for example. We are aiming to reach the same target in the years to come. In thepast, we have succeeded in raising our earnings before

SUSTAINABLE GROWTH

tax (including earnings resulting from special opera-tions) on a continuous basis. This development provesthat we are on the right path, both with the ongoing improvement of our management tools and with ourfuture-oriented portfolio policy. It is all the more im-portant that we should ensure the stability of our earn-ings situation in the future, so as to maintain maxi-mum independence in case of any economicturbulences that may arise.

The continued internationalization of the MAN Groupplays an important part in positioning us to meet thefuture. In past years, orders from abroad have grown toabout 75 percent of orders overall, and it is a growingtendency. We will continue to focus on the internationalmarket. The proportion of employees working for for-eign subsidiaries rose from just under 34 percent in2001 to around 42 percent in the year 2007. Here againthe trend clearly points to international expansion. Weare focusing on increasing the volume of our sales rev-enue, while at the same time improving the operationalperformance of all corporate business units.

In 2006 our return on sales reached 8.5 percent, the growth inturnover 10 percent. Internationalization is being advanced on an ongoing basis. MAN stock is performing exceptionally well.

Key figures of the MAN Group from 2002 to 2006 (consolidated)

Millions of € 2006 2005 2004 2003 2002

Incoming orders 16,567 14,338 15,645 13,744 15,720

Sales 1) (Domestic and abroad) 13,049 11,379 14,038 13,546 16,040

Operative result 2) 1,105 674 557 383 324

Employees (Figure as of December 31) 50,290 49,161 59,008 64,158 75,054

Return on Sales (%) 8.5 5.9 4.0 2.8 2.0

Return on Capital Employed (%) 28.0 19.1 13.0 8.4 7.1

1) Altered sales balancing of commercial vehicle sales with return obligation as “Operating Lease,” beginning in 20042) 2006 including bonus of €0.50 per share

7

For the future, we aim to continue to strengthen our keyareas of business. Besides growth on the basis of our ownresources, we do not exclude the possibility of additionalpartnerships or acquisitions. We are assuming that injust a few years the MAN Group will be even bigger, moreprofitable and more international in its activities on theglobal market. Provided that the economy remains sta-ble, we anticipate a continuing strong demand for ourproducts and services in coming years. We have set newand ambitious targets for our key figures: Return onSales (ROS) must now reach 8.5 percent, Return on Capi-tal Employed (ROCE) must exceed the 22 percent mark.

In consultation with the Executive Board, the followingstrategic focal points have been set for the various busi-ness areas in the years between now and 2010:

• Commercial Vehicles: restructuring of the bus sectoras well as light and medium-sized trucks; reducedproduct complexity and higher productivity

• Diesel Engines: improving the production network

• Turbo Machinery: improvement of internal processes,and extension of the services business

• Industrial Services: achieving a turnaround in the sec-tors currently showing unsatisfactory performance.

In addition we hope to continue growing in all divisionsby extending our after-sales services. At the same time,we continue to pursue research and development in theinterest of a sustainable product policy in all productivedivisions of the company. We have reserved about 3 percent of sales revenue for research and developmentin the coming years.

We are convinced that by setting ourselves these ambi-tious targets we are tackling the right challenges, so thatall our stakeholders can continue to be satisfied with theperformance and key statistics of the MAN Group in thefuture. The long-term planning of a secure earnings situ-ation is an important part of our strategy of sustainablecorporate management.

The MAN stockThe stock of the MAN Group is represented on all sevenGerman stock exchanges, as well as on Xetra. MAN is amember of the German stock exchange Dax, amongothers, which measures the performance of the 30 mostimportant German companies with a stock exchangelisting. Here the MAN stock performed better than theDax average. In the past 10 years, investment in MANcommon stock generated an annual return overall of17.1 percent, thus achieving better added value than theDax as a whole (+ 8.6 percent) and also improving onthe DJ Euro Stoxx (+ 11.0 percent). Among the criticalfactors for this achievement were the significantly im-proved business results of all business areas, as well asthe consistent focus of our corporate portfolio onTransport-related Engineering.

In the first half of 2007, the Dax registered price in-creases of around 21 percent. Given these favorablemarket conditions, our common stock achieved an increase from €38.30, or 56 percent, to €106.76 betweenJanuary 1 and June 30, 2007. This made the MAN stockthe leader in terms of Dax performance in the first halfof 2007.

Based on scattered holdings amounting to 70.1 percent,the index-relevant market capitalization of MAN AG ex-ceeded €10 billion as of June 30, 2007. As a result, MANoccupied 20th place in the Dax ranking list at the end ofthe quarter, having been in 23rd place at the end of theprevious quarter.

We will continue to pursue a policy of transparent in-vestor relations in the future. In this way we hope toboost the confidence of investors, analysts and the gen-eral public in the MAN Group.

8I PREFACE CORPORATE GOVERNANCE

The strategy of sustainable corporate management in-cludes our Corporate Governance, namely transparentmanagement and control of our company. CorporateGovernance is a prerequisite for the effective and trustfulpartnership with our stakeholders.

The German Corporate Governance Code was created in2002 to coordinate the activities of different companiesin this area. An independent government committee reviews the Code every year and updates it whenever nec-essary. The Executive Board and Supervisory Board of theMAN Group submitted a declaration of conformity(based on § 161 of the Stock Corporation Act) in December2006. Consequently, MAN complies with all the recom-mendations of the German Corporate Governance Code.

Industrial Governance leadership conceptWe are continuously reviewing the Corporate Gover-nance practices of our company, and are improvingthem when need arises. The experience we have accu-mulated from both internal and external discussions inrecent years has been a contributory factor for our Industrial Governance management concept. This isbased on three pillars describing the most important re-sponsibilities of the MAN Group’s corporate head office:

• Definition of the strategy and corporate structures(Strategy and Structure)

• Definition of HR strategy, and making appointmentsto senior executive positions in the Group (LeadershipSupply)

• Planning and control of performance (Controlling).

Other aspects are: • Presentation of the company and its values to the

capital market and the general public • Risk management.

The Management Board of MAN AG established in 2005consists of the members of the Executive Board and oneadditional member of a divisional executive board. It ensures that all MAN divisions are adequately represent-ed at the highest management level, and accelerates

RULES FOR MANAGEMENT

communications both internally and externally. At thesame time, we increase transparency and reliability, fac-tors that our stakeholders depend on.

MAN’s shareholder structure has become more interna-tional. Foreign investors place particular importance onthe ability to gain rapid and current information oncompany’s performance and its Corporate Governancepractices. Through our Web site, as well as financial pub-lications and capital market conferences, we offer inter-ested parties and stakeholders the opportunity to gain acurrent image of our company. In addition, we not onlygive press conferences for journalists and analysts everysix months, but also offer telephone conferences withone or more members of the Executive Board every timethe quarterly business results are announced. These dia-logues are helpful in building mutual trust.

In our Corporate Governance strategy—which is not justbased on the recommendations of the Corporate Gover-nance Code but exceeds it—we established guidelinesfor sustainable corporate management. Further details,for example those relating to the recent redefinition of remuneration levels for the Executive and SupervisoryBoards, is explained in our Annual Report.

The standards contained in the Corporate Governance Code formthe basis for a responsible management of the company. They aretransparent and focused on the creation of added value.

COMPLIANCE SYSTEM

In September 2007 MAN further strengthened its com-pliance system: The company appointed two externalombudspeople, whom employees can address confi-dentially and anonymously with regard to the com-pany. The attorneys Jan Olaf Leisner of Munich andAchim Bischoff of Duisburg both possess extensiveexperience in business and criminal law. They lendtheir support to the Compliance Board of MAN AG,which is responsible for detecting any activities in violation of the law at an early stage and introducingappropriate countermeasures.

NEW OMBUDSPEOPLE APPOINTED

9I PREFACE CORPORATE LEADERSHIP

We define risk as the danger that events, decisions or activities may prevent us from reaching our targets orsuccessfully pursuing our strategic aims. At the sametime, companies must be open to risks if they want to realistically exploit the opportunities offered by theglobal market. This calls for effective procedures to keepany risks associated with entrepreneurial activity to a minimum, while at the same time making the bestpossible use of the available opportunities.

Under the auspices of our risk management system, wehave analyzed the following critical areas:

• Market• Products• Processes• Employees• Finances

The framework and foundation of our risk manage-ment system is the Risk Management Manual, which is enforced throughout the entire Group. It forms a normative standard for all activities in question, and its fundamental specifications ensure that the riskmanagement system will be consistently understoodthroughout the company. The manual includes manda-tory regulations for the identification, analysis, evalua-tion and monitoring of all important risks. Based onthese principles, the various divisions are responsiblein a decentralized way for properly implementing therisk management system at the divisional level. Thisenables us to closely approach potential hazards, andimproves the likelihood that risks will be detected at an early stage.

Risk boards established throughout the Group We analyze the opportunities and risks facing the MANGroup on a quarterly basis. The Executive Board andCentral Controlling then evaluate the results at reviewmeetings. When the need arises, the responsible partieswill introduce appropriate countermeasures. Reports are regularly submitted to the Supervisory Board aboutthe risk situation of the MAN Group. This quarterly risk

DEALING WITH RISKS

assessment is carried out in all divisions. We have set uprisk boards in all of MAN’s divisions. The risk boardsfunction as central control and monitoring authorities.On the various boards, experts in the areas of finance,technology and law work on the task of identifying andassessing previously unknown risks. In addition, it is theresponsibility of the risk boards to continuously im-prove the existing procedures and instruments that aredesigned to avert possible risks.

Corporate revision and business auditors evaluate andmonitor the functionality of the risk management system on a regular basis, so as to ensure continuity, stability and independence.

Dynamic precautionsOn the basis of MAN’s established risk management sys-tem, no risks can be detected at the present time thatmight have permanent or significant negative effects on the MAN Group. Nevertheless, comprehensive pre-cautionary measures are an essential aspect of sustain-ability. For this reason, our risk management systems isa continuous and dynamic process. We are continuouslyoptimizing our systems, and adapt them to changingcircumstances as required. In our risk management system, we have developed a reliable set of tools for sus-tainable corporate management, which is designed toshield the MAN Group as effectively as possible againsteconomic loss and any other forms of damage with re-gard to products, processes or employees.

The approach to imponderables is the touchstone for businesssuccess. Aside from its 250 years of experience, the MAN Group relies on a tried-and-tested risk management system.

TECHNOLOGY FOR THE BENEFIT OF NATUREThe MAN Group develops products for the global growth markets transport, propulsion and energy. With a view to protecting the climate,the exploration of alternative drive systems and fuels plays a vital role.

Mobility and the energy supply of the fu-ture are a matter of concern for the entireMAN Group. All business divisions are

committed to the development and use of newtechnologies that spare resources and promoterenewable energies, tackling climate change atthe same time. As a system provider of commer-cial vehicles, diesel engines, turbo machinery andindustrial services, the MAN Group suppliesproducts and services for the global growth mar-kets transport, propulsion and energy. These ar-eas are developing more dynamically than ever—moving goods, people and capital on a large scale.

For one, the focus is on the limited availability offossil energy sources as the incentive for prefer-ably efficient transport methods as well as for theeconomical use in engines, turbo machinery andequipment. On the other hand, the use of renew-able sources of energy and the provision of thetechnologies needed for this purpose are assum-ing a pivotal role. This is because both the battleagainst climate change and the rising prices of energy are making alternative drive systems andfuels increasingly attractive.

Between economics and ecologyAll developments are positioned in the midst ofthe conflicting priorities of economics and ecolo-gy. Every business area is expected to achieve en-vironmentally relevant targets while attending tothe customers’ economic interests. Specifically de-signed for local public transport systems, MANNutzfahrzeuge offers a promising solution for thetransport and propulsion needs of the future—city buses with hybrid systems whereby an electri-cal engine and a combustion engine cooperate under one hood. In the area of long-distance trucktraffic, the new TGX V8 sets high standards in

terms of performance, aerodynamics, fuel con-sumption and emission values.

MAN Diesel scores with engines that not onlymove the world’s biggest container vessels or takeluxury liners to the most beautiful spots on theplanet, but also produce electricity in powerplants—even on the basis of cooking oil, if so de-sired. All two-stroke and four-stroke engines meetthe customers’ requirements concerning durabil-ity and reliable operation while also adhering to the applicable environmental regulations.

Boost in orders due to synthetic fuelsMAN TURBO has always been successful alongthe entire chain, from the extraction of oil andnatural gas to the transport of energy and finallyto subsequent processing. The order boost currently experienced especially by air separa-tion plants is a first, however. Besides the consis-tently growing steel industry in China, the singlemost important driving force is the productionof synthetic fuels from natural gas. Both thehuge turbo machinery of MAN TURBO and reactors of the subsidiary MAN DWE are used in these processes.

MAN Ferrostaal, an industrial service providerand general contractor in the field of plant engi-neering and construction, is reinforcing its focuson alternative resources. The latest example: a so-lar thermal pilot power plant in extremely sunnyAndalusia in the south of Spain. Based on the low-maintenance Fresnel technology, which can beoperated with standard components, this innova-tive energy project is scheduled to prove its effi-ciency and market maturity in practice as early asin 2008. Experts are predicting that the potentialof this technology is enormous.

II MAGAZINE

Energy transport: Every second vessel on

the oceans is powered by engines made by

MAN Diesel. Dual-fuel engines, which are par-

ticularly suitable for powering LNG (liquefied

natural gas) tankers, are setting new trends

for the transportation of fossil resources in the

future (page 19).

Tried-and-tested technology: MAN takes

part in the entire chain, from the extraction of

oil and natural gas to the transport of energy

through to subsequent processing. The

increased use of renewable energies raises

the demand for turbo machinery and chemi-

cal reactors (page 22).

Enhanced Oil Recovery (EOR): With a view to

using oil fields efficiently, the nitrogen pro-

duced in air separation plants is pumped

into the storage facilities with great pressure

to ensure that there is sufficient pressure for

the subsequent production.

Energy production: Power plants use

engines and turbines made by MAN. With

regards to chemical and petrochemical

processes as well as the production of syn-

thetic fuels, machines by MAN TURBO rep-

resent key equipment (page 44).

Vehicle technology: Sophisticated aerody-

namic truck cabs and vehicle bodies as

well as engines with state-of-the-art Common

Rail injection technology ensure that buses

and trucks by MAN Nutzfahrzeuge consume

less fuel to run much further (pages 18, 20).

Hybrid drive: The technology specifically

developed for city buses involves the cooper-

ation of an electrical and a combustion

engine. Due to the utilization of the energy

generated by braking, up to 25 percent of

fuel can be saved (page 12).

Power generated by the sun: As a specialist

for the engineering and construction of indus-

trial plants, MAN Ferrostaal is tapping a new

market with its commitment to solar thermal

power plants. By the year 2020, the costs

are to be reduced to the level of the price of

energy from fossil resources (page 45).

Greater efficiency: In order to keep the emis-

sions low and reduce the costs of operating

a plant or an engine, all of MAN’s research

and development departments are working

on increasing the efficiency of their products

(page 23).

CO2 Storage: Coal power plants are emitting

large amounts of climate-damaging carbon

dioxide. Currently, processes that allow for

filtering out the gas and subsequently storing

it underground are being tested. MAN TURBO

delivers the required technology.

II MAGAZINE OUR PRODUCTS

13

STEFAN KERSCHL, DEVELOPER OF HYBRID DRIVES“It is our goal to reach a fuel savings scale of some 30 percent.”

Stefan Kerschl heads Alternative Drives Development in the Advance Development department of MAN Nutzfahrzeuge in Munich.

circles, as if we were a rare species,”recalls Kerschl. He would not forgothe work in the special research de-partment. His expertise on the com-plex interaction of a hybrid drive’severy component, and of the poten-tial for improvements in this area,made him an interesting prospectfor MAN Nutzfahrzeuge where hehas worked as a project leader in theAdvance Development departmentsince the late 1990s.

Since those days Kerschl has notonly personally witnessed manytechnical advancements, but hasalso followed the media career of hybrid technology. If any drive tech-nology has taken to the limelight inrecent months, it most certainly washybrid technology. Even tabloids arenow reporting that Hollywood starssuch as George Clooney, CameronDiaz and Leonardo DiCaprio have a car equipped with a hybrid drive in the garage.

Hybrid drives in much demandEver since record prices at fuel sta-tions in North America have evokedgroans from consumers, the hybriddrive has experienced a major boom.According to market analysts Jato Dynamics, in 2006 almost 270,000hybrid models were registered in theUnited States. In Germany, hybridtechnology is also developing an in-creasing following. Almost one inthree consumers here is planning to

before being released again uponacceleration. Thus, the consumptionof diesel fuel can be perceptiblyreduced, while the environmentallydamaging carbon dioxide emissionsdecline by the same amount. In the age of the greenhouse effect,hybrid buses are gaining a new eco-logical importance.

Almost a life’s workThis morning Kerschl—who holds adoctorate in mechanical engineer-ing—pours over the schedule withSchlosser, checks the list of work-pieces and discusses the scope ofwork at hand. Schlosser’s team is fac-ing a good six months of work beforethe fully remodeled bus can be deliv-ered. “In the past, we have convertedbuses to natural gas and hydrogendrives,” says the workshop manager,indicating his many years of experi-ence. “But hybrid technology is con-siderably more complicated.”

40-year-old Kerschl has dealt withhybrid technology ever since his stu-dent days. As a research associate atthe Institute for Machine Elementsof the Technical University of Mu-nich he was a member of an interdis-ciplinary team in 2004 that com-prised six teaching chairs andworked on the development of a hybrid drive for a passenger car. “Wewere ahead of our time in those daysand often enough aroused amuse-ment in university and industry

T he bus of the future is suspend-ed at a height of one and a halfmeters above the shop floor of

the development department at MANNutzfahrzeuge. Securely jacked up onfour wheel grips, MAN’s Lion’s Cityawaits the shape of things to come.Each of the four sea-blue-painted min-icranes can hoist about five tons intothe air. The Lion’s City, so far MAN’smost successful urban bus model,weighs in at just short of 12 tons.

And a few more kilos may be added to that, when the plans discussed byStefan Kerschl and Josef Schlosser onthis particular morning are realized.The two have been working togetherfor a long time. Kerschl has been responsible for the development of alternative drives at the central Advance Development department of MAN Nutzfahrzeuge at the Munichplant since 2004. And Schlosser hasmanaged the shop floor where the hy-brid team, supervised by Kerschl, hasthe prototypes of new buses assem-bled or rebuilt for the last six years.

Two engines under the hood“We are refitting this Lion’s City withhybrid technology,” says Kerschl,explaining the reason for this morn-ing’s meeting. In hybrid technology,to put it simply, an electrical engineand a combustion engine are coop-erating. The electrical engine is fedby the energy first generated bybraking, then stored temporarily

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ENVIRONMENTALLY FRIENDLY BUSES FOR CLEAN CITIESHybrid drives manifest their environmental benefits especially in urban traffic. MAN is benefiting from decades of in-house research and can provide tangible results with its buses.

01 Long-time colleagues: Stefan Kerschl

and Josef Schlosser (left)

02 Part of a greater whole: the electrical

machine for auxiliaries

03 Looking for ideas to further reduce

fuel consumption and emissions

01

02

03

“definitely or very likely” acquire a hybrid vehicle upon their next carpurchase. That is according to a re-port carried by the weekly newspaperWelt am Sonntag in the early sum-mer of 2007, based on an Infratestsurvey of 1,000 drivers.

Hybrid drives offer the greatest bene-fits not on long-distance journeys, but in city traffic, where the constantalternation of acceleration and brak-ing is a typical feature. It is preciselythis which creates ideal conditions forthe recovery of braking energy.

To Eberhard Hipp, head of the Ad-vance Development department atMAN Nutzfahrzeuge, it comes as nosurprise that hybrid technology canoffer an alternative to more familiardrive concepts. “We began testing var-ious hybrid variants as long ago as the1970s.” Since then, hydraulic storageand mechanical energy-storage fly-wheels were among the exploredmethods; more recently the mainemphasis has been on the conversionand efficient storage of electricalpower. In the summer of 2007, MANwas already delivering the third gen-eration of its hybrid diesel bus, whichthe municipal transport organizationin Nuremberg is currently testing inits day-to-day services.

Ahead of the competitionDue to these decades of preliminarywork, MAN is ahead of the rest of thecommercial vehicles sector when itcomes to hybrid drive technology.That was aptly demonstrated in sum-mer 2007 in Helsinki, where themeeting of the International Associa-tion of Public Transport (UITP) tookplace. UITP is the world’s most im-portant organization for any entityinvolved in local public transport.

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(Enhanced Environmentally FriendlyVehicle) requirements—currently thehighest standard for exhaust emis-sions. The gears of the diesel enginedon’t drive the axle directly, but ratherpower a high-performance generator,which in turn feeds its output into twoelectrical engines. These two powerpackages are connected with the elec-trical storage system on the roof—theultracaps. Thus, the engines can besupplied with power either via thediesel engine or generator plus the energy-storage device, or through the energy-storage device alone.

Using just electricity for accelerationpresents a big advantage, Kerschl says:“The bus moves away from the stopwithout any noise and without emit-ting exhaust, which is better both forthe passengers and for the people wholive near bus stops.” The diesel engineis only started when there is a need forgreater power, when the driver appliesmore pressure on the accelerator.

Continuing to improve efficiencyTransport companies are showing a growing interest in this technolo-gy. “In trucks that are used for long-

distance transport, we are not yetseeing the use of hybrid technology,but I am convinced that it will estab-lish itself in city centers, especiallyin municipal buses, and perhapseven become standard,” emphasizesKerschl. In 2010, MAN Nutzfahrzeugeintends to deliver a first small seriesof hybrid buses. By then, Kerschland his team will have made theLion’s City Hybrid even more effi-cient and economical. The optimiza-tion of the drive components, andparticularly of the ultracap storagesystems, is proceeding rapidly. Theteam is also considering using asmaller diesel engine for hybrid vehicles. This is with a clear end in view: “We intend to reach a fuelsavings scale of some 30 percent,”says the developer.

The regular output phase of MAN’sserial production of hybrid buses is scheduled for 2011. By then, agood decade and a half of work will be lying behind Stefan Kerschl.“Our commitment to the environ-ment pays off in any event. And wewill definitely not run out of workin the time ahead of us.”

“We assume that at the moment thisvehicle can save 20 percent of fuel,depending on the use, and so cut car-bon dioxide emissions by the sameamount,” says development expertKerschl, explaining the major atten-tion that the bus attracted in Helsinkiand elsewhere. This benchmark forany comparison is “The best dieselengine that we are producing today.”

The experienced engineer harbors nodoubts whatsoever that the hybriddrive is an absolute must for regularbus services. Ever since the start ofhis engineering career, Kerschl hasbeen involved in the energy-wastingstop-and-go operations in urbantransport. Braking is a pure loss ofenergy, unavoidable though it maybe in traffic. When slowing down, theconsiderable energy of an accelerated12-ton bus is mostly converted intoheat, which dissipates without beingused—a challenge for an engineer.

Magic triangle in bus transportThat is not all, however. “In our devel-opment efforts, we are trying to reachseveral objectives at once,”says Kerschl.Aside from reduced energy consump-tion, these include a reduction in theoperating costs, lower noise levels andexhaust emissions as well as the in-creasing use of fossil fuel substitutes.In its diesel electric hybrid drive, MANrealizes this magic triangle of modernbus transport through the use of so-called ultracaps. These high-perform-ance condensers—12 modules ofwhich the MAN Lion’s City Hybridhouses under the roof hood—are ableto store the energy generated by thebrakes efficiently and rapidly. Yet theenergy-storage devices are not theonly special feature. A serially pro-duced Common Rail diesel engine isalso used, which measures up to EEV

HYBRID TECHNOLOGY

In MAN’s hybrid municipal bus, the gears of the serially produced Common Rail diesel engine don’t drive the axle directly, but ratherpower a high-performance generator, which in turn feeds its output intotwo electrical engines that are coupled by a summarizing gear. Theseare connected to the electrical storage system on the roof, the ultra-caps. The energy generated by braking is stored in these ultracaps. The electrical engines serve as generators, transforming the brakingenergy into electrical power for the next time the bus moves forward.Currently, the serially produced hybrid system of the MAN Lion’s CityHybrid allows for fuel savings of up to 25 percent.

SAVING FUEL WITH THE HELP OF ULTRACAPS

z

18II MAGAZINE OUR PRODUCTS

This incorporates an additional tank,from which the reducing agent AdBlue® is sprayed into the hotstream of exhaust air. AdBlue® is amixture of one-third urea and two-thirds water. The urea, as the activeagent, transforms the toxic nitric oxides into water and harmless ni-trogen. As a result, carbon dioxideemissions from a 40-ton truck,loaded on average with half its fullpayload, come to just 57 grams perton-kilometer. An average mid-rangecar, by contrast, with a payload of 0.5 tons, emits 326 grams of carbondioxide per kilometer and payloadton. But the SCR technique is a verycomplex solution for drivers. WhenEuro 5 goes into effect, MAN will al-ternatively offer engines that incor-porate internal features, (exhaust gas

system optimizes the combustionprocess in the engine combustionchamber, thus improving runningproperties and allowing reduced fuelconsumption and lower emissionlevels. To meet the requirements ofall EU member states, MAN offerstrucks with engines that comeequipped with an internal exhaustgas recirculation system. As early asEuro 3 introduction in 2000, MANwas the only commercial vehiclemanufacturer to supply this kind of technology. MAN combines thisinner engine solution with higher injection and charging pressures.As vehicles meeting Euro 5 standardsbenefit from reduced toll charges inGermany, almost all of MAN’s vehi-cles come equipped with SCR (Selec-tive Catalytic Reduction) technology.

F or a good decade and a half, theEuropean Community has beendefining new limiting values for

emissions with increasing frequency,such as for nitric oxides and soot.Meanwhile, a new generation of truckengines, which generally operate for about 20 years, can take seven orup to eight years to develop. MANNutzfahrzeuge copes with this situa-tion by continuous detail improve-ments. “Other than our responsibil-ity for the environment, it isenvironmental legislation that hasbecome the real driver behind enginedevelopment,” says Otto Schnitzer.As head of the V Engine Design de-partment at the Nuremberg plant ofMAN Nutzfahrzeuge, the engineerhas worked on the development ofseveral engine generations over thepast two decades.

80 percent less nitric oxideThe Euro 4 exhaust emission stan-dard went into effect in the fall of2005, with Euro 5 to follow in fall2008. Brussels is already ponderingnew limiting values, which should beintroduced in the early next decade.Under Euro 5, vehicles will be emit-ting more than 80 percent less nitricoxide and 97 percent fewer particlesthan in 1990. MAN Nutzfahrzeuge reacted early to these European reg-ulations, such as with its now estab-lished Common Rail engine plat-forms, that are continuously de-veloped further. This fuel injection

IN TOXIC EMISSIONS, EVERY GRAM MATTERSThe development of a new diesel engine generation takes up to eight years. And yet, MAN’s developers succeed in quickly finding new solutions to stay belowthe exhaust-gas limits that go into effect in continuously frequent intervals.

Development of exhaust limiting values, from EURO 0 to EURO 5

01988 1992 1995 2000 2005 2008

0 1 2 3 4 5

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

Particle limiting values in g/kWh Nitric oxide limiting values in g/kWh

1988 1992 1995 2000 2005 2008

Euro*

* Limit values for nitric acid and particles; values in the 13-level stationary cycle ESC

0 1 2 3 4 5Euro*

0

2

4

6

8

10

12

14

160.7

0.4

0.150.10

0.02 0.02

2008

14.4

9.0

7.0

5.0

3.52.0

19

recirculation and two-stage super-charging with intermediate cooling),which reach the same emission val-ues as SCR technology.

MAN engineers are already workingon solutions for car engines to meetthe even lower emission values of theEuro 6 standard. At the same time,they must find ways of coping with adilemma—namely that the cease-lessly dropping emission levels canresult in higher fuel consumption. In the case of nitric oxides, exhaustrecycling systems can lower the effi-ciency of the engine, which means aincreased use of diesel. “By combin-ing various approaches we will find a solution to this problem as well,”is the firm belief of Wolfgang Held,head of Engine Development at MAN Nutzfahrzeuge in Nuremberg.As for ship engines, the MAN Groupis also intently focused on reducingfuel consumption and exhaust emis-sions. The fact that ship diesel en-gines have higher specific emissionsthan truck engines when it comes to sulfur dioxide, nitric oxide and

particles, is not so much connectedto engine technology, but rather tothe heavy fuel oil utilized as a fuel.This heavy fuel oil is in fact a wasteproduct of refinery processing, andcontains a much higher percentageof sulfur dioxide and particles thanfiltered diesel. Ship engines accountfor more than 7 percent of sulfurdioxide emissions worldwide, as wellas 13 percent of nitric oxide emis-sions. Heavy fuel oil costs half theprice of diesel, however. And as com-bustible fuel costs add up to as muchas 80 percent of a ship’s operatingcosts, practically all shipping compa-nies use heavy fuel oil.

Fuel choice made by customersIn technical terms, ship aggregateswould have no problem running ondiesel fuel or biofuel, with a corre-spondingly lower rate of toxic emis-sions. The best example of this aredual-fuel engines, which can useheavy oil, diesel, biofuels or gas. Thisalternative primarily recommends itself for tankers carrying liquefiednatural gas (LNG). “Our engines canuse all kinds of fuel. In the end it is

for the customer to decide,” saysChristian Vogel, head of the MANDiesel department responsible for the design of four-stroke engines, em-phasizing the company’s technologi-cal versatility. To help the large-borediesel engines clean up their act, oneapproach tried by MAN has been afuel-water emulsion. The desalinatedwater that is added to the fuel lowersthe combustion temperature, and soreduces the formation of nitric oxide.

MAN Diesel is also researching theuse of SCR technology, which has already proven itself in commercialvehicles. This is only an option, how-ever, if fuels are used that contain lesssulfur than does heavy fuel oil. SCRtechnology alone can reduce nitricoxide emissions by as much as 80percent. Already today, MAN Diesel’sengines are within the IMO limitingvalues. But the company is not rest-ing on its laurels. To reduce emissionsand fuel consumption even further,MAN is engaged in a research projectnamed HERCULES in partnershipwith its competitor Wärtsilä, sup-ported by the European Commission.

GLOSSARY

IMO: Abbreviation for International Maritime Organization. IMO is anorganization of the United Nations, responsible for setting the limiting values for nitric oxides and sulfur dioxide emitted by ship engines.

World Bank: The World Bank sets standards for strict nitric oxide emissionvalues for stationary diesel power stations, which vary according to region.

Euro emission standards: Currently, commercial vehicles are subject to theEuro 4 standard; this will be replaced in the fall of 2008 by Euro 5, whichmanufacturers already regard as their standard. Euro 5 sets the limiting valuefor nitric oxide at two grams per kilowatt-hour (g/kWh); particles must notexceed a limiting value of 0.03 g/kWh. A Euro 6 standard is in the pipelinefor introduction in 2014, with detailed specifications not available yet.

THE MOST IMPORTANT STANDARDS FOR TOXIC EMISSIONS

INTERIM RESULT

Besides its endeavors to reduce toxicemissions, MAN is also working to lowernoise levels in engines and production.For example, MAN Nutzfahrzeuge is a committed member of the BavarianEnvironmental Pact. In one of the Pact’scurrent projects, MAN aims to reducethe noise limit values that have been inforce since 1995 for serially producedcommercial vehicles weighing more than 3.5 tons by one decibel, byOctober 2010 at latest. This meansachieving an acoustic optimization of the engine, machine units and com-ponents of vehicles, suitable for use ininner-city traffic above all.


How the vehicle is handled is anoth-er very important factor: With theMAN pro-driving program MAN has, for many years, been providingtraining to the drivers of manytrucking companies, including tipson economical driving. Due to thistraining, drivers have been able toreduce diesel consumption by upto 10 percent.

Optimized hybrid drive In distribution traffic and city busoperations, MAN Nutzfahrzeuge willsave even more fuel with its opti-mized hybrid drive. “If operatingconditions are at an optimum, wecan achieve energy savings of a max-imum of 25 to 30 percent with citybuses,” says CTO Karl-Viktor Schaller,describing the possible dimensions.MAN Nutzfahrzeuge intends to be-gin delivery of a first batch of hybrid buses in 2010, with series produc-tion to commence a year later.

For decades, MAN has also been suc-cessfully working on reducing fuelconsumption of large-bore dieselengines in ships. As a result, specificfuel consumption actually droppedby double-digit percentages sincethe early 1970s, while the fuel con-sumption of low-speed diesel en-gines of in excess of 200 grams perkWh declined to the current 155. Inthis sector again, MAN expects to achieve further potential throughtechnological progress. Another,

of thumb says that every single kiloless in weight not only reduces fuelconsumption but also the carbondioxide emissions per kilometer netload transported.

The drag coefficient (the co-called cw

value) was improved by up to 4 per-cent, which also reduces fuel con-sumption. Several measures con-tributed to this: The new design ofthe driver’s cab, aerodynamically optimized mirror housings, an inno-vative and patented roof spoiler, allthe way up to the modified A-pillar,which is the connection between thevehicle’s roof and the hood. “We cansee further potential for reductionsregarding all of these points,” com-ments TGX/TGS project managerStefan Knecht. There is a variety ofadditional, minor improvementscontributing to lower consumption.

Published by the Club of Romein the 1970s, the report “TheLimits to Growth,” announced

that the end of the petroleum erawould be reached in 2000. Al-though cars and ships are still powered by gasoline and diesel, andmineral oil products are used by thechemical industry. Oil will even beproduced in the decades to come —but at an ever-increasing cost. As a re-sult, the reduction of fuel consump-tion makes sense from an economicpoint of view as well as for environ-mental and climatic reasons.

Lower fuel consumption of trucks The issue of energy resources notonly impacts the further progress ofengine and transport development;according to the studies at hand,road-based freight traffic will remainnumber one among the means oftransportation over the next twodecades. “No other kind of land-based transport is as variable and ef-ficient in respect to freight traffic asthe truck,” says Walter Hell from theInstitute for Mobility Research inBerlin, explaining this outlook. Thesuccessful development progressingat MAN Nutzfahrzeuge is indicatedby the new truck series in the heavy-weight segment: TGX and TGS arefeaturing numerous improvements.Compared to its predecessor, MANengineers reduced the weight of thenew trucks by around 100 kg on thefront and rear axle. The general rule

SUSTAINED DROP IN CONSUMPTIONWith constantly improving technology, the MAN Group has been successful inreducing the fuel consumption of its diesel engines for years. MAN has long sincerecognized, however, that tomorrow’s fuels will be quite different from today’s.

Ship engines are more economical

1970 1980 1990 2000 2010

Specific fuel consumption in g/kWh

150

160

170

180

190

200

210

medium-speed low-speed

21

completely different developmentis set to impact fuel consumption of MAN engines: The provisions asregards the fuels themselves willchange. MAN considers itself pre-pared to meet future challenges:“Policy-makers can determine anytype of mandatory fuel. From a real-istic point of view, this means thatwe will, for quite some time, contin-ue to use diesel, with further refine-ments. In my opinion, within 30years we will have reached a share of renewable fuels of about 30 to 40 percent,” states Schaller. In thelong term, however, he can see a departure from gasoline, diesel andnatural gas.

First step: biodieselThe best-selling biogenic fuels in Germany are currently biodiesel and,with a few concessions, bioethanol.The acreage, however, for the cultiva-tion of rapeseed, the raw materialfrom which biodiesel is made, is re-stricted. For ecological reasons andbecause of the increasing competi-tion with acreage for the productionof foodstuffs, it is not really advisable

to encourage the further growth ofbiodiesel. The mineral oil and auto-motive industries are therefore ad-justing to the so-called second gener-ation of biogenic fuels, referred to byexperts as biomass-to-liquids (BTL)fuels (see box).

Following its conversion, this fuel ofthe future, also referred to asSundiesel, has a far higher energycontent than either biodiesel orbioethanol. The MAN Group consid-ers the BTL fuels to be a promisingfuture area of operation: MAN Ferrostaal is currently positioning itself in this field and will executethe construction of correspondingsystems as general contractor in the future . Furthermore, with its com-pressors, turbines and reactors, MANTURBO’s portfolio contains the mostimportant components, withoutwhich a BTL refinery cannot operate.

Driver of future growth: hydrogen MAN is also testing the other fuel ofthe future, namely hydrogen. For re-search purposes, since as early as1999, MAN Nutzfahrzeuge has been

gaining experience with 14 hydrogen-powered buses that are operating ona regular schedule for the municipaltransport services in Berlin (BVG).With regard to the utilized technolo-gy, MAN relies on the hydrogen com-bustion engine. This certainly doesnot come as a surprise to MatthiasAltmann of Ludwig-Bölkow-System-technik GmbH: “With the expertiseMAN has assembled throughout itsmany years of engine development,it is simply a matter of course to de-velop a combustion engine for hy-drogen, after developing drives fordiesel and natural gas.”

Driving the future: hydrogenYet as long as the hydrogen used isnot derived from renewable sourcesof energy but, for example, from fos-sil natural gas, it does not present anecologically viable alternative to thefuels currently utilized. Only if hy-drogen could be obtained from inex-haustible sources, such as sun, windor hydropower, would it present thebest possible choice, ecologicallyspeaking. Most experts, however, expect that this will not come trueuntil the far-away future.

BIOGENIC FUELS

The large-scale production of second-generation biological fuels is feasi-ble from a technological point of view and one of the most promisingoptions currently recognized in the fuel sector. A current study performedby dena, the German Energy Agency, and commissioned by an industrialand political syndicate, has come to this conclusion. Another outcome of this study: there is sufficient biomass available in Germany to actuallycover 20 percent of current fuel consumption with BTL. Initial systems of this type can already be realized with the technology currently avail-able. The study indicates that the costs for the production of one liter of BTL fuel can be reduced to less than € 0.80, should the potential foroptimization be exploited.

GREAT POTENTIAL FOR BTL (BIOMASS-TO-LIQUIDS)

A resolution passed by the 25 Europeanheads of state and government providesfor a 10 percent share of biogenic fuelsin overall consumption by the year 2020.The operators of biofuel system stand tobenefit from this. MAN Ferrostaal hasrecognized the potential inherent in thismarket and is constructing a biodieselplant in Poland as a general contractor.Production is to commence as early as2008. Another biodiesel plant is current-ly being constructed in the Netherlandsand is expected to commence operationin 2009, according to schedule.

INTERIM RESULT


Crude oil is becoming scarce andmore expensive, and emission stan-dards are getting stricter. The in-creasing awareness of these develop-ments allows MAN TURBO to enter a growth market with a future. Themechanical engineering specialistsupplies large-scale plants in Qatarwith key components for producing

synthetic liquid fuels known as gas-to-liquids (GTL). The basis for suchcomprehensive orders is the in-house center for the assembly andtesting of big machinery sets: Theguaranteed process safety and quali-ty were the primary reason why MANreceived the contract to construct 12 reactors for the facility in Qatar. In

addition, MAN compressors can beused to convert biomass into fuel(BTL)—one of the most promisingenergy sources of the future. MANFerrostaal is also responding to therising demand for biogenic fuels: The industrial service provider isbuilding turnkey biodiesel facilitiesin Poland and the Netherlands.

ALTERNATIVE FUELS

ENERGY SOURCES OF THE FUTURE

Gigantic turbines in the desert sand

of Qatar: MAN TURBO delivers the key

components for GTL.

23

MAN TURBO is working intensively on improving the transformation of energy in the steam turbine blade rows. The new blades are integratedinto the products in a step-by-step process and, depending on the model size and type, result in improvements of between four and sevenpercentage points. This modification is based on three-dimensionalmethods of calculation and state-of-the-art testing and measuring tech-nology. The steam turbines manufactured by MAN TURBO are used asdrivers for compressors or electric generators. For the operator, the benefit-expenditure ratio, i.e., the degree of efficiency, is an important parameter. A higher degree of efficiency allows for a reduced energy requirements, with outputs remaining the same.

IMPROVED ENERGY BALANCE

HIGHER STEAM TURBINE EFFICIENCY

TRAFFIC ASSISTANTS WITH FORESIGHT

The new electronic helpers from theinnovative Predevelopment depart-ment of MAN Nutzfahrzeuge arecalled traffic jam assistant, lanechange and turn-off assistant. Theycomplement the existing MAN safe-ty systems such as the ACC (Adap-tive Cruise Control) or the LGS (LaneGuard System). What these innova-tions have in common is that they

use sensors to monitor the immedi-ate surroundings of the driver—atechnology MAN is constantly work-ing on. In the future, the safety systems should become deployablewithin town borders as well as at lowspeeds and should be able to regu-late the braking process by takinginto account the freight in additionto weather and road conditions.

SAFETY THROUGH DRIVER ASSISTANCE SYSTEMS

EXHAUST TECHNOLOGY

CLIMATE PROTECTION ONBUS ROUTES IN THE HARZ

MAN D08 Common Rail: environmen-

tally friendly technology with 260 hp

Since 2007, six NEOMAN serialbuses with state-of-the-art exhausttechnology have completed thefleet of the transport associationWernigeröder Verkehrsbetriebe inGermany’s Harz region. The enter-prise is thus a pioneer in terms ofenvironmentally friendly buses.Four of the six vehicles are inter-urban versions of the MAN Lion’sCity model with natural gas en-gines. They are significantly clean-er than diesel-driven buses, asthey emit no soot particles. Theother two buses are MAN Lion’sCity M models, relying on the newMAN D08 Common Rail. Like thenatural gas engines, the 260 hpsix-cylinder diesel engine withcooled exhaust gas recirculationand dual turbo-charging complieswith the voluntary exhaust stan-dard EEV (Enhanced Environmen-tally Friendly Vehicle). It is evenstricter than the Euro 5 standard,which will take effect in 2008. Toreach these values without havingto inject an additional reducingagent such as AdBlue® (urea) intothe exhaust stream, NEOMANuses an electronically controlled,low-maintenance CRTec® particu-late filter, which absorbs up to 99percent of the particulate mass.


FIRST GAS ENGINE SANS SPARK PLUG

CREATIVE SPARK

Detailed PGI technology: The start-

up and ignition system ensures

efficient and clean combustion.

Since 2007, the German BiofuelQuota Act (BioKraft QuG) has madeit mandatory for mineral oil compa-nies to add a proportion of biofuelto conventional gasoline or diesel.Ecological fuels—such as biodieselmade from rapeseed—are pro-duced using renewable resources,are biologically degradable andcause a smaller amount of harmfulemissions when burned. Anotherobjective of the blending strategy isto decrease the dependence oncrude oil imports. According to the

European specification EN 590 fordiesel fuels, it is currently permittedto blend conventional diesel withup to 5 percent fatty acid methylester (FAME), and the aim is toraise this figure to 7 percent. Engines from MAN Nutzfahrzeugeare also equipped for a higherblending quota. In addition, MANNutzfahrzeuge is manufacturing engines designed for the exclusiveuse of biodiesel, but also stationaryengines for combined heat andpower (CHP) plants powered by

biogas. Second-generation biofuelssuch as BTL (biomass-to-liquids)fuels are also very compatible withMAN diesel engines.

With the new engine 32/40PGI, MANDiesel has managed to combine theadvantages of gasoline and dieselengines in a gas engine withoutspark plugs. The type designationPGI is abbreviated from Perfor-mance Gas Injection and describesthe novel start-up and ignition sys-tem: In the PGI ignition process, asmall quantity of gas is injected intoa pre-chamber inside the cylinderhead. There, the gas is ignited on thehot surface of an incandescentmantle, and the resulting ignitingflash shoots through drilled holesinto the main combustion chamber,

where the very lean gas-air-mixtureis waiting to be ignited. In contrastto gasoline engines, this technologycan withstand high intermediatepressures and raises the degree ofefficiency to values that are usuallyobtained only by diesel engines.This allows for an efficient and clean combustion process and de-creased emissions. The technologydoes not require an additional liq-uid ignition fuel. It was this criterionthat convinced the Russian energyprovider Gazprom: It has orderedtwo PGI engines for use in its powerplant in Moscow.

TRUCK ENGINES DESIGNED FOR BIOFUELBLENDING

INTERIM RESULT

Diesel engines from MAN Nutzfahrzeugeare equipped for raising the maximumbiodiesel blend from the current 5 to 7percent. Besides engines designed forthe exclusive use of biodiesel, MAN alsooffers stationary engines for combinedheat and power plants run on biogas.

25

At MAN Diesel, major progress wasmade with regard to the control sys-tem of large-bore diesel engines.The new engine management sys-tem “Safety and Control System onEngine” (SaCoS one) is entering thetest phase. Its advantage is that it isfitted directly to the engine. Thus,development renders expensivewiring and bulky switch cabinetsobsolete. SaCoS one is characterizedby modularity and flexibility. It fa-cilitates optimized control andmonitoring of all of MAN Diesel’sdifferent engine types, rangingfrom the Common Rail to the dual-fuel engine. As of August 2008, theengine series with the type designa-tion 32/44 CR will be equipped withthe new product development. Oth-er four-stroke type series will followsuit by early 2009.

CONTROL SYSTEM

ENGINE MANAGEMENT

Customer service on the seven seas can now be provided even quicker:Due to electronic sensors and a satellite connection, the experts of MANDiesel PrimeServ are able to service power plant and marine enginesfrom afar. The data exchange is conducted via a secure Internet connec-tion. Technicians and engineers recognize potential problems in timeand can intervene before costly downtimes occur. Engineers give advicefor the optimization of engine operations or what to do in the case of afailure. Common spare parts are usually found in the plant’s storage facil-ity, and missing components are delivered to the respective site locationanywhere in the world by MAN Diesel PrimeServ within 24 hours. If cus-tomers are interested in the online diagnosis option, technical prerequi-sites such as computer, modem and phone are checked and installedwhen applicable. The plan is for the service to be extended to four addi-tional MAN Diesel location besides Copenhagen and Augsburg.

QUICK ASSISTANCE ON THE HIGH SEASREMOTE MAINTENANCE

The proportion of German trucks

loaded with freight has risen continu-

ously over the past 10 years, with fewer

environmentally harmful empty trips.

The 80 percent mark has been

reached—just 20 percent are empty

trucks. According to the German auto-

motive association, VDA, this positive

development is the result of the efforts

of the forwarding agents and the

abolition of restrictive regulations.

The VDA does not see a connection

to Germany’s truck toll, however.

MORE FREIGHT ABOARDBETTER TRUCK LOAD FACTOR

HANS-OTTO JESKE, KEEPER OF TECHNOLOGY“To avoid errors, we are utilizing our laboratory expertise

far more today to increase the quality of production.”

Hans-Otto Jeske is a member of the executive board and the technical director of MAN TURBO in Oberhausen.

27II MAGAZINE OUR PROCESSES

production who are receiving impor-tant feedback on the ongoing opera-tion of the machines and hence ontheir level of efficiency, which is theultimate criterion for cost-effective-ness. In addition, any and all cases ofcustomer dissatisfaction are consis-tently analyzed and made transpar-ent to all relevant departments. Thisalso applies to subcontractors thatproduce substantial amounts of thesubsequent turbo machinery linesand have to constantly prove them-selves through quality controls.“That is the only way to eliminateweaknesses,” explains Jeske.

The lab as a shieldThe company’s own materials department also has a major shieldfunction. Depending on the servicelocation of the turbo machinery, thewater and hence also the steam qual-ity differ tremendously, for examplethe salt content. If the materials arenot designed for these different de-mands, the consequence might becorrosion of the materials—due topitting or large-scale. Detailed wateranalysis in advance helps to avoiddamage to the machines and henceoperational stoppages. “In order toexclude sources of error, we are uti-lizing our laboratory expertise farmore today to increase the quality ofproduction,” emphasizes Jeske. Thebooming economy in China as well as the development of additionalmarkets in the oil and gas industries

world. The packages—complex sys-tems made of compressors, turbines,and coolers as well as the necessaryinfrastructure—are constructed andtested at headquarters right on thetest bed for the subsequent place ofinstallation. “The provision of thistesting technology and safely mas-tering it was our ticket into theleague of megasystems,” says Jeske. This is a business segment with

tremendous potential, for cus-tomers keep demanding larger andheavier systems, to be used for theproduction of synthetic fuels as asource of energy for the future, forexample. To facilitate its continuousgrowth, MAN TURBO in Oberhausenis currently doubling the test bed ca-pacity. The enormous utilization de-mands testing several of these giantsat the same time.

No less important is continuous im-provement of special products fromthe Ruhr region, namely powerful axial compressors and turbines. Due to customer contacts that havebeen solidifying for years, it is notonly engineers in the development department but also engineers in

H is eyes sparkle and his lips re-veal a youthful smile. Technicaldirector Hans-Otto Jeske leads

the way through the plant halls ofMAN TURBO in Oberhausen with en-thusiasm. There are no questions hecan’t answer, and he knows produc-tion and every element from the in-side out. Listening to him and becom-ing immersed in the world of turbomachinery is actually fun. Specialproducts are produced here accordingto customer requests—they are theheart of large industrial plants wherethe highest demands are placed on re-liability and availability over a time of30 and up to 40 years.

Reorientation of the entire chain It is evident that the engineeringbuilding company fulfills these pa-rameters: the order books are filledto the brim. “Utilization reaching thelimits of our capacity requires reori-entation of the entire chain, fromdevelopment, through production,and right up to commissioning,” em-phasizes Jeske. This means that allMAN TURBO locations must becomeeven more specialized —based ontheir core competencies—to supplythe market with top quality for com-petitive prices in the shortest possi-ble time and not waste any resourcesin the process.

Giant turbo machinery sets weighingfrom 500 to 800 tons travel fromheadquarters in Oberhausen into the

PRODUCTION BETWEEN HIGH-TECH AND MANUAL WORKThe MAN Group is experiencing an unprecedented boom in orders. In order to meetthe market demands of today and be prepared for future fluctuations, the businessdivisions are optimizing the organization and the processes of production.

500–800tons is the weight of the turbo machinery

sets made up of compressors, turbines,

coolers and the included infrastructure.

01 Technical director Jeske trusts experi-

enced employees in production.

02 Balancing the rotor requires extreme

precision.

03 The modern laser measuring device

detects the most minuscule deviations.

04 Computer-controlled production of

the core components through a fully

automated blade mill.

are important drivers of the massiveincrease in demand for centrifugalcompressors, which MAN TURBOproduces at its Zurich location. Toachieve the high number of units, it is necessary to further reduce thetime from engineering to commis-sioning. “We can’t afford to lose orders because of excessively longdelivery times,” emphasizes UweLauber, head developer at MAN TURBO for Zurich and Berlin. Whatare we building on site in the future?What will we buy in addition? Theseare the most important questionsfor sustainable production in timesof globalization.

Deliberations on outsourcing At the moment, the answer is that rotating key components such as im-pellers and blades remain with thecompany. Casings can be outsourcedif it makes strategic sense. It is truethat the latter is an important com-

ponent of the machine and mustwithstand high loads, but casings arevery costly to produce. The largewelded constructions require a lot of manual work. Since many com-pressors are slated for the Asian mar-ket anyway, MAN TURBO decided infavor of local production. As of mid-2008, a new production plant locatedin China shall be producing variouscomponents of the compressorrange in the immediate market. Thekey components, namely engineer-ing and rotors, come from Europe.

For Laubner, the essential factors for international growth are thebundling of orders, the use of asmany of the same components aspossible in different models, as wellas more intensive standardizationand modularization. “We need a plat-form to respond quickly and still retain the ability to implement cus-tomer-specific requirements,” says

Lauber. In addition, it is necessary tospeed up development times to con-siderably increase productivity.

MAN Diesel redesigns productionCompletely utilized capacities anddelivery times that are increasinglydifficult to meet are challengingMAN Diesel, the MAN division forlarge diesel engines. To Uwe Hansult,director of the Production businessunit, the answer is obvious: “We willnot achieve our growth goals and thenumber of units demanded by themarket unless we restructure pro-duction.” The central issue in thiscase is redistribution of engine pro-duction to the locations in Augsburgin southern Germany, Frederikshavnin Denmark, and Saint-Nazaire inFrance. The assembly network is toachieve the goal by 2010 of produc-ing more than 500 engines itself foruse in marine propulsion and powergeneration. So far, the comparable

01

02

II MAGAZINE OUR PROCESSES

production capacity has amountedto approximately 300 engines.

The number of large four-stroke engines that the sales department is hoping for cannot be produced in Augsburg alone, because produc-tion is utilized to full capacity andthe possibilities for expansion atthat location are limited. In addi-tion, transporting the engines,which can weigh up to 260 tons, by truck over public roads to theclosest loading port in Heilbronn,Germany, is becoming increasinglycomplex, because the geographic location of the landlocked Swabiantown is quite unfavorable for ma-rine propulsion products.

In contrast, both Saint-Nazaire andFrederikshavn provide direct access to the Atlantic Ocean or the BalticSea, respectively. The route from the workshop to the shipping port

whence the engines can be sentaround the world does not presentan obstacle. By including those twolocations in the production networkfor large four-stroke engines, it isalso possible to specifically optimizethe model mix at these locations as well as optimally structure the as-sembly processes. The decision toconcentrate on fewer core compo-

nents in the on site production inthe future and to expand this is an-other element in the concept. Thecompetitiveness of MAN Diesel willbe reinforced and the technical basisfor expansion of the after-sales busi-ness is expanded.

International plant networkMAN Nutzfahrzeuge was once alsocharacterized by historically devel-oped production structures. This hasalso become history. The largest divi-sion of MAN AG is currently in thelast phase of thorough process mod-ernization with the goals of position-ing the plant network internationallyand organizing it in an integratedway, defining core competencies andalso identifying and eliminating re-dundancies in the processes.

One classic example is the recentconstruction of an assembly plant forheavy-duty trucks in Niepolomice in

03 04

INTERIM RESULT

The order boom at MAN TURBO pushedthe test bed capacities of the machinebuilder to its limits, for customers willonly accept machines that underwent afull functional test before delivery. Inorder to keep the tight deadlines, MANTURBO doubled its test bench area inOberhausen from 4,440 m2 to 8,840 m2

and in the Zurich plant from 1,000 m2

to 2,000 m2. These building measuresare scheduled for completion by thebeginning of 2008.

29

II MAGAZINE OUR PROCESSES

STRONG PARTNERS

SUPPLIER RELATIONSHIPS IS THE KEY TO SUCCESS

The close relationship to key sup-pliers is a guarantee for sustain-able business success among alldivisions of MAN AG. For theavailability and consistently highquality must be guaranteed for allpurchased parts in order to ensure reliability and a long service life for MAN products.

MAN NutzfahrzeugeMAN Nutzfahrzeuge is increasinglyfocusing on core competencies inits plant network, for example theexpansion of cab capacities inSteyr or engine production inNuremberg. This results in closeintegration and interaction withexperienced suppliers for parts ofproduction that were previouslymanaged internally.

MAN Diesel Besides its own production ofessential components, MAN Dieselis concentrating on the collabora-tion with external cooperation part-ners worldwide. Thus, a productionnetwork was established in 2006and 2007. In the future, importantsource materials and finished partswill be obtained from at least twosources in order to avoid delivery

bottlenecks and to compensate for order fluctuations. Ensuring thesupply is an important element forfurther growth.

MAN TURBOWell-filled order books focusesincreasing attention on the logis-tics chain at MAN TURBO. Insteadof relying on certification reports,the quality of local suppliers isscrutinized more closely on a personal basis. To comply withdelivery dates, MAN TURBO signsbinding framework contracts withpartners for raw materials such assteel, transmissions or clutches—essentially important componentsthat make up 50 percent of the products of MAN TURBO.

MAN FerrostaalThe industry service provider hasvery diversified experience as ageneral contractor for the con-ceptual design, financing andcompletion of industrial systems.Subcontractors supply the back-ing to also handle large orders.Furthermore, MAN Ferrostaal isoperating within MAN AG as asales platform for products andservices from all divisions.

Poland, close to Kraków. Halls with atotal floor space of 81,000 squaremeters are rising on a large site en-compassing 250,000 square meters.“They present one of the most mod-ern truck assembly sites in theworld,” marvels Marc Sielemann, CEOof MAN Trucks SP. zo.o in Poland and

z

30

project manager for the new con-struction. The decision for Krakówwas preceded by an extensive search.Infrastructure, costs and the avail-ability of workers as well as generallegal and economic conditions weretaken into consideration as much as finding the right balance between

logistics and personnel costs. Whilewages are dropping, the further eastone goes, the costs for transportingthe components that are to be as-sembled to the plant are increasing.“Kraków was our geographical opti-mum,” says Sielemann, summarizingthe outcome.

In addition, there was the fact thatMAN Nutzfahrzeuge has alreadygathered good experiences inPoland with its plants in Starachow-ice and Poznan. The new plant isviewed as an important componentof the company’s internationalgrowth strategy. The new produc-tion is characterized by lean logis-tics. During the assembly process,for example, one full and oneopened container are used. Onlywhen the latter is empty, will the replacement be rolled in. Eighty per-cent of the volume of parts is deliv-ered directly from the truck trailerto the belt, with only the remainderbeing put in storage.

Philosophy for the future The production processes were coor-dinated with the plants in Salzgitterand Munich. Kraków presented anopportunity for the German loca-tions to try out something new.Every potential process improve-ment was tested in the two Germanplants before being exported toPoland. Best practice sharing is alsothe philosophy for the future and acredo that applies to all divisions ofthe MAN Group to make targeteduse of resources that are continu-ously becoming scarcer. “In order to avoid waste in all forms, peopleand processes must form a unit,”says technical director Jeske, outlin-ing the absolute objective for a suc-cessful future per se.

A solid component: The casing

of a turbine is brought into the

correct position.


and the information flow from plantemployees through to executive levelmust be ensured. “We need standardsfor this as well,” says Schnell. “Similarto a timetable, everything is sched-uled—when the shift leader talks tothe plant engineer, and when the lat-ter meets the plant manager and soon.” This also has implications for theworks organization. A foreman with100 employees cannot possibly talkto them all regularly, so large teamsmust be reduced in size.

Mentoring plan at MAN TURBOTo support quality, MAN TURBO hasintroduced its own introduction planfor newcomers to the plant. So as tomake new members of staff trulyacquainted with the company, firstthere are cross-site workshops wherethey will be told what MAN TURBOstands for and what its Code of Con-duct is about. The second focus of theprogram is a mentoring plan. Mem-bers at the executive managementlevel are appointed, who look after thenewcomers as mentors. They sharetheir knowledge of daily plant rou-tines, and also give feedback to topmanagement about the needs of theirprotégés. This results in events orient-ed specifically around the needs ofthe new “turbos.”

“It’s an especially important thingthat new staff members will develop afeeling for our company,” says CarolaFink, head of personnel development

year 2000. Similar standards are in place at all 13 European produc-tion sites, though the requirementsvary on the level of fine detail. “Weare now combining the approach-es existing in all the plants,” saysSchnell. Heads of production there-fore meet at the various plants on a regular basis, analyzing plant-specific special characteristics, tolearn from one another.

The main focus of MNPS is not ontechnical improvements, but on theworkforce. Its constant willingness todevelop further is viewed as a drivingforce for innovation throughout thecompany. A change of thinking isexpected of management and staff:the emphasis no longer lies on theproduction of large quantities ofitems, but rather on the flexible pro-duction of different models on thesame manufacturing line. In addi-tion, rapid feedback about anydefects contributes to enhancedquality standards.

Such a change of mentality must beaccompanied by training courses andseminars. As for daily routine, com-munications are gaining importance,

T he MAN Group is recording anorder boom in new and grow-ing markets. Production must

adjust to this, with more resources,greater flexibility and additional pro-duction sites close to the markets.This includes safeguarding the quali-ty of MAN products—no matterwhere they may have originated.

At the moment, this means one thingabove all for MAN Nutzfahrzeuge:unified standards of production thatapply to all countries. MNPS, theMAN Nutzfahrzeuge Production Sys-tem, is designed to speed up produc-tion operations, minimize rejectsand improve the products overall. Inshort, it is a matter of product opti-mization. Yet MAN Nutzfahrzeugedoes not consider this a purely tech-nical project. “Our objectives can beachieved only if management andstaff are behind the production sys-tem and know how it works,” saysMarcus Schnell, head of ProductionSystems at MAN Nutzfahrzeuge. To this end, he and his departmentput together a 40-page MNPS book-let in 2007, which was distributed to 27,000 employees.

Plant-specific special featuresMNPS is not a new idea. It was devel-oped in the late 1990s at the Austri-an production location, in Steyr,Austria. The system had alreadybeen implemented in both Munichand Salzgitter, Germany, as of the

WORLDWIDE QUALITY STANDARDS UNDER THE MAN ARCHMAN products are sold and manufactured around the globe, with about 40 percent of MAN employees working outside Germany. Consistent standards in production and training guarantee a high level of quality—be it in Argentina, Denmark or Turkey.

27,000 Employees received the newly published

booklet on the guidelines for MNPS, the

MAN Nutzfahrzeuge Production System.

33

MNPS: THE MAN NUTZFAHRZEUGE PRODUCTION SYSTEM

BOOSTING PRODUCTIVITY ON THE JAPANESE MODEL

In Japan, “Kaizen” describes a business philosophy that emphasizes striv-ing for continuous improvement. There, it has significantly contributed toboosting productivity in automotive companies. The principle is one of thecentral components of MNPS, which as a driving force for innovation inthe company is more than just a program for process optimization.Essential to the success of MNPS are the commitment and skills of theworkforce. Changing their way of thinking is expected of them. Qualityassurance plays an even greater role, with the objective being a zero-error goal. In addition, the entire production process should be morespecifically focused on the customer’s current expectations. In thefuture, these determine cycle times and production sequences. The emphasis is no longer on the rapid production of high unit quanti-ties, but rather on flexible production. Instead of direct item costs, theoverall costs of the production process are what matters. Naturally, such a change of mentality cannot occur overnight. Thus, the motto for theimplementation of MNPS is “The journey is the reward.”

at MAN TURBO. The Fair Companyseal of quality awarded by the Ger-man business magazine karriere alsoproves that the Oberhausen-basedcompany is investing much effort in its management development. The seal is bestowed on companiesthat provide college graduates withreal future prospects in Germany aswell as abroad.

German-Danish exchangeAs a business unit with productionsites in five different countries, MANDiesel puts intercultural competencehigh on the agenda of its trainees. An indispensable part of its trainingis a three-week visit to the Danishplant in Copenhagen. “We hope thatthis stay abroad will above all im-prove their knowledge of English,”says Kaspar Fischer, head of MANDiesel’s training center in Augsburg.“These very young people must cope with being in a foreign country over

a period of three weeks.” At the sametime, this is also an exercise in inter-cultural contact for MAN Diesel’smanagement trainees. “Cooperationat the workplace is significantly lessformal in Denmark,” is the unilateralopinion of every single trainee. “It is quite normal, for example, to ad-dress even senior management on a first-name basis.

There is massive demand for the slotson the exchange program. The mostimportant selection criterion is theintended profession: An industrialmechanic, who is frequently sentabroad on installation projects,stands a very good chance. Set up in2003, the German-Danish project was awarded the “European Prize for Lifelong Learning” in 2007. MAN Ferrostaal, the industrial-servicesprovider in Essen, is also placing agreater emphasis on interculturalcompetence. Besides country-specific

briefings before foreign postings,there is a course in intercultural sen-sitivity for new staff members, whichwas kicked off in the fall of 2007. “Theaim is to make them more aware ofcultural differences,” says ReinholdSchramm, head of HR Abroad. “Previ-ously, our employees learned by trialand error, why should we always rein-vent the wheel?” The training helpsemployees to respectfully relate topeople with a different cultural back-ground —and to become aware ofwhat characterizes German cultureand distinguishes it from others.

Dual system in TurkeyThe progressive two-track Germantraining system has also been usedby MAN Nutzfahrzeuge to the bene-fit of its apprentices at MAN TürkiyeA. S. in Ankara. Considerable parts of the system were adopted at theTurkish production site. MANfounded a training workshop inAnkara in 1997, where trainees re-ceive teaching in technical and theoretical subjects three days aweek. In addition, they attend thetechnical college in Dikmen on twodays a week. At the end of the three-year training course, they will takethe trade test. At the moment, 88young people are taking part in thistraining program. The objective ofthe project is to meet MAN’s inter-nal needs for well-qualified special-ists. In the meantime, MAN has introduced a master craftsman’straining program in Ankara as well,based on the German model. Thecourse concludes with an examina-tion based on the criteria of the German Chamber of Industry andCommerce (IHK). The outcome of a German master craftsmen “madein Turkey” probably best symbolizesMAN’s role of a global employer.


By mid-2010 MAN Nutzfahrzeuge

will have at least 650 employees on

its payroll at the new Kraków plant.

Europe’s most modern commercial vehicles factory sits in Niepolomicenear Kraków. MAN Nutzfahrzeuge hasbeen turning out heavy trucks with aweight of more than 16 tons here sincesummer 2007. The plant operates ac-cording to the principles of lean andenvironmentally friendly production,based on highly efficient logistics andassembly processes—and efficiency

saves both energy and raw materials.80 percent of the needed parts volumeis delivered directly to the installationpoint on the assembly line; only 20percent is in interim storage. This min-imizes transport operations. Also, allvehicle chassis are painted with water-based paint in an environmentallyfriendly setting. The Kraków plant isnow MAN’s third production site in

Poland. Thus,the Eastern Europeancountry has developed into an impor-tant pillar of the international growthstrategy of MAN Nutzfahrzeuge. “Weassume that the markets in Eastern Europe and the CIS states, above all, are going to grow disproportionallyand we want to take part in that,”stresses Lars Wrebo, head of Produc-tion at MAN Nutzfahrzeuge.

TRUCK PRODUCTION IN POLAND

LEAN AND ECO-FRIENDLY

Fresh ideas, dynamic action, andawareness of quality and cost—suppliers offering all these attrib-utes are distinguished by MANNutzfahrzeuge once a year, withthe “Trucknology Supplier Award.”To select the prizewinner, suppli-ers are assessed under the cate-gories purchasing, quality, tech-nology and logistics. Exemplarypurchasing includes the terms andconditions of purchase and pay-ment but now extends to the sup-plier’s environmental managementas well. Socially irresponsible ac-tivities such as the exploitation ofchild labor are categorically reject-ed by MAN Nutzfahrzeuge and, as a precaution, ruled out throughindividual contracts, for eachcountry. Among the lucky 2006award winners are EmplFahrzeugwerk GmbH, FederalMogul Nürnberg GmbH and Guss Komponenten GmbH.

AWARDS

THE BEST SUPPLIERSPRESSURIZED AIR PRODUCTION

ENERGY SAVINGS BASED ON HEAT RECOVERY

Demonstration of a

diesel engine on the

company’s own test bed

at the parent plant

Augsburg of MAN

Diesel. Pressurized air is

indispensable here.

Environmentally compatible eco-nomic growth is the motto of theBavarian Environmental Pact,agreed upon by the State of Bavariaand more than 5,200 companies atthis time. MAN Nutzfahrzeuge hasbeen on board since the agreementwas first introduced in 1995. The ini-tial objectives were to expand test-ing of alternative combustible fuels,

and to offer training courses in eco-nomical driving for truck drivers. In2005, the partners extended theagreement a second time, formulat-ing new targets, continuously pur-sued by MAN Nutzfahrzeuge. Forexample, noise limit values for seri-ally produced commercial vehicleswith a total weight in excess of 3.5tons are to be reduced by a decibelby October 2010 at the latest. MAN Nutzfahrzeuge is also involvedin automotive manufacturer initia-tives that aim to optimize measuring

GROWING WITH NATURE

BAVARIAN ENVIRONMENTAL PACT

methods, product policies and man-agement systems, both in their owncompany as well as suppliers’, withenvironmental interests in mind.

In view of the increasing need for pressurized air, as well as other requirements of engine development, MAN Diesel is planning to installadditional rotary screw compressors which will be equipped with a heatrecovery system. Pressurized air is used at the Augsburg plant for trans-porting sand to the foundry, driving grinding plant and power screw-drivers, and for diesel engine testing on the test bed. It is the most ex-pensive form of energy involved in the production process, ahead ofelectrical power, process heat and natural gas. Yet the lost heat from the plant compressors is not wasted: It can be used to heat up water,such as water used in the showers. Initially, an analysis of the system, the network, the mode of operation and the relevant requirements wascarried out. This has confirmed that the current design and mode of operation are ideal The new systems are integrated in the overridingcontrol system, and are above all selected for maximum economy of energy consumption.


PLANT AND COMPANY FIRE DEPARTMENTS

HOT BUSINESSA total of 2,500 deployments—it’s a considerablenumber, yet these were not the only ones for the jointplant fire department of MAN Nutzfahrzeuge andMTU Aero Engines in Munich: In cooperation with thefire prevention volunteers, they take on additionalservices for the surrounding region as well. “About1,000 deployments cover the provision of emergencyservices,” is the estimate of Peter Simkaitis, who hasbeen head of the state-approved plant fire depart-ment since 1982, “or else technical support whenwater, oil or storms cause damage, or flooding re-sults from heavy rain.” The plant fire department hasbeen in existence since 1962. It currently consists of39 staff members, who are running shift operationsaround the clock.

Peter Wittmann, head of the plant fire department atMAN Diesel in Augsburg, also knows: “Our advan-tage is that when deployed to a plant we often knowmore than the public fire department, and thus canhandle the situation faster.” His 37-person emergencyteam is on duty for several companies: MAN Diesel,MAN Roland and MT Aerospace. Incorporated withthe general fire services, his team will respond to ma-jor emergencies—such as serious storm damage ormassive fires—but will also move out per the requestof the professional fire department, and provides theonly high-elevation basket car in the region.

The company fire department of MAN TURBO inOberhausen, on the other hand, is deployed onlywhen emergencies occur in the plant. “We had 34 de-ployments in 2006,” says Heerwart Schweers, head ofthe fire department. Besides the usual activities at theworks harbor, or deployment for oil spills and environ-mental matters or reports of fire, the firefighting teamalso acts in an advisory capacity. “We issue weldingpermits and offer instruction on how to handle fire extinguishers,” explains Schweers. The company fire department in Oberhausen now has 11 employ-ees, who work part-time for the turbine manufacturer.They can be reached via radio at any time.

01 Meeting of MAN fire

department command-

ers with a demonstra-

tion vehicle.

02 MAN Diesel’s plant fire

department rehearses

for a case of serious

emergency.

03 When snow caused

chaos in 2006, the

fire department also

provided general

emergency services.

01

02

03

MAN DIESEL

MAN DIESEL REGISTERS UTILIZED CHEMICALSREACH: EUROPEAN CHEMICALS LAW

The new European chemicals lawREACH stands for the registration,evaluation, authorization and restric-tion of chemical substances. Theregulation asks companies that im-port more than a ton of chemicalsannually to register them on a cen-tral database in the future. REACHhas been in force since June 1,2007, and is designed to improvesafety levels for human beings andthe environment. MAN Diesel cur-rently obtains its REACH products

almost exclusively within Europe,and therefore is a downstream user.“As we are likely to be using the rel-evant working materials for the in-tended use specified by the originalmanufacturer, registration will not bean unduly complicated business,”explains Holger Witte, responsiblefor Works Services at MAN Diesel.The producer of ship diesel enginesalso buys metals and alloys outsideof Europe—the metals in questionare therefore pre-registered.

ENVIRONMENTAL MANAGEMENT

INTENSIVE EXCHANGE OF INFORMATION

QUALITY MANAGEMENTINTEGRATED

SAFETY MANAGEMENT

ENVIRONMENTMANAGEMENT

RISKMANAGEMENT

Health protectionWork safety

Fire prevention

Data integrityEnvironmental protection

Data safetyPlant safety

Facility/machine protection

Danger defense

The integrated environmental manage-

ment system is based on the corporate

processes of MAN Nutzfahrzeuge.

Under REACH, all chemicals—even those

that have been in circulation for quite

some time—are subjected to risk testing.

To render its environmental conservation more effective, MAN Nutzfahrzeuge uses a management system that covers standards forquality, risk, and safety and environmental aspects. Its organization andprocedures are documented in a manual, and specifically formulated inguidelines and instructions that are mandatory for all employees. Overallresponsibility rests with the management board; the manager responsi-ble for production has been appointed as the officer for environmentalprotection. The duties, tasks and rights with regard to environmental andsafety factors have been delegated to the employees in charge. Regularmeetings of environmental officers coming from all business units, cen-tral departments and company sites provide the basis for an intensive exchange of information. The sites in Gustavsburg, Munich, Nuremberg,Salzgitter, Vienna, Steyr and Pilsting already have a certified environmen-tal management system, based on the ISO 14001 standard. Productionsites in Turkey and Poland are currently working to achieve this as well.

II MAGAZINE OUR RESPONSIBILITY

39

RAMPERSAD MOTILAL, PATRON OF ECONOMIC TRANSFORMATION“From my point of view, development does not mean the construction of fancy new

high-rises, but primarily one thing: educating the people of Trinidad and Tobago.”

Rampersad Motilal is CEO of Methanol Holdings (Trinidad) Ltd. (MHTL).


L eaning back in his plastic chair,Ian Farmer is relaxing. The air ishumid; even now, at five p.m.,

the temperature still hovers above 30degrees. Yet Farmer is not affected byTrinidad’s sultry climate, as he hasbeen living here a long time, on thesouthern fringe of the Caribbean.From his vantage point, he has a goodview of the playing field on which theannual IPSL soccer tournament is infull swing. As president of the IPSLsports club, the 50-year-old is respon-sible for organizing the competi-tion—as a volunteer, of course. Hisjob is something quite different fromsports. Like most IPSL employees, ofwhom there are around 500, Farmeris involved in methanol production.Thus, rising behind the soccer fieldare not grandstands packed with fans, but rather the massive complexof the Point Lisas Industrial Estate.The match is played on the companypremises, and the sports club is one of the many leisure activities employ-ees can choose from.

Methanol giant TrinidadThe industrial area on the west coastof Trinidad is the center of methanolproduction in the Caribbean state of Trinidad and Tobago. This smallcountry with a population of just 1.3 million is the world’s leading ex-porter of this basic material, withmore than a third of the world’s com-mercially produced methanol origi-nating here. The driving force of the

dynamically expanding petrochemi-cal industry in Point Lisas isMethanol Holdings (Trinidad) Ltd.(MHTL). This company provides em-ployment for hundreds of nationalsthrough its plant operating contractwith IPSL. The methanol plantswhich are today owned by MHTL began operations in Point Lisas as far back as 1984. The M5000 plant,which was commissioned in late2005 is still today the world’s largestmethanol plant and the MHTL

Methanol Complex in Point Lisas isthe world’s biggest industrial com-plex for the production of methanol.MAN Ferrostaal has been involved inthe enterprise right from the out-set—both as the general contractorfor plant construction, and as a par-tial owner of MHTL with 20 percentof the shares.

A few hundred meters away from thesoccer-playing employees, a relaxedRampersad Motilal also leans back.The CEO of MHTL for nearly 20 years,his leadership has been largely re-sponsible for taking the company tosecond place among the world’sbiggest methanol producers. In 2006,

the output amounted to 3.37 milliontons. Motilal has every reason to besatisfied with his business success,but his commitment also has a socialaspect: “The energy business—andespecially the petrochemical indus-try—is increasingly becoming aneconomic platform for the develop-ment of a country and its popula-tion,” he explains. “The more we ex-pand, the more jobs we can create.”

Opening up new prospectsIn the beginning, these often weresimple, unskilled jobs. In the mean-time, however, there are contractual,open-ended positions available, espe-cially to people with good educationalqualifications. “This way we also offerpeople some personal prospects,”says Motilal. When hiring new staff,he makes a point of favoring localworkers. Both MHTL and IPSL exclu-sively employ residents of the two-island state. When it comes to pur-chasing materials or contracts withservice companies, again the motto is“Trinidad and Tobago first.” As a resultof its linkages to local industry, MHTLhas become an important factor forthe economy of the Caribbean state.

The MHTL boss is aware that by in-vesting in homegrown industry he iskeeping in line with his country’s de-clared objectives. For years, the gov-ernment of Trinidad and Tobago hasbeen pursuing an economic policyaimed at the development of a local

40

GROWTH UNDER PALM TREES

Constructed and financed by MAN Ferrostaal, methanol and ammonia plants are driving the economic development on Trinidad and Tobago. In addition, the industrial service provider funds the university education of island residents.

12% was the percentage rise in the 2006

GDP of Trinidad and Tobago—an upswing

partially due to the M5000 project.

41

natural gas processing and manufac-turing industry, in order to free thecountry from its role as merely a sup-plier of raw materials. At a cost ofabout $1.6 billion, MHTL is currentlybuilding a petrochemical complex inPoint Lisas, which is designed to produce some 1.5 million tons of ammonia and urea solution as well as 60,000 tons of melamine annual-ly, beginning in 2009. Both sub-stances are obtained from the natu-ral gas that is abundant here. Theenvironmentally beneficial side ef-fect: More carbon dioxide is neededfor production than MHTL’smethanol plants are emitting, so thecompany will actually be reducingthe amount of greenhouse gas pres-ent in the atmosphere.

In terms of the local economy, thislargest private-sector investment inthe history of the Caribbean state willalso have positive side effects: TheCentral Bank of Trinidad and Tobagoexpects that when the plant goes intooperation in 2009, the gross domes-tic product will grow robustly. Thebankers already attributed the GDPrise of 12 percent in 2006 (from just8.4 percent in 2005) to the M5000plant, among other factors.

Committed to education“From my point of view,” emphasizesMotilal, “development does not meanthe construction of fancy new high-rises, but primarily one thing: educat-ing the people of Trinidad and Toba-go.” The company therefore is heavilycommitted to university education.MHTL has been financing a Chair ofEngineering Science at the Universityof the West Indies since 1997, andhires university graduates on a regu-lar basis. In fact, the rapidly growingenergy sector of the two-island state

01 IPSL engineers are inspecting

the M5000 methanol facility.

02 The mega-plant has a capacity

of 5,400 daily tons of methanol.

01

02

is confronted with a shortage of quali-fied staff: International enterprisesand local firms are poaching eachother’s employees. MHTL was also in-volved from the beginning in estab-lishing the new, technology-orientedUniversity of Trinidad and Tobago.“On the occasion of the M5000 plantopening, we donated $5 million to theuniversity—one of the biggest dona-tions to education our country hasever seen,” emphasizes Motilal. Somefunds went towards setting up the Institute for Natural Gas of the Amer-icas. Yet the municipalities aroundPoint Lisas also benefit from MHTL’ssupport: The company providesfunds for the training of manualworkers as well as for school infra-structures.

Successful financial conceptMHTL’s profits also benefit theCaribbean nation. Through the stock-holder C L Financial Limited, some40,000 local shareholders bask in thecompany’s economic success. InTrinidad, the company is operating on the basis of a successful businessmodel: Instead of just handling the

construction of petrochemical plantsas a systems engineer for other companies. As a shareholder, MANFerrostaal participates in MHTL’s suc-cess. The industrial service supplier is involved in the conception of newsystems and especially in their fi-nancing. As a globally engaged com-pany, it has easier access to creditorsthan a fairly unknown company fromTrinidad. “We have been involved inthe project from the initial idea up to construction,” says Adalbert Graff,project director of the complex cur-rently under construction. “We devel-op a customized concept for every facility, for we usually cannot give ourbackers any kind of security otherthan the project itself.”

Its commitment to Trinidad hasproven a successful experience forMAN Ferrostaal. The demand formethanol and ammonia is risingworldwide, as are the prices. Both areimportant basic raw materials for thechemical industry. Methanol is pri-marily used in the production ofplastics and paint, and is increasinglybeing utilized in the manufacture of

TRINIDAD AND TOBAGO

ENERGY SECTOR FUELS GROWTH

Covering an area of about 5,000 square kilometers, the state is made up of the two most southerly islands of the Caribbean archipelago, and ishome to some 1.3 million inhabitants. The capital of Trinidad and Tobago is Port of Spain. In 2006, the country’s gross domestic product (GDP)amounted to $18.2 billion, representing a real growth of 12 percent. The principal driving force of this vivacious economic development is theenergy sector, which was responsible for about 45 percent of the GDP in2006. A third of the national budget also depends on earnings in this area.The government’s policy of diversifying industry is still in its infancy; however, the boom in the energy sector has resulted in a comparativelylow unemployment ratio in the region of just 6.2 percent.

42II MAGAZINE OUR RESPONSIBILITY

With their long-term commitment toTrinidad and Tobago, MAN Ferrostaal andMHTL take on social responsibility: Theyare pushing economic growth, investing ineducation and the training of skilled work-ers. The Trinidad model has been so suc-cessful that it is now exported to Oman.

INTERIM RESULT

biofuels. Ammonia is used primarilyas a fertilizer. Especially the rising de-mand of a booming Asian economyhave fueled the worldwide demandfor these raw materials.

Transfer of the business modelAs a business location, Trinidad andTobago has definite advantages: It ispolitically stable, has sufficient natu-ral gas reserves, and the governmentsupports the development of thepetrochemical industry, such asthrough long-term contracts and sta-ble natural gas prices. “The geographi-cal position is also favorable. Neededchemicals can be delivered quickly,and we are not far away from the im-portant sales markets,” says Graff. AtMAN Ferrostaal, this business modelis considered successful enough thatit has been exported. A methanolplant based on the Trinidad model isalready under construction in Oman.Trinidad supplies the necessary skillsdirectly: IPSL staff travel to Oman andtrain local technicians there. Thus,Farmer sometimes must do withoutsome of his soccer players. When thematch is over, he sets off for his homein Couva, about a 10-minute drive. Ashe leaves the industrial area behind inthe twilight, the lights blaze into lifebehind him. Thousands of lamps illu-minate the methanol plant, as a glit-tering beacon for industrial develop-ment in the Caribbean. z

03

01 Routine inspection in the plant.

IPSL employs about 500 people.

02 Near the large-scale plant, two soccer

games take place every evening.

03 Rampersad Motilal congratulates a

graduate of the NESC (National

Energy Skills Center), who has suc-

cessfully completed her training.

01

02

44II MAGAZINE OUR RESPONSIBILITY

regenerative energies in electricityproduction. Relevant support pro-grams offered by the European Unionprovide additional incentives andhave resulted in a greater number ofinquiries directed at MAN TURBO.

New processes, new markets“In the future, we not only intend touse synergies within the subsidiaries,but utilize them more heavily acrossthe business unit,” announces ThomasHaneder, responsible for Strategy andBusiness Intelligence at MAN AG. Heexplains that the solid foothold inboth worlds of the energy sector offersprofitable opportunities that are farfrom exhausted. The extraction ofcrude oil and gas provides one exam-ple: Using MAN turbo machinery onstationary oil and gas rigs in coastal re-gions is a tradition. However, the con-tinuously rising relevance of off-shoring, namely the development ofcrude oil and gas fields in ever greaterdepths of water using floating drillingrigs, opens up new markets for theproducts offered by MAN TURBO andMAN Diesel alike: Compressors andturbines operate on the decks of mo-bile drilling units, and engines byMAN Diesel power the vessels for ex-ploration, production and transport.

Three years ago, the Augsburg-basedheadquarters of MAN Diesel respond-ed to this development by establish-ing a new department in Denmark’sFrederikshavn. Divided into the

sources which were previously consid-ered uneconomical, only pays off intimes of severely increasing energyprices. MAN TURBO supplies the keycomponents for the GTL process—airseparation plants and chemical reac-tors for all currently existing GTL facil-ities around the world. Comprehen-sive references relating to the con-struction of compressors and turbinesopened the door to this new market.Due to guaranteed process safety andmore than 50 years of know-how concerning the building of reactors, MAN DWE, a subsidiary of the MANTURBO Group, was contracted to con-struct the reactors for such projects.

Similar to their role in the GTL proce-dure, compressors can also be used to convert biomass into CO2-neutralfuels (biomass-to-liquids, BTL). Ac-cording to experts, biomass is one ofthe most promising energy sources ofthe future, not least for producingelectricity in small, decentralizedplants. MAN TURBO gained a solidfoothold in this business segment in2006, by purchasing the Hamburg-based turbine activities of Blohm +Voss. The former subsidiary of theThyssen-Krupp Group is consideredone of the market leaders with regardto steam turbines in the low perform-ance category starting at 1.5 MW. Thedriving forces behind the construc-tion of biomass power plants are theobjective of reducing CO2 emissionsand the aim of increasing the share of

E nergy has become a pivotal is-sue for the global economy. Theuniversal demand for energy

opens up new markets and promotesthe development of even more effi-cient engines, turbo machinery andplants. Another given, however, is thelimited availability of fossil energysources, the continuously risingprices of crude oil and gas as well asthe necessity of reducing CO2 emis-sions to battle climate change. Conse-quently, alternative production andfuels are becoming increasingly at-tractive. All MAN Group companiesare involved in worldwide energyprojects: MAN Nutzfahrzeuge andMAN Diesel at the consumer end, andMAN TURBO and MAN Ferrostaal inextraction and production.

Key components for GTL processTake Qatar, for example: The desertstate on the coastline of the ArabianGulf with an abundance of natural gasintends to win the title “GTL capital ofthe world” with the help of turbo machinery strands from Oberhausen.Gas-to-liquids—the modern proce-dure for the conversion of naturalgas—is based on the same principle as the liquefaction of coal (coal-to-liquids, or CTL), a technique that wasdeveloped by the German chemicalengineers Franz Fischer and Hans Tropsch from the German city Mülheim an der Ruhr as early as the1920s. This method, however, whichalso allows for accessing natural gas

NEW ENERGIES, NEW MARKETSEnergy is a central topic for MAN AG’s Transport-Related Engineering. Jointly, all business areas are spanning the entire process—from extraction and production, to transportation and processing, right up to the use of the valuable resources.

45

departments “Vessels” and “FlexibleProduction and Drilling Platforms,” itsfocus is all offshore projects aroundthe world. Special FPSO (Floating, Pro-duction, Storage and Off-Loading Sys-tem) vessels—often tankers convertedinto integrated oil and gas productionfacilities and mainly serving to pro-cure crude oil from deep waters—arebecoming increasingly important. An-other trendsetting development forthe maritime transport of fossil re-sources are dual-fuel engines, whichoptionally run on marine diesel oil,heavy fuel oil or gas (also see page 19).

Frying fat for power plant enginesIn turn, technology by MAN TURBOis needed to exploit existing under-ground oil fields to the last drop:With great pressure, the nitrogenpreviously produced by air separa-tion plants is pumped into the stor-age facility, where it reliably providesthe pressure needed for subsequentproduction. Stricter environmentalregulations in customers’ target

regions for CO2 and nitrogen emis-sions require that development engi-neers in all company divisions opti-mize the degree of efficiency andthe emission of harmful substancesof their machines and facilities. Ac-cordingly, the new generations of en-gines by MAN Diesel can be run notonly on the traditional heavy fueloil—a waste product of the oil re-fineries—but also on biodiesel, palmoil or other regenerative fuels. Evenoil that has been used for deep-fryingfrench fries works for power plant en-gines, as an example from Austriahas shown. For unlike the delicate in-jection systems of small high-per-formance engines, they are by far lessvulnerable. In the town of Fritzensnear Hall in Tyrol, an MAN diesel en-gine in a combined heat and powerplant is fueled by used vegetableoil—which is a waste product createdin enormous quantities every day. Furthermore, the Augsburg-basedenterprise is embarking on a newpath as a producer of electricity in

Pakistan. Stephan Mey, head of thebusiness unit Power Plants withMAN Diesel, explains: “In a joint venture with the locally based AtlasGroup, we build and operate powerplants, provide the service and are financially backing the project.”

Alternative drive systemsThe customers of MAN Nutzfahrzeugeare found on the energy-consumingside. For this reason, the truck and busmanufacturer has been focusing onthe economical and ecological use offuel for several years now. This in-cludes the optimization of engineperformance through technical mod-ifications of the drive train as well asthe reduction of emissions or the im-provement of the trucks’ aerodynam-ics. The engineers have already beenworking on various hybrid drive sys-tems since the 1970s. The latest de-velopment is a close-to-productionlow-floor city bus that consumes upto 25 percent less fuel than conven-tional diesel engines (see page 12).

PILOT PROJECT: SOLAR ENERGY FROM SPAIN

A trendsetting project was launched in sunny Andalusiain July 2007: In cooperation with the Solar PowerGroup, the German Aerospace Center and theFraunhofer Institute for Solar Energy Systems, MANFerrostaal plans to substantiate the economic efficiencyof a solar power plant on the basis of the so-calledFresnel technology during a one-year pilot phase.Presently, the costs of one kilowatt hour of electricitygenerated by a solar thermal facility are still three timesas high as the price of electricity generated by coal andgas power plants. With photovoltaic arrays, it is approxi-mately ten times as much. Due to the new technology,the cost of solar power should drop to that of electricitygenerated by fossil power plants by 2020. Other than

photovoltaic arrays, which work with solar cells andmainly generate energy on a smaller scale, solar thermalfacilities only pay off starting at a certain size. For com-mercial settings, the project partners envision a stan-dard power output of 50 MW, but consider major powerplants with 400 MW and more to be realistic. The pilotpower plant generates one megawatt and is designedas a module, many of which will be synchronized at alater stage. Forty-eight moveable flat mirrors bundle thesunlight on an area of almost 1,500 square meters andreflect the rays onto an absorber pipe above the mirrors.The water flowing through this pipe is heated up, turnsinto steam and drives the turbine, producing electricity.All of the facility parts are standard components.

SPOTLIGHT ON A TREMENDOUSLY POWERFUL TECHNOLOGY


Since 1988, the “Initiativkreis Ruhrge-biet,” comprising 65 major Germanand European enterprises, has beendeveloping visions for the Ruhr metroregion. The objective is to further pro-mote the development of one of Eu-rope’s most significant economic andcultural regions and to provide incen-

tives for structural changes. MAN Ferrostaal is among the supporters ofthe region between the rivers Rhineand Ruhr in its efforts to reach a topposition within Europe—after all, theSt.-Antony-Hütte ironworks in Ober-hausen is considered the cradle of theMAN Group. Within the framework of

the project ContractFuture Ruhr 2030,the initiative tackles future-related is-sues to point out possible action inthe areas of health, economy, innova-tion, culture and infrastructure. Lastbut not least, the region is encour-aged by the nomination of Essen asthe 2007 European Cultural Capital.

RUHR REGION INITIATIVE

SHAPING THE FUTURE

Light show during the opening ceremony of

the Jahrhunderthalle (century hall) in Bochum—

a landmark of the new Ruhr Region

46

As of 2007, MAN TURBO will as-sume sponsorship for a centerfor the disabled in Alsbachtal inOberhausen. The company willdonate €8,000 annually to facili-tate the recreational activities ofthe center residents—some ofwhom suffer from severe, multi-ple disabilities. The funds are

used to finance short holidays,festival or zoo visits as well asarts and crafts materials, but alsoto support the early developmentof toddlers by means of speechtherapy and physiotherapy. The center for the disabled wasfounded in 1965 by parents withdisabled children.

SOCIAL COMMITMENT

RESPONSIBILITY FOR THE DISABLED

In September of 2007, the circleof friends “Theater for Ober-hausen” awarded the OberhausenTheater Prize for the 13th time. In 2007, the prize money amounted to a total of €9,000. The firstprize—worth €3,000—for the very best is sponsored by MAN TURBO.By sponsoring the award, the Oberhausen-based manufacturer of turbo machinery is emphasizing its bond with the region and its people. The jury of theater critics picked Christian Schlüter, PrincipalDirector at the Bielefeld Theater, as the winner of the first prize 2007. He received the award for his staging of Shakespeare’s “TwelfthNight, or What You Will.”

PROMOTER OF CREATIVITY

LIFE’S BUT A STAGEIn Venezuela, children from sociallychallenged backgrounds have been educated free of charge to become orchestra musicians for the past 30years. MAN Ferrostaal supports thefoundation Fundación del Estado parael Sistema Nacional de las OrquestasJuveniles e Infantiles de Venezuela(FESNOJIV), which allows for this train-ing. In addition, the industrial serviceprovider helps by inviting partners andcustomers to the concerts of the FESNOJIV Youth Orchestra Simón Bolívar. The 11- to 19-year-old instru-mentalists inspire the audience with anextraordinary sound quality that atteststo the highest technical standards andSouth American spirit. They are led bythe 26-year-old star conductor GustavoDudamel, himself a former pupil of oneof the foundation’s music schools.

YOUTH ORCHESTRA IN VENEZUELA

MUSIC AGAINST POVERTY

200,000 euros have been donated by the MAN Group to support the scientific exca-

vations of parts of the “St.-Antony-Hütte”. Since mid-2006, archaeologists

have been excavating the remnants of the furnace facility, which was also

the first of its kind in the entire Ruhr Region The donation, made it possible

to continue the archaeological activities, secure the findings and make

them accessible to the public. Milena Karabaic, head of the department for

cultural and environmental matters with the Rhineland Regional Council,

not only considers St.-Antony-Hütte to be the cradle of the MAN Group.

“You could say the future was invented here,” she explains. By 2010, an

industrial-archaeological park is to be established at the excavation site.

47


EXHIBITION

MACHINES ASINSPIRATION

Accomplishment, commit-

ment and success are quali-

ties that Cecilia Bartoli and

Håkan Samuelsson share—

one reason that MAN is sup-

porting the opera singer’s

concert tour. In an MAN

truck that has been convert-

ed into a mobile museum,

Bartoli presents Maria

Malibran, an opera diva who

lived in the 19th century.

Artists are always looking for unusualsubjects. MAN Diesel can certainly offersome. During the 2007 summer semes-ter, 16 students from the University of Augsburg let themselves be inspiredby the flair and the fixtures inside thefoundry and the assembly halls of theAugsburg plant—equipped with easel,canvas and brush. The outcome: A selec-tion of works of art spanning variousstyles, techniques and formats, whichwill be on display in an exhibition onthe MAN Diesel premises in Augsburg.The paintings are exhibited until mid-February 2008 and are available for pri-vate purchasing.

48

With the construction of a fabrication yard for building and modi-fying oil and gas rigs in South Africa, MAN Ferrostaal has createda new growth market for the country. In addition to the platformwharf, the project comprises maintenance and service stations for oil and gas rigs. This allows South Africa to increasingly meetthe requirements of this growing industrial sector on the Africancontinent. The country’s raw materials make up about 10 percentof the world’s raw material resources. With this investment, theindustrial service provider creates about 12,000 new jobs inSouth Africa, secures existing jobs and enhances the technicalskills of local workers.

MAN FERROSTAAL BUILDS PLATFORM WHARF

12,000 NEW JOBS IN SOUTH AFRICA

When it comes to new laws and guide-lines for the industry, official commit-tees rely on the knowledge and expertopinions of companies. MAN AG andits business divisions share their tech-nical know-how and their experiencewith various committees: While insome cases this means direct contactwith employees who are appointed tothe respective committee as author-ized experts, this usually happens indi-rectly via industrial associations whereMAN is represented. These include, forexample, the European Association ofInternal Combustion Engine Manufac-turers (Euromot) and the VDMA, Ger-many’s association of machinery andindustrial equipment manufacturers.

INTERNATIONAL COMMITTEES

CONTRIBUTING KNOW-HOW

On December 3, 2007, the intra-corporate art association of MANDiesel Copenhagen celebrated its 60th anniversary. The associa-tion was founded by Monk Olsen,art lover and employee of theBurmeister & Wain company—which was purchased by MANDiesel in 1980—in 1947. Headedby Gregers Thomsen, senior manager, marketing, the interestgroup tallies 425 employees.Membership fees and funds provided by executive manage-ment are used to purchase objetsd’art by artists such as SergeiSviatchenko or Jan Sivertsen,which are exhibited in MAN Dieselbuildings and eventually raffled off among the members.

ART ASSOCIATION COPENHAGEN

MILESTONE BIRTHDAY

49

GERD-ULRICH WOELK, STAFF CONSULTANT“Headhunters are surprised when I tell them I’m going on 70.”

Gerd-Ulrich Woelk is a senior partner at MAN TURBO in Oberhausen

51II MAGAZINE OUR EMPLOYEES

summarized the outcomes on theslides that he now uses in his semi-nars. His credo is to pass on knowl-edge rather than hoarding it. Havingsaid that, the Stettin native is not aprocess engineer, but holds a Ph.D. in mechanical engineering. He beganhis career as head of the calculationdepartment. Before his official retire-ment, he was in charge of the busi-ness units Compressor Technologyand Testing Technology, namely testbeds, at MAN TURBO Oberhausen.When people would like to have com-plex context explained to them in acomprehensible manner, they are fre-quently referred to him, an expertwho is willing to impart information,always has a sympathetic ear and nev-er switches off his cell phone. “AskWoelk, he’ll know” is the standard as-sertion everywhere.

many of these problems out to them,because we were confronted withmost of these in the past with ma-chines that younger colleagues couldnot possibly be familiar with.” Woelkcontinues to work with MAN TURBOon the basis of a consultancy contract.

Always a sympathetic earExperience has shown that the samemistakes are made approximatelyevery 15 years, explains Woelk. Hewas already dealing with process-engineering-related issues when hebegan working for MAN 30 years ago.“I wanted to know what external fac-tors, apart from thermodynamics,have an impact on the machines, and what we need to do to makethem as robust and durable as possi-ble.” He continuously conducted research concerning this topic and

M AN TURBO, Oberhausen,Main Building. In the confer-ence room, 14 male and two

female employees from the divisionSystems Engineering/CompressorTechnology have gotten together.Looking at slides projected onto thewall, they are listening intently to thedeliberations of a white-haired manstanding beside the overhead projec-tor. He is talking about air separationplants: What problems arise duringthe process when these instrumentsdivide the air up into its componentsoxygen, nitrogen and noble gaseswith the help of compressors? Thecalm voice of the elderly gentlemanin a dark blue suit fills the roomwhile he moves his telescopic pointerfrom one diagram to the next. At reg-ular intervals, he seeks eye contactwith his audience. After two hours,including a discussion, Gerd-UlrichWoelk folds his telescopic pointer.

This turbo machinery eminence is afar cry from the ideal of German HRdepartments, which are reputed to at-tribute major importance to youth-fulness: Woelk officially retired fromMAN TURBO almost four years ago.He does not worry about allegedideals, though. “My colleagues knowtheir machines inside out,” he ex-plains, “but frequently unexpectedproblems of a corrosive, explosive or toxic nature crop up in the process,and they need to be prepared forthem. I am in a position to point

WHEN GENERATIONS COME TOGETHERMAN products are frequently designed to last for several decades. Employees whocontributed to their development become valuable knowledge carriers. Whendeployed properly, their wealth of experience can be useful to the younger generation.

SYSTEMATIC PERSONNEL DEVELOPMENT

ROTATION RIGHT AROUND THE GLOBE

The demographic development demands that companies adapt their HR planning to the aging process. Job rotation is one tool that gener-ates experience and promotes employee development. In the case ofMAN, these measures were further optimized at the start of 2007 andfinalized through a new guideline. Staff members can change jobs notonly within a business division, but also across the four divisions, andcan even rotate among the various international locations. And it is notexclusively up to the employees to take the initiative. At regular inter-vals, superiors and human resources staff are reviewing which vacan-cies could be filled by qualified applicants.

II MAGAZINE OUR EMPLOYEES

He is the type of person other compa-nies are interested in as well. “I stillhave headhunters calling me. ‘Wehave a vacancy for a lab manager, howabout it?’,” reports the turbo machin-ery specialist. “They are surprisedwhen I tell them I’m going on 70.”

Advice from the part-time expertOlder than 65 and still working? Not ararity at MAN TURBO. Besides Woelk,there are presently 13 other seniorpartners who have been active as per-manent consultants since their re-tirement—especially in the technol-ogy field. “We do not want to losecumulative knowledge, but graduallytransfer it to the younger employ-ees,” explains Uwe Koller, senior HRmanager at MAN TURBO. “The idea isfor the senior partners to supportour young engineers and new staffmembers, and in a setting wherethey are not affected by the pressureof day-to-day business.”

Like Woelk, who is on his way to thetest beds with one of his listenersright after the seminar. CarstenAchtelik only joined MAN TURBO asan engineer in the division Technolo-gy Global Engineering in mid-August.“Last week I briefed him on our prod-ucts and applications, and now we aregoing to look at them on site.” AndAchtelik adds, “Dr. Woelk is a godsendfor me, he has brought me up-to-datewithin a very short time. Withouthim, it would probably have taken memonths to find out about all thethings he briefed me on in the courseof only a few days”, says Achtelik. “Col-leagues stuck in their own routinehardly have the time for this kind ofintroduction.”

Woelk, on the other hand, can takethat time. The 69-year-old does it

even when brooding over a currentdesign review: The optimization ofsuch systematic reviewing of drafts intheir early phase nearly takes up 50percent of his work time. There is al-ways time, however, for glancing overthe technical presentation compiledby Carsten Holldack, his office mate.

Still, Holldack has the room to himselfmost of time—not only becauseWoelk divides his approximately 90hours per month at MAN into threeworkdays per week, making his con-sulting services available to othercompanies for the rest of the week.But also because he is always out andabout on the premises—Woelk worksin new staff members; provides adviceconcerning development issues, espe-cially regarding compressors andsteam turbines; or analyzes design reviews with the respective project engineer in charge. Here, he checkswhether the machines as planned bythe engineer meet the requirements.If not, he digs deeper: What changesneed to be made to the outer casing toensure that this machine will with-stand the elevated pressure? “To keepup with the competition, our ma-chines must increasingly deliver bor-derline performances,” says Woelk.This, however, means that they aresubjected to increasingly more power-ful stresses, primarily of an aerody-namic and a thermodynamic nature.“They may be able to cope with themin theory, but practice has shown thatif several parameters shift, a safety riskquickly arises which we already needto eliminate during the project plan-ning phase.”

In other business divisions of MAN,senior staff members are also held inhigh esteem as valuable sources ofknow-how. At the industrial service

provider MAN Ferrostaal the high av-erage age of 46 already indicates howmuch importance the enterpriseplaces on experience. “We are notmanufacturing, we just have our em-ployees, and we need to support themand ‘care’ for them accordingly, whichalso includes our health initiative,”emphasizes Korinna Recht, managerHuman Resources Development withFerrostaal in Essen. While it is not yetstandard that employees stay on afterretirement, “nevertheless, it does happen, as know-how and contactsare linked to individual persons andmany projects span periods of five tosix years,” adds Recht. Frequently, theproject resembles the takeover of acompany: For a while, the older staffmember and his successor are jointlyworking on the project to achieve agradual replacement process.

Standard procedure: mentoringMentoring younger ones is part ofMAN Ferrostaal’s corporate philosophyat , as it is at the other areas. “Mentor-ing is standard,”confirms YvonneBenkert at MAN headquarters in Munich. “MAN TURBO also has an in-troduction program for new employ-ees. It documents the respective men-tor’s duties and should be adopted as abenchmark for the other subsidiaries.”

Despite all the positive aspects: Atsome stage, every employee has to saygoodbye. “Give youth a chance” is alsoWoelk’s long-term objective. And hewill make it a reality soon. His consul-tancy contract will expire in the sum-mer of 2008, when he turns 70. Will hecontinue working, perhaps on a small-er scale? “I don’t know.” Either way: The Oberhausen crew will have to getaccustomed to his cell phone beingswitched off while he is out shop-ping or having coffee with his wife. z

52

01 Gerd-Ulrich Woelk provides former

colleagues with detailed explana-

tions concerning air separation.

02 The expert always has a sympathet-

ic ear for development questions.

03 In great demand in theory and

practice: Woelk on the shop floor

04 After more than 30 years with MAN

TURBO, he knows every single

problem area, no matter how small.

01

03

02

04

54II MAGAZINE OUR EMPLOYEES

their own training programs for thepurpose. MAN Ferrostaal, for exam-ple, draws up a Career DevelopmentPlan for all of its 4,000 employees.“Together with an employee’s directsuperior, we first clarify which pro-file a position requires if responsi-bility is to be exercised in the bestpossible way,” says Korina Recht,head of Management Developmentand Training. This is followed by an evaluation of which skills arepresent, and what still needs to belearned. In consultation with theemployee, they then work out asuitable program. The trainingcourses are standardized, but thereare also individual paths of learning.The program is still in the develop-ment phase. When it is complete,every employee should own a train-ing pass, which documents all quali-fications independent of functionand job description.

MAN Ferrostaal employees also areoffered opportunities for qualifyingthemselves beyond their companycareer—for example, through sup-port for a course of college study aftertheir training. It is a similar situationat MAN TURBO: With flexible salaryscales and working hours, employeeswho are not executive high-fliers alsohave the chance for self-development.“Basically, we are enabling everyone to acquire additional training,” saysCarola Fink, who heads PersonnelDevelopment at MAN TURBO.

come from highly regarded institu-tions such as the European School ofManagement and Technology. TheMAN Academy’s current reorientationpays tribute to increasing internation-alization. “Programs are for the mostpart in English,” says Yvonne Benkert,head of the MAN Academy. “And withinternational participants, we not onlyget a global exchange going, but arealso setting up collegial networkingacross borders. As for content, globalaspects are even more important.”

A training pass for all employeesLifelong learning is not just restrict-ed to the advancement executives.Employees in all areas are expectedto continue their training. The vari-ous business units have developed

Recruiting executive staff fromwithin requires gaining theloyalty of the most promising

talent at an early stage. Consequent-ly, MAN has a presence in numerousuniversities (see box). Every yearabout 800 young people are trained,and 300 graduates are recruited directly from the universities.Throughout the Group, MAN regular-ly updates the pool of employees withpotential for managerial responsibili-ty. Here the MAN Academy plays animportant role. It streamlines all activ-ities for the career development andqualification of executive staff withinthe Group. Rising executives are fa-miliarized with new tasks, and estab-lished executive staff exchange ideasabout management topics. Trainers

WORKPLACE DEVELOPMENT FOR ALLLifelong learning motivates employees and develops their potential. Besides systematically encouraging the career development of its executive staff, the Grouptherefore also supports all its employees in acquiring additional qualifications.

CAMPUS INITIATIVE

MAN AG launched its Campus Initiative in 2007. Scientific cooperationsare hereby focused on select universities; the first to be chosen is the Technical University of Munich. The three main components of this initiative are:

• Scholarships: Up to 100 mechanical engineering and IT students are receiving financial support, and have the opportunity to attend MAN events.

• Innovation projects: Under the supervision of MAN staff, student working groups tackle actual problems from daily working life of various MAN AG divisions.

• Lecture series: Senior executives from MAN AG and other enterprisesshare their knowledge.

SCHOLARSHIPS, INNOVATION PROJECTS AND LECTURE SERIES

55

in Munich, half of the workforce already are women, with 21 percentof them working part time. In addition, MAN has concluded labor-management agreements onthe subject of equal opportunity formen and women, and has increasedthe number of women in leadershippositions. Between 2004 and early2007, the number of women in the inner management circle of theGroup rose from two to seven.

Part time, telework and job sharingOne of these, Sabine Drzisga, is amember of the management boardof one of MAN’s biggest divisions,MAN Nutzfahrzeuge. In Munich, thework location of the head of Control-ling, child care will soon be a wholelot simpler, as there are plans toopen an in-house nursery at the endof 2008 (see box). At MAN Diesel inAugsburg there is no prospect ofsuch a thing as yet. “We have beensuccessfully pursuing individual so-lutions for our employees for years,however,” explains Jürgen Zahnweh,head of International Recruitment.“These solutions encompass flexibleworking hours, working-time ac-counts, part-time hours, telework-ing as well as job sharing.” If an em-ployee departs on family leave, thehuman resources department ap-proaches them and tries to maintainan employment relationship. Afterall, MAN is in need of every singlequalified employee.

in the company. Not the least impor-tant reason for this is the continuingshortage of skilled staff. “Womanspecialists are an important re-source, as we see it,” says HelmutNaber, head of Corporate Develop-ment at MAN AG. At the head office

G oing to work feels easier forEleonora Perin today than itdid just several months ago.

Now the engineer takes her daughterwith her on a regular basis to MAN TURBO’s branch in Schio, Italy.Before stepping into her office in the morning, she leaves the nine-month- old girl in the companynursery. This was set up by her em-ployer, together with two other companies, not far from their of-fices. As the canteen is located in thesame building, the young mothercan look in on her little girl duringlunch break, and afterwards applyher full concentration to her job, lay-ing the groundwork for preliminarycalculations. “I am glad that we havethis child care facility,” she says. “Ican be more relaxed about my workwhen I know that I can get to mydaughter in just three minutes.”

Percentage of female staff to rise Besides the Italian branch of MANTURBO, only MAN Ferrostaal in Es-sen offers a few kindergarten places.The industrial service provider has apartnership with a Protestant day-care center in Bredeney. It was also in the Ruhr region that MAN’s prede-cessor firm, the Gutehoffnungshütte,set up the first corporate kinder-garten as long ago as 1873. Yet eventoday, there is still much to do—andMAN is steadily working to createmore family-friendly structures andto increase the percentage of women

PROFESSIONAL DRIVE AND PARENTAL JOYSIn the competition for the best talent, family-friendly structures are a decisive factor when seeking to attract and retain highly qualified female executives. MANAG has set the course.

DAY NURSERY IN MUNICH

BUILDING APPLICATION IN 2007

MAN Nutzfahrzeuge is planning aday nursery in the vicinity ofMunich’s Karlsfeld suburban trainstation. It should open as soon aslate 2008, and will be able toaccommodate four groups of 12children. There is demand for the facility, as indicated by a sur-vey, and CEO Anton Weinmann isa major driving force and patronbehind the project. So far, the loca-tion planning has caused prob-lems, however. Now the parentalinitiative for a Kindergarten at MANNutzfahrzeuge is at least submit-ting an application for planningpermission to the Munich munici-pal council. Negotiations with proj-ect partners are under way, andthe educational strategy is set:Each group will have three ratherthan the usual two kindergartenteachers, and one of each will be anative English speaker to introducethe children to multilingualism.

II MAGAZINE OUR EMPLOYEES

A new plant workshop, new officepremises, or a 100-year anniversaryserved as incentives for various MANsites for opening their doors in 2007.In mid-June, some 3,000 visitorspoured into the Deggendorfer Werftshipyard, to take a look at MAN DWE’snew manufacturing workshop. Here,chemical reactors with a salt-bathcooling system and other heavyequipment weighing as much as 800 tons are produced constructed

and assembled. In May, the motto inSchio, Italy, was: “A Day at … MANTURBO,” with the entire town invitedin the morning to check out the com-pany’s new office spaces and work-shop. The afternoon was then reserved for employees and theirfamilies and other special guests. In Hamburg, MAN TURBO looks backat many years of history. Steam tur-bines have been built on this site foran entire century. Employees from

MAN and from Blohm & Voss Industrietechnik GmbH, acquired by MAN in 2006, jointly celebratedthis anniversary in the summer.There was a special reason for thefamily day held at the engine plantof MAN Nutzfahrzeuge in Nurem-berg: “We wanted to thank our stafffor the super job that they do forus,” said the organizers. With morethan 20,000 guests, the day was areal experience.

INFORMATION DAYS AND FAMILY DAYS

MAN OPENS ITS DOORS

56

01 Anton Weinmann, CEO of

MAN Nutzfahrzeuge, was

among the guests at the

Family Day in Nuremberg.

02 The Hot Sax Club fired up

the employees.

03 Children had a particularly

good time with the color-

ful range of activities at

the Nuremberg event.

01

02

03

PROMOTING THE NEXT GENERATION

FEMININE POWER AT MAN DIESEL

In 2007, MAN Diesel participated in “Girls’ Day” for the secondtime. “Girls’ Day” is a campaign under the auspices of Germany’sFederal Ministry of Education and Research. The aim of this annualevent is to diminish female prejudices against the technical profes-sions, by encouraging girls to take a look at what goes on behindthe scenes in various industrial companies. This year, 26 girls be-tween the ages of 13 and 16 paid a visit to MAN’s plant workshopsand training centers in Augsburg and Hamburg.

57

In December 2006 MAN Nutzfahrzeuge

launched its “Commitment in Management”

strategic initiative, with the objective of

improving cooperation and communication

across all departments and on all levels, as

well as boosting the understanding among

employees for decision-making by execu-

tive management. The improvement initia-

tive was triggered by the employees’ survey

in 2006: a trend toward decreasing commit-

ment levels—meaning weaker dedication

and loyalty among the staff—made it plain

to the Management Board that something

needed to be done. Initially, 50 dialogue

groups, with about 400 employees and

management staff, analyzed the need for

action. Since June of 2007, a control group

has studied the revealed needs and require-

ments. Six sub-projects serve to assemble

an effective bundle of measures. It is

designed to enable the organization to

better integrate executive staff and employ-

ees during times of change such as restruc-

turing or process-optimization activities.

The gradual adaptation of MAN’s pensionprogram has made the company’s com-mitment to old-age provisions even moresecure than before. While the system upto 2005 provided only ongoing pensionpayments, now employees upon retire-ment receive a capital down payment,either as a lump sum or in installments.Employees who were awarded a pensionbonus before July 1, 1999, are still eligiblefor life-long retirement payments. In 2005,MAN also introduced capital funding tocover its pension obligations, which pre-viously had been financed through accru-als. For this purpose, the MAN PensionTrust was founded, with funds currentlyamounting to around €900 million. Themonies are managed by external assetmanagers, who manage the funds usingrisk-aware investment guidelines.

NEW SYSTEM FOR COMPANY PENSIONS

SECURE RETIREMENT PLAN

IMPROVEMENT PROJECTS

INSPIRING THE WORKFORCE

At MAN, much emphasis is placedon corporate health management,and in 2005, MAN Nutzfahrzeugelaunched “Health = our Program.”This project focuses on areas suchas leadership, the layout and safe-ty of workstations, the proactivepromotion of health, and the pre-vention of addiction. Measuresalready introduced include ad-vice from physiotherapists atproduction sites, health work-shops and the planning of an er-gonomic early-warning system.At MAN TURBO as well, employ-ees have formed a health com-mittee to improve working re-sources and activities and to deal

with various other aspects suchas stress caused by noise pollu-tion as well as lighting conditions.In 2007, Georg Pachta-Reyhofen,Chairman of the Executive Boardof MAN Diesel, declared internalhealth management to be an in-tegral part of corporate strategy.Numerous new initiatives forhealth promotion and preven-tion were introduced—includingthe “Cycling to Work” campaignand an inoculation programagainst tick bites. Influenza vaccination as well as courses on how to take care of one’s back at work have been offeredby MAN Diesel for years.

PREVENTION AS CORPORATE STRATEGY

INCREASED COMMITMENT TO HEALTH

59III MANAGEMENT REPORT

MANAGEMENT REPORT ON SUSTAINABILITY

Number of analyzed locations

Poland (2)

Turkey (1)

Austria (2)

(13) Germany

(1) ItalySwitzerland (1)

Denmark (2)

France (1)

Sales: another recordThe business volume revenue of the MAN Group exceed-ed €13 billion in 2006 and grew by 15 percent in compari-son to the previous year. With incoming orders amount-ing to the value of €16.6 billion, the figure of theprevious year was surpassed by 16 percent. More detailedinformation with regard to our key economic figures canbe found in our annual Financial Report, which is avail-able on the Internet at www.man.eu.

Financial figures

€ million 2005 2006 *)


thereof Germany 4,065 4,151

thereof other countries 13,929 12,416

Sales 14,671 13,049

thereof Germany 3,774 3,394

thereof other countries 10,897 9,655

Operating profit 765 1,105

*) unconsolidated figures, compare to note, below

In the management report we use relevant statistics tosupport our activities and results. During the selectionprocess, we observed the criteria and indicators of theGlobal Reporting Initiative (GRI, www.globalreporting.org),insofar as they are meaningful and applicable in relationto our Group. The standard criteria cannot be appliedthroughout the MAN Group with complete consistency:The various divisions are globally active in dissimilarmarkets, and base their successful development on alarge measure of autonomy. The reporting period is the financial year 2006.

OverviewThe reporting period 2006 to 2007 saw a series of meas-ures take effect with a view to achieving our sustainabil-ity goals. The focal points were once again a reduction inthe consumption of raw and input materials, improveduse of energy, as well as the development and rollout ofnew products and product systems. Special attention wasapplied to a further enhancement of managementmechanisms and production processes. In addition, we accentuated new aspects of HR development both interms of vocational and ongoing training for the pur-pose of further strengthening our HR sustainability. The environmental report for 2006 covers 23 locationsin eight countries (see chart). The production space un-der review totals around five million square meters, 65 percent thereof in and 35 percent (1.8 million squaremeters) outside of Germany. Thus, our environmental report covers around 97 percent of the MAN Group’s total sales, of which 81 percent is certified on the basis of an environmental management system.

Note: Due to the divestiture of several business areas during the course of the reporting period, includ-ing MAN Roland, parts of the steel business of MANFerrostaal and MAN TAKRAF Fördertechnik, significantchanges in the data assessment have applied.

60III MANAGEMENT REPORT

Workforce: continuing internationalizationAt the close of 2006, the MAN Group companies had anaggregate workforce of 50,290 permanent employeesplus 3,425 loaned employees. The proportion of employ-ees outside Germany continued to rise, amounting to41.5 percent at the end of 2006. This increasing interna-tionality reflects the development of our business. Thetrend is expected to continue in coming years.

In 2006 we spent a total of €2,778 million on personnel.Staff bonuses above and beyond statutory obligationsare the responsibility of the subsidiaries. All the employ-ees in Germany are included in the corporate pensionplan set up by MAN as an addition to the statutory andany private retirement income arrangements.

Our relationship with trade unions is governed by the Basic Constitutional Law of the Federal Republic ofGermany as well as the international standards of the International Labour Organization (ILO). Germany’s Codetermination Act allows formal employee represen-tation in management’s decision-making processes. Thisalso applies to the subject of trade union membership.Policies, principles and procedures for informing em-ployees/employee representatives and consulting andnegotiating with these regarding changes (e.g. restructur-ing programs) are defined in accordance with applicableregulations and laws on industrial codetermination. Thestaffing of Health & Safety Committees at those sub-

sidiaries in which both management and employees arerepresented, is laid down in labor protection laws. In or-der not to endanger employee health and ensure work-place safety, we have concluded a number of local shopfloor agreements. Health figures corresponded to theaverage of the metalworking industry (95.7 percent).They are recorded and tracked locally by the sub-sidiaries. The same applies to accidents at work. Theseare reflected throughout the MAN Group in key figuresof accidents per 1,000 employees, accidents per 1 mil-lion work hours and absentee time per accident. The keyfigures from previous years indicate that the metal-working industry averages were undercut or met, re-spectively. The HR Report of MAN Nutzfahrzeuge pro-vides information on such matters, for example.

Injuries and job-related fatalities are likewise recorded locally by the business areas. The MAN Group does nothave its own listing of principles and programs on thesubject of HIV/AIDS. Since 2001, MAN Nutzfahrzeugehas, however, been running a campaign at its SouthAfrican plants which includes, alongside employee in-struction and information, the opportunity to undergoanonymous tests. A physician has been hired for advis-ing and treating infected employees and their spouses.While an exact determination of infection extent is notpossible, the falling fatality rates do reflect the effective-ness of the program.

Permanent workforce by country

Country Mill. euro Ratio %

Germany 29,399 58.5

Austria 4,085 8.1

Poland 3,387 6.7

Turkey 2,783 5.5

Denmark 2,574 5.1

Great Britain 1,340 2.7

France 1,217 2.4

South Africa 856 1.7

Switzerland 745 1.5

Belgium 665 1.3

47,051 93.6

Another 26 countries with a total 3,239 6.4

2005 2006

Total number of employees 58,203 50,290

Male 87.3 % 87.4 %

Female 12.7 % 12.6 %

Part-timers 1.9 % 1.6 %

Additional loaned employees 2,573 3,425

As of Dec. 31, 2006

61

Training and continuing education: above averageIn 2006, the training quota of the MAN Group in Ger-many was around 7 percent. Since vocational, advancedand supplementary training is organized locally, it isonly the subsidiaries that record further statistics. De-pending on the workforce size and their areas of indus-try, the business areas offer a wide range of training andcontinuing education programs.

The MAN Academy offers executive development pro-grams for the qualification and career development of executives in the MAN Group. Every year, some 400 executives take part in these development pro-grams, which offer up-to-date information about man-agement topics and strategic developments. Under theauspices of the MAN Group’s internationalization strat-egy, the courses are conducted in English. Thus, seniorexecutives face the essential challenges of strategic cor-porate management in the Executive Management Program every year. Since 2007, especially talented orhigh-potential employees have been able to study fulltime for their MBA at the European School of Manage-ment and Technology (esmt) in Berlin. As another exclu-sive qualification measure, the MAN Academy is coop-erating with esmt to offer an Executive MBA degree on apart-time study basis.

Equal opportunity for men and women throughout theGroup is an important issue for us. In 2006, the numberof women in the commercially oriented MAN AG wasaround 44 percent, and will even reach about 50 percentby the end of next year. In contrast, the number of fe-male staff in management positions is still rather low, asare the numbers of women working in engineering,which we regard as the most relevant personnel market.While this is due to the low numbers of female graduates,it should serve as an incentive to the MAN Group to con-tinue its policy of equal opportunity.

Code of Conduct: strengthened by ombudspeopleThe fundamental principles of equal opportunity andthe programs are formulated in the local works agree-ments of MAN’s business areas. These include the stepsto ensure compliance.

The Code of Conduct—a behavioral code that is based on the mission statement of the MAN Group (which isaccessible at www.man.eu)—provides a uniform frame-work for this. It lays down the basic rules for all employ-ees, serves as an orientation and contains minimumstandards that are mandatory for all MAN Group em-ployees worldwide. The aim of this behavioral guidelineis to support employees in their encounter with legaland ethical challenges in their everyday work routine,provide orientation and encourage appropriate conduct.

A Compliance Board can be consulted for all questions pertaining to the Code of Conduct, and is responsible foradherence to the Code. The Compliance Board comprisesemployees from the Law, Auditing, Personnel, Finance andControlling and Communications departments at head-quarters, with one representative from each of the busi-ness areas. The Compliance Board is responsible for detect-ing any potentially unlawful activities at an early stage,and introducing appropriate countermeasures. The partiesin charge hereby also depend on the information and as-sistance they receive from MAN employees. In 2007, theMAN Group strengthened its Compliance system furtherby introducing an additional, neutral channel for reportsand communications relating to possible misconduct inthe company. As of September 1, 2007, two external om-budspeople have been made available whom employeescan turn to confidentially and anonymously as far as thecompany is concerned.

Both the Code of Conduct and the Mission Statement of the MAN Group are strictly opposed to any form ofdiscrimination. Our principles on the subject of humanrights—also part of the Code of Conduct—are in linewith current international standards, i.e., the UniversalDeclaration of Human Rights and the Fundamental Hu-man Rights Conventions. In our Code of Conduct we ex-press the clear wish that our suppliers and businesspartners comply with these rules. We are well aware thatit is not always possible to verify in detail, yet we do en-sure as far as possible that our counterparts do complywith these criteria. Our international operations workclosely together with the public authorities and institu-tions of the host countries. Our companies considerthemselves to be corporate citizens in their respectivecommunities along with all the obligations and rightsentailed. Our corporate policy aims at exercising re-sponsibility with regard to the local community at the

III MANAGEMENT REPORT 62

respective location. In other words: wherever we gener-ate our value, the local community benefits. At the sametime, we are well aware of our social responsibility inthe national or international regions in which we oper-ate.

Products: economical and safeThe MAN Group is aware of its responsibility for the safety and health of those who use any of its products.Therefore, all products are subjected to elaborate testsand inspections before delivery. All our products complywith the current safety and emission regulations. Cus-tomers receive detailed product information, and are in-structed in the use of our products. In order to repeated-ly improve our products, the MAN Group regularlygathers feedback from its customers, primarily in one-on-one discussions.

Internal suggestions program: extended success rateOur new system of ideas management has shown signifi-cant effects. The new model is being consistently appliedat almost all our business locations in Germany and Aus-tria. The incentives for employees to participate werestrengthened by the special bonuses in numerous cam-paigns. In 2006, there was a notable increase in sugges-tions (15,330) and persons submitting suggestions(6,180). This resulted in yet another rise in the sugges-tions quota, by three percentage points, to reach 40 per-cent. As a result of the reduced processing time, the im-plementation quota rose to 65 percent.

Research and Development

€ million 2005 2006

R&D expenditures 499 396

R&D expenditures by manufacturingbusiness areas in % of sales

4.3 3.4

Internally funded R&D 370 297

R&D workforce (annual average) 3,987 3,174

R&D rate: a solid 3.5 percentTurbines, large-bore diesel engines, gear units and reac-tors have an extremely long service life. Consequently,environmental protection—in terms of consumption of energy and other resources, extended maintenanceintervals, or lower emissions—plays a major role in thedesign and operation of our products. In the case of theengines and turbines, R&D emphasis is on low consump-tion and minimum emissions, along with recyclabilitycompatible with maximum safety, quality, efficiencyand dependability. In order to secure the marketability ofour product ranges, we continuously invest in their fur-ther development. At 3.5 percent, the research and devel-opment quota is less than in previous years, which is due,however, to changes in sales revenue occasioned by vari-ous divestments. Special efforts are being applied to fur-ther shorten the interval between development and themarket introduction of a product (time to market), tocontinue extending our technology leadership. Our busi-ness areas assign their R&D units to those locationswhich, as competence centers, bear responsibility for aproduct line (such as engines). This is a setup that allowsthe experience gathered by the workshops and mechan-ics, as well as customer requirements, to be rapidly inte-grated into product development. This also benefits theenvironment, since any environmental impact caused bythe use of our products, irrespective of type of operation,can be eliminated quickly.

Management of ideas

4,000

2004 2005

6,000

8,000

10,000

12,000

Proposals

Incoming Implemented Implementation ratio

20060

2,000

14,000

16,000

50%

54% 65

%

63

Capital expenditures

€ million 2005 2006

For tangible and intangible assets 412 446

For investments 28 1,214

Total capital expenditures 440 1,660

of which acquisition of Scania shares – 1,174

Amortization/depreciation/write-down 378 328

Capital expenditures for tangible and intangible assets, by business area

Energy consumption: lowered Other than steel, energy is one of the most important resources in the mechanical engineering industry. Ourenergy consumption has significantly decreased, whichis also due to the sale of the energy-intensive businessarea MAN Roland. Yet we still feel obliged to maximizeefficiency in our use of energy. Therefore, concrete meas-ures for the efficient use of energy have been introducedat almost all locations of the MAN Group. Energy man-agement comprises the important areas of pressurizedair production, workshop heating systems and lighting.Yet feeding secondary electricity into our own network isalso one of our implementation strategies.

At 5.4 million gigajoules, our energy consumption in2006 was more than 13 percent less than in the previousyear. Of this amount, 1.4 million gigajoules were derivedfrom natural gas. The possible use of renewable forms of energy was also analyzed during the reporting period.Photovoltaic systems for energy production at some locations in southern Germany were also considered. So far it has not been possible to realize this idea, as thestatic properties of the industrial roof areas proved in-sufficient. Still, the technology for the exploitation of renewable forms of energy is an important part of theproduct range of the MAN Ferrostaal and MAN TURBObusiness areas. Other indirect causes of energy con-sumption, resulting from traveling, transport or productoperation, are not recorded at Group level.

54 %CommercialVehicles

4 % OtherIndustrial Services 1 %

Diesel Engines 30 %

Turbo Machinery 11 %

Environmental expenditures

€ thousand

02004 2005

1,000

2,000

3,000

4,000

2006

Environmental investment in improving technologyIn 2006, MAN locations spent €2.3 million on environ-mental outlays in production plant and its moderniza-tion or overhaul. Besides the ecologically and economi-cally efficient operation of the production plants, theseinvestments were primarily directed at the environmen-tally oriented further development of all MAN products.We are regularly raising our benchmarks in terms of theusability, efficiency, safety and environmental compati-bility of our products. Sustainability aspects are an es-sential component of our production processes—fromthe drawing board via manufacture and marketing to operation on the part of the customer.


Energy consumption

02004 2005 2006

1

2

3

4

5

in millions of gigajoules

6

Natural gas/fuel oil

02004 2005

500

1,000

1,500

2,000

in thousands of gigajoules

Natural gas Fuel oil

2006

Water consumption/wastewater volume

0

2

4

6

8

10

million m3

Tap water Industrial water Wastewater

2004 2005 2006

Water consumption: decliningDespite rising production volume, consumption of drink-ing water in the entire MAN Group in the year 2006 hasfallen by 10 percent, to around 0.79 million cubic meters.This is chiefly due to the deployment of modern water-saving production processes, which, in turn, are the out-come of the rigorous enactment of environmental pro-grams at the respective locations.

Industrial water (for cooling purposes) and circulation wa-ter reached a level of 10.1 million cubic meters in 2006—a slight rise (4.8 percent) on the previous year. Measuredagainst the total volume of water required, 93 percent was sourced from our own springs and streams and only 7percent from the municipal networks. The MAN Groupdoes not use water in a way that significantly burdens anyecosystems. The spring and surface water recycled inclosed- and open-loop coolant circuits is mostly used forcooling. Our production locations pollute neither potablewater sources nor groundwater. Parallel to the gain in pro-duction volumes, the amount of wastewater rose to justunder 1.6 million cubic meters.

Emissions: significant reductionsEmissions are calculated according to the Federal Envi-ronment Agency’s emission factors. Despite the signifi-cantly higher production volumes the direct emission ofgreenhouse gases were reduced by more than 18 percentto 157,500 tonnes (t) of CO2 equivalent. This demonstratesthe effectiveness of many energy-saving projects. In thecase of indirect emissions of climate-relevant gasesthrough the consumption of power and remote heating,the figure for external generation amounted to around275,800 tonnes of CO2 equivalent. This is 9 percent lessthan the amount generated in the previous year. This fig-ure does not include indirect emissions relating to traveland transport nor to emissions caused by product use.The MAN Group does not use consumables or resourcescontaining CFCs or SF6 which would generate furthergreenhouse emission. The diesel engine emissions con-tain traces of N2O, which are registered only qualitativelyfor engine development reasons.

Solvent rise: production-relatedAll the locations record their own solvent consumptionin accordance with the Volatile Organic Compounds(VOC) ordinance, in force since 2001. It applies to surfacecleaning and coatings. Wherever technology supportsthe use of water-based paints, changes have been made.During the reporting period, the consumption of sol-vents was first registered on a comparative basis. Itamounts to the high figure of 2,837,56 tonnes, which is attributable to the great increase in production.

65

Materials consumption: constantly improvedOne of the express aims of our production plants is to re-duce raw and input materials consumption per location.A reduction in the weight of the products and in the con-sumption of the input materials yields cost benefits. Ad-ditionally, any organization validated by EMAS (the EcoManagement and Audit Scheme) is required to formu-late quantifiable goals. These, in turn, encompass a re-duction in raw materials, energy and other resources.The MAN Group chiefly processes steel, copper, alu-minum, mineral oil and a variety of plastics. As produc-tion in 2006 was much higher, the year saw an expendi-ture of €7,087 million on materials—about €1,000million more than in 2005.

Waste: high recycling rateThe long service life of the MAN Group’s products andproduct systems leads to low disposal frequencies. Theproducts themselves chiefly comprise readily recyclablematerials such as metals, plastics and mineral oil prod-ucts. The amount of waste accruing during productionprocesses within the MAN Group depends, just as energyconsumption, very largely on the figures shown by ourCommercial Vehicles business area. In 2006, solid wastetotalled around 189,800 tonnes.

Our endeavor is to achieve less and less solid waste perproduct and, as far as possible, recycle such waste. In2006, 95.8 percent of the solid waste was recycled. Fluc-tuations in the recycling percentage are related to the ir-regular accrual of MAN company waste requiring super-vised disposal. Hazardous waste is removed by licensedspecialists and disposed of by expert companies. MANplaces a particular emphasis on the recycling of metals.The MAN Group’s foundries and casting shops are primepractitioners of recycling. We source most of the inputmetals from the external recycling process, but are alsoreclaiming as much as 5,800 tonnes of the metal shav-ings and scrap resulting from production by reincorpo-rating it in the casting process.

Emissions

0

50

100

150

200

CO2 equivalents (1,000 t)

250

300

Direct emissions Indirect emissions

2004 2005 2006

Emissions

02004 2005 2006

75

150

225

300

375

Air pollutants (t)

450

525

SO2 NOxCO Dust

Quantity of waste

02004 2005 2006

14

28

42

56

70

1,000 t

84

98

112

126

140

Not in need of monitoring for recycling

In need of monitoring for recycling Particularly in need of monitoring for removal

Particularly in need of monitoring for recycling

In need of monitoring for removal

Other environmental influences No record is kept of the pollution caused by vehicles usedby logistics companies. In most cases, multimodal sys-tems are deployed, in other words, one and the sameproduct is successively moved by several different modesof conveyance. The direct impact of MAN products onbiodiversity (diversity of species) cannot realistically be quantified, as the impact of the products very muchdepends on how they will be used by the customer.

The total space of the MAN Group’s location is 4,803,603square meters, none of this, however, impenetrable or in-accessible. The areas we use are not biodiverse. We do notproduce in protected zones. There are presently no exist-ing or planned business units located in protected orsensitive areas. Therefore, there is no aggregate changeto natural habitats. As a consequence, MAN has onlyadopted sustainability targets referring to its own loca-tions but not biodiversity. Any species included in the Red List found in those areas with business operations,are not recorded. In 2006, fines for environment-rele-vant infringements of the law were not reported. Therewere no environment-related criminal proceedings.

Suppliers: firm requirementsIn order to achieve our corporate and sustainabilitygoals, we apply high standards not only to ourselves butalso to our key suppliers whose materials and servicesare directly used in our production processes. Our sup-pliers must satisfy the following criteria: they are re-quired to implement environmental rules and discloseessential environment-related aspects in the manufac-ture of the products they supply. They must ensure com-pliance with current environmental regulations and actsin all their operating areas and processes, and they mustcreate the preconditions for an ongoing improvement toenvironmental protection. All this is part of the approvalprocess according to EMAS/DIN EN ISO 14001, DIN EN ISO9001 and the Risk Management Manual of MAN AG.Within the MAN companies, Purchasing is integratedinto the Environment & Quality Management Systems.Hence, environment- and quality-conscious purchasingis an essential component of the Purchasing Guidelinesand Process Instructions for locations validated/certi-fied/approved according to EMAS/DIN EN ISO 14001.Every year, MAN Nutzfahrzeuge rewards its best suppli-ers with its Trucknology Supplier Award, thus expressingits appreciation for good and partnering relationships.

Prospects: continued growthIn the interests of ongoing sustainable development, theMAN Group aims to continue on its course of growth. Amajor emphasis here falls on the encouragement of tech-nical innovations that focus on reduced emissions andfuel consumption, improved efficiency and the exploita-tion of alternative sources of energy. Another growth fac-tor will be the opening up of new markets—above all inChina, India and Eastern Europe. In this regard, MAN hasalready opened a new truck assembly plant in Polandthis year, and in 2008 a MAN TURBO plant will be com-mencing production in China.

Targets: better products and processesDuring the reporting period, the MAN Group has under-taken a great many measures to further strengthen itscommitment to sustainability. In production there wasan emphasis on the careful use of resources, supportedby process optimization. Progress was made in the devel-opment of products, with beneficial effects for the envi-ronment. The continuing focus on core areas of businessresulted in a sustainable safeguarding of MAN’s futureand its jobs.

The MAN Group will continue to pursue its sustainabil-ity objectives in the ecological, economic and social areas. In product development, this means compliancewith exhaust standards, as well as the improvement ofalternative drives and projects for biofuels of the secondgeneration. In the MAN organization, knowledge transferis being promoted across all business areas. Another goalis the further improvement of production processes ofMAN Diesel and MAN TURBO.

For the coming years, the MAN Group has defined rele-vant environmental targets for each of its locations.


2004 2005 2006

Energy consumption (GJ)

Total 6,420,069 6,300,100 5,435,897

Direct energy consumption, classified by primary energy source (GJ)

Solid fuels 248,798 0 20,477

Liquid fuels 772,394 1,292,401 1,005,100

Gaseous fuels 2,196,633 1,736,579 1,442,154

Propane 3,488 2,633 2,363

Total 3,221,313 3,031,612 2,470,094

thereof

fuel oil 160,125 266,974 306,814

natural gas 2,195,770 1,735,558 1,440,848

diesel 599,724 882,600 680,825

fossil fuels 248,798 0 20,477

gasoline 7,268 117,587 6,186

liquid gas 3,488 2,633 2,363

acetylene 716 966 1,303

hydrogen 147 55 3

methanol 727 653 782

heavy fuel oil 4,316 24,586 9,637

lubricant 0.2 0.3 856.8

Indirect energy consumption (GJ)

Electricity 2,180,036 2,071,552 1,858,683

District heat 1,018,720 1,196,935 1,107,120

Total 3,198,756 3,268,488 2,965,803

ENVIRONMENTAL ACTIVITIES ACCORDING TO GRI GUIDELINES (GLOBAL REPORTING INITIATIVE)

Energy

67


Water

Waste

2004 2005 2006

Total water consumption (m3)

Total 9,614,144 10,528,992 10,898,572

Drinking water 974,662 884,498 793,281

Industrial water 8,639,482 9,644,495 10,105,291

Annual extractions of ground and surface water (m3)

Fountain water 3,493,627 3,999,895 3,757,086

Process water (stream) 5,145,855 5,644,600 6,348,205

Wastewater (m3)

Total 1,256,547 1,801,939 1,619,312

2004 2005 2006

Total volume of waste by type and form of treatment (t)

Total 190,118 190,094 189,372

thereof recycling 182,831 182,063 181,378

not in need of monitoring 139,834 137,902 147,090

in need of monitoring 29,088 28,715 22,438

particularly in need of monitoring 13,909 15,446 11,850

thereof removal 7,287 8,031 7,994

in need of monitoring 3,895 4,520 4,363

particularly in need of monitoring 3,392 3,511 3,631

Recycling ratio 96.2 % 95.8 % 95.8 %

2004 2005 2006

Emissions of gases relevant to the climate (t CO2 equivalent)

Total 504 893 496 918 433 289

thereof direct emissions 207,409 192,949 157,469

thereof indirect emissions 297,484 303,969 275,820

through consumption of electricity 202,743 192,654 172,858

through consumption of district heat 94,741 111,315 102,962

NOx, SO2 and other significant air emissions by type of emission (t)

SO2 32 89 43

NOx 430 386 507

CO 117 125 118

Dust 35 40 45

Emissions

69

As of December 31, 2006

Shareholding%

Sales€ mill

Headcount atDec. 31, 2006

MAN Nutzfahrzeuge AG, Munich, Germany 100 6,273 12,571

MAN Nutzfahrzeuge Österreich AG, Steyr, Austria 100 1,380 3,091

NEOMAN Bus GmbH, Salzgitter, Germany 100 1,071 1,499

NEOMAN Bus Vertrieb GmbH, Ismaning, Germany 100 429 287

NEOMAN Bus GmbH, Stuttgart, Germany 100 260 653

MAN Türkiye A.S., Akyurt Ankara, Turkey 100 328 2,617

MAN STAR Trucks & Busses Sp. z o.o., Tarnowo Podgórne, Poland 100 306 3,012

MAN Automotive (South Africa) (Pty.) Ltd., Johannesburg, South Africa 1) 100 294 722

MAN Nutzfahrzeuge Vertrieb GmbH, Munich, Germany 100 2,549 4,640

MAN ERF UK Ltd., Swindon, Wiltshire, UK 1) 100 678 971

MAN Nutzfahrzeuge Süd AG, Vienna, Austria 100 815 990

MAN Vehículos Industriales (España) S.A., Coslada (Madrid), Spain 1) 100 625 546

MAN Camions et Bus S.A., Evry Cedex, France 100 456 489

MAN Truck & Bus S.A., Kobbegem (Brussels), Belgium 1) 100 160 121

MAN Last og Bus A/S, Glostrup, Denmark 100 144 188

MAN Nutzfahrzeuge (Schweiz) AG, Otelfingen, Switzerland 100 127 118

MAN Last og Buss A/S, Lorenskog, Norway 100 112 204

MAN Veículos Industriais (Portugal) S.U. Lda., Algés (Lisboa), Portugal 1) 100 77 94

MAN Engines & Components Inc., Pompano Beach, USA 100 45 43

MAN uzitková vozidla Ceská republika spol. s.r.o., Cestlice, Czech Republic 100 113 79

MAN Kamion és Busz Kereskedelmi Kft., Dunaharaszti, Hungary 100 74 116

MAN Gospodarska vozila Slovenija d.o.o., Ljubljana, Slovenia 100 41 34

MAN STAR Trucks Sp. z o.o., Nadarzyn, Poland 100 330 296

MAN Úzitkové Vozidlá Slovakia s.r.o., Bratislava, Slovakia 100 41 45

NEOPLAN Omnibus GmbH, Plauen, Germany 84 92 349

MAN Kamyon ve Otobüs Ticaret A.S. Ankara, Turkey 100 301 157

MAN Diesel SE, Augsburg, Germany 100 725 2,609

MAN Diesel A/S, Copenhagen, Denmark 100 851 2,386

MAN Diesel Ltd, Stockport, UK 100 101 286

MAN Diesel S.A., Villepinte, France 100 151 650

MAN Diesel Singapore Pte. Ltd., Singapore 100 50 154

PBS Turbo s.r.o., Velka Bites, Czech Republic 100 14 147

MAN Diesel Canada Ltd., Oakville, Canada 100 37 33

MAN Diesel North America Inc., New York, USA 100 23 81

MAN Diesel Australia Pty. Ltd., North Ryde, Australia 100 23 37

Rostock Diesel Service GmbH, Rostock, Germany 100 12 25

SELECTED CONSOLIDATED COMPANIES

2)

2)


As of December 31, 2006

Shareholding %

Sales € mill.

Headcount at Dec. 31, 2006

MAN TURBO AG, Oberhausen, Germany 100 547 1,932

MAN TURBO AG Schweiz, Zurich, Switzerland 100 287 627

MAN TURBO S.r.l. De Pretto, Schio, Italy 100 37 206

MAN TURBO Inc. USA, Houston, USA 100 74 20

MAN TURBO South Africa (Pty) Ltd., Elandsfontain, South Africa 100 11 52

MAN DWE GmbH, Deggendorf, Germany 3) 100 96 420

MAN Ferrostaal AG, Essen, Germany 100 460 690

MAN Ferrostaal Air Technology GmbH, Essen, Germany 100 18 76

MAN Ferrostaal Industrieanlagen GmbH, Geisenheim, Germany 100 128 158

MAN Ferrostaal Power Industry GmbH, Essen, Germany 100 150 76

MAN Ferrostaal México S.A. de C.V., Mexico, D.F., Mexico 100 51 136

DSD de Venezuela C.A., Caracas, Venezuela 100 43 99

DSD Construcciones y Montajes S.A., Santiago, Chile 100 79 133

MAN Ferrostaal do Brasil Comércio e Indústria Ltda., São Paulo, Brazil 100 17 75

MAN Ferrostaal Automotive GmbH, Essen, Germany 1) 100 135 1,468

MAN Ferrostaal Piping Supply GmbH, Essen, Germany 1) 100 130 95

RENK AG, Augsburg, Germany 76 342 1,493

MAN Finance International GmbH, Munich, Germany 1) 100 – 154

MAN Financial Services GmbH, Munich, Germany 100 – 80

MAN Financial Services plc, Swindon, Wiltshire, UK 100 – 26

1) Sales and headcount include companies under operational management.2) Shares held by MAN Capital Corporation, New York.3) Shares held by MAN AG.

2)

71

GLOSSARY

3C – Combat Climate ChangeAn initiative set up by international companiesdemanding the integration of climate issues into the world of markets and trade.

Code of Conduct Configuration of the basic rules of conduct for employ-ees of a company. A code of conduct is comprised ofethical guidelines (ethical code), a declaration of con-formity for the capital market (compliance, corporategovernance) and management guidelines, as well ascodes of conduct stemming from policy guidelines and mission statements.

Corporate Governance Code The German Corporate Governance Code includes theessential statutory requirements for the managementand monitoring of German companies that are listed on the stock exchange, as well as nationally and interna-tionally approved standards of effective and responsiblecorporate control. The Code was approved by a govern-ment committee in 2002, and has been updated annual-ly since then. The Code is designed to promote the con-fidence of national and international investors, cus-tomers, employees, and the general public in the management and monitoring of German companieswith a stock exchange listing.

DIN ISO 9001 The quality management standards of the DIN EN ISO9000 series were introduced in 1987. They form thebasis for quality assurance and quality management inmany organizations engaged in different industry sec-tors worldwide. The DIN EN ISO 9000:2000 series ofstandards provides a structure for quality management(QM) systems by covering all the basic requirements.The company’s QM system is translated into the termsof this structure, and reviewed at regular intervals by anaccredited external certification authority.

DIN ISO 14001 The environmental management standards of the DINEN ISO 14000 series were introduced in 1996. In con-junction with the k EMAS of 2001, they define environ-mental management both conceptually and in terms of

content. They give companies systematic support in setting up an environmental management system inaccordance with an internationally recognized standard,and facilitate certification. This provides companieswith an effective tool for systematically registeringenvironmental strains, and for improving the environ-mental situation on an ongoing basis.

EEV standard (Enhanced Environmentally Friendly Vehicle) The EEV standard is the most ambitious Europeanexhaust standard for buses and trucks at the presenttime. The particularly environmentally friendly vehiclesexceed even the exhaust quality of the

kEuro 5 standard, due to become mandatory for all new types of truck and bus in October 2008.

Environmental Management and Audit Scheme (EMAS) The European Union’s Environmental Management andAudit Scheme directive (no. 761/2001) formulates guide-lines for the voluntary participation of companies andauthorities in the communal system of the EuropeanUnion for the introduction of environmental manage-ment systems. As a more extensive variation of k DINISO 14001, this can be combined with existing manage-ment systems, but it does obligate companies to publishenvironmental declarations on a regular basis.

Euro 4, Euro 5 These European emission standards for commercialvehicles prescribe the step-by-step reduction of exhaust pollutants. The toxins to be reduced include carbon monoxide, nitrous oxides and soot particles.Euro 5 goes into effect in the fall of 2008.

GRI (Global Reporting Initiative) The Global Reporting Initiative is an international organ-ization which has developed a unified system for thevoluntary reporting of economic, social and environ-mental factors at the company level and at the level of organizations. The GRI was established in 1997 with the aim of creating internationally recognized and comparable guidelines for a company’s reporting of its economic, social and environmental activities.


IMO (International Maritime Organization) An organization under the auspices of the UnitedNations, which sets regulations for emissions from shipengines, among other responsibilities.

ILO (International Labour Organization) A special United Nations organization for the formula-tion and enforcement of international labor and socialstandards.

Return on Capital Employed (ROCE)Ratio of operating profit to average capital employed in industrial areas in addition to the equity capital offinancial services. The ROCE target for the MAN Group is over 22 percent.

Return on Sales (ROS) Ratio of operating profit to net sales. The ROS target forthe MAN Group was set at 8.5 percent.

Reference: Under this heading, you will find MAN sustainability projects extending

far into the future. We will report on results in the2009/2010 issue.

MAN Nutzfahrzeugeis the biggest among the MAN Group companies and one of the leading suppliers of commercial vehicles and transport solutions.− Trucks from 7.5 to 50 t for every application− Buses and coaches for regular services and

luxury tourist travel− All-in, all-round vehicle services− Vehicle, marine and industrial engines

MAN Dieselis the world leader in two-stroke marine main engines and among the leaders in the global market for large four-stroke diesel engines.− Two-stroke diesel engines for marine and power plant

applications− Four-stroke diesel engines for marine propulsion systems,

onboard power generation, and power plants− Combustion ignition and spark-ingited engines for stationary

power applications, on shore and offshore− Exhaust-driven turbochargers and propulsion systems− MAN Diesel PrimeServ: worldwide aftermarket services

MAN TURBOis among the worldwide leading manufacturers ofthermal turbomachines; it has production plants in Germany, Switzerland, and Italy.− Broad product range of compressors, turbines, and chemical

reactors− Engineering, manufacture, installation and servicing of

complete machine lines and complexes for the oil and gas sector, primary matrials industry, and for power generation

− Worldwide unique center for assembling testing machine lines of up to 1,000 t

MAN Ferrostaalis a worldwide supplier of industrial services.− Foremost prime contractor for international petrochemical,

oil and gas, energy, and fuel complexes. Project development, project management and financing arrangements for turnkey industrial plants.

− Sales and service organization for manufacturers of transport, infrastructure, printing and specialty equipment. Automotive industry services: just-in-sequence preassembly of complete modules.

− Service and sales platform for the MAN Group.

The MAN Group

MAN Ferrostaal Group

¤ million 2005 2006


Sales 1,414 1,379



ROS (%) 4.5 8.6

ROCE (%) 10.9 31.2

MAN Diesel Group

¤ million 2005 2006


Sales 1,666 1,802



ROS (%) 7.1 12.7

ROCE (%) 22.8 46.6

MAN TURBO Group

¤ million 2005 2006

Order intake 850 1,498

Sales 694 908



ROS (%) 6.2 7.8

ROCE (%) 18.5 30.5

MAN Nutzfahrzeuge Group

¤ million 2005 2006


Sales 7,377 8,685



ROS (%) 6.7 8.0

ROCE (%) 17.9 26.8

Contact persons

In our sustainability report, we provide the public—particularly our shareholders, customers and employees, as well as public authorities and the media—with information on our sustainabil-ity activities, and invite them to engage in constructive dialogue. You are welcome to contact us for any additional questions, sug-gestions and critique.

Corporate Communications:Wieland SchmitzLandsberger Strasse 11080339 Munich, GermanyPhone +49. 89. [email protected]

Environmental and Safety Management:Georg StemberVogelweiherstrasse 3390441 Nuremberg, GermanyPhone +49. 911. [email protected]

Investor Relations:Silke Glitza-StambergerLandsberger Strasse 11080339 Munich, GermanyPhone +49. 89. [email protected]

Human Resources:Jörg SchwitallaLandsberger Strasse 11080339 Munich, GermanyPhone +49. 89. [email protected]

IMpRINT

publisher:MAN AktiengesellschaftWieland SchmitzCorporate CommunicationsLandsberger Strasse 110

Editorial Department:Inés Gutiérrez (resp.) Phone +49. 89. 36098-357Georg Stember

publisher: BurdaYukom Publishing GmbH Konrad-Zuse-Platz 11, 81829 Munich, Germany, Phone +49. 89. 30620-0

Editors: Wolfgang Miller (resp.), Timm Saalbach, Marlies Viktorin (Managing Editor)

Editors, International Edition: Patricia Preston, Asa C. Tomash

Graphics: Heike Nachbaur, Blasius Thätter (Art Director)

Images: Elke Latinovic

production: Wolfram Götz (resp.), Franz Kantner, Cornelia Sauer

photos: p. 2, p. 12–16, p. 22, p. 26–31, p. 38–43, p. 50–53: Hauke Dressler; p. 5: Andreas Pohlmann/MAN; p. 10, p. 58: Golden Section Graphics; p. 25: Roman Klonek; p. 37: Erika Koch/corbis; p. 46: Enker/laif; p. 47: contrasto/ laif, Klaus Lefebvre/Theater Oberhausen; p. 49: Harmsbergung; all other MAN

printer: Pinsker Druck und Medien, Pinskerstrasse 1, 84048 Mainburg, Germany

The entire 2007/2008 Sustainability Report of MAN AG can be downloaded as a PDF document from www.man.eu. It is also available in German.

Sustainability ReportMAN AG 2007/2008

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Sustainability ReportMAN AG2007/2008

MAN AktiengesellschaftLandsberger Straße 11080339 Munich, GermanyPhone +49. 89. 36098-0Fax +49. 89. 36098-250www.man.eu

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