After 35 years in the injection molding industry, Sumitomo (SHI) Demag CEO Gerd Liebig is at the crossroad of a generational transition at the machine-building company he has managed for nine years and an energy transition in his Austrian hometown, Enns, which dates back 800 years.
Liebig completes a planned management changeover on Sept. 1 at Sumitomo after overseeing the company's efforts to offer all-electric presses for every market. As he prepares to retire, Liebig also is amping up voluntary work as a board member of the Energy Efficiency Enns (EEG Enns), which aims to supply the Enns area with regionally produced energy.
There are two ways to participate. Those with a photovoltaic system can feed the electricity they don't need into the energy community and those who want to purchase regional green electricity can do so from the energy community. Participants pay a lower electricity price and save on network costs and fees while the region benefits from clean electricity.
Liebig has invested personally in what he calls an independent energy supply, starting with geothermal energy and a heat pump at his house in the city that dates back to 1212. He followed with solar power.
"It's not enough to wait for instructions and decisions from the top; every citizen can change something," Liebig said. "I started privately with green electricity 19 years ago, ignoring the return of such investments. In my experience, such calculations turn out to be wrong every time, and reality shows a better result, for me, for my children, for society and for nature."
Liebig is the board speaker of EEG Enns.
"My role is similar to my professional career in the injection molding industry," he said. "My focus will be to convince the citizens in Enns to invest in solar power and to develop new ideas in wind- and water-sourced energy. What is really different: to convince the consumer to be a member at EEG Enns, with attractive price and the knowledge to buy green electricity."
Liebig also told Plastics News senior reporter Catherine Kavanaugh more about where he is at in his career transition, which didn't bring him to NPE this year.
Q: What will you miss most about NPE?
Liebig: My old friends in the USA, which I have known since the time of the merger between Van Dorn and Demag. They are in different functions and different companies, but all still in the plastics industry.
Q: Do you have any fond memories of the NPE trade show?
Liebig: For many years, the U.S. has been leading the field in the packaging industry. What I remember so well are the high-performance exhibits at NPE, followed by nice evening events in a very relaxing atmosphere with fantastic steaks.
Q: When you look back at your time with Sumitomo (SHI) Demag, how were you able to shape the company's development as CEO?
Liebig: When starting with Sumitomo (SHI) Demag, the company was still marked by former investors outside of our industry.
With my team, I transformed the company from operating in rather defined markets into a real global player by implementing new subsidiaries and embedding Sumitomo (SHI) Demag into the international network of our mother company Sumitomo Heavy Industries. As a result, we have a well-functioning network of sales and service worldwide.
In addition, I started the phase-out of products that had become outdated, putting our full focus on all-electric machines and automation. Furthermore, we intensified our emphasize on industry-oriented application solutions.
Q: After nine years with the company, what comes to mind as the major crisis and major success of your tenure?
Liebig: The major crisis surely was COVID-19. It not only brought our business and private lives to a standstill, it also caused great concern for the health and the lives of the employees, families and friends.
It is this aspect that makes the difference to the other big crisis: the structural crisis in Europe that started before COVID-19 and was certainly intensified by it. This structural crisis is defined by high energy prices, the shortage of skilled workers and the overall poorer conditions.
One of the major successes is related to the crisis. It is the solidarity pact we are living in our company. We do not dismiss our staff in times of hardship, but all stand together and even those who actually would not need to do short-time work participate nonetheless, giving their share, so that everyone will have a safe job.
A second success is our increasing market share for all-electric machines — a clear signal that we did the right thing when expanding our product portfolio by all-electric specialties and automation.
Q: After 35 years in the industry, what changes hearten you most and concern you most?
Liebig: I absolutely appreciate the unique internationalization of Sumitomo (SHI) Demag combined with the greatest possible decentralization, enabling us to unfold full competence with our customers.
Nevertheless, there surely are also clouds. The biggest two are the shortage of skilled workers and the poor image of plastics. And this despite the fact that plastics often is the better solution because of its low weight, its durability and its cleanness. Plastics have become an integral part of packaging and automotive, and we just cannot do without them in medicine.
Q: How have you honored your commitment to combating climate change?
Liebig: For me, the combat of climate change is closely combined with sustainability. Although our focus is on our production and on our products, the whole company is striving to improve. The ongoing improvement of our processes has been awarded with the silver medal from EcoVadis in 2023. But rest assured, we will not stop here and rest on our laurels. We implemented a team working on this strategic initiative.
Q: And what about the energy transition?
Liebig: In fact, we have been in the midst of the process for some time now. Our focus is on our all-electric machine that will help our customers to save energy and produce high-class products. After all, we were the first in the market with such a strong focus on all-electric and even converted our factory in Wiehe (Germany) from producing hydraulic machines to concentrating on all-electric. Both plants — HQs in Schwaig and our plant in Wiehe — are being equipped with photovoltaic.
In addition, I am committed to the private initiative in my hometown pushing the expansion of renewable energies.
Q: What kind of role will you have in remaining with Sumitomo to a limited extent? Will you be like a consultant? Or director of something?
Liebig: As my future role has not yet been conclusively decided, there is noting I can tell you at the moment.
Q: What will be the biggest opportunity and challenge for your successor?
Liebig: Sumitomo (SHI) Demag's opportunities are more than the current crisis might make you think. As more and more injection molders will go for all-electric — even industries that have been hesitating until now like consumer — and since we definitely have the right product, we will be able to grow even further.
But of course, my successor will also face challenges: the shortage of skilled workers, the high energy prices and the situation of the industrial location Germany. However, I am very optimistic that my successor will manage this well.
Q: What one or two activities do plan to devote more time to?
Liebig: As I am a passionate mountain bicyclist and ski tourer, I will spend more time doing both. Living close to mountains in Austria surely helps.