Proactively Manage the Group’s Fixed Costs

Andritz actively pursues a cost management strategy of maintaining a one-to-one "make/buy ratio” for the components used to produce its products.  This allows Andritz companies to source a significant proportion of non-essential components, systems, and equipment from third-party suppliers, while focusing its in-house manufacturing activities on more complex key and high quality products.  All main system components will be pre-assembled in-house to secure the highest quality possible. In periods of Sales contractions, the Group uses this strategy to reduce dependence on outsourcing, thereby maintaining in-house utilization levels and reducing external costs.