Best practice: Plasser & Theurer railway construction machinery
What do export-oriented companies need to get their international business on track? Edith Schatz-Limbeck, Director Finance at Plasser & Theurer, talks about the successful cooperation between the Austrian railway construction machinery exporter and RBI.
How high is the export rate in a company like P&T?
Edith Schatz-Limbeck: Plasser & Theurer has been the global technology leader for track laying and maintenance machines for 70 years. Our aim is to support the railway system worldwide. We focus on sustainable, resource saving and clean solutions for the construction and maintenance of railway infrastructure. Our export ratio is correspondingly high, at over 95% in 2022. We really are a very export-orientated company.
In how many countries have your machines already been sold?
ESL: Our export market now covers 100 countries, with our machines being used in 110 countries.
Where were the first machines used outside Austria?
ESL: The first tamping machine was exported to the Federal Republic of Germany in 1955 – two years after the company was founded. Exports to Great Britain and the USA followed just two years later.
What are the biggest challenges in the export business?
ESL: The challenges in the export business are very diverse. That's why our operational projects are so exciting. Of course, political risks play a significant role, depending on the respective target country. As we often deal with state buyers, we pay particular attention to this aspect.
Political risks are often unpredictable and cannot always be localized geographically. The geopolitical developments of recent years have shown how fragile and complex the current environment in which we operate is. Think about, for example, problems in international shipping and the issue of numerous sanctions and regulators. This is why we are constantly reassessing political risks during the project term.
Of course, economic risks, which lie within the sphere of our contractual partners, also play a role. The higher the order volume, the more important it is to structure contracts in a way that minimizes risks. The products offered by RBI and international banks certainly help us in this respect.
At what stage of the business does RBI come into play as a banking partner?
ESL: That depends very much on the project in question. This is because customers are often not only interested in procuring our products, but also in corresponding export financing solutions. This means that our customers receive a "complete package" from us. This one-stop shop certainly characterizes us and offers advantages over our competitors. For such projects, we need RBI's expertise right from the pre-project phase, as supply contracts and financing agreements go hand in hand. Other RBI products, such as trade finance instruments, are only realized after the supply contracts have been concluded, where we also draw on RBI's expertise in the offer and negotiation phase.
Where can RBI provide specific support and what are the advantages?
ESL: A broad international banking network and the willingness to take risks are the most important prerequisites for good co-operation in the export business. In addition to the distinctive expertise of its employees, RBI can draw on a wealth of experience of successfully completed business cases. Furthermore, we particularly appreciate the flexibility and creativity in the structuring of projects.
Which RBI services are utilized for your business?
ESL: In addition to products from the export finance portfolio, we need trade finance products such as bank guarantees or documentary letters of credit for our day-to-day business. Of course, some of our payment transactions are also handled by RBI. We also rely on RBI's expertise in FX management.
What would you recommend to other companies from Austria or CEE, especially exporters, with the ambition to go global?
ESL: Before entering a market, it is important to know the political and economic environment well and to analyze the risks as accurately as possible. Austria offers a wide range of experts who can provide support here. In addition to commercial banks such as RBI, the Austrian Federal Economic Chamber and the Austrian Kontrollbank should also be mentioned.
Which new markets could be interesting for P&T?
ESL: Any market that intends to invest in the railway system is of great interest to Plasser & Theurer. Once the technical requirements and needs have been clarified, we are happy to take on the challenge of developing financing and hedging concepts.
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