In Discussion with Helmut Knauthe “EPC Responsibility is One of the Keydrivers”

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Helmut Knauthe has been responsible for the Technology, Innovation & Sustainability division of Thyssenkrupp Industrial Solutions since 2013. With Achema Daily, Helmut Knauthe talks about technological trends, the opportunities, and the challenges of Industrial Solutions.

PROCESS WORLDWIDE: Mr. Knauthe, what in your view are the most important current trends in international plant engineering, at Marine Systems and System Engineering?

Helmut Knauthe: The plant engineering environment continues to be very challenging. The prices of raw materials, especially oil, remain at a low level. The overcapacities existing in some areas are holding back investment, leading to strong price and competitive pressure. Regional and international tensions are also inhibiting investment.

PROCESS WORLDWIDE: Where do you see the biggest growth opportunities for Thyssenkrupp in plant engineering?

Knauthe: Generally wherever new plants are being built! Here we have strong technological advantages over our competitors. But we’re also stepping up our service business. The longer low-investment phases continue, the greater the need for service. As existing facilities grow older, service requirements increase.

PROCESS WORLDWIDE: What are the main challenges for international plant engineering companies and how is Thyssenkrupp positioning itself?

Knauthe: The biggest challenge is currently the volatility of our target markets. In particular, this is creating difficulties for the award of new plant construction contracts. On the project side the key drivers are aspects such as EPC/overall responsibility and local content coupled with challenging contractual terms. Industrial Solutions has to consider very carefully which projects have good prospects of success. To win over customers to our products and services, we are continuously strengthening our international presence and competitiveness. In parallel with this our engineers are working every day to improve our products and tailor them to the needs of our customers. This is especially being made possible by close cooperation between our business units and regions.

PROCESS WORLDWIDE: What is your assessment of the plant engineering market environment and where are the main growth markets (sectors, regions)?

Knauthe: With major projects subject to intense competition, we will need to win a lot of mid-size projects to achieve our targets. Our regional presence and local knowledge will help us with this. We are located close to our customers and know their needs inside out.

PROCESS WORLDWIDE: What progress has Thyssenkrupp made lately in digitization and Industry 4.0?

Knauthe: Industrial Solutions is developing digitization projects in all business units and implementing these in a targeted way. Our Tech Center Control Automation plays a pioneering role in this. We cover the full range of topics, including Virtual Reality/Augmented Reality, Big/Smart Data Analytics, Predictive Maintenance, Digital Twin, Human Robot Interface, and Additive Manufacturing. At Industrial Solutions, we have combined these projects in a cross-cutting initiative, but we're also working closely with other business areas and Corporate on the individual topics.

PROCESS WORLDWIDE: A lot of plant engineering companies are feeling competitive pressure from China/Asia. How can Thyssenkrupp withstand this competition?

Knauthe: There’s no one-size-fits-all answer to this. If only because, depending on the business unit, China is also our supplier and partner. But in terms of direct competition we need to consider very carefully whether it makes sense to compete, i.e. what our prospects of success are. Our goal is to always have the better technological solution. That’s our plus factor!

PROCESS WORLDWIDE: Is Industrial Solutions working on any interesting research projects?

Knauthe: We’re currently focusing on areas such as resource efficiency, the transition to renew­able energies, climate protection, and digitization. I can give you some examples: The Cement Technologies business unit is working on new cement additives and the use of alternative fuels. The Electrolysis & Polymers Technologies business unit is developing big redox flow batteries and water electrolysis cells for the production of H₂, for example using wind and solar power. Industrial Solutions is also working closely with the Steel Europe business area and Thyssenkrupp on the Carbon-to-Chem project. Our digitization initiative cuts across all business units.

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