09/14/2000 – TDS Press Release

Audi A6 components for assembly to China

On 14 September, TDS/E Germany is officially opening its new, 22,000 m² packaging hall in the 'TDS/E Emden' logistics centre at the Nordkai, Emden. TDS Group, which specialises in logistics solutions for the automotive industry, will be packaging so-called CKD sets of the longer A6 version on behalf of Audi for the Chinese market. The sets, which consist of approx. 1,600 components per vehicle, will be shipped to Changchun in China and assembled there. The plant in Emden is designed to cope with the productive capacity of 36,000 A6 per year planned by Audi for the Changchun plant on a two-shift basis.

The 'TDS/E Emden' logistics centre was built in just five months and was ready for occupation to start production on schedule in July 2000. This involved removing around 170,000 cubic metres of earth, or 20,000 lorry loads. Because of the high groundwater level and the composition of the ground, the entire hall area had to be supported by a foundation of 1,780 piles driven as far as 22 m into the ground.

'TSD/E has to date invested nearly 40 million DEM in Emden', explained TDS Executive Vice President, Michael Neumann. There are plans to increase the hall's capacity to 33,000 m² in anticipation of further programmes.

The reason for TDS' commitment in Emden is a 6-year contract with Audi; this is an unusually long-term commitment in the fast-moving automotive industry, which is marked by frequent changes in models and rapid technological progress. 'We are proud of the fact that Audi is showing its confidence in us with this contract, and is giving us the opportunity to engage in long-term planning at our Emden plant', says Neumann. 'China is one of the few volume markets for the automotive industry that is still largely undeveloped. It is an honour for the TDS Group to be a partner to Audi for this key market. We see this as a confirmation of our technological edge in export packaging for the automotive industry'.

The tender submitted by TDS won out over numerous competitors. According to Neumann, three criteria were undoubtedly decisive in winning the order: the know-how TDS has demonstrated in many similar projects, the absolute commitment to quality, and its integrated economic approach.

While conventional plans are based on a four-step approach, the TDS approach moves the A6 components through the plant in a three-step process. One intermediate storage stage is cut out, which leads to considerable cost and time savings. The TDS system solution is the key to operative quality assurance. It not only manages the stock but also controls the entire logistics process. This effectively avoids wrong goods movements, part numbers or volume allocations.

TDS/E is already a major employer in Emden. 'We currently employ 130 operators and 15 administrators, who all have unlimited employment contracts', says Filip De Witte, Vice-President German Operations of TDS/E with head office in Emden. De Witte, who was previously the plant manager in Emden, has been responsible for the operative management of all TDS plants in Germany since June. 'When the plant expansion has reached its final stage, we will be employing more than 300 people here'. An attractive working environment and an elaborate training programme, which instils commitment to the company's high quality standards in the staff, ensure that the workforce is loyal and highly motivated.

The export packaging and shipping of vehicle 'sets' for local assembly, which the experts call 'CKD - completely knocked down', is common practice among car makers throughout the world. The reason is usually comparative labour cost advantages. The CKD process is also used in order to avoid the high customs duties imposed by many countries on the import of ready-to-drive vehicles.

About TDS

TDS Group is a leading global provider of logistics services to the automotive industry. In addition to Audi, car manufacturers such as Chrysler, Ford, VW, Seat and Jaguar as well as well-known component suppliers like Visteon, Johnson Controls, ArvinMeritor and others use TDS services worldwide.

The TDS Group's head office is in London, Ontario (Canada). The company's history goes back more than fifty years, beginning in Canada in 1941 with the foundation of the 'Livingston Export Packaging Company'.

In the 1999 financial year, the TDS Group, with its 1,600 staff, achieved a consolidated turnover of approximately US$ 80 million. For the 2000 financial year, which ends on 30 September, a 30 % increase in turnover is predicted, to approximately US$ 104 million. Turnover consists almost totally of added value, i.e. without any bought-in services or traded goods. 'The driving force for growth is TDS/E (Europe)', explains Neumann. 'We will more than double our turnover here in the 2000 financial year compared to 1999.'

In 2000, all subsidiaries and joint ventures worldwide were brought together under the common TDS brand image, in line with the global 'one company' approach. TDS has 19 plants in four continents. All facilities are ISO 9000 certified: numerous awards testify to the TDS Group's high quality standard. In addition to its Emden plant, TDS/E's German locations also include Saarlouis/Saarwellingen and Heilbronn.