Schneider Electric unveils its `NEW2004' program


Henri Lachmann, chairman and ceo of Schneider Electric.

Paris - Henri Lachmann, chairman and ceo of Schneider Electric , briefed the press on his company's "New 2004" program which changes the functioning of the company and gives more responsibility to the directors of each division.

The program's targets and paths for action apply to the company as a whole, but it's up to each unit, country and function to integrate NEW2004 into everyday operations through tangible action plans, he said.

Mr. Lachmann spoke about a 'real' convergence seen in electricity, automation and communication, as a result of integrating Internet technologies. He stated that only Schneider Electric and Siemens AG were capable of addressing this convergence.

"Electricity, no matter how it's generated, is critical to the production of virtually every product and service we use," he said. "We're in the business of making electricity available to users under the best possible conditions. Estimates show that spending on power generation over the next 20 years will exceed the entire amount invested in the 20th century. Just think about what that will mean in terms of demand for distribution and control!"

He said Schneider will continue to sell through partners that add value, and cited this as one of the reasons for their success in Eastern Europe and China. Schneider's products are designed not only for the end-user, but also for partners, offering ease of installation and multi-use products that reduce stocking needs.

Service offers will follow a similar model: Services offered will be highly specialised, with Schneider functioning as the main contractor, and using partners onsite. However he emphasised Schneider will not do facilities management, but instead offer services to increase productivity via automatic systems, connecting automation, supervision and SAP systems, and offering remote monitoring via the Web for traceability and diagnostics.


Mr. Lachmann said that his program should boost Schneider's 2001 sales of EUR 9.8 billion to EUR 12 billion by 2004.

''With the products and services we have today, we could serve a potential available market worth around EUR 100 billion worldwide. By expanding our lineup with new specialties and services, i.e., by covering demand in our key markets more extensively, we believe we can increase our potential accessible market to EUR 210 billion by 2004 and to EUR 500 billion in ten to twelve years.''

Control Engineering Daily News Desk
Katherine Tyrka, Control Engineering Europe, Paris

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