Steen Nielsen Jørn Munch Jensen

LCN How is the Laundry Systems Group developing in terms of both structure and markets? Steen Nielsen: The idea behind the merger of the Jensen Group and Ipso ILG was that both wanted to extend their activity in the laundry business beyond their original core market. So, Ipso wanted to be come a sizeable player in industrial laundry, while Jensen was exploring ways of entering the commercial sector.

We decided to redefine Jensen as a company supplying equipment and services for the laundry industry and asked: what are our customers producing and where do we find them? The answer was: we find them in commercial laundries, linen suppliers and in central laundries (heavy-duty laundries producing 3tons a day or 25tons an hour).

So Jensen's area of activity involves supplying products for all areas : washing, flatwork-finishing, and garment finishing. As a result of the merger, we [LSG] have all the necessary competence in both heavy-duty and commercial sectors.

Labour is the predominant cost in both sectors. In future we feel that there will be an ever increasing amount of linen for processing, but a decreasing workforce.

To address the growing need for automation in the heavy-duty sector Jensen relies on "four columns" of technology: finishing, washroom, materials handling and system software and process technology. We are building our expertise in both sides of each area.

Geographically, the impact of the merger has been most visible in the USA. The market structure there is rather specific, compared to Europe. The USA has more and bigger on-premise laundries and needs more heavy-duty equipment. We set up LSG North America to deal with this market structure by integrating the Jensen and Ipso salesforces under a single reporting structure.

LCN: What is the relationship between LSG and the Jensen Group and how does it work? SN: There are two divisions - heavy-duty and commercial. Each has its own plants and concentrates mainly on its own particular market. Jensen is the heavy-duty division and has eight plants: Jensen Sweden (garment handling), Jensen Denmark (flatwork finishing), Jensen-Senking in Germany (tunnel washers and washroom technology), Jensen Switzerland (garments), Jensen UK (Futurail monorail) Jensen Netherlands (flatwork finishing). D'Hooge in Belgium, shared with the commercial division, makes washer-extractors and ironers and the Panama City plant, again shared, supplies washer-extractors.

The Jensen Group has fully-owned sales and service centres in Germany, France, UK and Switzerland, plus Jensen Asia (Singapore), Jensen South Africa and the joint company, LSG North America.

LCN: Who are some of the chief personnel within Jensen LSG and what roles do they play? SN: LSG has a light management structure. Jørn Munch Jensen (son of Jensen's founder) is still active in the business, travelling, talking to customer and spotting trends. He also plays an active role in ETSA (European Textile Services Association).

The chief executive officer is Jesper Jensen (the third generation of the Jensen company). He manages the company with the help of an active group management team. He is the main LSG shareholder and sits on all the boards.

The divisions have their own presidents. As president of the heavy-duty division (I am also a group director of LSG NV), I am involved in the operation and structure of the company. I also have a role in dealing with the customers.

Everyone at management level has a sales background and we all talk to customers to pick up any new requirements they may have and support them. Karim Ben Yahia is vice-president of sales and marketing and part of his job is to spot gaps in the range and to act in co-ordination with the production and engineering centres. Each division co-ordinates the various activities - product development, production structure, sales and marketing.

If linen is treated outside the home, LSG will be involved. The heavy-duty division focuses on industrial laundries.

Jørn Munch Jensen: We are all sales and marketing people. If they do their job, I can play golf - with the customers, of course! LCN: What have been Jensen LSG's main achievements in the last two years? SN: We enjoyed a high rate of growth in 2000, and, despite the economic situation, managed to maintain that level during 2001. This success stems from our being either number one or number two in all our markets. We have built the company into a one-stop shop, taking turnkey responsibility for our customers and that is an important achievement.

LCN: Groups often grow by acquisition and merger. What can you tell us about Jensen's and LSG's plans? JMJ: After four years of acquisition and organic growth, we are concentrating on organic growth. We are expanding our services - software and so on - and improving the interface between the technologies. We are consolidating now, working with customers on improving the way we serve them.