<NITIATIVE AND
INFORMATION ARE THE KEY
WHAT'S NewS Issue 2 February 1997
working relations
3
As Royal Ten Cate approaches its third centenary, it looks to the future as an
almost text-book example of how know-how and expertise built over time can be
adjusted and adapted to meet changing economie and market forces. In the 19th
century, the Ten Cates ranked among Holland's textile barons. Now, the company
continues its traditional textile core business - but with a difference. Corporate
treasurer Peter Rietman on the company and what it needs from a bank.
mr. J. Lock (left) and
mr. P. Rietman
(right) of
Koninklijke Ten
Cate. In between
account manager
Hans van Imhoff.
For most of us, textiles probably mean
fabrics. And if we'd been talking to Ten
Cate 50 years ago that would not have
been short of the mark. In fact, the
company still manufactures quality denim
for top brands like Levis. But a closer look
at Ten Cate's 'textiles' show confirms the
company's strategie move into a very
^■lifferent type of 'fabrics' has little to do
^^ith home funishings or high fashion.
High-grade textiles at Ten Cate means
advanced textiles and industrial fabrics
produced primarily from man-made fibres
for specific applications. 'You'll find our
products in airplanes, in tents, in marine
applications, you may have played tennis
or soccer on our artificiai lawns, and
we're even in bullet-proof vests,' Rietman
grins.
EASY RIDE
This sector and the various market-leader
positions Ten Cate enjoys in it draws on
centuries of expertise in developing
textiles for dedicated applications. 'But it
is only one of three sectors,' confirms
Rietman. 'The other two are plastics and
rubber rollers. In all sectors we are
^^ivolved in the manufacture of
components, not end products. So
wherever we operate - here in Europe, in
the US, in the Far East - we are not simply
trying to meet our customers' demands,
but also their customers.' In that respect,
o
0
CL
Rietman thinks bankers have an easier
ride. 'We are all in business and every
business faces the same challenges,' he
argues. 'We have to look at our customers'
customers' questions. So there is one layer
missing in favour of the bank. In that
sense, our job is tougher.'
NO PIECE OF CAKE
The 'job' is to build on the core expertises
within the company and its 25 subsidiaries
worldwide. And Royal Ten Cate brought
in new senior management to achieve that
a couple of years ago. Peter Rietman is
one relatively new face. 'And our
chairman, Frank Schreve, wo actually
came from Rabobank.' Does the fact that
Rabobank is doing increasingly more
business with the company perhaps reflect
Schreve's influence. 'Absolutely not.
Traditionally, we have banked with ABN
Amro. Ten Cate has long operated cross
border, so that made sense. The fact that
we now work with Rabobank is due to
strong bidding and fast reactions to our
needs.' In fact, although the company does
growing business with the bank in
Flolland, the relationship really took off in
Atlanta. That was down to our Jan Reus
and Ten Cate's Jaap Lock. Now, 80
percent of what we do with Ten Cate is
international. 'Now,' says Rietman, 'we
also do business with France and
Singapore. It was no piece of cake for
Rabobank. They beat tough competition
to win our business and they'11 have to
continue competing.'
WORKING OPTIONS
Rietman has a varied financial
background, including treasury at Royal
PTT (now KPN) and some banking
experience, and has clearly been round the
block. Asked if he sees any real difference
in how he, as cliënt, is treated, his answer
is diplomatic. 'What we need from our
bankers is information. And not the kind
of information I can get from my own
screen, but informed insight. More
initiative and proactivity wouldn't be a
bad thing either. Let me put it this way, if I
look at our relationships with banks, then
I would have to come to one of three
conclusions. The first is that our
company's needs are so very simple, banks
only have to offer their most basic
products and we're happy. The second is
that there are bigger, more interesting
clients than Ten Cate. The third is that
bankers haven't really changed their
attitude. For everybody's sake, let's hope
it's the first,' he smiles.
CONCRETE NEEDS
Rietman then goes on to give an example
of a real - and what he considers very
obvious - requirement Ten Cate had in the
Far East. 'We have started up an operation
in Singapore. Our account manager at
Rabobank here in Holland, Hans van
Imhoff, has come up with some pretty
creative solutions for long-term funding
while keeping in mind our forex exposures
which result from an in-flow of US dollars
and a payment requirement in Sing
dollars. This is just one example of how
banks provide real support. And I think
that is the key. But there are still enough
problems needing a solution - you just
have to look at our operations to see that.
Bankers have specific expertise that can
represent real added value for the cliënt.
You know we have quite a few complex
issues in our organization at present. We
could use a bit of help from our good
bankers.'
KONINKLIJKETEN
CATE
Dat Frank Schreve
voorzitter van de directie
is heeft volgens corporate treasurer Peter
Rietman niets te maken met de keuze voor
de Rabobank. Dat zij nu werken met onze
bank in Utrecht, Atlanta, Frankrijk en
Singapore is louter het gevolg van snelle
reacties en concurrerende offertes. Hij
verwacht van de banken echter nog meer
initiatief en een actievere houding.
