'We are getting to know the American market better and better'

KSE Process Technology, founded in 1973, is a global player in dosing and weighing systems for animal and livestock feed. From flour to corn, salt, vitamins, and minerals: animal and livestock feed can contain up to 50 raw materials. KSE's machines, process lines, and intelligent software ensure that all ingredients quickly and precisely reach the end product. The family-owned company from Bladel employs around 160 people, including twenty R&D specialists. Additionally, KSE has a flexible production team of 80 people for busy periods. KSE is active in nearly 50 countries, mainly in Europe and Asia.

Consolidation wave

For about four years, KSE has also been trying to establish a foothold in the North American market. In Europe – especially in the Netherlands – the past twenty years have seen a wave of consolidation, accompanied by large-scale technological innovation and automation. This shift has not yet occurred in the North American market, explains Dennis van Lankeren, Head of Sales North America at KSE. “Many factories date back to the 1950s and '60s, and are primarily geared towards bulk production.”

Meanwhile, KSE sees an increasing demand in America for specific animal and livestock feeds that can be produced in small batches. The company expects the American market to professionalize and renew at a rapid pace in the coming years. “Even large agro-food companies like Nutreco are becoming increasingly active in America. That is a sign for us that significant investments are forthcoming.”

Constantly in contact

In 2015, KSE began its American venture with an extensive market exploration: what are the main developments, who are the potential customers, and where are they located? “We then actively approached these companies,” says Van Lankeren. “We also attended all relevant trade fairs; first as visitors, later with our own booth.”

This search has now led to four projects; three in the US and one in Canada. In the execution of these projects, KSE encountered different laws and regulations. “Take, for example, the American rules regarding electricity and wiring. In Europe, we have the CE certification, which precisely prescribes what a machine must comply with. In the US, they often work with so-called performance-based standards. Your machines must meet a certain standard, but as a manufacturer, you are free in how you achieve that. In addition, the rules often vary by state. It is therefore important to constantly engage with customers and authorities to determine what is and is not possible.”

According to Van Lankeren, companies should not take the step to America lightly. “In America, they say 'go big or go home'. It takes a lot of time and money to comply with the rules and gain the trust of the market. The advantage is that the orders are generally larger than in the Netherlands.”

Closer to the market

Van Lankeren is satisfied with the progress so far. “We are getting to know the American market better and better. We already stationed a service employee in Ohio; the St. Louis area may follow soon. We are also considering setting up a local sales office, so we are even closer to the market. And in the long term, we may establish a production facility on site.”

Business Week

During the transition to North America, KSE has received support from the BOM for about two years. Van Lankeren has greatly benefited from events organized by the BOM and partners. As an example, he mentions the Business Week North America.