Metrohm sets itself apart from other companies. Its business structure is not one that many instrument firms choose to emulate, but it has served the company well for decades. In fact, the firm estimates its 2011 revenues to be CHF 300 million ($333.3 million = CHF 0.90 = $1). Metrohm is unique because of the selection of products it offers, its approach to manufacturing and, most notably, how it operates.

Metrohm offers products for ion analysis and is perhaps best known for its ion chromatography (IC) systems. It ranks second in the IC market, where it accounts for 14% of the market, according to IBO estimates. “Since Metrohm entered the field of IC 25 years ago, it became an affordable and easy-to-use method to analyze all types of ionic species,” Dr. Kai Henning Viehweger, Metrohm executive vice president, Sales and Marketing, told IBO. One way in which the company attempts to improve ease of use is by using a single reference standard to analyze six orders of magnitude, according to Dr. Viehweger. Metrohm is also the leading supplier in the electrochemistry market, with a 15% market share.

Founded in 1943 by Bertold Suhner, Metrohm introduced its first product, a pH meter, in 1948. The company has evolved to offering instruments for titration, voltammetric trace analysis and IC. Among its most popular products are the Titrando for potentiometric and Karl Fischer titration, the Professional IC ion chromatograph and the VA Computrace for voltammetric trace analysis, according to Dr. Viehweger. For each technique, Metrohm offers laboratory, online and at-line instruments. Metrohm’s acquisitions include Brinkmann (see IBO 7/15/06), Applikon and Eco Chemie, now known as Metrohm Autolab. Applikon accounts for 15% of the market for bioreactors and fermentors, according to IBO estimates.

End-markets served by Metrohm include chemical, pharmaceuticals, water, environmental, food, surface finishing and biofuels. The company is focused in particular on the chemical and pharmaceuticals markets, including testing for pH, conductivity and a tablet’s water content. “Water/environmental is the second end-market where Metrohm has the competence to solve a wealth of analytical tasks when it comes to ion analysis,” Dr. Viehweger said. For this market, as well as others, Metrohm offers inline sample preparation techniques for IC, which are designed to automate the processing and injection of samples such as surface water, groundwater and wastewater that contain foreign substances that can hinder analysis. The company is also focused on a simple but tried-and-true tactic: service. “A worldwide service organization helps with questions of applications, identifies the right instrumentation and keeps the instruments up and running for many years,” Dr. Viehweger said. The service organization extends to 80 different countries, including 45 distributors.

The business structure of Metrohm is what is most distinctive. Metrohm operates as a foundation, and thus is free of loans, investors and shareholders. The company has been 100% owned by the Metrohm Foundation since 1982. Prior to that, shares were owned by Mr. Suhner and two partners, who decided to put all their shares into a foundation. Profits are put back into the business or are used to support local social, cultural and educational projects.

Metrohm’s manufacturing approach differs from that of many of its competitors. Nearly all of the company’s products, including parts like nuts and bolts, are manufactured at its Herisau, Switzerland headquarters. There is a three-pronged rationale for this, according to Dr. Viehweger. “First, we want to determine and control the quality of our products. Second, we want to have control on the delivery times. For companies like ours, it is sometimes difficult to buy special components in medium to small series within reasonable delivery times in the market. Third, we protect our intellectual property better this way.” The firm is also able to guarantee its customers that all parts for their instruments will be available 10 years after the instrument is taken off the market. If ceasing production of a component is imminent, Metrohm will order it for a service period of a decade to be stored in a warehouse.

In addition, keeping manufacturing in house enables Metrohm to employ local individuals, including apprentices, who account for 10% of the company’s workforce. “Metrohm believes in long-term planning,” Dr. Viehweger said. “This applies in instrument development as well as personnel development.” He added that Metrohm’s inability to be sold helps employment security.

Discussing the economic downturns of 2002 and 2009, Dr. Viehweger told IBO that Metrohm did not reduce its workforce during either period. Although able to offer employment security, Metrohm is not, of course, immune to economic obstacles. The biggest trial associated with the recent recession, he said, was to maintain the company’s staff despite sales falling nearly 10% in 2009.

Metrohm’s recent undertakings include an upgrade of its headquarters in Herisau. The company invested more than CHF 116 million ($128.8 million) in the new facility, which took nearly three years to complete and contains three buildings: R&D, production and sales/administration. Three hundred and sixty of Metrohm’s 1,600 employees work at the Herisau location.

Metrohm plans to continue to concentrate on its electrochemical business segment and expand its subsidiaries as necessary. “Metrohm sells 80% of its products through its 40 owned subsidiaries,” Dr. Viehweger said. The company also intends to continue to make its partnerships a priority. “We strive for win-win cooperation in our markets with well-known partners like Anton Paar, LAR, Sartorius, Sigma-Aldrich [and] Socorex.”