German drives-maker Lenze is changing its sales operation from a product-based to a customer-oriented structure, and is spending around £11.6m to introduce a Europe-wide logistics and distribution system.

The company is also changing its legal status to a joint-stock company, although there are no plans to float the family-owned concern. Lenze chairman Peter Lohse explains that the change is necessary for tax reasons and to create the transparency needed to fuel the company` growth. He expects turnover this year rise by at least DM130m (£43.3m) to exceed DM780m (£260m).

The new pan-European logistics and distribution operation will supply drive components to Lenze`s European subsidiaries via a centrally-driven system, irrespective of where the products are made or stocked. "Time and efficiency are critical factors," says Lohse.

• Lenze has bought a 90% stake in the Italian firm Gerit Trasmissioni, giving it direct access, for the first time, to Europe`s second-largest market for machinery and system engineering. Gerit, which employs 80 people and had a turnover last year of around £22.6m, has been working with Lenze for more than 40 years. Like Lenze, it is family-owned, and the two managing directors and previous owners will continue to run the company. Lenze now owns 38 companies worldwide.