Full Transcript for Episode 405: Markus Ewecker of Tungco GmbH

breaks during the day, so he can leave. 42 00:02:44.449 --> 00:02:49.569 And Konstantin is now in the fifth grade on the 43 00:02:50.099 --> 00:02:53.719 We call it gymnasium, so it's pretty new for him. 44 00:02:57.360 --> 00:03:04.060 But so far, they like it. Let's see how that goes. 45 00:03:04.379 --> 00:03:07.180 How does Jolanda feel about Vinny being able to leave 46 00:03:07.199 --> 00:03:10.599 the school? 47 00:03:10.909 --> 00:03:14.599 No problem. As you know, Vincent is a little troublemaker 48 00:03:14.659 --> 00:03:18.280 here and there, so that could be... Maybe that could 49 00:03:18.319 --> 00:03:21.150 go a little bit in the wrong direction, but so 50 00:03:21.250 --> 00:03:22.210 far he behaved. 51 00:03:22.229 --> 00:03:26.270 Touch wood. And Famous Harvey? 52 00:03:26.889 --> 00:03:33.560 Famous Harvey, I didn't make that much of pictures of 53 00:03:33.620 --> 00:03:38.099 him for Instagram, for whatever reason. I don't know why. 54 00:03:38.219 --> 00:03:44.939 He is still the sweetest dog on earth. 55 00:03:45.639 --> 00:03:50.419 Yeah, in fact... Most people who may not have met you, 56 00:03:50.479 --> 00:03:53.590 but somehow they're connected to Tungco and then they end 57 00:03:53.689 --> 00:03:57.250 up following you on LinkedIn or some social media, whatever. 58 00:03:57.689 --> 00:04:00.449 Most of the times when something comes up about Marcus, 59 00:04:00.509 --> 00:04:04.150 it's like, how's famous Harvey? 60 00:04:04.229 --> 00:04:12.650 Yeah, that's correct. He is so sweet dog and totally 61 00:04:12.710 --> 00:04:17.550 afraid of this situation. The small ones, once they shout 62 00:04:17.569 --> 00:04:20.370 at him, he's like, and he runs away. 63 00:04:23.649 --> 00:04:28.850 Well, tell us a little bit about Markus E. Wecker 64 00:04:28.949 --> 00:04:31.170 and how you got in the scrap business. 65 00:04:32.529 --> 00:04:41.889 Oh, that was... back in 1996 after the one-year military. 66 00:04:42.410 --> 00:04:49.600 So I went to military one year, 95 to 96. 67 00:04:49.600 --> 00:04:56.439 And I was already prepared to study. And then on 68 00:04:56.519 --> 00:05:01.600 a Saturday morning at a breakfast table with my parents, 69 00:05:01.699 --> 00:05:07.089 my mom saw the... we hire from ELG at that time. 70 00:05:07.370 --> 00:05:07.850 Oh really? 71 00:05:07.990 --> 00:05:12.029 Yeah. And, uh, she thought, uh, maybe Marcus, before you go, 72 00:05:12.310 --> 00:05:16.389 go study, try to make, uh, uh, to be a 73 00:05:16.430 --> 00:05:20.779 trainee at, at that company. So I, I went there with, uh, 74 00:05:21.139 --> 00:05:24.019 with no target. So I was, uh, I was just 75 00:05:24.100 --> 00:05:28.019 me known. I was not nervous, nothing. And, uh, it 76 00:05:28.060 --> 00:05:33.019 looked like, uh, I, uh, I did it. So, uh, um, 77 00:05:33.699 --> 00:05:39.959 They hired me and then another two guys. One left 78 00:05:40.480 --> 00:05:42.550 after a half year because it was too hard for 79 00:05:42.579 --> 00:05:50.129 him in the business. But yeah, and the other one 80 00:05:50.189 --> 00:05:52.589 is still at ELG. It's now 30 years. 81 00:05:52.769 --> 00:05:53.050 Really? 82 00:05:53.149 --> 00:05:55.550 Yeah, it was 1st of September 1996. So I'm 30 83 00:05:55.550 --> 00:05:57.689 years now in scrap business. Wow. 84 00:06:01.240 --> 00:06:04.620 And was that where you started with Harry? Yeah. 85 00:06:04.720 --> 00:06:08.019 Harry was, uh, Harry was at ELG as well. Yes. 86 00:06:09.040 --> 00:06:13.759 And then you spent some time at Cronomet as well, or? 87 00:06:13.939 --> 00:06:18.259 Yeah. Um, four years at a daughter company, Crony Leg 88 00:06:18.360 --> 00:06:24.339 located in, uh, in Duisburg. And, uh, uh, we, I've 89 00:06:24.379 --> 00:06:26.040 been there four years. 90 00:06:26.100 --> 00:06:27.079 Yeah. 91 00:06:27.779 --> 00:06:33.360 And then, uh, Seven years afterwards, Scholz. And then from there, 92 00:06:35.259 --> 00:06:36.839 since 11 years now with Tanko. 93 00:06:39.019 --> 00:06:40.939 Can you believe it's been 11 years? 94 00:06:41.259 --> 00:06:46.959 No. The other day, I said to Jolanda, but even 95 00:06:46.980 --> 00:06:51.490 Jolanda is now more than six years with Tanko. Wow. 96 00:06:52.370 --> 00:06:56.850 In January, no, 1st of February, I think, 1st of February, 97 00:06:57.730 --> 00:06:58.930 Next year will be seven years. 98 00:06:59.350 --> 00:07:01.370 Well, I guess if you think about the fact, because 99 00:07:01.769 --> 00:07:05.990 it was what Consti was two right after she started, right? 100 00:07:06.509 --> 00:07:11.850 No, Consti was four when she started. 101 00:07:11.870 --> 00:07:15.850 Okay, all right. Because I remember, was it the grocery 102 00:07:15.930 --> 00:07:17.389 provider that she was working for? 103 00:07:17.470 --> 00:07:24.100 Yeah, she worked for one of the biggest grocery stores 104 00:07:24.160 --> 00:07:25.339 in the purchasing department. 105 00:07:25.829 --> 00:07:29.439 Yeah, because we were with famous Adam on the ski trip. 106 00:07:29.600 --> 00:07:31.220 I remember we were getting out of the car when 107 00:07:31.240 --> 00:07:34.639 you got that phone call. You were like, my God. 108 00:07:34.660 --> 00:07:35.959 These guys. 109 00:07:36.379 --> 00:07:38.100 These fucking guys. 110 00:07:39.540 --> 00:07:44.319 Yeah, that was, what was it? Mont Tremblant, no? 111 00:07:44.579 --> 00:07:48.160 Of course. You said it very well. That's better than 112 00:07:48.240 --> 00:07:49.319 Ryan's bonjour. 113 00:07:51.980 --> 00:07:53.019 Or Adam's French. 114 00:07:53.220 --> 00:07:57.259 Yeah, of course. My favorite story about that trip is 115 00:07:57.480 --> 00:08:01.779 whenever Ryan goes into the ski shop and he's like, bonjour. 116 00:08:02.779 --> 00:08:05.259 And the lady's like, you're not from here, are you? 117 00:08:05.310 --> 00:08:07.430 And he was like, how did you know that? She 118 00:08:07.470 --> 00:08:08.709 was like, from your bonjour.

119 00:08:13.149 --> 00:08:16.910 Yeah, I mean, Ryan always tries to speak German, but 120 00:08:17.470 --> 00:08:19.089 that doesn't work either. 121 00:08:19.110 --> 00:08:20.209 Sprechen Sie Deutsch. 122 00:08:20.420 --> 00:08:22.160 Yeah, yeah. All right. 123 00:08:22.240 --> 00:08:28.689 Well, so several years in the scrap business, been 11 124 00:08:28.689 --> 00:08:32.129 years with us. What's one of your favorite things? I mean, 125 00:08:32.750 --> 00:08:36.809 to stay in an industry for that long and not 126 00:08:37.210 --> 00:08:40.620 transfer out, go somewhere else. What's one of your most 127 00:08:40.740 --> 00:08:43.759 favorite things about being in the scrap industry? 128 00:08:47.279 --> 00:08:55.590 Everything. It sounds a little strange when you say every 129 00:08:55.629 --> 00:08:59.389 day something new. Of course, it is not every day, 130 00:08:59.669 --> 00:09:06.169 but so often something new that you maybe were not 131 00:09:06.230 --> 00:09:12.870 aware of, you didn't know. So that is quite interesting. 132 00:09:13.230 --> 00:09:18.919 And to grow... in the business is what I like. 133 00:09:19.340 --> 00:09:23.419 You know, remember back in 2015 when we started in 134 00:09:23.970 --> 00:09:27.909 Ireland with more or less, let's say it like this, 135 00:09:27.970 --> 00:09:30.289 with more or less nothing. Right. And now where we 136 00:09:30.389 --> 00:09:32.490 are now with Tanko GmbH. 137 00:09:32.769 --> 00:09:33.769 Yeah. 138 00:09:34.129 --> 00:09:40.960 That is already a nice trip so far. An excellent trip. 139 00:09:41.250 --> 00:09:43.240 It has been a fun ride. We were talking about 140 00:09:43.279 --> 00:09:45.919 that the other day, the Ireland where I think the 141 00:09:45.960 --> 00:09:48.559 first loads that we sold out of there, me, you, 142 00:09:49.080 --> 00:09:52.509 and Josh Mitchell, we went and got the pallets ready, right? 143 00:09:52.509 --> 00:09:55.379 Yeah, in our in our white dresses yeah in our 144 00:09:55.429 --> 00:09:58.179 white dresses we look like we were breaking bad yeah 145 00:09:58.200 --> 00:10:00.279 i uh i thought pretty much the same i think 146 00:10:00.679 --> 00:10:03.879 everyone who sees that picture yeah i think he think 147 00:10:04.039 --> 00:10:12.019 uh we are uh uh the crystal meth boys. 148 00:10:10.899 --> 00:10:13.570 Yeah and when we get into st they're really gonna think. 149 00:10:13.429 --> 00:10:18.129 That yeah probably or for sure. 150 00:10:19.299 --> 00:10:23.740 So talking about the tungsten landscape a little bit, obviously 151 00:10:23.799 --> 00:10:30.210 it's changed since the last 24 months. We're seeing prices 152 00:10:30.230 --> 00:10:34.649 that we've never seen before. Where do you think things 153 00:10:34.710 --> 00:10:38.190 are headed? What are you kind of hoping for for 154 00:10:38.210 --> 00:10:38.809 the industry? 155 00:10:40.429 --> 00:10:46.309 I'm really hoping that it calms down to a certain degree. 156 00:10:47.350 -->

00:10:53.610 I mean, the last... 18 months and in, in particular 157 00:10:53.889 --> 00:10:58.620 the last or the, the first five months of this year, 158 00:10:59.559 --> 00:11:02.100 that was not just a ride. That was a hurricane. 159 00:11:02.320 --> 00:11:02.500 Yeah. 160 00:11:03.419 --> 00:11:08.240 So, uh, um, if everything comes back to normal, uh, 161 00:11:08.580 --> 00:11:11.279 at least a little, uh, I mean, we are living 162 00:11:11.299 --> 00:11:15.980 in a world right now where, uh, really daily, uh, 163 00:11:16.909 --> 00:11:22.909 landscape changes so that is definitely something you need to 164 00:11:22.980 --> 00:11:29.399 prepare yourself for but again as I said I hope 165 00:11:30.139 --> 00:11:35.980 a little bit of normality comes into the business so 166 00:11:36.590 --> 00:11:39.669 for example our guys in the yard now they have 167 00:11:39.690 --> 00:11:43.330 a little bit time to calm down I mean they 168 00:11:43.610 --> 00:11:48.649 were really scrambling yeah Yeah, that's for sure. 169 00:11:49.110 --> 00:11:51.509 And so talking about the guys in the yard, I 170 00:11:51.549 --> 00:11:56.029 know you did a vision planning session recently with the 171 00:11:56.090 --> 00:11:56.769 entire team. 172 00:11:56.929 --> 00:11:57.769 Yeah. 173 00:11:58.129 --> 00:12:00.460 And just you were giving the report the other day. 174 00:12:00.509 --> 00:12:04.659 It seems like Tunko GmbH is in a good position 175 00:12:04.700 --> 00:12:07.519 to grow. So just what kind of what are you 176 00:12:07.559 --> 00:12:08.299 expecting there? 177 00:12:08.320 --> 00:12:14.039 Yeah, as I as I said the other day, my 178 00:12:14.100 --> 00:12:21.629 vision is always growing slowly. When you remember what I said, 179 00:12:21.950 --> 00:12:25.580 you don't start with the roof. You always start with 180 00:12:25.600 --> 00:12:28.360 the concrete or I don't know how you call it. 181 00:12:28.779 --> 00:12:30.580 And then the walls and then the roof. 182 00:12:30.799 --> 00:12:33.000 Start with the foundation. 183 00:12:34.580 --> 00:12:39.379 And that is how we do the business. Sometimes you 184 00:12:39.419 --> 00:12:44.649 miss opportunities. Sometimes because... You do it a little slower, 185 00:12:44.950 --> 00:12:49.309 but on the other hand, that is then a healthy growth. 186 00:12:49.850 --> 00:12:56.250 I mean, we see from the past companies, they tried 187 00:12:57.240 --> 00:13:00.820 to speed up everything too fast, and then when you 188 00:13:00.860 --> 00:13:05.360 come to a certain situation, you cannot handle it. That 189 00:13:05.399 --> 00:13:09.980 is then the problem. Too much promises made to people, 190 00:13:10.179 --> 00:13:11.179 and you cannot keep it. 191 00:13:12.230 --> 00:13:14.809 Yeah. In the States we say oversell and under deliver. 192 00:13:14.970 --> 00:13:15.210 Yeah. 193 00:13:16.169 --> 00:13:19.370 What about, uh, let's just tag in, uh, let's get 194 00:13:19.409 --> 00:13:23.779 to the final minutes

here. Let's tag in on HSS GMBH, 195 00:13:23.960 --> 00:13:27.340 because I think a lot of people know the Tonko brand. 196 00:13:27.379 --> 00:13:31.620 They know the Tonko GMBH, but HSS is obviously we 197 00:13:31.659 --> 00:13:34.559 know that's a metal, but it's also our other division 198 00:13:34.580 --> 00:13:38.740 that you're, that you're running. So Just unpack a little bit, 199 00:13:38.799 --> 00:13:41.639 like what are some of the products that we go after? 200 00:13:41.659 --> 00:13:43.500 What are some of the products that we offer? 201 00:13:43.519 --> 00:13:49.210 HSS recycling is mainly, as the name says, is focused 202 00:13:49.370 --> 00:13:56.629 on all kind of HSS, like M2, M35, you know, 203 00:13:56.669 --> 00:14:02.789 to name the most common grades. And then everything what 204 00:14:02.870 --> 00:14:10.009 is included, because in an HSS alloy, You have chromium, vanadium, molybdenum, tungsten, 205 00:14:10.029 --> 00:14:14.090 and cobalt. So everything what belongs to these metals we 206 00:14:14.350 --> 00:14:15.009 are looking for. 207 00:14:15.570 --> 00:14:21.000 And when you say like M2, for example, what is 208 00:14:21.059 --> 00:14:23.460 the main make? Just give us the breakdown of what 209 00:14:23.799 --> 00:14:24.980 is in an M2. 210 00:14:25.539 --> 00:14:29.940 In M2, you have normally 4% chrome, 4.8% molybdenum, 6% tungsten, 211 00:14:30.639 --> 00:14:41.639 and 1.8% vanadium. That is so-called high-speed steel. It's mainly, 212 00:14:42.100 --> 00:14:49.519 as the name says, for a certain speed to grind, 213 00:14:50.799 --> 00:14:56.039 to drill, to cut, whatever. So that is our technique. 214 00:14:57.889 --> 00:14:58.570 bread and butter. 215 00:14:58.730 --> 00:15:01.649 And then the balance of every, if you add all 216 00:15:01.690 --> 00:15:03.190 those up, whatever the balance is. 217 00:15:03.230 --> 00:15:05.830 Yeah, it's mainly iron. You have some traces in it. 218 00:15:05.909 --> 00:15:08.870 You have some traces in it, like a little bit 219 00:15:08.909 --> 00:15:13.950 of nickel, a little bit of this and that. But 220 00:15:14.169 --> 00:15:17.389 in principle, the balance is iron. 221 00:15:18.009 --> 00:15:20.929 Now, when we're talking about these tungsten prices that you 222 00:15:20.950 --> 00:15:24.070 were talking about, like a hurricane, one of the things, 223 00:15:24.110 --> 00:15:26.210 in fact, the session that I just left, they were 224 00:15:26.250 --> 00:15:31.309 talking about substitution. Correct. And that is, so tungsten price 225 00:15:31.350 --> 00:15:35.029 gets so high. Now, all of a sudden, people start 226 00:15:35.049 --> 00:15:37.970 to look at for other options that may be good enough. 227 00:15:38.789 --> 00:15:41.929 So in other words, if you take a tungsten carbide drill, 228 00:15:43.009 --> 00:15:45.350 just like a bit you would put in your drill 229 00:15:45.389 --> 00:15:49.009 at home, but it might be used by GE or 230 00:15:49.169 --> 00:15:52.710 Boeing or somebody like that, they might would say, okay, well, 231 00:15:53.210 --> 00:15:55.649 for this part, we have to have to make this 232 00:15:55.730 --> 00:15:58.070 part or to drill this hole, we have to have 233 00:15:58.110 --> 00:16:02.389 tungsten carbide, but to drill this hole over here, high 234 00:16:02.450 --> 00:16:03.590 speed may be good enough. 235 00:16:04.009 --> 00:16:04.570 That's correct. 236 00:16:04.669 --> 00:16:08.690 So do you feel like that from an HSS recycling, 237 00:16:08.730 --> 00:16:13.429 like our business, we could see maybe some contraction on 238 00:16:13.470 --> 00:16:16.330 the Tunko side, but then maybe some growth in the 239 00:16:16.490 --> 00:16:18.350 HSS side. Is that a possibility? 240 00:16:18.669 --> 00:16:24.029 That is a Possibility, but just to a certain degree. 241 00:16:25.100 --> 00:16:28.419 It will not be like that you lose 20% or 242 00:16:28.419 --> 00:16:31.200 30% on the tungsten carbide side and then you add 243 00:16:31.240 --> 00:16:34.139 it to the HSS. That will not happen. But as 244 00:16:34.179 --> 00:16:38.799 you said already, sometimes an HSS drill is definitely enough. 245 00:16:39.159 --> 00:16:39.960 Yeah. 246 00:16:40.159 --> 00:16:45.159 There's no necessity then to have the more expensive tungsten 247 00:16:45.179 --> 00:16:45.740 carbide drill. 248 00:16:45.980 --> 00:16:46.679 Right. 249 00:16:46.860 --> 00:16:48.659 That's definitely for sure. 250 00:16:49.080 --> 00:16:49.220 Yeah. 251 00:16:49.649 --> 00:16:54.870 I mean, the year in HSS is since we took over. 252 00:16:55.190 --> 00:16:57.990 As I said to you in the very beginning when 253 00:16:58.009 --> 00:17:00.789 we took over HSS fully, I said I want to 254 00:17:00.850 --> 00:17:07.130 grow it slowly and look just for the profitable businesses. 255 00:17:08.869 --> 00:17:11.950 And I think that is a good direction. 256 00:17:13.099 --> 00:17:17.859 Well, you're doing a fantastic job, Marcus. I cannot believe 257 00:17:17.960 --> 00:17:21.160 it's been 11 years but thank you it's been it's 258 00:17:21.200 --> 00:17:24.200 been a great 11 years and hopefully uh we've got 259 00:17:24.259 --> 00:17:27.619 as many more as we would like and um both 260 00:17:27.700 --> 00:17:30.460 from going all the way from ireland like you said 261 00:17:30.920 --> 00:17:32.750 us being in a building where it was just me 262 00:17:32.789 --> 00:17:35.049 and you and josh mitchell and a and a forklift 263 00:17:35.670 --> 00:17:37.990 uh getting things ready to where we are today uh 264 00:17:38.890 --> 00:17:42.069 it's super impressive i'm proud i hope you're proud of 265 00:17:42.170 --> 00:17:45.339 it yes it's great to have your family involved in 266 00:17:45.359 --> 00:17:48.920 the business a shout out to yolanda She does great 267 00:17:48.980 --> 00:17:52.789 with the finances. And also excited, I think, you and 268 00:17:52.829 --> 00:17:55.950 you're bringing Vinny to the States maybe in the summertime? 269 00:17:56.369 --> 00:17:57.190 Next year, yes. 270 00:17:57.609 --> 00:18:00.130 So we're going to introduce him to a little bit 271 00:18:00.210 --> 00:18:04.019 of American culture and American work life. So looking forward 272 00:18:04.039 --> 00:18:08.359 to that. But seriously, love you. Appreciate you. Proud to 273 00:18:08.400 --> 00:18:12.759 be together. And I'm glad at the ITIA in Toronto 274 00:18:12.839 --> 00:18:15.779 years ago, you said yes, that you'd make that jump. 275 00:18:15.960 --> 00:18:16.869 So appreciate you, man. 276 00:18:17.210 --> 00:18:17.950 Thank you very much. 277 00:18:18.069 --> 00:18:20.970 Thanks for being on Cliff's Notes. Everybody listening, this has 278 00:18:21.009 --> 00:18:32.859 been another episode. Thank you for joining in. Cliff's Notes 279 00:18:33.019 --> 00:18:38.799 Cliff's Notes Cliff's Notes Cliff's Notes