N o v e m b e r 2 0 14
w w w.manufacturingglobal.com
Collaborative Robotics Stimulate Innovation in the Sector
The Marketing Machine: How Technology Can Boost Product Success Lean Just Got Smarter: Enter the 4th Industrial Revolution
Predictive Analytics
TOP 1a0l
Glob ing Manufacatnuires Comp
The Future of Manufacturing Intelligence?
EDITOR’S COMMENT
Big data translates into big cost savings W E L C O M E T O T H E N E W edition of Manufacturing
Global. Our cover feature this month is all about data – or more specifically predictive analytics. Big data is a big deal. Not only can manufacturing managers be alerted of a problem in real-time, they can know in advance of an issue occurring. They say forewarned is forearmed and they would be right – with that level of preplanning, manufacturing plants can dramatically reduce down time and thus save costs. Also in this issue we take a look at how manufacturing companies can promote their own products for optimum financial outcomes. For so long, marketing has been sidelined, often outsourced to companies who know very little about the product they are selling – but in today’s competitive marketplace that approach will fall flat. Finally, we give you our annual run down of the biggest manufacturing companies in the world according to revenue, and discover the secrets to their success.
Enjoy the issue!
Abigail Phillips Editor abigail.phillips@wdmgroup.com 3
Bosgraaf Group offers a total package
Bosgraaf Group’s state-of-the-art systems and service for the production of semihard and hard cheeses, is a result of the company’s extensive experience and innovative technical solutions. With an unrelenting focus on performance, hygiene and sustainability, Bosgraaf’s bespoke production facilities ensure that an optimal solution is found across the organisation to suit the clients’ needs, including the use of robotics in mould handling and treatment lines. Bosgraaf specialises in cheese moulding, handling and pressing systems as well as rack brining, treatment and maturation installations.
info@bosgraaf-group.nl www
www.bosgraaf-group.nl
Contents
Features
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28 People & Skills
Leadership The Marketing Machine: How Technology Can Boost Manufacturers’ Success
14
Technology Lean Manufacturing just Got Smart: Enter the Fourth Industrial Revolution
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How Collaborative Robotics are Stimulating Innovation in the Manufacturing Sector
Top 10
Manufacturing Companies in the World
34 Lean Emerging Predictive Analytics for the Manufacturing Industry
5
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THE E SERIES SINGLE CHIP DLP® PROJECTORS
when it matters.
Contents
56 IBS Paper
company profiles Europe
46 76
46 The Flexitallic Group
The Flexitallic Group
56 I BS Paper Performance Group
AmĂŠrica Latina
Airbus Helicopters of Mexico
66 Blackhawk of Mexico 76 A irbus Helicopters of Mexico
66 112
Australia
Blackhawk of Mexico Kepler Weber
90 Varley Group 96 Rhino Tanks
Brazil 104 A EA: Association of Automotive Engineering 112 Kepler Weber
Varley Group
126 Teksid
90
Africa 140 Tetra Pak
126 Teksid
104
AEA: Association of Automotive Engineering
7
LE A D ERSH I P
The Marketi How Technolo Manufacture
W r i t t e n b y : Lo u i s e M a t t
ing Machine: ogy Can Boost rers’ Success
hews, Technical Marketing & PR 9
Leadership
Hundreds of thousands of new products are launched every year. The Global New Products Database logs over 20,000 new products every month, but according to some reports up to a staggering 95 percent of new products will fail. What can manufacturers do from a marketing point of view to make sure their products not only survive, but also thrive? More than in any other industry, manufacturing relies on innovations in technology to drive efficiencies, reduce production costs and help bring products to market. But can the same be said of manufacturers’ use of technology to help drive their marketing and sales? Taking responsibility From selling direct, to distribution channels and dual models, there are several routes to market for manufacturers – and each will have a major impact on the business’s marketing strategy and tactics. Where a channel model is used, does the manufacturer need to generate end user demand or does the responsibility fall to the distributor? Regardless of the route to market, the manufacturer needs to take some responsibility for marketing the product. It is, after all, their 10
November 2014
‘baby’ – and without the proper attention, care and nourishment, their ‘baby’ may struggle to grow and ultimately survive. There are two possible approaches to this – either the manufacturer can go directly to the target end user and try to drive demand, which admittedly can require more resources, or it can equip its distributors with the information, skills and knowledge they need to help drive demand. For the latter option, off-the-shelf toolkits that can be delivered electronically can be a cost-effective and efficient way of supporting distributors. Old vs. new For those manufacturers opting for a more hands on approach with the marketing of their products, there are multiple tools to choose from. Offline channels such as PR, advertising and events have been around for a long
T h e Ma r k e t i n g Ma c h i n e
time and can be valuable. It is the new developments with online channels and technology that are proving particularly interesting for the sector though. Manufacturers may well be aware of email marketing, social media, customer relationship management, pay per click, social media and e-commerce, but which tools should they focus on, what will deliver the best results and how can they manage several channels simultaneously? For manufacturers that need to use multiple channels, marketing
automation could be the perfect solution. Market automation is a modern, highly efficient way of streamlining and automating the marketing process to improve efficiencies and boost revenue faster.
‘Regardless of the route to market, the manufacturer needs to take some responsibility for marketing the product’
For manufacturers that need to use multiple channels, marketing automation could be the perfect solution 11
Leadership
Creating engaging content for your email campaign is a skill in itself Market automation is still a relatively new concept for some, but it is expected that by 2020, 85 percent of the customer relationship will be automated. Research also suggests that using automation results in qualified leads increasing by 451 percent, so there is a lot to 12
November 2014
be said for using such a platform. Multiple campaigns can be scheduled ahead of them launching and as it streamlines the process of sending out multiple messages across several channels, it can save considerable time – and, therefore costs. Market automation is also
T h e Ma r k e t i n g Ma c h i n e
extremely effective at collecting specific data and providing insights into the effectiveness of marketing activity, which can feed into future campaigns. However, it is not simply a case of pressing a few buttons and away you go – market automation is heavily reliant on content. If you’re sending out multiple marketing messages to different audiences using several channels, you need something to send to them. Creating engaging and relevant content is a skill in itself, and an area that marketers can assist with. Is marketing automation for me? Marketing automation may be a suitable next step for manufacturers already using email marketing. There are a few other factors to consider before committing to a marketing automation platform though: • Size of market and product type: If you are dealing with a very niche product and a small target audience, the cost of investing in the technology may outweigh the benefits. For such manufacturers, a more traditional marketing approach of speaking and engaging with the target audience face-to-face or via technical
literature may be more effective. • Internal resources: Do you have the resources in place to manage a technology-driven marketing campaign, which relies on a lot of content to work efficiently? While using several different channels simultaneously is likely to take more time, if you don’t have the resources in place to set up, monitor and manage your marketing automation it could be counter-productive and you won’t get the best results. • Available budget: Technology investments in marketing, like in any part of business, can be significant and must be able to demonstrate clear ROI. For the right manufacturers though, marketing automation software can prove extremely valuable if used properly. Regardless of whether market automation is suitable for a manufacturer now or not, with so many new communication channels being developed all of the time, it’s a platform that all businesses that want to have a multi-channel, measurable marketing campaign should consider at some point in the future. 13
TEC H N O LO GY
Lean Manufacturing just got smart: Is your enterprise ready to go beyond lean?
Enter the Fourth Industrial Revolution W R I T T E N B Y: A B I G A I L P H I L L I P S 15
T ECHNOLO G Y The lean manufacturing philosophy has revolutionized the industry by creating value and eliminating waste. Starting with Toyota in the 1950s and continuing through to Dell’s influential Maketo-Order systems of the 1980s, lean manufacturing best practice has been driving production processes for decades. Fast forward to 2014 and while it is clear that the likes of Toyota and Dell got it right, we have new tools at our disposal, which are once again changing the game for companies big and small. According to a number of manufacturing gurus, a Fourth Industrial Revolution is upon us, characterized by the Internet of Things (IoT) and smart devices, which can communicate autonomously on the shop floor to manage manufacturing operations and distribution. However, this new era of technology can do a lot more than automate a production line – after all this is not a new concept in the manufacturing sector. It’s unique selling point lies in the fact that different sections of the production line can communicate with one another - ‘device-to-device’. This creates a smart production 16
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line, which enables a significant level of manufacturing agility making it possible to connect customer needs with a company’s ability to deliver a product on demand. “Today’s manufacturers must be better able to adapt quickly to specific consumer preferences. Add in new technology that creates an unprecedented feedback loop between companies and their customers in which products could actually be designed — or highly influenced — by the end-user, and you have the makings for a revolution in how products are designed and produced,” says manufacturing guru Fred Thomas. The question is how do manufacturers position themselves to thrive in this new world? Push vs. pull marketing techniques Once upon a time, manufacturing was very much centered on ‘push’ strategies based on forecasting. However in response to recent technological advances, the traditional practice of lean manufacturing has grown to revolve far more around ‘pull’ strategies, whereby supply
L e a n Ma n u fa c t u r i n g j u s t g o t s m a r t
The Internet of Things is truly changing the manuafcturing sector for the better
‘Manufacturing is xxxx entering a dynamic new phase. As a new global consuming class emerges in developing nations, and innovations spark additional demand, global manufacturers will have substantial new opportunities — but in a much more uncertain environment.’ – McKinsey Global Institute report 17
T ECHNOLO G Y chain, procurement, production and distribution are based on end-user demand. While pull manufacturing brings with it a raft of benefits – cost reduction, less waste, faster delivery times – it also requires robust processes in order to fulfill its potential. “Most manufacturers have significant investments in multiple IT systems to improve operational performance, responsiveness and planning. The current challenge is
that these systems seldom work well together. What is needed is a new, smarter approach. Think of a flexible and scalable pull platform as being the central nervous system of plant operations and ERP as providing the direction on where to go. Together, these systems provide the foundation for success and survival in an increasingly fastpaced, complex, and globalized marketplace,” says Thomas.
‘Slimmer processes are easier to manage, generate less waste and increase agility in the marketplace’ 18
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‘XXXX”
L e a n Ma n u fa c t u r i n g j u s t g o t s m a r t
Pull manufacturing processes bring with them a new generation of capabilities, which extend far beyond the realm of material flow and production activities. For example, pull processes can apply to quality, maintenance and even knowledge management at a production facility. In order to make the most of out a pull system all functional domains of manufacturing operations management,
including quality, maintenance, time and attendance, material and production, and intelligence gathering needs to be captured by an enterprise pull platform. This platform must have built-in machine integration capabilities for connecting to a wide variety of automation equipment and smart devices. The vast amounts of real-time events data created by such connected manufacturing processes can then be used to generate insights and analytics. What results is a wealthy collection of manufacturing intelligence, known as smart-pull processing. Explaining smart-pull processing in more depth Smart-pull processing is more than the automation of traditional pull-based processes.
A smarter manufacturing process results in reduced costs and improved efficiency
Different types of pull processing and how they can result in a slimmer, speedier and smarter manufacturing operation: • Multiple or cross-domain pull processes can utilize information from multiple streams such as quality trends, production yield 19
T ECHNOLO G Y
Smart pull strategies can help with procurement as well as distribution
and equipment failure record to optimize a replenishment quantity or safety stock setting. • Automated, long, range and multi-event sensing. Using RFID sensors (IoT) and weigh scales, the detection of material consumption activities can be automated, remotely triggering a supplier to replenish parts. • Real-time insights and higher order statistics. For example, optimize 20
November 2014
a replenishment pull process by using a buffer calculation based on dynamically updated probability distribution parameters. Ultimately, smart-pull techniques can contribute to faster processes and overall reduction of inventory, freeing cash flow. Slimmer processes are easier to manage, generate less waste and increase agility in the marketplace.
L e a n Ma n u fa c t u r i n g j u s t g o t s m a r t
‘A Fourth Industrial Revolution is upon us, characterized by the Internet of Things (IoT) and smart devices, which can communicate autonomously on the shop floor to manage manufacturing operations and distribution’ Implementing smart-pull and reacting to the Fourth Industrial Revolution Harnessing and integrating the power of BPM, cloud computing, mobility, Big Data, and the Internet of Things to optimizing your enterprise’s manufacturing processes is not an easy task; it requires investment, robust IT infrastructure, training and solid leadership but the rewards can be generous if executed well.
As stated in a recent McKinsey Global Institute report: “Manufacturing is entering a dynamic new phase. As a new global consuming class emerges in developing nations, and innovations spark additional demand, global manufacturers will have substantial new opportunities — but in a much more uncertain environment.” Is your enterprise ready to go beyond lean?
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LE A N
Emerging predictive analytics for the manufacturing industry 22
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Dan Somers of root cause analysis specialists Warwick Analytics explains how manufacturers can avoid the ‘hype’ of predictive analytics to make it effective right here, right now Writ ten by: DAN SOMERS 23
Lean The field of ‘Predictive Analytics’, a field of analytics which tries to predict future events by finding patterns from historical events, is receiving much attention in manufacturing lately, due in large to the rise of ‘Big Data’. The predictive analytics market is in fact growing at an unprecedented rate. ResearchMoz recently valued the market at $2.1 billion in 2012, and predicts it to see strong growth at 17.8 percent CAGR to 2019. With this though comes the ‘hype’. Gartner’s ‘Hype Cycle’ predicts that predictive analytics and data science are approaching the ‘Peak of Inflated Expectations’ – this is when the early publicity around the technology starts. However the ‘Plateau of Productivity’, when mainstream adoption starts to take off, for data science will be reached in two to five years.
‘The predictive analytics market is in fact growing at an unprecedented rate.’
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Has the time for manufacturing predi Meanwhile, predictive analytics will take five to 10 years to reach the end of the hype cycle and maturity. For an industry which traditionally suffers acutely from incomplete, disparate and dirty data and requires solutions to issues to be found as early as possible the need for such analytics in manufacturing is prominent. However, manufacturing is also a no-nonsense industry populated by practically-minded engineers and business leaders who are rightly sceptical of hyped technologies. So has the time for manufacturing predictive analytics come or is it
Headline
ictive analytics come or is it just the big data vendors trying to persuade us? just the big data vendors trying to persuade us? Let’s answer this by debunking the myths of manufacturing predictive analytics. Firstly it is important to start by saying that ‘visualisation’ is not analytics despite what many vendors tell you. Being able to see and play around with data is useful, but if say an engineer wants to know what his COPQ is likely to be over the next few months and the factors which are driving the forecast, this is predictive analytics. Secondly, there are many challenges with implementing and operating the
common predictive analytics tools already on the market. Firstly it is too easy to produce a predictive model which is either naively incorrect to start with (because it requires a data scientist to build the model and/or validate) or soon becomes irrelevant (because things change). Secondly there is a mathematical limit to what predictions can be made with a specific amount of data - if a vendor tells you he can predict the future from a just few data points, then it’s too good to be true. Thirdly, if the analytics can’t be practically implemented on the shop 25
Lean floor then it is useless. Lastly, there has to be a clear use case on which to apply the analyses to in the first place. If a problem requires an army of PhDs or the problem is not that large, then think again. Predictive analytics isn’t the answer to every prayer. So, what kind of manufacturing problems are placed to benefit from predictive analytics? Well, there’s root cause analysis for resolving defects to lower COPQ , predictive maintenance
Being able to see and play around with data is useful, but if say an engineer wants to know what his COPQ is likely to be over the next few months and the factors which are driving the forecast, this is predictive analytics 26
November 2014
and service on products and plant, hidden bottlenecks in processes, speeding up launch, lowering supply chain costs by understanding behaviours, improving the design of products by understanding how customers will use them better, product pricing…the list goes on. For engineers, it’s a case of replacing ‘rear-view mirror analytics’ using statistical tools, with forward looking analytics which enable results to be understood and most importantly proven – perhaps ‘practical predictive analytics’. So now we’ve debunked the topic, what about the technical hurdles? In the 2014 TDWI survey, the top three predictive analytics challenges across all sectors were: lack of skilled personnel; lack of understanding of predictive analytics technology; and an inability to assemble the necessary data. Fortunately there are predictive analytics companies appearing who address these challenges by automating the data integration exercise, not needing to clean data (in fact positively refusing to clean data lest it remove early warning signals), dealing with sketchy data, and
Headline
If the analytics can’t be practically implemented on the shop floor then it is useless automating the analytics. These new technologies look at all or whatever data is available. They are can run fast within the database or parallelised ‘in-memory’ to handle huge amounts of data from various disparate sources. They provide multiple solutions and the results are easy to understand and action. And no hypotheses are required. Put simply, it means that a data scientist and IT department are no longer required to solve complex, and ever-changing problems. The technology at our company for example, Warwick Analytics, has been used to solve the root causes
of complex failures at Motorola (the home of Six Sigma) by engineers, quality and production staff. Similarly the technology is used by many leading automotive aerospace and process industry manufacturers to reduce their Cost of Poor Quality by automatically resolving issues on-the-fly and increasing yield. Adoption and deployment of these emerging predictive analytics tools will greatly enhance the ability of firms to move quicker and more cost-effectively by making predictive analytics available to everybody across all of their manufacturing processes. 27
PEOPLE & SKILLS
How collaborative rob innovation in the manu 28
November 2014
Robots have the potential to free up and make better use of human resources, which in turn could result in greater innovation across the sector
botics are stimulating ufacturing sector
W R I T T E N B Y: AB I G A I L PH I LLI PS 29
P e o p l e & Ski l l s Up until very recently, robotics in the sector have been used predominantly to carry out repetitive, onerous and dangerous tasks such as welding and materials handling. However technological advancements have paved the way to allow robots to take on human-like capabilities and traits such as sensing, dexterity, memory, trainability and object recognition. As a result, robots are taking over more jobs such as picking and packaging, testing and inspecting products or assembling minute electronics. In addition a new generation of collaborative robots usher in an era, which will see robots work side-by-side with human operators who train them through physical demonstration.
‘Robots have the potential to free up and make better use of human resources, which in turn could result in greater innovation across the sector’ 30
November 2014
The viability of these robots has increased dramatically in recent years, with technological advancement making it possible from a physical standpoint and costing making it feasible from a financial perspective. The cost of robots has fallen from several thousands of dollars to several hundreds, and at the same time their applications have widened meaning industries beyond automotive and food and beverage are adding them to their ranks. One major robotics company refers to the new generation of robots as intelligent industrial work assistants. The ‘R’ generation: The rise of robotics As it stands, there are approximately 1.5 million robots in situ across the globe, with more than 230,000 in the US alone. According to the International Federation of Robots (IFR) in 2013 global shipments reached in the region of 180,000 – an all time high – with 200,000 forecasted for 2014. Further, robots have also attracted the attention of investors such as recent high-profile pure-play robotics investments by Google and Amazon. In fact, venture
The use of robotics could save costs and also boost flexibility capital in robotics technology has surged in recent years, according to data from Thomson Reuters. The maturing ‘R’ generation certainly has implications for the future of manufacturing. Wider adoption of robots comes at a time when manufacturing companies, both big and small, are under increasing pressure to squeeze even greater productivity from their workforces at
reducing costs. Furthermore, wage arbitrage seems less attractive to some manufacturing hubs such as China compared to a decade ago. With this in mind, broad adoption of robotics could spur greater reshoring of manufacturing from oversees. Is now the time to hire automated help? The answer: possibly, yes. Automation 31
P e o p l e & Ski l l s
Robotics could free up human employees to work on more innovative applications in the sector isn’t only going to help reduce cost – the nascent age of ‘nearly human’ robots is driving greater efficiency and has the potential to reduce labor force injuries. In fact, automation is showing signals of changing the way the industrial workforce is composed – even the nature of the jobs themselves. Manufacturers are also recognizing that being competitive means injecting 32
November 2014
greater flexibility into their production lines in order to satisfy consumer demand for products with shorter life cycles and more variety – robots can help on this front as well. How collaborative robotics can stimulate innovation The introduction of collaborative robotics to the sector gives manufacturers a lot more choice. For
C o llab o r a t i v e r o b o t i c s i n m a n u fa c t u r i n g
Robot and man could soon work side-by-side
‘Robots could be applied in applications that a human workforce is unable to carry out, which will open the door to new opportunities of faster and greater production of existing products or indeed new product development’
example, robots have the potential to free up and make better use of human resources, which in turn could result in greater innovation across the sector. Conversely, robots could be applied in applications that a human workforce is unable to carry out (such as those of high precision or force) which will open the door to new opportunities of faster and greater production of existing products or indeed new product development. So the question that remains to be seen is, are robots an economically viable and realistic solution to the increasing difficulty of securing a sustainable manufacturing workforce? And if robots do displace employees, are there plans in place to move those employees to other tasks, which are more interesting and attractive to them and thus more valuable to the company? These question need to be addressed by manufacturing companies looking to implement collaborative robotics into their workforce. Doing away with human employees is not the answer, but redistributing them as a resource could pave the way for a new era of manufacturing innovation and strength. 33
TOP 10
Top10
Manufacturing Companies in the World The top 10 manufacturing companies in the world ordered by revenue in millions of U.S. dollars. Written by: Abigail Phillips
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top 10
10
Hon Hai Precision Industry
Hon Hai Precision Industry trading as Foxconn Technology Group is the world’s largest electronics contractor manufacturer, and the third-largest information technology company by revenue. Foxconn shot to fame for manufacturing Apple products, but also develops technology for the likes of Samsung, Nokia and Tesla. It is 36
November 2014
also said to be manufacturing a cheap electric car in the near future. Foxconn is primarily an original design manufacturer and its clients include major American, European, and Japanese electronics and information technology companies. Notable products that the company manufactures include the BlackBerry, iPad, iPhone, Kindle, PlayStation 4, Xbox One, and Wii U. It is the largest private employer in China. www.foxconn.com
T h e t o p 1 0 m a n u fa c t u r i n g c o m pa n i e s i n t h e w o r l d
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Nissan
Nissan Motor Corporation is headquartered in Japan and since 1999, has been part of the Renault–Nissan Alliance, a partnership between Nissan and French automaker Renault. As of 2013, Renault holds a 43.4 percent voting stake in Nissan, while Nissan holds a 15 percent non-voting stake in Renault. Carlos
Ghosn serves as CEO of both companies. Nissan Motor Corporation sells its cars under the Nissan, Infiniti, Datsun, and NISMO brands. Taken together, the Renault–Nissan Alliance would be the world’s fourth largest automaker. Nissan is the leading Japanese brand in China, Russia and Mexico. www.nissan.co.uk
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top 10
08
Hitachi
Hitachi, Ltd. is a Japanese multinational engineering and electronics conglomerate company headquartered in Tokyo, Japan. It is the parent of the Hitachi Group and forms part of the DKB Group of companies. Hitachi is a highly diversified company that operates eleven business segments:
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Information & Telecommunication Systems, Social Infrastructure, High Functional Materials & Components, Financial Services, Power Systems, Electronic Systems & Equipment, Automotive Systems, Railway & Urban Systems, Digital Media & Consumer Products, Construction Machinery and Other Components & Systems. www.hitachi.com
name of top 10 article
07
HewlettPackard
Hewlett-Packard Company (HP) is a multinational IT company based in Palo Alto, California. It provides hardware, software and services to consumers, SMBs and large enterprises, including customers in the government, health and education sectors. William “Bill� Redington Hewlett and Dave Packard founded the company, starting with a line of electronic test equipment. HP is the world’s leading PC
manufacturer and has been since 2007, fending off a challenge by Chinese manufacturer Lenovo, according to Gartner. It specializes in developing and manufacturing computing, data storage, and networking hardware, designing software and delivering services. Major product lines include personal computing devices, enterprise and industry standard servers, related storage devices, networking products, software and a diverse range of printers and other imaging products. www8.hp.com 39
top 10
05
06
FORD
Founded by Henry Ford in 1903, Ford Motor Company is one of the world’s most recognised automotive manufacturing companies. The company sells automobiles and commercial vehicles under the Ford brand and most luxury cars under the Lincoln brand. Ford rose to notoriety as a pioneer in the manufacturing sector due to the fact it founded moving assembly lines, which changed the way automakers around the world produced vehicles. www.ford.co.uk 40
November 2014
General Electric
General Electric (GE) is an American corporation incorporated in New York and headquartered in Fairfield, Connecticut. The company operates through the following segments: Energy, Technology Infrastructure, Capital Finance as well as Consumer and Industrial. In 2011, GE ranked as the 26th-largest firm in the U.S. by gross revenue, as well as the 14th most profitable. www.ge.com
T h e t o p 1 0 m a n u fa c t u r i n g c o m pa n i e s i n t h e w o r l d
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Daimler
Daimler AG is a German multinational automotive corporation with shares in a number of car, bus and truck marques including MercedesBenz, Mercedes-AMG, Smart Automobile, Freightliner, Western Star, Thomas Built Buses, Setra, BharatBenz, Mitsubishi Fuso, as
well as Denza, KAMAZ, Beijing Automotive Group, Tesla Motors and Renault-Nissan Alliance. By unit sales, it is the thirteenthlargest car manufacturer and second-largest truck manufacturer in the world. In addition to automobiles, Daimler manufactures buses and provides financial services through its Daimler Financial Services arm. www.daimler.com 41
top 10
03
SAMSUNG ELECTRONICS
Based in South Korea, Samsung Electronics is the largest electronics manufacturing company in the world and has held that coveted title since 2009. It is the flagship subsidiary of Samsung Group, amounting to 70 percent of the group’s revenue in 2012. Samsung Electronics has assembly plants and sales networks in 80
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countries and employs around 370,000 people. Samsung manufactures electronic components such as lithium-ion batteries, semiconductors, chips, flash memory and hard drive devices for clients such as Apple, Sony, HTC and Nokia. In recent years the company has also diversified into consumer electronics, with its own Samsung Galaxy line of devices. www.samsung.com
name of top 10 article
02
Volkswagen Group
German automaker Volkswagen (VW) has maintained the largest market share in Europe for more than two decades. The group sells passenger vehicles under eight brands – Audi, Bentley, Bugatti, Lamborghini, Porsche, SEAT, Skoda and Volkswagen. It sells motorcycles under the Ducati brand, and commercial vehicles under the MAN, Scania, Neoplan and Volkswagen Commercial
Vehicles brands. The company has operations in approximately 150 countries and operates 100 production facilities across 27 countries. Founded in 1937, Volkswagen’s first foray into the automotive manufacturing space was with the Beetle – its other popular models include the Passat, Polo and Golf, the latter of which has become its bestseller. www.volkswagenag.com
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01
TOYOTA
Toyota Motor Corporation, headquartered in Japan, is the world’s largest manufacturer measured by revenue. It is also the largest company operating in Japan, and the fourteenth largest company in the world. It employs more than 333,000 people worldwide and produces more than 10 million vehicles per year. Founded by Kiichiro Toyoda in 1937, the company today produces vehicles under five brands – Toyota, Hino, Lexus, Ranz and Scion. It also holds a 51.2 percent stake in Daihatsu, a 16.66 percent
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stake in Fuji Heavy Industries, a 5.9 percent stake in Isuzu and a 0.27 percent stake in Tesla. The secret to its manufacturing success lies in its Toyota Manufacturing System (TMS). The company was and remains a pioneer in the lean manufacturing space and is credited with developing ‘just-in-time’ production, which came to be known as The Toyota Way. The Toyota Way has been implemented at thousands of manufacturing plants across the world due to its efficiency, cost saving credentials and quality outcomes. www.toyota.com
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Flexitallic’s Culture of Innovation and Quality Control Leads to Sustained Success With a wealth of experience in the sector, Flexitallic is well positioned to achieve its ambitious growth aims Written by: Abigail Phillips Produced by: Rosie Rowe
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T h e F l e x i ta l l i c G r o u p
“Quality and technical support is at the heart of what we do and we have quality assurance and technical specialists around the globe ” – Mark Horton, Managing Director, U.K.
Flexitallic Change Gasket 48
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T
he Flexitallic Group is the world’s leading manufacturer and supplier of high quality, high value static sealing products, delivering industrial gaskets on a global scale. Founded in 1912, the company has a long and varied history, which has been underpinned by a culture of innovation and world-class customer service. Today, the company is going through a phase of aggressive expansion looking to new markets, strategic acquisition opportunities and product development. With a physical presence in the U.S., Canada, China, France, Germany, the U.K. and the UAE, as well as joint-venture partnerships in Saudi Arabia, Mexico and Kazakhstan, and licensee operations in Africa, Australia, India and Italy, Flexitallic is well placed to serve the market on a global scale. Flexitallic is a manufacturing company that is heavily involved in the distribution of its products. The company works with a number of third party distributors and manufacturers, all of whom are heavily vetted. Working on a three-tier model the company has licensees who manufacture its products to Flexitallic quality standards and pay the company a royalty; Allied Distributors who distribute Flexitallic manufactured products worldwide and product distributors, who are essentially logistics partners. “We work with a whole range of distributors to provide local supply and support in each
E n e r gy
R&D technician setting up a gasket test rig in the lab
territory,” explained Mark Horton, Managing Director U.K. “Quality and technical support is at the heart of what we do and we have quality assurance and technical specialists around the globe who work with distributors and end users to solve problems and maintain our standards of excellence.” Quality is King At Flexitallic, quality is paramount to success and as such the business has multiple checks and balances in place to ensure every product is of the highest possible standard. The company has adopted a very structured approach to quality control and has introduced operational efficiency initiatives to work towards a global standard. Horton explained: “Every single manufacturing
Production manager (L) with Engineer (R) inspecting a solid metal gasket
w w w. f l e x i t a l l i c . e u
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t h e F l e x i ta l l i c g r o u p
Training Manager (L) with delegate in training
“We work with our customers to solve their problems and if that means designing something bespoke, developing an existing design or reviewing an application we have the technical expertise to do that” – Mark Horton
Flexitallic Sigma 511
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facility operates in the same way and it doesn’t stop there. Quality assurance measures are in place throughout the entire supply chain. “We ensure product quality is maintained by buying from approved vendors, checking
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Computer controlled co-ordinate measuring machine (CNC CMM) measuring a metallic gasket
all materials that enter our facilities, robust inprocess inspection and further checks on finished goods prior to dispatch.” But at Flexitallic, quality isn’t just about the products it supplies, but the customer service it offers to end-users. Flexitallic will assist its customers with installation and training through its Academy of Joint Integrity and has a team of 50 application engineers around the world, who are tasked with solving customer problems. “We work with our customers to solve their problems and if that means designing something bespoke, developing an existing design or reviewing an application we have the technical
Flexitallic Spiral Wound Gasket
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Durable is an independent digital agency founded in 2007 with offices in New York and London.
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expertise to do that,” Horton added. A Culture of Innovation The company’s ability to renew and develop its products positions it as a leader in the sector. “Innovation and our technical expertise in the field set us apart from the competition,” Horton said. “We have a long and proud history of innovation, research and development. We carry many patents for different products and invest a lot of time, money and effort in creating solutions for the future”. Its highly technical but competitive nature has seen the company win large contracts from many of the major players in the oil & gas and energy markets globally. Its operation in France, Siem Supranite, has a world-class reputation in the French nuclear
50 Number of engineers solving customer problems in Flexitallic’s Academy of Joint Integrity team
Flexitallic Gasket installation training rig
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F l e x i ta l l i c
Operator inspecting flexpro kammprofile gasket
“We encourage our employees to contribute to the business from a creative point of view as well as a practical one” – Mark Horton
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sector and is now expanding into China and other regions of the globe. Flexitallic’s nuclear approvals will also mean that the UK operation is perfectly placed to service the future expansion in the country’s Nuclear sector. A culture of innovation is not something that is achieved overnight. The company has worked hard to build a philosophy of continuous improvement from the top down. “We are a profitable, secure and growing business and people like to be part of that,” explained Horton. “We supply to 80 countries, so people can be involved in lots of projects around the world and we support and encourage staff to work overseas if they wish.
t h e F l e x i ta l l i c g r o u p
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“We operate a Talent Detection Programme to identify key staff and create fast track plans to develop them globally. We also have a local talent programme to promote people through the ranks as well. We encourage and reward all our employees to contribute to the business from a creative point of view as well as a practical one.”
Company Information Industry
Energy headquarters
Looking to the Future Flexitallic is a company with a rich heritage and lots of experience in the sectors it serves, however that doesn’t mean it will rest on its laurels. The business aims to grow significantly over the next five years via strategic acquisition, geographical expansion, investment, and the innovation and development of new products. In the U.K. the company has spent in excess of £1 million on new factory equipment since 2008. In the U.S., Middle East, the United Arab Emirates and Kazakhstan similar investments have been made to bolster manufacturing capabilities on site. “We are a global company operating locally,” Horton said. “We are dedicated to bringing our products closer to our customers.” Flexitallic is a company with its eyes firmly set on the future and its knowledge, expertise and ambition set it in good stead to achieve its ambitious expansion plans. With innovation, quality and firm leadership the company will continue to grow long into the future.
England, UK founded
1912 employees
1,200 revenue
€250 million products/ services
Manufacturing and supply of industrial static sealing products
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IBS Paper Performance Group Continues to Acquire New Capabilities Across the World Written by: Tom Wadlow Produced by: Alex Barron
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I B S pa p e r P e r f o r m a n c e G r o u p
The Austrian firm is dedicated to creating bespoke products through its seven brands aimed at transforming the paper and pulp industry’s processes into sustainable operations as demonstrated by its iTable and Flowmaster
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I
BS Paper Performance Group (IBS PPG) is continuing to bring fresh and innovative solutions to the global paper and pulp industry in its bid to push beyond its €85 million 2014 revenue forecast and drive up industry standards and sustainable practice. Recent acquisitions, including that of PGA in southern Austria, has brought the company’s portfolio of brands to seven, helping the bespoke machine components producer to deliver higher quality parts across a wider geographical scope. New products such as the iTable and Flowmaster are respectively providing greater flexibility and process visibility for paper and pulp businesses, with word of mouth already pushing sales. And despite IBS PPG now operating worldwide, it remains true to its Austrian roots by maintaining its headquarters in the small village of Teufenbach, where founder and keen inventor Heinrich Bartelmuss began pioneering the first one-piece ceramic cover for dewatering elements in paper machines. Dietmar Schatz, Vice Director Sales & Marketing, has experienced a 25-year journey with the company which has seen it greatly expand from its early days. He said: “When I started 25 years ago the company was a small operation with around 60 people, and now we are at 600. “This growth has been an exciting challenge for all of us – we are working across many countries and mentalities so channelling this into one goal is crucial.”
m a n u fa c t u r i n g
FabriCare Dryer
Pioneers Expanding its range of customised paper and pulp machine components is vital in what is an up and down industry. IBS PPG specialises in a range of established products including dewatering systems, fabric guides and tensioners, doctors and showers, engineered consumables and several specialised items. However, one of its newer solutions is the ground-breaking iTable, designed to provide flexibility for paper makers by making their machines adjustable to different sizing and material requirements.
Electronic vacuum control valve
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I B S pa p e r P e r f o r m a n c e G r o u p
“Our focus is on improving the quality of production in the paper and pulp industry as well as enabling energy savings” – Dietmar Schatz
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“One of our biggest recent success stories has been the iTable, which we are selling successfully in the US and here in Europe,” Schatz added. “This offers very good flexibility for paper makers to produce different grades of paper at different speeds with the same machine parts. “These parts are extremely flexible using height and angle adjustable units, which can be adjusted according to the needs of the customer, allowing them to produce paper of improved quality across a larger range.” So far the company has sold 40 of these units, with word of mouth proving to be the most effective form of marketing. Another innovation, and one based on customer feedback, is the year-old Flowmaster, which measures the efficiency of dewatering elements of paper production, offering crucial visibility to clients. “Customers drive our research and
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development,” Schatz said. “Our focus is on improving the quality of production in the paper and pulp industry as well as enabling energy savings. For example, compared to polyethylene dewatering solutions our ceramic parts use less than 50 percent of the energy needed.” IBS PPG is also looking to streamline its own process through automation, something which will require careful investment given the bespoke nature of the products produced. Global reach Equally important as pioneering fresh solutions is the ability to reach a wide audience, and IBS PPG now operates seven specialist brands following the acquisition of PGA six months ago, a company excelling in making disperging units. Other specialist brands around the world include James Ross in Canada, manufacturer of doctors and showers which help to clean paper machines. Liechtenstein-based JUD specialises in stretchers and guides while Swiss unit Jakob AG produces re-wetting systems. IBS Steel Performance, a premium brand of Berger, comprises a steel engineering plant that makes dewatering boxes, fabric tensioners and guides, doctors and showers and also steam showers. Schatz added: “We are always looking to expand our product portfolio in ways that suit our existing range. We have production in Austria, Canada and the US along with service bases
Key Personnel
Klaus Bartelmuss Owner & President
Marc Kaddoura CEO/CFO
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IBS Ppg in Brazil, Indonesia, Finland, Japan and China, where we also carry out some production for the Chinese market.� As well as targeting paper producers, IBS PPG also has healthy relations with machine manufacturers who rely on their parts to assemble entire production units. Deep roots IBS PPG’s global footprint owes its existence to humble origins in a small village in southern Austria. Teufenbach today is home to just 600 people, and back in 1967 Heinrich Bartelmuss founded
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Key Personnel
Dietmar Schatz Vice Director Sales & Marketing
iFibre IBS truck
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IBS Performance Group
IBS Production line
the company which started out producing leather belts for drives in saw and paper mills, securing ten patents by 1976. “Bartelmuss was an inventor and extremely passionate about the products he made,” Schatz said. “After passing away in 1981, his two sons took over and began a programme of diversification and expansion which has been very successful, and in 2012 Klaus Bartelmuss took over 100 percent of the company.” Schatz is charged with maintaining the sort of growth which will see the company hit €85 million
iFibre
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Company Information Industry
Manufacturing headquarters
Austria founded
1967 employees
600 revenue
€85 million
in sales for 2014, and emphasises the need to innovate to overcome the fluxes in the market. He concluded: “The pulp and paper industry has been up and down and we have had to contend with losing customers who have shut down machines; we have lost 20 in Scandinavia in the past four or five years. “We must keep innovating new products and attracting new customers as well as remain relevant to our existing clients. If we do this I hope that we can reach our goal of growth and perhaps stretch to the €100 million turnover mark.”
products/ services
Paper and Pulp
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The Mexican
Expansion
of Casting Structures Blackhawk of Mexico is taking advantage of growth opportunities to diversify their product range and consolidate in their natural market.
Written by: Mateo Rafael Tablado Interview by: Rebecca Castrejon Produced by: Diego Pesantez Interviewee: Patricio Gil, CEO of Blackhawk of Mexico
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B L A C K H AW K O F M E X I C O
B Blackhawk headquarters in Mexico
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lackhawk of Mexico was founded in the vicinity of Monterrey, Nuevo Leon (Mexico). By 2002, the metal foundry moved to Mexico City after it was acquired by QUIMMCO, an important Mexican industrial group. Among others, the company supplies to automotive industries and vehicle manufacturers specializing in agriculture. Within a decade, Blackhawk has grown substantially, elevating their production levels and expanding their portfolio with more complex and heavy parts and structures. Additionally, they have received awards from foreign partnerships, highlighting the company’s efforts and workforce policies. Patricio Gil, CEO of Blackhawk of Mexico since August 2005, gained experience in other companies engaged in casting, such as CIFUNSA and Teknik. Gil has been in charge of plant operations, sales and marketing prior to his incorporation in Blackhawk, he has also held posts in international associations in the field. “We used to produce 600 tons per month, now we are producing 2,300. The plant was recognized as Foundry of the Year 2009 in the United States by an industry specialist media organization. This has been the only time a foreign company was recognized with this award, and as a Mexican company, we are especially proud,” says Gil.
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Expansion Derived From Growth Blackhawk of Mexico is an example to follow in regards to its steady growth, due to more than adequate human resource management and training, and the incorporation of modern casting technology and machinery. In the first half of 2014, the foundry inaugurated a production facility whose performance exceeds what the company projected. The challenge within the next three years is for this facility to operate at 100 percent. Blackhawk understands that in order to upgrade the recently inaugurated foundry, the company must automate processes, especially since the nature of the industry includes working with potentially hazardous materials at high temperatures, such as smoke and dust residues. Furthermore, top management does not skimp
Key People
Patricio Gil CEO of Blackhawk of Mexico Patricio Gil is an Industrial and Systems Engineer, graduated from Instituto Tecnologico de Estudios Superiores de Monterrey (ITESM) in 1984, at the same institution he studied statistics and a master’s degree in administration and finance (MBA). He later got a master’s degree in castings from Instituto Tecnologico de Saltillo and attended an operations management course at the Richard Ivey School of Business (specializing in commerce from the University of Western Ontario in Canada). In companies like CIFUNSA and Teknik he accumulated experience in areas such as operations, sales and marketing. Gil has more than three decades of experience in the range of casting, he started working in Blackhawk of Mexico in August 2005 and immediately took the post of CEO, a role he has played for the last nine years.
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B L A C K H AW K O F M E X I C O
They will increase their production capacity after opening the new plant in 2015
on improvements, keeping the company and the facilities as an attractive and modern option for current and future clients. To retain labor, the company promotes its facilities, state-of-the-art equipment and secure processes. “We have the advantage of having an accessible workforce, but we don’t rely on them for operations that should be automated,” says Patricio Gil, CEO of Blackhawk of Mexico. Blackhawk produces castings using a 32 x 32-in and two 20 x 24-in molding lines
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Suppliers: Always Under Scrutiny The company has two groups of suppliers: raw material suppliers and those responsible for providing special equipment and components. The first group aligns 100 percent with the
L AT I N A M E R I C A
The manufacture of castings will increase 1,000 percent by the end of 2015
requirements and demands of Blackhawk, ensuring that all materials meet specifications. Meanwhile, suppliers of special equipment and components are carefully selected based on their previous work experience and developments. The company is very attentive to detail and always takes a closer look at the type of technology and machinery that a supplier is capable of providing and the benefits that comes with it. “We have good proximity with our suppliers, their role is key and with them we have created a very strong chain,” the CEO said.
“We have good proximity with our suppliers, their role is key and with them we have created a very strong chain” – Patricio Gil, CEO of Blackhawk of Mexico
High Quality Work Environment Human resource management in Blackhawk’s plant has been a great success, all the talent is w w w. b l a c k h a w k . c o m . m x
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B L A C K H AW K O F M E X I C O
Modern castings
from Mexico and the company only brings foreign professionals for very specialized processes. There is also a positive work environment, enabling the company to have one of the lowest turnovers in Mexico. “The quality of our work environment is very important to us. Companies and customers who visit us can not believe that there is a relaxed environment and that at the same time we are breaking sales, production and quality records,� Patricio Gil said. The initiative to seek and invite retired metallurgical engineers, seniors with working experience in foundries, and other specialists to
L AT I N A M E R I C A
pass on their knowledge to a younger generation, has produced excellent results. Minimizing the Environmental Footprint in Every Process A priority of Blackhawk is to maximize efforts to reduce their environmental footprint. The plant residues are smoke, dust and other substances collected during each process. All noise-generating processes are performed in isolated areas. They continue to use treatment plants for the consumption of water, which allows the liquid to be reused for irrigation purposes. “We try to make it a model plant, is not a plant that is fuming, if you look at it from the outside it doesn’t seem to be a foundry,” says Gil.
Blackhawk uses coldbox, nobake and shell cores in its castings
Portfolio Growth Growing also means introducing an additional number of products to be developed. Up until 2013 the weight of processed products was limited to 100 kilograms. Now, the company can manufacture parts up to 350 kilograms, expanding their possibilities to reach new customers. “This opens up a large market in agriculture and heavy machinery, also called off-highway,” Gil said.
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B L A C K H AW K O F M E X I C O
Manual and automatic process in the manufacture of castings
Processing pots of 900 kgs.
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Increasing Production with New Opportunities After opening the new plant, their operation capacity increased by 50 percent. Up until recently, the production limit was 25,000 metric tons per year. This figure is now 37,500 tons, and by 2015 the Company expects to reach 32,000 tons. The demand for foundry work on a large scale keeps increasing, and Blackhawk of Mexico will continue to strengthen its presence. “Many manufacturing opportunities continue to arrive in Mexico, and in the next few years we see Mexico and United States as our main focus,” concluded Gi.
L AT I N A M E R I C A
Company Information NAME
Blackhawk of Mexico INDUSTRY
Manufacture of automotive parts HEADQUARTERS
Santa Catarina, Nuevo Leon, Mexico FOUNDED
Sand casting, one of the main products of Blackhawk
“Companies and customers who visit us can not believe that there is a relaxed environment and that at the same time we are breaking sales, production and quality records”
1999 EMPLOYEES
+300 EMAIL
ventas@blackhawk.com.mx WEBSITE
www.blackhawk.com.mx
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Leadership
in Aerospace Manufacturing and After-Sales Service:
Airbus Helicopters is setting out a journey of global competitiveness from their local plant in Queretaro, Mexico.
Written by: Mateo Rafael Tablado Produced by: Taybele Piven Interviewee: Serge Durand, CEO of Airbus Helicopters of Mexico
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Airbus Helicopters of Mexico
A
irbus Helicopters has a history of more than 30 years in Mexico. The company used to operate as a subsidiary of Aérospatiale from France and Eurocopter, while being in the midst of various mergers and acquisitions, but always with the prestige afforded by the leadership of one of the most important aerospace companies worldwide. Their Mexican operation is important for two key reasons: Serge Durand strengthening alliances
• It is the basis of their sales and after-sales for 25 countries between Mexico, Central America, Colombia, Ecuador and Venezuela. • They have a manufacturing plant (their second) in the city of Queretaro. The plant was inaugurated in 2013 with an investment of US $100 million. As a globally recognized company, Airbus Helicopters’ responsibilities go beyond other manufacturers; the company is subject to important safety requirements and their units must use quality parts and equipment with continuous proper maintenance crucial for preventing accidents. In a demonstration of the precision and power of helicopters developed by Airbus, pilot Jose Luis Zamora and engineer Erick Perez, both collaborators at Airbus Helicopters of Mexico,
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la t i n a m e r i c a
XC-EPF EC-120B Colibri for the federal police - By Alex Lomix
landed the AS350 b3e on “Pico de Orizaba” -the highest volcano in North Americalocated at 5,610 meters on May 28th, 2014. This record demonstrates the extraordinary power, reliability and safety of the helicopters manufactured by Airbus. Serge Durand, one of the most distinguished executives in Mexico, is the current CEO of
“Our challenge is to develop this industry in Mexico, reinforcing our commitment of a long-term investment by driving growth into this new plant” – Serge Durand, CEO of Airbus Helicopters of Mexico
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Airbus Helicopters of Mexico Airbus Helicopters of Mexico. Durand has a long experience in the aircraft industry and has been working for more than 30 years for the companysince the days of Aérospatiale.
Eurocopter AS 350
“My biggest success is to have achieved our level of support and service to our clients, recognized in customer satisfaction surveys”, said Serge Durand, CEO of Airbus Helicopters of Mexico.
Ecureuil MMGL / GDL By Alex Lomix XC-HPE
Developments in Motion Since 2013, Airbus has increased its stake and growth in Mexico after opening their new manufacturing plant for the assembly and subassembly of aircrafts. As part of the first phase in their development strategy the company is moving forward with a serious commitment of supplying helicopters to various agencies of the Mexican government Their objectives are clear, regardless of any benefits derived from the reforms that occurred in the country recently. “Our challenge is to develop this industry in Mexico, reinforcing our commitment of a longterm investment by driving growth into this new plant,” Durand said.
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BRAL: Which automation advances have been implemented in the production of civil and military helicopters? SD: “We have an automatic system called galvanization (coating with zinc) that protects the surface and is integrated into the assembly line of the aircraft door. We are increasing our automation in the production of airplanes by integrating new systems in each update until we can handle the whole manufacturing process automatically.�
Key People
Serge Durand CEO of Airbus Helicopters of Mexico
Post-Sale Services, Their Key to Maintaining Leadership After-sales services and aircraft maintenance are key elements during the selling process. Airbus has service centers located in International Airport facilities, such as the central airport in
At the opening of the new plant with the president of Mexico
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Airbus Helicopters of Mexico Mexico City, Queretaro, Ciudad del Carmen (Campeche) and Saltillo (Coahuila).
XC-LJO Eurocopter AS 350B3 - By Alex Lomix
“Selling helicopters is fine, but the client must receive assistance after the sale for the helicopter to have a life up to 30 years. Airbus Helicopters of Mexico’s support and maintenance are key services to our business development strategy. Our number one priority is the satisfaction of our customers. The strong presence of Airbus Helicopters in 25 countries in the region helps us keep high levels of satisfaction.”
“Large quotes usually go at the bottom or top the wide text column, only one per spread, followed by the credit name and position” – Name of person, Company position www.acb-ps.com | acb@acb-ps.com | www.cyrilbath.com | sales@cyrilbath.com
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BRAL: What are some of your expansion plans? SD: “In Latin America, our key countries are Brazil and Mexico, where we have industrial plants. On the other hand, we have developed a support network around the countries we have presence in to ensure our aircraft services.”
Suppliers Security is one of the most important aspects in the aerospace industry, there are programs that verify if global standards are being follow, such as Nadcap, a system that detects areas of improvement in order to ensure flight safety and compliance with new requirements or updates, such as regulation AMS2750 related to thermal processes.
Supplier profile
- ACB - Aerospace Metal Solutions
ACB and CYRIL BATH are the world leaders in aerospace metal forming solutions. The Group offer includes: - Design, manufacturing and installation of machines for metal forming (Stretch forming, Elastoforming, Hot Forming, Superplastic Forming, Linear Friction welding…) - Supply of related simulation softwar - Parts manufacturing in its own factories Thanks to its experience as press and parts manufacturer, the Group can provide turnkey solutions starting from simulation, tool design, parts development up to Turnkey workshop Website: www.acb-ps.com
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www.demagruas-hormiga.com.mx
Airbus Helicopters
la t i n a m e r i c a
Falling short on these requirements risks both accidents and other companies’ ability to continue operations. In regards to international norms, Airbus Helicopters works with Global Thermal Solutions in Mexico, as well as other local suppliers that are close to their manufacturing plants and have the availability and resources to update their requirements with information about new global aerospace standards for the annual production of these aircraft provisions. “We have a policy called Global Supply Chain (GSC). We respect the Airbus group policies in general. The GSC policy is very demanding with suppliers in Mexico or anywhere in the world. Safety is a non-negotiable element,” Durand said.
Airbus Helicopters in Rio de Janeiro
Heat Treatment Mexico NADCAP w w w . e u r o c o p t e r. c o m . m x
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www.hexagonmetrology.com info@hexagonmetrology.com.mx
Airbus Helicopters
la t i n a m e r i c a
Sustainability in Air and on Land The company is focused on minimizing their environmental footprint, even in their new plant in Queretaro in which they generate electricity for their own use and for third parties. The company offers a
The company operates a wastewater treatment plant that is used for irrigation. On environmental issues such as waste management, the company is subject to *REACH global regulations, a program created by the European community.
wide range of ambulance helicopters
Additionally, they have created the quietest helicopters in an effort to minimize noise pollution, such as the EC130T2 Ecureuil, the only aircraft authorized to fly over the Grand Canyon in Arizona, USA. “Respect for the environment means less noise and less pollution from industrial products. The company policy is faithfully dedicated to respecting the environment,� Durand said. Growth and Investment in the Region Airbus Helicopters of Mexico foresees a bright future in Latin America, due to the lack of aircrafts produced in the region against the continuous demand of the rest of Mexico and Latin America. The company offers a wide range of ambulance helicopters, specialty sector in which they are leaders in Europe and the United States, with an expected growth of $ 1,000 million mid-term. They w w w . e u r o c o p t e r. c o m . m x
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Airbus Helicopters of Mexico
Their helicopters are used by the public and private sectors
Non Destructive Testing Worldwide Provider EXPERT
México www.boysen.aero
NDT EXPERT México offers services and products global solutions, manufacturing and maintenance, for the aerospace industry in México and Latin America
www.testia.com - contact.mx@testia.com
info@boysen.aero
la t i n a m e r i c a
also provide services to the oil and gas sector, which has expanded their operations in the Gulf of Mexico, among other associated services.
Company Information name
BRAL: What is the production goal in the Queretaro plant for 2015? SD: “We have proven that this plant is international in quality and productivity. It will systematically increase the level of investment in the country, particularly in the Queretaro plant for this being our main site for industrial growth in the area,” Durand said.
“We have proven that this plant is international in quality and productivity. It will systematically increase the level of investment in the country”
Airbus Helicopters (EUROCOPTER) Industry
Manufacturing / Aerospace headquarters
Ciudad de Mexico, Distrito Federal, Mexico founded
1992 employees
300 revenue
USD +$95 million email
gloria.illas@airbus.com website
www.eurocopter.com.mx
– Serge Durand, CEO of Airbus Helicopters of Mexico
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Varley Group:
Defence & Aerospace Lea
As one of Newcastle’s oldest manufacturing companie the expertise and wide-ranging knowledge other comp Written by: Laura Close Produced by: Robert Lundberg
aders
es, Varley Group has panies do not.
Va r l e y G r o u p
Varley’s automative capabilities include metal fabrication, machining, fusion welding, vehicle building, mechanical assembly.
As one of Newcastle’s oldest and most advanced engineering companies, Varley Group has provided its customers with innovative solutions and quality designs and products for over 125 years. The company has worked on projects in several different disciplines and industries including defence and aerospace, specialised 92
November 2014
vehicles, electric vehicles, power services, ship repair rail services and telescopic towers. Recently, in 2013, Varley Group acquired Telescopic Tower Enterprises in Queensland and BJM Electrical. Varley Group is committed to safety, in ensure the welfare of its people and visitors; customer focus, to offer the best customer
a u s t r al i a
service through open and honest relationships; high quality workmanship, to ensure high-quality products, services and employees; acceptance of change, to adapt to changes in customer needs, technology and social demands; and success, to secure continuing financial, technical and market success. With locations in New South Wales, Sydney and Brisbane, the company has demonstrated its expertise on projects both large and small, earning a reputation for first class work locally, nationally and internationally. By providing quality customer service and a broad but specialised skill base, Varley Group has had the competitive edge in the region since its inception. Defence & Aerospace Varley Defence & Aerospace has been a recognised supplier of engineered military products since its establishment in the early 1980s. This division of the company has been responsible for the design and manufacture of a wide variety of land, air and sea products for military applications. For over 30 years Varley Defence & Aerospace
has been building up extensive knowledge and experience. The company is able to provide services ranging from conceptual design through to product manufacture and provide throughlife support. Several products are available from Varley Group’s defence and aerospace line: • Deployable shelters and enclosures integrated with tactical mission systems and logistics support equipment • Specialised trailers fitted with stabilising system and elevating platforms • Specialised vehicles bodies and modules • Specialised aircraft ground support equipment (GSE) • Customised storage and transportable containers • Marine gangways and accommodation ladders This particular arm of the company prides itself on its continuously improving service to customers— which includes both the Australian Defence Force and Defence industry alike—providing innovative, integrated and cost-effective solutions and continually factoring w w w. v a r l e y g r o u p . c o m
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Va r l e y G r o u p lessons learnt into the company’s approach to new projects. Major Contracts & Manufacturing Skills In both prime and sub-contract arrangements, Varley Defence & Aerospace offers customers the benefits of knowledge, experience, flexibility, and highly skilled design and manufacturing teams supported by the full resources of the Varley Group of companies. Most significant contracts include: • Land121 Phases 3A & 5A
OVESCO Australia’s Leading Automotive and Industrial Hardware Supply and Logistics Company
ovesco.com.au
Vehicle Modules for new fleet of Army G-Wagons • RAAF Transportable Air Operations Tower (TAOT) Mobility Systems • Deployable Tyre Maintenance System (TMS) Shelters • F-35 JSF Landing Gear Handling Systems and Canopy Lifting Assemblies • AP-3C Orion Aircraft Docking Stations, and Mobile Work, Support and Access Platforms • Army Medium Maintenance
a u s t r al i a
Shelters • Assemblage Enclosures for Battlefield Telecommunications Network • RAAF Control, Command and Communications Shelters • Fit-out of MECC Expandable Shelters • Secure Office Shelters • Air Defence Vehicle Bodies These projects were supported by Varley Group’s expertise and highly developed skills in manufacturing. Below is a list of skills the company has mastered and can offer to its clients. • Metal Fabrication • Machining • CNC routing • Lightweight metal fabrication • Fusion Welding • Vehicle building • Mechanical Assembly • Fit-out (mechanical, electrical, data/video/ audio cabling) • Vehicle body/chassis building • Auto electrical 12V/24V • Electrical 240V/415V • Fibreglass and laminated panelling • Spray painting • Panel beating • Plumbing • Shipwright • Product maintenance, repair, overhaul and upgrade
Company Information Industry
Manufacturing headquarters
New South Wales, Australia founded
1886 employees
650 revenue
$110 Million products/ services Varley is one of Newcastle’s oldest and most advanced engineering companies. We have consistently provided our customers with innovative solutions and quality in design and manufacture for 128 years. Varley’s work on projects large and small has earned the company a reputation; locally, nationally and internationally, as a supplier of first class work, a manufacturer of quality products and a provider of unsurpassed service.
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Rhino Water Tanks:
Water Storage Solutions for
Rhino Water Tanks provides products and services f rural and commercial customers. Written by: Laura Close Produced by: Wayne Masciotrio
r Australia
for domestic,
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Mt Thorley tanks in progress for Rio Tinto.
RHINO WATER TANKS is a privately owned and operated Australian company with over 20 years experience in the water storage industry. Currently Rhino Water Tanks is represented in all states and has a growing network of distributors and installers. Strategically the company is moving towards offering more options to contain various solutions, not just water. They are also looking at options to expand into more environmentallyorientated solutions and self98
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supporting systems for water, power and gas. Water Tank Specs These modular steel tanks range in size from 26,000 litres to over 2 million litres, and are available in Zincalume (a metallic coated sheet steel that offers two to four times the corrosion resistance of galvanised steel) or Colorbond (a product specifically made for Australian conditions and comes in a variety of colours). The whole tank and all of its components—including the Infinity
a u s t r al i a
Rhino Water Tanks
tank liners—are manufactured in the company’s Western Australian factory. Rhino Tanks made this a priority for their company to be able to control the quality of every aspect of the tank manufacturing process. Infinity tank liner is a reinforced food-grade Metallocene coated liner that is UV treated and is suitable for exposed applications where a roof is not required. Products in Rhino Tanks’ line are approved for drinking water, as well as a range of other liquids including vegetable and animal oils, both high
and low pH water as well as sewerage, waste and recycled water. All of the wall sheets are corrugated and rolled for strength; roof trusses are hotdipped galvanised for durability. Continuous Improvement Rhino Water Tanks is a qualityendorsed company. All products are manufactured in the Western Australian factory under a quality management system certified to ISO 9001. Rhino’s quality management system aims to benchmark its w w w. r h i n o t a n k s . c o m . a u /
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“The domestic water tank market is still our main focus and we use this as a base to grow into the other areas when it suits. To be around in five years time in the challenging manufacturing industry the main key is to keep being smarter, innovative and economical with anything you do and that is our main focus.”
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products and services against the best in the world. The wellrecognised ‘Five-Ticks’ Standards Mark is proudly displayed to give customers the confidence that Rhino Water Tanks continually strives to provide cost effective, quality products and services that meet the customer’s individual needs and expectations. “Being an ISO 9001 accredited company, continuous improvement is what you strive for,” said Duane Crombie, CEO. “Furthermore, being a manufacturing business is always tough and gets tougher with every year due to rising expenses and materials and market pressure to make a sale that is mainly based around price and not quality and service.” The company has made key changes with their manufacturing systems, where Rhino has been able to increase productivity with the introduction of machines and robotics. Material usage and time management are the two main focuses to continual improvement and will continue to drive the business to better results.
a u s t r al i a
A couple of Commercial Rhino Tanks completed for a warehouse in Canberra.
Domestic & Rural and Commercial Water Tanks Rhino Water Tanks provides products both for domestic and rural needs as well as for commercial sites. The company’s range of domestic and rural water tanks are specifically designed with the unique needs of the user in mind. The following features are included on each tank dedicated for domestic and rural customers: • Rhino Infinity Tank Liner • Bluescope Steel Corrugated Wall & Roof Sheets • Dust and Vermin Proofing Seal
• Tank Inlet • 20-year Warranty • Magnesium Anodes for Corrosion Protection • 50mm Scour Drain • Lockable Access Hatch • 100mm Bell Mouth Overflow There are also a range of optional features: • Additional Outlets and Valves • Fire Fighting Coupling • Rainsavers – Tank Roof Catchment System • Removable Internal/External Ladder • Additional Inlets w w w. r h i n o t a n k s . c o m . a u /
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Some fantastic photo’s of three Rhino Tanks installed in Rio Seco, Peru. 102
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• • •
Water Level Gauge Tank Roof Fascia Rhino Aqua Tub
Company Information
Global Operations The global expansion is through Rhino’s sister company called Rhinex. The main factor that drives this is the need for cost-efficient storage that can be exported and freighted efficiently and then create a large water storage solution that is constructed simply with basic tools and expertise. This will continue as the demand for clean drinking water grows around the world and the flexibility in establishing a water point in difficult area’s or terrain. Rhino Water Tanks now has two distributors in United Arab Emirates, and has recently started shipping tanks to Afghanistan through their Dubai Distributor Protech General Trading program. In 2011, the company opened a location in Port Moresby, the capital city and largest city in Papua New Guinea. “We see the business growing still but into areas where it suits our business needs and not spread ourselves too thin,” said Crombie. “The domestic water tank market is still our main focus and we use this as a base to grow into the other areas when it suits. To be around in five years time in the challenging manufacturing industry the main key is to keep being smarter, innovative and economical with anything you do and that is our main focus.”
Industry
Manufacturing headquarters
Western Australia founded
1990 employees
100 revenue
$50 Million products/ services
Rhino Water Tanks provides several different water storage solutions for the wide range of customers in Australia. The tanks are Australian made, owned and operated, and are built with the strongest materials on the market for the highest quality.
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AEA:
Brazilian Association of Automotive Engineering 2014: Year that AEA completes 30 years and develops a technical manual on the Inovar-Auto
Written by: Nilton Monteiro Produced by: Nayara Ferreira 105
AEA
A
President of AEA, Antonio Megale
Alternative Fuels Seminar
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EA – Brazilian Association of Automotive Engineering is a neutral forum for convergence of ideas that bring together private companies from automotive industry, universities, research institutes and government with the objective to seek for solutions that consider interests from the automotive sector and general society about issues related to mobility. In 2014, the year in which the association completes 30 years from foundation, we remind important chapters from this history and the major contributions for automotive sector until today. The history of AEA is part of the Brazilian history of automotive industry and is integrated with ethanol development in the country and its use as an alternative fuel, as well as its relationship with engineers that dedicated their careers for these studies. The ethanol promoted the entry of this technology in the country, an opportunity for engineers to have an alternative fuel for the gasoline. In 1975 the National Program of Ethanol (PROALCOOL) was created. It had the objective to offer an alternative source of energy in substitution of oil derivatives, especially the gasoline, and increase the ethanol production with the dissemination of sugar cane distilleries across the country. To foster this initiative, it was needed an integration of experts from various segments related to ethanol production and use in the research field, as well as pollutants emissions
BRAZIL
30 years, the history of Brazilian Association of Automotive Engineering (AEA), is part of the history of the Brazilian automotive industry.
control. It was created in 1984 in Brasilia (capital of Brazil), the Brazilian Association of Automotive Engineering (AEA) with the objective to concentrate and disclose information in an independent way, and technically support the government. Since then, AEA has been working on studies, rules and proceedings developed in several areas of automotive engineering. The 30 years of AEA, with its history of challenges and successes, will get a milestone with the commemorative book “AEA 30 Anos�, which will be launched soon and shows the association chronology and insertion it on the Brazilian automotive history. Nowadays, always seeking to be engaged with the more important w w w. a e a . o r g . b r
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AEA
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issues of the sector and providing service to Brazilian society, AEA, since the beginning of the discussions about Brazilian new automotive regime called Inovar-auto, has an important role on this question. In partnership with ANPEI and Inventta BGI, AEA created a working group to discuss the impacts of Inovar-Auto, especially in what is related to research activities, technology development and innovation, necessarily involving all the active parts of automotive chain, with the participation of: ANFAVEA(automakers), SINDIPEÇAS(supply chain), USP (University of São Paulo) and Brazilian Government departments of Science, Technology and Innovation and development, Industry and International Trade, MCTI and MDIC ministries w w w. a e a . o r g . b r
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AEA
respectively. This group was created with the objective to stimulate the discussions about new automotive regime and clarify questions, to help on program operation and finally, build a conversation channel among industry, government and universities. The meetings discussed relevant questions to the technology innovation process in automotive industry, with the support of experts, automotive engineers, legal areas, government and academic representatives. As a result, AEA aims to share this knowledge through a technical guide, which will serve as a support for any questions related to new regime, for all parts involved in the process. In addition to this guide, as a contribution for clarify new regime issues, 110
November 2014
BRAZIL
Company Information INDUSTRY
Automotive HEADQUARTERS
São Paulo, SP - Brazil FOUNDED
07/24/1984 NUMBER OF MEMBERS
125 MANAGEMENT
on August 05 and 06, 2014, AEA held its main event, the SIMEA – International Symposium of Automotive Engineering, having as a theme “Inovar-Auto and Brazilian Technology Evolution”, through which could share to more than thousand attendees the key measures and actions that are been taking to understand this program. The members of AEA are part of the automotive history and the activities developed by the association are fundamental for the development of automotive sector in the country.
President: Antonio Megale Vice-President: Sidney Oliveira Executive Director: Nilton Monteiro
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Kepler Weber:
tradition & quality in agriculture production units
With innovative solutions, the company is the largest of the southern hemisphere in the sector of grain storage and dry bulk handling Written by: Flรกvia Brancato | Produced by: Nayara Ferreira 113
KEPLER WEBER
I “Record crops, historically high prices of commodities and the implementation of new modalities of financing to producers from the last quarter of 2012, through Finame-PSI and PCA programs, caused the company market size to double within two years” – VP of Kepler Weber, Olivier Colas
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nvolved in the supply of equipment for the sectors of agriculture, port, logistics and mining since 1925, Kepler Weber offers the most complete range of products for grain storage, with the most elaborated and diversified models of silos, driers, cleaning machines and conveyors. Globally recognized for adjusting, producing and installing the most relevant solutions of the industry while meeting customers’ needs, Kepler Weber is currently the largest company of the sector in the southern hemisphere, and the third largest in the world. To keep pace with the quick and ongoing growth of the Brazilian industry, investments in innovation play a key role in their journey. This can be perceived from the success and excellence of the works performed at Kepler Weber’s Cetek – Technological Center for Research, Development and Innovation – regarded as one of the largest technological centers of the world. The relevant support to all such efficiency comes from a great supporting staff, from salespersons and sales representatives trough technical support, engineers and specialized technician teams devoted to developing solutions and ready to inspect over 600 works worldwide, simultaneously. According to the Vice-President of Kepler Weber, Olivier Colas, the solutions developed by the company are the ones that best preserve the integrity of the products to be stored and carried. “That is, the company offers
BRASIL
Factory in Campo Grande, MS
the market the most robust team of professionals with unique expertise to assure the customers the best operating costs and cutting-edge equipment.� states the VP. SECTOR HIGHLIGHT In addition to offering the market one of the largest and most robust team of engineers to implement and create storage units adjusted to each customer’s reality (by means of two plants equipped with cutting-edge equipment), Kepler Weber is able to manufacture, assemble and deliver any type of project required by the Brazilian market in record time. With a considerable projection abroad, the company exports to all five continents, with prominent positions in South America, Middle East and East Africa. The company has recently expanded its activities by w w w. k e p l e r. c o m . b r
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There is a myriad of reasons to the success of Kepler Weber, the
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BRASIL
successfully entering the Dry Bulk Handling sector, selling and manufacturing conveyors to all port and ore areas. Colas assumes the good phase and unequivocal success in a tone of pride, “The company is the only one in the afterharvest sector listed in Bovespa. Clear rules of governance and a positive track record of delivery of value to shareholders led KW to close 2013 at the highest rising (+236 percent) of all companies listed in BM&FBovespa”. One of the main positive factors for all that could be attributed to the fast growth in grain production (soybeans, corn, wheat and rice) over the 2000 years, and according to Colas, “particularly from 2010 on, there was instability between supply and demand of grain storage, and today the storage deficit exceeds 60 million tons.” He said those and other elements are accountable for the enormous growth of Kepler Weber market as well. “Record crops, historically high prices of commodities and the implementation of new modalities of financing to producers from the last quarter of 2012, through Finame-PSI and PCA programs, caused the company market size to double within two years,” he explains. Working in several segments in dry bulk storage, the company is expecting a substantial growth of some of them specifically, and is prepared to meet the demand of sectors such as mining, sea and river ports, household solid waste
Technology for storage and shipping Flat Bottom Silos
Elevated Silos
Tulhas (Grain storage)
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Usiminas e Kepler Weber. Uma parceria que dá liga.
A Usiminas tem orgulho de somar forças e contribuir para o sucesso da Kepler Weber. Alinhados com o programa de crescimento da empresa, desenvolvemos soluções inovadoras em aço que contribuem para a excelência de sistemas de armazenagem reconhecidos mundialmente. No que depender do nosso apoio, essa união trará ainda mais conquistas, consolidando a Kepler Weber como líder em seu setor.
Usiminas. Fazer melhor sempre. www.usiminas.com
BRASIL
and brewery, for example. PROFICIENCY AND QUALITY With a forecast to reach an annual production of grains (2014/2015) of about 200 million tons in the coming years, the Brazilian market seems to be among the leading powers of the global agro-business, while Kepler Weber is responsible for storing almost one half of such amount, positioning itself in markets of different cycles to ensure greater force of sales, profitability and continued growth. Not only the recent investments, but also the after-sale operations, are definitely some
“92% of the employees in all functional categories benefitted from it. Operating technicians were the ones who got more hours of training, 69% of which covered by training programs” – VP of Kepler Weber, Olivier Colas
Elevated Silos, brewery in Rio de Janeiro w w w. k e p l e r. c o m . b r
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Motors | Automation| Energy | Transmission & Distribution | Coatings
WEG and Kepler Weber Efficiency and reliability going beyond the borders
www.weg.net
BRASIL
of the differences that place the company on the top of the list. Colas assumes that the investments made in the factories of Panambi and Campo Grande place the company as one of the world’s most competitive companies in the sector, and assures: “the after-sales mainstay is the segment that transversally serves other segments of the company. This area includes the sale of spare-parts and technical support services. It will soon be expanded to preventive maintenance, training and after-harvest maintenance.” Moreover, the company coordinates the development of its employees in a peculiar way. They learn by means of programs in the commercial area, internal and external training sessions, they get financial support for professional education, and there are also Programs of Incentive to Education, which offer scholarships for language programs and specialization or Master of Business Administration (MBA). The vice-president discloses that, last year alone, the company invested BRL 800 thousand in training, amounting nearly to 17,000 training sessions. “92 percent of the employees in all functional categories benefitted from
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it. Operating technicians were the ones who got more hours of training, 69 percent of which covered by training programs,� he summarizes. INVESTMENTS AND CUTTING-EDGE TECHNOLOGY Between 2010 and 2013, nearly BRL 90 million was invested, mostly to increase the company production capacity and productivity gains. Still this year, investments will reach as much as BRL 65 million, corresponding to the modernization of factories and industrial processes, as well as to operating improvements including the launch of the world’s largest silo, with no central column and able to store up to 35 thousand tons of soybeans. Keeping pace with all the technological evolution required by the market itself, the initiatives go from implementing SAP through introducing new
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KEPLER WEBER
M. Dias Branco project
“Kepler Weber excellent performance is a result of strategic decisions made over the past years, which have deeply changed the company, establishing its leadership in Brazil” – VP of Kepler Weber, Olivier Coas Khronos grain dryer 124
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BRASIL
software to all operating areas of the company. In production, for example, state-of-the-art laser machines and modern profilers were purchased, which place Kepler Weber among the most advanced and competitive companies in the world. For example, the company offers an exclusive and innovative solution for grain storage and maintenance for family farming in Africa, allowing a substantial increase in the income of small agricultural producers. “The benefits of the silo Kikapu go beyond the field. One of the main differences of the product is the ventilation system that works by means of a solar panel, which adds environmental responsibility to the product and enables its installation in any region. The ventilation allows for storage in optimal conditions for grain maintenance, thus reducing production losses by the action of moisture and fungi,” boasts Colas. Another important feature is that the equipment is practical and easy to operate, since all the procedures from assembly to operation can be performed by the very producer. With brilliant - and evident - performance, the vice-president is concise and admits, “Kepler Weber excellent performance is a result of strategic decisions made over the past years, which have deeply changed the company, establishing its leadership in Brazil.” He adds: “More challenges lie ahead for us to maintain our position and prominence, but we know we can count on a very motivated and prepared team.”
Company Information INDUSTRY
Agriculture HEADQUARTERS
Panambi / RS - Brazil E S TA B L I S H E D
1925 PRODUCTS/ SERVICES
It has a broad portfolio of customized solutions comprised of metal silos, grain driers, cleaning machines and grain pre-cleaning, as well as horizontal and vertical conveyors MANAGEMENT
Olivier Colas: Vice-president Manoel Piragibe Teixeira Júnior: Industrial Director João Tadeu Franco Vino: Supervisor
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Teksid invests
heavily to keep pace with the market
Company invests R$ 250 million mainly in the production of aluminum parts Written by: Flรกvia Brancato | Produced by: Sergio Ambrosino
127
Teksid
R
epresenting one of the largest automotive foundry groups in the world, Teksid keeps pace with developments in the market and offers the very best to cater to current trends in the sector. Specializing in casting and machining cast iron and aluminum, the group owns factories in Portugal, Poland, Brazil, Mexico, Italy and China, as well as a commercial office in the United States, and has a production capacity of approximately 633,000 tons per year. The Brazilian branch, which has beenin operation for over three decades, has become a leader in the production of engine blocks for cars and light commercial vehicles with a market share of over 70%. Teksid Brazil has two large plants located in the same industrial park in Betim, a Metropolitan Region of Belo Horizonte. The two factories together, one producing iron and the other aluminum, are capable of producing more than 300,000 tons of parts per year, in a total combined factory area of more than 420,000 m².
Expansion of aluminum casting factory
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Some Teksid Products Catalog
Sustainability Committee of Teksid
Head for diesel engine
Teksid’s Commercial Director, Raniero Cucchiari, proudly explains that these figures are already growing as a result of the planned investment, primarily with regard to the production of aluminum parts. “At the end of last year we began a very important cycle of investment in aluminum casting. We are talking about R$ 250 million between 2013 and 2016”. The primary motive of all this activity is linked to changes associated with the Incentive Program for Technological Innovation and Consolidation of the Production Chain for Automotive Vehicles (Inovar-Auto) enacted by the government in 2012. The program is a measure adopted by the Federal Government with the aim of stimulating investment in the national automobile industry. It is estimated that by 2015, the Program will raise more than R$50 billion of investments in the sector.
Automotive Aluminum Head
Crankshaft
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Teksid
Brasil
Changes and expectations With the intention of supporting technological development, innovation, safety, environmental protection, energy efficiency and the quality of vehicles and parts, one of the measures taken by the automakers is to produce more economical cars. And that is exactly where Teksid’s work comes in; producing new parts that were formerly made with iron but will now be made with aluminum. “This trend prompted us to begin producing aluminum blocks for the new motor platforms. At the end of last year we
Some Teksid Products Catalog
Flywheel
Wheel end
Exhaust manifold
Carousel where aluminum engine blocks are produced w w w. t e k s i d . c o m . b r
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Teksid
Operative Unit - Iron casting
confirmed the investment and at the beginning of 2015 we will begin operations. The expectation is to reach a production rate of 720,000 blocks per year�, celebrates Cucchiari. Today the group produces cast iron parts such as blocks, head gaskets, brake discs and cylinders, wheel ends, crankshafts, casings and components for cars and industrial vehicles, as well as aluminum head gaskets. Overall more than 200 items are produced. The forecast for the coming year suggests that a productive capacity of almost 1,400,000 head gaskets will be reached in the aluminum foundry, taking into account the installation of a third carousel which
Brasil
is currently being concluded, and which will begin to function next year. To guarantee the quality of its products, Teksid constantly invests in development manufacturing and distribution processes. “Within the investment plan – and it should be noted that this is the largest investment by the Teksid group worldwide and probably one of the most significant investments in the Brazilian car parts sector – it is also important to highlight the new furnaces for iron casting”, explains Cucchiari. Its high level of quality has made Teksid an award-winning company that is internationally renowned as a trustworthy supplier. The company uses four molding lines to manufacture grey and modular cast iron parts,
Aluminum engine block w w w. t e k s i d . c o m . b r
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Teksid with the flexibility of chemical composition to serve the automotive industry and car manufacturers in their diverse applications.
“At the end of last year we began a very important cycle of investment in aluminum casting. We are talking about R$ 250 million between 2013 and 2016” – Commercial Director, Raniero Cucchiari
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Cutting edge technology Occupying a prominent position, the company caters to the largest automakers working in the country. Among its clients are the most important manufacturers of cars and industrial vehicles in the world, as well as global manufacturers of engines and tractors. Boasting a quality product and excellence in manufacturing equipment, the different technologies used by Teksid make all the difference. Nominated for the AutoData Prize in the category of Technological Innovation, the exclusive HPI (High Performance Iron) alloy, for example, was specially developed for the production of blocks and head gaskets used in state-of-the-art engines, which demand high performance and power as well as low fuel consumption and emissions. Another important trend to which the company is responding to is the production of diesel head gaskets and blocks using CGI (Compact Graphite Iron) technology. Raniero admits, “That is a novelty which we were not prepared for until recently and we are now ready to serve the market”. Another highlight of the company is it’s trailblazing in the acquisition of liquid pig iron. The process, inaugurated in 1988, was
F u n d i รง รฃ o d e A u t o p e รงa s
Lightweight parts finishing - Iron casting w w w. t e k s i d . c o m . b r
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Iron casting
developed entirely by Teksid and allowed considerable gains in the quality of the casts, an increase in productivity and a saving of 32% in the consumption of electrical energy without requiring any expansion of the installed capacity.
Automotive engine block
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November 2014
Sustainability Throughout Teksid’s history, it is possible to find initiatives displaying a commitment to ethics, transparency and socio-environmental issues.
A Sustainability Committee is responsible both for evaluating all actions already undertaken, coordinating new possibilities and working for future improvements related to environmental responsibility. Raniero nevertheless reminds us that “as well as adding new technologies and increasing productivity to meet demand, maintaining sustainable actions is one of our greatest challenges�. The characteristics of the foundry production
Diesel engine block
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Teksid
Regenerating sand system of alu
process result in the generation of industrial waste, however the company has strived to adopt sustainable practices which allow the reduction of this waste or its reuse in the production process. A good example was the recent prize won by the Mexican branch, which was awarded the “Environmental Leadership Award (USA)”, during the Cummins Suppliers’ Conference. The award was made by the client in recognition of the importance of the investment and the installation of a system to recover sand in the factory. According to the plans, “we aim to work with the same concept in our Brazilian branch, where the idea is to increase the capacity for regeneration of sand by 70% in two years”, the executive explained. Moreover, the group is constantly seeking to maintain its role as an 138
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Brasil
Company Information Name
Teksid Industry
Casting Headquarters
Betim, Minas Gerais e s ta b l i s h e d
1976 Products/ Services
uminum casting
example of environmental awareness in the sector and, among other actions, invests in the adoption of systems for the filtration of suspended particles, the recycling of the water used in the production process, the classification and adequate disposal of solid waste, and a system to treat rainwater. To conclude, “in its first WCM audit – A broad manufacturing program which aims to reduce waste – Teksid Brazil stood out among the other plants in the group by obtaining 12 points”, Raniero says modestly.
blocks, head gaskets, brake discs and cylinders, wheel ends, crankshafts, casings and components for cars and industrial vehicles, as well as aluminum head gaskets Management
Rogério Silva Junior : CEO Raniero Cucchiari: Commercial Director
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Tetra Pak
Invests Heavily in the African Market Written by: Sam Jermy Produced by: Kiron Chavda
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T E T R A PA K
The global food and drink processing and packaging company Tetra Pak, recognises huge growth potential in Southern Africa
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T
etra Pak is looking forward to a surge in market growth in the coming years as southern Africa’s appetite for dairy and juice products held in paper based packaging shows no abating. The company, which was founded in Sweden in 1951, is continuing to plough significant investment into strengthening operations in its Pinetown packaging material factory near Durban. It is also investing heavily in training and employee development. John Strömblad, Managing Director of Tetra Pak South Africa, said: “We are investing a lot on staff training to ensure we are meeting increasing demand and heightened customer expectations.” He explains that consumers are constantly looking for new, more convenient products,
AFRICA
which puts pressure on manufacturers to continuously innovate their offerings. “There is a lot more diversity in food packaging and products compared with five years ago,” he said. Due to this increased demand, the company is always looking at ways to develop new packaging solutions and update its production facilities. “We already have a strong technical service area, but we can be even better,” said Strömblad. “We are expanding our capabilities in that respect by offering value added services such as training external operators by illustrating how to reach higher levels of efficiency.” Rise to prominence Aseptic packaging, which is the practice of filling a sterile food or liquid into a paper based
250 The number of employees across its South African operations
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www.jpm.pt
Founded in 1994, JPM is in the fields of Industrial specialized in the design equipment, primarily in
s a technologically advanced company that develops its activities primarily l Automation and Mechanical Engineering. Throughout its journey, JPM has n, production, installation, maintenance and repair of industrial plants and food, pharmaceutical and chemical industries.
SUPPLIER PROFILE
JPM INDUSTRY
Services: Founded in 1994, JPM is a technologically advanced company that develops its activities primarily in the fields of Industrial Automation and Mechanical Engineering. JPM has specialized in the design, production, installation, maintenance and repair of industrial plants and equipment, primarily in food, pharmaceutical and chemical industries. We offer accuracy, innovation and quality in every product and service we develop in order to effectively attend the needs of our customers. JPM has a long experience, founded in numerous projects developed in more than 30 countries all over the World. We are a team of more than 90 people, average age 34, with the appropriate competencies in mechanics, mechatronics, automation, electricity, programming, project management, maintenance and kaizen & lean methodologies, operating on an industrial area of approximately 10.000 m2. Vision: To grow in a sustained way and in the long-term, acting as a lead partner for multinational companies. Mission: To offer engineered solutions, automated equipment and maintenance services for distribution lines, using the latest technologies available, to industrial customers on a global scale, aiming to optimize their production and/ or logistics processes. Website: www.jpm.pt
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package, started in 1959 at Tetra Pak. When a sterile product such as UHT milk goes into the packaging, the perishable goods can then be kept for much longer periods without the need for refrigeration. This led to generous savings in distribution and the overall handling of products, such as a reduction in energy consumption. Then in 1991 Tetra Pak acquired a diverse Swedish engineering company called Alfa-Laval AB. It produced industry leading industrial and agricultural equipment and milk separators. At the time of the takeover it was the largest deal Sweden had ever seen. Strömblad said: “Today, if you set up a dairy you can buy or lease everything you need from Tetra Pak. Not only the filling and packaging equipment, but also everything you need for processing such as pasteurisers, sterilisers, homogenisers, automation equipment and so on. “Obviously it’s an investment for that company, but then we also provide technical service and maintenance support to make sure everything is performing properly. The technical service training centre in Johannesburg is where we train our employees from the whole of sub-Saharan Africa. “Most importantly we train our customer’s operators too; we run very practical training courses in our Johannesburg facility. The vast majority of business comes from within South Africa but we’re seeing very interesting growth
Key Personnel
John Strömblad Managing Director John Strömblad MD of Tetra Pak Southern Africa is a 28-year Tetra Pak veteran who has risen through the ranks. He began as marketing trainee and sales administrator in Lausanne, Switzerland. He joined Tetra Pak South Africa from Greater China as VP Sales Management. Prior to Greater China he was the M&PM VP based in Seoul. He has a great deal of experience in developing markets having led the Greater China region for Tetra Pak since 2012
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75% Percentage of Tetra Pak packaging used for milk-based products
potential in other markets such as Zimbabwe, Zambia, Angola and Mozambique too.” The global Tetra Pak group has seen a tremendous growth over the past 30 years, and the same can be said for South Africa since operations started there in the early 1990’s. Today it employs around 250 people in its country headquarters in Johannesburg, engineering centre in Cape Town and packaging material factory near Durban. Managing growth The encouraging signs of growth throughout the region Strömblad manages has seen many
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of its customers forge successful international brands. The South Africa entity oversees a total of 10 southern African countries including Botswana, Malawi, Mauritius, Mozambique, Namibia, South Africa, Zambia and Zimbabwe and its main export market is west Africa. However, there are 38 Tetra Pak factories worldwide so there is an allocation of products on a global scale too. Globally, 75 percent of Tetra Pak packaging contains milk and by-and-large South Africa follows this trend. But recently, as well as the leading juice firms, there has been a more diverse range of produce utilising the packaging such as tomato centric products, wine and even canned food like baked beans. Strömblad said: “We provide various different packaging materials which we produce in the factories. That material is then shipped to our customer’s site, sold to them, then the customer uses that material to pack their product. That’s the overall business model. “We have recognised that seed and oatmeal drinks, as well as almond and soya milk is probably one of the biggest growing segments globally and we expect similar growth movements in the future. If we look at market data, we are looking at around 10 percent growth in carton packaged milk and a decline of chilled milk of about four or five percent going forward in the coming years.”
“We provide various different packaging materials which we produce in the factories. That material is then shipped to our customer’s site, sold to them, then the customer uses that material to pack their product. That’s the overall business model.” – John Strömblad Managing Director
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13%
Percentage the group’s carbon footprint was reduced by from 2005 to 2010 150
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Sustainability and CSR The three parts of Tetra Pak’s products are the paper-based material, polyethylene and aluminium foil. Carton material is sourced mainly from Scandinavian manufacturers because in order to form these packages longer fibre is needed, and that comes from slowly growing forests typically found in Scandinavia and North America. “Environmental thinking is in our genes, it
M A N U FA C T U R I N G
Tetra PlantMaster
started right from the beginning in the 50’s. The most obvious way to reduce impact to the environment is to reduce the amount of packaging material. If you take a typical 1 kilogram carton it weighs 28 grams but if you have a glass bottle it is more like 300g. “A straightforward reason for our fantastic sustainable performance is down to the fact that we are basing our manufacturing on a renewable resource of paper. It comes from responsibly
“Environmental thinking is in our genes, it started right from the beginning in the 50’s” – John Strömblad
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Technical Training Centre 152
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managed forests which means you plant more trees than you cut down. Most of our packaging material has an FSC marking on them and we are a driving member of the Paper Recycling Association of South Africa (PRASA).” “We are working with the Polyethylene technology providers who can give us green PE produced mainly from sugar cane. We are also striving for a barrier material in place of aluminium. You will see an entirely green product from us in the not too distant future.” Tetra Pak has worked hard to reduce environmental impact and achieved tangible results; the group’s carbon footprint was reduced by 13 percent from 2005 to 2010 despite substantial company-wide growth. It also has a three year old partnership with the paper mill Gayatri, going from zero recycling due to a lack of facilities to 16 percent overall, which is continuously rising, enhancing Tetra Pak’s image as a sustainable, ethical company in Southern Africa. Tetra Pak has become a household name in the packaging and food storage sector. Its commitment to sustainability, product development and continued expansion means it remains a long way in front of the competition. With on-going investment into employee development and geographical expansion, it’s likely to retain its world-leading title for many more years to come.
Company Information INDUSTRY
Manufacturing HEADQUARTERS
Johanessburg, South Africa FOUNDED
1951 EMPLOYEES
250 in South Africa REVENUE
Not disclosed PRODUCTS/ SERVICES
Packaging & Processing
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