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Emerging PREDICTIVE ANALYTICS For The Industry HOW TO: Engage With Your Workforce

Powering Ahead With Smart



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



Making It Through O U R L E A D S T O R Y T H I S month tackles

smart financing. As China’s economy contracts opportunities could arise that boost the growth of manufacturing in the west. What lessons, though, have been learned from the years of recession and offshoring, years that have seen a worrying loss of capacity? The sector is still under stress. Manufacturing, which accounts for 12 percent of the US economy, has been under pressure from a strong dollar. Nevertheless domestic demand remains strong too, and the climate is improving monthly. Companies that do best in the lean times are those that adopt smart financial management, spread the risk through asset finance when upgrading equipment, and, wherever else they make savings, continue to invest in technology. Construction related manufacturing is in a better position, as that industry is performing ahead of the curve both in the USA and elsewhere. A good illustration, featured this month, is an aluminium products supplier in Saudi Arabia (where there is no lack of investment in infrastructure and new buildings): ALUPCO is now exporting to 26 other countries.

Enjoy the Issue Abigail Phillips Associate Editor abigail.phillips@wdmgroup.com 3




LEADERSHIP Powering Ahead With Smart Financing


LEAN Emerging Predictive Analytics For The Industry


PEOPLE & SKILLS Want To Be Top Of Your Game? Engage With Your Workforce 4

October 2015


 luminium Products A Company (ALUPCO)



50 Tachi-S Mexico



Clariant Mexico and LATAM



Marcopolo – Superpolo



Powering Ahead With SMART


The role of finance in powering global manufacturing industry Written by: Brian Foster, Head of Industry Finance at Siemens Financial Services in the UK

6 October 2015


LEADERSHIP THE GLOBAL OUTLOOK for the manufacturing sector remains positive this year. Although global manufacturing experienced a mild deceleration in the rate of output expansion, the overall result was nonetheless a rise in output for the thirty-second consecutive month in July. An industry survey in the US also indicated that 88.5 percent of local manufacturers feel they are somewhat or very optimistic about their own company’s outlook in 2015. In Britain, manufacturing output is expected to grow at a rate of 1.5 percent this year, according to the manufacturers’ organisation EEF. As investment is strongly linked to productivity for any manufacturer’s business model, the EEF’s annual Investment Monitor report has found that 95 percent of British manufacturers surveyed are planning to invest to improve their productivity over the next two years. In particular, about

80 percent of them plan to invest in plant and machinery, followed by investment in skills (72 percent) and investment in innovation (33 percent). With shortening technological cycle times and the rapid pace of technology development, investment in up-todate technology is an increasingly important priority for manufacturers. Advancements in additive manufacturing such as the further development of 3D printing products that can now be highly customised to end-user requirements, as well as next stage developments like the printing of integrated electronic components, are taking the industry by storm. In the recent past, and following the economic crisis, many manufacturers felt compelled to put their investment plans on hold. Sweating the existing equipment, however, can clearly harm manufacturers’ competitiveness. A report from the Confederation of British Industry posited that lack of

‘With shortening technological cycle times and the rapid pace of technology development, investment in up-to-date technology is an increasingly important priority for manufacturers’ 8 October 2015


Advancements in additive manufacturing such as the further development of 3D printing products are taking the industry by storm investment in critical technological and process improvements, such as automation and robotics, will place UK supply chains behind counterparts in other countries. Obsolete machinery is more susceptible to malfunction and run the risk of lengthy unplanned downtime, in addition to putting throughput in jeopardy. Now that the UK economy is on more solid ground, investment plans that have been postponed previously have now been gradually realised, with manufacturing investment having increased 48 percent from its trough in 2009.

For many small- and medium-sized manufacturers, however, securing bank credit can still remain a slow and difficult process. According to the latest Credit Conditions Review from the Bank of England, the annual growth rate in the stock of lending to SMEs has been negative for over five years. A growing number of manufacturers are therefore increasingly turning to alternative financing techniques to fund equipment investment. According to a research conducted amongst the global top 40 industrial machinery 9


Technology is a priority for manufacturers and equipment manufacturers from Siemens Financial Services (SFS), over three quarters of respondents have seen increased customer demand for using asset finance to acquire manufacturing equipment in the last two years. 93 percent believe global interest in asset finance will increase further in the next two years, with an annual growth rate of 5.1 percent expected in Europe, possibly the result of deferred investment demand being 10 October 2015

released. The growing popularity of asset finance is likely to be fuelled by budget pressures, with 72 percent of respondents reporting a “squeeze” on their customers’ capital equipment budget in the last two years. Working with specialist financiers, manufacturers can make essential equipment investments while maintaining financial flexibility. Often a financing arm of a technology company, such financiers bring with


them industrial expertise and market understanding. Unlike traditional, generalist financiers who might lack comprehensive technical knowledge to fully evaluate the impact a potential investment can bring to the overall business, specialist financiers understand technology development paths and their application in business. They also have a deep knowledge of asset management and can expertly assess collateral values, all of which enables them to craft tailored financing packages that generalist financiers tend not to offer. Financing arrangements can be adapted to accommodate manufacturer’s individual requirements and cash flow needs and provide the flexibility to cover other costs such as installation, maintenance, service and training. Since regular finance payments can be spread over the financing period and aligned with the revenues generated by the asset, manufacturing companies can acquire and upgrade equipment in an affordable and cost-effective way without straining their finances. Technology investment, as a vital component in any forward-looking business growth strategy, will be

‘Technology investment, as a vital component in any forwardlooking business growth strategy, will be crucial to helping manufacturers boost operational performance and maintain long-term competitive advantage’ crucial to helping manufacturers boost operational performance and maintain long-term competitive advantage. The growing use of equipment finance in facilitating such investments attests to its vital role in a manufacturer’s financial toolkit. Even as liquidity returns to the market, asset finance is likely to continue to make gains in popularity. It provides a source of finance that is separate and distinct from traditional borrowing, allowing manufacturers to preserve those lines of credit for tactical business requirements which can contribute to their further growth. 11


Emerging Predicti Analytics For The In

Dan Somers of root cause analysis specialist Analytics explains how manufacturers can av predictive analytics to make it effective right h 12

October 2015

ive ndustry

s Warwick void the ‘hype’ of here, right now.

Writ ten by: DAN SOMERS 13

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. 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,

Has the time for manufacturing predi 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 just the big data vendors

‘The predictive analytics market is in fact growing at an unprecedented rate.’ 14

October 2015


ictive analytics come or is it just the big data vendors trying to persuade us? 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 floor then it is useless. 15

LEAN 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 16

October 2015

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,


If the analytics can’t be practically implemented on the shop floor then it is useless and 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. 17


Want To Be Top Of Your Game? ENGAGE WITH YOUR WORKFORCE Brady Wilson uncovers the cheap and effective OS that could transform your manufacturing operation Written by: Brady Wilson


PEOPLE & SKILLS THE MANUFACTURING INDUSTRY is notorious for experiencing peaks and troughs, and the current climate is fraught with obstacles. From a global skills shortage to uncertainty about the top manufacturing locations, not to mention the ever present need to update and innovate your technology, there is more need than ever to engage with your workforce to bring about stability and positive change. You may not realize it, but your organization is home to an incredibly powerful operating system already. Think outside the realm of technology. What has the potential to engage and energize your employees, bring teams closer together, and create a high-performing workforce? It’s conversation, says Brady Wilson Conversation is the common denominator behind “apps” like

customer service, feedback, coaching, strategy and innovation. Conversation—that is, quality, meaningful conversation between leaders and employees— powers up all the things that make a business successful. Not sure you agree that conversation is your organization’s most mighty OS? Consider what would happen without conversation. All those apps would crash— and your business would fail. Talking heads Let’s go a bit more “micro” and look at the human brain. Conversation is, essentially, our brain’s OS. This is because every single message transmitted from one neuron to another enables us to see, hear, move...and think. If all those 100 billion neurons were to stop talking to one another, our bodies and ability to process information

“Think outside the realm of technology. What has the potential to engage and energize your employees, bring teams closer together, and create a high-performing workforce? It’s conversation” 20 October 2015

Caption to the image would cease to function. Meanwhile, science shows us that our own brains are significantly strengthened and enhanced by social conversations “between brains.” This is our native wiring: and consequently, the perfect O/S that we need to connect, understand and harmonize with others. So, as neuronal conversations are the way the brain gets things done, employee conversations

are the way that organizations get things done. With this in mind, then, why do organizations not integrate conversation into their own employee engagement initiatives? Ignoring conversation = missed opportunities Using engagement surveys as an example, consider how organizations often deal with results. Rather than pause to consider the “why” 21


Brady Wilson is co-founder of Juice Inc., a corporate training company that services organisations from Toronto to Los Angeles. This article is based on principles from Brady’s latest book, Beyond Engagement: A BrainBased Approach That Blends the Engagement Managers Want with the Energy Employees Need. Follow Brady on Twitter (@BradyJuiceInc) or visit www.bradywilson.com 22 October 2015


behind results, leaders will rush to create strategies—one-sizefits-all, broad-brush strategies. But employees do not respond well to global solutions. They want to know that they have been listened to. Leaders who draft plans without taking time to consider context or “backstory” practically guarantee employee non-compliance to any engagement initiative. Organizations that ignore the importance of conversation are missing out on a range of opportunities to create a higher-performing workforce. Here’s why: science shows that when you have meaningful, face-toface conversations that demonstrate value, respect and care, this boosts the brain’s processing power— forming a feel-good energy cocktail of connection, calm, concentration, creativity and curiosity. Essentially, conversation can deepen the leaderemployee relationship, energize employees, and power those apps that make a business so successful. No time to talk? Don’t feel you have time to talk to your employees? Consider this: concerns that are unaddressed tend to fester

and simmer. And then...they turn into “crucial,” “fierce” or “difficult” conversations—consuming multiples of energy, time and mind-space from everyone in the organization. Leaders save themselves a lot of headaches when they move beyond engagement as we know it today, and honour how the brain works. And not only that: conversations don’t have to take up a lot of time. Short, simple “Energy Check” conversations are a proven and effective way to unlock insight and possibility in your employees’ minds. It can be as simple as asking employees what is energizing them at the moment, and what is depleting their energy. Done systematically, this technique can catch issues before they become calamities based. Easy to install Conversation already exists in your organization. It’s simply up to leaders to embrace it as the key operating system that drives the business— and shifting their mindset to include conversation in all engagement endeavours. This generates energy, fuelling a great customer experience as well as business results. 23

Providing Superior Aluminium Solutions Written by: Nye Longman Produced by: Mark Atkinson


A L U M I N I U M P R O D U C T S C O M PA N Y ( A L U P C O )

The Saudi aluminium processor is diversifying its revenues while expanding production to provide the most superior aluminium solutions on the market


October 2015


he Saudi Aluminium Products Company (commonly referred to as ALUPCO) is diversifying from being the top extruder and manufacturer to being able to offer its global roster of customers a fully comprehensive aluminium products offering. It is achieving this goal through a carefully considered approach that is backed up by strategic acquisitions, strategic management initiatives and focusing on operational efficiency. Expanding Operations ALUPCO’s current aluminium operations have a current annual output of 75,000 tonnes which is achieved through nine dedicated extrusion presses. Alongside its main extrusion capability are five powder-coating lines with a total capacity exceeding 75,000 tonnes, two anodizing lines with a combined annual capacity of 12,000 tonnes and two polishing lines which together make up an annual capacity of 1,000 tonnes. These facilities are backed up by two wood finishing and two protection taping lines, as well as a thermal break crimping line. This range of facilities enables ALUPCO to meet a range of customer needs; its planned expansion will enrich this offering. CEO Khaled Abdelmoneim explained the practicalities involved in the expansion: “Currently we are at 75,000 tonnes; first we will take this up to 85,000 by making modifications and through rolling out continuous improvements.

Dammam Office

“We will then take production up to 140,000 tonnes through strategic acquisitions which we are funding with roughly $300 million. We are currently in the process of acquiring two extruders in the region; one we will acquire 100 percent and the other 75 percent. We are also getting into aluminium and ACP composites.� The manufacturer has been so successful at fulfilling customer demand in Saudi Araba and worldwide since its inception in 1975 that it has been entrusted with supplying a range of internationally renowned projects in the Kingdom and beyond. In the UAE, these include the Emirates Towers in Dubai and the Etihad Towers in Abu Dhabi. Perhaps the most prestigious recognition of its consistent performance is its winning of

800 Number of staff employed by Aluminium Products Company (ALUPCO) w w w. a l u p c o . c o m


A L U M I N I U M P R O D U C T S C O M PA N Y ( A L U P C O ) a supply contract for the Kingdom Tower in Jeddah which, once completed, will stand as the world’s tallest building at one kilometre high.

Packing machine

Talent Management Khaled recognised that fostering a sense of purpose in each individual worker was just as important as making sure that his teams were well trained and appropriately rewarded for outstanding work. He explained: “We carry out a training needs analysis for every one of our employees and we use this to make sure that the person is ready to take the next step in their career.� Integrating the needs of the individual within

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Powder Coatings Architectural


October 2015


the operational structure also enables the company to accurately allocate relevant training. Khaled said: “We have an evaluation system carried out on an annual basis; continuous feedback from management to our support unit ensures that those people have got the right training and skills, and so we can evaluate the impact of the training later on. “We set out an employees’ training plan and ensure that they are supported through to the next assignment. The company benefits as well; this process helps us make sure that our employees have the right training for themselves and for the company. In the performance appraisal we discuss the results and how to move forward.” According to the Central Department of Statistics and Information, women make up only 13 percent of the workforce in Saudi Arabia; there is however a culture change afoot, and Khaled was keen to keep up with this trend. He said: “We have a quota from the government to hire Saudis and train them. We have also started to hire Saudi women and we provide specific training because it is difficult to find a Saudi female with work experience. “We now have at least one female for each function within the company; it is strategically valuable for us to have the right mix, it changes the culture and principles of the company. There is a change in perspective in Saudi Arabia which is enabling women to become candidates for hiring.”

Cast House (Remelt Shop)

Die Correction

Wood Finish w w w. a l u p c o . c o m


A L U M I N I U M P R O D U C T S C O M PA N Y ( A L U P C O )

Paint line


Billet Container


October 2015

International Standards In 1995 ALUPCO became the first aluminium extruder in the Middle East to receive ISO 9001 accreditation, confirming its ability to consistently meet the demands of its customers. Since then, adopting international standards has been the norm for the company, as it seeks to fulfil the demands of international clients. Since attaining this, the company has received QUALANOD certification for providing save and consistent anodised aluminium; QUALICOAT for quality coatings; and QUALIDECO for the high standard of its decorative finishes. Khaled said: “We wanted to be the best of the best; we maintain these international standards in order to be acceptable to everybody; we even do specific regional standards for some shipping operations.�


ALUPCO is also a member of the Gulf Aluminium Council, the Aluminium Extruders Council and the Anodisers Council, as well being SASO certified in conformity with the Saudi Government guidelines regarding the safety and sustainability of its exports.

Company Information INDUSTRY

Manufacturing HEADQUARTERS

Competitive Stance Khaled and his teams have identified where the clear challenges lie for the business and, thinking laterally, have been able to transform these potential setbacks into a competitive advantage, he said: “The challenge for us in exporting to 26 countries is always logistics because we transport by weight and volume, this is a burden to move products from Saudi to Europe to North Africa – it takes land as well as ocean and sometimes even air freight. With this in mind we designed for every profile to reduce the volume during shipping.” Despite the recent slump in the global commodities market ALUPCO is poised to make significant gains, both in terms of its productivity, but also through increasing its market share. Once again management has leveraged a potential problem to its advantage. Khaled said: “Going forward, we will be giving better solutions and changing the way we buy and sell, and order commodities, as well as communicating with our customers more dynamically.”





Aluminium Extrusion/ Aluminium Manufacturing

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More than 130 YEARS of specialty chemicals in the hand

Written by: Rebecca Castrejon, Editor Produced by: Taybele Piven, Director of Operations for WDM Group - LATAM Interviewee: Fernando Hernandez Espinosa, Cuntry Head of Clariant Mexico


October 2015

ds of the regional consumer



f Swiss origin, Clariant [IX: CLN] is a leading regional player and global competitor in the chemical industry. Founded in 1886 in the city of Basel, Switzerland; and restructured as Clariant in 1995 (derived from the subsidiary Sandoz). The company established its presence in Latin America after acquiring Hoechst in 1997, spreading its global reach, but

A look inside the specialized operation of Clariant

Mining and oil solutions


October 2015


incorporating the same experience of more than 130 years of chemistry from their predecessors. Clariant manages chemical solutions from seven business units: additives, catalysts, functional minerals, industrial and consumer specialties, masterbatches, oil services and mining, and finally pigments. These are also represented by four major clusters:

Key People

Fernando Hernandez Espinosa Cuntry Head of Clariant MÊxico Hernandez is a chemical engineer with 31 years of experience in the chemical industry. His first position in the company was as a trainee. Later on, he took a sales and technical position in pigments and plastics. In 1993 he was responsible for the entire product portfolio from the branch in Guadalajara. By 1998 he was leading Clariant’s operations in Central America and the Caribbean as President and CEO of that region. In 2001, he came back to Mexico to fill the position of Director of Pigments & Additives, strengthening domestic operations and serving the domestic market by raising exports to North America. In 2005 he took the top management post as Country Head of Clariant Mexico.

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1. Plastics and Coatings. Represented by pigments, masterbatches and additives.

Cutting edge technology in masterbatches

2. Care Chemicals. Multiple industrial and personal care applications, household applications and polymerization, among others, based on different chemistries. 3. Natural Resources. Mostly mining and oil derivatives, as well as functional minerals. 4. Catalysis and Energy. Focus on the efficiency of raw material for the energy industry and industrial applications.

Clariant Excellence

Colorant dispenser 36

October 2015

Under strategic management and cutting-edge solutions in mixtures, colors, and applications; Clariant expanded its services to more than 80 countries that are now home to 100 commercial establishments and production plants. Beyond its global presence, the group shares with its subsidiaries, all laboratories and physical results via spectrophotometers, international certifications and a highly specialized team creating solutions tailored to each client. The company has been characterized by evolving industries such as oil, mining, plastics, personal care and other sectors, specially a after driving innovation and transforming chemicals that further enhance or create new benefits to end products.


Clariant in Latin America Clariant reached Latin America in 1997, after the company’s joint venture with Hoechst (a chemist enterprise with more than 50 years of operations in the region). However, they have taken the overall Clariant experience to meet regional needs, offering a portfolio of high quality applications and innovative products available for immediate demand. In Latin America, Clariant has physical presence in eight countries: Mexico, Argentina, Brazil, Chile, Colombia, Guatemala, Peru and Venezuela. In Brazil, Clariant has a place of great importance in the context of research and development within the industrial area of Suzano (near São Paulo) and a production plant in Jacareí. They have also integrated a laboratory that adds value to the final application and serves as a training center.

Innovations in color

Clariant Pigments

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CLARIANT From the production stage, the company has plants in Guatemala to serve Central America and the Caribbean; while Venezuela, Colombia and Peru covered the Andean Pact; Chile caters to Bolivia; Argentina concentrates its exports to Uruguay and Paraguay; and Brazil has a steady productivity towards the rest of South America. It should be noted that Clariant is one of the few industries with presence in Venezuela.

“Our vision is to make Clariant in Latin Am customers and suppliers. We want to be within our global group and keep adding – Fernando Hernández Espinosa, Cuntry Head of Clariant México


October 2015


Additionally, they have commercial offices in El Salvador, Costa Rica, Dominican Republic and a warehouse in the free trade zone of Panama. “Every business in each country, depending on the needs of the market, serves clients directly, but in other cases we have a network of

merica the preferred partner of our e one of the most important companies g profitable and successful years�

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Specialists that integrate added value

distributors and agents that covered the rest of the region,� said the Country Head of Clariant in Mexico, Fernando Hernandez Espinosa. Current operations in Mexico

Catalysis & Energy


October 2015

Clariant has established a strong presence in Mexico, where apart from its administrative headquarters in Santa Clara (in Mexico City), they have integrated a strong industrial infrastructure with application labs, production and synthesis of organic pigments, masterbatches and a sulfation business area for ICS (supplier of specialty chemicals and applications). Clariant also provides energy, security, dining room, occupational medicine and the use of a warehouse to the following guest companies that operate within the site: MSD (involved in animal health) and Archroma Textiles and Emulsions.


In Puebla, the company has a production center and laboratories for the business unit of functional minerals and activated clay and bentonite (use during the purification and clarification of oils, civil engineering, detergents, etc.) In Coatzacoalcos, Clariant has its mining and oil unit and a multipurpose production center, were they produce ethoxylated amines and specialty products for its OMS unit. Emphasizing the importance of the country, Clariant Group recently approved an investment of more than 20 million Swiss francs for the expansion of the plant in Coatzacoalcos during the next 18 months. This will increase the performance of ethoxylation, and add propoxylation services. Administrative leadership “Clariant is a company with many years of chemical tradition and strong presence in Latin America, contributing to the development of its suppliers, customers and society,” said Fernando Hernandez, Cuntry Head of Clariant Mexico. Hernandez is a chemical engineer, with 31 years of leadership experience in the industry. He has served the company since 1984, when he joined the predecessor as a trainee. Today, he leads all operations in Mexico and runs the business of pigments and additives, and mining and oil services, in addition to his post as country head.

“We are very close to our clients, helping them solve their problems with specific solutions and not just products” – Fernando Hernández Espinosa, Cuntry Head of Clariant México

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CLARIANT Business milestones 1. The consolidation of sites in Mexico: Clariant Increased national competitiveness by moving from five locations to three operating sites and without losing a single pound of production. The operation was carried out with the help the corporation and Clariant Brazil. This has helped the subsidiary by unifying all businesses in the country, simplifying the value chain, maximizing benefits and reducing travel times. 2. Sustainable growth in terms of value. Productive, monetary and national and regional audience expansion; hand in hand with energy efficiency, quality policies and improved work environment. 3. Teamwork culture. Collaboration and improvement in all business units. 4. Inclusion of Mexican talent in management posts. Incorporation of Mexican and Latin American personnel in administrative positions, as well as their international representation.

Increasing Latin America’s production capacity

Color innovation, Clariant


October 2015

Clariant’s corporate vision and know-how of excellence, includes the implementation of best practices in all business units, from the supply chain to the safe handling of chemicals. With quality assurance guidelines that prevent and predict maintenance, field analysis, process control and a security evaluation, along with


occupational safety, health and the environment. Only in 2014, Clariant increased by 30 percent its production capacity of masterbatches in Santa Clara, satisfying the growing demand for color concentrates and additives, while developing customized solutions. In automation technology, the company purchase new machinery and modernized its infrastructure. 2014 also marked a significant advance in Clariant Chile mining unit, after investing more than one million dollars to raise the production of chemicals (for flotation of sulfidic ores and additives for fertilizers) by 6,500 tons. “We export to many countries in the world but with a greater share in North America. We also serve Central America and the Caribbean, South America, and many of our products go to Europe, Africa and Asia. In that sense, our geographical position, presence and distinguished service of the past 50 years, are our main differentiators against the rest of our competitors,” said Hernández. Industrial quality Clariant’s quality policy is supplemented by national and international certifications, such as ISO 9000 (quality management standard), ISO 18000 (international standards relating to occupational health and safety management), and Good Manufacturing Practice regulations for the pharmaceutical industry.


1. To provide quality products and services that satisfy our customers. 2. Workplace safety. 3. Environmental protection.

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Chemical solutions for the consumer

Hot-melt adhesives

Clariant’s Quality Policy is defined by the following principles: 1. To provide quality products and services that satisfy our customers. 2. Workplace safety. 3. Environmental protection. “We work together with end-users, not necessarily our customers, but the customers of our customers. They are always working with us, seeking added-value and innovative solutions,” said Hernandez. Additionally, the subsidiary follows Clariant’s


October 2015


global concept of Excellence, which consists of: - Operational Excellence. Focused on improving all production and administrative processes following Lean Six Sigma principles. - Innovation Excellence. Innovation and development platform for the entire value chain. - Commercial Excellence. Marketing, sales and supply chain efficiency. - People Excellence. Constant training to encourage employees to take ownership of their jobs and to strive for personal excellence, which translates into better services to the direct market and the final product.

Clariant, household products

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Solutions ColorForward

“We are very close to our clients, helping them solve their problems with specific solutions and not just products,” said the Country Head of Clariant Mexico. Advances with social benefits Clariant applications

Clariant’s social commitment is constantly showing throughout its many offices in Latin America. A clear example was the donation of 600 mosquito nets to control malaria. The company granted these curtains in collaboration with Royal Sentry Disease Control Technologies to different charities in Nicaragua. 46

October 2015


Clariant, dyes for medical devices

Globally, Clariant works to improve workplace safety as part of a series of activities in the Responsible Care Program and in collaboration with the National Chemistry Association (ANIQ AC). They also hold the precept of avoiding accidents (Evitando Accidentes) where employees follow warning indicators. Clariant Mexico collaborates with other initiatives, as in the case of MASH (regulatory frameworks applicable to the environment and safety). They also cooperate with the Red Cross, make donations and sponsor community programs, etc.

Sustainable road pigments

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WHAT IS CLARIANT? We transform projects into reality, in the most varied sectors. We participate in the construction of the tallest buildings. We help remove oil below sea level, among many other industrial applications.


October 2015

Green vanguard Clariant’s chemical specialists are changing the game with organic additives, partially replacing petroleum derivatives in industrial formulas, and through the development of new and better products that use energy and resources efficiently. Additionally, the environmental certification ISO 14001 is part of the company’s green awareness and sustainable management; they also follow ESHA global standards (Environment, Safety, Health, and Assurance). Brazil is a great example of sustainability; Clariant Brazil operates a waste incinerator in Suzano, and a Solid Waste Landfill in Rio de Janeiro. “For us at Clariant, the topic of sustainability and innovation is not a trend, these are strategic pillars we have structured and defined in our master plan, to meet requirements that the industry, our customers and the same planet need,” said Hernandez, after giving the example of a silk whose raw material comes from natural sources. This 2015, the corporation started a sustainability dialogue held at Frankfurt Innovation Center in Germany, in relation to the company’s sustainable developments and green solutions under the brand Ecotain. “Our obligation in the future is to continue launching more products with this characterization,” he added.


Company Information

Regional goals As part of a corporation with worldwide presence, Clariant in Latin America will continue to accompany all Clariant Excellence initiatives. Additionally, they have two major investments in Mexico:


Clariant of Mexico and Latin America INDUSTRY

- The expansion of the pigment preparations plant in Santa Clara, for domestic and export markets, with an investment of about eight million Swiss francs. This project is expected to be completed in the first half of 2016. - An investment of eight million Swiss francs to expand the production line of bentonites from its factory in Puebla, Mexico. This completion is expected in early 2016. “Our vision is to make Clariant in Latin America the preferred partner of our customers and suppliers. We want to be one of the most important companies within our global group and keep adding profitable and successful years,� concluded Hernandez.

Producer and distributor of complete chemical specialties and solutions HEADQUARTERS

Ecatepec de Morelos, Estado de Mexico, Mexico FOUNDED

1886 (global), 1995 (restructuration as Clariant) EMPLOYEES

567 (Mexico) REVENUE

US $6,116 billions (global-2014) WEBSITE


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Either as an original equipment manufacturer or supplier of and dominate its field 50

October 2015

Written by: Mateo Rafael Tablado, Associate Editor Produced by: Ana Cárdenas, Director of Projects for WDM Group-LATAM Interviewee: Gonzalo Esparza Pedroza, President of Tachi-S Mexico


f components, Mexico’s Tachi-S continues to grow

TA C H I - S M E X I C O


achi-S Mexico, formerly Industria del Asiento Superior, is a subsidiary of the Japanese company which global presence includes Latin America. The automotive seat manufacturer also produces accessories, armrests and head restraints. Headquarters in Mexico

Mexico’s Tachi-S was founded as a joint venture with Nissan Mexicana in 1991; ten years later Tachi-S Corporate bought 100 percent of the company. In addition to its main plant in Aguascalientes, the manufacturer continuously reinvested to build auxiliary coachbuilders for specific processes in nearby towns, located in the “automotive cluster” of Mexico. Tachi-S has established itself as a Tier 1 supplier to the automotive industry in Mexico.

Inside the production plant of Tachi-S in Zacatecas, Mexico 52

October 2015


The company’s growth in recent years has been foster by the acceleration of export opportunities of auto parts in the Tier 2 level.

Key People

“The automotive industry in Mexico is growing because we are exporting”, simplified Gonzalo Esparza, President of Tachi-S Mexico. Esparza, the administrative leader of Tachi-S Mexico, has more than 20 years of experience in the industry; he started his journey in the company from the purchasing area. Prior to his foray into the auto industry, he worked in the textile sector, a characteristic business in the region. “I had various family operated enterprises dedicated to textile manufacturing, processes, materials, textile control, among others,” shared the President of Tachi-S Mexico.

Gonzalo Esparza President Esparza has been with Tachi-S Mexico for 23 years, he has been with the company since July of 1992, when he took a post in the purchasing department. Prior to his foray into the auto industry, he was developing textiles, specifically clothing, from a family enterprise. Aside from his degree in Biology, Gonzalo Esparza continued his preparation through various specialized and graduate courses in the areas of business administration and finance. Among his greatest attributes within the company, is the successful integration of Tachi-S supply chain, thus reducing costs for imports.

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TA C H I - S M E X I C O



Employees: Xxxxx Established: Xxxx Industry: Xxxxxxxxxxxx xxxx xxxx xxx xxxxx xxxxx. Services: Xxxxxxxxxxxx xxxx xxxx xxx xxxxx xxxxx. Ongoing Projects: Xxxxxxxxxxxx xxxx xxxx xxx xxxxx xxxxx Management: Xxxxxxxxxxxx xxxx xxxx xxx xxxxx xxxxx Website: address goes here as the last entry 56

October 2015


Steady growth in Tier 1 and Tier 2 The traditional strength of Tachi-S, has been as an indispensable provider of Nissan’s supply chain, the biggest automotive producer in Mexico. The company also delivers auto parts to Honda and Mitsubishi (international supply).

Car: Tsuru GS production

But in recent years, Tachi-S Mexico found the possibility of increasing its exports of parts by elevating the company’s position as a Tier 2 supplier, in an operation that takes advantage of their know-how resources, which accounts for their traditional activities in Tier 1, where all commercialization is national.

“We are a country that provides high quality manufacturing with skilled labor, and with experienced executives in the industry” – Gonzalo Esparza Pedroza, President of Tachi-S Mexico

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Hiroshi Taguchi, President of Tachi-S Global, in the grand opening of the new plant in Agua

“There is a much higher opportunity to export at a Tier 2 level, which enabled us a bigger and faster growth than other companies in the industry,� said Esparza. Quality control 58

October 2015


Added value in each component Tachi-S Mexico has the advantage of being the producer of most of its materials and of performing many processes “at home�, even if

Sewing Inspection

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this means manufacturing in diverse factories, this factor allowed their diversification as Tier 2 suppliers. Perhaps the only operation that is beyond their range of activities is stamping. This could suggest that a window of growth could be diversifying into the manufacture of seats for markets other than automotive vehicles, but its growth in the same industry has been such that, at least temporarily, they have postponed the design of other types of seats. “We’ve grown so fast in the last three years, that we have chosen to consolidate our opportunities in the automotive sector,” said Esparza.

Seats done by Tachi-S in México


Lectra is the world leader in integrated technology solutions that automate, streamline and accelerate product design, development and manufacturing processes for industries using soft materials. Lectra develops the most advanced specialized software (CAD) and cutting systems (CAM) and provides associated consulting services. Its expertise in design and manufacturing enables suppliers of car seat covers, automotive interiors and airbags to achieve their long-term operational excellence and cost reduction objectives. Other important markets for Lectra include fashion (apparel, accessories and footwear), furniture, aeronautical and marine industries, wind power and personal protective equipment. Website: www.lectra.com

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TA C H I - S M E X I C O A supply chain with higher integration A key element in Tachi-S operation has been cost reduction, a factor that has transformed their supply chain with the integration of all domestic suppliers, whether they come from foreign capital, and what has been the primary objective of Gonzalo Esparza since joining the company. Tone-color inspection

Some vendors are aligned to the overall requirements of Tachi-S since the beginning of their partnership, which has increase their growth as suppliers due to this link. Companies such as Die Technologies, PSW (Summa


Polyurethanes Woodbridge) and Wire Forms Marisa, are suppliers that achieved and maintained Tachi-S trust. “There are key businesses that have been with us for many years, they began as small workshops but now they are well-established companies,” he explained. Strategic investment

Honda Element header

Derived from its commercial growth during the past two years, Tachi-S has experienced internal growth, investing some of this profit in the inauguration of “satellite” production plants. These factories are dedicated to specific tasks, and to the streamline of the overall operation. Among these facilities there is a new plant designed for the final assembly of seats and located in the industrial complex DSP, Douki Seisan Park of Aguascalientes since April 2014, a close distance from Nissan Mexicana. Mexico’s Tachi’s also opened a plant in Calvillo, Aguascalientes, and a second one in the nearby town of Ojocaliente, Zacatecas. These facilities meet specific production requirements, for example, the DSP will immediately fill orders for Nissan so that both plants in Calvillo and Ojocaliente, concentrate their efforts in the production of garments and covers for seats.

Nissan Sentra seats

Seats for Nissan GT-R done by Tachi-S

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Circuito Aguascalientes Sur #115-B Parque Industrial del Valle de Aguascalientes. San Francisco de los Romos, Aguascalientes. MĂŠxico Tel.+52 (449) 158.1777 direccion@grupoA3.com.mx



In the next few years, they also contemplate the installation of a new plant for trim covers and a factory for polyurethane foam. “Most likely, we will expand our investment in the self-supply of new projects,” explained Esparza.

During the opening ceremony of Industria del Asiento Superior in

Work environment

Aguascalientes, Mexico. April, 1991.

The care and consideration offered by Tachi-S Mexico to their workforce, is directly reflected into the final product. Every year the company reduces its turnover rate. Considering that there are no significant differences in the type of benefits and bonuses that Tachi-S offers, but other attributes such as respect in all levels of the organization and the eradication of harassment of any kind. In fact, in many cases when an employee chooses another job offer, it is very likely for he or she to return to seek employment in their former post in Tachi-S. The company has a career development process, which promotes staff according to their attributes, this way they are shaping successors to every position. “We have a solid training plan, people stay with us because they know they can make a career in the company,” said the president of the subsidiary. w w w. t a c h i - s . m x / i n s a . h t m


TA C H I - S M E X I C O Sustainability

Main headquarters

Some of their efforts to save energy on the premises of Tachi-S Mexico include modified lighting systems to avoid wasting resources and awareness campaigns about energy efficiency.

in Japan

Additionally, Tachi-S does not involve high risks pollutants in its operation to reduce toxic emissions. “Hopefully in the next five years, the use of our electricity comes from clean energy sources,� said Esparza.


October 2015


Company Information

The next five years Projections of Tachi-S Mexico imposed achievable objectives according to the capacity the company has shown: to diversify its portfolio of customers, they will keep growing in the market of Tier 2 components, expecting a growth of at least 30 percent by 2020. “Out most important objective is the diversification of customers and reaching markets where Japanese auto companies usually don’t have presence,” concluded the president.

“The working principles we have of a Japanese corporate, combined with the ability of our local employees, is a result of great things”


Tachi-S Mexico (Industria del Asiento Superior) INDUSTRY

Automotive: manufacture of seats, armrest, headers,etc. HEADQUARTERS

San Francisco de los Romo, Aguascalientes, Mexico FOUNDED



US $500 million (2013) WEBSITE


– Gonzalo Esparza Pedroza, President of Tachi-S Mexico

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COLOMBIA’S stronghold for bus and coach manufacturing

Superpolo is beyond reliability in supplying vehicles for public transportation systems and other markets.

Written by: Rebecca Castrejon, Editora Produced by: Ana Cardenas, Director of Projects at WDM Group-LATAM Interviewee: James Posada, General Manager for Marcopolo – Superpolo


October 2015

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arcopolo - Superpolo was conceived in 2000 as a joint venture between Brazil’s Marcopolo -founded in 1949 as Nicola & Cia Ltd by four partnering entrepreneurs and Colombia’s Carrocerias Superior, which first opened in Cali during 1956, and later expanded by owning locations in Medellin and Bogota, the country’s capital.

Main offices in Colombia

In business since 2001 in Colombia


October 2015

International Outreach and Opening in Colombia By the year 2000, Superior bolstered its partnership with Marcopolo, joining forces in one of Colombia’s most ambitious and important projects to date: becoming purveyors to the Transmilenio massive public transportation system of its first vehicles. After the first bus fleet deployment, the Superpolo joint venture between Marcopolo and Superior took place, settling by late 2001. Marcopolo’s sophisticated design and technical skills remained as trademark traits for the new partnership, which relies upon Superior’s knowhow in the domestic market. Currently, Marcopolo-Superpolo is part of the Marcopolo group, a bus and coach body manufacturer with 17 production plants worldwide and exporting to more than 60 countries. The company’s market share in Colombia has increased to 40 percent, by diversifying into four main vehicle production units:


1. Intermunicipal transportation buses 2. Massive transportation vehicles 3. Urban vehicles 4. School buses and special use vehicles Standout models from Marcopolo - Superpolo include BRS (rapid transit buses); and the vehicles with higher demand are Paradiso 1800, Paradiso 1600, Paradiso 1200 and the Audace and Ideale units. Five sales and after-sale service centers are strategically located nationwide. The company’s main -and largest- production plant is located in Cota. What’s Behind a Comfortable Travel by Land: Marcopolo - Superpolo Marcopolo - Superpolo’s more than 30-year leadership in Colombia’s bus and coach manufacturing industry stands out for sustaining the brand’s corporate philosophy, encompassing

Key People

James Posada Rosero General Manager for Marcopolo – Superpolo James Posada graduated in Industrial Engineering from Los Libertadores University in 2003. In 2008, he earned an MBA from the Externado University of Colombia. His education continued in 2012 during a stay in Brazil, where he enrolled in the executive development program at CENEX; and in 2014 Posada attended an economyfinancial management course at Dom Cabral Foundtion. His managerial experience at Marcopolo - Superpolo began in April 2008 as production manager. Afterwards, he became production manager for the Brazil plant (August 2012 to July 2014). He was appointed General Manager in August 2014.

More than a sales team, they are after-sales assistance

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Inside and outside quality manufacturing

Comfort from the operator seat


October 2015

cutting-edge design into local land transportation, and guaranteeing the travelers’ safety and comfort. Also, the corporation’s profitability has performed beyond stockholders’ expectations for more than 60 years. Nevertheless, the high management at Superpolo S.A.S. acknowledges every key action taken enabling the company to achieve this success. Environmental-friendly policies, proper training and safety standards for its human resource, and community outreach programs are constant endeavors for Superpolo to ensure its staff’s wellbeing as well as its concern for Colombia’s population. After-sale service has also become one of Marcopolo - Superpolo’s main attributes to maintain the company atop the competition, by


Special vehicles for student transportation

providing clients of necessary training in vehicle use and assistance for regular unit service checkups and supplying replacement parts. Management and Strategies Comprising the Value Chain After obtaining feedback about product performance in the domestic and regional markets, James Posada, current General Manager for Marcopolo - Superpolo in Colombia, announced there would be some changes in upcoming production runs: “We will continue strengthening the plant’s technical areas, getting them ready for the deployment of latestgeneration technology; we are also updating products that will soon be discontinued with totally new models, also expanding our portfolio.”

“We will continue strengthening the technical areas to become ready for the deployment of latest-generation technology; we are updating products that will be discontinued with new models, thus expanding our portfolio” – James Posada, General Manager for Marcopolo – Superpolo

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In charge of providing comfort for passengers


Posada has been involved with Marcopolo - Superpolo for more than 20 years. He has managed different departments in the company, and in December 2014 he was appointed as the general manager. In October 2013, Superpolo deployed the first hybrid buses for Bogota’s public transportation system, a batch of 22 units equipped with a Volvo B215 RH chassis, operated by GMovil. This combination of an electric and diesel fueled motors has lessened both noise and carbon dioxide emissions. “We are preparing to increase our production of hybrid vehicles, we have already built prototypes to be ready when demand for these increases,” Posada added. There are already some hybrid vehicles in Colombia’s roads and streets, but it is expected that government transportation and health agencies demand for an increase in eco-friendly vehicles during the short term. To meet this demand, Superpolo is already working on strengthening its supply chain via other Marcopolo facilities in the continent, precisely with the Mexico, Argentina and Brazil plants, thus sharing the corporation’s global suppliers. “We are part-taking in regional tech developments from macro-suppliers such as 3M, Sika, Eceme and others, easing their new technology deployments into other countries,” Posada stressed.

Ideale 660, for urban transportation

The Gran Viale BRT is a high capacity model

Microsenior bus

Intermunicipal vehicle

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Paradiso G7 unit

Gran Viale BRT


October 2015

Skilled Staff and Cutting-Edge Technology in Manufacturing The $200K investment in a new service center, located in Bogota and open since May 2013, furnished the facility with high-endurance pneumatic system network, infrared lamps -for drying-, latest-generation spray guns, etc. This expansion also tripled service stations, after its personnel received proper training to operate the new avant-garde equipment. Marcopolo’s workforce is trained to perform according to the best global manufacturing practices within the trade; employees acknowledge these efforts are essential to their continual professional development.

“We are training our technicians in the Marcopolo Brazil headquarters, with guidance from our suppliers. Our idea is to keep sending our engineering team abroad to be taught firsthand about our supplier’s latest developments, easing technology deployments at our facility and into our production process,” said Posada. Superpolo’s improvements in their Management Integration System are focused on their personnel, and is certified by ICONTEC (Colombian Institute of Technical Standards and Certification) under ISO 9001:2008 standards. The company’s latest developments in the technology field include robotics in different processes of its production line, such as

“We will remain among Colombia’s leading companies in our sector. We want to thank our clients, personnel and suppliers for their trust during many years” – James Posada, General Manager for Marcopolo – Superpolo

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automation for CNC plasma cutters, improving the handling of materials’ used for the vehicle’s structure, reducing wasted material, and optimizing bodies’ finishes and reducing this process’ time. Also, Superpolo is working in the development of new software able to increase flexibility in assembly line standards. Marcopolo - Superpolo

Environmental Management and Social Outreach Superpolo’s efforts in contributing to a better environment include constantly updating their policies in proper management of natural resources, waste and emission control. The company’s social responsibility initiatives come from above, as management bestows every possible benefit to employees and their

is the first Colombian bus body manufacturer certified under NTC 4901-1 and 4901-3 standards for articulated and high-floored units

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Creativity, innovation and technology for your project. Tabone operates through various processes in the development of customized projects ensuring high quality technical solutions.


families. Along with other Colombian companies, Superpolo is taking part in the construction of a weir for common use. Also, in late 2014, Superpolo opened a learning annex for aspiring technicians of any age and gender, mostly for individuals aspiring to work in the company but lacking the proper qualifications of skilled and certified employees. “We have been able to hire an important number of individuals who previously couldn’t find themselves in proper conditions to become part of the workforce. Our first group was comprised mostly of women 45 or older, and we are currently into our third generation of trainees,” the general manager said.

Company Information NAME

Marcopolo – Superpolo INDUSTRY

Bus and coach body manufacturing HEADQUARTERS

Cota, Cundinamarca, Colombia FOUNDED

2001 in Colombia

Projections in the Domestic Market Marcopolo - Superpolo’s aggressive strategies bring a forecast of 5 percent growth for 2016, and a sustained pace of yearly 10 percent growth starting on 2017, after the Phase I and Phase II investments from the Transmilenio public transportation projects, which will increase Superpolo’s plants capacity. “During the next five years our production facilities and assembly lines will keep improving, new service centers will open in other Colombian cities such as Bogota, Medellin, Cali, Bucaramanga and Barranquilla,” remarked Posada, about increasing after-sale service locations, technical assistance, warranties and replacement part availability.




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Profile for Manufacturing Global

Manufacturing Global - October 2015  

Manufacturing Global - October 2015  

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