Manufacturing Global - March 2015

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Modern Maserati THE EVOLUTION OF AN AUTOMOTIVE ICON

TOP 10 Global CEOs TECH TRENDS 2015 Shaping The Global Manufacturing Sector

businessfriend A Social Tool Bringing Real Benefits To The Industry

EDITOR’S COMMENT

A reinvention of an icon I N T H E M A R C H I S S U E S of Manufacturing

Global we talk to Maserati about the incredible launch of its new, more affordable model, the Ghibli – a vehicle aimed to reinvent the brand, while still holding tight to its iconic heritage. We uncover how Maserati elevated its brand into the 21st century without turning its back on its world-class history.

Also in this issue we take a look at the top manufacturing trends of 2015 and how to adapt your production line for maximum output; we go behind the scenes at Intel and take a look at their global manufacturing processes and profile the industry’s top 10 CEOs.

Enjoy the issue!

Abigal Phillips Associate Editor abigal.phillips@wdmgroup.com 3

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CONTENTS

Features

TECHNOLOGY

LEADERSHOP

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Tech Trends 2015 Modern Maserati

SOCIAL MEDIA

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Introducing businessfriend, a social tool that brings real benefits to the manufacturing sector

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TOP 10 Global CEOs of manufacturing

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CONTENTS

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50

Portland Paints Nigeria

Fertin Pharma

Company Profiles EUROPE 34 Fertin Pharma

AFRICA 50 Portland Paints Nigeria

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AMERICA LATINA GW Plastics

60 Integrated MicroElectronics Mexico 70 Janesville Acoustics Mexico

USA 76 GW Plastics

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88 Amaray Plastics 98 American Apparel

Integrated MicroElectronics Mexico Australian Bluegum Plantations

88 132

Amaray Plastics

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106 Association: (WHMA) Wiring Harness Manufacturers Association

AUSTRALIA 112 Australian Bluegum Plantations

BRAZIL 122 MVC Soluções em Plásticos 132 Baldan

Baldan

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LEADERSHIP

Modern Mas

Has Maserati managed to maintain its iconic herit to a wider audience with the Ghibli? Manufacturing

aserati

tage while appealing g Global finds out.

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LEADERSHIP THE MASERATI IS somewhat of an automotive icon. Founded in 1914 in Italy, the brand is steeped in history both on and off the racetrack. From the GranTurismo to the Quattroporte, the marque is known for its luxurious design, power and speed, and until now, its eye-watering price tag.

But that has all changed with the introduction of the Maserati Ghibli – a modern, more affordable offering from the Italian manufacturer.

Maserati has announced ambitious plans to sell 50,000 cars a year – and the Ghibli will do much to kick its sales figures up towards that number. It’s more affordable price tag, coupled with its contemporary design with appeal to a much larger audience.

As the Italian maker celebrates its centenary year, we see if the Maserati Ghibli Accessories Range: a tailored experience

1 0 M arch 2015

Ghibli can still shine brightly despite its ‘down-market’ label.

On the inside, the Ghibli doesn’t feel like a cheap alternative, in fact, far from it. For years, high-end Italian cars have been better than any other at making everything you touch and sit on feel special – and the Ghibli achieves just that.

The steering wheel is little different, the leather is soft and supple, and the Trident badge in its centre gives a chest-puffing sense of superiority that no Jaguar or Mercedes can come close to rivaling. Not only does it all look expensive, but it smells great too, a true telltale of expensive leather hide – far higher quality than anything you’d find in German car.

Italian tech trials Unlike so many Italian cars, the positives don’t stop when you get to the user experience side of things: the Ghibli runs a Maserati version of Chrysler’s u-Connect, which is the added convenience we have all come to expect.

The heated seat functions flash up for several seconds on start-up, too – which is handy because it means you don’t have to wait for the screen

M O D E R N M A S E R AT I

Ghibli runs a Maserati version of Chrysler’s u-Connect

‘As the Italian manufacturer celebrates its centenary year, we see if the Ghibli can still shine bright despite its ‘downmarket’ label’ 11

LEADERSHIP

‘The 0-60 in five seconds dead sees the Ghibli slip into serious speedy territory’

1 2 M arch 2015

M O D E R N M A S E R AT I

to boot and then trawl through menus to warm that cold leather on frosty winter mornings. Most importantly, all the buttons are big and easy to hit, and the Ghibli retains hard controls for all the heat and ventilation functions.

Built for speed The 0-60 in five seconds dead sees the Ghibli slip into serious speedy territory. It always feels game for its 410-horsepower, with the V6T engine showing no signs of turbo lag. On 20-inch wheels the ride, as you might expect, is a little firm. The Ghibli doesn’t cosset and smooth out every bump but that’s to be expected given its sports billing. But the ride never falls to pieces thanks to skyhook adaptive dampers, which can firm up the ride in sport mode and keep potholes restrained to loud thuds rather than crashes and bangs as the wheels skip into them.

Exterior design We’ve harped on about interior elegance and drive experience, saving the best until last: the Ghibli’s exterior design. It’s easy to get blinded by a lust-worthy badge on high-end cars and forgive basic

design failings. However, the Ghibli is unquestionably one of the best looking saloons on the market today.

Its shorter wheelbase than its Quattroporte big brother gives it better proportions. That long, low nose with concave grille opening and interconnected lamps gives exactly the right level of menacing aggression, without resorting to the austere vulgarity of some German cars. You will never mistake the Ghibli in your rear view mirror for anything other than a Maserati.

It all adds up to one very special feeling car, one that – whether you’re taking a glance back 13

LEADERSHIP

over your shoulder as you park it up, approaching it with key fob in hand, or sinking into the embracing hug of those leather cover chairs – just feels special.

Modern Maserati The Ghibli broadens Maserati’s market, pitting itself against some very capable competition and opening the Italian brand up to new buyers. The high-end Mercedes CLS, Audi A7 and BMW 6-Series Gran Coupe cars of 1 4 M arch 2015

‘The Ghibli broadens Maserati’s market, pitting itself against some very capable competition”

this world are all great, at this price point each offering refined 6-cylinder engines, lashings of leather and the pick of each firms’ latest technologies.

The Ghibli lacks some of that very latest, cleverly integrated technology – but that doesn’t mean it’s old fashioned. Most necessities are present and correct in terms of connectivity and driver assistance. The Ghibli is quite simply sensational - the way it looks, feels to the touch and drives, has a

theatre and a sense of specialness that puts it in a league of its own.

Objectively, some cars you could buy at this level tick more boxes.

But the Ghibli is good enough in most areas, and more special in many others, that it’d be easy to make a case for picking it out if you want to be different and treat yourself to something special.

As Maserati enters its second century, its future looks brighter than ever.

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TECHNOLOGY

TECH TRENDS 2015 Technology trends shaping the global manufacturing sector in 2015 and beyond Writ ten by: DAN I E L DOM BAC K, Direc tor E M E A I n d u s t r y S o l u t i o n s , Z e b r a Te c h n o l o g i e s

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TECHNOLOGY THE GLOBAL MANUFACTURING industry has transformed over the last decade with technology driving innovations across the supply chain.

Foremost amongst these is the rise of smart, connected products, known as the Internet of Things (IoT).

As a key driver of innovation, the Internet of Things is transforming siloed parts and products into complex systems which combine hardware, storage, sensors and software in a myriad of ways - expanding

Industry 4.0 will change the manufacturing landscape

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March 2015

opportunities for new functionality and greater reliability which transcend traditional product boundaries. In this environment of change, let’s look at the key trends that the manufacturing industry will be seeing in 2015.

Industry 4.0 Industry 4.0 a high-tech strategy that promotes the computerisation of the industry, will become more dominant, with the industry moving towards increased digitisation. Enabled through the Internet of Things, Industry 4.0 uses smart devices to capture information and feed it back, giving unparalleled visibility over every asset used in manufacturing.

This will allow optimised production and leaner, more agile manufacturing across the entire supply chain.

Industry 4.0 is likely to be implemented in a unique way for each business, with the information gathered used to optimise processes or assets, which will in turn reduce costs. Industry 4.0 is slowly emerging from the concept stage, with manufacturers currently investing in small projects enabled by the Internet of Things. We’ll see this becoming much larger this year

TECH TRENDS 2015

‘IoT tech is a key driver in the sector’

as manufacturers understand the benefits that these technologies bring, giving them greater visibility and safeguarding over unnecessary costs.

Mobility Mobility is critical to the manufacturing industry. Traditionally, mobility has allowed manufacturers to view, monitor and control assets while on the move, and so has long been running connected devices

and equipment. These assets however are operating within silos, executing specific jobs and sending data to on-site locations.

Mobile Solutions are implemented to increase workforce productivity, providing information on patterns of behaviour and device management.

This helps companies support workers while making sure they as productive as possible, as long as possible.

Manufacturers are also looking into 19

TECHNOLOGY enhanced service models for mobile devices. Mobile Device Management and Mobile Lifecycle Management provide new paths to move from CAPEX to OPEX models. Through managing IoT connected devices across all assets, manufacturers have greater visibility of processes within a secure cloud environment.

Mobility is going to become a boardroom concern

Automation is going to be key to the future of manufacturing

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March 2015

Automation The Internet of Things is revolutionising automation improving responsiveness and accuracy. IoT is collecting data which is turned into business valuable information in order to improve production processes, or for example to monitor stock inventories to provide real time visibility of inventory which will lead to liner production processes.

And other example in the manufacturing shop floor is to monitor the status and conditions of machine so that predictive maintenance could be implemented which in the end will lead to less unplanned downtime The face of the manufacturing is changing significantly, and it’s impossible to ignore the key role that IoT enabled technology plays in driving this. In reducing the distinction between the physical and the digital,

F E A T U R E A R T I C L E S H OTRETCEHN T ER D EHNEDASD 2L 0I N 1E 5

IoT technology will connect devices and their operators leading to greater efficiency and accuracy

‘The Internet of Things is revolutionizing automation, improving responsiveness and accuracy’

manufacturers are now achieving unparalleled visibility of their assets, and other information critical to the optimal running of the business. For manufacturers to stay ahead of the competition it’s critical to be lean and agile. Taking advantage of smart, connected products across the whole supply chain is key to achieving this.

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SOCIAL MEDIA

Introducing businessfriend, a social tool that finally brings real benefits to the manufacturing sector Wr i t t e n by: AB I GA I L PH I LI PS

THE MANUFACTURING SECTOR today is highly connected, tech driven and focused on innovation. Gone are the days when manufacturing factories are all grease, intensive labour and cumbersome machinery; in fact modern manufacturing plants are equipped with the latest technology, software and human-like robots, and are operated with sustainability in 22

March 2015

mind. More and more brut strength is being swapped for sophisticated data and this change brings with it a greater need for connectivity.

Until now, manufacturers have relied on expensive bespoke tools to share data, information and documentation, but this is about to change. At CES 2015 a new, innovative social network called businessfriend

(businessfriend.com) was launched to the world – its USP being that it can offer what no other social network can in terms of total collaboration. businessfriend acts as a business utility with a social identity. Instead of using multiple different applications to accomplish one goal, businessfriend allows you to seamlessly execute all business affairs in one powerful,

mobile-first platform with a simple and attractive interface, allowing you to connect and share socially and professionally in a whole new way. For example, businessfriend would allow manufacturing decision makers to share documentation, discuss strategy, make calls and record vital data in one place. “On any given day, the typical 23

SOCIAL MEDIA young professional can have as many as five platforms open to get them through their day,” said Glen White, Founder and CEO of businessfriend.

“We offer one complete forum that enables constant connectivity for optimal business communications.

One mobile app, one desktop, any

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March 2015

device - no more juggling apps.”

Key features of businessfriend include video chat, IM, and free VoIP calls, up to two gigs of free Cloud storage, use of its Digidex contact management system, document downloading and sharing, social feed, connectivity

BUSINESSFRIEND

to colleagues and peers without sharing personal contact information, easy sign-up and much more.

“We like to say businessfriend is the channel for professionals that are suffering from S.C.S. (scattered communications syndrome),” said Freddie Pierce, VP of Product and co-creator of the app. “We’re providing one place to consolidate all of your current communications, mediums and channels into one easy to use application. You’ll never have to say ‘I didn’t get that email’ or ‘where did that document go’ again.”

Manufacturing executives, decision makers and managers often have to juggle many suppliers, vendors and internal documentation – businessfriend can help by providing a platform to stay connected with the people and professionals that matter most to business operations.

Redefining how you interact with your professional and social network, businessfriend makes collaborating with colleagues and peers a whole lot simpler. Instead of using several different apps to accomplish one goal, businessfriend allows you to seamlessly execute all business affairs in one, user-friendly platform.

‘We offer one complete forum that enables constant connectivity for optimal business communications.

One mobile app, one desktop, any device – no more juggling apps’ – Glen White, Founder and CEO of businessfriend

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TOP 10

GLOBAL CEOs

of manufacturing Introducing ten of the world’s most influential #ManufacturingMavens Written by Abigail Phillips

Terry Gou HON HAI PRECISION INDUSTRY Heading up the Hon Hai Precision Industry which is better known as Foxconn, is Gou Tai-ming, better known as Terry Gou. Gou founded the world’s largest electronics manufacturing company in 1974 and has been at the helm ever since and now has a net worth of more than US$5 billion.

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9 Carlos Ghosn NISSAN & RENAULT As well as heading up Japanese automaker, Nissan, Carlos Ghosn is also CEO of European manufacturer, Renault, meaning that the FrenchLebanese-Brazilian oversees one in every ten cars sold around the world.

His nickname of ‘Mr. Fix It’ stems from the salvage operation in the early 90s to bring Nissan back from the brink of bankruptcy.

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TOP 10

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Meg Whitman HEWLETT PACKARD Despite recent struggles in turning around Hewlett Packard’s PC fortunes, Meg Whitman is one of the US’ leading business personalities while also being named one of the most likely candidates to be the country’s first female president.

Her CV includes roles at The Walt Disney Company, DreamWorks, Procter & Gamble, Hasbro and, most notably, her 10-year role as CEO of eBay.

Hiroaki Nakanishi HITACHI As President of electronics and engineering conglomerate, Hitachi, Hiroaki Nakanishi has been with the company for more than 40 years, working his way up the ranks through his senior regional roles in Europe and America.

Since becoming president in 2010 he has overseen a dramatic restructuring of the company through the Smart Transformation Project.

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Jeffrey Immelt GENERAL ELECTRIC As well as being the Chairman and CEO of conglomerate, General Electric, Jeffrey Immelt has become somewhat of a trailblazer in bringing stability to the US economy.

Appointed by President Obama as Chairman of the Economic Recovery Advisory Board, his presence has been seen by many as an attempt to make the Whitehouse more active

Alan Mulally FORD MOTOR COMPANY After 37 years at Boeing as an engineer and eventually Executive Vice President, Alan Mulally ditched the wings for wheels

in enhancing domestic business.

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when appointed as the man to pull Ford Motor Company from the recession mire in 2006.

Since then it has been ‘mission accomplished’ for Mulally who returned the business to profitability despite the flailing industry around him.

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TOP 10

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Dieter Zetsche DAIMLER As well as being Daimler AG’s Chairman, Dieter Zetsche is also the man behind MercedesBenz turnaround in recent years, living up to his reputation as a proactive leader.

In his seven year tenure as CEO he has also overseen the demerger of Daimler and Chrysler, but has been with the company in some capacity since 1976.

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Martin Winterkorn VOLKSWAGEN GROUP Another leading CEO with the reputation of keeping a company moving forward through the tide of the global recession, Martin Winterkorn has held his role at Volkswagen AG since 2007.

This title complemented the Chairman role he already occupied on the Board of Management at Audi AG, a Volkswagen subsidiary, since 2002.

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TOP 10

G L O B A L C E O S O F M A N U FA C T U R I N G

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Akio Toyoda TOYOTA As the name suggests, Akio Toyoda is the latest in a long family line of Toyoda’s at the top of the Toyota organisation.

Officially joining the company in 1984, it was another 16 years until he joined the board of directors, and another nine after that before he was announced as the new President of the business in 2009.

The 57-year-old has not only had to ensure that the world’s largest and leanest automaker stayed on top, but has also had to do so through the global recession and 2011’s natural disaster in Japan.

Overcoming the effects of the tsunami played a large part in him being named Autocar’s Man of the Year a year later as he continues to maintain the positive reputation of a family which has sat in the upper echelons of the business since 1937.

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FERTIN PHARMA Preparing for prosperity Written by Sam Jermy Produced by Simon Creavy

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FERTIN PHARMA

The world leader in the development and manufacturing of medicated chewing gum has been investing in various business areas in anticipation of a rise in smoking cessation participants

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March 2015

F

ertin Pharma is preparing for a period of heightened prosperity by investing in new facilities, as it anticipates a rise in individuals who attempt to cease using cigarettes and other tobacco products.

Most recently it has invested in a nicotine science centre at its headquarters in Vejle, Denmark, which also houses a research and development laboratory (R&D), quality assurance centre and new packaging facilities alongside the manufacturing plant. An R&D centre has been built at its division in Mumbai, India too.

This is part of a strategic planning process for the 100-year old firm which it intends to act as a foundation for future company growth, as much of Asia tightens its tobacco regulations and smoking cessation seemingly becomes an ever popular notion in what is now

Fertin Pharma has invested in a wealth of facilities

considered emerging markets for Fertin.

At present the company is sitting on a 35 percent of the world market for nicotine gum, and that equates to 90-95 percent of the business. The company also has a 50 percent shareholding in a tableting facility in Vancouver, the focus of which is predominantly dietary supplements for the North American market.

Søren Birn who is CEO of Fertin Pharma, said: “We have invested heavily in skills, capability and infrastructure so that we have state-of-the-art facilities which produce medicated gum according to cGMP (current Good Manufacturing Practice) in three factories, one of which is US FDA-approved.

“Since we are completely B2B, we of course engage in business development when our

“We have invested heavily in skills, capability and infrastructure so that we have stateof-the-art facilities” – Søren Birn, CEO of Fertin Pharma

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SUPPLIER PROFILE

CONTRAF-NICOTEX-TOBACCO GMBH (CNT) CONTRAF-NICOTEX-TOBACCO GmbH (CNT) is a family owned, international operating company, involved in total supply chain participation of agricultural based products.

The production of more than 1,000 tons of Nicotine and Nicotine compounds according to USP/PHEUR standards, manufactured in Switzerland under full pharmaceutical cGMP; has made CNT the world’s largest supplier of highly purified tobacco derived Nicotine to the pharmaceutical industry for over 30 years. Based on this experience and expertise CNT has also emerged as a significant supplier of pharmaceutical grade Nicotine to the expanding e-Cigarette industry.

Known for its flexibility, adaptability and considerations to the unique requirements of customer needs, CNT has forged a reputation of unparalleled customer service and satisfaction.

CNT controls every step of production – with emphasis on Quality Standards, Compliance, Security of supply and Pricing.

The plant derived starting material is processed at CNTs state of the art extraction facility in Gujarat, India, NISOL Mfg. Pvt Ltd. This starting material is used and further processed by Swiss based pharmaceutical company Siegfried Ltd under exclusive manufacturing terms.

To support the rapidly developing market CNT have recently invested in high quality manufacturing services and scientific support. Based in the UK, Nerudia will focus is on cGMP production of Nicotine containing liquids, filling services, analytical and regulatory services and R&D on Nicotine delivery systems.

Managing Directors Dirk H. Siemann Torsten Siemann Sascha Siemann

w w w.n ico t ineu s p.co m

FERTIN PHARMA core partners allows us to, and they deal with the marketing and distribution of the product. If you develop and manufacture good products and a skilled core partner deals with the sales and distribution of a product market that keeps growing, it adds up and solidifies the entire value chain.”

Constantia Flexibles has supported Fertin in developing a child resistant blister packaging for a customer as well as in optimising the functionality of child resistance and senior friendliness of existing products. Furthermore Constantia could achieve essential improvements in the manufacturing process of alternatively peelable blister lidding foils. It has been working with Fertin on a supply chain level very closely for many years in order to being able to supply packaging foils for the company’s production in due time.

EUROPE

Key Personnel

Søren Birn CEO, Fertin Pharma

Proactive approach Currently there are 1.1 billion smokers and tobacco users in the world and most of them are reported to reside in China, India and South East. This means Fertin Pharma’s investment in Indian facilities is intended to

“If you develop and manufacture good products and a skilled core partner deals with the sales and distribution of a product market that keeps growing, it adds up and solidifies the entire value chain.” – Søren Birn w w w. f e r t i n . c o m

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FERTIN PHARMA

RESINAS

SINTETICAS

Since ancient times, chewing gum has come from trees

NOTHING HAS CHANGED

sales@resinas.com www.resinas.com 42

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proud to continue this tradition since 1928

FERTIN PHARMA

EUROPE

mean manufacturing will be closer to the future consumer pool. With the R&D centre built and a factory construction underway, the company is striding ahead in its international plans.

Birn said: “Those countries that are considered emerging markets are the countries where we consider the economy to be capable and ready for our products. And when those markets open up for things like smoking cessation methods, we will invest. You see these nations are tightening their tobacco regulations again and again, and that is probably a good indication that smoking cessation is becoming a popular trend in those markets.

“In India, that regulation is already in place so it makes sense to invest there. We have a very structured and discipline approach as

SUPPLIER PROFILE

Medicated gum is the company’s main product offering

RESINAS SINTETICAS

Resinas Sintéticas is a leading global manufacturer of rosin-based derivatives. Vertically-integrated into the supply of the raw material, Resinas inspires confidence in customers wary of instability and volatility in other suppliers. As the main gum rosin producer in North America, Resinas is a local supplier to American companies. Mexico’s additional solid trade agreements with Europe, Asia and South America make Resinas the world’s reliable supplier of choice.

Website: www.resinas.com

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FERTIN PHARMA

Fertin production facilities

One of the 600 Fertin Pharma employees 44

March 2015

to the timing of such decision; and in India the time was right. China is not that far away either and we will be ready to pounce.�

Fertin Pharma has subsequently been ensuring its training and employee skill set for its 600-strong workforce is up to the highest standards to withhold the expected future growth in business.

It currently has three training programmes for leadership development, talent identification and a high calibre programme where specialists carry out theses in their specific professional fields.

Each year three to five employees are invited to participate in the two-year long talent programme where they are able to increase business acumen, as well as research and presentation skills to compliment the individual’s technical specialism.

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The company also has a tradition of working with leading European universities, and through this it often takes on master’s students and people in an advanced stage of their studies via Fertin internships, who go on to become integral to the operation. It has an ongoing project with a university department, renowned for robot technology, with ten students who are looking at automation strategies for the company.

Nicotine knowledge Due to the nature of the business, Fertin Pharma has been installing an international nicotine science centre with the purpose of gaining sufficient, detailed knowledge of the nicotine molecule and its application to smoking cessation.

600 number of people that work for Fertin Pharma

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FERTIN PHARMA

R&D is an integral part of Fertin’s work

For more than a decade, Contraf-NicotexTabacco from Germany has acted as the main nicotine supplier to Fertin, providing not just nicotine but nicotine polacrilex and nicotine bitartrate too. It has a close strategic relationship and both companies continue to synergise on other projects, underlying their commitment to continuous improvement.

Fertin also has several mutually beneficial projects with PhD Doctors and ongoing collaboration with various higher education institutes, namely Scandinavian, German and Austrian universities.

Birn said: “We have some quite renowned

Pharma

Leading polymers company for the gum base industry

Contact:

VINAVIL spa Via Valtellina, 63 Milano Italy

www.vinavil.com vinavil@vinavil.it

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March 2015

Constantia Flexibles International GmbH Pharma Division Rivergate, Handelskai 92 1200 Vienna/Austria T +43 1 888 56 40 1501 Pharma@cflex.com Personalcare@cflex.com www.cflex.com

EUROPE

Professors on our advisory board in regards to nicotine science and we do collaborate a lot with universities and get a lot of benefits out of it; and I hope they do too. We have been working with several of them for many years so I guess if they didn’t get anything out of it they wouldn’t do it.

“I certainly think it helps the products we make, we are not making oncology or cardiovascular products or anything like that.

But still our products are made with the purpose of improving people’s quality of life and health and to get them off a habit which is definitely very dangerous. So there is a definite purpose to what you develop and manufacture.

“We only develop and manufacture, then we partner up with the marketers who bring the products to the channels, patients and consumers under their own developed brands. We work with some of the leading pharmaceutical companies such as Novartis and Glaxo Smithkline.

Quitt nicotine gum is one of Fertin’s own products available for license and supply. Its customers sell the products under their brands, and it could be sold as Fertin’s own label as well. The firm does packaging too but its customers develop the strategy and marketing.

Set for growth Birn stated Fertin has a clear 2020 strategy and the aim is to become one of the global leading companies within nicotine over the coming years, by broadening the firm’s position

“We have some quite renowned Professors on our advisory board in regards to nicotine science and we do collaborate a lot with universities and get a lot of benefits out of it; and I hope they do too.”

– Søren Birn

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FERTIN PHARMA

All products go through a quality assurance process 48

March 2015

so as not to be from solely a nicotine gum perspective. Although it will continue investing in this area, it wants to command a position as an expert company on all facets of nicotine.

For him it is not a revolution; more an evolution to get there but that is what the company is determined to do and are very steadily building towards the goal. It is also why it has created the nicotine science centres in Denmark and India.

Backed up by a fully integrated ERP system, in addition to an extensive IT system in the research and development laboratories, Fertin has the tools it needs to for continued success.

Birn said: “Over the last 25 years Fertin Pharma has made a consistent and dedicated effort to continuously develop nicotine gum of improved quality and efficacy for tobacco cessation. We need engaged partners and scientists within

EUROPE

our research areas to realise our ambition of continuously developing next generation products providing smokers access to more and more efficient smoking cessation treatment.

“In cessation from whatever tobacco product a person is using, they might need help to actually manage their craving while they are seeing their habit of using the tobacco product reduced incrementally. And we are very aware that some people like gum, but some like other products and we think there are new, innovative product offerings that are relevant and will come to the fore.

“We do have a part to play because we have a platform and 25 years experience in this field. So I think we are one of the most knowledgeable companies in the world in terms of smoking cessation so we want to expand on that and create growth parameters we can succeed at in the next 5 to 10 years.”

There are many reasons why you smoke, it can be social or for relaxation or stimulation.

There are a lot of reasons and examples, but the common denominator for people who are using tobacco products is the fact they get addicted to nicotine; some get very addicted and others not so much. But it is an addiction to nicotine regardless, and Fertin see this as a bad issue with huge potential to serve this vast group of people. They are set to assume a leading position in the global smoking cessation, and possess all the expertise needed to achieve such a feat.

Company Information INDUSTRY

Manufacturing HEADQUARTERS

Vejle, Denmark FOUNDED

1915 EMPLOYEES

600 REVENUE

700 mio. DKK PRODUCTS/ SERVICES

Medicated Chewing Gum

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Portland Paints & Products Nigeria finds strength from clever strategy

As a leading paints company and marketer of quality sanitary ware products, the firm has contended with many changes but now stands in a healthy market position Written by: Sam Jermy and Produced by: Dennis Morales

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P O R T L A N D PA I N T S & P R O D U C T S N I G E R I A

P

Newly improved and repackaged Sandtex paints brands were unveiled during September 2014

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March 2015

ortland Paints & Products sits in prime position to gain even more Nigerian market share, after clever strategic planning has helped the company into a stronger state than previous years.

The organisation has grown to be a leading paints company with decades of experience in manufacturing, distributing, and marketing a wide range of decorative, automotive and industrial paints. This is as well as offering marine and protective coatings and sanitary ware that support the building, construction and oil and gas industries in Nigeria.

The firm started off as a small division of a larger manufacturing company, called West African Portland Cement (WAPCO), and it became a wholly-owned subsidiary of WAPCO in 1985. WAPCO went through an ownership change from part-ownership by a British company called Blue Circle Industries, to majority-ownership by the French firm Lafarge, who decided to concentrate on core business, which meant that this division had to close.

Olufemi Oguntade, CEO of Portland Paints & Products Nigeria, said: “We have improved our processes to gain on internal operational efficiency which has translated into much better profits for the shareholders.

We grew the bottom line by 72 percent last year and now have over 200 staff. “It is a great achievement considering the many changes with have overcome in the

AFRICA

“We have improved our processes to gain on internal operational efficiency which has translated into much better profits for the shareholders. We grew the bottom line by 72 percent last year and now have over 200 staff” – Olufemi Oguntade, CEO of Portland Paints & Products Nigeria

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P O R T L A N D PA I N T S & P R O D U C T S N I G E R I A

Unveiling of the State-of-the-Art Paint Technology: The POS Tinting Machine

past decade. The company was disposed of through a Management buyout in 2004, and the immediate past Managing Director led the team of five management staff that took it over. The MBO Team had limited funds, but later secured the support of a British Private Equity company, Aureos West Africa Fund.

They gave the financial support needed to fully take over the Company and together with local management, were able to further develop it, and build it to where we are today. “We had our fair share of challenges along the way, going from having to borrow funds, through running a heavily-indebted business, to becoming a leader in the Nigerian paint industry. Since then we have continued to grow steady, and in 2009 we were listed on the Nigerian Stock Exchange. In 2013, the foremost Nigerian Conglomerate, UAC of Nigeria bought out Aureos and became a 51

Decorative paints known

Crown trade and Sandtex

as the Sandtex paints

Biocote anti-microbial paint

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March 2015

AFRICA

percent majority shareholder of Portland Paints.”

Diverse offering Portland Paints flagship brand is the Sandtex range of high quality decorative paints which have been formulated after many extensive researches to provide protection and aesthetics for all types of residential and commercial buildings. They are made with high quality input under strict quality control and the product has a 5-year guarantee offer.

Oguntade said: “We represent Crown Paints, one of UK’s largest paints manufacturers, in Nigeria through our Sandtex Paints Colour Boutique, a recently introduced paints retail channel where a computerised colour delivery system can instantly produce more than 15,000 colours direct to big projects, architects, contractor’s, home

“We have continued to grow steadily, and in 2009 we were listed on the Nigerian Stock Exchange” – Olufemi Oguntade

Hempel, renowned for their

Portland bathrooms: stockists for

marine and protective coatings

a wide range of sanitary wares w w w. p o r t l a n d p a i n t s n g . c o m

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P O R T L A N D PA I N T S & P R O D U C T S N I G E R I A

Production facility

owners, painters and decorators.

“The products in the Crown Trade and Sandtex Trade range are import-quality brands for highend residential and commercial projects. We are also the Agency in Nigeria for Armitage Shanks and Ideal Standard Brands of Sanitary Ware and Fittings. We also represent Jaquar brands of India.

“All our products are in great demand by state and federal governments, corporate organisations, building contractors & engineers, architects as well as private property developers and individual project owners.”

These brands provide a range of bathroom products to suit diverse needs for hotels,

www.nycilltd.com Pioneers in the Manufacture in Nigeria of Alkyd Resins • Polyvinyl Acetate Acrylic Resins & Emulsions • Melamine Resins Plasticizers • Additives and Binders Sylmar Technology is dedicated to the supply of high quality solid surface products for domestic and commercial use. In addition to the supply of its key brands maia, minerva and Avonite, Sylmar Technology also offers turnkey solutions for all your solid surface needs.

The range of work undertaken ranges from one-off individual retail projects to the full design and fabrication of components delivered to your production line.

Whatever your requirements – we can help.

Manufacturer Oil & Gas Production Chemicals in Nigeria of Corrosion Inhibitor (Water, Oil & Gas Lines) Pour Point Depressant • Scale Inhibitors Demulsifiers • Water Clarifiers

Contact Sylmar or visit our website now for more details. sales@sylmar.co.uk | 01773 521300

+234 903 9504 447 +234 816 3580 593 +234 903 8425 953

info@nycilltd.com nycil_limited@yahoo.co.uk

P.O. Box No 1187, Ikeja, Lagos, Nigeria

www.sylmarsolidsurfaces.com

Plot 5-8, Ogun State Housing Industrial Estate, Km 6, Idiroko Road, Ota, Ogun State, Nigeria

AFRICA

The company has experienced extreme growth in recent months

hospitals, schools, hotels, homes and other public places. They are products designed for high, medium and low income housing projects, varying commercial and industrial uses and needs of the less-able individual.

Set for further growth Coupled with the recent increase in bottom line, Portland Paints has reorganised its route to the market by inviting partners to take ownership of sales depots through the depot franchising model, thus achieving greater efficiency.

Oguntade added: “We are working at strengthening our footprints in the marine/protective and auto/industrial lines to take advantage of the emerging opportunities in those sectors.

“To complement this, the quality of product offerings and service delivery have improved

“We are working at strengthening our footprints in the marine/ protective and auto/ industrial lines to take advantage of the emerging opportunities in those sectors” – Olufemi Oguntade

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considerably via the introduction of first of its kind ‘In-Plant & Point of Sale Tinting System’ of our conventional, locally manufactured paints. Since our majority shareholder, UAC of Nigeria, took a 51 percent stake in 2013 we have integrated our processes and a lot of seminars and staff training has taken place to ensure we retain highly skilled staff.

“We have a full-fledged Risk & Compliance Policy which we have continued to follow rigorously through periodic audit of our operations by both External Auditors and our full-fledged Risk & Compliance Unit. We are also ISO Certified.”

Portland Paints source input materials and merchandizing products both locally and abroad. For most of its locally sourced materials, it operates a Vendor Management Inventory (VMI). By this process, it warehouse suppliers’ goods and the goods are not invoiced until it has used them in production.

This has assisted the firm a great deal in the management of its working capital.

The company has improved considerably in its product offerings in the decorative segment of the business. Aside from the marine and protective growth lines, it will also deepen the industrial and automotive segment by capitalising on recent government policy in the automotive industry. On accomplishment of this objective it hopes to have gained a substantial share of the Nigerian paints. industry; it looks well set to achieve this goal.

Company Information INDUSTRY

Paints and sanitary ware HEADQUARTERS

Lagos FOUNDED

1985 EMPLOYEES

200 REVENUE

Not disclosed PRODUCTS/ SERVICES

Paints and sanitary ware

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IMI Mexico:

Excellence in circuitry mounting and precision electronics The Mexican affiliate of International Micro-electronics Inc. is expanding operations beyond the automotive industry and developing exports on a larger scale.

Written by: Mateo Rafael Tablado Interview by: Rebecca Castrejon Produced by: Diego Pesantez Interviewee: Juan Jose Herran, General Manager, Integrated Micro-electronics Inc. de Mexico

I N T E G R AT E D M I C R O E L E C T R O N I C S I N C . D E M E X I C O

T

IMI affiliates worldwide

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March 2015

he ever-growing automotive industry in Mexico keeps thriving with new opportunities to capitalize on the country’s location just south of a top auto global market.

The Western (Jalisco and Aguascalientes) and Bajio (Queretaro, Guanajuato, Hidalgo) auto clusters work for top brands as both OEM and after-market manufacturers. Integrated Microelectronics Inc. Mexico (IMI) supplies top tier companies with specialized components such as PCBA, flex circuit mounting and semiconductors for sensing devices.

Integrated Microelectronics Inc. was created in the Philippines in 1980 as a joint venture between the Ayala Corporation and Resins Inc. The Mexican affiliate, opened in 1996, works under IMI’s global standards as well as with Germany’s Automotive Industry Association’s approval.

“Developing a business structure was necessary for the company and now we find ourselves in a position to finally become successful,” declared Juan Jose Herran, General Manager for Integrated Microelectronics Inc. Mexico.

Herran graduated from the Technical Industrial Learning Center (CETI) in Guadalajara, Jalisco, as an industrial engineer specialized in automation.

He obtained a Master of Science degree from Texas A&M. Before being named general manager for IMI Mexico in late 2013, Herran worked for General Motors, GM affiliate DelphiDelco Electronics, and other companies in the

L AT I N A M E R I C A

electronic and automotive sectors.

“My experience covers strategic production, product engineering, estimates, operations and contract manufacturing, among other activities,” Herran said.

The manufacturing of circuit boards and sensors entails fulfilling client demands as well as delivering products according to global safety and quality standards. Proving its high competitiveness, IMI de Mexico has become the number five supplier for the automotive industry in the state of Jalisco, Mexico.

“We’ve barely cracked the top five companies in the state, but we still want to climb higher,” stated Juan Jose Herran, General Manager for Integrated Microelectronics Inc. Mexico.

IMI headquarters in the Philippines

Key People

Juan José Herrán General Manager, Integrated Microelectronics Inc. de Mexico Herran graduated from the Technical Industrial Learning Center (CETI) in Guadalajara, Jalisco, as an industrial engineer, specialized in automation. He obtained a Master of Science degree from Texas A&M. Before being named general manager for IMI Mexico in late 2013, Herran worked for General Motors and GM affiliates such as Delphi Delco Electronics.

Other former employers include Flextronics, Celestica and Johnson Controls. Herran is experienced both in manufacturing processes as well as in management and negotiations.

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C O M PA N Y N A M E

Molding process in the production plant

“A business structure was necessary for the company, we now find ourselves in a position to finally become successful” – Juan Jose Herran, General Manager, Integrated Microelectronics Inc. de Mexico

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March 2015

Tech Investments and Global Network Support The company’s operations will be greatly improved by increasing and optimizing automation, the area in which IMI de Mexico is investing the most. State-of-the-art micromachinery is necessary for PCB molding and assembly. Testing for parts is performed through robotics and other procedures.

IMI’s 15 subsidiaries worldwide share best practices and results. New technologies and procedures are deployed simultaneously in every affiliate according to global standards.

“Our global knowledge base and best practices updates for quality improvement give us a very important advantage,” Herran said.

SECTOR

Precision manufacturing

Into the Industrial, Medical and Aerospace Sectors IMI de Mexico is not settling with constant growth among the country’s automotive component manufacturers. Upcoming plans foresee expanding into other business sectors such as healthcare and the aerospace industry.

“We look forward to working in the aerospace and the healthcare sectors, starting within the next two or three years,” Herran commented.

A look into IMI de Mexico’s production facility

A Supply Chain of Opportunities IMI Mexico’s supply chain has proved to be a key element of the company’s success. Progress has also resulted in constant growth for every supplier. Plastics producers such as Wittmann/ Battenfeld and Panasonic are very important, w w w. g l o b a l - i m i . c o m

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L AT I N A M E R I C A

as well as suppliers of epoxy resins and surface mount technology (SMT). The company is keen on engaging in new partnerships, with preference for local suppliers able to optimize metal casting operations as well as providing raw material.

“We search for business partners thriving to grow with us, the kind of suppliers for whom we could become one of their top three clients,” the executive explained.

Assembly plant

The Market Abroad Resources employed by IMI de Mexico result in high quality products whose final destination isn’t always an assembly plant in Jalisco, Puebla or Aguascalientes. Some of the company’s products are sent abroad to important automotive clusters in Detroit, Michigan and Huntsville, Alabama

SUPLIER PROFILE Always ready to provide consultancy and technical services for the demanding industry North America.

Our offices are strategically located on the most important regions, including: Guadalajara, Cd. Juarez, Tijuana, Queretaro, Reynosa, Phoenix, El Paso.

SMarTsol represent and distribute leader products in the industry, as: • Universal Instruments, Surface Mount Equipment, Automatic Insertion and Automation • Nordson Yestech and Nordson Dage, Imaging Inspection Products (AOI 2D/2D, UV AOI, XRAY) • AIM Solder, Solder Paste, Bar, Solder wire, flux and others • BTU International, Thermal Processing Equipment for Electronics, Automotive, Solar, etc • ThermalPress, HeatStaking, Hotbar, Sealing, etc.

• ILJIN, Handling equipment and automation • Elite Automatic Co, Routers for PCBA’s • Laser Solutions by SMARTSOL, Marking, Cutting, Soldering and other Laser applications.

Founded in 2012 by Mexican Investors, currently with 19 associates, Corporate Office located in Guadalajara, Mexico.

Making strong alliances with Customers, Suppliers and Staff to integrate solutions for the Industry.

Website: www.Smartsol.mx

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I N T E G R AT E D M I C R O E L E C T R O N I C S I N C . D E M E X I C O

(home to Honda, Hyundai, Toyota and Mercedes manufacturing plants.) Since late 2014, IMI de Mexico also exports to the Brazilian market. “We want to maintain our ties with the Brazilian market, we want to keep being attractive for them,� Herran said.

Molding machinery

Conscious Waste Disposal IMI de Mexico has been certified under ISO: 14001 standards for years. Manufacturing waste consists mainly of cardboard leftovers and metal and plastic scraps. Each are handled and disposed of by different recycling companies specialized in one or the other kind of residue.

L AT I N A M E R I C A

“We’ve incorporated the best environmentallyfriendly practices since many years ago, showing our care for our community and nature,” the executive said.

Maintaining Growth Rate and Standards IMI de Mexico faces important challenges in the mid- and short-term future. For example, the company’s growth is now customarily measured by the doubling of sales figures on a bi-annual basis. Keeping up with this rate is an important goal to be accomplished along with expanding into different sectors.

“Our staff in every department is very talented, a trait which has become a strength to fulfill our clients’ demands,” commented Herran.

“We search for business partners thriving to grow with us, suppliers for whom we could become one of their top three clients”

Company Information NAME

Integrated Microelectronics Inc. de Mexico INDUSTRY

Electronic components for auto industry HEADQUARTERS

El Salto, Jalisco, Mexico FOUNDED

1980 in Philippines, 1996 in Mexico EMPLOYEES

835 REVENUE

USD $65 million WEBSITE

www.global-imi.com

– Juan Jose Herran, General Manager, Integrated Microelectronics Inc. de Mexico

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First-tier supplier for the automotive industry

tJason has an aggressive goal of 15 to 20 percent annual overall growth, to be accomplished through a combination of acquisitions and organic strategies.

Thus, our attention is finely tuned to growth markets, like Mexico.

Producded by: Diego Pesantez

JANESVILLE DE MEXICO History

J

anesville Acoustics is a leading global producer of acoustical and thermal fiber insulation and molded fiber products. A Tier I and Tier II supplier to the automotive and transportation industry worldwide, the company is the recipient of numerous “outstanding supplier� awards from the automotive manufacturers with which the company does business, and the industry at-large.

Founded in 1875, Janesville Acoustics is headquartered in Southfield, Michigan, with manufacturing plants and satellite offices in Ohio, Mississippi, North Carolina, Germany and Mexico. For more information about Janesville Acoustics, visit www.janesvilleacoustics.com.

Jason Incorporated is parent company to a global family of manufacturing leaders within the seating, finishing, components and automotive acoustics markets. All Jason companies utilize the Jason Business System, a collaborative manufacturing strategy applicable to a diverse group of companies that includes business principles and processes to ensure best-in-class results and collective strength.

Headquartered in Milwaukee, Wis., Jason employs more than 3,600 individuals in 13 countries.

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L AT I N A M E R I C A

Operations in Mexico Janesville Acoustics, a Jason Incorporated company and leading global supplier to the automotive and transportation industry, has officially opened a 90,000 square foot plant in central Mexico. The facility – which is located in Celaya, Guanajuato – provides Janesville Acoustics with a strategic location from which to support the growing automotive industry in the region. Participating in the May 8 opening ceremony were Héctor López Santillana, governor of Guanajuato; Rubí Laura López Silva, mayor of Celaya; David Westgate, chairman, president, and chief executive officer of Jason Incorporated; David Cataldi, president of Janesville Acoustics; and several customers.

“Jason has an aggressive goal of 15 to 20 percent annual overall growth, to be accomplished through a combination of acquisitions and organic strategies. Thus, our attention is finely tuned to growth markets, like Mexico” “Like all Jason companies, Janesville Acoustics recognizes the value of manufacturing and supplying products in close proximity to our customers. Therefore, adding a plant in Celaya, where we are within arm’s reach of several vehicle assembly sites, made perfect business sense,”

“We are honored to add Janesville Acoustics to the growing list of companies that are investing in our region,” said Governor Héctor López Santillana.

“Their investment not only helps to spur our economy, but also contributes to Guanajuato’s worldwide reputation as an automotive manufacturing leader”

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JANESVILLE DE MEXICO said David Cataldi. “As the global automotive industry continues to increase its presence in Mexico, we anticipate Janesville Acoustics’ Mexican footprint will expand in response.” The addition of the Celaya plant marks Janesville Acoustics’ second manufacturing facility in Mexico. In 2000, the company opened a plant in Uruapan, located in west-central Mexico.

Janesville Acoustics invested approximately $4.5 million to establish the Celaya plant, which is located in a leased facility. Within two months, the company expects to employ 150 individuals at the location, 63 of which have already been hired.

L AT I N A M E R I C A

The plant will produce parts utilized to manage vehicle acoustical performance and, therefore, features a felt line for production of the company’s Marabond® material, compression molding presses, and water jet trimming equipment.

Company Information NAME

Janesville de Mexico

“Jason has an aggressive goal of 15 to 20 percent annual overall growth, to be accomplished through a combination of acquisitions and organic strategies. Thus, our attention is finely tuned to growth markets, like Mexico,” said David Westgate. “We’re extremely optimistic about the opportunities that will come from Janesville Acoustics’ increased Mexican presence and foresee the potential for other Jason companies to enter the market or expand their footprint here, as well.”

INDUSTRY

“We are honored to add Janesville Acoustics to the growing list of companies that are investing in our region,” said Governor Héctor López Santillana. “Their investment not only helps to spur our economy, but also contributes to Guanajuato’s worldwide reputation as an automotive manufacturing leader.”

EMPLOYEES

Automotive Manufacturing HEADQUARTERS

Uruapan, Michoacan, Mexico FOUNDED

1990 (Global)

500 REVENUE

USD $80 million WEBSITE

www.janesville.com.mx

This article will continue in the edition of April, 2015.

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GW Plastics

GW Plastics’ Comprehensive Consistency Moves Company forward, Maintaining Mission and Core Values GW opened for business 60 years ago with just two molding machines and a handful of customers. Today, they rank among the top injection molders in the world with locations in the United States, Mexico and China.

Written by: Andrew Rossillo

Produced by: Brian Mooney

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GW PLASTICS

G

W Plastics was founded over a half-century ago in 1955 when two early plastics pioneers, John R. Galvin and Odin A. Westgaard, decided to combine their extensive business and materials engineering experience, and their initials, to start a plastics injection molding firm.

After building GW Plastics into one of North America’s premier precision injection molders, they sold the company to Carborundum in 1973.

A series of large-company M&A transactions in the 1980s resulted in ownership by Standard Oil of Ohio (Sohio). In 1983, a group of company managers and investors led by Plastics Pioneer Frederic Riehl, purchased GW Plastics from Sohio. In 1998, Brenan Riehl became the President and CEO after an early career with Owens-Illinois and General Electric, assuring a successful leadership transition and continuity of ownership. The company has remained closelyheld, under the same ownership, to this day.

“We are a high precision injection molding and contract manufacturing company” said GW 78

March 2015

Plastics’ President & CEO Brenan Riehl. “We make precision injection molded thermoplastic and silicone components as well as completed assemblies primarily for the healthcare, automotive safety critical and industrial markets. The majority of our business is with Fortune 1000 market leaders who we supply on a global basis.”

Riehl explained that what the Company primarily does is help their customers achieve a competitive advantage in the marketplace by helping them develop, innovate and manufacture their products.

Contributing to GW’s competitive advantage is their experienced workforce and stability of ownership.

“We’ve really enjoyed an exceptional period of stability of ownership and leadership with the company,” said Riehl. “We are also fortunate to have a professional leadership team supported by an outstanding Board of Directors and a talented, longtenured workforce. This has allowed us to keep a steady hand on the tiller, and GW on an even keel, as we have traveled through the highs and lows of the economy.”

This steadiness throughout the

USA

GW Molding

company has also allowed GW to reinvest back into the business with confidence. “We’re a privately held and financially strong company. We don’t have the burden of chasing quarterly earnings reports. This allows us to invest for the longrun which resonates with our customers,” said Riehl.

Consistent Mission The mission of GW Plastics is to manufacture medium- to highvolume, close-tolerance molded components and assemblies.

Their emphasis is on profitable growth supported by continuous improvement in all phases of their operations to meet and exceed customer expectations.

“What’s especially notable about our mission and value statement is that it hasn’t changed in over 20 years, which provides some insight into our culture. It has stood up against the test of time. We don’t chase the flavor of the month. Our mission and value statement has provided consistent and steady guidance in how we operate and conduct our business. We always put our associates, customers and integrity first,” said Riehl.

GW Plastics’ Mission Statement first commits to stating that people are our most important asset, and that we must treat each other with respect and trust. “We really do take that very seriously from our leadership team through the w w w. g w p l a s t i c s . c o m

79

Global reach. Local solutions.

Your G loba l Pa r tner For Me dica l Re s in Highly reputed for our experienced sales staff, technical guidance and logistics expertise, customers depend on Entec Polymers to deliver the trusted total solutions that meet their exacting specifications and medical material needs.

Ente c is your va lue d deve lop me nt pa r tne r :

Exper tise in hundreds of medical applications, including :

• • • • • • •

• • • • • • • •

Comprehensive portfolio of medical polymers Dedicated team of technical experts World class project management and support Quick-ship sample program Custom compounding Regulatory support Testing and analytical capabilities

S urgic al to ols a nd instru m ent atio n D rug deliver y syste m s M edic al packaging D urable m edic al equipm ent A ir a nd fluid ma nage m ent D iagn o stic equipm ent D isp o s able device s L ab ware

w w w. e n t e c p o l y m e r s . c o m

GW PLASTICS

USA

entire organization. We practice servant leadership at GW, starting with me and flowing throughout the organization,” said Riehl. This approach allows the Company to listen to its associates and to do their best to make sure they address their needs and concerns.

As mentioned, what’s especially notable about GW is their longtenured workforce. “We have a remarkably talented and longtenured workforce. For example, last year we recognized two associates with 50-year service awards. We consistently recognize associates with 40-, 30-, 20-year and 10-year

SUPPLIER PROFILE

service awards. At the same time, we are hiring new talent to support the growth of our company. We really care about our associates and celebrate their longevity with the company.

Experience matters,” said Riehl.

GW encourages this longevity by taking care of their associates, by investing in its people. This includes a very strong compensation and benefits program (e.g. profit sharing, 90 percent of healthcare covered, tuition reimbursement, generous 401(k) plan that makes both a fixed and matching contribution) internal and external training, and more.

These benefits combine to nurture a

WWW.ENTECPOLYMERS.COM

Highly reputed for our experienced sales staff, technical guidance and logistics expertise, customers depend on Entec Polymers to deliver the trusted total solutions that meet their exacting specifications and material needs. - See more at: http://www.entecpolymers.com Website: www.entecpolymers.com

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GW Automation

GW PLASTICS truly loyal and engaged workforce.

The second pledge of GW’s mission statement reads: “Customers are the only reason for GW’s existence and must be treated as such.” Speaking on this point, Riehl points out that when you get stability of ownership and leadership, paired with a highly trained, motivated and engaged workforce, you get very solid alignment with customers. “We really focus strongly on aligning with our customers. We work hard to make sure we achieve the right fit, so that our business, our culture and our way of working together, which is predominantly a collaborative mindset, aligns well with our customers,” said Riehl.

“We work very hard to satisfy our customers. Our focus is really on making sure that we remain exceptionally customer-focused.

For all the people of GW, fostering a strong and lasting customer relationship is of the greatest importance.”

Furthermore, most of GW’s senior management spends much of its time outside of the office visiting with customers. As

USA

part of that, in-person, quarterly, customer business reviews are strongly encouraged to ensure proper business alignment. “If you look at our customer base, it’s composed primarily of Fortune 1000 companies, where we are the preferred supplier to most, and where we have customer relationships that typically exceed 10 years. That’s of critical importance to us,” said Riehl.

GW’s third element of their mission statement reads: “Quality of product and services is the number one priority. We must strive for excellence in everything we do.” As such, quality is a very high priority for the Company, starting from Riehl and reaching throughout the Company. Their focus on quality is intense to the degree that it challenges every employee in every department of the Company.

The fourth component of GW’s mission statement holds that “Profits and enhanced shareholder value are absolutely essential to the success of the company.” “GW has never shown a net-income loss in its history,” said Riehl. “We’re responsible financial stewards, w w w. g w p l a s t i c s . c o m

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C O M PA N Y N A M E

GW Medical Device Contract Assembly

working very carefully to ensure that we’re here today, and we’ll be here tomorrow for our customers and shareholders. We manage the Company in such a way that we encourage consistent performance year-over-year.” This echoes very well not just with GW employees and shareholders, but with its customers and suppliers as well, since it serves as an indicator that GW can be relied upon.

Furthermore, a majority of GW’s growth has been organic, versus pursuing a serial M&A strategy choosing to grow in a responsible, planned fashion, avoiding undue risk that would jeopardize the Company, their supply chain or their customers. “Not too many 84

March 2015

companies can show that they’ve never had a loss, particularly a company that’s been in business as long as we have,” said Riehl.

This enables GW to reinvest back into the business with confidence, supporting the ability to grow with their customers, and be where they are needed throughout the world.

The final element of the Company’s mission statement reads: “Integrity is a must in all of our dealings. We are a Company of great integrity — our word is our bond,” said Riehl. “We work very hard internally as well as with our customers, practicing what we preach, so that our employees and customers can trust each other.”

SECTOR

Investments GW has invested responsibly, but aggressively over the years to support their customers’ needs.

“In the area of process consistency and process control, we’ve had a very aggressive investment strategy with regard to making sure we have state-of-the-art injection molding equipment to match our customers’ objectives and give them a competitive advantage, both in terms of productivity and quality,” said Riehl.

GW also invests heavily in new technology. “We’re one of the few companies that have an advanced in-house tooling capability where we make our own molds; both here in the U.S. and in Asia,” said Riehl. “We’ve also invested very

heavily in multi-shot molding, liquid silicone rubber molding, clean room contract manufacturing and automation to improve process consistency and control.”

“We also have a high level of standardization from plant to plant, whether it’s in Bethel, Vermont or Dongguan, China. When you walk into any GW facility, you see the same clean, environmentally controlled and high-tech facility, highlighting our investment commitment to standardization of facilities, equipment, systems and procedures. We are the manufacturing cousins of successful, standardized franchisees like Starbucks or McDonalds said Riehl. w w w. g w p l a s t i c s . c o m

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GW PLASTICS

In-house Training Supporting GW’s strategic investments and critical mission statement commitments is the Company’s comprehensive dedication to in-house training.

Underlining the importance for internal training, Riehl pointed out that the United States workforce is losing a significant amount of highly experienced and talented people to retirement, making it increasingly more challenging to replace those skilled individuals and fill the gaps they’re leaving in the workforce, “GW recognized this many years ago, and began investing heavily in workforce training. Specifically, we have a long-standing apprenticeship 86

March 2015

program in our tooling areas. We’ve also invested heavily in some very innovative training and recruiting initiatives. With respect to recruiting, we started the GW School of Tech this year. Essentially, it’s an on-site high school accredited program where we bring in high school students into our facility; with high school teacher support. The students spend two days a week for an entire semester, learning about manufacturing.” One of the things the Company is trying to accomplish through this program is to get young people interested in manufacturing again.

GW has also formed relationships with local tech schools in Vermont,

USA

partnering with them and offering very generous, targeted scholarships, both for two- and fouryear technical degrees including paid internships.

When certain criteria are met within this process, GW then offers employment at the Company.

Extending the reach of and bolstering these efforts, Riehl said, “we are also working closely with Vermont state leaders and educators to help students earn free two-year associates degrees in technical fields.”

In addition, GW also has a number of internal training programs. “Two years ago, we started a program called the GW Certified Manufacturing Technician Program. As part of this, we’ve partnered with Vermont Technical College, which is one of the finest technical colleges in New England. This program includes one class per semester for four years, covering a technical curriculum that helps GW employees become more effective in their roles within the Company.

In addition to certification and increased proficiency in their role, those who successfully complete the program are awarded with a substantial increase in pay.

With GW Plastics’ stability of ownership, professional leadership team and experienced workforce promoting a culture of customer focus, collaboration, continuous improvement, and adherence to core values GW is well positioned to continue on its steady course of growth and success.

Company Information INDUSTRY

Manufacturing HEADQUARTERS

Bethel, VT, USA FOUNDED

1955 EMPLOYEES

Not Disclosed REVENUE

Not Disclosed PRODUCTS/ SERVICES

Plastics, Manufacturing

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Amaray Plastics How Lean Manufacturing Drives Profits In a Streaming World

Despite the world turning to online venues for movies and TV shows, Amaray’s production of disc boxes continues to grow and add profit to the company.

Written by: Laura Close Produced by: Brian Mooney

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A

s one of the highest volume producers of plastic components and assemblies, Amaray Plastics knows its business is driven by customer experience and therefore sets out to achieve extreme customer satisfaction as a focused solutions provider bringing insight, innovation and cost effective manufacturing alternatives within select markets where need for millions or billions of parts produced to exacting, repeatable tolerances exists.

Amaray’s multinational manufacturing operations, working to standardized processes and 90

March 2015

procedures, enable them to provide all levels of project support with consistent quality and production outputs. Customer service, quality, advanced manufacturing technology, an informed, engaged workforce and innovation serve as the pillars for the company.

As part of Greenwich, CT based Atlas Holdings, Amaray is a wellfunded organization poised for growth and diversification. As the long term, global leader in the molding of polypropylene boxes for discs that contain movies, games and software, Amaray is one of the best companies in the

USA

world at high volume, highly automated, highly efficient injection molded plastic products. Now Amaray is charting new courses for growth and diversification leveraging the foundation that has led to its success in their primary market.

Jim Sykes was brought aboard as President and CEO in April 2014 to lead the growth charter.

Sykes, a recognized industry leader, was employed by Nypro Inc. for the prior 22 years. In a variety of commercial and operational roles, he successfully spearheaded new Nypro business growth in the consumer electronics space from its inception to nearly $700M annually. “Amaray has amassed 323 patents spanning 25 countries in the area of media package manufacturing,” shared Sykes. “The standard polypropylene box today is 42 percent lighter than 10 years

“Amaray’s drive into lean manufacturing stems from the aggressive market demands that they were under in the home entertainment or media packaging world with the erosion in that area” – Jim Sykes, president of Amaray Plastics

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91

A M A R AY P L A S T I C S ago. Innovation and continuous said Sykes. “Our roots are in the improvement is the genesis of where manufacture of home entertainment we come from.” or media packaging.

“Amaray is one of the few global Profitability in a Streaming injection molders that have been World able to sustain profitably in this A decade ago, media packaging space. We will continue to focus was the main source of revenue for on this massive market, increasing dozens of companies around the share and extending product and world. However, with the growing service offerings. We have formed movement of people acquiring and empowered a dedicated global content digitally, the industry is now team of commercial and technical experiencing erosion. talents to forge and execute our “We’re a company in transition,” winning strategies on this front. As

Rick Mossback, CFO: “…by improving our system we have grown to about five times the total shipments in the last three years with the same staff level controlling inventory…”

Jeff Deeley, Warehouse Manager: “Today we might audit almost 500 storage locations before finding a single stock level error…”

USA

in all of our multinational enterprise, we will maintain our competitive advantage through innovation, ingenuity, customer orientation Lean manufacturing processes, and increased integration of automation.”

Progressive Lean strategies have helped with this transition.

“Amaray’s drive into Lean manufacturing stems from the aggressive market demands that we were under in the home entertainment or media packaging world,” said Sykes.

Employees are trained in Lean concepts and team events are held regularly to engage everyone in the process. Over the past few years, Amaray’s Lean journey has included Kaizen events targeting particular areas of opportunity. The organization also maintains formal, robust, cross functional continuous improvement and 5S programs.

These programs involve every department within the company, but generally have registered the most profound impact in the manufacturing area. Ted Brown, a 13 year Amaray veteran, was responsible for originating many of

the companies structured efficiency programs over the years. Recently, Brown was promoted from VP North America to the global Chief Operations Officer role. Brown commented “Aggressively driving opportunities for operational efficiency gains, waste reduction and lower cost has long been part of the Amaray DNA. Our formal programs in this regard, now in their 11th year, continue to evolve and gain momentum. They have been the cornerstone of our success here at Amaray.”

Although Amaray remains profitable in the media market, the company has turned an aggressive focus toward diversification.

Dedicated business development and program management resources with strong experience and networks in new industries were hired in both Europe and USA in 2014. These folks are charged with the responsibility of securing additional products and customers that will benefit from the ultra-precision, low labor content manufacturing environment. Primary applications sought will likely involve technologies which Amaray has pioneered in the Media market; w w w . a m a r a y. c o m

93

A M A R AY P L A S T I C S living hinges, snap closures, high volume products lending themselves to highly automated secondary operations.

Jamie Tinsley, Managing Director of Amaray Europe added “The team focused on Develop and Diversify is now in place across Europe and the USA; a blend of creative, innovative and commercial talent with a broad experience across many sectors, focused entirely on the delivery of new products, developing new market sectors and adding value for Amaray and its Customers. We have set ambitious targets as far as business forward growth plans, but the focus and drive shown over the past couple of quarters is delivering tangible benefits. We encourage market leading brands to talk with us, challenge Amaray to review its products, packaging and services and let us show you how Amaray can add value.”

USA

Technology like InterNetworX’s ShopWorX ERP manufacturing software package helps Amaray’s Elizabethtown, KY and Pittsfield, MA facilities with planning, manufacturing, scheduling, costing, accounting and customer support.

InterNetworkX tailored ShopWorX ERP specifically for the company to help develop automated palletizing as well as a warehouse inventory control system utilizing barcoding to minimize labor while maximizing accuracy. Amaray’s finished goods inventory accuracy has increased from sub 90 to 99 percent+ since the implementation.

In addition, Amaray continues to increase their value added manufacturing services connected to the molding machine via an inline, automated approach. Hot stamping, pad printing, ultrasonic welding, thermal welding, InMold Labeling (IML), mechanical

“Aggressively driving opportunities for operational efficiency gains, waste reduction and lower cost has long been part of the Amaray DNA.” – Ted Brown, COO of Amaray Plastics w w w . a m a r a y. c o m

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assembly and PSA application are all conducted at the molding machine, within cycle time with zero labor content. Ted Brown stated, “Over the years we have demonstrated a nearly flawless track record in integrating new technologies and ramping them to high volumes within project time and cost constraints.”

Meeting its organic growth and acquisition goals will help Amaray remain profitable in the digital era. The company is poised for acquisitions. In the short term Amaray is actively seeking to 96

March 2015

purchase smaller injection molding companies in Western Europe and North America where adjacent capabilities or solid customer relationships can be obtained.

Green Partnership with Major Studios As mentioned earlier, a big part of Amaray’s business is customer satisfaction. One of the company’s latest green initiatives was prompted by listening and responding to customer requests.

One of major objectives of the film studios is to fill the retail pipeline

USA

channels with movies and TV shows. However, filling these channels is based on demand speculation. If consumer demand doesn’t meet expectations, studios must take back the unsold products.

“That take-back of inventory was causing pain among our major customers, the studios that produce these pictures,” said Sykes. “Based on that pain point, Amaray, three years ago, instituted recycling centers within our major U.S. and UK operations.

“What happens now, the undersold product from the market comes back to the Amaray factories where we do a complete tear down and then we re-grind and re-process the plastic materials back into new cases.”

Company Information INDUSTRY

Manufacturing HEADQUARTERS

45 Downing Industrial Park Pittsfield, MA, USA, 01201 FOUNDED

1899 EMPLOYEES

325

For The Future Amaray has very ambitious plans for growth and is preparing to triple in size over the next five years. Sykes expects that half of this growth will be organic from current factories; the other half will potentially be through strategic acquisitions that will be complementary to Amaray’s services.

“To sustain, increase share and remain profitable in this market, it comes down to: how can we continuously innovate, optimize manufacturing efficiency and drive lowest system cost?” With leverage on raw materials unlike we’ve seen at any other company and a laser focus on customer satisfaction, Amaray is in a good position to meet these aggressive goals.

REVENUE

$120M

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97

American Apparel Inc. Superior Supplier in Combat and Utility Uniforms

American Apparel Inc. was recently named Gold Star Superior Supplier by the Defense Logistics Agency Written by: Robert Spence Produced by: Jason Wright

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A M E R I C A N A P PA R E L I N C .

American Apparel employee applying genuine care to their work

F

or the last 25 years, American Apparel Inc. has been an industry leader in manufacturing combat and utility uniforms for the Department of Defense. Headquartered in Selma, Alabama, the manufacturing company prides itself on providing stellar performance in quality and delivery, while being highly automated and efficient. And it’s paying off.

Gold Superior Supplier Award 100

March 2015

The Defense Logistics Agency (DLA) recently named American Apparel Inc. as a top performing supply contractor, awarding the company with its coveted Gold Star Award.

DLA considered 153 of its parts and commodity suppliers with the largest contracts that have done business with the agency over the past two years. “We are honored to be selected for this award and it is a tribute to the attitude and effort of all our employees. American has been a

USA

American Apparel Inc. was recently named Gold Star Superior Supplier by the Defense Logistics Agency

major supplier of military uniforms for over 25 years and our employees take a tremendous pride in the support of the Warfighter,” said Chuck Lambert, Chief Operating Officer for American Apparel.

“To be honest, we’ve never focused on the award, but to even be in the same discussions associated with the other Gold Star companies on the list is most humbling.”

The award designation is part of the DLA’s Superior Supplier Incentive Program (SSIP), which is designed to incentivize contractor performance by identifying suppliers with the highest rankings in areas such as cost, schedule, performance, quality, and business relations.

According to Lambert, winning the award has created an attitude within our organization that it

“Our QMS is maintained and continually improved through the use of quality objectives, internal audits, data analysis, corrective action and management review.”

– Chuck Lambert, Chief Operating Officer for American Apparel

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A M E R I C A N A P PA R E L I N C . can be recognized when it puts forth the additional effort it takes to be at the top of your game.

“We are by no means perfect, and learn from our weaknesses each day. It just helps all of our employees to understand by working together and communicating to each other so we can continue to grow and be successful.”

Operations American Apparel employs just under 500 employees in three

facilities in Alabama. Historically, the facilities have been located in small communities where apparel cut and sew operation had previously operated during the 1980s and 90s.

The company is currently positioning itself to be available for potential upswings in product lines and begin an effort to work with all other prime contract holders to create partnerships and to further stabilize production facilities.

“Through these efforts, we were able to capture a new contract on

AMERICAN MADE AMERICAN-OWNED

www.carlislefinishing.com

Long-term customer relationships are as important as the fabrics we make.

Carlisle Finishing™

manufactures battle dress uniform fabrics for US prime government contractors and supplies material for US Army ACU, US Marine Corp MCCUU, US Air Force ABU and US Navy NWU. In addition, Carlisle Finishing has been engaged in supply contracts in South America and countries in the Middle East.

Other Divisions : • Raeford • Uniform & Career Apparel • Contract Fabrics • Barrier • Menswear • Activewear • Safety Components Carlisle Finishing LLC

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FR PRotective FabRics MilitaRy FabRics FiRe seRvice FabRics occuPational FabRics www.itg-global.com

Carlisle, South Carolina 29031

I

864-466-4179

Springfield LLC doesn’t just manufacture top-quality fabrics; we make these fabrics more comfortable, sustainable, and dependable. Our innovative textile solutions ensure the ultimate protection for those who protect us.

Springfield LLC 448 Lakeshore Parkway | Rock Hill | SC 29730 PH : 803-909-5555 | Fx: 803-909-5580 | www.springfieldllc.com

USA

Marine Corps trousers that allowed us to reopen our trouser facility in Opp, Alabama, which had previously been closed in 2013,” said Lambert.

“We have 70 employees back in the facility with plans to add an additional 50-75 in the weeks to come.”

Along with a steady workforce, another thing that sets the company apart from competitors is Technology. The company has a proprietary application called American Apparel Information Management System (AAIMS).

“The AAIMS system tracks our manufacturing process starting with the order entry and cut planning. This information then drives all the raw material purchasing, labor planning, and cut generation,” said Lambert. “All along the way, the system ensures that we have the contract cost accounting information that is needed by us and our customers.”

In addition, American Apparel integrates various systems to ensure standards are consistently met. According to Lambert, the company’s success is based on the belief and understanding of a strong Quality Management System (QMS).

“Our QMS is maintained and continually improved through the use of quality objectives, internal audits, data analysis, corrective action and management review,” said Lambert.

American Apparel works with prime contract holders to create partnerships and to further stabilize production facilities

Future plans American Apparel is currently working with the DLA Troop Support to help with the production

– Chuck Lambert, Chief Operating Officer for American Apparel

“We are honored to be selected for this award and it is a tribute to the attitude and effort of all our employees.

American has been a major supplier of military uniforms for over 25 years and our employees take a tremendous pride in the support of the Warfighter”

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A M E R I C A N A P PA R E L I N C .

American Apparel’s shop floor features prime organization for optimized operations 104

March 2015

USA

of new Army Combat Uniforms (ACU), which is implementing a new camouflage pattern for all combat uniforms worn by the Army personnel.

The company is also working to reduce the labor content of the products it produces, and automation has been a strong focal point.

“One of the major considerations in evaluating automation is the quantity to be produced and over what time period. Obviously, the larger the requirement the more feasible it is for the purchase and payback. Our plans for the future regarding expansion or capital expenditures will solely be determined by the requirement of the Department of Defense,” said Lambert.

Over the last two years the industry has gone through some extremely tough challenges, according to Lambert, and the overall reduction in requirements of uniforms has had a major impact.

“While we understand and support small business, there is a concern as to whether the shrinking industrial base and the financial stability of some small businesses will drastically impact the ability of DLA Troop Support to meet the requirements if the U.S. military is needed in a time of war.”

“We have a great working relationship with the people at DLA Troop Support in Philadelphia that is the contracting office for most of our production and feel very comfortable with our position for the future,” adds Lambert.

Company Information INDUSTRY

Manufacturing HEADQUARTERS

P.O. Box 1310 Selma, Alabama, United States, 36702 FOUNDED

1987 EMPLOYEES

500

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105

Wiring Harness Manufacturers Association

WHMA is the only organization exclusively serving manufacturers of wiring harnesses, electronic cable assemblies, and cord sets, along with their suppliers and distributors.

Written by: Rick Bromm, Chairman of the Board

Produced by: Brian Mooney

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W I R I N G H A R N E S S M A N U FA C T U R E R S A S S O C I AT I O N

The Wiring Harness Manufacturers Association (WHMA) was established in 1993. WHMA is the only organization exclusively serving manufacturers of wiring harnesses, electronic cable assemblies, and cord sets, along with their suppliers and distributors.

WHMA members have banded together as a not-forprofit association in the spirit of volunteerism and mutual benefit to provide the only industry forum through which member companies can aggressively solve both their specific problems and also address pressing industry issues.

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The WHMA is dedicated to providing our members the technical support, access to leading edge technology, benchmarking and the ability to network with the leaders of the wire processing equipment, services and manufacturing.

The WHMA connects members to resources that make them industry leaders. The organization is currently comprised with over 200 manufacturing companies and 45 suppliers to the industry.

Back in 2002, WHMA and IPC, an Association Connecting Electronics Industries, created a partnership to develop and market the A-620

USA

Standard for the industry. This standard prescribes practices and requirements for the manufacture of cable, wire and harness assemblies.

The standard describes materials, methods, tests and acceptability criteria for producing crimped, mechanically secured, or soldered interconnections and the related assembly activities associated with cable and harness assemblies. Any method that produces an assembly conforming to the acceptability requirements described in this standard may be used.

IPC/WHMA-A-620 describes acceptability criteria for crimped, mechanically secured and soldered interconnection and the corresponding lacing/restraining criteria associated with cable and harness assemblies.

Revision B of the standard was published in October 2012. . These criteria are supported by a hard copy book and a DVD with 682 full-color illustrations.

Revision B, was developed during a six-year process by members from user and supplier companies, represents a consensus among industry leaders. The IPC

Wire Harness Acceptability Task Group of the Product Assurance Committee and the Wire Harness Manufacturers’ Association Industry Technical Guidelines Committee prepared this standard.

An industry developed and approved program that includes training, certification and instructional materials based on the IPC/WHMA-A-620B is available to WHMA companies. Thousands of individuals have been trained to be IPC/WHMA-A-620 Certified IPC Trainers (CIT). A comprehensive and technically accurate program, IPC/WHMA-A-620 Training and Certification provides Certified IPC Trainers with high quality materials and detailed instructional plans that have been used for training Certified IPC Application Specialists (CIS) at all levels, including buyers, sales teams and management. More than 20,000 A-620 Application Specialists have been trained.

Certification demonstrates commitment to customer requirements and greatly facilitates certification to ISO Certification or other quality assurance initiatives.

By having earned this portable w w w. w h m a . o r g

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W I R I N G H A R N E S S M A N U FA C T U R E R S A S S O C I AT I O N

credential, members receive immediate recognition, legitimacy and value throughout the electronics industry.

The IPC/WHMA-A-620 training and certification program has two tiers of instruction. Certified IPC Trainer candidates are sent by their parent companies to receive 110

March 2015

intensive training and are then certified to provide Application Specialist training. • Certified IPC Trainers will participate in a week-long program that has 29 instructional hours. An optional eight hour hands-on course is available. • Application Specialist training

USA

is modular and training/certification can be limited to the topics specific to an individual’s work requirements.

In addition to receiving a 50% discount on all A-620 Standard training materials, members of WHMA receive a full portfolio of member benefits.

One of the most beneficial member benefits is the knowledge exchange of best practices through peer networking at the annual WHMA conference and online throughout the year on our robust list serv. The three day conference is held every February, bringing together industry leaders together to discuss market trends and new technologies.

Members are always looking for new sources of business. To facilitate this need, the WHMA lists on its website an online directory by market segments that is promoted to OEM’s and other potential new customers.

WHMA also invites members to participate in the annual Benchmark Survey to help them better manage their company and maximize profits by comparing their performance metrics against others in the industry.

To learn more about WHMA you can go to www.WHMA.org or contact Jim Manke, Executive Director at 763.235.6482 / jrmanke@ associationsolutionsinc.com or Rick Bromm, Chairman of the Board at (800) 783-2589 / rbromm@altexengineered.com.

Company Information INDUSTRY

Wire and Cable Manufacturers Association HEADQUARTERS

Maple Grove, MN FOUNDED

May 1993 MEMBERS

800+

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Australian Bluegum Plantations:

Australian Bluegum Plantati Prepares for Growth With a diversifying market and strong growth, Australian Plantations is a young business with a bright future.

Written by: Sasha Orman Produced by: Cory Shields

ions Bluegum

A U S T R A L I A N B L U E G U M P L A N TAT I O N S

I

n the past few years, the world economy has made it a difficult time for Australian businesses with products seeking to export outside of the domestic market.

But while many have struggled, others are on the rise.

Among them is Australian Bluegum Plantations Pty Ltd. With 110,000 hectares of Bluegum (Eucalyptus globulus) plantations spread across Western Australia, South Australia and Victoria, ABP is in the business of producing premium wood fibre for the pulp and paper sectors. By exploring new markets and vertically 114

March 2015

integrating its operations, the fledgling venture is striving to become a successful integrated forestry business.

Growing the Business from Scratch Every business has to start somewhere and with Australian Bluegum Plantations it commenced with the acquisition of a large plantation estate and the purchase of additional plantations adjacent to these plantations, as well as two port operations. “In November 2009, we purchased 93,000 hectares of

AUSTRALIA

plantation—with no access to export markets, we just bought the land and trees,” says ABP managing director Tony Price, explaining that the land was purchased from a previous plantation venture that had failed and gone into receivership.

That lack of direct market access required the negotiation of partnership agreements with thirdparty businesses for processing and shipping ABP’s product, which was very important to get the business up and running in the first couple of years. Through these arrangements the business was

able to gather momentum with the business increasing its sales by almost double from 2012 to 2014 “In 2012, we had the opportunity to acquire the forestry assets and port facilities of a company that was seeking to exit the forestry business,” says Price.

“The additional plantations we purchased increased our total estate to around 110,000 hectares, and with that acquisition we purchased a port facility in Albany in Southwestern Australia.

Shortly after that acquisition, we had the opportunity to buy another port facility at the Port of w w w. a u s t g u m . c o m . a u /

115

Export Chipping Solutions

Twin System 6830/7900EL (Track Optional)

All-In-One System 5000H

Chipping Equipment The Innovative Solution for Flails & Chippers Peterson offers two very successful solutions for Pine and Eucalyptus Plantations in the southern hemisphere; the ‘All-in-One System’ and ‘Twin System’ for in-field chipping.

Peterson is represented by Komatsu Forest in Australia and New Zealand which provides a strong combination in meeting the local requirements.

Komatsu Forest offers chipping contractors real product support and expertise.

www.komatsuforest.com.au

Komatsu Forest Pty Ltd. 11/4 Avenue of Americas Newington NSW 2127 Australia T: +61 2 9647 3600 E: info.au@komatsuforest.com

A U S . B L U E G U M P L A N TAT I O N S Portland which was in the other area we operate—so we acquired that, which allowed us to have our own avenue to market in Eastern Australia as well as Western Australia.”

As Price explains, the purchase of these port facilities has been as strategically valuable as the acquisition of the trees themselves. “It allowed us to move down the supply chain,” he says.

“Where we’d been totally reliant on third parties for getting our wood to market in the past, this gave us the opportunity to more effectively manage our supply chain, which we believe is a very sensible move in the long term.”

Over the two years, ABP has worked hard to integrate its new facilities and staff into the business as a whole. “We think we did that pretty well,” says Price. “Now that we have pulled the supply chain together, the next step is to optimize and improve the efficiency of that supply chain.”

Exploring New Markets Diversification can be vital to the growth of a new business, and Australian Bluegum Plantations is

AUSTRALIA

looking outside of the paper pulp industry to discover new markets and develop new partnerships.

“One that’s exciting to us at the moment and where we think there’s the potential for even more growth t is a product called dissolving pulp,” says Price. “This is used in the production of rayon for clothing. In China alone, that market is projected to grow 50 percent from its current level in the next two to three years.

Historically, softwood was used for that process—but it’s now been found that the high quality of our fibre is well suited for this process. Probably 80 percent of our wood that is exported to China at the moment goes toward that process. So that’s an emerging or growing market for us and we’re pursuing that.”

Protecting the Environment Environmental protection is always a concern within the industry.

Rather than avoiding the subject, Australian Bluegum Plantations embraces it, caring for the remnant native vegetation on its properties, along with native wildlife. w w w. a u s t g u m . c o m . a u /

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The real BIG Blue Gum forwarder… Solution

Komatsu Forest’s ECO Harvester Komatsu Forest matches a Komatsu PC270-8 with a Komatsu C202E debarking head and forestry modifications to comply with Australian Forest Standards.

The PC270-8 provides the higher engine hp for optimum performance of the Komatsu C202E head with this combination providing: • High Production • High Availability • Lower Purchase Price • Low Operational Cost Komatsu Forest offers alternatives to meet the various harvesting demands in the blue gum plantations plus local factory support offering real benefits to contractors.

www.komatsuforest.com.au

Komatsu Forest Pty Ltd. 11/4 Avenue of Americas Newington NSW 2127 Australia T: +61 2 9647 3600 E: info.au@komatsuforest.com

Total Forestry Focus Komatsu Forest AB (KF) is a major global supplier of forestry equipment with its Head Office located in Sweden. The distribution of KF forestry equipment is carried out by factory owned sales companies and dealers which are supported by the Komatsu factories located in Sweden, USA, Japan, and Brazil.

The Australian sales company Komatsu Forest Pty Ltd (previously known as Valmet Logging) was established in Oct 1990 with the Head Office located in Sydney which incorporates the main parts warehouse. The Head Office supports the KF branches in Albury / Wodonga, Mt.Gambier, Launceston, and Rotorua as well as the service / parts agents located throughout the more remote forest regions of Australia and New Zealand.

Komatsu Forest is rather unique in that it relies totally on forestry business whereas with all other major suppliers forestry is very much a sideline or secondary business interest. This forestry focus enabled KF to take the market leadership in the early 90’s and continues to hold this position today through its concentration on customer support; •

• • • •

Customer/Product Support through; i. In field technical expertise ii. High spare parts availability iii. Competitive pricing Close customer relationships Long term specialised staff Flexibility to meet quick changes to market demands Product modifications to satisfy local conditions

Also Komatsu Forest is able to adapt to the different demands of the various sized companies within the Forestry industry. Being able to adjust to these different requirements is very important. In many cases the harvesting demands and expectations of the equipment may vary, so in this situation KF is able to find a solution that normally will satisfy all parties involved.

With 25 years of experience, Komatsu Forest is the longest serving machinery supplier to the Australian and New Zealand Forestry Industries and it will continue to meet customers’ expectations as the prime supplier of quality forest machines. i.e. TOTAL FORESTRY FOCUS…

Management: Brett Jones - Managing Director, Mike Jones - Marketing Director, Brenton Yon - Sales/Marketing Manager (Aust), Dean O’Connor - N.Z. Manager, Sheryl Pavloff - Financial Controller and Paul Harrison - Product Support Manager.

Website: www.komatsuforest.com.au

& L.V. Dohnt and Company - The largest infield chipping contractor in Australia and Function Chains Pty Ltd, both leaders in improving woodchip quality and increasing wood fibre recovery.

Bracke Plough

Their R&D partnership resulted in the invention of the “square flail chain” which is now widely used in Australia, Canada and the USA.

CHAMPIONS IN CHIPPING

Peterson chipper

Skidder

Feller buncher

Visit us online:

www.lvdohnt.com.au

1.8 million hectares of plantation. one specialist insurance broker.

Flail drum with square chain

Ph: +61 8 8739 7276 Email: admin@lvdohnt.com.au

“We operate in accordance with Forest Stewardship Council (FSC) forest management principles,” says Price. “We’re very proud of that and we have a strong commitment to sound environmental management, it is ingrained in our business.”

Aiming for the Best Australian Bluegum Plantations certainly intends to continue explore growth options in the future, and always has an eye out for potential new opportunities,

T 02 9965 1100

F 02 9965 1111 E info@agririsk.com.au

www.agririsk.com.au

A U S . B L U E G U M P L A N TAT I O N S whether it’s markets or acquisitions. But with that said, it is not a business concerned with growing at any cost.

“We’re not necessarily the biggest, but I think we’ve got ourselves well positioned as a significant, reliable, high-quality supplier in this market and we’ll acquire assets if it makes sense and fits with our strategy,” says Price, explaining that quality growth will always be our goal.

“One of our customers asked last year if we’re going to become pretty big,” he says. “I said: look, the business has grown and we’ve done that to improve the efficiencies of our business. But at the end of the day our target isn’t to be the biggest company, it’s to be the best. That is our philosophy.”

AUSTRALIA

Company Information INDUSTRY

Manufacturing HEADQUARTERS

Part Level 1, 24 Albert Road, SOUTH MELBOURNE VIC 3205 FOUNDED

2009 EMPLOYEES

52 REVENUE

NA

“The additional plantations we purchased increased our total estate to around 110,000 hectares, and with that acquisition we purchased a port facility in Albany in Southwestern Australia.”

– ABP managing director Tony Price

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Differentiation technol

One of the most importa automotive,

MVC:

on, improvement and innovative logy are the secrets of success

ant in engineering plastics processing industry, company serves the , transportation, agribusiness, wind power and construction market Written by: Flรกvia Brancato Produced by: Nayara Ferreira

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MVC

O

perating in Brazil since 1989, with a strong technological identity as one of its key differentiators, MVC Solutions in Plastics belongs to companies Artecola - of the Gaucho group with a tradition in adhesives and plastics with natural fibers, and Marcopolo - one of the largest manufacturers in the world of bus frames. Today, working in the automotive, transportation, agribusiness, wind power and construction sectors, the company is established as one of the most important in the engineering plastics processing industry thermoplastic and thermoset reinforced with fiberglass.

With production facilities in São José dos Pinhais, Catalan, Sete Lagoas, Caxias do Sul, Camaçari, Maceió and Itumbiara, MVC operates in manufacturing components for thermoset and thermoplastic extrusion, vacuum forming, RTM, infusion, continuous lamination, pultrusion and hot pressing (SMC).

The company focuses on providing optimal solutions and developing

Wind power client – Alstom

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Key Person

Gilmar Lima

Transport client, WFly Volare

Executive Director

cutting edge technology to meet the market demand. A modern development center provides a design center, three-dimensional laboratory prototype, engineering lab materials and four restricted areas, where professionals work together to develop products with full confidentiality and security.

STRATEGIC UNITS MVC covers five important segments: transportation, automotive, agribusiness, construction and wind With solutions in engineering plastics the company has shown steady growth. MVC Executive Director, Gilmar Lima, celebrates: “This diversification provided a growth of over 20% per year. We closed 2014 with

“The biggest challenge is the lack of engineering plastic product, in addition to skilled labor and infrastructure investments” – Executive Director, Gilmar Lima

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Innovation is Core to Our Business

Transforming innovative ideas into products that contribute to our partners’ productivity, efficiency and business sustainability is our major goal. Thus, LORD is proud to be an integral part of MVC's success story since 1997. LORD is focused on continuous improvement in an effort to bring the best and most valuable solutions to our customers’ challenges. MVC is one of the most important companies in the engineered plastics and composites market, and we appreciate our partnership and look forward to collaborating on efficient and effective technologies that further develop the country.

+1 877 ASK LORD | www.lord.com |

@LORDCorporation

BRAZIL

growth to 2013 of 150%. The main reason for the growth is also entering the construction market and wind. “ MVC Building: To suit the construction industry, the unit provides innovative solutions in modular and industrialized building systems for various applications. For example, the Technology Wall System, developed

by MVC, consists of composite panels reinforced with fiberglass and a core reinforced with thermal and acoustic insulation. MVC Building combines high technology with the diversity of architectural and technical projects, enabling the use of construction methods that give priority to speed deployment, design, efficiency, durability, thermal and acoustic comfort, clean work and zero waste.

MVC Extrusion: The unit is responsible for manufacturing plates in thermoplastics such as ABS, ABS and PC, PP and PE. MVC Components: Supplier components for different markets such as panels and sheets for civil construction and transport industry.

MVC Automotive: Having in its portfolio clients such as Mitsubishi, Suzuki, Randon, Volvo, Iveco, CNH, RANDON, and Scania, the automotive

SUPPLIER PROFILE

LORD CORPORATION

LORD Corporation is a diversified technology and manufacturing company developing highly reliable adhesives, coatings, motion management devices, and sensing technologies that significantly reduce risk and improve product performance. Founded in 1924, LORD has worked to provide innovative aerospace, defense, automotive and industrial solutions. With more than 3,000 employees in 26 countries and eight R&D centers worldwide.

Website: www.lord.com

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MVC unit provides solutions for bus segments, trucks, tractors and road implements.

MVC Wind Power: In the wind industry, the company produces all components in composite, with the exception of the blades. Meets the demand of big industry names like Gamesa, Alstom, GE and WEG. Agribusiness client, CNH T8000

THE ENGINEERING OF PLASTICS Market challenges do not prevent the company from continuing to believe that the business differentiation in which MVC operates is what moves and places it as an industry leader. “The biggest challenge is the lack of knowledge about

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engineering plastic, as well as skilled labor and investments in infrastructure,” said Lima. Among the strategies to face these challenges, MVC seeks to participate in all projects and events that enable promotion of all the materials and solutions offered to consumers. “After all, we are a company that prioritizes differentiation, market niches, innovation and, most importantly, the exceptional relationship with our customers and the people,” added the director.

On the other hand, industry trends lead toward a better use of carbon fibers and special acrylic resins, like thermoplastic and polyurethane, for residue and thermoset processes. According to Lima, this ends up generating sustainable and competitive products. “Of all the trends, the one that I believe in the most is the creation of new products with waste composites. We can’t allocate the residue only, we have to create value for it and this is certainly the future for the businesses that will make a difference, “says.

QUALITY AND TECHNOLOGY Safety and quality are managed internally. With a very clear value proposition in differentiation, relationship and innovation, MVC uses simple technology, but very bold for the segment.

Examples include RTM-S, RTM-TS, RTMSKIN and VFC-LIGHT technologies, among others. Lima also reaffirms that investments are consistent. “Our main feature is to create high-performance solutions with investments

“Our goal for the new growth cycle, which will be from 2015 to 2018, is internationalization of MVC and get in 2018 with revenues over US$ 740 million billion” – Executive Director, Gilmar Lima

Automotive client, Pajero-TR4 Mitsubishi

Automotive client, Jimny Suzuki

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MVC

Housing complex RS, Wall System

Day care, Wall System

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for our clients. We invest an average of US $1.8 million a year in new technologies, materials and processes,” states Lima.

Also according to the Director, in the last cycle, 2010-2014, they invested approximately US $15 million in technology, equipment, plant safety, human resources and communication. Lima is optimistic about the future. “Our goal for the new growth cycle, which will be from 2015 to 2018, is internationalization of MVC. For 2018 we aim for over US $740 million in revenues,” she says.

For 18 years, MVC has had a technology alliance with the French, Pôle de L’est Plasturgie (PPE), a global leader in composites technology.

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Company Information INDUSTRY

Plastics HEADQUARTERS

São José dos Pinhais, Paraná - Brazil E S TA B L I S H E D

1989 EMPLOYEES

1600 ANNUAL REVENUE

PPE develops materials for the automotive, aeronautical, marine and military sectors as well as processes and high performance materials to meet the plastics market demand.

“We also have a joint venture with Group Verzatec, a Mexican Stabilt company. The focus of this partnership is to manufacture profiles in composites through pultrusion. “Today StabiltMVC is one of the largest manufacturers of pultruded profiles in Latin America” adds Lima.

For the coming years, MVC plans joint ventures focused on new technology. “The great challenge of MVC is to grow without losing its simplicity and essence,” concludes the director.

US$ 248 million PRODUCTS/ SERVICES

Solutions of engineering plastics in the fields of transport, agribusiness, wind, automotive and construction

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BALDAN

Baldan (Matão - SP) is installed in a modern industrial park of 256 mil m² of wh

T Superintendent Director of Baldan, Celso Antonio Ruiz

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he company’s pioneering has even broken the Brazilian dependence on imported products when, in the 1950s, the Baldan family created the first disc harrow and plows in Brazil. Once Baldan discs began to be included among the best products available on the market, this innovation encouraged the practice of new production methods and techniques.

Today, the company has 120 products in its portfolio--in 2500 different versions--and is headquartered in a modern industrial park of 256,000 m²--65,000 m² of built area--in Matão, São Paulo. Baldan sells throughout the national territory and in a specific area of the external market.

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hich 60 mil m² are built area

COMMERCIAL AREA AND INVESTMENT To serve both the national and overseas markets, the company has two customer service divisions.

The internal market customer service agency is comprised of a team of trained salespeople who provide technical and commercial support to customers throughout Brazil. It also has the support of a telemarketing structure that operates within the company.

Baldan’s main consumer markets abroad are South America and Africa, which are responsible for 20% of the company’s export revenues. The rapidly growing company has demonstrated strength in its structure. “In 2006, at the peak of the agribusiness crisis, which had started in

“In 2006, at the peak of the agribusiness crisis, which had started in 2005, our company annual revenue was R$ 50 million. This year, our annual gross revenue will be R$ 470 million.”

– Superintendent Director of Baldan, Celso Antonio Ruiz

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BALDAN

2005, our company annual revenue was R$ 50 million. This year our annual gross revenue will be R$ 470 million and our EBITDA will be 25%,� the Superintendent Director of Baldan, Celso Antonio Ruiz, says proudly.

However, current market trends include increased foreign competition, acquisitions, mergers and increased product technology. The company’s focus is on the modernization of its industrial park in order to increase its productivity, satisfy its customers, and lower production costs.

PRODUCTS AND MANAGEMENT DEVELOPMENT Combining experience and cutting edge technology, Baldan has been developing products with advanced engineering concepts for soil preparation and different types of crop planting. A market leader in the production of implements for soil preparation and responsible for about

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Technology with welding robot

35% of the market, Baldan also has a line of products aimed at the cultivation of sugarcane and an agricultural platform for corn harvesting.

Supported by professional management, in 2010 Baldan implemented its own manufacturing and production system, called SBM. SBM focuses on meeting customer expectations through the use of the best and most successful methodologies and manufacturing technologies that have been created over the history of world industry. “We are always investing heavily in new production processes, technologically advanced

“We are always investing heavily in new production processes, technologically advanced machines, human resources, and relationships with our customers” – Superintendent Director of Baldan, Celso Antonio Ruiz

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BALDAN

Pumps� motors and �ydrau�ic ��ters for your equipment Gear pump FP 30 series 3 Displacements from 17,28 to 125,66 cm /rev Max. peak pressure up to 325 bar

Return �ine ��ters �F ��� series Nominal flow up to 200 l/min Operating pressure 8 bar

CASAPPA DO BRASIL Ltda Tel. +55 11 2119 1250 infobrasil@casappa.com

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www.casappa.com

CRI - Heavy duty offset disc harro

machines, human resources and relationships with our customers,” explains Ruiz.

The company’s mission is to conquer both the national and international markets with agricultural machinery that offers high standards of performance, contributes to the increase of food production, and ends hunger in both Brazil and worldwide. “The greatest challenge is to increase food production to feed the world.

In order to do this, we have been developing products with the latest technology and partnering with research institutions, such as Embrapa, for example,” Ruiz admits.

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Company Information INDUSTRY

Metallurgy / Agribusiness HEADQUARTERS

Matão, São Paulo Brazil E S TA B L I S H E D

1928 EMPLOYEES

1,600

ow, remote control

PRODUCTS/ SERVICES

To maintain a human resources policy in accordance with the best practices on the market, Baldan is always intensifying its employee training and offering undergraduate scholarships programs; in addition to including its employees in a profit sharing plan since 2008.

“Our professionals have been constantly participating in technology fairs in Brazil and abroad. We have an internal team in accordance with the SESMT and the support of external consultants working to improve the work environment and to reduce or eliminate accident risk and occupational diseases,” concludes Ruiz.

Agricultural machinery and implements MANAGEMENT

Superintendent Director/CEO: Celso Antonio Ruiz Managing Director/ Financial: Eduardo Fernandes Industrial Director: Alexandre Savio Tessi

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