Manufacturing Global - July 2015

J u l y 2 0 15

w w w.manufac turingglobal.com

THE NEW GAME-CHANGER?

TOP 10 Ways To Minimize Downtime LEAN 5 Disruptive Technologies Facing ERP

SPECIAL FEATURES: HAFILAT & CIMENTO BRAVO

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EDITOR’S COMMENT

The Reality Of MANUFACTURING T H I S M O N T H W E L O O K at one of the most exciting

technologies being adopted in manufacturing, but one that has crept up upon many industries somewhat by the back door. The important word in Augmented Reality, or AR, is the second word. Industry is dealing here with the ‘what is?’ of design and production, not the ‘what if?’ though it undoubtedly answers the latter question in a lot of instances. Volkswagen is using it, Bosch is using it and many Fortune 500 companies have realized the benefits and are moving toward implementing augmented reality programs. Find out how AR is becoming a game changer in the manufacturing and industrial space.

Moving on, we look at some other more established disruptive innovations that are at once a challenge and an advantage to each and every manufacturer: the lessons they teach any late adopter is surely, look at what your kids are doing, because you will be following them quicker than you think!

Finally downtime is inevitable since plant has to maintained, so how do we keep it in control and plan for it? We offer a checklist of ten approaches to keeping the lights on.

Enjoy the issue!

Abigail Phillips Associate Editor abigail.phillips@wdmgroup.com 3

Contents

Features

LEAN

TE C H NO L O G Y

6

Augmented reality

Top 10 Ways To Minimise Downtime

4

July 2015

8

5 Disruptive Technologies Facing ERP

18

Company Profiles Middle East 26 Hafilat Industry

AFRICA 40 Egyptian Steel

CANADA 50 Kobay Enstel Limited

Australia 68 A.H. Beard 78 Bombardier Transportation New Generation Rollingstock Project

50

Kobay Enstel Limited

58

ArtiFlex Manufacturing

Brazil 86 Fraldas Capricho

USA

96 Cimento Bravo

58 A rtiFlex Manufacturing

112 Ciplan Planalto S/A 126 Oji PapĂŠis

40

Egyptian Steel

26

68 A.H. Beard

Hafilat Industry

112

Ciplan Planalto S/A

96 Cimento Brav

86

Fraldas Capricho

TECHNOLOGY

THE NEW GAME-CHANGER? How augmented reality is bringing huge benefits to the global manufacturing sector Written by: Bob Meads, CEO of iQagent

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TECHNOLOGY OVER THE LAST year, we have seen new breakthroughs in augmented reality and how it will soon merge our digital lives with our real ones. While this concept is moving in on multiple industries, the industrial and manufacturing environments are going to be a key stakeholder for this technology. Many of us have waited anxiously for high-tech glasses, watches and other wearables finally delivering what they promise. But all this has yet to materialise. The recent withdrawal of Google Glass Augmented reality in action

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July 2015

and the general failure of wearables to meet expectations have influenced public perception of augmented reality and there is now a question of just how it will become valuable.

One area where the technology is already making strides is on the industrial plant floor. When considering how engineers and operators can be more efficient in resolving production downtime issues, there is a huge potential for augmented reality.

Manufacturing operators can directly show plant floor problems to the

AUGMENTED REALITY

engineers, referring to live process values and performance indicators relevant to the process from the local automation system. The engineer can analyse the problem in real time, asking the right questions of the operator in order to resolve the problem. But this is just one example.

We are only seeing the beginning of everything augmented reality can do.

Augmented reality solves your plant floor pain points Turning towards industrial operations, plant managers in the manufacturing and automation field are beginning to see augmented reality as a way to address many plant floor challenges. Solving downtimes issues and improving communications through the plant are two of the main issues but there are many areas for improvement. Here are a few more examples of common plant floor issues, which mobile augmented reality can readily solve.

View contextually relevant machine data Augmented reality can be used to contextually display critical information regarding a machine and

its performance. For example, an augmented reality-enabled app might recognise a piece of equipment via an augmented reality tag, QR code or beacon, and then overlay a live video feed with relevant information about the equipment on the mobile device display. The worker can now see critical process data in context of the equipment on which they are working or repairing. This functionality can be extended easily by providing links to electronic documents relevant to the equipment, such as schematics, manuals, how-to movies, and web-based data entry forms.

Streamline reaction to downtime events When following customary repair or maintenance procedures, manufacturing plant workers often spend time trying to identify the part of the machine that requires their attention. Using augmented reality to visually identify and direct workers to the specific part that requires their attention will be a fundamental use. Production downtime costs are often measured in hundreds or thousands of dollars per minute.

These costs are multiplied when 9

TECHNOLOGY workers are unfamiliar with the equipment and must constantly refer back to documents in order to identify where a specific part is or where adjustment ports are located.

The time to react to a production downtime event can be greatly reduced by implementing a mobile augmented reality solution on the floor.

Manage daily reporting.

With new advancements employees will now be able to change the way they report safety and production issues during daily walk downs. The technology would allow users to

‘Augmented reality can provide visual communication tools to provide users and remote resources with a common, real time or ‘snap shot’ view of the equipment or process” 10

July 2015

“show” these kinds of issues to the maintenance resources rather than trying to explain them in a written report. Augmented reality apps will include features for creating augmented reality-enhanced recordings of plant floor issues, which could include live video or a snapshot, overlaid with relevant process data, audio, and on-screen notes. These recordings will take much less time than manually filling out a form, and be a much more efficient means of communicating a problem to the maintenance or engineering staff who will be tasked with correcting the issue.

Ferrari Augmented Reality Showroom

AUGMENTED REALITY

There are mutiple benefits of AR in various sectors and industries Enhance communication.

Technical resources required to evaluate and efficiently respond to unplanned downtime events are not available in real time.

Augmented reality can provide visual communication tools to provide users and remote resources with a common, real time or “snap shot� view of the equipment or process. It can also provide the ability to show the problem to a remote technician using an augmented video. This alleviates the need for the technician to travel onsite; if travel had been required, he would have arrived with much more

information about the problem.

Augmented reality is becoming a game changer in the manufacturing and industrial space. Workers are going mobile and becoming more connected throughout the plant.

Augmented reality apps can help them speed up the process of their day-to-day responsibilities while enhancing communication with their managers and coworkers. The industry is shifting. While the concept of augmented reality is not a new one, there are now applications available, which can actually be implemented and used in a practical way.

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LE A N

5 FACING ERP

Disruptive Technologies

Manufacturing Global unveils five disruptive technologies that will affect ERP systems and change the way manufacturers do and think about business Writ ten by: ABI GAI L PH I LLI PS

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LEAN WE ARE LIVING in an age of converging disruptive technologies.

These technologies are creating new ways of doing things that are overturning traditional business models, methods and practices.

Those companies that are not prepared for this paradigm shift will find themselves struggling to stay competitive and relevant.

These disruptive technologies have the power to make or break manufacturing companies, but the good news is that those owners and managers that choose to embrace these technological advancements will find themselves miles ahead of the digital curve. Enterprise resource planning (ERP)—once only thought of as a tool for much larger enterprises—is a great place for even small manufacturers to start focusing their efforts. Studies show that many manufacturers are running ERP systems that are decades old, but research shows the average age of an ERP solution in midmarket organisations is about seven years. That means that the vast majority of ERP systems are in great need of a face lift.

As advancements in mobile, social and big data analytics continue to change the way people do business, 14

July 2015

the need for up-to-date ERP systems increases. This is not necessarily a bad thing, and when properly implemented these technologies can not only enable a better and more streamlined way of doing business, but they can also cut costs. In fact, research shows that new, flexible ERP systems can cut operational costs by 30 percent. It is clear that these technological advancements cannot and should not be overlooked.

The following are the top five disruptive technologies that will affect ERP systems and change the way manufacturers do and think about business.

5 D I S R U P T I V E T E C H N O L O G I E S FA C I N G E R P

THE INTERNET OF THINGS (IOT) Machines and devices are expected to be completely integrated within the next few years. This will enable a seamless two-way data flow, resulting in enhanced communication and production efficiency. Automatic endto-end product traceability and detailed insight driven by up to the second information, will allow for better, timelier customer service and improved quality.

This means that manufacturers will not only have access to the data they need to fix problems as they happen, but also prevent future problems.

MOBILE Mobile allows for anytime, anywhere access to your ERP systems.

This presents an opportunity for manufacturers to streamline processes in real time, eliminating gaps as they occur, saving time and money. Because mobile technologies allow employees to stay connected, even when they are not at work, they have been proven to improve customer service and response times, as well as increase productivity and efficiency. These benefits hold true for ERP systems and as mobile platforms continue to evolve with smartwatches and other wearables, there will be an increased need to adopt ERP systems optimised for mobile.

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LEAN

SOCIAL MEDIA 73 percent of Americans and 25 percent of the world population are connected via social media. It is estimated that emerging economies will experience 100 percent year-over-year growth of users connected to social media. This is where your customers are and so it is safe to say this is where you should be too.

Social media allows for greater insight into individuals, driving more collaborative and informed relationships - completely changing the B2B dynamic. Modern ERP systems are equipped with enhanced social media capabilities allowing manufacturers to connect with their customers and know what they are thinking and doing faster and easier than ever before. Some ERP systems have Twitter feeds integrated into the platform and send out automated tweets, helping you to better connect and serve your customers.

CLOUD Reports show that nearly 80 percent of small businesses in USA will be fully adapted to cloud computing by 2020, more than doubling the current rate of 37 percent. Cloud-based ERP solutions provide a cost-effective way to harness other technologies and deploy them without additional capital investment. Because cloud supports more agile capabilities, manufacturers are able to do more with less. All of this contributes to a new way of thinking and doing business, which means that manufacturers that don’t embrace the cloud for their ERP systems will be at a competitive disadvantage.

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5 D I S R U P T I V E T E C H N O L O G I E S FA C I N G E R P

PREDICTIVE AND RESPONSIVE ANALYTICS Many manufacturers currently struggle with managing lots of data, but don’t have much usable information. Advancements in predictive and responsive analytics will help manufacturers gain insights that they can use to proactively identify customer demand trends, financial and sales trends, and warn manufacturers proactively when supplies are running low or when machine maintenance needs to be performed. This will result in new

and improved business processes and streamlined operations that are more efficient and cost effective.

Because updating ERP systems requires careful and extensive planning, it is never too early to start the process. It might one day however, it may be too late. Soon, huge, monolithic ERP systems will be replaced by much smaller and more agile ones and six or 12 month implementations will turn into days and weeks, cutting costs and creating a more customised, more efficient customer experience. Ultimately this will render all manufacturing companies with antiqued systems inadequate. So don’t get caught behind the curve - get ready for ERP systems to finally deliver on their promise.

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TOP 10

Ways To Minimise Downtime A new approach to minimising downtime in highly automated operations Wr i t t en by: AB I G A I L PH I LLI PS

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TOP 10

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Installing high-density automated storage equipment significantly reduces the amount of square footage required to store MRO parts and supplies. The equivalent amount of items held in 120 bays of static shelving can be condensed into two horizontal carousels (66 percent space savings), two vertical carousels (75 percent saving) or a single vertical lift module (85 percent saving).

ENHANCED ERGONOMICS

Every item stored in an automated storage and retrieval system is delivered at the correct ergonomic work height. Called the “Golden Zone”, the unit’s opening is positioned waist-high, eliminating bending to retrieve an item stored low, or stretching to grab an item stored high. The automated storage equipment substantially lessens the chance of injury and absenteeism, while also reducing insurance premiums and claims for worker’s compensation.

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MAXIMUM STORAGE DENSITY

July 2015

T O P 1 0 W AY S T O M I N I M I S E D O W N T I M E

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TRACK AND TRACE ACCOUNTABILITY

If the machine is integrated with inventory management software, authorised operators can be required to first input a softwaretraceable personal login and password. For operations that wish to keep track of shared tools or gear required to service equipment, this additional measure of accountability allows depleted, missing or misplaced items to be quickly tracked back to an individual.

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PARTS PROTECTION

Because automated storage and retrieval machines can be fully enclosed, the supplies, tools and spare parts stored inside are protected from exposure. This maximises the useful life of the items, preventing scrap and waste.

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TOP 10

6

BETTER ORGANISATION

To help maintenance technicians find the items they need even faster, the equipment can be outfitted with partitioned trays or totes for organisation and easy locations of small components, such as screws, nuts and bolts.

5

LOOK FOR ALTERNATIVE SOLUTIONS

For companies that do designate a stor supplies, tools and spare parts, the spa because most operations prefer to alloc for profit-generating purposes, rather th As an alternative, small-scale automa can provide highly dense storage in an fraction of the dollars invested in the lar supports – particularly when considerin Three primary types of automated stora vertical carousels, vertical lift modules ( 22

July 2015

T O P 1 0 W AY S T O M I N I M I S E D O W N T I M E

4

CENTRALISED STORAGE

By implementing an automated storage and retrieval system dedicated to the storage of maintenance supplies, tools and spare parts, an operation can be assured that all items are kept in a centralised, designated location.

Items can be easily found and accessed, minimising search time.

rage room or area for MRO ace is usually small. That’s cate valuable square footage han facilities support. ated storage and retrieval systems extremely compact footprint for a rge-scale automation equipment it ng the costs of operational downtime. age and retrieval systems include: (VLMs) and horizontal carousels.

3

KNOW YOUR COSTS

The shutdown of an automated system, whether schedule for routine preventive maintenance activities or unexpected due to a faulty or defective component that must be replaced is costly.

Careful consideration of the areas of potential cost – labour cost, lost revenue or service costs – and losses from automated system downtime has more companies evaluating alternative solutions to support in-house MRO practices.

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TOP 10

2

SCHEDULE ROUTINE MAINTENANCE

With expanding, multi-milliondollar investments in large-scale automation systems – conveyors, sorters, palletisers, robotics, case erectors and sealers, packaging equipment and more – comes 24

July 2015

substantially greater emphasis on keeping everything running at peak levels of productivity. Ensuring an automated facility’s maintenance and repair operations (MRO) are properly equipped with routine preventive maintenance supplies, tools and critical spare parts is essential to ensuring system uptime.

T O P 1 0 W AY S T O M I N I M I S E D O W N T I M E

1

CONSIDER YOUR SUPPLY CHAIN

Facilities throughout the supply chain are increasingly installing large scale automation process and handling technologies that require readily available routine maintenance supplies and spare parts inventory to avoid costly downtime. Automated systems and technologies, long deployed by manufacturing facilities, are now moving further into the supply chain to support distribution and fulfilment operations.

Investment in these systems shows no signs of slowing.

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HAFILAT: Under The Bonnet Of A Regional Powerhouse

The UAE-based bus manufacturer has driven world class production methods and is capitalizing on this through a substantial tactical expansion Written by: Nye Longman Produced by: Mark Atkinson

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H A F I L AT I N D U S T R Y

H

afilat Industry maintains its position as a leading bus manufacturer in the Middle East through its unfaltering commitment to new technology and ideas; with a turnover last year of just over $100 million, the company certainly has a lot to be confident about.

Shrugging off complacency, Hafilat is capitalizing on its strategic position with several major investments, maintaining its core operational formula and crucial partnership with international partners.

Operations Hafilat’s factory in Mussafah, Abu Dhabi has the capacity to produce up to 300 buses annually; products from this facility have been approved by all the major Transportation Authorities in the region. Hafilats’ factory is equipped to build on

Hafilat to successfully win a bid to supply Cairo’s Transport Authority with 300 buses as part of an initiative to reduce congestion in Egypt’s capital

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July 2015

M A N U FA C T U R I N G

Corporate video for Hafilat Industry

top of major chassis brands, including Iveco, MAN, Mercedes Benz, Scania and Volvo.

CEO Iyad Al Ansari highlighted that modern principles underpinned the entire manufacturing operation, he said: “At Hafilat we follow the world-class operational standards of our partner, Volgren Australia. Through our ongoing commitment to our ISO 9001 certification, we use Kaizan principles to run an efficient factory.”

It is this reputation that enabled Hafilat to successfully win a bid to supply Cairo’s Transport Authority with 300 buses as part of an initiative to reduce congestion in Egypt’s capital; it has been estimated that upwards of 600,000 people could use these services annually.

Alongside manufacturing, the facility also

ISO 9001 Hafilat uses the Kaizan principles in its commitment to run an ISO certified efficient factory

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• Over 60 years experience of producing buses • First company in China as the partner of MAN • Over 200000 units bus running on the different street around the world; • Products powered by Mercedes Benz power train, MAN and Cummins

www.autohuanghai.com hhbus.sales@sgautomotive.com

Lead the tre create cente

Huanghai bus...hig

end of The Times, ennial SG.

gh quality to the world

H A F I L AT I N D U S T R Y

“The flexibility of our facility really sets us apart; because we don’t mass produce and don’t depend on an economy of scale, we can service the specific needs of a customer”

Finance Awareness bus

Ambulance bus

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contains the company’s Customisation and Refurbishment divisions, which can process an average of roughly 250 vehicles annually. Al Ansari explained that the Customization division engaged in some interesting bus conversions, using its bus designs as a basis for an ambulance, a library, a bank, and even a courthouse.

Al Ansari explained one of the most interesting applications of his company’s capabilities: “We are engaged in upgrading taxis in Abu Dhabi to look like traditional London black cabs.

We were awarded the contract to support the Abu Dhabi Department of Transport’s pilot project to convert 300 vehicles.”

M A N U FA C T U R I N G

Competitive Advantage Al Ansari himself asked: “Why is there only one Bus Company like us in the whole of the GCC?” The answers which uncover Hafilat’s competitive advantage extend far beyond the simple fact that they are the only manufacturer in the region to use aluminum.

He noted the crucial importance that partnerships have played in the company: “Typically it is difficult to get a license to do what we do in the Middle East but through our partnership with international suppliers we have had all the experience and professional contacts on hand.” Not only has this partnership Finance Awareness bus

Judicial bus

Ambulance bus

Judicial bus

Iyad Al Ansari, CEO at Hafilat Industry

w w w. h a f i l a t . a e

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H A F I L AT I N D U S T R Y

Efficient and Reliable on the Road The Middle East Drives With Voith DIWA Voith has fitted over 10,000 city buses in the Middle East with the DIWA automatic transmission. And the number keeps growing continuously.DIWA means economy as a result of superior technology. DIWA automatic transmissions are ideal for applications in all city and interurban buses.

Our keys to performance: • Lower fuel consumption • Enjoy local service in the Middle East across the entire service life • Maximum driving safety and comfort for passengers and drivers • Maximum vehicle availability and long service life • Low maintenance costs • Lower noise and CO emissions 2 • Efficient retarder www.voith.com/middleeast

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July 2015

H A F I L AT I N D U S T R Y

M A N U FA C T U R I N G

effectively enabled Hafilat to set up in a challenging market, it has also given the company access to world-leading bus chassis designs.

Furthermore, perhaps in recognition of its own uniqueness in the area, Hafilat is keen to explore new niches in search of new growth and opportunities to deliver quality to its company. There was a marked absence of VIP bus manufacturers in the region and demand was particularly high due to cultural reasons; Hafilat had the foresight to see that, combined, these factors presented the company with an opportunity to: “Find a real niche. Markets such as Europe provide a lot for VIPs but not much in the way of buses; customers find ours no less comfy than a Rolls Royce or a Jaguar.”

Another aspect of the business that enables

SUPPLIER PROFILE

Bespoke interior for a VIP bus

VOITH MIDDLE EAST FZE

Voith Turbo, a group division of Voith GmbH, is one of the leading suppliers of technologies and services in the transport and automotive market. We develop reliable, resource-sparing, low-emission products and therefore make an important contribution to safety, efficiency and climate-friendliness.

Voith Middle East FZE – one of the company’s global „Centers of Competence“ - supports and services its customers within Middle East & Africa region with highly trained professional sales and service engineers.

Aftermarket services, such as health checks & overhauling, monitoring DIWA transmissions via SmartNet, retrofits & modernizations are conducted at Voith’s state-of-the-art workshop located in Technopark-Jebel Ali, Dubai.

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The Leading Transmission Around The Corner

And Around The World All around the world, fleets, cities and passengers rely on Allison Automatics to safely and reliably keep their buses on the road.

Our proven reliability has made us the global leader in bus transmission technology. Allison has the widest selection of automatic transmission models for buses and is offered by more bus manufacturers around the world than anyone else. Allison fully automatic transmissions deliver smooth operation, lower cost of ownership and thanks to FuelSense® technology, improved fuel economy.

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Designing and building first class platform lift devices and SST marine equipment since 1997

www.tenderlift.com Tel: +49 (0) 251 70 39 79 07 Fax: +49 (0) 251 70 39 79 06 E-mail: info@h-btechnics.com

M A N U FA C T U R I N G

The build stages of the Hafilat Industry’s Grenda Buses

it to successfully compete is its bespoke manufacturing process; Al Ansari said: “The flexibility of our facility really sets us apart; because we don’t mass produce and don’t depend on an economy of scale, we can service the specific needs of a customer. We can even alter buses to the specific requirements of the client; we have a high customization capability that isn’t available from other competitors” Hafilat has also taken serious steps towards reducing its impact on the environment and is working towards being certified with the relevant ISO accreditations. The company is actively adapting its bus designs in order to reach this goal.

Perhaps the best example of this is the

“Building a business centered on the niche interests of a variety of important clients has given the company a watertight base from which to expand these capabilities even further” w w w. h a f i l a t . a e

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H A F I L AT I N D U S T R Y

Completed fleet of Hafilat Industry’s Grenda Buses

250

Hafilat’s factory in Mussafah, Abu Dhabi has the capacity to produce up to 300 buses annually

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July 2015

use of lightweight materials; aside from pioneering lightweight aluminium chassis, the company also incorporates polygraphites, ABS and acrylics into its new buses. The net effect of this is that the vehicles are not only lighter and easier to manoeuvre, but also saves a significant amount of energy.

Furthermore, Hafilat has left no stone unturned in its search for sustainability which is evidenced by its use of long lasting LED bus lights, in addition to Tyre Safe tyre technology, which endows its vehicles with a safe ‘run on flat’ capability, reducing the incidence of breakdown callouts and stoppage time. The

M A N U FA C T U R I N G

company has even begun to roll out pneumatic tools in order to reduce its power demand, which shows that no measure is too small if it results in savings and increased efficiency.

Company Information INDUSTRY

Automotive

Expansion Instead of staying put in its comfortable position as a currently region-leading bus manufacturer, Hafilat has taken responsibility for its own future and is making significant investments to this end.

Al Ansari said: “Our first project is expanding our line in Kuwait as part of a joint venture; we will be spending roughly $20 million.”

He added: “The second is building a new hangar to extend our capabilities in Abu Dhabi, which will be used for fatigue testing. The center will be equipped with latest vibration monitoring and dynamics equipment that can test everything from suspension, brakes and vibration; this will come to about $6.5 million.”

In many ways Hafilat has proven that what seems nigh on in possible can, in fact, be achieved with the right strategy. Building a business centered on the niche interests of a variety of important clients has given the company a watertight base from which to expand these capabilities even further. What is clear from its past, present and future is that, as long as the highest attention is paid to meeting the often oscillating needs of the customer, the business will be sure to succeed.

HEADQUARTERS

Abu Dhabi FOUNDED

2006 EMPLOYEES

+245 REVENUE

$100 million (2014) PRODUCTS/ SERVICES

Bus Manufacturing; bus repair; bus conversions

w w w. h a f i l a t . a e

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AGAINST THE ODDS: EGYPTIAN STEEL’S MEGAPROJECTS

The award-winning steel manufacturer is pioneering competitiveness, sustainability and social improvements on a truly impressive scale Written by: Nye Longman Produced by: Richard Deane 41

EGYPTIAN STEEL

CEO Ahmed Abou Hashima

E

gyptian Steel has carved a trailblazing path through Egypt’s steel industry since its foundation 2010. The company has invested over $1 billion over the past 2 years, chiefly on constructing two massive state of the art steel megaprojects, but also on developing exemplary business operations, environmentally friendly practices and CSR standards. The company is confident that its actions will contribute to a successful Initial Public Offering (IPO) in the next five years.

The company has invested $1 billion over the past two years 42

July 2015

Operations Egyptian Steel’s operations are divided between its subsidiaries, which comprise National Port Said Steel (NPSS), IIC for Steel Plants Management, and Egyptian Steel for Building

July 2015

AFRICA

Key Personnel

Ahmed Abou Hashima CEO

“Egyptian Steel has carved a trailblazing path“

Materials. Alongside a portfolio of capabilities catering for the steel industry, the company also has the capacity to produce a variety of building materials, particularly cement (an avenue which the company is actively exploring.)

The business was founded at one of the most turbulent times in Egypt’s history: the January Revolution of 2011. However, CEO Ahmed Abou Hashima’s faith in his abilities and the resilience of the country paid off, he said: “It was a calculated risk, but my faith in Egypt, its people, and that we always come up stronger than before made me sure that this was a temporary phase and that eventually taking this risk would pay off.

Fortunately, I was right.”

The company is seeking to expand its share of the Egyptian Steel market and has

Ahmed Abou Hashima is CEO of the Cairobased Egyptian Steel, which he co-founded in 2010. A self-made global entrepreneur, Mr. Abou Hashima has worked in the steel industry since 1996.

Named one of the World’s 100 Most Powerful Arabs

by Arabian Business, Mr. Abou Hashima has been the recipient of CEO Middle East’s Young CEO Award and Arabian Business’ Best Visionary awards. He was the first Egyptian to receive CEO Middle East’s Young CEO of the Year Award.

He’s also the recipient of Executive of the Year Award –Manufacturing Industry at Stevie’s International Business Awards in Paris, October 2014, in addition to an honorary Golden Award in the same ceremony as “Rising Businessman of the Year”.

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EGYPTIAN STEEL

“Each team is always updated about developments in its field and submits reports on what improvements are needed; teams act as a part of a whole, which in the end is developed for competition on an international level.”

– Ahmed Abou Hashima, CEO

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invested heavily in doing so, Hashima said: “The company forecasts total production to soon represent 20 percent of Egypt’s market share.” No small feat for a company with less than a decade of experience under its belt.

Its two megaprojects, which are set to become fully operational in 2017, not only indicate a business willing to invest in the long term but also one that is not afraid of making a large scale commitment to the prosperity of the company, its employees, and Egypt.

The two facilities will each produce 830,000 tonnes of steel annually which will put the company well on its way to achieving its target market share. Hashima noted that constructions of this size required significant capital investment to get off the ground, he said: “We paid approximately 60 million dollars just to secure

AFRICA

“The company forecasts total production to soon represent 20 percent of Egypt’s market share.” energy flow to the plants.”

The expansion is set to make the number of employees reach 6,000 in Egyptian Steel’s books, which illustrates that the company is confident in its abilities to effectively train, manage and deploy its varied workforce in a timely and cost-effective manner.

At the heart of its operations lies the principle of continuous improvement, which Abou Hashima summed up by saying: “Each team is always updated about developments in its field and submits reports on what improvements are needed; teams act as a part of a whole, which in the end is developed for competition on an international level.”

Its remarkable progress was recently recognised, when it was awarded “Rising Star”

830,000

Tonnes of steel produced annually by each of the two facilities

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SESCOTRANS 50 Years Of Experience FOR DEVELOPED LOGISTICS S.A.E

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EGYPTIAN STEEL

AFRICA

status at the Platt’s Global Metal Awards.

Talent Management Since its inception, Egyptian Steel’s workforce has grown exponentially yet Abou Hashima and his management team still have the time, resources and willpower to ensure that each employee is not simply loyal to the company and its vision, but also a fully-rounded professional.

He said: “We choose the best calibre people and work on developing them, implementing the relevant corporate governance so that each person has a solid idea of their career path and what is expected of them to achieve this; we all work together as one big family.”

Backing up its close-knit, skill-centred approach to employee development is the company’s strong HR team, backed up by a philosophy committed to what can be achieved in the future; this is exemplified by the large number of varied graduate internships offered by Egyptian Steel.

Sustainability Developing sustainable practices will always remain a challenge in the steel and building materials industries, but this has not hindered the company and has, in fact, become a profitable pursuit. Abou Hashima said: “The technologies we use depend on constant charging of scrap in electric arc furnaces without hatch opening, which secures shortened melting time, saving energy while controlling harmful emissions, and

Receiving the Platts Global Metals Awards

‘Its remarkable progress was recently recognised, when it was awarded with ‘Rising Star’ status at the Platt’s Global Metal Awards’

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EGYPTIAN STEEL

“The production process does not consume as much energy as our competitors” limiting strain on the national power grid.”

The competitive edge that companies are gaining from the adaptation of efficient technologies is becoming harder to ignore, Abou Hashima agreed: “This resulted in having a price competitive edge for our products, since the production process does not consume as much energy as our competitors; our plants do not negatively affect the communities they operate in.”

At the heart of its operations lies the principle of continuous improvement

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July 2015

Social Responsibility Abou Hashima summed up his business’s attitude to social responsibility: “I believe that the private sector has a major role in developing and

AFRICA

enhancing the living conditions of the people.

The government will not be able to address all problems on its own. At Egyptian Steel our CSR program is one of our top priorities.”

This commitment has already been put into practice at the most trying of times in the country’s recent history; during one of the coldest winters on record, the company was responsible for the distribution of 20,000 blankets.

Egyptian Steel’s commitment to helping the less fortunate has even taken priority over other aspects of the business, Abou Hashima said: “In 2014, we cancelled both our advertising and marketing campaigns and directed all the funds toward revamping Egypt’s 20 poorest villages. The living conditions in these villages were inhumane; they had no clean water or electricity. We wanted to ensure that these people lived in a human environment.”

Its CSR activities have not gone unrecognised and have received many awards, notably the silver ‘CSR Program of the Year’ award from the 2014 Stevie Awards in Paris. This accolade is much coveted and is from an awarding body that seeks to “honour and generate public recognition of the achievements and positive contributions of organisations and working professionals worldwide.”

The next half of Egyptian Steel’s first decade is set to be just as exciting as the first half: in that time its megaprojects will operate at full capacity; its first cement plant could also see the first bags roll off the production line, and the company could very well be floated on the Egyptian Stock Exchange.

Company Information INDUSTRY

Building Materials HEADQUARTERS

Cairo, Egypt FOUNDED

2010 EMPLOYEES

Expected to reach 6,000 REVENUE

Not disclosed PRODUCTS/ SERVICES

Steel Production

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Kobay Enstel Limited

Kobay Enstel Limited: Creating value through excellence in innovation

Based in Ontario, the automotive manufacturing company is expanding its footprint into North America by supporting the growth of its Japanese Tier 1 customers Written by: Stephanie C. Ocano Produced by: Sean Bakke

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Management pic

“Our Canadian roots will always be our foundation.� — Gavin Galansky, President Located in Scarborough, Ontario lies a quality manufacturer of automotive stampings and sub assemblies that has come to be known for its specialization in the manufacturing of intricate, progressive die stampings, mig welded sub-assemblies, seating 52

July 2015

assemblies and tube bending.

Founded in July 2006 after the merger between Kobay Tool & Stampings and Enstel Manufacturing, Kobay Enstel Limited has since risen to constantly challenge the standard operating procedures of the industry. The company prides itself on operating under lean manufacturing practices, building a strong team and

CANADA

Plant

finding innovative, cost-efficient manufacturing techniques.

“Our company is all about the strength of our people,” said President Gavin Galansky in a recent interview.

“We want to show that we are adding value to our customers by developing innovative processes that reduce cost and enhance the quality of the product,” said Galansky.

A world-class team Kobay Enstel’s design team is a group of dedicated professionals with over 40 years of combined

experience. Constantly striving to exceed customer expectations, each associate at the company is in constant communication with one another.

With customer satisfaction being a top priority, Kobay Enstel follows the Japanese model of Q.C.D.D.M. (Quality, Cost, Delivery, Development, and Management) in its production processes.

“Each function of the organization has specific action plans that all go into the Q.C.D.D.M. model,” said Galansky. “Everything from developing our processes further, to becoming more efficient, to driving w w w. k o b a y e n s t e l . c o m

53

K O B AY E N S T E L L I M I T E D out costs from the system—the whole way the company is run— follows the Q.C.D.D.M. model, and everyone on the floor understands it.”

In terms of management, Kobay Enstel prides itself on developing its people. In doing so, it allows the company to take on projects that most others would shy away from due to their challenging engineering aspects.

Kobay Enstel recently secured contracts to complete seating assemblies on the next model of the Honda Civic in 2016, and 17-model Honda CR-V as well a 3rd row seating assembly for a Volkswagen SUV that will be built in Chattanooga, Tennessee. The contract is for its Tier I customers.

CANADA

This means two things for Kobay Enstel.

“For one, it secures our future,” said Galansky. “And the second half of the equation is that we’re being recognized and rewarded, allowing us to venture into greater things.”

Due to the scope of these projects, Kobay Enstel expanded its current facility by adding roughly 21,000 sq. ft. Brand new state-ofthe-art robotic welding cells are being installed alongside state-ofthe-art hydraulic tube benders.

According to Galansky, a second plant will also be opened in Alabama, U.S. around February 2016 to begin Kobay Enstel’s expansion efforts into the U.S. This plant will be around 35,000 sq. ft.

Stamping plant w w w. k o b a y e n s t e l . c o m

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K O B AY E N S T E L L I M I T E D

Team Kobay

and will start production in 2016 to support the Honda Odyssey, Honda Ridgeline platforms and later in the year the launch of the new VW SUV in Chattanooga , TN. “The primary reason we’re expanding is to support our customers,” said Galansky. “There is a lot of automotive activity in the southeast U.S. and our goal is to grow the plant in Alabama with our Japanese and North American customers.”

Further expansion efforts Upon the initial entrance into the U.S. with a plant in Alabama, Kobay Enstel wishes to grow its North American footprint by opening a plant in Mexico and Indiana as well.

In five to 10 years, the company’s plans are to enter Mexico and 56

July 2015

establish a plant there, as well.

“Honda has a big plant in Celaya, Mexico and for the next model of Honda Civic we’d like to be able to support that,” said Galansky. “[In the next five years] we’d like to grow our footprint, secure more business and grow with our Japanese customers, particularly on vehicles like, the Honda Ridgeline and the Honda Odyssey—which are all made in Alabama,” added Galansky.

Kobay Enstel would also like to develop its process technology specifically with laser welding and tube bending.

“Kobay Enstel, in the last few years, has shifted away from just being a stamping company as stamping is becoming more and more of a commodity,” Galansky

CANADA

said. “We’re moving more into welding and sub assembly—more complex sub assembly and tube bending.”

Company Information INDUSTRY

Looking ahead “It’s a very exciting time for Kobay Enstel,” exclaimed Galansky.

With the North American automotive market growing, Galansky sees a lot of potential in the growth of the company, as well.

“We’d like to grow our business to become the go-to as the number one Tier I and a half,” said Galansky. “We’re somewhere in between Tier I and Tier II—we have a little bit of a Tier I aspect to us in the assemblies that we’re doing, but we like operating in the Tier II space.”

“By not going full Tier I, we are able to keep our costs and overhead very competitive,” he continued.

Despite the growth that Kobay Enstel is looking forward to in the US and Mexico, it will always remain true to its Canadian roots.

“We will always be a Canadian company,” Galansky concluded. “We want to always support our Canadian customers and so there will always be a plant here.”

Manufacturing HEADQUARTERS

125 Nashdene Rd., Unit 5 Toronto, Ontario, Canada FOUNDED

2006 EMPLOYEES

180 REVENUE

$50 M

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ArtiFlex Manufacturing

ArtiFlex invests in growth Meeting the demands of the evolving automotive industry, ArtiFlex is investing in growth and improvement for its facilities and its employees Written by: Sasha Orman Produced by: Tom Venturo

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One of ArtiFlex’s many robotic adhesive application cells applies adhesive to the inner hood panel prior to assembly.

S

ince 2011, ArtiFlex has been hard at work building a strong reputation as a leading manufacturer in a niche field of the automotive industry.

While Tier One tooling and stamping companies specialize in high volume output, ArtiFlex has concentrated on low volume specialty production— manufacturing for out-of-production past model vehicles and low volume derivative models, creating low volume parts to be shipped to dealers and repair shops worldwide. As the automotive and manufacturing industries evolve, ArtiFlex is working to build ever 60

July 2015

better and more efficient processes to ensure that its clients are in good hands.

Automotive progress as a driving force for high-tech upgrades From Nissan to BMW to the Detroit Three, some of the biggest names in automotive manufacturing depend on ArtiFlex for their lower volume parts. So when the automotive industry starts to introduce newer designs and materials like high strength steel into its designs, it’s up to ArtiFlex to keep pace and anticipate the needs of its

USA

ArtiFlex has a 5-axis laser used for laser blanking, trimming, or piercing for production or die tryout.

consumers. According to Steve Delmoro, Director of Business Development at ArtiFlex, this evolution in auto design has led to significant capital investments over the past year.

“From the automotive stamping standpoint—which is our primary production business, in large automotive body panels like fenders, hoods, body sides—we’re seeing a strengthening of the automotive market from where we were five years ago until now, and additionally we’re also seeing a need for more updated equipment,” says Delmoro.

ArtiFlex has satisfied this need for

more updated equipment with a $10 million strategic capital investment, installing three large new high tonnage hydraulic stamping presses to replace outdated existing draw presses. At this time, one of these new presses is already installed and in operation—a second press is halfway through installation, and the third will be commissioned in the fourth quarter of 2015.

“The investment is in response to our core customers,” Delmoro explains. “The major auto makers are our largest customers. They are growing—and we are growing with them. Some of their designs w w w. A r t i F l e x m f g . c o m

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for new tooling would not fit with our existing equipment. We were running into areas where we were not able to manage tonnage required. So these presses that we’re installing run up to 2,500 tons, which is quite a bit more than the 1,000 ton presses that they’re replacing.”

Investing in automation Several strategic investments are currently in the works at ArtiFlex. In addition to its work on new high powered presses, the company has also invested in increasing its incorporation of automated processes in its presses and welded assembly areas. According to Delmoro, the reasons for investing more heavily in automation are threefold.

“First and foremost it would be quality,” he says,

SUPPLIER PROFILE

Steve Delmoro, Director of Business Development

MACRODYNE TECHNOLOGIES INC.

Macrodyne Technologies Inc. is a manufacturer of heavy duty, high quality hydraulic presses up to 20,000 tons, automated press lines and die/mold handling equipment for dies/molds weighing in excess of 100 tons.

Macrodyne supplies hydraulic presses and press lines for general metalforming applications, hot stamping, deep draw, forging, extrusion, coining, die spotting, hydroforming, elastoforming and many more.

Precision, functionality and repeatable performance are key variables our engineers consider during the design phase of every project. Our success is evidenced by an extensive list of customers who continue to purchase Macrodyne Hydraulic Presses and Die/Mold Handling Equipment on a repeat basis.

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Proud to be a Supplier to Artif lex Manufacturing.

Quality, Dependable Service, Value

Multi-Cut Blanking Line

Slitting

Banding

Finished Goods

Riverview Steel is an acknowledged leader in surface critical blanking and slitting services to the automotive industry. Operating from a strategically located state-of-the-art facility we are able to provide same day service to clients across Southwestern Ontario and the Midwestern U.S.A. Our dedicated and productive employees deploy a professional and full service approach to accommodating the most stringent requirements of our clients. As an ISO 9001:2008 certified steel service center our reputation for high quality and dependable service is synonymous with our name. We congratulate Artiflex Manufacturing for their many successes throughout the years and look forward to extending our longstanding relationship for many years to come.

8165 Anchor Drive

Windsor, Ontario N8N 5B7

info@riverviewsteel.com

Phone: 519.979.8255 Fax: 519.979.5799

www.riverviewsteel.com ISO 9001:2008 Certified

A R T I F L E X M A N U FA C T U R I N G

USA

noting that the repeatability aspect of automation is a strong way to inspire greater confidence in consistency and quality levels for clients.

ArtiFlex has also been greatly inspired by LEAN manufacturing strategies and the challenge of reducing costs while increasing throughput and optimizing operations for maximum yields.

There is a strong safety aspect to this decision as well. Delmoro explains that much of its automation works to keep its employees safe from the more demanding facets of manufacturing work.

“We do work with a lot of sharp metal objects and heavy parts,” he says. “When we have fewer and fewer operations where the employee is exposed to these areas, there are fewer and fewer chances that the employee could get accidentally hurt. Not to mention our aging population—the repetitiveness of picking up a 40-lb part multiple times a minute is not something that’s conducive to their long term health.” Through automation, these workers are able to stay productive and safe in the long run.

Investing in people That aging population that Delmoro mentioned is an industry-wide issue that has been weighing heavily on the ArtiFlex team. “We’re no different than most others in the industry right now, in that finding the right skilled trade is a challenge,” says Delmoro, noting that skilled workers trained in tooling and die areas are the scarcest. “We tend to see a demographic that’s aging in that skill set,

This new draw press is set up to run large, complex dies ranging up to 180” in length and requiring forming tonnage up to 2000 tons and cushion tonnage up to 500 tons.

An ArtiFlex Tool & Die journeyman performs maintenance on a past model service die

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An ArtiFlex tool and die maker drills on a new die that was designed and built by ArtiFlex.

and not replacing itself.”

In addition to its increased interest in automation, ArtiFlex has also implemented several human resources programs in order to attract and train skilled workers in the fields of both tooling and technical engineering as automation ramps up. “We’ve got older presses, 66

July 2015

and we’re moving to new ones. It takes a little different mindset, a little different training,” says Delmoro.

“We are embarking on aggressive education and a campaign to bring in new talent as we continue to grow both our business size in terms of both revenue and our head count.”

This campaign consists of work

USA

with local colleges and community centers, along with the North Central Workforce Alliance of Ohio and the Wayne County Business Advisory Council. Most important of all is ArtiFlex’s own robust in-house journeyman apprenticeship program. “I think our strategy has to be: you’re not going to necessarily hire all on the outside, so you had better be training in house to meet the demand that we see moving forward,” says Delmoro. “It’s only going to get more and more critical as the population ages and fewer young people go into these skilled trade areas. We can’t train people fast enough, and that’s what we’re working after—that, and to find young people that have a desire to go into those skills.”

Company Information INDUSTRY

Manufacturing HEADQUARTERS

1425 E. Bowman Street Wooster, Ohio, USA, 44691 FOUNDED

2011 EMPLOYEES

Only the beginning With so many projects underway, it may seem like ArtiFlex has its hands full. But with its niche low volume specialization, multitasking is one of the company’s greatest strengths. As Delmoro explains, these investments are only the beginning of growth for ArtiFlex.

“I don’t believe this is the end of our capacity and our capital investment—I think this is an initial phase,” says Delmoro. “I think there will possibly be more presses and other operational investments, whether it’s in robotics, lasers or even potentially even facility upgrades. I believe there is a continued appetite from our customers to say, ‘how do we allow our good suppliers to continue to grow?’”

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A.H. Beard:

A.H. Beard Puts Family First

A family-owned company since 1899, A.H. Beard prides its longevity, innovation and a family-like working environment Written by: Eric Harding Produced by: Rob Benson

self in quality, t.

A.H. BEARD

Garry and Allyn Beard

What started off as a bet between two brothers nearly 100 years ago has transformed into one of the most prestigious, successful and well-respected bedding companies throughout Australia.

A fourth generation family business since it was established back in 1899, and now moving to it’s fifth generation, A.H. Beard has been Australia and New Zealand’s premier manufacturer of quality mattresses and bedding since 1899.

After the original factory burned to the ground in 1926, Albert Henry Beard chose to continue making beds, while his brother made a bet 70

July 2015

that he couldn’t produce seven beds in a week.

“It became a challenge between our grandfather and his brother,” said Allyn Beard, director at A.H. Beard and grandson of Albert Henry Beard. “It’s really ironic because now we make between 6,000 and 10,000 beds in a week during peak production. So the business has grown both in volume and average unit value quite dramatically over the years.”

Family values The active involvement of the Beard family with its retail

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John Howard visit 2013

customers facilitates great communication, and because of that, they’re better equipped to understand the needs of the consumer. As a company that has been a proud licensee of the Australia Made logo for many years, people know what they’re getting when purchasing a bed from A.H. Beard.

“It’s about longevity,” Beard said.

“When you deal with somebody for a long period of time, you get to understand what they look for in a product and what pushes their buttons. Every retail customer is different, so we are able to

customise our offering to maximise our relationship with each retail customer. We become more meaningful to them than the other guys, who are selling the same product in every shop in town.”

But nearly just as important as a relationship with their customers is the rapport built up with their suppliers. Due to A.H. Beard’s long-term existence in the industry, it has been able to build a strong association with its suppliers going back many, many years.

This strong relationship has helped A.H. Beard stay a step ahead in innovation. w w w. a h b e a r d . c o m /

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Specialized in the manufacturing of Mattress Textiles, Bekaert Textiles is active worldwide with sales and dedicated production sites in 9 separate locations. Bekaert Textiles is recognized as the quality, service and innovation leader in its industry with its headquarters located in Waregem (Belgium).

Our products cover tens of thousands of new beds and mattresses every day, from New York to Sydney, from Helsinki to Cape Town. The company and its high-quality products benefit from increasing demand for comfort and growing environmental awareness. To complement our product line, in Australia we are active in the upholstery, window coverings and health care fabrics for the local and export market.

Bekaert Textiles - Australia 195 Abbotts Road Dandenong South, VIC 3175 Australia T +61 3 9799 1202 F +61 3 97991019

BEKAERTTEXTILES.COM

A.H. BEARD “We rely on them to bring new products and new materials that assist in making our products better, more competitive and more marketable,” said Beard. “Hopefully if we’re a meaningful partner to them, they’ll come to us first, and that’s what usually happens”.

“We have accessibility, so if they discover something that will be beneficial to our business, they’ll call and speak to us directly. That allows us to be an innovator in the market.”

Production When it comes to the actual beds, A.H. Beard prides itself on having

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a wide variety. Not every mattress is right for every person, but that’s the beauty of the company—it aims to provide different products for different consumers.

Each individual has a different set of needs in order to reach maximum comfort and get the best night’s sleep possible.

“Beds are quite objective,” said Beard. “What’s right for one person could be wrong for the next. There is no one bed that will satisfy everybody. There are different weight distributions for different people, and you’ve got different habitual sleeping positions, plus, not

SUPPLIER PROFILE Employees: Global ≥ 1,600 - Australia 110 Established: Belgium 1892 - Australia 1955 The Bekaert family started the company in Flanders, Belgium in 1892, specializing in the manufacture of mattress textiles. Bekaert Textiles, still has its headquarters in the Flanders.

Bekaert Textiles recently became part of “Franz Haniel & Cie. GmbH” a traditional – steeped German family-equity company, founded in 1756, who will support our ambitious global growth plans. Global growth is assisted through population growth in the emerging regions and in the more mature markets, the company and its high-quality products benefit from an increasing demand for comfort enhancing performance textiles and the growing environmental awareness. The rising standard of living in these regions is a particularly important driver of growth.

Management: Decorative Fabrics, (Mark Lennox), Deco Sales Manager / Mattress ticking fabrics Manager (Bart Dehaerne), National Sales Mangers / General (Luc Deleu), Managing Director Website: bekaerttextiles.com

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Over 50 years of experience and in its third generation of family involvement, we are committed to setting the standards in quality and service.

- PROUD PARTNER WITH A.H. BEARD -

Founded in 1963, Schaerf Woodworking Industry is a long established Australian family owned and operated business. We are the leading supplier of legs, castors, glides and accessories to the bedding industry.

We manufacture a range of world-class products to satisfy the complete needs of bedding and furniture manufacturers. Every product in our portfolio is carefully designed, engineered and manufactured to exacting standards. Our dynamic team is passionate and knowledgeable about our products and the industry, providing high levels of service throughout Australia.

The Schaerf trade mark stands for excellence.

57 Bond Street, Ringwood VIC 3134 Email: info@schaerfwoodworking.com.au Web: www.schaerfwoodworking.com.au

Call: +61 3 9879 5312

Richdale Plastics RIGHT FIRST TIME EVERY TIME!

A solely Australian owned and operated plastics company, with over 20 years experience in supplying the agricultural, packaging and food manufacturing sectors. Our professional team delivers high quality products, service and the latest in plastics technology.

www.richdaleplastics.com.au Ph: +61 3 9583 6311 Fax: +61 3 9585 1711 Email: info@richdaleplastics.com.au

A.H. BEARD to mention, customers with different medical requirements.”

Whether it’s a King Koil, Domino, Nature’s Rest, Health Rest, or iComfort, there are a wide range of foam and innerspring systems and constructions that appeal to every situation. Beard shared his own personal experience of having undergone a spinal fusion operation, and said that his preference was a mattress with talalay latex inside, however he acknowledged that what’s right for him could be wrong for the next person.

Part of providing the right mattress to the customer is being aware of advances in technology.

“We’re always trying to bring new trends and new technology to the market first,” Beard said. “There’s also quite a diverse range of price as well, just as there is in cars. Just like there are different cars for different segments of the market, there are different beds for different segments of the bedding market as well.”

The company has implemented its Six Week Sleep Challenge, which is about educating people who may be sleep deprived or are not getting quite as good a night’s

AUSTRALIA

sleep as they could be. Those who participate can log in on their smartphone or computer, and input their sleep details from each night.

Every week, A.H. Beard checks in on their progress and gives them new sleeping tips. Participants are currently in the third round of the sleep challenge, with the next round coming in October.

“There’s a vast shortage of knowledge about sleep, but people’s awareness of the importance of sleep is growing,” Beard said. “We believe sleep is equally important as diet and exercise. If you’re not getting quality sleep, it will obviously affect your well-being, as well as your performance at work and in sports. It can also lead to weight gain and obesity.”

The sleep challenge isn’t just for people who purchase beds from A.H. Beard. Anyone can sign up, and it’s completely free. Beard said the company has had tremendous feedback from those who have participated, as they’ve played a role in improving their sleep and their lives. The next step for the Six Week Sleep Challenge is moving on to China. w w w. a h b e a r d . c o m /

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A.H. BEARD International expansion As one of the few exporters of any manufactured product into Asian markets, Beard said it’s very exciting as an Australian company since Aussies are often challenged by imports coming in from China at cheaper prices. A.H. Beard is one of the unique Australian companies that actually exports manufactured products to China, which makes him especially proud of what they’re doing.

“Our workforce is proud to put their name on a product and ship it to China,” Beard said, “and it’s great to go over there and see your product with the Australian Made logo proudly displayed”.

“The Australian bedding market is

a very mature market. There aren’t too many countries in the world that Australia can export products to, because they are bulky and come in various different sizes. You can certainly manufacture beds a lot cheaper in lower-cost countries.”

According to Beard, one of the unique dynamics today is with the Chinese becoming more successful and more affluent, they’ve developed a preference for buying imported products—including beds. Fortunately for A.H. Beard, Australian Made products are not only viewed as very good quality, but also very natural as well. The country is often associated with nature, which has been found to be relevant

“Beds are quite objective. What’s right for one person could be wrong for the next. There is no one bed that will satisfy everybody.”

– Allyn Beard, Director A.H. Beard

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July 2015

AUSTRALIA

when choosing a bed.

“There’s a small, but growing market for Chinese willing to consider or hopefully investing in Australian-made products,” Beard said.

Company Information INDUSTRY

Staying on top of the industry A.H. Beard isn’t among the industry’s leaders in innovation by accident. Beard said he and his team essentially travel the world looking for new innovations, often attending trade shows in the United States, Europe and Asia in an attempt to stay one step ahead.

“One of the realities when you’re in a market the size of Australia is somebody comes up with something new or revolutionary in another part of the world, and quite often, Australia is not on top of their list as a target market,” said Beard.

“If we just waited here for it to get to us, it would take a long time and someone else might find it before us.”

With a corporate vision shared by the family, which includes his brother Garry, Allyn Beard believes the company is based upon having a long-term plan for the business that can continue to excel the same way it has since 1899.

“We’ve been fortunate to attract very highcaliber people to our organisation, as with any organisation it is only as good as the people who work within it,” Beard said. “We see it as a strong business that still has great potential.”

Healthcare HEADQUARTERS

Padstow, NSW, Australia FOUNDED

1899 EMPLOYEES

200-500 PRODUCTS/ SERVICES

For more than 100 years Australia’s A.H. Beard has been the premier supplier of best-in-class luxury mattresses throughout the world. Expertly upholstered in luxurious knits and organic, wool with full outer tufting, A.H. Beard is the ultimate luxury mattress. Premium gel-infused memory foam, latex and the advanced “Reflex” innerspring system deliver luxurious comfort and near-total freedom from motion transfer disturbance.

w w w. a h b e a r d . c o m /

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Bombardier Transportat

Bombardier plays central role the revitalization of Australia’s

While the task before them is daunting, Bombardier and th Australian Government are planning to provide cutting-edg mobility solutions for the next phase of increasing populat growth and congestion across the nation.

Written by: Ian Hanner Produced by: Daniel Kadar

tion:

e in s rail

he ge tion

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B O M B A R D I E R T R A N S P O R TAT I O N

Mock Up of QNGR vehicle at Eagle Farm

Response to population growth The world’s population has increased dramatically since the beginning of the last century, increasing from fewer than 2 billion in 1900 to 7.2 billion in 2014. Aside from the increased resource drain that more people ensure, there’s the other factor of population growth that is inescapable, though solvable congestion. Bombardier Transportation wants to answer the calling by providing the next generation of mobility solutions. In tandem with multiple private sector entities and with the backing of the Australian government, the more 80

July 2015

than-century old company is poised to ensure reliable transport for the years to come.

All around the world, goods need to be transported to and fro in not only safe, but ultimately reliable, ways. While automobiles and paved roads have allowed for greater geographical connectivity than ever before, they’re limited a great deal by the number of people on the roads and driving habits.

For traveling over long distances, airplanes remain the unrivalled solution. But the large swaths of land needed to put an airplane down, and the heavy fuel

AUSTRALIA

Inside mock up of QNGR vehicle - restroom facilities

consumption that this mode of travel demands make it obviously impractical for commuter traffic.

Interestingly, it’s a return to a technology older than both of those that shows the greatest promise: rail.

Long neglected as the usefulstill, but not as glamorous transport of yesteryear, the commuter rail industry is poised to make real growth over the next decade or two in nearly every country in the world.

One such endeavor that could serve as a beacon for future projects to look to for guidance is being carried out in Australia.

In May 2015, the Australasian

Railway Association (ARA) published the results of the Infrastructure Australia Audit Report, which found the ocean-lined nation woefully unprepared for the challenges of growing populations.

ARA Interim Chairman Bob Herbert said, “Rail infrastructure underpinning passenger transport must be in place to meet population growth which, according to the audit, will swell demand for public transport by 55 percent in Sydney, 121 percent in Melbourne and around 89 percent in other capital cities.”

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For perfect clear vision.

Besides outstanding quality and reliability, product innovation plays a significant role for our company. Thanks to our company-owned developmental team, motivated staff and state-of-the-art manufacturing facilities, Glas Trösch AG Rail counts as one of the most competent suppliers worldwide in the field of high-end su windscreens and cabin glazing for the most important train manufacturers.

Glas Trösch AG Rail

Unterdorf 45, CH-4937 Ursenbach Phone: +41 62 957 91 00 Fax: +41 62 957 50 80 Email: rail@glastroesch.com Web: www.glastroesch.com/rail

Glas Trösch AG Rail is proud to be supplier in cabin glazing for Bombardier Transportation.

77 years of experience... provide evidence that offering the engineering, manufacturing, delivery as well as tailor made aftermarket services for reliable state-of-science glazing solutions are a key to long-term success. With that in mind, it is no surprise that our light-weight window systems meeting the highest international standards have been chosen for the fantastic all-new QNGR fleet.

Maximum protection vs. minimum weight: opposing attributes which are both met at the same time by the excellent products of Flachglas Wernberg.

“I think all of the parties involved in this project are very keen to demonstrate that our PPP model can be successful for such a large-scale new train procurement process.”

– Paul Brown

FLACHGLAS Wernberg GmbH - Germany Phone +49 9604 48-0 - www.flachglas.de

B O M B A R D I E R T R A N S P O R TAT I O N present an image of a worrisome future, the Australian government, in partnership with the private sector, is already developing the transport infrastructure to keep pace.

The Queensland New Generation Rollingstock (QNGR) project.

“This project is a game-changer for Bombardier in Australia in terms of both size of the project and complexity,” said QNGR Project Director Paul Brown. “It’s a $3 billion project which is seeing us deliver 75 new trains for Queensland and involves the construction of a new depot as part of that contractual obligation. Equally, we have the 30 year maintenance deal as part of a PPP contract.”

Bombardier is largely leading the development of the QNGR project through Qtectic, the trading identity of a consortium of companies including Bombardier Transportation, John Laing, Itochu and Uberior. With this venture, Australia is investing in its transportation future, specifically in Queensland.

But since this project is to serve as a beacon, it has to be done

AUSTRALIA

right, especially as a public-private partnership (PPP) model. This model presents a range of longterm challenges that are often completely absent in projects of this nature, such as a three decadeslong obligation for Bombardier to maintain the health and functionality of the systems.

“Managing the complexity of a PPP contract is a key ability that we believe we have here at Bombardier, particularly in terms of our systems division,” Brown said. “Australia seems to be much more in favor of the PPP model and it would appear to be much more successful here than in other parts of the world— certainly in rail.”

He added, “I think all of the parties involved in this project are very keen to demonstrate that our PPP model can be successful for such a large-scale new train procurement process.”

Benefits for Australia These 450 carriages, which are designed by Bombardier with input from universities in Queensland, will be manufactured at Bombardier’s facility in Savli, India. The trains will w w w. b o m b a r d i e r. c o m /

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B O M B A R D I E R T R A N S P O R TAT I O N

Inside mock up of QNGR vehicle

carry passengers at a top suburban speed of 100 kilometers per hour and a top interurban speed of 140 kilometers per hour.

Bombardier’s trains will service every line in South East Queensland.

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components of this project as possible are being sourced locally in Australia, it’s difficult to accurately measure the number of jobs an undertaking like this will create.

However, many of these jobs would be, in theory, temporary.

That’s not such a bad thing, with

AUSTRALIA

countless examples of temporary labor markets lifting people out of chronic unemployment.

However, what really matter are the long-terms jobs that this project will create. Bombardier estimates that once all is said and done, the operation of the trains and the new facility will easily create permanent jobs for more than 150 individuals.

Brown also points to the tertiary roles that this development would create.

“In the wider arena, the supporting jobs that this project will bring, such as business at the local coffee shop or maintenance contracts that we’ll need to place for cleaning and maintenance of the depot, can easily create upwards of another 500 jobs,” he said.

This is extremely good news for a region that has seen job growth slow to a trickle. So with economic opportunities abounding, and prudent early planning promising to mitigate challenges for Australia down the line, it’s hard for Brown and the rest of Bombardier not to be optimistic.

“The railroad sector itself is a very exciting sector to be in right now,” he said. “It ticks all the boxes if you look at what’s happening in the wider economic sphere in terms of population growth, increased urbanization, environmental pressures for municipalities and more. Rail, as a solution, ticks all those boxes, so you know there’s continued forecasted growth in that market.

Bombardier and Australia want to remain in a central position to maximize opportunities.”

Company Information INDUSTRY

Supply Chain HEADQUARTERS

Melbourne, Victoria, Australia FOUNDED

1942 EMPLOYEES

40,000 REVENUE

$20.1 billion PRODUCTS/ SERVICES With 63 production and engineering sites in 26 countries and 18 service centers across the world, Bombardier Transportation is the global leader in the rail industry.

They cover the full spectrum of rail solutions, ranging from complete trains to sub-systems, maintenance services, system integration, and signaling. Their installed base of rolling stock exceeds 100,000 rail cars and locomotives worldwide. Bombardier’s 39,700 employees continue a proud tradition of delivering ingenious rail transportation solutions.

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Fraldas C

Stands out as on producers of Company solidifies itself developing Written by: Flรกvia Brancato |

Capricho:

one of the largest baby diapers competitive and attractive products Produced by: Nayara Ferreira 87

FRALDAS CAPRICHO

C

urrently one of the top five baby diaper manufacturers in Brazil, Fraldas Capricho’s 40-year journey of expertise followed the market’s evolution and demand for consumer goods. With the mission to offer comfort to mothers, babies and elders, the company has a broad product portfolio that satisfies consumer needs.

Initially, the company focused solely on plastic pants for babies. In 1975, Enxuta pants were introduced to the market with the idea of covering and protecting cloth diapers. Several years later, the company acquired a clothing and cloth diaper production for babies. However, it was with disposable diapers that, in 2011, the company invested in its first machine for this purpose. Since then, Fraldas Capricho has been focusing on advanced technologies and its industrial park expansion.

Today, the company’s portfolio gathers eight children lines plus three aimed at the elder consumer, in addition to baby wipes. The plant, located

Business partners: Laerte Armelin, Dirceu Forti, Fernando Forti and Dirceu Forti Filho

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Capricho’s production

in Capivari—São Paulo state— has an 840 million unit-production capacity, complying with the most rigorous quality standards in the category.

DEMAND AND PRODUCTION Besides concentrating efforts on high quality production, the licensing of cartoon characters, for example, was responsible for and expressive of an increase in sales. “It was a great divide when licensed products joined Capricho’s portfolio, which gained national projection and increased profits considerably,” explains Dirceu Forti Filho,

“It was a great divide when licensed products joined Capricho’s portfolio” – Dirceu Forti Filho, CEO of Fraldas Capricho

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FRALDAS CAPRICHO

CEO of Fraldas Capricho.

After registering a profit growth of about 20 percent in 2014, in comparison to the previous year, added to more than 610 million products sold, Fraldas Capricho projects a revenue increase of at least 5 percent by the end of 2015. The forecast is for a USD $69 million profit with 800 million units commercialized.

Despite the economic downturn, the company is betting on competitive products with aggregated value and attractive prices, according to the CEO. In addition to migrating 90 percent of its products to soft cover, a superior quality material that provides the diaper user more comfort, the Capivari factory will still bring part of the adhesive tape diaper portfolio to the Velcro models. “Over the last years, C and B class consumers have been spending more to have better quality products with some differential. Nevertheless, price is still a sensitive point in Brazil and now, more than ever, this will be a decisive 90

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differential at the purchase moment,” asserts the executive.

Last year, Fraldas Capricho became Brazil’s largest closed capital company in the disposable diaper segment. To Forti Filho, the Brazilian market has a lot of space to be explored.

Based on numbers disclosed by Euromonitor, an independent provider of strategic market research, the executive observes that the diaper consumption in Brazil is 2.3 units per capita and the product is present in 65 percent of Brazilian homes. “We have a market with strong growth potential.”

The adult line also represents a business opportunity for the company, since the segment as a whole has been growing an average 20 percent a year, according to AC Nielsen—a global marketing research firm. In order to conquer new consumers, Fraldas Capricho is innovating in the Sensaty, Maturi Care and Fir Care lines, with new fragrance technology that promotes odor control more efficiently.

With the economic crisis and currency fluctuations due to the floating exchange rate, the biggest challenge of the sector is to balance the costs, since 80 percent of the raw material used to produce diapers is imported in dollar.

“The company has been negotiating with different suppliers seeking the best purchase options and avoiding going over budget, thus keeping the consumer from noticing any price variation,” admits Forti Filho.

Dirceu Forti Filho, CEO

“In 2014 and 2015, we invested around USD$1.9 million in an automated packaging technology for the production lines” – Dirceu Forti Filho, CEO of Fraldas Capricho

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C O M PA N Y N A M E

Enxutita diapers - production line

Warehouse

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MANAGEMENT STRATEGIES Through a family structure governance, Fraldas Capricho operates within intelligence. Loss, productivity, turnover, absenteeism and quality indicators are generated daily, separated by sector, expediting all decision making and action.

Continuously seeking improvements, the company has recently invested more than

SECTOR

USD $655,000 in safety and healthcare upon ratification of Regulatory Standard-12, approved by government decree, which aims at ensuring the health and physical integrity of workers and establishes minimum requirements for the prevention of accidents by demanding cessation of workers’ access to machinery and equipment.

When it comes to quality, the CEO emphasizes the importance of the process as a whole. “We have work aligned with our suppliers, where every input product—from receiving point and utilization to the extraction w w w. f r a l d a s c a p r i c h o . c o m . b r

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FRALDAS CAPRICHO

Capricho’s production

“We have a market with strong growth potential” – Dirceu Forti Filho, CEO of Fraldas Capricho

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of best performance—is monitored jointly with the supplier who trains us every step of the way, keeping our proficiency always up to date.

Forti Filho reveals that within the next few months the company is already investing in newer systems. “In 2014 and 2015, we invested around $1.9 million USD on an automated packaging technology for the production lines which will make possible to work with more compressed packages making room for storage, transport and reducing package material-use up to 25 percent.

BRAZIL

Company Information INDUSTRY

Consumer goods HEADQUARTERS

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

1975 EMPLOYEES

500 ANNUAL REVENUE

USD$68.6 million PRODUCTS/ SERVICES

Currently we are working towards a project for the second semester of this year, which is an automated bundle packaging system.”

To sum it up, Fraldas Capricho is also in the final process of implementing the APS – Protheus da TOTVS—a production capacity management system that helps with online production sequencing and loads the machines. It is managed by the client’s order and provides them with the real picture of delivery time.

Baby and Adult Disposable Diapers, Baby Wipes MANAGEMENT

CEO: Dirceu Forti Filho Financial Director: Dirceu Forti Purchases Director: Fernando Forti Logistics Director: Laerte Armelin

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H

CIMENTO BRAVO:

Heritage of Success

Company invests in four factories and kicks off with its cement grinding unit Written by: Flรกvia Brancato | Produced by: Nayara Ferreira 97

CIMENTO BRAVO

I

t was from the merger between two big Brazilian companies—Cornélio Brennand and Queiroz Galvão—that Cimento Portland Participações, CPP was conceived. Since then, the focus has been placed on revealing “Cimento Bravo” as a differentiated brand and a benchmark in the Brazilian cement industry. Once all four units are completed, three factories and one grinding unit, combined they will produce 8.8 million tons of cement a year.

Even though the journey has just begun, the business plan already shows agility and strength as it arrives in the market. In 2014, with a total investment of USD$38.7 million, a grinding unit—CIMAR— was built in São Luís, Maranhão state. A second integrated factory will soon be inaugurated in Paripiranga, Bahia state, once the installation environmental license is issued. Additionally, the two others, which will have a productive capacity of approximately 5.5 million tons of cement per year, will be introduced to the Southeast and Mid-West regions.

CIMAR - São Luís, Maranhão state

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INTEGRITY AND VALUES “Due to the tradition and perseverance of all its partners, our ‘Cimento Bravo’ was created with social and environmental sustainability values, as well as the integrity found in other companies owned by the group,” explains Rogerio Notare, director president of CPP. According to the business plan, the actions are aimed at new agriculture, industrial and infrastructure construction frontiers.

The operational format was also tailored to

Photo: Meirelles

Cement truck loading at CIMAR

Rogerio Notare, director president of CPP

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PERFIL DA EMPRESA

Photo: Meirelles

Operational Control Center of CIMAR

Worker checking the hydraulic system

COMPANY NAME

Main text goes here and can be a block of copy - if there is no desire to indent the copy with headings. Main text goes here and can be a block of copy - if there is no desire to indent the copy with headings.

Photo: Meirelles

improving technologies available for the sector, promoting safe, efficient and environmentally sustainable operations. “We certainly have a differentiated, agile and very competitive company that invests in the long-term commitment with its clients, suppliers and employees,” adds Notare.

When it comes to quality, not only will the products soon be certified by one of the most important agencies in the country, the Brazilian National Standards Organization. The exclusive representative of Brazil in international organizations ISO will attest that Cimento Bravo complies with Brazilian standards and norms.

However, CIMAR is also developing its quality management system, aimed at continuous improvement of its products and processes.

Photo: Meirelles

BRAZIL

If you need to create a new paragraph then just hit return and a separating rule appears for segregating the paragraphs.

The text in this box aligns from the bottom up. Adjust the text box height of course, but leave the position of the box so that the bottom of the box has a y co-ordinate of 742pt.

Website: address goes here as the last entry Employees of CIMAR’s operational team

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Photo: Meirelles

Laboratory analyst of CIMAR

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POSITIONING STRATEGIES AND PRODUCTION Surrounded by major freeways and railroads, CIMAR is located near Itaqui Port, close to its raw material and services suppliers. Production— which uses clicker as the main raw material—is delivered to crowded urban areas such as the capital São Luís, and other neighboring states like Piauí and Pará.

Without a question, the demand for the company’s products has increased thanks to new infrastructure constructions, the real estate market growth and the ample financing credit offers from private and public institutions. These

BRAZIL

“We certainly have a differentiated, agile and very competitive company that invests in the longterm commitment with its clients, suppliers and employees” – Rogerio Notare, director president of CPP

Photo: Meirelles

have been decisive factors that influenced the current structure of the Brazilian cement industrial park. According to data from the National Construction Industry Union, the country is currently one of the largest cement consumers in the world, surpassing 77 million tons. Over the past five years, for example, the North, Northeast and Mid-West regions were the ones that registered the largest consumer growth. The president recognized that the trends of the sector were essentials for the factories’ positioning strategies. “We realized that the Maranhão and surrounding areas’ market were suffering systematically with the absence of a cement supplier for retail and large scale infrastructure projects, essentials for regional development.

With the installation of Cimento Bravo factory in

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Eco hopper for dry bulk cargo operations equiped with dust free control device for use in port and industry activities.

The equipment can be custom-made, according safety and enviromental regulation and requeriments.

55 (12) 3892-1499 pronave@pronave.com.br

www.pronave.com.br

BRAZIL

COMPETITIVE ADVANTAGES Still, Notare admits that the Brazilian currency devaluation negatively impacted CIMAR’s competitive status because “we rely on clinker import.” In order to flip this disadvantage around, the company invested in an innovative solution for its ship unloading operations. It acquired two eco-friendly storage hoppers, specifically for this procedure. “This equipment considerably minimizes particulate emissions and was utilized for the first time last August to unload 37.4 tons of clinker.” And he still celebrates, “we had a considerable, ‘sustainable reduction’ on imported clinker’s total cost, considering the conventional alternatives for this operation.”

This equipment has a lifting and towing system which allows its transfer to any multiuse cradle containers at Itaqui port. Besides, it improves the unloading operation by using two of a ship’s cranes. CIMAR’s activities became more flexible and less expensive, contributing to better planning and optimization of the port infrastructure.

Another competitive structural advantage of CIMAR is the technical and economical

“Due to the tradition and perseverance of all its partners, our ‘Cimento Bravo’ was impacted by social and environmental sustainability values, as well as the same integrity found in other companies owned by the group.”

– Rogerio Notare, director president of CPP

Photo: Meirelles

São Luís, we contributed significantly to remedy that deficit and turn it into a self-sufficient market in competitive cement offer. Our product is from Maranhão and our goal is to apply the best practices to serve this important market,” he explains.

Customer Service Central of CIMAR

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C O M PA N Y N A M E

Ecological hopper used for clinker discharge in Itaqui Port, SĂŁo LuĂ­s-MA

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availability of a extra slag production generated in southern Maranhão.

It is a substitute ingredient that replaces clinker by 34 percent, promotes technical characteristics highly beneficial to cement type CP-II-E and it is not dependable on currency exchange rates or port operations. The slag is shipped out to cement grinding through Carajás railroad and rides along with the returning cement freight, which is dispatched to the south of the state.

As for commercial differentiation, the company serves a myriad of segments through bulk, bagged and palletized cement, in addition to offering a ‘programmed load.’ Another important expression of flexibility is the fractioned sale, starting at 80 bags—a category that allows the client to purchase small quantities direct from the manufacturer.

CIMAR’s truck loading

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Cimento Bravo storage warehouse

EXPANSION AND ENVIROMENTAL CONSERVATION “The Paripiranga [Bahia state] unit is one of the project’s anchors,” notes Notare. Located 230 miles from Salvador, this will be the first CPP integrated factory with limestone mining and clinker manufacturing. With a production capacity of 2.7 million tons per year of cement, it will be Bahia’s largest cement factory. It also has limestone quarries of excellent quality.

With an investment expected to surpass USD$322 million, the company’s production will serve primarily the markets in Bahia, Sergipe, Alagoas, Pernambuco e Paraíba states, possibly expanding to Rio Grande do Norte e Ceará states as well. “The expectations are to start the construction of this unit as soon as we obtain the environmental license and operations kick off in 30 months after construction begins,” says the president.

It is relevant to mention that, with the goal of educating the local communities about the preservation of archaeological sites, as it is the speleology of the region, educational workshops were created and 108

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executed during the environmental licensing process of this unit over the past 12 months. Archaeological artifact expositions and art-education activities with children were used to explain and inform the population about aspects related to the limestone site mining and the cement factory in the city. In these workshops, which had an impressive attendance, themes such as technology that will be used, location of the enterprise, environmental impacts and programs were discussed.

When it comes to operational efficiency and environmental impact control, São Luís unit is supplied with the latest technology and low-energy consuming equipment. High-performance capture systems have also been employed, providing rigorous particulate emissions control.

Cimento Bravo promotes another relevant contribution to carbon dioxide emissions reduction. In partnership with Queiroz Galvão Siderurgia, CIMAR has adopted a competitive and sustainable utilization of slags from the Maranhão state’s steel industry, located in the city of Açailândia. This pig iron byproduct is considered a strategic input, vital for the factory’s competitivity. Besides, its use results in positive outcomes, which are

“The Paripiranga [Bahia state] unit is one of the projects anchors” – Rogerio Notare, director president of CPP

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CIMENTO BRAVO

Raw materials storage warehouse

CIMAR’s industrial production

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focused on environmental preservation. Because the cement grinding unit reprocesses this slag, it is possible to reach maximum levels of efficiency and economy, providing a virtuous cycle in the Maranhão state production chain. Furthermore, the utilization of this material as clinker substitute helps to reduce carbon dioxide emissions into the atmosphere – and it saves natural resources such as clay and limestone, contributing significantly to a much more eco-friendly operation.

Supporting a diversity of initiatives suitable to the company’s social responsibility values and

BRAZIL

Company Information INDUSTRY

Construction materials HEADQUARTERS

São Luís, MA - Brazil E S TA B L I S H E D

2012 EMPLOYEES

80 ANNUAL REVENUE

USD$ 60 million PRODUCTS/ SERVICES

understanding, Notare proudly says, “recently, Cimento Bravo partook in a very special social action. Developed by one of our clients in the city of Paço do Lumiar, Maranhão state, and with the support of SINDUSCON-MA—a local construction union—and FIEMA, Industrial Federation of Maranhão State, in addition to private companies, the idea was to offer a whole day of services and products that promoted citizenship and life quality improvement in that community.”

Portland cement manufactuting for civl construction MANAGEMENT

Director President: Rogerio Notare Industrial Director/ Projects: José Tarcísio Piau

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D

O

BELIEVING AND INVESTING IN THE DOMESTIC MARKET FOR 40 ANOS

One of the few cement businesses genuinely Brazilian operating in Brazil, the family company prioritizes quality and excellence Written by: Ellen Mason | Produced by: Nayara Ferreira

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CIPLAN

W

ith simplicity and agility, Ciplan Planalto S/A is a family company that since its 1968 foundation has been successfully operating in the cement market. Betting on the domestic market, the company believed in the country’s growth and was one of the first ones to open its doors in Brasilia.

More than four decades later, Ciplan is one of its sector’s leaders with a strong presence in seven states, covering areas in the Midwest, North and South.

The company operates within the civil construction industry and the production line includes aggregates, ready mix concrete and cement— featuring bagged cement reselling—which serve all types of projects.

Holding 19 percent of the market share in the Midwest region, the group offers services to the special construction market; differentiated solutions and concreting available at its concrete batchers.

Despite only owning one plant, Ciplan has kept up with the market evolution and sectors trends. Speaking about the main elements that

Mortar application

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Aggregates automatic loading

set the company apart from its competition, President of Ciplan Robert Castelani says, “bet on the market growth, invest in conditions and opportunities of scale gain market.” Castelani also says that the company “promotes the culture of investing in people.”

Despite facing fierce competition, excellence is a Ciplan trademark that is responsible for the company’s ultimate success. Its structure is simplified and focused on results. Decisions are agile and without bureaucracy.

In view of the civil construction industry’s contraction period on a national level, Ciplan revised its strategic plan last year “avoiding mass layoffs and reducing the financial impact,” says Castelani. He also says that “we have an advantage over our competitors because of our tight costs control.”

“We have an advantage over our competitors because of our tight costs control” – Roberto Castelani, Ciplan’s president

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Transport of cement bags for palletizing 116

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OVERCOMING CHALLENGES Like any growing company, Ciplan also faces its challenges. Among them are environmental factors, employee training and safety, in addition to not letting the market contraction affect productivity.

“We are trying to work on all those issues. We have a strategic plan that covers each one of them and allows us to direct actions, investments and, especially, prepare the staff to deal with these challenges. We are now talking about mid-to-long term work which will channel a culture change, environment care, general compliances and employee training,” asserts the president.

The key strategies to reduce turnover are competent leadership, good remuneration and a positive work environment. “Along with that, it is important to provide incentives so the employees dream about the company’s success, where we are and where we have to be at, with a well defined mission and vision and aligned with everybody. This engaging W E

C O N V E Y

Q U A L I T Y

Expertise in the Cement Industry Proven Technology with equal Quality, Strength and Reliability

• Quality and Reliability for kiln capacities up to 12,000 t/d • Proven by more than 10,000 references worldwide

AUMUND Ltda.

São Paulo / SP aumund@aumund.com.br www.aumund.com

movement to constantly outdo ourselves has been helping us to reach our main goals,” assures Castelani.

The company prioritizes its people, health and safety. For that, training programs aimed at reducing or eliminating accidents are put into practice.

“Through an awareness training program, the company has been overdoing its own expectations,” completes Castelani. For that reason, several procedures are already in place.

The company’s products are certified by the Associação Brasileira de Cimento Portland. Ciplan constantly seeks to improve its performance.

With that in mind, the group is intensely focused on updating its factory.

ENVIROMENT AND COMMUNITY “Currently, all of our machines are equipped with appropriate filters to avoid harmful pollution emission. We have a rigid control over particulate emissions and because of that we exceeded the expectations of 118

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Mandatory use of protective equipment

Production team with certificate of training completion

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CIPLAN

CIPLAN’s fleet of concrete mixer trucks

environmental agencies. Additionally, we utilize alternative fuel, biomass, to mitigate CO2 emission,” points out Castelani.

Always concerned with the community’s needs, Ciplan considers social actions as part of its long-term plans. Based on that, the company consolidated a partnership with SENAI, a network of not-for profit secondary level schools, intending to provide industrial professional training to members of the community. It has

Factory and truck parking overview

BRAZIL

also implemented social inclusion actions that stimulate the development of special talents, such as allocation of individuals with disabilities to administrative and industrial occupations.

Another action of equal importance incorporated by the company is the program Menor Aprendiz which contributes to the creation of professional opportunities for adolescents and promotes knowledge and an introduction to the market.

“This engaging movement to constantly outdo ourselves has been helping us to reach our main goals” – Roberto Castelani, Ciplan’s president

CIPLAN

Expansion work of BrasĂ­lia International Airport

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Brasília National Stadium built with concrete CIPLAN

JK bridge on Paranoá lake built with concrete CIPLAN

Brasília digital tower built with concrete CIPLAN

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CIPLAN

Your product deserves the best packaging • Highly resistant • Excellent printing quality • Greater security • Easy automation • High-speed sacking • Reduction of leaks • Better palletization • Chain of Custody certification from the Forest Stewardship Council® (FSC®) • Recognized by Carbon Disclosure Project (CDP) • Certifications: ISEGA, ISO14001, ISO9001 BIODEGRADABLE

100% Compostable

Klabin’s paper sacks are developed using high technology to meet the specific needs of diverse products. And all of this is done efficiently using renewable resources with low environmental impacts. Being a pioneer in sustainable development is one of the key characteristics of Klabin, the first Brazilian pulp and paper producer to be certified by the Belgian OK compost seal, which guarantees that the company’s cement paper sacks, even after use, will decompose completely in industrial composting.

Present in the daily lives of millions of people. Even when they don’t realize it. klabin.com.br

Palletized cement stock

TECHNOLOGY Known for aggressive investments in technology, this year Ciplan made three important ones. “Circular pre-homogenizer, flower milling and a 14,000 ton stocking silo. Besides the operational safety, with this equipment we bring a significant reduction in electricity consumption,” says Castelani. Aiming at lessening CO2 emission, the company purchased an artificial pozzolan calcination furnace which the president conveys will help greatly.

Speaking of investments, over the past few years the company has been focusing on capacity expansion. Including environmental projects, safety and work, in 10 years there has been “[USD 16 million] per year on these categories,” explains Castelani.

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Company Information NAME

Ciplan Cimento Planalto S/A INDUSTRY

Cement, Mortar and Aggregates HEADQUARTERS

Sobradinho - DF, Brazil E S TA B L I S H E D

1968 EMPLOYEES

1100

THE FUTURE Ciplan wants to be prepared for when the volume of business starts picking up again.

With the market increase in its operating region, the company studies its next expansion opportunities. “Preparing the staff, eliminating bottleneck and depending on the growth, we are analyzing the possibility of expansion. All these subjects are part of our strategic planning,� finalizes Castelani.

PRODUCTS/ SERVICES

Cement, mortar, aggregates, civil construction

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Pio

OJI PAPร IS ESPECIAIS:

FOCUSES ON INNOVATION AND PROFESSIONAL QUALIFICATION

oneer in coated paper on machine manufacture, company keeps focus on environmental appreciation process Written by: Flรกvia Brancato | Produced by: Nayara Ferreira 127

O J I PA P É I S E S P E C I A I S

Factory facade in Piracicaba - São Paulo

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ith an annual production capacity of 120,000 tons of paper, Oji Papéis Especiais is a national leader in the thermo and selfcopy sector, in addition to having pioneered the manufacture of on-machine coated paper. Founded in Japan in 1873, the group has been operating in Brazil since 2011 when it took control over the Piracicaba, São Paulo state, factory. The company keeps in its essence the strategic guidelines characterized by economic development, innovation, conciliation and sustainability.

“Sustainability is one of our mainstays. So to invest in people and environmental appreciation processes is part of our everyday lives,” comments Silney Szyszko, commercial director of Oji Papéis Especiais.

The company’s directives include environmental protection, cultural promotion, work and income generation, and sports incentive. Every year, investments in socio-environmental action and projects are promoted where the group operates. In 2015 alone there have already been 14 128

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sponsored projects with a variety of activities associated to social inclusion, sports, culture, education, professional qualification and reading, to name a few.

“Besides, we also have a community field trip program when we host, at the factory, small seminars and debates about current themes, in addition to NEA (Núcleo de Educação Ambiental) which in 2014 received more than 350 children from Piracicaba public schools for environmental awareness and preservation education.”

LEADING ROLE IN THE MARKET The company is categorized by four values: integrity, sustainability, excellence and synergy.

“Sustainability is one of our mainstays. So to invest in people and environmental appreciation process is part of our everyday lives” – Silney Szyszko, commercial director of Oji Papéis Especiais

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Some bonds are naturally stronger

Strong bonds lead to unique possibilities – in business as well as in chemistry. And that’s precisely why we’ve acquired AkzoNobel’s paper chemicals business. Additional expertise. A broader technology base. Greater presence where you need us most. It all adds up to a winning partnership with a shared commitment to innovation.

We’ve extended our capabilities so you can extend yours.

Let’s work together to build value into paper.

www.kemira.com/extend-your-capabilities

ROLL COVER TECHNOLOGY FOR CALENDERS SUPERIOR SHEET FINISH TOUGHNESS DURABILITY

Genesis

DOW PAPER

COATINGS

Resistance combined with durability - Superior toughness - Optimal abrasion resistance - Nano Technology - Ideal for calenders, supercalenders and over-cotton - Compatible with Xerium's exclusive Thermaguard™ base

Gemini

The objective of Dow’s Paper Coatings business is to increasingly improve the performance of the Company’s coatings line for the paper market and deliver a high quality product to final consumers.

With this in mind, Dow has partnered with Oji Papéis.

FOR YOU MOST DEMANDING ONLINE MULTI-NIP AND SOFT CALENDER APPLICATIONS

• RopaqueTM : opaque polymer • PrimalTM : acrylic and styrene acrylic binders

Superior surface finish combined with improved toughness

• PolycoTM : vinyl acrylic and vinyl acetate binders

- Greater abrasion resistance - Increased durability and impact resistance - Increased temperature stability - Compatible with Xerium's exclusive Thermaguard™ base

www.xerium.com

• AcumerTM : polyacrylate dispersant • AcrysolTM : rheology modifiers • HypodTM : polyolefin dispersions Visit our website and learn more about our products:

www.dow.com/papercoatings

BRAZIL

Company’s initiatives for education on behalf of the environment

The company also cherishes diversity, creating opportunities for all through a meritocracy. The director points out that the way the group manages these values makes a big difference. “We work to be important actors in the creation of a new business concept that is capable of changing the world. Oji Papéis Especiais is a distinct company because it is, in fact, special in all fields where it operates, from production to customer service, community and environment relationships,” he indicates.

While the national market displays good expectations for the specialpaper sector, the company keeps up with the positive projections through strategic planning, including in the exportation market. “In regards to the South American market, where we have been since 2014, we see a great potential for both thermo and self-copy paper exports. To carry out the strategy to become a regional player, we already have a growth plan structured for each region which should follow the successful model adopted in the Brazilian market, through a bountiful portfolio and distinctive service,” comments Szyszko.

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O J I PA P É I S E S P E C I A I S

With company investments the productive capacity increased 20% in 2014

(Febraban) show that the use of credit, debit and store cards have been increasing between eight and nine percent, for an estimated total of 900 million cards in 2014. This factor, together with the introduction of mandatory receipt emission in Sao Paulo, has boosted consumption of thermo paper.

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SAFETY AND PROFESSIONAL QUALITY The company constantly invests in training, lectures and reaching a goal of zero accidents in the workplace. Some programs help in this process, such as the Pocket and the Safe Behavior Programs, in which professionals identify key points to improve work atmosphere as well as risk assessments. Besides, there are weekly dialogues between workers to discuss areas that might require further adjustments to develop a better quality of work.

Oji also develops and maintains several preventive health programs to ensure a better quality of life for its employees, such as: labor gymnastics, an Ergonomics and a Speak Better program, available nursing staff, a Hearing Conservation program, occupational assistance, health campaigns, medical consultation assistance, executive check-ups, professional re-adaptation, Live Better Oji, among others.

Quality from start to finish

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O J I PA P É I S E S P E C I A I S

Social Projects

Seeds of tomorrow

Art, music and sports

PE Haroldo Institution

Young Musicians

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Appreciation is the backbone of the organization. The group seeks to recognize the efforts of each individual who works on his or her own development through a meritocracy. The director reinforces that “the company’s success depends massively on know-how and innovation capability. For that reason, it is important to recruit and qualify our people well.”

In 2014 alone, there were 1200 training participations, which in almost 30,000 hours, sought to train employees, developing inherent leadership, management, and innovation skills.

Additionally, the company defrays training programs in areas that appeal to professionals.

Last year, there were almost 50 considered.

Furthermore, this year the company has launched its new internship program. Titled “Germinar,” the program seeks to attract young talents who would like to learn how to put theory into practice, with career development opportunities and professional growth. In the program, the youth receive professional training, in addition to coaching follow-ups and career forums.

GROWTH AND IMPROVEMENTS With an above-average market growth, in 2014 Oji Papéis Especiais saw an increase of 16 percent over the previous year on thermo paper sales. “We had an expressive result that was mainly propelled by the work done by the whole company—such as market case studies,

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The company employs nearly 600 people in Piracicaba - São Paulo

research, product improvement and innovation,” says the director.

Last year, the company invested in improvements and new equipment, precisely to back up the growth that yielded positive results. Among them, renovation of thermo paper production machines guaranteed the capacity increase of 20 percent of each one, reaching an annual productivity of 70,000 tons. Demand was around 60,000. “The difference between capacity and demand guarantee development for market

OJI is sponsoring 14 social projects

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O J I PA P É I S E S P E C I A I S

The company currently has capacity to produce up to 120,000 tons per year of

Silney Szyszko, commercial director of Oji Papéis Especiais 136

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growth and allows us to explore new domestic and international market possibilities,” explains Szyszko.

When asked about the future, Szyszko comments that “the biggest challenge of 2015 is to keep up with 2014’s domestic market achievements, for no expressive growth is projected due to the macroeconomic scenario.

Swimming against the tide in large parts of the sector, we started the year very well with a first trimester that surpassed all our expectations. The growth projection for the year is now around three percent, which is a step forward, since according to our analysis, 2015 and 2016 would have been

BRAZIL

Company Information INDUSTRY

Special Papers HEADQUARTERS

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

2011 EMPLOYEES

560 thermal and carbonless papers

PRODUCTS/

complete recessions.”

And to maintain an excellent participation in both domestic and international markets, the director completes, “As for exports, our strategy is to strengthen the role earning more businesses and increasing our market share in South America. We have been accomplishing a gradual and growing work that started in 2008 with the self-copy paper.

Today, we have an established position in several countries and that, without question, accredited us and contributed to the introduction of the thermo paper. It is all about a market with a great growth potential and intends to become a regional player,” he emphasizes.

SERVICES

Thermo and Self-copy Papers MANAGEMENT

President: Gilberto Julio Piatto Vice-President: Agostinho Monsserrocco Commercial Director: Silney Szyszko Industrial Director: Giovani Ribeiro Varella Financial Director: Agostinho Monsserrocco

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