Manufacturing Global - April 2015

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An Efficient Warehouse Could Save You Millions We speak to the global logistics provider DHL about the cost benefits of optimising stock

TOP 10

Global Automotive Manufacturers 2015

Technology Taking The Global, Local

EDITOR’S COMMENT

Keeping The Global, Local W E L C O M E T O T H E A P R I L edition of

Manufacturing Global magazine – where has the year gone so far? In this issue we have some fantastic insight from the world’s largest logistics provider DHL about how to maximise the efficiency of your warehouse.

An effective distribution network starts in the warehouse and done right, could save your manufacturing business millions each year.

Also in this issue we have a great article about international comms. Keeping the global, local is critical to multinational success and you have to remember the ‘small stuff’ as well as the larger, more obvious issues. Our article helps you identify those issues and overcome them.

Finally, this month we have our annual run down of the top automotive manufacturers in the world. Who will take the top spot?

Enjoy the issue!

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

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CONTENTS

Features

TECHNOLOGY

LEAN

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Driving warehouse efficiencies in the manufacturing sector could save millions

TOP 10 Global Automotive Manufacturers 2015

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How international manufacturing firms achieve local success

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CONTENTS

Company Profiles EUROPE

AUSTRALIA

30 Firstan

102 Intel Products Vietnam

AMERICA LATINA

114 Stabicraft

40 SISAMEX

122 Reinhausen Australia

54 Continental Automotive Guadalajara

130 Australian Made Campaign

68 PWO De Mexico 78 Janesville De Mexico

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Firstan

136 New Zealand Made

BRAZIL 142 Durr Brasil

USA 90 GW Plastics

152 MVC 164 ABRAFATI 172 ABRAVA

102

I ntel Products Vietnam

90

GW Plastics

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SISAMEX

54

Continental Automotive Guadalajara

114

Stabicraft

142

Durr Brasil

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LE A N

Driving warehouse efficiencies in the manufacturing sector could save millions An efficient supply chain and effective practices can transform the operations of manufacturing facilities.

Manufacturing Global speaks to global logistics provider DHL and finds out how much money can be saved W r i t t e n b y : P H I L R O E : V P Innovation, S tr ategy and Busines s Development ( Tr anspor t, Engineering and Manu fac turing, Energy and Chemicals)

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LEAN

A properly planned warehouse could save manufacturing firms millions per a AN EFFICIENT SUPPLY chain and effective practices can transform the operations of manufacturing facilities. Ensuring that sites are organised to maximise productivity, enables the safe execution of operations and ensures that parts remain protected during processes.

This cuts costs, saves time and ultimately enhances the quality of goods produced. Improvements in batch accuracy, reduce the 10

April 2015

numbers of faulty parts and products discarded, whilst streamlining processes saves time and creates an increasingly productive facility.

With expertise in the aerospace and aviation sector, DHL partnered in 2012 with global leader in the nacelle and thrust reverser market, Safran Aircelle UK to drive further efficiencies and innovation within their supply chain.

Using this successful partnership as an example of best practice, the

WAREHOUSE EFFICIENCIES

‘Ensuring that sites are organised to maximise productivity, enables the safe execution of operations and ensures that parts remain protected during processes’

annum case study below demonstrates the benefits supply chain solutions can bring to the manufacturing sector.

Aircelle and DHL Supply Chain: A case study Aircelle’s 48,200 square metre site in Burnley, Lancashire employs 1,000 skilled individuals and carries out a wide range of industrial activity including: development and Computer Aided Design; engineering and

production of complex composite structures; sheet metal manufacturing, assembly and test. Following the launch of the DHL partnership, the first successful year achieved a £5 million inventory reduction through detailed analysis of consumption, supplier performance and advanced utilisation of the ERP system. A full redesign of the inbound freight network resulted in a 13 percent cost saving. In addition DHL led a number of other cost saving activities such as MHE rationalisation, Supplier On-Time Delivery performance and line feed improvements. Due to these achievements within the first year it was decided that DHL would be the provider of choice and manage all in-plant on behalf of SAFRAN Aircelle.

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LEAN In March 2014, discussions regarding stores redesign began with a focus on maximising productivity, improving efficiencies, increasing capacity for potential future growth and ensuring safe execution of processes on site. In September 2014 the full redesign was implemented without any disruption to production.

Within four months of the redesign, product protection had been improved and stock integrity continued to move in the right direction. The redesign

also brought about significant improvements to the safety of both product and employees. Each part now has its own location within the warehouse, ensuring proper and safe storage. The potential for damage to products has been reduced and access to parts is much easier. This has added to the existing safety processes on site and enhanced the visibility of parts and materials.

Feeding kit sets to production has been a long-term challenge

Effiencient distribution starts at the manufacturing facility

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April 2015

WAREHOUSE EFFICIENCIES

DHL is one of the world’s most trusted logistics partners for Aircelle. Addressing this, DHL worked with Aircelle to create bespoke storage media to ensure products were protected during transportation around the various manufacturing buildings on Aircelle’s expansive site.

Working with a specialist supplier and combining DHL’s expertise and Aircelle’s specialised knowledge of the aerospace sector, led to the production of innovative and specialised solutions for parts on site.

In addition, and working closely with Aircelle on production and planning, the number of line feed points around the site were rationalised, thereby creating a more streamlined logistics and production process. Kanban

solutions were introduced, allowing for visual management of stock levels and replenishment triggers.

Kit sets placed on the red square signify that the kit is finished and requires replenishment while stock on the green square represents a full kit, which could contain over 250 parts numbers. This change reduced work in progress value and travel time of skilled production fitters.

The sequenced kit delivery method will be supported by a Synchronous Material Flow methodology and DHL’s inbound to manufacture service offering. This process improves the overall efficiency of operations by creating better line side layouts and 13

LEAN reducing inventory-holding costs. For example, the Synchronous Material Flow process has small and more frequent systems that lower inventory levels, resulting in an agile logistics solution with the ability to react rapidly to any changes in customer demand whilst improving ergonomics and safety. This simple process benefits production on site by highlighting where stock needs to be placed, demonstrating which kits are full and streamlining the production process.

‘Creating an efficient and cost effective supply chain platform can transform practices at manufacturing facilities and enhance both processes and overall performance’ 14

April 2015

An industry view Creating an efficient and cost effective supply chain platform can transform practices at manufacturing facilities and enhance both processes and overall performance. At Aircelle’s site, new ways of working have saved circa 23 percent of time and the accuracy and integrity of inventory has improved by 32 percent.

Additionally, costs have been reduced significantly across the contract.

Today we are seeing an increasing awareness in the manufacturing industry of the need for efficient supply chain solutions. Product protection is a priority for many manufacturers and there is a greater

WAREHOUSE EFFICIENCIES

Using a logistics partner to plan your warehouse is a good business decision understanding of the benefits bespoke storage solutions can bring. Making changes such as these improve batch accuracy and ensure that materials do not go to waste in faulty products.

Streamlining processes in facilities saves time and creates a safer working environment, creating benefits for the business and employees.

Logistics providers, such as DHL, are sharing best practice across sectors in order to provide their

customers with the most innovative solutions and intelligent expertise.

Taking a collaborative approach to redesign and putting the needs of the manufacturer first, logistics providers’ expert advice and counsel is leading to significant improvements within operations. Ultimately these changes benefit the customer by creating efficient processes, producing a higher quality product and increasing overall confidence in the business.

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TECHNOLOGY

How international manufacturing firms achieve local success By following several localization best practices, manufacturers can implement a well-paced translation project that ensures important engineering, product or instructional content is accurately localized for international markets Writ ten by: Francoise Henderson, CEO of Rubric

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TECHNOLOGY CARPENTERS ABIDE BY the guiding principle “measure twice, cut once” to limit construction mistakes and wasted material.

Accuracy is equally important in manufacturing, as any errors in measurements, figures, and descriptions can result in ineffective product and even consumer danger.

Consider the safety risk posed by a medical device manufacturer that uses inconsistent units of measure, or the potential impact that misunderstood instructions on the assembly line could pose for an automaker.

The potential for error rises when manufacturers translate content into new languages for international markets. Some businesses struggle to find a balance between their

Build solid international partnerships by ensuring your communication strategy is on point

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April 2015

aggressive, high-volume production schedule, and the exacting, deliberate pace often required of an effective localization project.

That can result in a Catch-22: do you take time to translate content and risk delaying your international rollout, or do you rush the localization project and hope that inaccurate measurements or unclear instructions don’t slip through the edit process?

Ultimately, manufacturers don’t have to sacrifice content accuracy to meet aggressive deadlines. In fact, by following several localization best practices, manufacturers can implement a well-paced translation project that ensures important engineering, product or instructional content is accurately localized for international markets. Here’s how.

Seek a specialized translation team Manufacturers need confidence in their translator of choice.

General linguists may know how to perform word-for-word translations, but the absence of technical context or familiarity can result in imprecise measurements or awkward instructions.

I N T E R N AT I O N A L M A N U FA C T U R I N G , L O C A L S U C C E S S

Local translation is essential to global success Translators with specialized technical experience are able to ensure a high quality of accuracy at speed, leaning on their familiarity of the industry to provide nuance without slowing down for clarification. Using the same translator consistently ensures a faster ramp-up, because you don’t have to re-educate a new linguist for each project.

Bringing in an engineer to support the translator also provides a valuable additional resource who can clarify key terms and measures

if needed. And relying on a separate editor offers the opportunity for routine, quality spot-checks.

Break big projects into smaller pieces Some manufacturing localization projects can involve hefty technical or instructional documents, comprising hundreds of thousands of words. Localizing a document of that size could easily result in errorriddled content that will need to be painstakingly reviewed and corrected.

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TECHNOLOGY

Keeping the global, local

‘With an effective game plan in hand, manufacturers can rely on a mix of automation, careful review and an expert localization team to achieve international growth goals’

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April 2015

Instead of translating everything at once, break these large projects into smaller ones to ensure faster turnaround times and better accuracy.

Computer-assisted translation (CAT) technology, such as Translation Memory (TM) software, can also speed the localization process by allowing project managers to automatically build a database of frequently used industry terms. Referencing this database throughout the localization process can help translators minimize redundant work and get through large content projects faster.

Implement quality checks from the start The most effective localization projects don’t wait until the very end to check for quality. Doing so can result in costly delays if the content requires heavy editing or re-work.

Reviewing and correcting localized content as it is actively being translated, and making it a collaborative effort, offers a significant time and cost-savings opportunity.

Instead of seeking clarification after the fact, an editor can verify terminology and measurements

I N T E R N AT I O N A L M A N U FA C T U R I N G , L O C A L S U C C E S S

Make sure your translation is accurate directly with translators or technical engineers as they continue to produce new, accurate content.

A TM tool can also help by allowing translators to run queries on important measurements or terminology during the localization process.

By referring back to important terms stored in the TM’s glossary, translators can apply context to decide on the judgment calls that can crop up during localization.

Speed and quality without compromise Effective localization project management enables both speed and accuracy by establishing the structure and processes needed to ensure deliver quality content on deadline. With an effective game plan in hand, manufacturers can rely on a mix of automation, careful review and an expert localization team to achieve international growth goals.

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TOP 10

Global Automotive M

Manufacturers 2015 23

TOP 10

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SAIC

SAIC Motor Corporation is a state-owned Chinese automotive manufacturer with multinational operations, and a headquarters in Shanghai, China. In 2014 the company had the largest production volume of any Chinese automaker, producing more than 4.5 million vehicles. SAIC has been in operation since the 1940s and has developed joint partnerships with manufacturers such as Volkswagen and General Motors.

SAIC products sell under a variety of brand names, including MG, a historic British car marque, and Roewe, one of the few domestic Chinese luxury car brands..

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April 2015

09

Nissan

Nissan Motor Company is a Japanese automobile manufacturer headquartered in Nishi-ku, Yokohama, Japan. Since 1999, Nissan has been part of a partnership with the French automaker Renault. Today the company sells its cars under the Nissan, Infiniti, Datsun, and NISMO brands, manufactued in their UK Sunderland plant, which is the largest of is type in the country.

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Hyundai

The Hyundai Motor Group is a South Korean multinational conglomerate headquartered in Seoul, South Korea.

It is the country’s largest automobile manufacturer, and the second largest automaker in Asia after Toyota. The group was formed in 1998 when Hyundai purchased KIA. Motor Group.

07

Honda

Honda is a Japanese multinational manufacturing company, known for its automobiles, motorcycles, and power equipment. Since 1959, Honda has been the world’s largest manufacturer of both motorcycles and internal combustion engines by volume, producing over 14 million engines each year. It became the second largest Japanese automobile manufacturer in 2001.

Honda was the first Japanese car maker to release a dedicated luxury brand, Acura, in 1986. Since then, Honda has been involved with artificial intelligence and robotics research, releasing its ASIMO robot in 2000. It has also ventured into aerospace engineering with the establishment of GE Honda Aero Engines in 2004, and the Honda HA-420 HondaJet which began production in 2012.

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TOP 10

05

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General Motors

General Motors, commonly known as GM, is an American multinational corporation headquartered in Detroit, Michigan. It designs, manufactures, markets and distributes vehicles and auto parts. The firm also provides financial services. General Motors produces vehicles in 37 countries under thirteen different brands.

The company led global vehicle sales from 1931 through 2007 (77 consecutive years) and still remains one of the world’s largest automobile producers based on vehicle unit sales.

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April 2015

BMW

Bayerische Motoren Werke AG commonly known as BMW or BMW AG is a German automobile, motorcycle and engine manufacturing company founded in 1916. It is headquartered in Munich, Bavaria. The company also owns and produces Mini cars, and is the parent company of the UK based Rolls-Royce company.

BMW produces motorcycles under BMW Motorrad. In 2012, the group produced 1,845,186 automobiles and 117,109 motorcycles across all of its brands. BMW is part of the ‘German Big 3’ automakers, along with Audi and Mercedes-Benz, which are the best-selling luxury automakers in the world.

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03 04

Ford

Ford is an iconic American car manufacturer with headquartes in Dearborn, Michigan, a suburb of Detroit. It was founded by Henry Ford 1903. Alongside automobiles and commercial vehicles sold under the Ford brand, the company also sells luxury cars under its Lincoln brand. The company also owns Brazilian SUV manufacturer, Troller, as well as FPV, an Australian performance car manufacturer.

Ford is listed on the New York Stock Exchange and is controlled by the Ford family, although they have minority ownership. It has been famously described by Forbes as “the most important industrial company in the history of the United States.”

Daimler

Daimler AG is a multinational automotive corporation, headquartered in Stuttgart, Germany. In addition to cars, the firm also manufactures buses in addition to its own financial services arm. As of 2014, Daimler owns or has shares in a number of automotive and motorcycle brands including Mercedes-Benz, Smart Automobile, Freightliner, and Western Star. The Maybach brand originally closed at the end of 2012, but was revived in November 2014 as ‘Mercedes-Maybach’, an ultra luxury edition of the MercedesBenz S-Class car. This brand is particularly well known for its celebity endorsements.

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TOP 10

02

Volkswagen

Volkswagen is an automobile manufacturer headquartered in Wolfsburg, Germany. Established in 1937, it is the top selling and namesake marque of the Volkswagen Group, the holding company created in 1975 for

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April 2015

the growing company. It is now the biggest automaker in both Germany and Europe.

Volkswagen’s top selling vehicles are the Golf, the Beetle, and the Passat. Volkswagen translates from German as the ‘people’s car.’

Its current international slogan is simply ‘Das Auto’ (The Car).

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Toyota

Toyota is a Japanese manufacturer whose name is shared with the location of its headquarters in the Aichi region of Japan. In 2014 the corporation consisted of over 300,000 employees worldwide and became the twelfth-largest company in the world by revenue.

Toyota was the world’s first automobile manufacturer to produce more than 10 million vehicles per year, doing so in 2012 and 2013 according to company data. 2014 also saw Toyota become the largest listed company in Japan by both market capitalisation and revenue, which made it worth more than twice as much as second highest ranked company.

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How packaging manufacturer Firstan stays ahead of the game What can we learn about holistic sustainability from a leading packaging producer?

Written by: Nye Longman Produced by: Marc Lewis

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F I R S TA N

Firstan’s die cutting machines are far cry from the first models used nearly 40 years ago.

F Clients always

irstan supplys elite packaging services to an impressive roster of clients from the manufacturing and pharmaceutical industries. In the run up to celebrating its 40th year of production, the company is investing in both its technology and its people power to stay ahead in a very competitive and often challenging market.

The company remit covers full packaging design and production using the latest technologies, and also extends to braille implementation and brand protection.

recognises the ingenuity of Firstan’s design team

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April 2015

Operations Production Director Paul Hartwig often eschews complexity when it comes to his manufacturing methods, preferring to defer to, “common sense” as often as possible. This homespun process

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

seems to be working, he declared, “In some instances we are going from a phone call to producing 100,000 cartons in 24 hours.”

Key members of the company meet on a monthly basis to discuss key business issues.

Members of the ‘Continual Improvement Team’ discuss project progress and what the future may bring, as well as the latest developments in technology. Not only do regular meetings like this galvanise the vision of a company, but they also provide different sections of the business with a platform to communicate.

Firstan is ISO14001 Accredited, which means that it is actively reducing waste within the company, and making best use of its materials.

“In some instances we are going from a phone call to producing 100,000 cartons in 24 hours.”

– Paul Hartwig, Production Director

Left: Paul Hartwig, Production Director.

Right: Andrew Hartwig, Managing Director

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F I R S TA N

Firstan recognises that protecting the environment often

Firstan uses paper suppliers that compy with the PEFC 34

April 2015

Not only does the company ensure that the paper it uses complies with the established guidelines set by the Forestry Stewardship Council (FSC) it also uses paper suppliers that comply with the PEFC (Program for the Endorsement of Forest Certification.) This commitment to high standards in an industry as paper-hungry as print is certainly refreshing but also took on a more personal note, when Hartwig told us, “We know our suppliers aren’t ripping up trees in rainforests and kicking orang-utans out of their homes.�

Further to reaching its goal of zero carbon emissions, Firstan turned to a local source to

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

ensures long term profit

secure its haulage requirements. Aside from reducing the distance between the haulier and the Godmanchester factory, the contractor exploits its strategic position on the A1 corridor to ensure that its lorries do not return with empty containers. For a company in a sector that relies so much on distribution, this initiative represents a gold standard for transportation, one that is both “cost efficient and environmentally friendly� according to Hartwig.

Management meet on a regular basis to strengthen their vision

People Management Firstan recognises that sustainability is a concept w w w. f i r s t a n . c o . u k

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China | India | Indonesia | Malaysia | Philippines | Italy Saudi Arabia | Switzerland | Thailand | UAE | Vietnam

April 2015

Sales Office mark@carosam.com john@carosam.com

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

that applies as equally to its staff as it does the environment, and this paradigm has enabled the company to foster a loyal and aspirational workforce. Hartwig warmly informed us, “We have a few people that have been with us for over 20 years, some travelling probably for an hour each way… some people even drive past a competitor of ours on their way here, which tells you something!”

Alongside a happy and motivated workforce, loyalty to this degree enables a company to retain employees that are experts in the industry, and who have experienced the growth of the business first hand.

The company is keen to invest in the development of its employees, overseeing it all with an expansive computerised HR system that Hartwig and the rest of management use to, “see what skills are around us.” Furthermore, he stated, “Management are basically talent scouts. We have a low turnover of staff… if you look at employees past history, we have seen people go from shop floor to director level.”

In line with the firm’s operational goal of becoming a zero carbon company, Firstan is keen to see that best practice begins at the top, with managers becoming role models for the rest of the company; this is headed by a dedicated training initiative that helps management comply with the strict standards of the ISO14001 accreditation.

Putting the talent to work Utilising cutting edge developments in

Firstan uses the HR software to manage its talent

“Management are basically talent scouts. We have a low turnover of staff… if you look at employees past history, we have seen people go from shop floor to director level.”

Paul Hartwig, Production Director

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F I R S TA N

The company exploits its enviable position on the A1 38

April 2015

manufacturing technology has not only ensured the durability of the company in the face of sometimes adverse market conditions, but has also created a system that delivers fantastic results for its customers. Perhaps the most interesting example of this is the adoption of Xrite colour management systems, which has reduced make ready times by up to 30 percent, as well as cutting waste by 50 percent. This surely represents the ‘sweet spot’ of implementing new tech – delivering returns to the business, the customer, and the environment.

Hartwig is proud of the work his design team does, he said, “We supply to a lot of major retailers, and the feedback we get is that they have not seen anything as creative as Firstan.”

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

He added, “Especially within the pharma industry we’ve got demand for packing that is tamper evident and has hidden or covert security features… Innovation is more and more being sought by our customers and our design department has focused heavily on that area so we’re ahead of the crowd.”

Alongside the methods used to successfully deliver pharmaceutical standards, the company also offers a range of overt and covert measures to ensure that its client’s brand is strongly protected from criminal counterfeiting measures.

Conclusion To sum up, Firstan is an effective, forwardthinking company, whose dedication to quality and sustainability concerns has earned it a reputation for delivering for both its clients and the environment. Hartwig summed up its ethos best when he said, “We’ve always forged good relationships” and this, in essence, is the insight that puts this company out in front. Whether it’s the employees, its materials, or the very technology that powers the business, Firstan has every detail covered. The innovation that drives its product solutions spills over into the rest of the company, investing each decision with the confidence to wander off the beaten track.

Returning to the director’s homage to common sense – it would be truly refreshing if the sense that is so engrained in Firstan were seen by every company, not just the packaging sector.

Company Information INDUSTRY

Manufacturing HEADQUARTERS

Godmanchester FOUNDED

1976 EMPLOYEES

Not disclosed REVENUE

Not disclosed PRODUCTS/ SERVICES

Folding Carton Manufacturer

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Integral solutions for automotive and truck components

Top-level component manufacturing under “zero defects� standards.

Written by: Rebecca Castrejon, Editor Translated by: Rafael Tablado, Associate Editor Produced by: Taybele Piven, Latin America Project Director Interviewee: Ing. Manuel Valdes, General Director for SISAMEX

SISAMEX

S World-class parts for the

ISAMEX, S.A. de C.V. (Automotive Systems of Mexico) is a Mexican manufacturing company producing components for commercial vehicles, trucks, tractors and offhighway agricultural vehicles. The components SISAMEX manufactures include axle and other shafts, axle and carrier assembly, steering knuckles, powertrains, gear trains, differentials, brake systems, casing and other components for wheeled vehicles.

automotive industry

Headquarters

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April 2015

A Brief History of Partnerships and Acquisitions SISAMEX began operations in January 2003, after being conceived as a joint venture with equal investments by Grupo Quimmco—an industrial corporation formed by companies in the construction, chemical, metal-mechanic and manufacturing sectors—and Meritor—a supplier of traction, transmission, brakes and after-sale solutions for commercial vehicles.

The company’s history began 30 years prior, in 1975, when DINA, a truck and bus manufacturer, Nacional Financiera bank and Rockwell International formed DIRONA as a joint venture. By 1994, DIRONA acquired SUDISA, axle manufacturer and distributor of parts. DIRONA’s restructuring in early 2003 brought in SISAMEX, the joint venture between Quimmco and Meritor.

The enterprise became a tier one supplier of vehicle parts to brands such as John Deere, CNH, AAM, Daimler, Caterpillar, Navistar, Magna, Axle

L AT I N A M E R I C A

Alliance, International, Freightliner, Kenworth, Blackhawk and Mercedes Benz.

It currently operates three facilities in strategic cities in Mexico; two of SISAMEX’s major assets are its production facilities in Escobedo, Nuevo Leon and Guadalajara, Jalisco in the strategically important western auto industry cluster.

SISAMEX CEO Manuel Valdes revealed, in an interview, the company’s efforts to maintain their leadership in auto parts manufacturing, top-level performance in every procedure and his vision for the next five years. From a perspective of social responsibility, SISAMEX’s goals will positively impact Mexico because community programs will be created and there will be growth in the auto industry among contributing enterprises, suppliers and workers.

CSR: Sports summer camp and environmental workshops by SISAMEX

Key People

Manuel Valdés General Director for SISAMEX Valdes -a mechanical engineer-, graduated from ITESM (Monterrey Institute of Technology and Higher Education) in 1989. In 1993 he entered North Carolina State University, where he earned a Masters’ degree in manufacturing engineering with a co-major in administration. Valdes is part of SISAMEX since 1989, serving in different areas. By 1997 he was the purchasing and supply chain manager; in October 1999 he was promoted to the business and acquisitions department.

In early 2007 he switched companies to Meritor, taking over as Global Senior Manager for supply chain. He came back to SISAMEX in 2008 as COO and in January 2011 he was appointed CEO for the company.

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SISAMEX

L AT I N A M E R I C A

Valdes, a mechanical engineer, is also a directive with more than 25 years of experience in the automotive industry. He has worked for Meritor and became CEO of SISAMEX in January 2011.

“I’ve proudly witnessed SISAMEX’s development during the last 25 years from a midsized company into a large, leading enterprise.

I’m most proud of contributing to this evolution and building SISAMEX’s prestige. However, I admit there’s still room for development,” Valdes said.

Shortening the gender barrier within the

Organized Logistics and Procedures The SISAMEX production system is comprised of lean manufacturing principles, compliance

production plant

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Sitio web: www.timken.com

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C O M PA N Y N A M E

Inside the assembly plant

“... We keep searching for markets where our clients could benefit from our products’ presence” – Manuel Valdés, General Director, SISAMEX

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with standards and safety measures and quality control. Other key factors are the optimized management of human resources, sharing values between administrative staff and plant employees, organizational strategy and timely planning for integral development.

Research & Development for Innovation and Technology, Sustainability and Quality and Managerial Excellence departments have been developed, in addition to production and management at SISAMEX, to maintain its leadership within the industry.

“SISAMEX considers constant innovation within manufacturing procedures so we can offer our clients competitive, avant-garde products derived from different, custom-designed processes developed in our Human and Technological

SECTOR

Opening of the Tech and Human Development Center

Development Center; a department which supports our status as leaders in product and system delivery,” commented Valdes.

The company provides integrated solutions for the local automotive industry, by manufacturing axles, brakes and assemblies for trucks and tractors Class 5-8, and vehicles for agricultural use. Over 80 percent of its production is intended for vehicles that are exported.

“We have diversified our product line and clientele. We try to export our products to different places worldwide. Our products are already being exported to North America and Germany. We keep searching for markets where our clients could benefit from our components and systems,” added Valdes.

Safety training

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Established in 1995, Aztek Technologies is a leader in the manufacture and assembly of metal parts. Offering and extensive range of materials, industry certifications and flexibility, allowing us to service all industrial markets.

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SISAMEX

L AT I N A M E R I C A

World-Class Quality As a global manufacturing company, SISAMEX works under a Zero Defects program, in compliance with clean industry standards and with the sector’s best practices.

“We rely on our skills and capabilities being enhanced by scientific and tech developments to achieve differentiation and to supply comprehensive solutions through unique procedures,” the executive proudly stated.

The company’s commitment to global quality has been recipient of awards, certifications and accolades such as the Master of Quality Award, the Paccar Quality Prize, a distinctive H from Mexico’s tourism board, OHSAS 18001 health and workplace safety standards and ISO 9001:2008 for quality management, among others.

“SISAMEX considers constant innovation within manufacturing procedures, so we can offer our clients competitive, avant-garde products” – Manuel Valdés, General Director, SISAMEX

Green Technology SISAMEX’s procedures follow strict guidelines for manufacturing and to supply clients’ top quality components for vehicles without any significant impact on the environment. One of their programs has reduced power consumption in production facilities. The company also developed a Kaizen program for continuous improvement by organizing and clearing production lines.

Automation of the plants’ cooling stations reduces greenhouse-effect emissions.

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SISAMEX a constant reduction in polluting elements, and raising awareness among our staff about adequate resource management and avoiding unnecessary waste,” Valdes pointed out.

Suppliers In accordance with their quality policies, SISAMEX demands the same quality control policies from their suppliers and materials.

The company awards a Supplier’s Excellence recognition at years’ end based on timely deliveries, PPM defects and rejected goods.

“We have logged a very good record of alliances with our suppliers overall. We consider

Automation in cooling stations

www.schmid-maschinen.de

Schmid Maschinen Quality is put into production Machining centres HSK 63 to HSK 100 Twin-Spindle machine Flexible production systems Special machine tools Complete plants Engineering Hydraulic units

Schmid GmbH Maschinenbau Rißstr. 29 · D-88400 Biberach Germany Tel. +49 7351-1832-0 info@schmid-maschinen.de

L AT I N A M E R I C A

them strategic partners helping us to fulfill our goals. After purchasing anywhere in the world, somehow we search for supplies nearest to us. And they have followed suit by opening distribution centers in Monterrey and Mexico,” explained Valdes.

Engagement with the Community As a socially responsible company, SISAMEX’s involvement in the country’s development goes beyond industrial and business activities. It also engages employees offering courses on human development, family values, culture and care for the environment.

The company has received recognition from CEMEFI, the Mexican Center for Philanthropy, for its sustainability model and programs for outreach to the community. SISAMEX has also been certified by PROFEPA, the Federal Bureau for Environment Protection, as a clean enterprise.

Some of the company’s most important programs are:

“We rely on our skills and capabilities being enhanced by scientific and tech developments to achieve differentiation and to supply comprehensive solutions through unique procedures” – Manuel Valdés, General Director, SISAMEX

1. Education promoters: SISAMEX has sponsored 27 students for high school and college completion.

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SISAMEX

Excellent suppliers

3. Community outreach programs:

A socially responsible company

pre-Christmas celebrations, Mother’s Day, Women’s Day, Children’s Day, Christmas toy giveaways, support for the local DIF—the National System for Holistic Family Development—and natural disaster aid.

The Next Five Years for SISAMEX Valdes added that even though plans are revised and updated yearly, the company already has growth projections for the next decade within

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Company Information NAME

Sistemas Automotrices de Mexico S.A de C.V. (SISAMEX) INDUSTRY

Global manufacturing HEADQUARTERS

General Escobedo, Nuevo Leon, Mexico FOUNDED

1975, Environmental excellence provided by the Kaizen program restructuring in 2003 EMPLOYEES

the domestic and global markets: “Our plan for the next five years is to keep working with excellent standards in manufacture, cutting-edge technology and developing our sustainability with the best ways to optimize how we use our resources.”

1,900 REVENUE

USD $615 million WEBSITE

www.sisamex.com.mx

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NAFTA’s Leading Contributor to Vehicle Performance, Diagnostics and Innovation Continental Automotive Guadalajara designs the most innovative devices and tech developments for every day vehicle use.

Written by: Mateo Rafael Tablado, Associate Editor Interview by: Rebecca Castrejon, Editor Produced by: Taybele Piven, Manager of Projects for Latin America Interviewee: Alejandro Sauter, CEO for Continental Automotive Guadalajara

C O N T I N E N TA L A U T O M O T I V E G U A D A L A J A R A

C Inside the plant Continental

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ontinental is perceived globally, and by the general public, as a tire manufacturer.

This is only one of several roles the corporation plays in the automotive industry.

Aside from the different uses of rubber—in on and off-highway vehicles, conveyance systems, sealing surfaces and more—Continental also designs, develops and manufactures different components attached to vehicles’ safety, diagnostics, and performance measurement.

Continental Automotive Guadalajara’s history can be traced back a few decades in which Mexico’s economy experienced an interesting transformation process. German multi-industry company Siemens operated in Mexico before the beginning of the 20th century. At that time, imported goods were scarce and it was before Mexico was incorporated into the GATT and the development of NAFTA in the 1990s. The Mexican automotive industry boom, which sprouted manufacturing clusters in the neighboring regions of central lowland El Bajio and western states Jalisco and Aguascalientes, became the perfect stage for the inception of Siemens VDO automotive division—first known as Siemens Automotive Systems. This business unit was acquired by Continental in 2008. It operates plants across the country. These include three exclusive Continental Automotive Guadalajara division facilities where engineers and specialized personnel deliver cluster boards, electric and electronic sensors for vehicle operations, airbag

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safety systems, air pumps, and other automation-enabling devices, key to tasks such as driverless parking.

“I’m proud of this operation’s development, starting in 1993 with 18 employees and currently nearing 6,000,” shared Alejandro Sauter, CEO for Continental Automotive Guadalajara.

Sauter graduated from Universidad Iberoamericana as an electronic and communications engineer. Eventually, he came to specialize in subjects required by more demanding tasks such as business management, leadership and upper-level management. He started working for Siemens more than 30 years ago in Mexico City, moved to Guadalajara in 1982 with the Telectra Siemens manufacturing unit and remained in the automotive division after the acquisition by Continental.

Key People

Alejandro Sauter CEO for Continental Automotive Guadalajara Sauter graduated from Universidad Iberoamericana (Mexico City) as an electronic and communications engineer.

With the passing of time, he specialized in subjects required by more demanding tasks, such as business management, leadership and upper-level management. He started working for Siemens more than 30 years ago in Mexico City, moved to Guadalajara in 1982 with the Telectra Siemens operation, which closed in 1989, and remained in Siemens, developing the automotive division, Siemens VDO, in 1992. He remained with the company after Continental’s acquisition. He started as a test engineer and afterwards held different positions, such as being in charge of different areas and managerial roles, until being appointed into upper-level management.

R&D center at Continental Automotive Guadalajara

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“I started as a test engineer and afterwards held different positions like being in charge of different areas, managerial roles, until arriving at top-level management,” Sauter summarized.

Fulfilling the NAFTA Region’s Demands Some of Continental Automotive Guadalajara ‘s operations and production agenda are the consequence of Mexico being in NAFTA and its clients’ demands. Continental is a tier-one global supplier to manufacturers such as Audi, BMW and Mercedes-Benz.

Other clients include manufacturers settled in Mexico. Continental Automotive operates different plants across the country each one specialized in a specific component.

Showing the global auto manufacturing brands

SUPPLIER PROFILE Employees: 4,056 as of March 31, 2014 Established: December, 1966 Industry: Automotive, Medical, and Industrial Equipment Services: Connectors Webstite: www.iriso-connect.com

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Groundbreaking ceremony for the construction of the new Continental research center, with the Governor of the State of Jalisco

“I’m proud of this operation’s development, starting in 1993 with 18 employees and currently nearing 6,000” – Ing. Alejandro Sauter, CEO, Continental Automotive Guadalajara

“Many of our clients are opening manufacturing plants in Mexico. We fulfill their demands as soon as we receive their requirements,” explained Sauter.

Another determining factor of the company’s operations is knowing that Mexico exports most of its production. Of 3.2 million cars manufactured every year, less than half a million are sold in Mexico.

“Our purpose is to manufacture within the region for the region,” the executive said.

Tire Manufacturing As Common Ground, But Not the Only Goal On a larger scale, Continental’s operations in Mexico are performed within three divisions:

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SECTOR

· Continental Automotive, where sensors, safety devices and other components engineered for vehicle performance are developed. · ContiTire, tire manufacturer for cars, commercial vehicles, like trucks and buses and off-highway agricultural vehicles, supplying both new and after-sale markets. · ContiTech, rubber and plastic applications such as hoses, conveyance bands, sealing material and others “Our most familiar product to the general public is tires,” Sauter stated.

Inside Continental Automotive

Segmented Supply Chain

Guadalajara’s production plant

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and electronic components are imported from Asia. Mexico and the rest of the NAFTA region supply the company with cases and cabinets made of plastic, aluminum and other materials.

Some of the traits shared by Continental Automotive Guadalajara’s supplier roster are excellence in service, quality, price and timely delivery; stressing each of these aspects results in mutual success.

“Most of the success we have accomplished up to date is a result of dedicated, mutual efforts along with our suppliers, whom who we work very close to,” Sauter said.

High-performance components for the

The Essence of Tech Development Itself

automotive industry

Different from other companies established in

SUPPLIER PROFILE Employees: 732 Established: 2008 Industry: Automotive Services: Screen Printing, Forming, Press Cutting, Molding, Spray Painting, Laser Etching, Chrome Plating, and Assembly Ongoing Projects: Meter Dials, HVAC Panel, Knobs and Buttons, Shifter Cover, Chrome Trim and accents Management: Akira Sakaitani, President; Minako Ushijima, General Director; Ryuji Miyazono, Operations Director Website: www.iriso-connect.com

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C O N T I N E N TA L A U T O M O T I V E G U A D A L A J A R A

High quality components for the auto industry

Mexico, Continental Automotive Guadalajara is not focused strictly in assembly line manufacturing. Rather, it’s the epicenter of new tech developments and device creation. The company already participates in the manufacture of three vehicles operating under autonomous car-maneuvering systems. Exciting new automobile features like automatic parking, driver-less driving, and others, are a long way from arriving in the Mexican auto market.

However, the development of these technologies is happening in Mexico.

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“In Mexico we have young, educated professionals who can create and design products which in other countries may not raise the same interest,” Sauter stressed.

Sustainability Into Projects’ Purposes Like many other properly-established companies, Continental Automotive Guadalajara is certified for operating under quality and environmentallyfriendly standards such as ISO 16949 and ISO:14001. But the company’s most important contribution to decreasing its carbon footprint is developing cleaner transmissions for everydayuse vehicles.

The company has also participated in the development of high-potency vehicles with less than four cylinders and hybrid vehicles manufacturing.

“We are contributing to global automotive sustainability,” Sauter pointed.

Optimization of the Human Team’s Performance

“Most of the success we have accomplished up to date is a result of dedicated, mutual efforts along with our suppliers, whom who we work very close to” – Ing. Alejandro Sauter, CEO, Continental Automotive Guadalajara

Successful operations at Continental Automotive Guadalajara are also result of its work environment. The company is the second best Great Place To Work among western Mexico’s enterprises with 5,000 or more employees.

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C O N T I N E N TA L A U T O M O T I V E G U A D A L A J A R A performance becomes better than anywhere else,� Sauter explained.

Upcoming Market Trends to Determine Next Challenges

Continental Automotive products, up to global standards

In the same way that clients’ necessities play an important role in deciding design and manufacturing plans for Continental Automotive, the fact that several auto manufacturers are establishing production plants in Mexico is also determining for Continental Automotive to

Manufacturer of specialty engineered thread forming fasteners and cold formed components.

Proud to be a partner supplier of

QUALITY

INNOVATION

TEAM SPIRIT

CUSTOMER FOCUS www.ejot-atf.com

CONTINUOUS IMPROVEMENT

L AT I N A M E R I C A

develop more important projects for its operation within the country. The mindset of seeing the entire NAFTA territory as the company’s “region,” well beyond the western Mexico auto industry cluster, is an accurate position for the company.

“The trend we will follow during the next five years is to remain in Mexico, catering to our clients’ demands,” the executive concluded.

“Many of our clients are opening manufacturing plants in Mexico, we fulfill their demands as soon as we receive their requirements” – Ing. Alejandro Sauter, CEO, Continental Automotive Guadalajara

Company Information NAME

Continental Automotive Guadalajara INDUSTRY

Automotive components and devices for performance diagnostics, measurements and safety systems HEADQUARTERS

Tlajomulco de Zuñiga, Jalisco, Mexico FOUNDED

1993, acquired by Continental in 2008 EMPLOYEES

6,000 REVENUE

USD $1,500 million WEBSITE

www.conti-online.com

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PWO de Mexico: Capitalizing on the German Tradition in Automobile Component Manufacturing to Serve Mexico PWO de Mexico uses the best of German technology to build the automobile components that provide drivers with safety, comfort and pleasure.

Written by: Tomas Lucero, Associate Editor Produced by: Taybele Piven, Director of Operations for Latin America

PWO DE MEXICO History

The future of Werk Oberkirch AG in the manufacturing industry in Mexico

Heat shield component

P

WO de Mexico’s origins are in the city of Oberkirch, in the Baden region of Southwest Germany. That’s where 90 years ago, the German, Progress Werk Oberkirch AG (PWO AG)—PWO de Mexico’s parent company— was first founded. PWO AG’s motto was always “Automobile markets without limitations.” Going back to the 90’s, PWO AG had already started making a place for itself in the global automobile markets. It started by partnering with other companies until it succeeded in opening its own factories. In 1997, it achieved its first acquisition in Canada. After that, it opened its own plants in the Czech Republic, China and Mexico.

PWO de Mexico makes metal components and structural parts for vehicle frames and chassis.

The products that PWO de Mexico makes vanish into the car and remain, almost completely, invisible. Nevertheless, you can still appreciate their contribution to the safety and comfort of your vehicle.

Present Day Operations in Mexico PWO AG has a new production and logistics plant covering an area of 3,000 square meters in Puebla, Mexico. This space allows for the combining of production and shipping processes as well as sustaining the expected growth in volume. The factory includes office space for production-related activities.

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The space previously used for logistics may now be used to house the planned growth.

There are plans in place to make constant improvements to the site’s operational processes.

This means that additional aspects of “lean management” from the successful PWO Productive Systems will be implemented.

Electronic engine cover for each window

Technology and Innovations Along with developing vast knowledge about how to make mechanical components for electric systems, security components for air bags

PWO Headquarters in Puebla w w w. p w o - m e x i c o . c o m . m x

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PWO DE MEXICO

Center seat structure

Development of processes and products

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and seats and system solutions for car frames and chassis, it developed new and innovative processes. PWO de Mexico has achieved this by working closely with its clients and providers. The result of this multi-partner collaboration created a type of simultaneous engineering where PWO de Mexico and its partners found unique solutions in half the time. The knowledge we gather from the manufacture of our components has a vast array of other practical applications. For example, we can measure a component’s resistance to test installations within a system. It’s also useful to program the control mechanisms of the CNC machines used to build tools and prototypes.

Capitalizing on PWO-AG’s 90-year tradition in building metal components, PWO de Mexico is an heir to top manufacturing, forming, connection, assembly, surface and testing technologies.

In manufacturing, PWO de Mexico utilizes precision, forming and connection technologies to perform many processes, like stamping, MIG soldering and structural bonding, among many others. It also has access to automated assembly technology.

The centerpiece of our forming technology arm is our group of more than forty presses and automatic stamping and punching machines which operate at between 600kN and 12,000Kn. We work with university departments and our partners in the machine construction industry to improve our forming processes.

PWO de Mexico has access to an impressive

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wealth of knowledge in welding, riveting and pressure joining technology. To join aluminum and stainless steel we use automatic laser and automatic soldering technology.

Our aim in the use of assembly technology is to strike a balance between automation and flexibility. To work towards this goal, PWO designs its own systems and develops them together with our partners in the plant and machine engineering industry.

Just as we capitalize on the knowledge of our highly qualified partners in the development of our assembly technologies, we practice the same diligence as we work in partnership to develop our surface technologies. We have access to machines dedicated to degreasing, barrel finishing and hardening.

The business of assembling components is highly demanding and requires well thought out solutions. To assemble components of the highest quality possible we have developed our testing technologies. The integrity of our tests assures the integrity of our assembly processes, helping us build components with their proper dimensions. In addition to our great variety of measuring tools, we also use our own optoelectronic methods for testing. Finally, we deploy cameras equipped with analysis software to evaluate the precision of our machines.

Manufacturing technologies

“Once the process is put in motion, the system is subject to preventive adjustments and repairs by the production team�

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PWO DE MEXICO

Thermal shields

Air suspension component

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Products and services Each of the labor methods PWO de Mexico deploys has a specific goal in mind that benefits the automobile driver—its final client. The company practices accuracy in its processes to create a greater sense of pleasure while driving. It encourages technological innovation to achieve a greater degree of comfort inside of a vehicle. It works towards technological excellence to reach the highest possible grade of protection for the auto driver.

The average automobile component manufacturer faces a variety of challenges.

Each year, other components and systems take up more and more space. Also each year, car designs change to remain aerodynamic. In spite of these variables, PWO de Mexico faces these challenges with great success. It relies on its own design capabilities as well as the latest manufacturing processes to build excellent components capable of adapting themselves to the car’s body. An example of this ability is the thermal shield. These are linings especially designed to protect against the sun and reduce noise. This is greater pleasure while driving.

When a consumer looks at a car he may think that it only has one engine, the engine that turns gasoline into energy to move the car. The reality is very different.

Since the modern automobile is designed and manufactured with more and more electric systems to power its different components,

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it is full of small motors. It follows that these motors come with their own subcomponents like axles, magnets and bearings. PWO de Mexico is responsible for creating the housing, or the frames, for all of the motors and their subcomponents. Some examples of motorpowered components in a car are power windows, brakes, and steering. These motors need to last year after year. Its enemies are the sun and the radiation that can be emitted from other components. Housings made by PWO de Mexico achieve the protection of a motor for years because its metal frames are built under the highest possible standards. The proper functioning of convenient functions like power windows and locks is greater comfort.

The seat is one of the most important components of a vehicle. It’s the place from where we operate the car. It’s where we rest comfortably, or uncomfortably, depending on the seat’s design. Two sets of criteria determine how well an automobile seat will perform. First, it needs to be equipped with an adjustment system capable of fulfilling the needs and demands of the passenger. Second, and definitely most important, the seat needs to be equipped with a safety mechanism. PWO de México designs security and adjustment components using the best raw materials and latest processes.

A car seat equipped with PWO de Mexico components is safer and more comfortable but it cannot prevent an accident. In such an instance,

Cabin support

“Once the tools to produce the components are developed and the equipment has been assembled they are subjected to a fine tuning process”

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PWO DE MEXICO the proper functioning of the airbags can be a matter of life and death. The air bag must be able to open properly and fast enough. To do this it needs to be equipped with a high quality accumulator. PWO de Mexico has a long track record of making accumulators and other air bag components. A safe and comfortable seat, just like a trusty air bag, is greater protection.

Even the most insignificant component that we develop must be perfect before it’s installed in a car. PWO de Mexico employs a safety process to reduce the probability of error as close to zero as possible. To start, we have the equipment and

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the expertise to develop our own sample tools and prototypes. We own the most advanced CNC machines. We also have teams of CNC machine operators with years and years of experience. Our engineers are supported by the CNC machinists as they develop a component. “Once the tools to produce the components are developed and the equipment has been assembled they are subjected to a fine tuning process. The final adjustments are implemented by a team from members of the production, planning, and construction departments. Once the process is put in motion, the system is subject to preventive adjustments and repairs by the production team. Putting together our equipment, human resources, and quality control methods we can produce sample tools and prototypes of the highest caliber�.

Company Information NAME

PWO de Mexico INDUSTRY

Auto parts manufacturing HEADQUARTERS

Chachapa, Puebla, Mexico FOUNDED

PWO acquired Cartec in 2008, Cartec was founded in 1990 EMPLOYEES

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This article will continue on May, 2015.

REVENUE

USD $70 million WEBSITE

www.pwo-mexico.com.mx

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Premier supplier of acous for the Automotive Industr

With production facilities in Michoacan and Guanajuato, Ja expansion into Mexico is finalized. Increasing their product Industries, Inc. standards, these facilities have increased t thriving parallel to the development of Mexico’s automotive Written by: Rebecca Castrejon, Editor Produced by: Diego Pesantez, Manager for Manufacturing Projects Interviewee: Claudia Cervantes, Managing Director for Janesville de Mexico

stic insulation ry

anesville Acoustics’ tion line Under Jason their production and are e manufacturing industry.

JANESVILLE DE MEXICO Global Presence

J Inside one of Janesville production facilities, in Mexico

Prizes for quality in manufacturing procedures awarded to Janesville

anesville de Mexico is a subsidiary of Jason Industries, Inc., the parent of an international family of leading manufacturers in the markets of seats for off-road vehicles and motorcycles (Milsco), industrial brushes and polishing compounds (Osborn), expanded metal and perforated metal (Metalex), and acoustical fiber insulation and fiber-based molded and die cut products for the automotive industry (Janesville Acoustics).

All divisions supply to their customers under the “Jason Business System� which provides an opportunity to share best practices among them, from costs and overal quality to innovation an continous improvement.

The corporation employs over 4,400 people in the 15 nations where it operates.

Founded in 1875, Janesville Acoustics has its headquarters in Southfield, Michigan, with factories and branch offices in USA (Michigan, Ohio, Mississippi, North Carolina, Indiana and Missouri) and in countries like Germany and Mexico. It is one of the leading suppliers to the automotive industry, deserving several awards for his performance as a leading supplier and manufacturer of auto parts.

Current Operations in Mexico Janesville de Mexico is a leading supplier of

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acoustic insulation and fiber-based applications for the automotive industry. The company is a tier-1 supplier to Fiat-Chrysler and GM, and tier-2 for other global companies such as Ford, Nissan, Toyota, Honda, Volkswagen and Tesla.

Janesville’s Mexican operation first opened in 1990 in Hermosillo, Sonora. 10 years later, the company moved to Uruapan, Michoacan, near the western auto industry cluster in Mexico. The development of the Bajio automotive cluster demanded the construction of a second plant, opening in May 2012 in Celaya, Guanajuato.

The recent opening at Celaya has proven to be a sound strategic decision. It enhances Janesville Acoustics’ presence, operations and business capabilities. The $5 million investment translated into a 90,000 square foot facility and 150 new jobs for the state of Guanajuato.

Production facility in Uruapan, Michoacan

Key People Claudia Cervantes Managing Director for Janesville de Mexico

Cervantes is currently the Managing Director for Janesville de Mexico, affiliate of Jason Incorporated and a leading supplier in North America’s automotive industry.

Cervantes tenure in Janesville has lasted for more than a decade, as she was first hired in January 2003. The executive received postgraduate education from the well known Monterrey Institute of Technology and Higher Education after graduating from accounting at Don Vasco University, in Uruapan, Michoacan.

02 Recently open production plant, in Celaya, Guanajuato

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Inside one of Janesville production facilities, in Mexico

“We expect to grow the Celaya plant’s capacity within the next five years” – Claudia Cervantes, Managing Director for Janesville de México

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This second manufacturing plant’s new production lines increased Janesville de Mexico’s production capacity to more than 2.2 million pieces per year. New additions to the production line included a felt line to manufacture the company’s own materials such as Marabond®, Maratex®, Polytex Nano® and Syntex®, compression molding presses and water jet cutters.

Environmentally-friendly Enterprise

SECTOR

As a leading supplier of auto parts, Janesville of Mexico has been dedicated to the manufacture of parts whose function is to isolate the noise and heat of the passenger cabin and also to produce interior fiber molded decorative parts for various applications. Manufacturing procedures take place according to Jason Industries, Inc’s manual for best practices, which are intended to minimize negative impacts on the environment.

A large amount of Janesville’s raw materials are made from recycled materials such as PET bottles and rags from the textile industry. The company’s w w w. j a n e s v i l l e a c o u s t i c s . c o m

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Janesville management team in Mexico. From left to right: Eduardo Paz (Director of Sales), Héctor Gómez (Director of the Plant in Uruapan), Cristhian Mejía (Director of Supply Chain), Antonio Moreno (Director of Research and Development), Azucena Valerio (Director of the Plant in Celaya) Alicia López (Director of Human Resources), Claudia Cervantes (General Director), Angeles Sánchez (Director of Finance), Teresa Espinoza (Director of Projects and Quality System)

manufacturing systems also allow for a reuse of more than 3.5 million kilograms of processed machined fiber, preventing the material from ending up in landfills.

Projected Growth During the next five years, Janesville de Mexico’s presence is projected to increase and grow hand-in-hand with the rest of the manufacturing industry in the country. This sector benefits from its strategic and commercial location next to the region’s most developed economies.

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Opening of the Celaya plant

to our clients’ location. We are at a stone’s throw from several vehicle-manufacturing plants.

It makes perfect sense,” said David Cataldi, president of Janesville Acoustics.

The corporation’s plans for global growth are quite aggressive, through acquisitions and organic growth strategies.

Janesville de Mexico stands out for setting the highest quality standards, starting with developing their staff’s specialized skills to every procedure of their manufacturing process.

This has been a key factor in their compliance certification with ISO/TS standards (Quality for Automotive Requirements) and ISO:14000 (for environmentally-friendly procedures). Additionally, 80 percent of vehicles manufactured in Mexico

Innovative Entrepreneurship award being received by Janesville de Mexico

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A look into the new plant, in Celaya

have at least one part produced by Janesville, a fact that accounts for the company’s presence and leadership among the country’s automotive industry.

THE INTERVIEW: The achievements placing Janesville de Mexico a top Mexican auto manufacturers’ supply chain list, the company’s plans for the short-term and domestic expansion, among other issues, were addressed by the company’s managing director for Mexico, Claudia Cervantes, in the following interview.

Business Review America Latina: What should be expected from Janesville de Mexico during the next five years?

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JANESVILLE DE MÉXICO Claudia Cervantes: We are a dynamic entity, constantly upgrading our operations. This is why we will engage in a vast quantity of projects this year and upcoming ones. We are currently in the middle of SAP implementation, configuring it for deployment into the company’s manufacturing plants in the United States. Since this facility will become a direct supplier to General Motors in 2016, by the end of this year the Celaya plant will also be certified under ISO:14000 standards (for environmental management) and Quality Systems Basics (QSB).

Afterwards, Total Productive Maintenance (TPM) will be implemented in both Uruapan and Celaya. We are also developing innovative solutions with recyclable fibers, substituting plastic pieces for certain automotive applications, which we expect will help us grow the Celaya plant’s capacity within the next five years.

L AT I N A M E R I C A

“Our operation would not be possible without our suppliers’ commitment and support; we consider them our business partners” – Claudia Cervantes, Managing Director for Janesville de México

BRAL: Do you consider expansion abroad as part of your short-term plans?

CC: The Mexican automotive industry is currently thriving. It has an outstanding growth rate forcing us to focus on the domestic market. However, we constantly monitor the South American market for opportunities.

BRAL: In which ways have suppliers improved logistics for Janesville de Mexico?

CC: Our current globalized economy demands efficiency in logistics, new devices and elements

Leading manufacturer of thermal and acoustic insulation for the automotive industry

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JANESVILLE DE MEXICO that are able to help us innovate and enhance our products’ in value for our customers. This would not be possible without our suppliers’ commitment and support. We consider them as business partners. We work very closely with them to fulfill our customer’s needs and requests.

We do our best at growing at the same pace as them, sharing common ground regarding quality, commitment and supply criteria.

BRAL: What feat has made you proudest, during your tenure in Janesville de Mexico?

CC: I’m most proud of witnessing the company

L AT I N A M E R I C A

growing 2,000 percent in just 15 years. I’m not just talking about sales, but also about growing professionally as an outstanding staff, that with wisdom, culture of effort and love to the company and those who depend on it, has achieved this sustained growth. We always like to pose new challenges that encourage us to work harder and strive to reach the highest levels of performance, and seeking to live the values of the Jason Industries group.

Company Information NAME

Janesville de Mexico INDUSTRY

Automotive component manufacturing HEADQUARTERS

“The Mexican automotive industry’s outstanding growth rate forces us to focus in the domestic market”

Uruapan, Michoacan, Mexico FOUNDED

1990 EMPLOYEES

500 REVENUE

USD $42 million WEBSITE

janesvilleacoustics.com

– Claudia Cervantes, Managing Director for Janesville de México

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GW Plastics

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

Written by: Andrew Rossillo

Produced by: Brian Mooney

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GW PLASTICS

G

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

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

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

“We are a high precision injection molding and contract manufacturing company” said GW 92

April 2015

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

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

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

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

This steadiness throughout the

USA

GW Molding

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

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

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

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

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

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Global reach. Local solutions.

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

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

Exper tise in hundreds of medical applications, including :

• • • • • • •

• • • • • • • •

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

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

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GW PLASTICS

USA

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

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

SUPPLIER PROFILE

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

Experience matters,” said Riehl.

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

These benefits combine to nurture a

WWW.ENTECPOLYMERS.COM

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

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GW Automation

GW PLASTICS truly loyal and engaged workforce.

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

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

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

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

USA

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

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

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

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C O M PA N Y N A M E

GW Medical Device Contract Assembly

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

Furthermore, a majority of GW’s growth has been organic, versus pursuing a serial M&A strategy choosing to grow in a responsible, planned fashion, avoiding undue risk that would jeopardize the Company, their supply chain or their customers. “Not too many 98

April 2015

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

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

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

SECTOR

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

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

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

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

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

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GW PLASTICS

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

Underlining the importance for internal training, Riehl pointed out that the United States workforce is losing a significant amount of highly experienced and talented people to retirement, making it increasingly more challenging to replace those skilled individuals and fill the gaps they’re leaving in the workforce, “GW recognized this many years ago, and began investing heavily in workforce training. Specifically, we have a long-standing apprenticeship 100

April 2015

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

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

USA

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

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

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

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

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

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

Company Information INDUSTRY

Manufacturing HEADQUARTERS

Bethel, VT, USA FOUNDED

1955 EMPLOYEES

Not Disclosed REVENUE

Not Disclosed PRODUCTS/ SERVICES

Plastics, Manufacturing

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Intel Products Vietnam:

Planning for Increased Business and Opportunities in Vietnam Written by: Laura Close Produced by: Camilo Sanchez

s

INTEL PRODUCTS VIETNAM

Intel Vietnam wins top prize in Vietnam HR Award 2014

I

ntel Products’ history in Vietnam begins in 1997 when the company opened a representative office in Ho Chi Minh, followed shortly by another office in Hanoi. Then in 2006, the company announced a first: Intel would be building Intel’s largest Assembly and Test facility.

Not only is this Saigon-based facility in Hi-Tech Park the largest, it was also the first $1 billion investment in the country, and the largest ever from a US-based firm.

As an early and substantial investor in Vietnam, Intel Products has since been able to help 104

April 2015

shape the investor market.

“It has been our experience at green field sites globally— where Intel is the first high-tech investor—that more investors tend to follow. We are also seeing this in Vietnam,” said Sherry Boger, Intel Products’ general manager.

“We see this as a positive effective and look forward to having the high tech eco-system evolve.”

But Intel Products’ biggest investment in Vietnam hasn’t been in its infrastructure. With a strong commitment to producing the best technology products and a

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Intel Products Vietnam receives Environmental Award recognized by MONRE

continuing interest in the well-being “Progressing to CPU production of the community and its employees, has been a great milestone for Intel Intel Products brings much more Products Vietnam, taking only a than business to the country. few months from initial engineering training to the start up of production Technology Means Everything ramp,” Boger said. “In contrast, As the tech sector continues to set the first products at our plant— a breakneck pace, Intel continues chipsets—took us five quarters its progress in research and from engineering training to the start manufacture on more complex of production.” technology products. To meet the demand for the world’s most Shipping to the World advanced CPUs for desktops and To maintain its top high-tech SOCs for mobile devices; Intel’s standing, Intel Products’ facilities facility is ramping up across its are seamlessly integrated on a product suite. real-time and near-time basis

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INTEL PRODUCTS VIETNAM

Solar power at Intel

worldwide. Intel Products Vietnam’s Assembly, Testing & Manufacturing facility in Ho Chi Minh City plays a crucial role in the global manufacturing story.

“At a local level, we have been working with Saigon High Tech Park to seek more local suppliers whose goods and services meet our standards and expectations,” Boger said.

“Due to the nature of global demand, but also the complex basis of our manufacturing, we 106

April 2015

employ a variety of shipping and distribution methods from air freight to shipping. As you would expect a company with the size and complexity of Intel, we have a global systems and processes to guide local implementation.”

The Facility at Ho Chi Minh Intel’s decision to build its largest Assembly Test facility in Ho Chi Minh is the first of its kind in several ways for Vietnam. As mentioned earlier, it was the

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largest financial commitment made by a US-based firm to the Asian country and additionally, it is the first investment of its kind in the semiconductor industry in the Vietnam.

Mid-2010 marked the beginning of chipset production at the facility. To support the continuing demands of mobile computing, Intel Vietnam utilized advanced chip package technology.

“As the first major foreign investor in high technology in Vietnam, the new facility supports Intel’s digital ASEAN (d-ASEAN) program,” Boger explained.

“The program works to develop a stronger digital workforce, integrate technology into education and government, and make technology more accessible for business and consumers within Southeast Asia.”

The facility isn’t just built to produce the latest technology though. Employees benefit greatly from the facility with the use of a fitness centre, sports facilities, indoor recreation amenities, Health for Life centre, Mother rooms and cafes.

Investment in Employees The great facility at Ho Chi Minh also provides a host of other employee programs like hobby and social clubs, organized leisure activities, Family Fun events, quarterly employee parties, pampering amenities, convenience services and social networking channels.

Intel Products Vietnam involves their employees in many parts of the business, including its innovation goals and investments. Boger detailed that she has found this to be a positive for the company, as its shares best practice among employees and drives new creativity and ideas in the company’s manufacturing and across operations at Saigon’s Hi-Tech Park.

“Intel’s success in Vietnam relies on the availability of local, skilled workers,” Boger shared. “We work closely with governments, universities and industry across the country to help build a technologically-advanced and knowledge-based economy in Vietnam and to develop the required talent-pool.”

One of the keys to the company’s success is a strong

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INTEL PRODUCTS VIETNAM career development program, which has increased employee retention.

Intel allows flexibility for employees to move across departments or countries to acquire different skill sets and on-the-job experience, giving them different job options within the same company. The HR team employs a Learn—Connect— Experience model in most of the development programs, which has been a successful way to transfer knowledge at practical level in a fun and interactive setting.

With as much as Intel does for its employees, the staff at Intel Products Vietnam is more than willing to give back. Since 2008 to end of 2013, Intel Vietnam employees volunteered more than 100,000 hours giving back to the community. These hours also get “matched” from the Intel Foundation as part of the company’s Intel Involved Matching Grant Program, to be used to improve learning and teaching facilities, fund scholarships and more.

“I’m really proud of Intel Vietnam’s young and energetic workforce,” Boger commented. “They are always eager to learn and ready to 108

April 2015

take on new challenges and new roles. As one of the world’s leading companies in the high technology industry, we value the creativity and innovative ideas that our young employees bring to Intel.”

Intel’s standing in the semiconductor industry has been proven by numerous awards and accolades related to the excellence of their employees. Vietnamese central and local governments have recognized Intel Products Vietnam for its contribution to the country’s growth. Intel also is the recent recipient of the Prime Minister’s Award and The best “Employer of Choice” by the Talent Net and Ministry of Labor in 2014, Intel Vietnam also won top prize in Vietnam HR Award 2014 and the Award for Corporate Excellence from the US Department of State in 2012.

Improving Local Education Opportunities Intel understands that quality employees start with a quality education. Therefore the company is committed to helping transform the lives of future and current

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1st CPU made in Vietnam Celebration

employees as well as the lives of those in the surrounding community through education.

“Previously we operated a study abroad program, which sponsored a total of 73 students from Vietnam technical and engineering universities of the third year to study two more years in the US to complete their bachelor’s degree at Portland State University,” Boger

said. “All of them completed their study and are now working at IPV.” Financial support has also been provided for the Royal Melbourne Institute of Technology Vietnam master’s degree program in Ho Chi Minh City. This has supported 41 Masters students with five cohorts, and all of them have joined IPV workforce since July till December this year.

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C O M PA N Y N A M E

Intel Green Bike Day

“We set our vision and then plan and iterate on the plan as needed.”

– Sherry Boger, General Manager, Intel Products Vietnam 110

April 2015

“With more than 93% Gen-Y, our employees have an unquenchable thirst for learning new things, so we strive to inspire them in their never-ending quest for knowledge and skills, making sure we have fun along the way,” Boger commented.

It was early on that Intel identified a need for capacity-building in skills development.

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SECTOR

As a result, the company was a founding partner of the Higher Engineering Education Alliance Program, which is transforming engineering education in faculties across Vietnam.

In addition, Intel Vietnam has been focusing our support to

increase the technical diversity in its hiring strategy by giving away hundreds of scholarships to female students from vocational to university levels, included this driving force in both IVS and HEEAP initiatives.

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Looking Forward “We don’t speculate about where we will be in five years; we set our vision and then plan and iterate on the plan as needed” Boger said.

She knows the factory in Vietnam is a longterm investment, and while the company is satisfied with its progress, it also understands that its innovative product pipeline requires new skills and continual improvement. For the future, Intel Products Vietnam’s focus will be on developing the talent of its current and potential employees so that the company is well-placed to meet the evolving needs of the tech business.

Company Information INDUSTRY

Manufacturing HEADQUARTERS

Tân Phú Ho Chi Minh Vietnam FOUNDED

1997 EMPLOYEES

1000+

“I’m really proud of Intel Vietnam’s young and energetic workforce. They are always eager to learn and ready to take on new challenges and new roles. As one of the world’s leading companies in the high technology industry, we value the creativity and innovative ideas that our young employees bring to Intel.”

– Sherry Boger, General Manager, Intel Products Vietnam

INVESTMENT

$1 Billion PRODUCTS/ SERVICES Intel was a first-mover and early investor in Vietnam. The company opened a representative office in Ho Chi Minh City in 1997, followed shortly afterwards by Hanoi. Less than a decade later, in February 2006, Intel announced its plans to build the world’s largest Assembly and Test facility in Saigon Hi-Tech Park. 2006 was the first announced $1B investment in the country and the largest FDI by a US-based firm.

Intel Products Vietnam is an early and substantial tenant in Saigon HiTech Park, located in the outskirts of Ho Chi Minh City, Vietnam.

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Stabicraft Marine:

Stabicraft’s Success Stays Afloat with Pioneering Buoyancy Technology

Innovation and long-running expertise help Stabicraft dom New Zealand market and continue expanding worldwide.

Written by: Andrew Rossillo Produced by: Camilo Sanchez

minate .

S TA B I C R A F T M A R I N E

3 Stabicraft’s delivered to Victorian Coastguard Authorities

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tabicraft Marine has been synonymous with regional, domestic and international marine communities since its inception in 1987. In a backstreet workshop in Invercargill, Paul Adams and Bruce Dickens built the first rigid hulled aluminium pontoon boat, a Stabicraft 3.5 Dinghy, called the “Ally Duck.” Managing Director Paul Adams has grown the brand from its humble beginnings in an engineering shop to a successful, modern manufacturing plant and embarcadero.

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April 2015

materials, continuing through each stage of the manufacturing process.

The company invests in both people and plant to make sure they retain their cutting edge. Stabicraft Marine welders are certified to international standards, and they have the largest CNC router in New Zealand.

As can be gathered from the company’s name, stability, safety and innovation continue to be prime goals and missions. In fact, they were one of the first New Zealand boat manufacturers to sign up for CPC certification as an independent verification of build standard, and the first manufacturer

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

The Northern Territories love the new Stabicraft 2100 Frontier set-ups

to sign up for the Australian Boat Builders Plate.

technology has been a fundamental underpinning of the company’s success. Together with innovative Production Process design advancements, this has led to Special attention is given to Stabicraft being the most successful each and every Stabicraft boat trailer boat manufacturer in New produced, with quality and pride of Zealand,” said Stabicraft Marine’s workmanship being an important New Product Development Manager aspect of the manufacturing process. Daniel Upperton.

A quality checking system is in place In addition to the company’s to check material and components at great success in New Zealand, each stage of production, ensuring Stabicraft’s success is also staying every Stabicraft product that enters afloat outside of its domestic the marketplace is not just superior markets as well. “Stabicraft exports in terms of quality but exceeds the to Australia, the USA and we have standards of the boating industry. even sent boats to Russia, Africa “Pioneering positive buoyancy and Europe,” said Upperton. w w w. s t a b i c r a f t . c o m /

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Boat Windscreens, Marine Glaziers, Cabin Doors and Sliders Sea Thru Ltd specializes in the design and fabrication of high quality windows, windscreens, cabin doors and sliders for boats & yachts.

With more than 25 years in the business, we have accumulated a large range of templates and designs throughout the New Zealand market.

Our products and services include: • • • • •

Boat Windscreens Marine Glaziers Cabin Doors and Sliders Acrylic Products Custom and Insurance Work

w w w .s ea t h r u .c o .n z

20 Taurus Place, Bromley, Christchurch, NZ Phone: +64 3 381 1149 Fax: +64 3 381 1150 E-mail: boatscreens@seathru.co.nz

S TA B I C R A F T M A R I N E Nowadays, Stabicraft’s boats are found in waters worldwide. They have standard models across four ranges: the original Fishers, the recreational Sports XRs, the robust Frontiers and their all-weather Supercabs. Around 600 boats are turned out from their Invercargill, New Zealand factory every year thanks to a dedicated staff of 68. Their global team features 16 dealers in New Zealand, 14 in Australia, three in the U.S., one in Alaska and one in New Caledonia.

Competitive Advantages A significant amount of Stabicraft’s strength in the marketplace comes

SUPPLIER PROFILE

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

from their pioneering positive buoyancy technology that’s been part of the company’s success since it started. “That’s basically a rigid aluminium life ring around the outside of the boat,” explained Upperton.

Innovation is one of the company’s strongest differentials. “We constantly strive to keep ahead of the game through innovation.

We have a large design and engineering team here; probably the largest in the country of our industry. We practice some very advanced processes for capturing that innovation. This includes a design process that adheres

SEA THRU

Employees: 10 Established: 1989 Industry: Manufacturing and Supply of Marine Glazing, including fixed and opening windows, doors hatches and cabin windows.

Services: One stop glazing repairs and installations.

Ongoing Projects: Continuous development of existing and new products.

Management: Brian Casey, Managing Director Mandy Bloomfield, General Manager Trevor Cockle, Production Manager Website: http://www.seathru.co.nz/

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The Stabicraft 1850 Supercab is our most popular Australian model

“Pioneering positive buoyancy technology has been a fundamental underpinning of the company’s success.

Together with innovative design advancements, this has led to Stabicraft being the most successful trailer boat manufacturer in New Zealand.”

– Daniel Upperton, New Product Development Manager

to comprehensive concept and prototyping work. And we can make all of that happen very quickly,” said Upperton.

Stabicraft also boasts a strong commercial portfolio. “We support a lot of the Australia 120

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Coast Guard, water police, emergency services and the recreational sector, too. When customers of clients see our boats being used in a commercial platform that gives us quite a bit of kudos from the recreational

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platform as well, creating a major advantage for us,” said Upperton.

Stabicraft also maintains another key advantage by focusing on its customers and end users. “We have a massive dealer network throughout New Zealand, Australia and the U.S.A. We can tap into those entities, and make use of a lot of valuable information through them.

In fact, we have a program where we capture a lot of that information and feed it back into our design,” said Upperton.

Company Information INDUSTRY

Manufacturing HEADQUARTERS

Invercargill Southland New Zealand FOUNDED

Unmistakably Stabicraft To continue growing with strength, Stabicraft develops different ways to utilise the design process better and utilise external companies, leveraging their expertise, and funneling that into their design, while remaining true to their own DNA. As part of this, Stabicraft eagerly looks forward to the launch of its 1600 Carbon Series boats, which are going to be released in May in New Zealand.

“One of the key aspects of our design philosophy demands that every Stabicraft be instantly recognizable as such,” said Stabicraft’s Managing Director Paul Adams. “Stabicraft’s 1600 Carbon Series with uncompromisingly sharp contours is the essence of our brand.

According to an extreme, awe-inspiring look, which is eternally different but unmistakably Stabicraft, we are pushing the boundaries of what has previously been considered the norm in the marine industry.”

1987 EMPLOYEES

68 REVENUE

$15 million PRODUCTS/ SERVICES Stabicraft Marine has been synonymous with regional, domestic and international marine communities since its inception in 1987. In a backstreet workshop in Invercargill, Paul Adams and Bruce Dickens built the first rigid hulled aluminium chambered boat, a Stabicraft 3.5 Dinghy, called the “Ally Duck.” Managing Director Paul Adams has grown the brand from its humble beginnings in an engineering shop to a successful, modern manufacturing plant and embarcadero.

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Reinhausen Australia:

Contributes to Over 50 Percent of World’s Power Excellence achieved through powerful global network of shared knowledge, skills and experience Written by: Andrew Rossillo Produced by: Camilo Sanchez

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MR Test Center

R

einhausen Australia is active in power engineering and is part of Maschinenfabrik Reinhausen GmbH (MR) and its 30 subsidiaries and affiliated companies globally. The parent company was founded in 1868, running central operations and activities out of Regensburg, Germany. From this location, there is also a unique global testing and innovation center that greatly contributes to the success of the overall company.

“Our core business is the regulation of power transformers.

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of tap changers, which adapt the transmission ratio of the primary to secondary winding to changing load ratios and, together with additional innovative products and services, ensure an interruptionfree power supply. The tap changer equipment we use is like a gearbox for high-voltage transformers. With that piece of equipment, we safely control over 50 percent of the world’s electrical energy requirements,” said Reinhausen Australia’s managing director, Brett Flower.

Through increasing integration of renewable energies into the

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

Training Center

power network, this regulation also has an ever-increasing importance on the distribution network level. Here, the company likewise provides innovative system solutions. Together with conceptual design of systems for reactive power compensation and accompanying services such as network analysis and calculation, MR rounds out their network regulation offerings. An additional, successful field of activity is in winding fiberglass-reinforced plastic tubes, processing plastic cylinders and manufacturing composite hollow insulators.

MR operates with a strong vision focused on integrating a Reinhausen product in every transformer around the world.

As an innovative company with decades of experience in voltage regulation, MR is present in every area that deals with the flow of energy. They work every day to make the global energy supply better and more secure with their solutions. This applies to their product solutions and to their extensive service offerings and their competencies in project business. The company executes these things together with their w w w. r e i n h a u s e n . c o m

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REINHAUSEN AUSTRALIA customers, the manufacturers of high-voltage devices and systems, utility providers and voltageintensive large-scale industry.

Together with ten partner companies, MR is an active member of the TRANSFORM network platform, a unique association of European premium providers in the transformer area, for the benefit of their shared customers. Thanks to the stringent alignment of all of the company’s activities toward

quality experienced service HV Contracting Pty Ltd services the medium to high voltage industries throughout Australia. Services include: • Transformer installation and maintenance • Oil sampling and analysis • Oil filtration • Mechanical construction • Electrical contracting Our strong relationships with major manufactures can assure you to get the right advice and the right service every time.

13 White Street, Bayswater WA 6053 Ph: 08 9272 6899 Mob: 04 1936 4316 Email: nev@hvcontracting.com.au

www.hvcontracting.com.au

innovation, expertise and reliability, versatile synergies and customer advantages are created.

German Designed, Engineered and Manufactured Among many powerful competitive advantages, Flower was quick to list “German designed, engineered and manufactured” as key differentiators.

“The fact that our equipment is made in Germany carries a lot of respect in engineering and the consumer markets. That quality is paired with the amazing group of people we have in our network.

For our highly skilled people, it’s not a job, it’s a career. Our average tenure in our company is approximately 10 years.

“We have a global presence of 30 subsidiaries worldwide. Those people throughout that network are the best in the business.”

Flower pointed out that they communicate globally on a daily basis, thereby leveraging the group’s great collective strength as much as possible.

“When we catch up, it’s like a big family reunion. And there’s great

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

pride in the quality of our people and equipment.”

It is this comprehensive, global collaboration that helped Reinhausen invent the tap changer that they use.

“We invented and patented the tap changer back in 1926. We’ve been the market leader ever since then,” said Flower.

Steady Growth As evidence of MR’s steady growth and consistent strength, they are a multi-award innovation leader.

“We developed vacuum technology in our product line, which has revolutionized the industry. It brought a maintenancefree product into certain applications. Our competitors have basically been scrambling to catch up ever since,” said Flower.

“We’re always the leader and never the follower. Being dynamic and moving with industry trends is a key component of our success. Our business has changed substantially in just the past few years alone. We have a new business unit that has been charged with regularly keeping us

ahead of the change,” said Flower.

Furthermore, a particularly fundamental manner in which Reinhausen stays true to its core values is maintaining premium quality management.

“The quality management we have is unparalleled. We have a state-of-art test center in our headquarters in Regensburg, Germany. This ensures that we not only exceed the international standards, we smash them,” said Flower with a confident chuckle.

Regulating Over 50 Percent of the World’s Power At the core of Reinhausen’s ability to regulate over 50 percent of the world’s power is their on-load tapchanger (OLTC); the founding block of their business.

“This is supported by premium service. Our technicians are trained to the highest standards.

“We’re solutions providers for our customers,” said Flower.

It is this premium service and skill that has helped the company maintain technical excellence throughout its operations, winning numerous accolades, including w w w. r e i n h a u s e n . c o m

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Replacement old OLTC Brasilia

IEC awards for work on power transformers. Helping to maintain this excellence is their global network of skills, experience and knowledge that can be tapped into at any time, by anyone throughout the Company.

growth in the last five years.

“For a company like ours to continue to be the market leader, it’s all about innovation and adaptability. As part of that, we’re looking into acquiring knowledge and companies to bring new services and product Global Marketplace Domination offerings,” said Flower. “Among Expansion others, we’ve recently partnered While MR has been steadily growing with a company called CAPT, throughout its history, the company an Italian offload tap changer has enjoyed particularly significant manufacturer, bringing another 128

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“Our core business is the regulation of power transformers…The tap changer equipment we use is like a gearbox for high-voltage transformers. With that piece of equipment, we have control of over 50 percent of the world’s electrical energy.”

– Brett Flower, Managing Director

product group to the company. We’ve also incorporated a business called Reinhausen Solutions Corporation (RJP) in Japan, which specialises in asset management solutions.

RJP has been done as a joint venture with Hitachi. Great things are coming from the power of these large iconic companies coming together.”

While early stage restrictions currently require confidentiality, Flower was able to share that the company does indeed have a number of new projects in early development.

“The prospects for Reinhausen Australia and the Group as a whole are extremely promising and exciting. There’s a strong demand for our expertise, and we have to move with that demand,” said Flower.

“My role is to make sure we are where our customers need us. We will continue to provide premium service across all parts of the business, wherever we are needed.”

Company Information INDUSTRY

Manufacturing HEADQUARTERS

Kingsgrove NSW, Australia PRODUCTS/ SERVICES

Reinhausen Australia is active in power engineering and is part of Maschinenfabrik Reinhausen GmbH (MR) and over 26 subsidiaries and affiliated companies globally. The company was founded in 1868 and continues to run central operations and activities out of Regensburg, Germany.

From this location, there is also a unique global testing and innovation centre that greatly contributes to the success of the overall company.

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AUSTRALIAN MADE CAMPAIGN:

Australia’s registered count of-origin certification trade

ntrymark

A U S T R A L I A N M A D E C A M PA I G N

Worker at Sutton Tools

T

he not-for-profit Australian Made Campaign administers and promotes the famous green-and-gold kangaroo logo, Australia’s registered country-oforigin trade mark.

The iconic Australian Made, Australian Grown (AMAG) symbol has been identifying Australian goods since 1986, and is now used by 132

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more than 2000 companies on some 15,000 products to identify genuine Aussie products and produce.

The stylised kangaroo has been used in countries all over the world by exporters to clearly establish their products and produce as Australian.

In fact, approximately one third of the companies who use the logo, export their goods. The logo

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

provides crucial authenticity in these export markets, reinforced in recent years by the registration of the trade mark in China, Singapore, South Korea and the USA, with plans for further registrations underway.

Market research* reveals more than 98% of Australian consumers recognise the logo, and 88% trust it. It is backed by a multi-million dollar marketing and communications campaign, and its significant and growing recognition and trust in Australia throughout the world, particularly in Asia, make it a powerful marketing symbol for Australian growers and manufacturers.

listing, fully searchable by name or products offered and integrated with social media.

Australian Made branded stores 2015 also marks the launch of ‘Australian Made’ branded stores in China, under a new partnership with Australia Made Shop Pty Ltd (AMS). There is already a network of Australian Made branded stores in South Korea.

AMS will only showcase products certified to carry the AMAG logo to the affluent Chinese market.

Initially launching in the Shanghai Free Trade Zone in February, stocking shelf-stable products, stores are set to open in other major A comprehensive online database cities throughout 2015, with the The Australian Made Campaign intent to offer fresh produce as well. recently launched its new website, Australia’s Federal Minister for www.australianmade.com.au.

Small Business, Bruce Billson, said Featuring products and produce an ‘Australian Made’ retail presence from thousands of Australian showcasing the very best and most farmers and manufacturers, the authentic Australian products to the website enables consumers to crucial Chinese market was truly quickly and easily find locally exciting. “Knowing that suppliers made, grown or caught products. have an ‘on the ground’ partner Only products certified to carry to market their ‘Australian Made’ the AMAG logo can be featured. products to increasingly discerning Every business has its own online Chinese consumers builds exporter w w w. a u s t r a l i a n m a d e . c o m . a u

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A U S T R A L I A N M A D E C A M PA I G N confidence and optimism, and local jobs and economic opportunities,” Mr Billson said.

The certification process If your products are made or grown in Australia, you could be eligible to use the Australian Made, Australian Grown logo.

To qualify, your products must comply with the criteria for one of the following descriptors: • Australian Made: The product has been made in Australia and over 50 per cent of the cost of production cost has been incurred in Australia.

• Australian Grown: All significant ingredients are grown in Australia and almost all processing has been carried out in Australia.

• Product of Australia: All significant ingredients come from Australia and almost all of the manufacturing/processing has been carried out in Australia.

• Australian Seafood: All significant ingredients are grown/ harvested in Australia and almost all processing has been carried out in Australia.

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April 2015

for at least one of the four preceding claims, and not be misleading.

It is important to note that, for food products, the rules for using the AMAG logo with an ‘Australian Made’ claim are more stringent than those applying under the Government’s Australian Consumer Law. A stricter set of criteria about what actually constitutes ‘substantial transformation’ was introduced several years ago to reduce any confusion about a food product’s true country-of-origin.

Australia’s reputation for high quality, health and safety standards in manufacturing has helped to create a strong nation brand for businesses to leverage, and if you qualify to use the logo, there are a few easy protocols you can put in place to be sure you get the most out of it. These include: • Placing the logo clearly and visibly on the front of product packaging; • Promoting the logo extensively across all marketing and communications materials • Using the logo as part of your sales pitch, to help convert sales and secure Government contracts.

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

Ian Harrison, Chief Executive, Australian Made Campaign

How much does it cost?

The annual licence fee is based on the actual sales of licensed products for the previous 12 months, and is charged based on the range your turnover falls into.

There is a fixed fee associated with each range. The minimum fee

is $300 plus GST for annual sales up to $300,000, and the maximum fee is $25,000 for annual sales over $45,000,000.

To find out more, visit www. australianmade.com.au/forbusiness.

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New Zealand Made: Showing home is still where the manufacturing heart is

NEW ZEALAND MADE

N

o matter how small the world may be getting in terms of travel and trade, there’s a clear and growing message coming from consumers: that when it comes to buying products, they’re 138

April 2015

on the look out for high-quality options that have been made in their own back yard.

Admittedly, that hasn’t always been the case. There was a time when products or services that originated

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

overseas were coveted by many, and consumers had to be persuaded to buy homegrown goods.

That was the thinking when Buy NZ Made was formed in 1988.

Their goal was to put New Zealand-

made goods in the spotlight and encourage consumers and businesses to spend their hard earned dollars on locally made products instead of imported ones.

Unlike Australia, there are no exact w w w. b u y n z . o r g . n z

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proportions to determine whether or not a product is made in New Zealand. Instead, the Fair Trading Act looks at where significant points of transformation occurred.

For example, if an item of clothing is made in New Zealand from foreign fabric, it’s deemed to be NZ Made.

Likewise, for a food item you would determine where the essential

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character of the food was created and for a manufactured product, if a substantial part of the creation happens onshore.

The acid test to decide whether a claim breaches the Act is quite simply whether that claim is likely to be misleading.

With that boundary firmly in mind, Buy NZ Made membership is open

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

to anyone who creates or sells New Zealand-made products within New Zealand.

There are more than 1100 members currently with the organisation, across 27 different business categories.

Members have access to a range of support and promotional opportunities to help them grow their business. The organisation represents all of businesses through their own website, and assists with marketing their products both in New Zealand and overseas.

Buy NZ Made also runs themed promotions throughout the year, which are circulated throughout the membership base and advertised through social media.

One of the most simple but powerful benefits is that members are able to use the Buy NZ Made logo on their products and marketing. This ensures they get maximum exposure with customers who are keen to support local business.

The logo has proven to be equally powerful on foreign shelves where customers are drawn to New Zealand’s clean, green

image and growing reputation for innovation quality.

One of Buy NZ Made’s key marketing strategies has been their ‘Clever Kiwis’ campaign, which showcases the many achievements of Kiwi entrepeneurs.

Many of these businesses are discovering new ways to utilise natural resources, developing solutions for local and international demands and creating new production standards around the globe.

The Buy NZ Made campaign has received much support in return over the last few years due largely to concerns about the carbon footprint attached to imported products, as well as growing awareness surrounding the working conditions of employees overseas, FairTrade and the impact buying homegrown goods and supporting local business has on our own economy.

Obviously, the answer doesn’t lie entirely with Buy NZ Made but it’s a good start. The more success local businesses can create and sustain, the better it seems to be for everyone.

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LEADER IN PRO

With operations aiming and services, the group s

Dร RR:

ODUCTION EFFICIENCY

at the research for development of new products, processes stands out in the automobile industry in Brazil and worldwide.

Written by: Flรกvia Brancato | Produced by: Nayara Ferreira 143

DÜRR

D Internal and external robots paint application with door openers

ürr Brasil, the first subsidiary of the group Dürr Systems AG organized outside Germany, was founded in 1964 - with the purpose of serving Volkswagen in a large project of growth – and today, 50 years later, all the company divisions are established in Brazil, featuring the Group globalization. A Leader in the industry in several business units, the company supplies high quality industrial equipment by means of a complete portfolio of products on the South-American Market.

The delivery of services covers planning, inspection, maintenance and repair service,

Robots manufacturing of Dürr Germany

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BRAZIL

as well as modification, training programs and spare parts. And with the advantage of having nearly 1,000 employees, in the area of services and technical support alone, spread out in 28 countries around the world, the company applies efficiency and expertise to all the activities it performs.

Considered as an engineering company, Dürr operations aim at the research for development of new products, processes and services, by means of five business divisions that complement each other, and focus on production, energy and cost efficiency. In fact, according to Dürr Brasil CCO, Paulo Sentieiro, the ecological factor is one of the company initiatives. “We are currently focused on the development of energy efficient, greener products adapted to the shortage of natural resources and global climate changes”, he explains.

• Energy Systems and the Environment All the plants of the group are known worldwide as symbols of “green” production process, both in the automobile industry and in the pharmaceutical, chemical, printing and coating industries. The unit provides a wide range of products for energy recovery, generation and reutilization products, in addition to treatments for exhaust gases and environmental protection.

• Final Assembly and Painting System Division The unit offers from small enlargements and renovations through the supply of complete

Management Roberto Tkatchuk President Paulo Sentieiro CCO Roberto Adriano Financial Director Miguel Horvath Director of Operations

“The main challenges of the sector are to keep strong investment in research and development and keep pace with the environmental changes and modifications in mobility and transport” – CCO of Dürr Brasil, Paulo Sentieiro w w w. d u r r. c o m

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“Lately we have invested some tens of million Euros in cutting-edge hardware and software” – CCO of Dürr Brasil, Paulo Sentieiro

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painting and final assembly facilities (turn-key), manufacturers of fluid filling equipment, rollers for testing, wheel and headlight aligners, industrial conveyors, ergonomic handling equipment, etc.

• Painting, Sealants and Gluing Automation It counts on its own robots and automatic systems for material feeding, specialized in high efficiency of application and accuracy in the use of the materials applied.

• Balancing and Diagnosis Systems A leader in the global market is the balancing division, where the company offers cuttingedge technology products with its balancing equipment and industrial washing machines, in addition to keeping in stock all the main pieces and components for replacement in case of emergency. It also offers training in balancing and specialized services.

• Woodworking machinery Dürr is also the global leader in the technology for woodworking machinery for the furniture industry.

DEVELOPMENT AND MOBILITY To successfully meet the market requirements, investments are essential. “The main challenges of the sector are to keep strong investment in research and development and keep pace with the environmental changes and modifications in mobility and transport in order to stay ahead of the market, protecting our sales and technology leadership”, assumes the CCO.

BRAZIL

EcoDryScrubber - next generation dry paint separation

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Station for seam sealing and underbody protection

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An evidence to this are the constant innovations and investments in R&D, such as the creation of EcoRodip, a 360º rotation conveyor for surface treatment; and EcoDryScrubber, a machine for overspray separation requiring no water, for paint booths. “These are only some examples. We also made a number of acquisitions from other companies and groups to expand the diversification of our portfolio of products and services, and the markets in which the company operates”, he adds.

When it comes to management strategy, Dürr Brasil internationalizes the entire production, products and engineering, with the purpose of expanding the capacity on emerging markets, especially China, Eastern Europe, Mexico, and India, besides Brazil. As for internal quality and safety procedures, the company has ongoing improvement management that monitors processes and health and safety standards and coordinates audits to expedite decisions.

TECHNOLOGY AND INVESTMENTS With a fully scanning-based engineering globally integrated with all design centers, the systems are drawn in 3D, via electronic simulation, systems of supervision and production control, virtual commissioning, among other cutting-edge technologies. The investment focus is clearly on IT tools, global communications, integration and interaction of engineers and technicians, and research and development of new products for customers’ production efficiency. Sentieiro is emphatic: “lately we have invested some tens of million Euros in cutting-edge hardware and software to integrate our global platform of CAD/CAE and communication and

“These projects add more than USD 30 million and the production is scheduled to start this year, continuing next year” – CCO of Dürr Brasil, Paulo Sentieiro w w w. d u r r. c o m

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Balancing machine, Schenck bran

productivity software”, he says.

As market leaders in the paint and final assembly sector, and following the investments of the main OEM´s established on the market, in addition to new players such as JLR, BMW, Audi, Mercedes-Benz, FCA Goiana, Fiat Betim, Scania, among others, Dürr Brasil provides high technology equipment such as systems for automatic paint application with robots, fluid filling equipment, special conveyors for bodyshell and mechanics coupling in the finishing line, etc. “These projects add more than USD 30 million and the production is scheduled to start this year, continuing next year”, adds Sentieiro.

With an estimated growth of 3% to 5% per year in the next five years, the company has the purpose of keeping the focus on flexibility, agility, and customer proximity. The main goal is to position Dürr Brasil with the 150

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BRAZIL

Company Information INDUSTRY

Automotive and capital assets in general HEADQUARTERS

Bietgheim-Bissingen, Germany (headquarters) and São Paulo, Brazil (subsidiary) E S TA B L I S H E D

1895 – Germany 1964 – Brazil

nd from Dürr group EMPLOYEES

participation of business generation for Dürr Group at 10% of the global sales of the group.

Sentieiro states that in addition to expanding the presence in several automotive industry sectors and focusing on energy efficiency, especially on the chemical processing industry, the qualification of employees is also planned. “In order to achieve this goal, we are training our employees abroad in the English language, besides expanding our presence in Brazil with branches and offices of services and sales in Curitiba, in the area of Belo Horizonte and Recife/Bahia”, the Officer concludes, optimistically.

15.000 global 300 Brazil PRODUCTS/ SERVICES

Paint booth, Robots, Conveyors, Handling Equipment, Filling Equipment, Balancing and washing, Environmental treatment

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Differentiation technol

One of the most importa automotive,

MVC:

on, improvement and innovative logy are the secrets of success

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

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MVC

O

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

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

The company focuses on providing optimal solutions and developing

Wind power client – Alstom

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Key Person

Gilmar Lima

Transport client, WFly Volare

Executive Director

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

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

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

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Innovation is Core to Our Business

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

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

@LORDCorporation

BRAZIL

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

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

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

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

SUPPLIER PROFILE

LORD CORPORATION

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

Website: www.lord.com

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

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

THE ENGINEERING OF PLASTICS Market challenges do not prevent the company from continuing to believe that the business differentiation in which MVC operates is what moves and places it as an industry leader. “The biggest challenge is the lack of knowledge about engineering plastic, as well as skilled labor and investments in infrastructure,” said Lima. Among the strategies to face these challenges, MVC seeks to participate in all projects and events that enable promotion of all the materials and solutions offered to consumers. “After all, we are a company that prioritizes differentiation, market niches, innovation and, most importantly, the exceptional relationship with our customers and the people,” added the director.

On the other hand, industry trends lead toward a better use of carbon fibers and special acrylic resins, like thermoplastic and polyurethane, for residue and thermoset processes. According to Lima, this ends up generating sustainable and competitive products. “Of all the trends, the one that I believe in the most is the creation of new products with waste composites. We

CNH T8000

Automotive client, Pajero-TR4 Mitsubishi

Automotive client, Jimny Suzuki

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Day care, Wall System

can’t allocate the residue only, we have to create value for it and this is certainly the future for the businesses that will make a difference, “says.

Transport client, Stralis Iveco

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

Examples include RTM-S, RTM-TS, RTM-

SECTOR

SKIN and VFC-LIGHT technologies, among others. Lima also reaffirms that investments are consistent. “Our main feature is to create high-performance solutions with investments for our clients. We invest an average of US $1.8 million a year in new technologies, materials and processes,” states Lima.

Also according to the Director, in the last cycle, 2010-2014, they invested approximately US $15 million in technology, equipment, plant safety,

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

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Housing complex RS, Wall System

Roof coatings, Carrasco Airport, Montevideo Uruguay

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human resources and communication. Lima is optimistic about the future. “Our goal for the new growth cycle, which will be from 2015 to 2018, is internationalization of MVC. For 2018 we aim for over US $740 million in revenues,” she says.

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

PPE develops materials for the automotive, aeronautical, marine and military sectors as well as processes and high performance materials to

BRAZIL

Company Information INDUSTRY

Plastics HEADQUARTERS

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

1989 EMPLOYEES

1600 ANNUAL REVENUE

US$ 248 million

meet the plastics market demand.

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

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

PRODUCTS/ SERVICES

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

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ABRAFATI:

Brazilian Coatings Manufacturers Assoc

Working for Sustainable Development in the Pai Written by: Fábio Humberg - ABRAFATI’s public relations Produced by: Nayara Ferreira

ciation

int Industry.

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A B R A FAT I

A

BRAFATI (short in Portuguese for Brazilian Coatings Manufacturers Association) represents the paint and coatings supply chain, bringing together manufacturers and their suppliers.

The core objective of its activity is to seek sustainable development in the industry, in pursuit of which a series of initiatives and programs are carried out.

One major highlight of its initiatives is ABRAFATI 2015, the largest event for the coatings industry in Latin America and one of the most important of its kind in the world, which is held every two years and comprises the International Coatings Congress and the International Exhibition of Coatings Industry Suppliers. For its 14th edition, which is taking place on October 13 through 15 of this year, the most prominent companies and professionals in the industry will be in attendance together.

Solutions for future demands in the coatings supply chain will be introduced and discussed at ABRAFATI 2015. The main focus of the innovations on display at the exhibition and the studies presented at the

16,000 highly qualified visitors are expected at the Exhibition

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Key Person

Dilson Ferreira Executive President

congress will be sustainability, which currently drives research and technological development in the industry.

At the congress, dozens of reputable experts from both the industry and the academia will show the current status of their research efforts, results already achieved and those which are expected. “The program will consist of a series of very innovative, high-end technical studies, many of which focusing on environmentally friendlier products, technologies and processes,” says ABRAFATI’s executive president Dilson Ferreira.

At the same time, the practical applications of those innovations will be demonstrated at the exhibition, in the form of releases that contribute

“ABRAFATI 2015 is going to create ideal conditions for paving the way for evolution in the industry” – Dilson Ferreira, Executive President of ABRAFATI

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A B R A FAT I

The former president of the Central Bank of Brazil, Henrique Meirelles (center) was one

Dilson Ferreira, Executive President of ABRAFATI 168

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to pushing the industry forward. Leading suppliers from the Americas, Europe and Asia will be present reaffirming their confidence in the future prospects for the paint and coatings industry in Brazil and all of Latin America.

By being held simultaneously, the congress and the exhibition will create great conditions for professionals of the industry to interact and discuss new possibilities. The trade show has highly qualified visitors, as they are professionals

T I N TA S

e of the key speakers at ABRAFATI 2013

who are there to learn about new developments and trends, while seeking resources and new ideas to improve their products and processes. In the course of the three-day event, they will be able to understand where the coatings industry is heading. “ABRAFATI 2015 is going to create ideal conditions for paving the way for evolution in the industry, responding to the current and future needs of society and the marketplace, which revolve around four major, interconnected themes: sustainability, multi-functionality, high performance, and great cost-benefit ratios. While boosting technological innovation and the search for sustainable solutions, the trade show will w w w. a b r a f a t i . c o m . b r

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A B R A FAT I

Exhibitors are strongly confident about the role of ABRAFATI 2015 in promoting business

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provide a variety of opportunities to make business more dynamic at the same time.

Basically, it will bring what it takes for the coatings supply chain to grow and stay on the path of sustainable industry development,” says Mr. Ferreira.

More information: www.abrafati2015.com.br A Portrait of the Coatings Industry in Brazil Brazil is currently the world’s fifth largest coatings producer, behind the United States, China, India, and Germany. The country produces a volume in excess of 1.4 billion liters a year and shows great potential for growth over the next several years due to the inclusion of millions of new consumers in the consumer market and the demands arising from such economic and social development, which include the need for substantial investment in housing, urban mobility, energy, logistics and several other areas.

Coatings are manufactured in Brazil for the most varied of applications, with cuttingedge technology and a degree of technical skill comparable to those of the world’s most advanced production centers.

Major global suppliers of raw materials and inputs to the coatings industry are present in Brazil, either directly or through their representatives, together with domestic companies, many of whom own advanced technology and have an exporting profile.

Company Information INDUSTRY

Paint HEADQUARTERS

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

1985 NUMBER OF MEMBERS

55 which 32 are paint manufacturers and 23 industry suppliers MANAGEMENT

Executive President: Dilson Ferreira President of the Board: Antonio Carlos Lacerda Corporative Events Director: Telma Florêncio

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ABRAVA AND ITS PERFORMANC IN HVAC-R SECTOR

Written byr: MCO Comunicação Empresarial | Produced by: Nayara Ferr

CE

reira 173

C O M PA N Y N A M E

2015 AHR Expo

B President of Abrava, Wadi Tadeu Neaime 174

April 2014

razilian Association for HVACR is an entity that represents four sectors of the economy whose expected revenue for 2015 is of $ 17.3 billion related to industry, trade and services. It generates around 350,000 direct and indirect jobs. Has headquartered in SĂŁo Paulo, two regional offices (State of Minas Gerais and Northeast Brazilian Region), 375 associated companies and supports the 3,311 establishments connected to the sectors

SECTOR

represented by the entity.

According to ABRAVA president, Wadi Tadeu Neaime, since its foundation in 1962, the organization’s mission is to defend the HVAC-R sectors’ interests, promoting sustainable development and technical, economic and social improvement and quality of life for all agents involved.

With the purpose of meeting the needs of companies and HVAC-R sector professionals, ABRAVA pursuits joint action with the Brazilian society, the private sector, other associations, governments and third sector entities.

ABRAVA mission is to ensure technological and competitive development of the HVAC-R sector of the country, defend its legitimate w w w. a b r a v a . c o m . b r

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A B R A VA

Febrava’s opening day

interests, promoting the responsible use of refrigerants and equipment to reduce global warming, preserve the environment and improve the quality of life.,

HVAC duct, interior

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April 2014

National Departments To meet the demands of the four sectors that ABRAVArepresents, it offers in its structure 17 National Directories, which are: Residential Air-Conditioning Central Air-Conditioning, Automation, Retail, Importers, Contractors and Maintenance, Designers, Solar Thermal Heating, Commercial Refrigeration, Industrial

HVAC-R

Febrava’s attendance

Refrigeration, Ventilation, Compact Equipment Refrigeration Manufacturers ND, Air Distribution, Indoor Air Quality, Thermal Insulation, Chapter ASHRAE, and the recent DN Commissioning, each with its own president and directors.

Administrative and Services Structure The entity has a full administrative structure that aims giving support to members, these are: Legal Department; Decomex - Foreign Trade; International Relations; Abrava Export Program; Department of Economics and Statistics; CEDOC; Department of Courses; ABNT / CB-55 committee; and Marketing and Events.

Air conditioning and ventilation systems, external

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A B R A VA

President and ex-presidents

INTERNATIONAL AND NATIONAL AGREEMENTS Given the international visibility ABRAVA maintain relationship with the entities: ASHRAE - American Society of Heating, Refrigerating, and Air Conditioning Engineers; AHRI - Air Conditioning, Heating and Refrigeration Institute; FAIAR - Federación de las Asociaciones Iberoamerican Aire Conditioning y Refrigeración; ICARHMA - Int’l Council of Air Conditioning, Refrigeration and Heating Manufacturers Associations; UNDP - United Nations Development Program (NYC Office); GTZ PROKLIMA; IAQA - Indoor Air Quality Association, among others.

In Brazil it has cooperation and working agreements with: MMA; MME; PROCEL; ABNT; ANVISA; Apex-Brasil; IBAMA; CETESB; ABRAS; CREA; GBC Brasil; CBCS; Apex-Brasil; IE-Instituto de Engenharia; Instituto MAUA de Tecnologia ; IPT; SENAI; SMACNA. 178

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HVAC-R

ABRAVA plays an important role close to the government, national and international institutions, is present in almost all governmental initiatives related to our industry, such as the Ministry of Environment Technical Groups, Ministry of Mines and Energy and of Foreign Trade, involving important issues such as the replacement of refrigerants, energy efficiency, labeling, taxation etc. cooperating in the format of ordinances of CONAMA, IBAMA, PROCEL, INMETRO, among others. An important fact for the HVAC-R sector was the agreement signed in 2014 FATEC-SP for the university degree of Refrigeration and Air Conditioning.

Through these partnerships, ABRAVA participates in the Brazilian Plan for the Elimination of CFCs, the support for PBH the Brazilian Program for the elimination of HCFCs, where the entities function is to seek updated information with international partners, affiliates and communicate them to the government through performance in technical groups, contributing to legislation and updated rograms and viable for the members and to the market in general, the organization’s goal is a better Brazil.

In 2014, during the Conference on the UN Climate Secretary, it was announced the formation of the Global Refrigerant Management Initiative, ABRAVA being appointed for its management along with The Alliance and AHRI.

Company Information NAME

Brazilian Association for HVACR (Abrava) INDUSTRY

HVAC-R HEADQUARTERS

Campos ElĂ­seos, SP Brazil E S TA B L I S H E D

1962 NUMBER OF MEMBERS

375 MANAGEMENT

President: Wadi Tadeu Neaime Vice-president: Arnaldo Basile

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