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3D Printing sustainability throughout the Supply Chain


The Big Issues Facing Manufacturers In 2015 W E L C O M E T O T H E L A T E S T issue of

Manufacturing Global where we are discussing the ever-present trend of reshoring. Manufacturing companies in the US, the UK and Europe are bringing production back to home shores. A desire to improve quality coupled with rising wage costs overseas have sparked a reshoring trend that is set to continue for years to come. Manufacturing Global takes an in-depth look at the trend and discusses what it means for manufacturing firms on a global scale. Also in this issue we unveil the top 10 manufacturing trends of 2015. From additive manufacturing to IoT technology, from social manufacturing to nanotechnology, we prep you on every major development you need to keep your eyes on in the year ahead.

Enjoy the issue!

Abigail Phillips Editor abigail.phillips@wdmgroup.com 3

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TOP 10



PEOPLE & SKILLS The Great Reshoring Debate



3D printing leads to sustainability Throughout the manufacturing supply chain

14 5



National Waste and Recycling Association (NWRA)



Water Africa




34 Rawlplug

84 Flying Machine


98 IVECO Trucks Australia & CNH


112 Association: New Zealand Manufacturers and Exporters Association (NZMEA)

NEXANS Colombia

42 Water Africa

AMERICA LATINA 52 NEXANS Colombia 64 Furukawa Mexico



120 SABĂ“

76 Association: National Waste and Recycling Association



February 2015

140 Association: ABIMAQ

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New Zealand Manufacturers and Exporters Association (NZMEA)


Flying Machine



IVECO Trucks Australia & CNH

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BALDAN The Brazilian Machinery and Equipment Association (ABIMAQ)




3D printing leads to sustainability Throughout the manufacturing supply chain The impacts of 3D printing on logistics and manufacturing Writ t e n by: DAR R E N TRAVE R S S e n i o r A c c o u n t M a n a g e r, AEB (Inte rnational) Ltd

3D PRINTING, OR additive manufacturing (the official term for production based on 3D technology), has been used by the automotive and aerospace industries to build prototypes for some time now, and over the last few years, 3D printing technologies have evolved at a rapid pace. Fashion designers, architects, artists, and food technicians are experimenting with it in their respective fields. The new technology’s potential seems almost boundless. Nike, for example, recently launched the first athletic shoe including 3D-printed components. 3D print technology makes it possible to create nearly any geometric form with the help of design software – incorporating hollow spaces and filigree honeycomb structures, for example, that are much lighter than traditionally manufactured components, but offer the same stability. In medical technology, 3D printing has already achieved standards on a par with traditional manufacturing methods. Dental crowns, hip joint prosthetics, and customised hearing aid shells: 3D printing is used wherever “replacement parts” for the body are 9


‘Dental crowns, hip joint prosthetics, and customised hearing aid shells: 3D printing is used wherever “replacement parts” for the body are needed’ 3D printing is used wherever “replacement parts” for the body are needed


February 2015

needed. The medical industry will see even more revolutionary developments in the years to come. Researchers are experimenting with the printing of human cells: artificial skin for burn victims, artificial ears, and artificial kidneys are no longer a utopian vision. A Swiss-made 3D printer is designed to manufacture lung tissue, and soon it will also print jawbone implants. Manufacturers from all industry sectors are exploring which items they may be able to produce using 3D print technology, and logistics service providers are launching pilot projects to identify the need, potential and options for adjusting their business models to include 3D print services. Components manufactured with 3D printing offer the same safety and stability as the traditionally manufactured components they replace, but at a fraction of the weight. Integrating such components into finished aircraft, for example, helps save fuel and reduces CO2 emissions. 3D printing enables decentralisation, saving transport costs and driving down overall logistics expenses. It is also useful for small production batches or limited mass production, and for creating the required moulds

Nike recently launched the first athletic shoe including 3D-printed components for this type of manufacturing. In the future we may store replacement parts in virtual warehouses rather than distribution centres and print them based on demand, which would significantly reduce required storage space and resources. This may also provide the foundation for high-wage countries to “near shore� production back home following earlier outsourcing to low-wage countries, and saving customs duties based

on electronic transmission of digital design plans for local production rather than importing the actual goods. At this point in time, however, it is still unclear to what extent 3D printing is capable of outstripping traditional manufacturing and logistics processes, or even replacing them. Despite its potential, 3D print technology is also subject to limitations. To begin with, it cannot compete with the speed of traditional 11


3D printing can reduce expenses throughout the manufacturing supply chain manufacturing processes and is not yet suitable for mass production. Plus, traditional processes for mass production are significantly cheaper than producing large quantities based on 3D print technology. Additionally, if products require smooth surfaces, they will need finishing following 3D print production, because it leaves a rough surface structure on objects made of synthetic fibres. Various product liability issues remain unresolved, too: if anyone can become a manufacturer or 12

February 2015

‘Manufacturers will no longer keep large volumes of standardised products in stock, moving instead to a more flexible manufacturing model based on the ‘made to order’ principle”

3 D P R I N T I N G L E A D S T O S U S TA I N A B I L I T Y

producer, who assumes liability when something breaks? 3D printing is still so young that the law lags behind on such issues. On the regulatory side, 3D printing also has the potential to undermine control mechanisms that ensure products are safe and appropriate for the market. Customs authorities lose their oversight capabilities when goods are no longer transported across borders; they would not be able to conduct consumer protection or safety controls, or keep counterfeit goods off the market the way they do now. With 3D printing, goods may no longer need to be shipped halfway around the world, because they can be printed close to the consumer. But this doesn’t mean that we will soon only be shipping raw materials and 3D print cartridges. Not quite yet. In fact, experts are sceptical that the technology will have much of an impact on global transport volumes in the near future. The trend toward custom production is currently more likely to boost “last-mile” shipping, i.e. the movement of goods from a transport hub to their final destination

3D printing also has the potential to undermine control mechanisms that ensure products are safe and appropriate for the market

in the area. But one thing is certain: The market share of 3D printing technology will increase and the trend toward customisation will continue. We will all benefit from the new technology’s ability to accommodate individual customer requests during production. Manufacturers will no longer keep large volumes of standardised products in stock, moving instead to a more flexible manufacturing model based on the “made to order” principle. The most likely outcome is that 3D printing will take its place alongside traditional production technologies, rather than replace them. 13





The economic pros and cons of reshoring to the US, the UK and Europe. Wr i t ten by: AB I G A I L PH I LLI PS


PEOPLE & SKILLS MANUFACTURING COMPANIES IN the US, the UK and Europe are bringing production back to home shores. A desire to improve quality coupled with rising wage costs overseas have sparked a reshoring trend that is set to continue for years to come. In a report conducted by law firm Squire Sanders, one in six British companies have ‘reshored’ production in the last three years and the figures follow a similar trend in the US and across the rest of Europe. However a report on the new phenomenon shows that while a growing number of companies are returning to the US, the UK and Europe to do their manufacturing, the trend is smaller and less significant to the economy than it appears.

‘A desire to improve quality coupled with rising wage costs overseas have sparked a reshoring trend that is set to continue for years to come’ 16

February 2015

The authors of the report say they had been intrigued by the large number of recent media stories suggesting a small stampede back to home shores by manufacturers but had thought much of the evidence seemed anecdotal. So they began tallying up the number of reshoring cases they found. “We saw that the number of cases was definitely growing, and so then that begs the other question, which is, well, what’s the economic impact of that?” says Patrick Van den Bossche, a partner at A.T. Kearney. In the US, there were just 64 reshoring cases in 2011, while this year there will be around 300, with electronics and transportation equipment companies leading the way. High-end apparel surprisingly was the third most common sector. The driving factors include energy costs lowered by the shale oil boom and a closing wage gap with China. But Van den Bossche says that while more companies have good reasons to consider coming home, in context, the impact of the small number actually returning is less significant than it appears. “You see more manufacturing


Rising wages abroad makes home-grown manufacturing more appealing


PEOPLE & SKILLS activity within the US,” said Van den Bossche. “But relatively speaking you’re actually seeing even more in Asia for products coming to the US.” And that means the US trade deficit with the rest of the world is still huge. “There’s a trend here that says that, ‘Yes, we are starting to manufacture more, we are getting more and

more competitive,’ but it’s not quite yet showing in the economic data,” Van den Bossche says. None of this is news to Harry Moser, the founder and president of the Reshoring Initiative, which helps manufacturers relocate to the United States. Moser has been a big promoter of the reshoring trend, but he says

“Yes, we are starting to manufacture more, we are getting more and more competitive,’ but it’s not quite yet showing in the economic data” - Patrick Van den Bossche, a partner at A.T. Kearney. Manufacturers acorss the UK, the US and Europe are reshoring


February 2015


Patrick Van den Bossche

Reshoring will continue

the phenomenon can be overstated. “No one claims — at least we don’t claim — that you’re going to see a million new jobs from reshoring next year,” Moser says. “That would be totally irrational, irresponsible. And we don’t have the workers, the skilled workers, to do it.” Moser says things are changing, but that these have been — and will be — long, drawn-out processes. “It’s taken 60 years for [offshoring] to happen, and it’s going to take decades for it to reverse,” he says. “For our trade deficit to be eliminated, for reshoring and foreign direct investment to bring many of those jobs back.” The important thing, he says, is that the incentives to move overseas are growing less attractive, and more companies are at least thinking about manufacturing domestically. He says his group’s figures show that while the US was losing 150,000 jobs a year to offshoring 10 years ago, the numbers of jobs lost to and gained from overseas last year were roughly even. Moser believes that trend will continue — even if, as this report suggests, it’s taking a while to build up steam. 19

TOP 10



Manufacturing Global considers the top10 manufacturing trends shaping the industry in 2015

W r i t t e n by : AB I G A I L PH I LLI PS


TOP 10


Internet of Things (IoT) technology

The Internet of Things (IoT) allows devices to communicate with one another automatically without human input and is having a profound effect on the manufacturing sector. The benefits of IoT technology include, reduced down time due to the fact that machines can notify mechanics about defects and required maintenance; increased quality; less waste; and greater visibility of the manufacturing floor via big data analytics, which in turn leads to improvements across the board.


February 2015



Social media

Communicating thoughtfully through social media and other new and secure technologies can help manufacturing firms enhance visibility and improve reputation. In 2015, there will be a much greater emphasis on social communication and Internet marketing due to the fact that manufacturers can monitor concerns, track customer trends and demands, and promote successes for a marginal cost.


TOP 10


Additive manufacturing

Additive manufacturing, or 3d printing, is big news in the manufacturing sector. The new technology has captured the imagination of the general public and manufacturing executives alike, however it has also proven to be a game-changer for the industry. Additive manufacturing technology has evolved so much in recent years, to the point where it can produce components made of metals, mixed materials, plastics and even human tissue. The benefits of 3d printing include shorter lead times, improved quality and reduced waste, flexibility and cost savings. Additive manufacturing is creating a shift in the way engineers and designers think about product development, therefore changing the way we train future manufacturing employees.


February 2015




Nanotechnology is one of the most interesting – and potentially game changing - technologies to come to the fore in recent years. Nanotech, or the manipulation of matter on atomic and molecular scales, is currently used to describe micro-scale technology in everything from space technology to biotech. As such, nanotech has already changed the world. But the fruition of atomically precise manufacturing (APM) — nanotech’s next phase — promises to create such ‘radical abundance’ that it will not only change industry but civilization itself. 25

TOP 10



The rise of a more technical labor force to manage supply chain operations — combined with rising wages in Asia, higher shipping costs and the need to accelerate time to market to meet retailer and consumer demands — has led to more companies shifting their manufacturing strategies from outsourcing overseas to developing products closer to where they will be sold. “Next-shoring,” as this tactic has been dubbed, allows manufacturers to increase the speed at which product is replenished on store shelves. The faster inventory can be moved to the consumer, the sooner the costs to warehouse, ship and dock goods can be freed up. 26

February 2015



‘SMAC Stack’

A manufacturing comeback is being driven by SMAC — social, mobile, analytics and cloud. The SMAC Stack is becoming an essential technology tool kit for enterprises and represents the next wave for driving higher customer engagement and growth opportunities. The need to innovate is forcing cultural change within a historically conservative “if it’s not broke don’t fix it” industry, and SMAC is helping early adopters in the manufacturing market increase efficiencies and change.


TOP 10



More than in any other industry, manufacturing relies on innovations in technology to drive efficiencies, reduce production costs and help bring products to market. But can the same be said of manufacturers’ use of technology to help drive their marketing and sales? The answer up until now is a resounding, ‘no’. For a long time, manufacturing and marketing have been worlds apart and manufacturers have left it to external PR companies to sell their products – not any more. In 2016, marketing and manufacturing will become one and the same.


February 2015



Capital investment

Though the slow economic recovery continues to hinder expansion and growth opportunities, recent government and industry reports show an uptick in capital investment funding. As manufacturers become focused on capturing value through innovation, original design and speed to market, they are increasing spend for upgrading plant, equipment and technologies. 2016 looks set to be the year of the big spenders. 29

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Greater flexibility

Consumers expect products on-demand and to specification. With the rise of smart factories, manufacturers will increasingly look towards manufacturing equipment that is adaptable and flexible to appease the needs of consumers, while saving waste and downtime. 31

TOP 10


Greater visibility

The Internet, social media and big data are forcing manufacturers to become more customer-centric. The traditional business-tobusiness model is becoming outdated because today’s connected consumers are better informed and expect products on-demand. Consumers compare, select or buy multiple products with a tap of their smartphone or tablet, and online channels have become their preferred communication platform. This consumer purchasing style is not only having an impact on


February 2015

brand-oriented value chains, but is transforming traditional B2B to B2B2C models. Furthermore, consumers are becoming acutely aware that manufacturers can measure every aspect of their production, from energy consumed to waste managed and cost saved. With this in mind, consumers are demanding visibility from a sustainability, labour, cost and production perspective, and there is no excuse for not making this available.



Rawlplug Steps Up

International Growth with New Dedicated Business Written by: Tom Wadlow Produced by: Richard Durrant



The global leader in the manufacture of anchoring and fixing systems continues to exercise trust and innovation across the whole company, staying true to its 1919 heritage


awlplug is set for an exciting 2015 as it launches its new venture Rawlplug International, a key part of the company’s plan to continue down the path of efficiency, innovation and growth. These three tenets are evident across a range of work and projects carried out by the anchoring and fixing producers, which include a number of initiatives aimed at internal efficiency and sustainability, something which is valued extremely highly across all layers in the business. In terms of growth, since being acquired by Polish company Koelner in 2005, the partnership has developed rapidly. Koelner renamed itself Rawlplug in 2013, and having generated incomes of ₏10 million in 2000, the holding company now earns in the region of ₏170 million a year.

Rawlplug has heavily invested in its production facilities


Rawlplug International Having launched in January of this year, Managing Director Mattias Andersson believes this exciting expansion will help maintain the upward trajectory of the group as a whole. He said: “I want Rawlplug to grow by 30 percent in the next three to five years and I believe we will achieve this. With the Rawlplug International set up, we are ready for growth, and the UK team will develop and improve the excellent work we have achieved in previous years.” The UK business is now headed up by David Harvey, who will bring his wealth of expertise into a new chapter in Anderson’s stead. Rawlplug International, still headquartered in the UK, will be taking the company’s products and services around the world, with initial primary focus on the Commonwealth countries and the United States. Rawlplug has been a world pioneer and leader since it began all the way back in 1919 with John Rawlings, and now supplies a range of anchoring and fixing products to construction, retail and industrial markets. Its extensive product range includes bonded and mechanical anchors, lightweight fixings, insulation fixings for roofing and facades, selfdrilling screws, passive fire protection, sealants & foams, gas & powder actuated tools, DIN standard fasteners, MTO fasteners for the car industry and power tool accessories.

Key Personnel

Mattias Andersson Managing Director (Business Dev. Dir. for UK, France, Irland, Scandinavia, Portugal and Spain) The Swedish born Mattias Andersson is a 16 year veteran in the industry and has spent 8 of them with Rawlplug SA. His last 5 years living in the UK successively turning around 2 subsidiaries of one of the oldest fixing companies in the world. He has worked his way up the structure with great success and has always been continuously rewarded with frequently new challenges and bigger responsibilities. The experience & knowledge Mattias has gained during this journey, combined with his experience from business trips around the world is priceless. Mattias is a driven, hand’s on person who motivates his employees by example and by sharing his positive attitude, knowledge and experience. Through the many challenges he has demonstrated to the Rawlplug Team that everything is possible.

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Key Personnel

David Harvey Managing Director Rawlplug Ltd David has 30 years experience and a highly successful background across our industry. Having delivered impressive results across the fixing industry and has experience in developing and managing sales units and people. David’s skills, recent success and his background will assist Rawlplug Ltd to deliver strong performance outcomes from our existing customers and progress the strong development opportunities in our non performing sales channels. David’s leadership and focus on improvement of existing customers and the development of new opportunities will position him well to drive further development and growth across the Rawlplug Group. David Harvey has over the past 3 years successfully been developing the sales of EWI and Flat roofing in the UK from 0% to a significant market share.


February 2015

Rawlplug has extensive R&D facilities

Investing in Innovation Research and development (R&D) will be a crucial driver of further company growth, and Rawlplug has recently invested in a number of innovative projects to help deliver efficiency and quality for customers. “Going forward R&D is imperative,” Andersson added. “We have 35 people working on this across three different locations in Glasgow and Poland. “Without R&D we don’t have a future and we know we have to come up with new and modified products; this is also about new packaging, new points of sales and new marketing. This is what we have done over the past four years and now we are perfectly placed to hit the global market.” “We need to be even more efficient in the factories and communicate better internally


and externally in order to compete with the likes of China on the manufacturing side. We are building up in order to double our capacity and become more reliable.” Several new internal systems are driving efficiency across the company. A new warehouse management system is removing any errors relating to delivery of goods thanks to simple yet extremely effective barcode technology. Rawlplug’s customer relations management system ensures that group makes the right decisions with clients, based on a true understanding of their needs and a drive to make them more profitable. Customers now also benefit


“Without R&D we don’t have a future and we know we have to come up with new and modified products” – Mattias Andersson, Managing Director, Rawlplug.




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Key Personnel

Radoslaw Koelner CEO Rawlplug SA Since the very beginning of his professional career he has been with the Rawlplug SA (formerly known as Koelner SA) which has been transformed from a local, family-owned enterprise into an internationally successful global company. I have held the office of CEO at Rawlplug SA since 1999. Throughout the years Radek has worked his way up within the structures, having been willingly engaged in a wide range of tasks assigned to various different departments. By pursuing such methods, this enabled him to study the company’s operations on all levels and observe them “in motion”. He is convinced that his active involvement has allowed him to become a professional leader. He is very much interested in environmental sustainability and he tries to support various charities. The main field of his recent interest covers ideas connected with the Corporate Social Responsibility (CSR) topics.


February 2015

from Rawlplug Essentials, a point of sale system which offers customers ‘minimal’, ‘optimal’ and ‘maximum’ product ranges suited to them. Sitting above these systems is PIM (Product Information Master), which contains all product information. Any change made to the status of a product on PIM automatically updates the other systems beneath it such as the warehouse management system, allowing instant and accurate visibility of operations. Further to this, Rawlplug is increasing its e-commerce activity to increase sales distribution channels to direct, wholesale and retail customers. Sustainable Growth What growth that will be achieved in the coming years Andersson is determined to make sustainable, both in the economic and environmental sense. Minimising Rawlplug’s environmental impact is certainly a priority moving forward. “This is another area of the business which has been built up and now has its own dedicated website,” Andersson said. An example of the company’s dedication to this principle is the development of a brand new ecofriendly packaging for its products which contains special fibres, conforming to a sustainable brand image while not sacrificing quality or appearance. The group also measures emissions from each factory and journeys made by



Company Information

production and distribution hub


Manufacturing HEADQUARTERS

Glasgow, Scotland FOUNDED



staff in a bid to become carbon neutral. Andersson concluded: “For us this will help the world to recognise that we are a responsible company, that we are taking social responsibility in local markets, and that we force ourselves to be even more efficient in our own supply chain. From our banking partners through to our customers we are concentrating on sustainability and they start to recognise our responsibility in getting emissions etc in the right directions.” “The environment is a hot topic within the politics of the European Union and social responsibility of business is taken extremely seriously, and something which will help us to create a better future.”


Anchoring and fixing solutions; Construction; Manufacturing

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WATER AFRICA Diversifies

Range to Fulfil Huge Demand Africa and Beyond Written by: Tom Wadlow Produced by: Dennis Morales

s Product nd in South 43






February 2015

ater Africa is making and supplying vital products for civil and industrial projects across South Africa and further afield as it continues to build up assets and grow strongly. The cornerstone of this has been the companyled manufacturing of hoses from its Johannesburg facility, with new hoses set to enter the market this year. This is not forgetting the continuing trading partnerships with other manufacturers, for whom it distributes products straight to project sites, acting as a one-stop-shop for all contractors.


With Directors Wayne Grace and Ronnie Dennison involved in the trading of water pipes, hoses and other related goods and systems since the 1980s, Water Africa came together in 2010 and has not looked back, building on established relationships with clients. The company is now looking to expand its presence not only geographically across Africa but also in terms of industrial sectors, with mining a particular focus moving forward. Grace said: “Now we have added the assets

“We are well situated to get to all of our project areas and have extremely good staff throughout the country looking after our businesses.” – Wayne Grace, Director for Water Africa

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“Our growth has been driven by civil infrastructure as there is a huge demand for water and sanitation in South Africa and the whole continent” – Wayne Grace, Director for Water Africa

and manufacturing facilities we have a great base and can build around this. We are well situated to get to all of our project areas and have extremely good staff throughout the country looking after our businesses.” Growing with demand Water is arguably the most precious resource on the African continent, and in South Africa the demand is surging as the country’s economy develops and diversifies. Water Africa is not only able to provide all necessary hosing and piping products for water services, sanitation, plumbing, building and irrigation projects, but also on hand to train and advise engineers. “Our growth has been driven by civil

Hoses supplied by Water Africa


February 2015

Water Africa’s Warehouse

infrastructure as there is a huge demand for water and sanitation in South Africa and the whole continent,” Grace added. “It has come from going into the hoses business where we have had around 30-40 percent growth from 2010 to now. “Because there has been such a big move from rural to urbanisation there is a massive demand for this and a huge backlog that needs to be tackled. The older systems are not designed to deal with the numbers of people now living in the built up areas.” Asset base Water Africa manufactures its hoses in Johannesburg, while also participating in joint

40% Business growth since 2010 after going into the hoses business.

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Ware Africa Warehouse

ventures in the production of PVC with HMT Projects and Mining Pressure Systems. Further offices in South Africa can be found in Durban, Limpopo, Bloemfontein and Mbombela. Its own manufacturing facility comprises five exclusion lines, while the company also takes up around 80 percent of production for HMT and 60-70 percent for Mining Pressure Systems, creating products relevant to the projects Water Africa supplies, civil infrastructure and agriculture being two key areas. New hydraulic hoses will help the business make further inroads into the mining sector this year, a key part of its expansion plans.

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February 2015


“We want to move up as far as Tanzania and the Congo through finding agents in those areas,” Grace added. “This will involve going to a lot of mining and industrial shows in those countries where we can explore and find these agents.” “We are already involved in several agricultural projects in Zambia, Mozambique, Angola and some other countries through third parties. Now it is time for us to get further into the mining industry as well as this is a great growth area for Africa, and in Zimbabwe we have two contracts already in what is a fast-growing market. It will give our hose factory sustainability.” Project pipeline Enhancing Water Africa’s growing reputation is a strong portfolio of completed projects across Africa, with Grace adding that the company has anywhere between 30 and 50 separate involvements in programmes going on at any one time. Such projects vary greatly in terms of size and nature, varying from supply-only and specialist welding to training and full installation. At the Waterkloof Airbase on the outskirts of Pretoria, South Africa, Water Africa was

Water Africa has a strong portfolio of completed projects.

“Now it is time for us to get further into the mining industry as well as this is a great growth area for Africa, and in Zimbabwe we have two contracts already in what is a fast-growing market” – Wayne Grace, Director for Water Africa w w w. w a t e r a f r i c a s a . c o . z a



Pipes supplied by Water Africa

“Both mine and Ronnie’s sons are in the business and still in their twenties, and we want them to come into management roles by the time I step aside in about ten years” – Wayne Grace, Director for Water Africa


February 2015

Wayne and Ronnie at the 2014 end of year function

responsible for the water and sewage works on a project which saw the construction of two new runways. In total the four-year development was worth R250 million to the company. In terms of delivering products to various works across the continent, Water Africa has its own fleet of 5-8 tonne trucks and also makes use of local transportation companies for heavier loads in partnerships that stretch back for many years. Grace said: “These are operators we have


been dealing with for the last 10-15 years which have grown with us. To successfully trade in South Africa you must get your BEE score and we concentrate our procurement operations on building up a competitive rating. If you don’t have the right BEE score, you will not pick up business.” The director also has his own team of 75 staff to draw upon, all of which put through various training programmes on equipment, maintenance and new technologies, with the sales team being trained in-house. Through continuing to supply, train and carry out work at important infrastructure and industry projects across South Africa and beyond, Water Africa looks set to grow off of its manufacturing asset base and into other territories and industries like mining. Such growth potential excites Grace, who believes there are many positive directions the company can take in the coming years. He said: “Both mine and Ronnie’s sons are in the business and still in their twenties, and we want them to come into management roles by the time I step aside in about ten years.” The pair have a succession plan in place for sons Ryan and Jermaine to take control of operations, and the future looks bright for when the transition is complete. Grace concluded: “There are many people looking at investing in this type of industry which opens up possibilities of bringing in partners, listing on the stock exchange and securing extra funding. This is where building up assets has been vital.”

Company Information INDUSTRY

Manufacturing HEADQUARTERS

Johannesburg FOUNDED




Hose/Pipe manufacturing

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Nexans Colombia

Strengthening Industrial Connections

Nexans Colombia relies on the brand’s global resources to supply high-quality cables for infrastructure, construction and mining industries as a step to obtain a larger share of the domestic market. Written by: Rebecca Castrejón Translated by: Rafael Tablado Produced by: Diego Pesantez Interviewee: Ernesto Silva Monterrey, CEO, Nexans Colombia


N Nexans plant in Bucaramanga, Colombia. One of 99 worldwide

Welding cable 54

February 2015

exans is an aluminum and copper cable manufacturer of French origin, which has since settled in Colombia after the acquisition of CEDSA, which has a history of its own. The company’s products support different sectors such as energy, the oil industry, construction and infrastructure, among others. Nexans was founded in 2000 and currently is the second largest cable manufacturer globally

Inside the manufacturing plant


with affiliates in more than 40 countries; Nexans Colombia is one of these outstanding affiliates in Latin America. CEDSA opened in Colombia in May 1983 as a flexible cable manufacturer. CEDSA experienced terrible losses in machinery, inventory and raw material after a tragic flood affected the country in 2005; the company managed to recover before the end of the year.

Key People Luis Silva CEO, Nexans Colombia Nexans Colombia’s CEO is a mechanical engineer; Silva graduated from Francisco de Paula Santander University in 1996, majoring in maintenance and high management at Santander Industrial University (UIS) between 2000 and 2010. Other academic achievements include post-graduate studies in international business and finance at Sabana University, concluded in 2013. Silva has worked for Nexans Colombia since the days when the company was named CEDSA, years before the acquisition by the French corporation. He joined as Maintenance Engineer in January 2002, afterwards he engaged in manufacturing and in September 2008 became plant manager. Silva was appointed as Nexans Colombia CEO in December 2014.

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Nexan’s Colombia training crew

In 2007, CEDSA was purchased by MADECO, a South American corporation. And in September 2008 the Nexans group acquired the company in its totality. Nexans presence in Colombia’s Oil & Gas fair

Nexans Colombia supplies the domestic industry with first-class cables—manufactured under the most demanding standards— which connect Colombia’s most important developments. Their plant is certified by ISO:14001 for their EMS, ISO:9001 requirements for quality management systems and OHSAS:18001 health and safety management systems, among other certifications. Some of Nexans Colombia most sought-after products are cables for reeling applications,


February 2015


Cabling solutions for the industrial sector

aluminum conductors, towing cables, fireresistant cables, data transmission cables and patch cords (such as LAN cables), cables for mining and oil extraction purposes, lift cables and fluorescent cables. The company also offers after-sale services such as training, update seminars, repair, maintenance and emergency assistance.

Nexans Colombia supplies the domestic industry with first-class

As part of the company’s policies and their commitment with society and the environment, Nexans Colombia’s products are halogen-free and packaged in recyclable material.


“A factor that makes us stand out from the rest is our commitment to each client; we deliver on schedule, we offer pre- and after-sales support, w w w. n e x a n s . c o


NEXANS COLOMBIA and we provide the timely kind of response our market demands. All these traits make up for client satisfaction levels of 97 percent or above,” said Luis Ernesto Silva, CEO for Nexans Colombia. Silva has worked for Nexans Colombia previous to MADECO’s acquisition of CEDSA. He was named plant manager by 2008 and by late 2014 was appointed as the Chief Executive Officer for the Nexans affiliate. The journey from CEDSA’s beginnings as a family business, having been part of MADECO, to


finally joining Nexans’ global subsidiary network, provides the company with the corporation’s experience and advantages, strengthening its presence by having a market share of 15 percent. “The corporation has supported us relentlessly; we have access to the same kind of technology as the rest of affiliates worldwide, even though Nexans is practically a new brand in the domestic market. Also, in just a few years we experienced the transition from a family-run enterprise into a global operation,” Silva added. Value Chain and Suppliers’ Role The procurement and logistics department is in charge of a vast array of operations from obtaining raw material up to product distribution. The company operates based in the brand’s global value chain, striving to secure the best materials and procedures available; for example, logistics obtains from Chile and Peru’s subsidiaries, the highest quality copper for cable production.

“The pillar of our business strategies is focused in the individuals comprising our staff: trained, motivated, skilled professionals able to understand our clients’ needs. These are core values to accomplish our highest goals” – Luis Ernesto Silva Monterrey, CEO of Nexans Colombia

“Suppliers play a very important role in the company’s value chain; some of them are vital for us from obtaining raw material up to waste management, with packaging and freights worth mentioning, too,” Silva remarked.

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NEXANS COLOMBIA Current Operations

Automation has played a big part in Nexans Colombia’s procedures

Clients receive Nexans’ products through construction contractors and utilities, which means brand placement focuses on these two entities. As a result, Nexans Colombia has earned several contracts with the Group EMP and in projects with a bi-yearly cost of more than $20 million in the last six years, including works with Pacific Rubiales, Ecopetrol, CODENSA group and others. Automation has played a big part in Nexans Colombia’s procedures by raising productivity


and lowering costs through “Direct Machine Control” software. “Converting into Nexans’ global culture demands an upgrade in every process for a client-centered business frame,” pointed the company’s CEO. HR Management Resulting in Leadership Waterproof

The Nexans Excellent Way program considers every procedure in their global value chain. The trade’s best practices and leadership are permanent goals for the program, as well as making employee safety a top priority. The strict observance of these principles resulted in zero labor accidents during 2013.

multipolar cables

“Continuous improvement has a presence in just about every area in the company. Our purpose is for each individual to be proactive within their position’s development,” Silva said. Forecast: Sights on Domestic Growth The company’s plans for the near future include an aggressive approach to the domestic market. Set goals for 2015 and 2017 are w w w. n e x a n s . c o



Cables for industrial purposes. Timely response for demanding clients

“As an option in the market, we must offer high quality products at affordable prices, delivering on time to solve our clients’ needs” Copper is the main material for Nexans cables


February 2015

– Luis Ernesto Silva Monterrey, CEO of Nexans Colombia


Company Information NAME

Nexans Colombia INDUSTRY

Cable manufacturing HEADQUARTERS Febrero

Bucaramanga, Santander, Colombia FOUNDED

1983 CEDSA, 2008 Acquisition EMPLOYEES

15 and 17 percent growth, respectively, with an aim to become the country’s second largest company within the industry.


USD $80 million

In order to achieve this goal, Nexans Colombia will expand its catalogue, provide a full line of products for all of their clients’ requirements and introduce halogen-free and flexible cables.



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Leading supplier for the automotive industry

“Our vision of fitting at least one Furukawa Mexico product in every car in the Americas” Written by: Rebecca Castrejon Produced by: Diego Pesantez Translation by: Rafael Tablado Interviewee: Manuel Euyoqui, CFO

F U R U K A WA M É X I C O , S . A . D E C . V.


urukawa Mexico was launched on September 9, 1997, in the border city of Mexicali, Baja California’s state capital. Since operations began on April 22, 1998, FURUKAWA has become an outstanding supplier for airbag and fuse box materials, due to the company’s quality management, and also for emphasizing in worker safety, the strength of their machinery, and rate of waste reduction in their supply chain. As an affiliate of Japan’s Furukawa Electric Company, the Mexican manufacturing branch built a name for itself through world class quality standards for their electrical devices production under ISO/TS 16949:2002 standards, fulfilling a need in the automotive industry. The company has also diversified its portfolio, becoming an important supplier for brands in the electric and auto industry. Its clients currently include Honda, Toyota, General Motors, Saturn and Susuki, as well as for manufacturing companies like Nexteer Automotive and Delphi/ Packard. FURUKAWA’s main product output includes airbag connections, fuse boxes, wire harnesses, terminals, optical fiber, high voltage wiring for solar energy supply, heat spreaders for control panels, and other parts for car manufacturing.


February 2015


“The company first opened in San Jose, California; we were in charge of the moving process all the way to Mexicali. The manufacturing plant operation began in 1997 and we’ve kept growing steadily ever since,” says Manuel Euyoqui, CFO for FURUKAWA. Euyoqui, an accountant, has served at Furukawa for 17 years. He currently oversees the company’s financial endeavors in Mexico and American Furukawa, the company’s branch in the U.S. “Innovating together” Innovation is an essential part of Furukawa companies’ DNA worldwide; their “bound to innovate” motto is a call to action for FURUKAWA and their branches to deliver brand-new solutions to the sector. Their latest tasks involve development of different equipment, such as

Key People

Manuel Euyoqui CFO Euyoqui is an accountant, graduated from UABC (Baja California Authonomus University) in 1987. He also earned a Master’s in Corporative Finance in 1997 on behalf of CETYS university (Centro de EnseñanzaTecnico Y Superior, also in Baja California). He became Head of Accounting at Seagate Technology, a position he held until 1998, when he became hired by Furukawa Mexico as controller. His professional activities include being President of the business support committee for Colegio de ContadoresPublicos de Mexicali, A.C. (nonprofit local accountant’s association); and treasurer for the Asociacion de Maquiladoras de Mexicali, A.C. (non-profit local assembly-line plants association).

Steering angle sensor

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F U R U K A WA M É X I C O , S . A . D E C . V.

Furukawa on the globe

FURUKAWA, a leading provider for the

parts for ion-lithium batteries for electric cars, mobile phone antennas, optical fiber material, and other supplies for electric power. Additionally, in an effort to keep up with competition, increase revenue and achieve diversification, new products are about to be developed and marketed during the next few years.

automotive industry

“Furukawa is constantly innovating by developing new products and materials for the sector; this activity has had an important impact on society, since our company keeps launching high-tech products,� Euyoqui said.


February 2015


The human resource of FURUKAWA

Main competitors After surviving the conditions of a struggling market at its lowest points, such as a 1997 economic crisis, FURUKAWA Mexuci consolidated its operations both inwards and outwards by increasing the company’s presence in the domestic automotive market and by hiring a domestic staff for management positions. “Our Management Staff averages 15-year seniority in the company, is very stable, and most members are Mexican. There are only three Japanese nationals working here with us: the president and the professionals in charge of quality assurance and continual improvement,” said Euyoqui.

“Our vision is to become one of our country’s most important companies and one of Furukawa Electric most productive affiliates outside of Japan” – Manuel Euyoqui, CFO

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F U R U K A WA M É X I C O , S . A . D E C . V. In recent days, Furukawa Mexico has found itself in a state of constant growth, transforming the brand via vertical integration up to 90 percent in some products. THEIR LATEST ACCOMPLISHMENTS INCLUDE: Manuel Euyoqui showing regional recognition

• Inclusion of high value added products • Design for own equipment • Increase in global competitiveness as an outcome from productive innovation • Manufacturing own components “We compete among affiliate companies globally:


our branches in Philippines, Thailand, Malaysia, and beyond produce these same items. The innovations developed in recent years provide us with a competitive edge,” Euyoqui added. SOME OF FURUWKAWA MEXICO CERTIFICATIONS ARE: • OHSAS 18001 • ISO/TS 16949:2002 • ISO 140001:2004 Environmental policies

Manuel Euyoqui and Carrie Duncan within the

The company has been certified for complying with environmental awareness standards. One of the three certifications received by Furukawa Mexico is ISO 140001:2004, covering operation processes and domestic compliance laws in environmental matters; they also comply with their clients’ and other requirements and laws regarding the environment.

premises of Furukawa Mexico

“Besides being formally certified, as a company we are already into reuse, recycling, waste reduction, energy saving, water saving and paperless processes, which lead to a better environment,” said Euyoqui. HR management Personnel management has brought nothing w w w. f u r m e x . c o m


F U R U K A WA M É X I C O , S . A . D E C . V. but the best results. The 2,000 workers are internally considered “associates” and receive constant training to fulfill FURUKAWA’s best manufacturing practices. Perks provided by the company include recreational activities both in and out of the plant’s premises. Junction and relay boxes

“There are training programs at every level in the company, since staff with improved skills brings a better ROI,” said Euyoqui. Business partners FURUKAWA Mexico suppliers comply with every


requirement from the FENA APD (Furukawa Electric North America - Automotive Products Division) suppliers’ manual, guaranteeing quality and safety with every single product in their supply chain. Most of the strategic partners have witnessed the company’s growth encompassing more than two decades, since they first established in San Jose, California. “Our commitment to suppliers is a win-win model, mainly in FURUKAWA products which are made with copper and resins. When the economy has gone through a difficult period, most suppliers have been supportive and able to understand different situations; they have been certified for quality control purposes, thus strengthening our supply chain; they have displayed our mutual commitment to price, delivery and quality,” added Euyoqui.

Connectors FURUKAWA


Furukawa’s other 30 affiliates around the world are also strategic partners. In-house experiences and other exchanges make way for data sharing, manufacture improvements and better design practices. Furukawa Electric Group organizes periodic meet-ups with team members from all around the world, for the purpose of sharing information and updating affiliates about the brand’s most recent achievements. FURUKAWA was in charge of presenting the best practices for airbag connections during the last year, providing knowledge and data to engineers and executives w w w. f u r m e x . c o m


Products for relay boxes “wire harness”

from Furukawa companies worldwide. “This is a growing experience as a group, able to improve Furukawa Electric’s strength,” he said. Headquarters of FURUKAWA

Global expansion

in Mexicali, México

FURUKAWA Mexico is part of a global enterprise exporting more than 80 percent of its production to the United States, especially to Ohio and Michigan where Honda, Toyota and GM have manufacturing plants. Exports to Latin America head to Brazil and Argentina. FURUKAWA Mexico products are also exported to the Czech Republic, Japan, and China, and their business dealings reach all the way into South Africa.


February 2015


Company Information NAME

Furukawa Mexico, S.A. de C.V. INDUSTRY

Manufacture of electrical auto parts HEADQUARTERS

Mexicali, Baja California, Mexico

Employees show their training certificate

“We are very dedicated to strengthen our presence in South America, which is one of our most important markets considering our mission of fitting at least one Furukawa Mexico product in every car in the Americas,” said Euyoqui about regional growth. Currently one out of every five cars worldwide works with a part manufactured by Furukawa Mexico.





“We are dedicated to strengthen our presence in South America, one of our most important markets, considering our mission of fitting one Furukawa Mexico product in every car in the Americas” – Manuel Euyoqui, CFO w w w. f u r m e x . c o m


National Waste & Recycling Associat

The National Waste & Recyc Association (NWRA) is the vo all things waste and recycling

Written by: Jessica Mayorga, Interim Communications Director Produced by: Br


cling oice of g

rian Mooney 77


Executive Leadership Roundtable, 2014


he National Waste & Recycling Association (NWRA) is the voice of all things waste and recycling. NWRA is the trade association representing private-sector U.S. waste and recycling companies, as well as the manufacturers and service providers that do business with those companies. More than 800 association members—including large publicly traded companies and both small and large privately owned companies—operate in all 50 states and in the District of Columbia. The Association’s mission is to be the leading organization providing leadership, advocacy, research, education and safety expertise to 78

February 2015

promote the North American waste and recycling industries, to serve as their voice, to create a climate where members prosper and to provide safe, economically sustainable and environmentally sound services. History and Organization When Sharon Kneiss became president & CEO of the Association in 2012, it was evident that the industry was in transition. The Board challenged her to reenergize the organization, to get in front of the many changes the industry was seeing and to refocus Association efforts not only to promote the spectrum of waste handling solutions, but also to reflect the


importance of industry innovation in handling waste as a resource from which value can be extracted. Kneiss was also challenged to create greater value for the membership and to build both the image of the industry and a stronger capability on legislative and regulatory programs at the federal level. One of the key aspects of the Association’s work is its efforts at the state chapter level. NWRA recently added three states to its Chapter network and now serves 28 chapters in 30 states, addressing critical issues at the state and local levels. For instance, the Association was instrumental in passing legislation in states such as Florida, West Virginia and Wisconsin to protect trash truck workers by requiring motorists to slow down to safely get around the workers. The Slow Down to Get Around campaign remains a cornerstone of NWRA’s legislative agenda. Positioning Waste as a Valued Resource Central to the Association’s efforts is positioning America’s waste as

a resource from which to extract value. Sustained innovation in the waste and recycling industry over several decades has led to more methods for extracting value from waste than ever, including the most effective recycling system the country has seen in its history. By streamlining recycling with improved curbside collection and cutting edge Materials Recovery Facilities, or MRFs, we are recycling more than one-third of our waste, finding new purposes for recycled materials. Through state-of-the-art landfill facilities—which are critical components in the country’s spectrum of waste management infrastructure—America’s private waste industry is also producing increasingly valuable renewable energy through landfill gas collection. Highly regulated, highly engineered landfills serve as systems that regenerate some of our natural resources including the capture of methane gas emissions which are processed and repurposed as energy to power and heat homes and facilities. In the last year, the industry produced w w w. w a s t e r e c y c l i n g . o r g



The rally included dozens of representatives each from Laborers Local Union 108, Un

Service Workers Union Local 339, and the International Union of Journeyman & Allie Trades Local 726, NWRA members and business groups — at New York City Hall.

enough renewable energy through landfill gas to power 2 million homes and businesses. Landfill systems also capture wastewater to be treated on site or offsite ensuring the environment is protected. In addition to production, the waste industry is also a national leader in using alternative fuels, with many companies electing to shift their collection vehicle fleets to cleaner-burning compressed natural gas (CNG). Some of these companies use their own landfill facilities to produce this gas, powering the very trucks that service those facilities in a sustainable loop.


February 2015

The Voice on Waste and Recycling Issues As the recognized and respected voice of the waste and recycling industry, NWRA is looked to for guidance and information on major issues affecting members. The Association frequently provides official comments to federal and state regulatory bodies, including the U.S. Environmental Protection Agency, engaged in rulemaking on issues relevant to Association members. These comments support policies that promote the sustained growth and welfare of the industry, the safety of its employees, and continued development




of the country’s sustainability infrastructure. NWRA staff have also been tapped to offer their expertise on all things waste and recycling in a variety of public speaking functions, including—within the last two years—the Society of Environmental Journalists’ annual conference, an Environmental and Energy Study Institute recycling panel on Capitol Hill, an international paper recycling conference in China, and the SXSW Eco sustainability conference in Austin, Texas. Most recently, the Association stepped up to establish collaboration and information sharing among major government

agencies and additional stakeholders to provide guidance on how to deal with the issue of Ebola-related waste. As the Ebola virus became a nationwide concern in the United States, with several cases reported in the fall of 2014, NWRA provided information and coordination for the industry ensuring that its members had the education and resources necessary to make decisions regarding Ebola waste. The Association set out to work with leading government agencies to coordinate handling requirements and provide members with the information they needed to keep their employees safe and communicate to them how they w w w. w a s t e r e c y c l i n g . o r g


N AT I O N A L WA S T E & R E C Y C L I N G A S S O C I AT I O N would or would not be affected by handling this waste product. The Association forged and strengthened valuable relationships with key regulatory and governmental agencies while fostering dialogues, including a visit to the White House, that produced highly desired guidance for members. This exercise demonstrated the opportunity for successful collaborations among the various teams and experts that make up NWRA’s leadership and staff. This multi-pronged strategy allowed each team to fulfill their goals and roles while yielding value-add support to members at large. NWRA’s leadership in this space prompted industry partner organizations, such as the Solid Waste Association of North America, to link to the dedicated web page to drive their constituents to NWRA’s materials as the primary source of information on this topic. This case speaks to NWRA’s role as the accepted and trusted voice of the industry to which members look to for guidance and support on national, serious issues.


February 2015

Industry Leadership and Stewardship The Association has also enhanced its existing safety and education programs, and created greater capabilities in technology, including the creation of a recycling committee. The creation of a certification program marks an important and valuable new arena for the industry. As part of this effort, NWRA launched a certification program that promotes safety among professional commercial drivers. The Association developed the program to address the specialized needs of the industry and the specific driving hazards its employees face each day. The safe driver certification program, developed in cooperation with industry and insurance experts, promotes best practices in safe driving. An individual who successfully passes the certification exam has a foundational knowledge of industry best practices in driver safety. Certified drivers demonstrate a base level knowledge proficiency in the elements of commercial driving, safety protocol, procedure, regulations, standards and performance.


NWRA includes a number of institutes representing the interests of landfills, recycling, and healthcare waste. The association works closely with Penton Media to offer quality education programming at WasteExpo, North America’s largest waste and recycling exposition and conference. The Association also encourages its members to support one another through the Member Buy From Member Program. This program encourages members to consider conducting business with other members whenever possible. This is a unique program in the association space and delivers a new level of value by directly connecting members for the purpose of conducting business. NWRA works year-round to internally and externally recognize and promote the quality service and dedication its member employees provide their companies and communities, often above and beyond the call of duty. The Association recognizes many categories of award winners, including its Driver of the Year recipients and inductees into the National Waste & Recycling Hall of Fame, at the annual NWRA Awards Breakfast at WasteExpo. The waste and recycling industry is one that touches all Americans, is passionate and proud of the service they offer and continues to find innovative and productive solutions to handling waste. Learn more about NWRA at www. wasterecycling.org

Company Information INDUSTRY

Manufacturing HEADQUARTERS

Washington DC FOUNDED

May 1962 MEMBERS


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Flying Machine:

Thanks to Flying Machine Requires Just Two Whee

Through Flying Machine’s spirit of innovation and ge growing numbers of customers are able to enjoy a w functional design in their bicycles. Written by: Andrew Rossillo Produced by: Camilo Sanchez

e, Freedom els

enuine passion, steadily whole new level of stylish,


Bicycles being assembled in the workshop


he Flying Machine Fleet offers bicycles that suit a range of preferred style and purpose, all striking in both form and function. The passion, attention to detail and creative thinking manifest within every bicycle that is hand crafted in house by Flying Machine. “We make bikes, but it’s really not that simple. We are a custom bike maker that focuses on high-end products with a bend toward the creative and scientific approach throughout our processes,” said Flying Machine’s CEO, Inventor and Managing Director, Matthew Andrew. 86

February 2015

“Were quite different from a normal bike company,” said Andrew. Among many points that highlight the company’s uniqueness is Andrew’s background, which is in fine art, architecture and project management prior to starting Flying Machine. The company takes a significantly different approach to how things can be done and how they want things to look. Andrew explained that their work is driven from an aesthetic much different than many other bike brands and their typically sports-like appearance. “We strive for a more stylistic appeal in our designs—


ours are definitely not run of the mill,” said Andrew. Andrew went on to explain that another one of the company’s main advantages is that they are small enough to be flexible as far as being able to customise virtually anything their customers ask them to do. “When we first started, we weren’t making bikes anywhere near as customised as we make them today. But through the continuous process of being asked to do any number of customisations, we find that our process has become as customisable as possible. Having

the flexibility built in to do that is key to our success,” said Andrew. If You Were a Bike Built and Ridden in Australia What would you be like? If you’re a Flying Machine bike, you’re definitely high tech. Comfort is also of high importance, supporting long and enjoyable bike rides. The company does build to cater to a variety of riding experiences, from comfort and leisure-based to adventurebased. “For us, it’s about being able to ride everywhere—to and from work, to the pub on the weekends, to the market for shopping —

A custom F Series machine for a customer from Portland with the colour scheme based on the 70’s Gulf Oil racing team upon the customers request. This shot shows the super smooth, zero maintenance Gates Carbon Drive belt drive system. w w w. f l y i n g m a c h i n e . c o m . a u


C O M PA N Y N A M E This machine is a full custom geometry commuter bike produced for a customer who wanted something with the same fit as his road bike that could be used all year round with a ‘classic’ colour scheme.

leisure, transport and practicality in a modern city,” said Andrew. And because Flying Machine heavily incorporates customisation throughout its operations, they’ve made a point of tracking popular trends throughout their requests for customisation as well as identifying specific design elements that they feel particularly 88

February 2015

strong about. They’ve then taken these customised elements and essentially standardised them through their own internal replication and refinement in some of the lines of bicycles they now offer. “A couple of our models were born of customer requests, such as our very popular UCX [Urban Cyclo Cross], which came about through


a customer request about three years ago,” said Andrew. All the initial client had to do was ask if the company could make them a bike according to their exact needs, and Flying Machine readily answered in the affirmative. This affirmative reply was accompanied by additional modicum of enthusiasm, since it turned out that the company liked

the customised design so much they decided to build themselves one at the same time they were building their customer’s bike. “I liked the idea so much I made one for myself,” laughed Andrew. A keen alertness to daring new designs helped the company identify early on in the process that they were going to want to include w w w. f l y i n g m a c h i n e . c o m . a u


F LY I N G M A C H I N E this particular model in their regular lineup, which really proved to help drive its development. It is this daring charge into the innovative unknown that continues to help pedal the business forward with great speed. The company’s brave embrace of innovation is combined with a deep-rooted passion to deliver on customer desires, creating an unbeatable force. Top Factors Contributing to Steady Growth Andrew is quick to recognize the

power of the Internet as a significant enabler of the company’s steady growth. “We have the ability to communicate with such a broad audience all over the world on a daily basis while sitting in our studio here in Perth—it’s pretty amazing,” said Andrew. Of course, the Internet isn’t anything new. But it does continue to help Flying Machine secure new exposure and increased publicity by getting them out in front of an exponentially larger audience, more often. The company works to produce strong content and images of what they do. Flying Machine then works to apply this content and imagery in a number of different ways. Among the more recent applications that the company has found to be especially powerful has been social media outlets. Andrew and his team have been experiencing significantly better results increasing business exposure through the spreading of their content via bloggers versus traditional paid marketing. “We find that many of our customers find us through customers that came before them or through our social media channels,” said Andrew. Through increasing Internet engagement and spreading word


of mouth, whether it’s online social media or otherwise, approximately 40 percent of the company’s sales are credited to international buyers. Of that 40 percent, approximately 60 percent are U.S. customers, and the rest of the demographics are largely comprised of the UK and Europe, with a small amount reaching into Asia as well. Another key component of Flying Machine’s continued success is delivering on promises. “We do what we say we’re going to do,” said Andrew. “We want to make really nice bikes, good quality, made to last— that’s what we intend to do, and that’s what we do. This in itself helps us to get quite a few referrals from those who’ve had the chance to experience our bikes.” Flying Machine then works to tie all of that into a tidy package that can be viewed and shared on the Internet so people can see exactly what the company is capable of. Pedaled by Design-based Background Andrew credits his design-based background with much of the driving force behind the company’s distinguishing characteristics.

Instead of the bicycle-mechanic, sports or racing background which is typical of the industry, Andrew has a background in the arts, possessing a Diploma of Fine Art and Design (Major in Printmaking, Minor in Sculpture) from the Claremont School of Fine Art. “We’re creatively focused on what our customers are interested in. Yes, we like making bikes, and from a technical point of view we do indeed want them to be as high quality and cutting edge as possible. But there are all the other creative angles of what we’re involved with which we embrace as much as possible,” said Andrew. Andrew points out that this embrace can come down to the smallest of factors, too. This is especially true with the consideration that the bike industry is fairly conservative in relation to adopting new ways of doing things. “Granted, there are always innovators out there. But as a general rule, the bigger companies in the industry are less flexible and slow to take on new things. And even from a customer point of view, people generally like what they understand, and if something’s w w w. f l y i n g m a c h i n e . c o m . a u



UCX-Ti. Titanium version of the popular steel UCX model. Features of the UCX-Ti include 3D printed titanium lugs and full tailored geometry for every machine.

new and different, they can be a bit cautious. On top of that, people also tend to carry very strong opinions about their bikes,” said Andrew. “We’re very happy to be engaged in that whole process of looking for new ways of doing things. People don’t always agree with what we’re doing, but we don’t take that on board too much. And we definitely get more positive than negative,” 92

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said Andrew. And it is this courage to go against the grain and not just operate according to what has already been established as popularly acceptable that underlines the company’s innovative and pioneering spirit. The industry certainly wouldn’t have Flying Machine’s “sexy bikes” to enjoy. “We like to think that if you upset some people’s sensibilities then you’re


probably doing something right,� (CSIRO). The CSIRO is Australia’s Andrew said of the way the company national science agency and one of blazes their own path. the largest in the world, delivering solutions for agribusiness, energy 3D Printing Adds New Dimension and transport, environment of Success and natural resources, health, In the last year, Flying Machine information technology, has been doing exceptional, telecommunications, manufacturing groundbreaking work with the and mineral resources. Their Commonwealth Scientific and work delivers improvements to Industrial Research Organisation every aspect of life from oceans w w w. f l y i n g m a c h i n e . c o m . a u


HI tech electronic gear shifting from Shimano’s Di2 Alfine 11 give this version of UCX Ti extremely smooth and flawless performance.

F LY I N G M A C H I N E to energy, metals to medicine and sustainability to food. CSIRO also works at the forefront of emerging sectors such as gene technology and nanotechnology. With the significant impact that CSIRO has on so many sectors, Flying Machine is therefore quite enthusiastic and appreciative of the opportunity to work with them. “We’ve been working with CSIRO on 3D-printed titanium parts,” said Andrew. “The titanium products are our highest end items with the highest degree of potential customization—they’ve been one of the most significant factors behind our recent growth spurt. The key to our titanium products is their ability to be flexible. Every time we make a set they can be changed. Literally every bike we’ve made has been a slight design improvement on the one before it. We thought were going to have to wait years for the price of this technology to come down. But it just came down to meeting the right people and the right technology. “The key element of this process from a customer point of view is the custom fitting. The 3D-printed parts allow us to really tailor the


bike frame exactly to someone’s size requirements as opposed to having to buy a bike off the rack,” said Andrew. While the company’s standard size bikes obviously deliver solid performance, customers can expect a truly exceptional ride from their customised models. Andrew went on to point out the cost savings benefitted by the company. For example, the tooling to make one set of parts for a bike in production might have been in the $20,000 to $50,00 range to make, whereas, there is no tooling required using the 3D printing process. The 3D printing process allows the company to make the smallest of changes whenever they want without the extreme cost of retooling. “We can do it with complete flexibility. No tooling needs to be changed. There are far fewer limits. For example, we’ve made 12 different versions of a particular model within just this last year. From a manufacturing standpoint, that would have required each version to have its own tooling and would likely take years rather than months. From a development point of view, it is very quick,” said Andrew. w w w. f l y i n g m a c h i n e . c o m . a u


F LY I N G M A C H I N E The metal printing machine that CSIRO’s uses to produce the titanium parts is a much faster process than other metal 3D printing technology. A significant difference in their process is that it uses an electron beam rather than a laser. And the printing isn’t the only part that’s quick. The same day Andrew heard a particular account on the radio about CSIRO and their 3D printing and titanium, he sent an email to CSIRO, which led to a phone call the same day, within a week they were working together on starting the design for parts, and just six weeks later they had their first frame built using this process. Flying Machine also has a desktop model 3D printer, which allows them to print sample parts and test fittings, providing very handy, immediate technology for everything from testing and prototyping to production. Not only does this help save tooling costs, but it also prevents expensive mistakes through sample prints, as opposed to building with expensive titanium and then learning that it’s an improper fit, etc. From these test prints, the company can then 96

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move forward with full speed and confidence on the final build. New Projects In addition to the newer titanium projects in the last year or so, Flying Machine continues to stay busy with new projects. Once again, it is the Company’s dedication to providing their customers with comprehensive customisation that has been helping drive Flying Machine’s continuous innovation. “We’ve been working on new developments based on a request from a customer who wanted us to make him a ‘road bike’, a full derailleur geared bike, which is slightly different from what we usually do. Instead of titanium tubing, he wanted us to use carbon fibre because he wanted a very light bike,” said Andrew. “Since that order has come through, we’ve been able to significantly reduce the size of the titanium connection parts used, because we’re now reinforcing those parts with the carbon fibre,” said Andrew. This concept approach provides for a lighter bike, saving approximately 400 grams of titanium per bike, while


still providing exceptional strength and reliability. “We’re also working with delivering full carbon fibre frames, giving our customers multiple options. One very interesting thing we found through our research is that we’re able to use a non-petroleum based resin for the carbon fibre elements, so it’s essentially a biocarbon made from a byproduct of paper processing. This equates to no hydrocarbons and a significantly lower greenhouse footprint,” said Andrew. This is still a relatively young process for the company, but they are looking to continue developing it, possibly positioning it as ‘green’ carbon fibre which is quite unique within the industry. Furthermore, Flying Machine has engaged with a fundraising outfit, the Australian Small Scale Offerings Board (ASSOB) to do a capital raising with funds to be used for setting up a new facility and tale on additional staff. This investment would help create much needed work space and aid in helping the company keep up with their growing orders and customer base. As it is, there aren’t many other custom bike manufacturers in Australia. On top of this, Flying Machine continues to distinguish itself with its dedication to research and development, continuous innovation and impassioned spirit for providing the perfect riding experience for every lifestyle.

Company Information INDUSTRY

Manufacturing HEADQUARTERS

Burswood Perth, Western Australia FOUNDED



Undisclosed PRODUCTS/ SERVICES We live in a world that is congested, fast-paced and ruled by conformity. Flying Machine bicycles offer a freedom that is creative and of a superior quality. Flying Machine bicycles are built beyond the sphere of the traditional with the intention and vision of bringing Art and Science together to create something Brilliant and Beautiful.

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Iveco Trucks Austra a brand of CNH, Puts Clients on the Road Quicker

CNH has a long and proud history in this country start commercial vehicle brand—Iveco. Over the last 100 ye remarkable growth and development through its prima Written by: Andrew Rossillo Produced by: Nick Ledue


ting in the early 1900s, as does its ears, Australia has experienced ary and secondary industries.


The iconic ACCO—a derivative of the tough and versatile military specified AACO—rolls off the Dandenong production line.

IVECO manufactures and distributes light, medium and heavy commercial vehicles for the Australian road transport industry. With strong connections to International Harvester and International Trucks, it has been part of Australia’s way of life, in one way or another through its corporate parent, CNH, since 1902. Iveco Australia is part of the Iveco group headquartered in Turin, Italy and is wholly owned by CNH Industrial N.V. “Iveco Australia belongs to the IVECO brand, under CNH. In this 100

February 2015

context, our plant in Dandenog is part of a huge worldwide manufacturing network that comprises 62 industrial bases and 48 Research and Development centres,” explained CNH Industrial’s Head of Manufacturing Australia, Edoardo Bozzola. Iveco and its manufacturing base in Dandenong, Victoria, has a long and proud history in Australia starting in the mid-1950s. Over the last 60 years, Australia has experienced remarkable growth and development through its primary and secondary


The CNH Industrial plant builds Iveco trucks and buses – many of which are uniquely Australian and designed to meet the demands of local customers.

industries. Iveco’s DNA can be traced back to the early 1900s when International Harvester first entered the Australian market. In 1950 the company established the heritage listed Dandenong facility, producing trucks under the International Trucks brand until it was acquired by Iveco in 1992. Iveco and its predecessors helped build the road transport industry and have developed manufacturing processes and product development in line with the growing needs of Australia. When the Dandenong facility

opened in 1952 it represented significant investment into the Australian truck industry. It was a significant expansion of International Harvester’s Australian activities and was built in Australia’s post-war expansion phase (even before General Motors Holden’s began supplying cars to the market). The company’s strong tradition has been granted even greater capabilities and potential through internal synergies. “When Fiat Industrial S.p.A. merged with CNH Global N.V. in late 2013 to create w w w. i v e c o . c o m . a u




Employees: Xxxxx Businessfriend Established: Xxxxcreates a digital eco-system that drives individuals and organizations to personalxxxx and professional success. Industry: Xxxxxxxxxxxx xxxx xxx xxxxx xxxxx.Make connections, nurture relationships, and harness the strength of your social network with Services: Xxxxxxxxxxxx xxxx xxxx xxx xxxxx xxxxx. business utilities that take you beyond your connections. We operate under Ongoing xxxx xxxxIdentity, xxx xxxxx xxxxx our BUSI Projects: platform,Xxxxxxxxxxxx a Business Utility Social which gives you the opportunity to Xxxxxxxxxxxx meld the strength andxxxx familiarity of your online social identity Management: xxxx xxx xxxxx xxxxx with the software-like need toentry collaborate and conduct business. Website: address goestools hereyou as the last


CNH Industrial N.V. a new global industrial powerhouse was created, and we are already finding huge synergies across all facets of our business—both globally and locally. We’re sharing resources, know-how and networks,” said Bozzola. “CNH is essentially the bringing together of the group’s agriculture and construction arms, with the commercial vehicle and powertrain divisions, creating a global top tier capital and industrial goods company,” said the Australian and New Zealand Head of Corporate & External Affairs for CNH Industrial, Ron Grasso. “In addition to Iveco, within our suite of brands we have Case IH and New Holland Agriculture, Case Construction Equipment, New Holland Construction Equipment and Flexi-Coil, as well as various others, including an in-house

engine design and manufacturing arm; one of the largest in the world, which is FPT Industrial.” Dandenong Manufacturing Plant The Dandenong plant originally covered 34,000 m2 and produced 2,000 vehicles in its first year. Since then, more than 230,000 trucks have been manufactured-more than any other truck manufacturer in Australia. Today, Iveco manufactures ACCO, Powerstar, Stralis AS-L and AD/AT models and bus chassis at its plant in Dandenong, Victoria. It is also the home of a large product engineering department that has a facility for building and testing prototypes built to suit Australian conditions. Iveco Australia continues to invest into its Australian manufacturing capabilities with new product launches. “We’re a bit special in that we have a single assembly line that

“We have about 200 local vendors that we work with. A vast majority of them are manufacturing vendors here in Australia. We have up to 80 percent of local components in our models, which is remarkable.” – CNH’s Australian Head of Manufacturing Edoardo Bozzola w w w. i v e c o . c o m . a u


Founded in 1919, Norman G. Clark is an Australian owned & operated business. Norman G. Clark have been manufacturing Horton products in Australia since 1963.

Get in touch with us today. www.ngclark.com.au

44 Kylta Road Heidelberg West, VIC 3081

ph: 03 9450 8200


currently produces five models of trucks, all quite different from each other. We go from the wellknown ACCO, a market leader in the waste disposal business, to the Stralis, a very popular model in Europe which we assemble in our factory,” said Bozzola. “We also have two bonneted trucks which are designed locally, including the Powerstar which has been around for a couple of decades. We also now have the brand-new Powerstar Roadtrain that we launched this year, which has helped us to enter into a new segment that we weren’t


previously competing in. The second is a major change to the current ACCO model, which is also the market leader in the compactor market. In terms of the ACCO, what will be apparent to our customers is an external face lift, creating a more modern and aggressive look which delivers improvements in functionality. In addition to that, we’ve added significant new elements, such as new suspension, new electronic capability control, as well as other additions and improvements that make it the first choice in its various segments. The new,


Established around 1919 in Melbourne, Norman G Clark is an Australian owned family business, with a long and remarkable history. Still owned and operated by the founder’s grandson, it continues to manufacture, import & distribute an extensive range of diesel engine accessories, industrial equipment & components. Today our main products include: • Horton® fan drives for heavy duty diesel vehicles • Nexen® equipment for a broad range of motion control applications • Deublin® rotary unions for general and specialist industrial processing applications • Nett Technologies® exhaust purifiers for all types of internal combustion engines Many items in the Horton & Nexen ranges are manufactured locally, by us, under license agreements dating back to 1962. The goal of every member of our team is to give value to our customers each and every time they deal with us. This value is embodied in the products, services and advice we provide. Website: www.ngclark.com.au

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IVECO TRUCKS AUSTRALIA & CNH upgraded ACCO that we are just introducing into the market is the culmination of the continuous evolution of this range over the years, its development driven by the specific requirements of customers in the Australian market with a continuous focus on quality. On top of that, we also produce a bus chassis specifically for Australian markets.” All of Iveco’s manufacturing is done in the Dandenong South, Victoria facility, allowing them to

produce everything under the same roof. The company also relies on a local supply chain that is very strong. There is a manufacturing hub in the Dandenong region and closely surrounding areas that supports the Company’s production. “This very effectively allows us to be highly flexible in what we do, reinforcing our customisation capabilities and short lead time to clients. Having a local supply chain ensures that we can sustain these capabilities at all times,” said Bozzola. “We have about 200 local vendors that we work with. A vast majority of them are manufacturing vendors here in Australia. We have up to 80 percent of local components in our models, which is remarkable.” “The Australian market is quite special about its requirements, and our main challenge is to make the most of local design and R&D paired with our broad supplier and manufacturing base back in Europe. We try to merge these components to offer the best truck at the best price; based on Australian specifications,” said Bozzola.


Precision fitment of the latest technology on an Australian designed and manufactured heavy vehicle.

On-Road Vehicles Iveco has one of the broadest ranges of on-road commercial vehicles, offering versatility and flexibility, from the smallest van up to the heaviest duty roadtrain. Their on-road models include the Daily, Eurocargo, ACCO, Stralis and Powerstar. “ACCO has been around Australian roads for over 40 years now, having gone through several improvements by now,” explained Grasso. “It was originally designed for defence roles as a military

vehicle. It has strong origins in military use,” said Grasso. “The plant and ACCO model were born together during the 60s, and continue to grow and develop.” Off-Road Vehicles Iveco has developed a range of light-, medium-and heavy-duty trucks for-off road jobs. From mining, forestry and off road support, these vehicles are built to stand up to the toughest jobs. These off road vehicles include the Daily 4x4, Eurocargo 4x4 and Trakker. w w w. i v e c o . c o m . a u



Local engineering staff inspect Iveco vehicles on-line at CNH Industrial’s Dandenong facility.

Bus & Coach Vehicles Iveco manufacturers a range of bus chassis, from low floor city, to school bus, luxury coach and mining, and has a range of chassis built to suit a variety of client needs. These models include City, School/ Charter, Mining and Coach. “The complexity that runs through the Dandenong plant is quite high with so many different models going through the same assembly line. This pushes us toward continuous improvement in order to be able to manage this level of complexity. Low volume, high


February 2015

variety production is a big challenge and we need to stay on top of that,” said Bozzola. Product Time to Client and Customisation With the level of customization and quality that the company is capable of and delivers, one might think that there might be long wait times for product delivery. However, one of Iveco’s competitive advantages is their superior product time to client. “There are two critical advantages that we can offer to our clients through local manufacturing. The


first is shorter lead time to our clients. Having the factory here with readily available components, mostly sourced locally, we are able to deliver a truck to a client in two to three months, compared to an imported truck, where the time to client could be six to nine months. Our second major advantage that we have is the customisation of our products,” explained Bozzola. Bozzola also went on to explain that the larger size of the Company’s products actually help protect their competitiveness: “The truck industry is actually quite different from the car industry in this regard. For one thing, the size of our products definitely differentiate us. This gives us a degree of protection from imported products because of the high import costs for similar products.” “Basically, for every truck we make, we build to order. We rarely see the same truck go through our line twice in one year. Every single truck is something different, something special. This is only possible because we customise all the orders we receive locally. If you were to import trucks at this level of complexity and personalisation, it wouldn’t be sustainable because of lead-time to client and increased costs. Having the plant here allows us to do anything our clients ask, and do it quickly. We can deliver a customized truck in half the time it would take the client to import a standard one,” said Bozzola.

Company Information INDUSTRY

Manufacturing HEADQUARTERS

Dandenong South Victoria, Australia FOUNDED

Iveco: 2013; CNH: 1992 EMPLOYEES

Iveco: approximately 300; CNH: approximately 950 REVENUE

Approximately $1 billion PRODUCTS/ SERVICES IVECO Trucks Australia manufactures and distributes light, medium and heavy commercial vehicles for the Australian road transport industry. Formerly International Harvester and International Trucks, the company has been part of Australia’s way of life since 1902.Iveco Trucks Australia is wholly owned by CNH Industrial N.V. based in Basildon, UK. Iveco, a brand of CNH Industrial, is headquartered out of Turn, Italy.

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he New Zealand Manufacturers and Exporters Association (NZMEA) is a membership organisation which aims to support that part of the economy made up of producers of products and services that are exposed to global competition; often referred to as the real or the traded economy. 114

February 2015

The Association was formed through the merger of the Canterbury Manufacturers’ Association (CMA) and the New Zealand Engineers Federation (NZEF) in 2007. The CMA was founded in 1879 as a membership support organisation and a dedicated advocate for industrial development in Canterbury. The


NZEF was formed in 1962 to promote and support the interests of engineering in New Zealand. The merger came about as a means to provide national representation focused on the needs of the real economy. There was, and is, significant discontent from the traded economy about the impacts of Government policy, and in

particular policies which cause a high exchange rate and other competitive disadvantages in comparison to polices in other countries. The merger allowed the Association to be generally more active on these issues, and to provide nationwide support to members. Largely the Association’s efforts have two elements: we advocate w w w. n z m e a . o r g . n z


Windflow Rotor

NZMEA through media and lobbying efforts on regulation and government policies that generally encourage the growth of the traded economy, and we directly support the development of our member companies through networking, peer support and learning. The Association provides support for members’ staff via training programmes and events relevant to the needs of manufacturers and exporters. Training programmes cover areas such as production line management, opening new export markets, health and safety and human resource issues. Other events allow members to network and to discuss issues with each other, politicians and economic leaders. A peer support mechanism, via regular newsletters and electronic communication allow businesses to share knowledge and remain informed. Association membership is strictly limited to manufacturers and exporters; as a result the NZMEA can advocate a policy framework that supports the traded sector without the risk of having to compromise the


standpoints of the non-traded sector members. The Association advocates policies that aim to stabilise the New Zealand dollar around fair value, balance taxes across all forms of income including capital gains, and incentivise investment in research and development, plant and equipment, patents, early stage real economy investment, and up skilling staff. A number of these policies are justified in terms of spillover benefits, as well as levelling the playing field with regard to policies other countries have in place. Due to the small size of New Zealand’s domestic market, manufacturers focus on niche markets, exporting early in the businesses life to access market scale. But this also means they are exposed to external pressures such as the exchange rate and international conditions early in their life. Manufacturers and exporters will continue to focus on innovation and adding value, however to be most effective our policy settings must also create an environment that encourages more w w w. n z m e a . o r g . n z




February 2015


complex activity, and this is an area where policy changes can have a major impact on investment. The past year has generally been more positive for manufacturers and exporters in New Zealand. A significantly overvalued currency continues to be an issue for margins and competitive pressure, but a bit of a recovery in export markets and improving domestic conditions, for some, have provided a lift in activity. The NZMEA survey has shown a trend of improving year on year export sales, with falling domestic sales throughout 2014, coupled with consistent expectations of improving future conditions. New Zealand has had some success in achieving a range of Free Trade Agreements (FTA) which has helped the tradable sector, the FTA with China being the most significant in boosting growth recently, but largely in commodities not complex products. Any future FTA’s need to be negotiated with the aim of improving conditions for complex manufacturers and high

tech goods, as well as simple primary and processed primary production, to ensure complex activity can grow and fuel future innovation and capability development in New Zealand. Trade between New Zealand and China continues to grow. However, we have seen the start of a potential slow down in China’s growth – a risk going forward as we become more reliant on trade with China. The manufacturing and exporting sectors are vital for the success of any economy, and even more so for small open economies like New Zealand. The NZMEA believe a continued focus on creating a level playing field will promote vital investment in the tradable sector, that investment will promote growth, innovation and complexity. As a result we will see stronger growth across the economy, a more balanced and diverse economy and more highly skilled jobs – helping improve material living standards for all.

w w w. n z m e a . o r g . n z



Creativity, quality, new techno innovation are the pillars of th

Considered one of the world leaders in the development of industry, Sabó Group operates in more than 40 countries. Written by: Flávia Brancato Produced by: Nayara Ferreira

ologies and he Sab贸 Group.

f seal solutions for the automotive




lobally recognized as one of the largest Brazilian companies that export auto parts, Sabó has strategically distributed plants and offices together with its main technology development centers. The company is one of the largest suppliers of seals for the most important vehicle manufacturers in the world and exports its products to more than 40 countries. As a global leader in the development of seal solutions for the worldwide automotive industry, the group has offices in Brazil, Argentina, the United States, Germany, Austria, China, and Hungary, in addition to technicalcommercial offices in France, England and Japan. Within its scope of operation, which includes seals for engines, transmissions, differentials, washing machines and industrial equipment, Sabó ranks number one in the OEM market and aftermarket in Brazil and stands out as a result of solid monitoring of technological developments in the market.

Operations and machinery


February 2015


MM Plant

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Votorantim Metais CBA is one of the largest aluminum producers in Latin America, with broad participation in several segments, being a great partner in supplying the automotive market: from trucks and bus structures, to wheels, heat exchangers and gaskets. The quality, lightness and durability of our aluminum assure greater economy, performance and efficiency to vehicles of all sizes, across the American continent.

Know more at www.vmetais.com.br


TRADITION OF INNOVATION Through advanced production processes and technological research centers, the group ensures perfect performance to meet the specific needs of each customer. Found in vehicles of major automakers in Brazil and around the world, Sabó products are used in the manufacturing of cars, trucks, buses, motorcycles, agricultural machines and airplanes. The company uses a workflow tool integrated into the development and manufacture of its products, and the results show the reason for such success. “As a result (of the use of technology), we have robust progress at all stages of the development process, in addition to the important factor of waste disposal, both for us and for the end client,” explains the General Manager of Sabó Americas, Lawrence Agnello Oricchio Jr. Responsible for developing the F-RED seal solution, which has a 30 percent reduction of friction in relation to conventional seals, Sabó was newly elected as the solution of highest technology in Seals by Cummins United States and Cummins England—considered the largest manufacturers and developers of diesel engines in the world. “This solution

SUPPLIER PROFILE VOTORANTIM METAIS CBA Founded in 1955, Votorantim Metais CBA is one of the largest aluminum integrated plant in the world. With a solid presence in the market of consumer goods, civil construction, packaging, energy, recycling and transportation, is notable for pioneering, technological innovation and environmental responsibility. Website: www.vmetais.com.br

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Development F-RED Bi-Directional

was developed with the assistance of Six Sigma technology in a project that was developed in three years and is now beginning production robustly,� says Oricchio. Another point to be considered is the performance simulation tests, used at all stages of production, which reduce the product defects to zero. Simulations by means of tools, analysis by finite element simulation (FEA), a series of tests for durability, corrosion, mud, dust, dynamometers, physical and chemical analysis, practical tests and visual inspection tomography are other procedures that guarantee excellence in advanced technology. Doing justice to these


merits, it is not by chance that the SABÓ Group has already received more than 200 awards for quality and certifications issued by the largest global manufacturers. RECOGNITION AND QUALITY Providing state-of-the-art and self-certified products requires that all members of the productive process of the SABÓ Group, in any part of the world, share the same philosophy: the search for perfect technology. For this reason, consistent investments are needed. Oricchio confirms that “the annual investments in technology and in the developments and

MIA Automatic inspection System

Sabó being recognized by Honda Motorcycles of Brazil w w w. s a b o g r o u o p . c o m . b r



11º award TOPRUBBER 2014

Project Engine EA-211, Volkswagen of Brazil

Dimensional laboratory


February 2015

productive sectors are in the order of 8 percent to 9 percent of our annual revenues.” The quality certifications conferred by more stringent existing standards, such as ISO/TS, VDA, IQA, and ISO 14000, are linked to continued investments in equipment for projects and tests, the latest software, professional qualification, research on materials and advanced engineering. Among the hundreds of awards won by the group in its 75 years of operation, highlights include the GM Europe QSP, GM Certificate of Merit (received 26 times), Supplier of the Year Mercosur GM, GM Worldwide QSP, Premium Quality VW Mercosur and Value to the Customer VW. However, the sector constantly faces


Supplier of the year GM Award

challenges. Concern for the environment is part of the action at all stages of production of the Sabó Group, which has environmental control equipment to treat the liquid effluents and emissions, in addition to improvement actions listed in the product design process and in the production line, with the aim of preventing or reducing the production of industrial waste. According to the General Manager, “the main challenge is to continue developing technologies that increase environmentally friendly actions.” MANAGEMENT AND SAFETY Keeping all equipment automated and with safety devices that interrupt the operation in the event of

“The main challenge is to continue developing technologies that increase environmentally friendly actions” – General Director of Sabó Américas, Lourenço Agnello Oricchio Jr.

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SAE 2014

“The annual investments in technology and in the developments and productive sectors are in the order of 8 percent to 9 percent of our annual revenues” – General Director of Sabó Américas, Lourenço Agnello Oricchio Jr. 130

February 2015

any improper handling is also part of the quality and safety procedures of Sabó. With respect to production strategies, in addition to the process of lean manufacturing implemented for more than a decade in its factories, the Overall Equipment Efficiency (OEE) method has also been used in the past five years in Sabó Brazil. In addition, the total optimization of productive resources ensures a complete analysis of installed capacity versus used capacity, as well as the level of quality and efficiency of each production line. Lawrence Oricchio highlights the importance


Company Information INDUSTRY Auto parts HEADQUARTERS São Paulo, SP - Brazil E S TA B L I S H E D 1942 EMPLOYEES 1600 (Brazil) PRODUCTS / SERVICES Seals supplier; Gaskets System & Seals for motors; transmissions; Suspension for

of professional qualification: “In addition to the comprehensive training programs in most diverse technologies, we have a process of presentations in major Brazilian universities aiming to bring the fresh and bright talent to our team even as trainees.” In addition, technical infrastructure improvements in order to keep pace with the evolution of the company are constantly in the plans of the Sabó Group.

major automakers and auto parts worldwide MANAGEMENT President: Jose Eduardo Sabo General Director: Lourenco Agnello Oricchio Junior Industrial Director : Ricardo Teixeira Avila Administrative & Financial Director: Braulio de Carvalho

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More power to farmer preparation and harve

Contributing to the development of Brazilian agriculture for company constantly invests in new production methods an Written by: Flรกvia Brancato | Produced by: Nayara Ferreira

rs in soil esting

r decades, the nd techniques



Baldan - Matão - SP - is installed in a modern industrial park of 256 mil m² of w

T Superintendent Director of Baldan, Celso Antonio Ruiz


February 2015

he company’s pioneering has even broken the Brazilian dependence on imported products when, in the 1950s, the Baldan family created the first disc harrow and plows in Brazil. Once Baldan discs began to be included among the best products available on the market, this innovation encouraged the practice of new production methods and techniques. Today, the company has 120 products in its portfolio--in 2500 different versions--and is headquartered in a modern industrial park of 256,000 m²--65,000 m² of built area--in Matão, São Paulo. Baldan sells throughout the national territory and in a specific area of the external market.


which 60 mil m² are built area

COMMERCIAL AREA AND INVESTMENT To serve both the national and overseas markets, the company has two customer service divisions. The internal market customer service agency is comprised of a team of trained salespeople who provide technical and commercial support to customers throughout Brazil. It also has the support of a telemarketing structure that operates within the company. Baldan’s main consumer markets abroad are South America and Africa, which are responsible for 20% of the company’s export revenues. The rapidly growing company has demonstrated strength in its structure. “In 2006, at the peak of the agribusiness crisis, which had started in

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

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2005, our company annual revenue was R$ 50 million. This year our annual gross revenue will be R$ 470 million and our EBITDA will be 25%,� the Superintendent Director of Baldan, Celso Antonio Ruiz, says proudly. However, current market trends include increased foreign competition, acquisitions, mergers and increased product technology. The company’s focus is on the modernization of its industrial park in order to increase its productivity, satisfy its customers, and lower production costs. PRODUCTS AND MANAGEMENT DEVELOPMENT Combining experience and cutting edge technology, Baldan has been developing products with advanced engineering concepts for soil preparation and different types of crop planting. A market leader in the production of implements for soil preparation and responsible for about


Technology with welding robot

35% of the market, Baldan also has a line of products aimed at the cultivation of sugarcane and an agricultural platform for corn harvesting. Supported by professional management, in 2010 Baldan implemented its own manufacturing and production system, called SBM. SBM focuses on meeting customer expectations through the use of the best and most successful methodologies and manufacturing technologies that have been created over the history of world industry. “We are always investing heavily in new

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

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CRI - Heavy duty offset disc harrow, remote control

Seeder planting

“The greatest challenge is to increase food production to feed the world. In order to do this, we have been developing products with the latest technology and partnering with research institutions” – Superintendent Director of Baldan, Celso Antonio Ruiz

Distributor with Precision Agriculture 138

February 2015


production processes, technologically advanced machines, human resources and relationships with our customers,” explains Ruiz. The company’s mission is to conquer both the national and international markets with agricultural machinery that offers high standards of performance, contributes to the increase of food production, and ends hunger in both Brazil and worldwide. “The greatest challenge is to increase food production to feed the world. In order to do this, we have been developing products with the latest technology and partnering with research institutions, such as Embrapa, for example,” Ruiz admits. To maintain a human resources policy in accordance with the best practices on the market, Baldan is always intensifying its employee training and offering undergraduate scholarships programs; in addition to including its employees in a profit sharing plan since 2008. “Our professionals have been constantly participating in technology fairs in Brazil and abroad. We have an internal team in accordance with the SESMT and the support of external consultants working to improve the work environment and to reduce or eliminate accident risk and occupational diseases,” concludes Ruiz.

Company Information INDUSTRY

Metallurgy / Agribusiness HEADQUARTERS

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



Agricultural machinery and implements MANAGEMENT

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

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ABIMAQ: The Brazilian Machin Equipment Associat

Written by: Vervi Assessoria e Comunicações | Produced by: Nayara Fer

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he Brazilian Machinery and Equipment Association (ABIMAQ) was founded in 1975 with the goal of acting in for the strengthening of the domestic industry by mobilizing the sector, performing actions with the political and economic spheres, stimulating trade and international cooperation and contributing to enhance their performance in terms of technology, human resources training and management modernization. Structured nationwide with a regional office in Brasilia and nine regional offices in the following cities: Belo Horizonte (MG), Curitiba (PR), Joinville (SC), Piracicaba (SP), Porto Alegre (RS), Ribeirão Preto (SP), Rio de Janeiro (RJ), São José dos Campos (SP) and Recife (PE), ABIMAQ has 1,600 member companies and currently represents about 7,500 companies from different segments of manufacturers of mechanical capital goods, whose performance has a direct impact on other domestic productive sectors. Internally ABIMAQ is divided by sectors. In total there are 30 Sectoral Chambers. These cameras are formed by groups of domestic manufacturers associated with ABIMAQ, according to the nature, type and application of the products manufactured by them. Companies can

Agrishow 2013


February 2015


JosĂŠ Velloso, Executive President of ABIMAQ

Carlos Pastoriza, President of ABIMAQ

Lourival Junior Franklin, Head of Office of the President

integrate one or more Sectoral Chambers. The role of the Sectoral Chambers is to aggregate its members, either by affinity or by its purposes and objectives, offering its members not only the discussion and the search for solutions to common problems, but mainly the pursuit of opportunities, whether in new businesses, in the market or in the development of technology. This role is critical to the strengthening of the sector and the growth of associated companies within the Abimaq policy. Over and above the institutional representation of industry, ABIMAQ has professional management and its activities aimed at generating business opportunities for its members, acting as a development agency in the domestic machinery and equipment industry. w w w. a b i m a q . o r g . b r



Vice-presidente of Brazil, Michel Temer

Machinery Trade Fair 2014


February 2015


ABIMAQ is a representative entity of the strategic Brazilian machinery and equipment Industry, prioritizing the national interests against those pertaining to sectors and the collectives against the individual ones. Our mission is, while acting in an independent way, to promote the sustainable development in the sector, through political-institutional products, services and acts that contribute to:

Association Information NAME

Associação Brasileira da Indústria de Máquinas e Equipamentos (ABIMAQ) HEADQUARTERS

• Systemic and enterprise competitiveness; • Finance production and trade; and • Promote the growth of business in the national and international markets To fulfill its purpose with ethics and credibility, Abimaq´s Quality Policy is:

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• To act promptly and with competence in addressing the structural and cyclical needs of the Brazilian machinery and equipment industry; • Provide differentiated products and services, which, to members will be provided with special conditions and, where appropriate, exclusively; • Adopt reliable and agile work processes, focused on results and consistent with best practices.


President: Carlos Pastoriza Executive President: José Velloso Head of Office of the President: Lourival Junior Franklin

Through a Quality Management System that compromises its management and professional body and promotes efficiency and continuous improvement. w w w. a b i m a q . o r g . b r


Profile for Manufacturing Global

Manufacturing Global - February 2015  

Manufacturing Global - February 2015