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Casting the future Ormis
CASTING THE FUTURE
Ormis SpA leads the Ormis group, which is renowned in the field of mechanics and metallurgy, and is now also active in other sectors, as its chairman and CEO, Mr Penocchio, tells Industry Europe. Barbara Rossi reports.
Ormis was set up in 1975 by Luigi Penocchio, father of the current chairman and CEO, in the Brescia area of northern Italy (Lombardy region). The steel and iron sector was very strong at that time and the company started operating as a service and maintenance workshop in this industry. The company still maintains its family dimension, but due to the changes which have taken place in the steel industry, has expanded and diversified its activity, creating a group. In the course of this expansion Nova Sigma, a manufacturer of boilers for industrial use was acquired, as well as Copress, which produces sheet metal cold forming presses, and Iceb Tecnacciaio, a leader in the oil and gas and hydropower sectors.
Mr Penocchio explains: “Our group, operating in the mechanical sector, is homogeneous, but each of its companies has its own field of specialism. Ormis’ specialism is the steel sector, which is also the core business of the group, generating at least 50 per cent of turnover. In particular we carry out design, construction and ‘turn key’ installation of plants for the iron and steel production sector, with particular reference to rolling mill machines, continuous casting and furnaces, among others. Nova Sigma specialises in the production of steam boilers, steam and hot-water boilers and thermal oil heaters as well as biomass and heat recovery boilers, serving various industrial sectors, as well as the food and agricultural industries. Copress makes sheet metal cold forming presses for the automotive and white goods industries, while Iceb Tecnacciaio specialises in heavy steel structures for the oil and gas and hydroelectric sectors (for instance reactors,
vessels, drums, gates and large spherical and butterfly valves). Diversification has helped us in difficult times, and that is why this is part of our group’s philosophy.”
Ormis offers new customised systems, as well as tailor-made revamping . The other companies of the group have products in their catalogue, which are then customised according to clients’ needs. In terms of new products Ormis has recently developed a new laser tube cutting system, called `Next 3D’, and one of these systems is currently on display at its premises. This system is able to cut the tube on six CAD/CAM controlled axes using a fibre optic laser.
Optimising group structure
Mr Penocchio adds: “We have optimised our organisation, grouping most of the services in the holding company, but each one of the member companies has its own commercial department. We have two sites, one in Brescia, where both offices and production facilities are located, and another one still in the Brescia area, 10 kilometres away, solely dedicated to production. Overall the two sites occupy a 100,000m2 area, 40,000m2 of which are covered. Both production sites are ISO9001, ASME `S’, ASME `U’ and ASME `U-2’ certified, therefore covering the production of all four of the group’s companies. Our facilities allow the manufacturing and handling of products that require a lifting capacity of up to 200 tonnes and a mechanical processing capacity of up to 10 metres in diameter for turning, as well as of up to 15 metres in diameter in terms of milling. The group offers an integrated production cycle, starting with engineering and the purchasing of raw materials, and including heat treatment, annealing furnaces, sand-blasting and painting, therefore being autonomous in terms of the whole process.”
Fifty per cent of production is sold in Europe (30 per cent in Italy), including eastern European countries as far as Russia and other former Soviet states, 25–30 per cent in North Africa, 20–25 per cent in Emirates and India. Mr Penocchio further adds: “ In India we have signed a contract for ‘Technical assistance for installation and managing workshop’ with JSW, one of the largest Indian groups, whose core business is the steel sector, but which also operates in a range of industries from energy to logistics, and which has a turnover of 15 billion dollars. Together we are in the process of building a production site for the manufacture of equipment and maintenance services for the JSW group and for markets in general. This partenership is an important step
for the internationalisation of our group. I am honoured to be a partner of this leading group. We will contribute to this project by transferring our know-how and by actually totally managing the production site. We signed the contract in June and start-up is planned for July 2013. This 30,000m2 site, which has the potential of doubling to 60,000m2, based 250 km from Bangalore (Vijayanagar), will be a production site of excellence, at the cutting-edge at all different levels and will give work to 500 people.”
Continuing expansion
In terms of future development India will be of crucial importance, thanks to the previously mentioned partnership. However, Ormis is also expanding its South American markets, in particular in Argentina, where they directly supply the Tenaris group. Another market in which Ormis is very interested is Turkey, where although it is already exporting, it is evaluating possible joint ventures to further its presence and create synergies. In fact, Mr Penocchio adds: “The logical thing with competitive markets is to actually manufacture there.” Other developments are also expected in current markets such as North Africa and the former Soviet states.
Future growth could come through both organic expansion and acquisitions. Mr Penocchio tells Industry Europe: “It is hard to predict where future growth will be coming from, as the situation is very fluid, and we will have to see what happens with the euro, as this will have an impact on the relationship between the different markets. If, as I hope, the United States of Europe will become a reality, we will be able to face different markets. Steel will always be used, as everything is made of steel. The oil and gas sector will carry on being important and boilers for energy production also have a significant future, especially those which use biomass as fuel. We intend to carry on serving the best Italian and foreign clientele in the markets segments in which each company of the group specialises, as we are doing now. Currently we have a range of clients from small companies to multinationals.” n
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