Growing in world markets Gruppo Plocco Steel

GROWING IN

WORLD MARKETS

Gruppo Plocco Steel has historically been based in the Frosinone area of central Italy, where it has been expanding since the early 1960s. Today, while keeping its activity in this area unaltered, the group has crossed national boundaries, thanks to foreign subsidiaries set up to increase – not delocalise – its production. Barbara Rossi interviews Mr D’Addazio, the sales manager of the company.

Gruppo Plocco Steel is composed of five Italian companies: Osim Plocco Srl, Enertronica, Orion, Flexbed and Euronefro. Osim Plocco is the oldest company of the group, founded by the Plocco brothers – Angelo and Giovanni – in 1961. The brothers were respectively experts in carpentry and mechanics and so focused the company’s activity in these two areas, a specialism which remains to this day. Initially the company was serving the rail and public body sectors, and with regard to the latter the activity mainly consisted of providing equipment to the Ministry of Defence. Over the years, with the arrival of the automotive industry in the Frosinone area, the company expanded its activity to supplying components for this sector, as well as to growing into a group, although it maintained its company status.

Operating in metalwork, Osim Plocco Srl has a current turnover of €15 million and, as well as supplying components to the other companies of the group, has a wide range of clients, serving the automotive, railway, aeronautical, moulding, electromechanics and electronics sectors, supplying multinationals, as well as public bodies – for instance logistical support products to the Ministry of Defence. Its activity is approximately equally sub-divided in machining, carpentry and mechanical processing – including assembling and surface treatment. Clients of the former products include the ABB group, Schneider Electric and Key Safety Systems, while through the latter range it serves customers such as AgustaWestland.

Currently, the group, led by the third generation of the founding family, generates a turnover of about €35–40 million and employs 100 people. It operates from a 36,000m2 site in Frosinone, which as well as housing the group’s headquarters and

Osim Plocco Srl, is also home to Flexbed, the group company which, having started its activity in the 1980s as a producer of bed bases for the Ministry of Defence, has now evolved to manufacturing bed bases and shutters for a wider range of clients.

Another company of the group operating from the same premises is Enertronica, which was established six years ago, as a spin-off of a project with the University of Cassino. With its 25 employees, this EPC (Engineering, Procurement, Construction) company designs, supplies and installs large-scale photovoltaic systems to industrial clients.

Orion, on the other hand, originally based in Turin and acquired by the group in 2001, operates from a separate site, in Ferentino – still in the Frosinone area – where it produces high-quality accessories for motorbikes and mopeds, such as top boxes and mirrors. Mr D’Addazio explains, “As well as supplying manufacturers of motorcycles, including Piaggio, Aprilia and Malaguti, we also supply products to the after-market sector and carry out plastic moulding for third parties.”

Euronefro, based in the centre of Frosinone, is a distinct entity from the rest of the group,

as it is a private dialysis facility, which was set up by the group about ten years ago and works in partnership with the Italian National Health Service.

Crossing borders

Foreign expansion has materialised through Orion, Enertronica and Osim Plocco Srl. Orion has, in fact, a site in Pune – near Mumbai, India – thanks to a joint venture with Ronch Polymers, part of the Borana Group. This joint venture was created to supply products to the Indian motorcycle accessories market about 18 months ago and is currently transforming into an Indian company, in which the Italian group has a share. Currently production is customised, following the client’s design and specifications, but future plans are geared towards complementing this activity with the introduction of the manufacturing of a range of products replicating those offered in Italy, but still targeted to serve the local market, the biggest in the world in this sector.

Enertronica, on the other hand, has just opened a site in Cape Town, in partnership with Gefran, so as to be part of the important solar energy development taking part in the

country. In addition to this the company, which since the beginning of February 2013 is listed on the Milan Stock Exchange, is also active in the photovoltaic sector in Bucharest, Romania.

Osim Plocco Srl is also present in Romania, but in the Timisoara area, where it has opened a warehouse in partnership with a local company for stocking metallic components for automotive clients based in the region – where it also carries out galvanic treatments. This facility has been set up so as to be able to follow existing automotive clients which had moved their production to the country. However, Mr D’Addazio insists, “This has not resulted in a delocalisation of the production that we have in Italy, but it has rather allowed us to increase our overall volumes by acquiring new geographical markets, while keeping an unaltered presence in our country.”

In terms of new products Enertronica has recently developed a new LED industrial line, offering important advantages in terms of energy efficiency. In addition to this, the group has also invested in developing a new production facility, still situated at its main Frosinone complex, for the production of machined parts.

Mr D’Addazio concludes the interview by saying, “As a group, our main geographical markets are centred round Europe, Asia – with a special focus on India – and South Africa. Our plans for the future, specifically for the next year or 18 months, are of a consolidation of what we have started in the last year. Growth will take place in an organic fashion and expanding in a new geographical area could be a good idea, specifically in South America.” n