Streamlining international expansion ALT Technologies

STREAMLINING INTERNATIONAL EXPANSION

Integration with its worldwide customer base is of utmost importance for ALT Technologies, a leading manufacturer of labelling, self-adhesive and die-cut products for the automotive industry, electronics, durable goods and security sectors. Mr Verstraeten, the company’s managing director, talks to Vanja Švačko about the impact that the overseas expansion has had on the growth of ALT.

The Netherlands-based company ALT Technologies was initially started as a label manufacturer. Today it boasts high proficiency in automotive safety solutions and delivers in-car safety products that can be found in all leading brands such as Audi, Ford, Opel, Volvo, Porsche, Renault, Jaguar, Toyota and Nissan.

Apart from airbag covers, inflatable curtain wraps for side airbags and high quality value-added labels mainly for the automotive and durable goods industries, the company develops tailor-made solutions in partnership with its customers in order to respond to their specific needs. Its ambition is to continue supplying those who in turn supply the best car manufacturers in the world.

For meeting the international standards required by the industry ALT Technologies has been accredited by ISOTS 16949: 2009 and ISO 14001:2004.

Change of focus

In 2002 ALT’s management decided to change its focus from the safety labels market to the automotive and home appliances sectors and to invest €1.5 million in automotive safety production capacity.

“Changing our focus to the automotive industry proved to be the right decision,” said Mr Verstraeten. “If you look at the part of our turnover coming from the automotive industry, it is steadily increasing. A few years ago we had 70 per cent turnover from that sector, and now it has grown to 80 per cent. The rest comes from home appliances.”

Focusing on new sectors demanded fresh investment policies. In the course of ten years ALT has opened production facilities in Romania (Lupeni), Belgium (Diegem), a sales office in China (Shanghai) and last year a plant in China (Jiading). The company also has a distribution centre in the USA, near the Mexican border.

Mr Verstraeten explained, “The main reason for switching to this large-scale approach was that, at the end of the day, we are all moving to global platforms. Our suppliers not only have a global presence, but global standards as well. That enables us to deliver products with the same specifications in all regions of the world. In our new plant in China we can make the same types of products for our Asian customers as we do here in Europe for European ones.”

Gainful investments

Apart from attracting capital for global expansion and investing in production facilities, the past few years at ALT Technologies have been marked by a number of investments in lucrative projects and new products. The company has launched new market-leading automotive safety applications, invested in its flexible circuits R&D project and increased sales abroad.

There have also been some significant investments in new digital equipment and an Enterprise Resource Planning system (ERP) for production facilities located in Europe.

ALT Technologies is currently developing new products aimed at helping the world’s leading automotive manufacturers to reduce the weight and cost competitiveness of their cars. Thanks to an advanced copper printing technology, electrical functions can be integrated into products made of plastic film, as well as on textiles or leather by stitching and adhesion.

Mr Verstraeten explained, “Our new product – flexible electronic circuits – is basically an electrical circuit printed on to flexible material which can be used on all kinds of applications in the car, from seats, armrests, floor matt

heating and steering systems to car pedals, fuel tank connections and LED lighting. Apart from reducing costs and weight (for example flexible circuits can replace numerous wires), it significantly lowers energy consumption and is environmentally friendly.”

Partner in development

According to Mr Verstraeten, “ALT Technologies is also trying to keep pace with future demands by working on some other revolutionary products such as an air bag located outside the vehicle for pedestrian protection. Markets for those products are in a very early stage so it is a long-term project.”

Through its team of specialists in different areas of production and marketing, the company works in close partnership with its customers, offering them appropriate and tailor-made solutions that can reduce the costs of their own products. All airbagrelated products are of the highest quality and it is no surprise that ALT Technologies occupies the leading position in Europe when it comes to supplying manufacturers of automotive safety systems.

The company’s parallel investments in overseas expansion in China, new projects and innovative products, the latest quality accreditations and in novel materials represent a strong foundation for organic growth. At the same time it does not exclude the future possibility of starting up new facilities in emerging and fast developing markets. n Visit: www.alttechnologies.com