Growing in size Komatsu Italia Manufacturing

GROWING IN SIZE

Komatsu Italia Manufacturing SpA took on a new name in January 2014 to reflect the wider range of products the company had started producing. Managing director Enrico Prandini spoke to Industry Europe. Barbara Rossi reports.

Komatsu Italia Manufacturing (formerly Komatsu Utility Europe) is part of the Komatsu group, which ranks in second place globally in the earth moving machinery sector. A 100 per cent Japanese group, the global organisation present in all continents is Komatsu Global, which is then subdivided into divisions focused on the world regions. The European organisation is Komatsu Europe, which has five production plants, one of which is Komatsu Italia Manufacturing.

“For us Europe is our domestic market, but we also export our products to often many countries worldwide,” Mr Prandini explained. “Generally, our specialism is manufacturing machines with weights up to 19 tonnes. We make mini excavators, midi excavators, traditional excavators ranging from 13 to 17 tonnes, backhoe loaders, skid steer loaders and two models of wheeled excavators. Each of the European plants specialises in one type of production and traditionally we have produced lighter

machinery, hence the word ‘Utility’ in our former name. However, our portfolio has been widening in recent years and we have been asked to produce some larger models.”

Decades of expertise

The Italian factory started its activity in 1963 as FAI, when it was set up in the Vicenza area by G. Bettanin, a local entrepreneur. The company carried on growing until the end of the 1980s, when there was the first contact with Japanese giant Komatsu, which was very interested in acquiring a factory for production of utility excavators in Europe. The collaboration between the two companies became increasingly close until there was an outright acquisition in 1996 and Komatsu Utility Europe was born.

Komatsu Italia Manufacturing is strongly rooted in the Veneto region of north-eastern Italy. Its legal office is in the Vicenza area -Noventa Vicentina- and its head office and plant in Este -near Padua.

“Today we have 360 employees and an production capacity of 10,000 machines a year,” said Mr Prandini. “Our production peak was in 2007, when we reached a total output of 12,000 machines. Obviously with the economic downturn of the last few years there has been a decrease in production levels, as in the number of employees. Nevertheless, we are now growing every year and we expect to reach an output of 4500 machines by the end of 2014.”

Komatsu Italia Manufacturing only deals with production for European markets, because the Brussels-based European organisation takes care of product distribution. Research and development is conducted at different levels: global, regional and local. While the global organisation plays an important role in terms of coordination and has an R&D centre in Japan, and Komatsu Europe has facilities in Germany, the Italian operation also has its own R&D department. Carrying out research and development is vital to its work, as its products are continuously evolving, especially to comply with new emissions requirements at European and global level.

“We have recently launched two very important new hydraulic excavators, of which we are the sole producers outside of Japan: the PC170LC and PC138US. They are both traditional excavators but of a higher dimensional class than those which we traditionally manufactured. The former has an operating weight ranging from 17.280kg to 17.940kg and increased net-horse power, while the latter is designed with an ultra-short tail swing to meet the challenges of work in confined

areas. It offers exceptional stability and has an operating weight ranging from 13.700kg to 14.870kg. Both models feature low consumption, environmental friendliness, total versatility, low noise design and the highest safety standards, amongst other characteristics.”

Flexibility, innovation and high-quality

“Our R&D department is very active and our range will significantly grow in the next two to three years, when we will present other innovative products,” Mr Prandini revealed. “Our mid-term plan, which has recently been approved, outlines investments in production technology, resulting in a new production line and possibly, if there is a positive market response, in structural investments.”

The market segments served are earthmoving and construction, plus some niche sectors, such as demolition, defence, civil defence and non industrial earth-moving. The products manufactured are not supplied directly to the final customers, as the widespread Komatsu network of distributors plays this intermediary role.

“Europe is our main outlet market, generating 70 per cent of turnover, although we experience drastically different demand levels according to the country,” said Mr Prandini. “Generally southern Europe is suffering, central and northern European countries vary from a slight decrease in demand to showing signs of recovery, but eastern Europe is doing very well, thanks to the fact that there there is a need to complete smaller or residential infrastructure projects, which requires the size of machinery that we produce.

“Similarly, outside Europe we fare well in all the markets where there is a shift from manual to automated work and/or where utility or midi-machines are required for smaller projects. Significant outlet markets are Australia, South-Africa, Turkey, Egypt and Gabon. Russia is also a fundamental market for us, which we follow directly, as it is outside the scope of our European organisation. We are also strong in countries where there is a need for infrastructural work but where this is carried out by small construction companies which do not utilise larger machinery in their work. Examples

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of these are Angola, north Africa and some south African countries, as well as some Asian markets.”

Growth expectations

Future geographical development will depend on the group’s strategy. “We are obviously happy to manufacture for any market selected by our group,” said Mr Prandini. “I expect growth in Africa, following on Komatsu Global’s footsteps , particularly in Kenya and neighbouring countries. What I think is important for us as Komatsu Italia Manufacturing is consolidating our recovery in all the markets where we used to have very high volumes.”

For the future Komatsu Italia Manufacturing will concentrate on producing machines which offer high quality, high performance and good value for money. “We are very much part of the global strategy of the group and must optimise our production flexibility to fulfil its requirements,” said Mr Prandini. “I think that we have delivered on this and that this is the reason why we have been asked to manufacture the two midi models described earlier. The advantage of being part of a strong Japanese group is their long-term vision, thanks to which we have never stopped investing in innovation, not even at the worst times of the recent recession. While keeping our Italian roots, we have totally adopted the Japanese production philosophy, which I consider to be the best in the world.”

Being an innovative and flexible production site manufacturing high-quality Komatsu products is the real added value of the Italian company, which in line with the rest of the group presents a top of the range offering. The company holds all the certifications required in its industry in terms of quality and environmental sustainability (ISO 9001:2000 and ISO 14001). Being totally in line with the Japanese vision, the company welcomes visits from customers, allowing them to view the site and the production process. n