A force in the marketplace Industrie Ilpea

A FORCE IN THE MARKETPLACE

Italian company Industrie Ilpea SpA is a world leader in the production of magnetic gaskets for refrigerators (the company’s core business), other extruded plastic, moulded rubber and magnetic components. Ross Davies spoke to CEO Dr Paolo Cittadini about its innovative research and development activities and dedication to customer service in the marketplace.

With its headquarters in Malgesso-Varese, Italy, Industrie Ilpea SpA currently employs a workforce of 3800 people worldwide. Since being founded in 1960, Ilpea has also undergone a number of changes and significant events that have contributed to its global success. These include merging with the American group Pantasote Inc in 1970, which facilitated integration into the international markets, and also the subsequent buyout of the European Pantasote companies, with the aid of several international banks, in 1989. In 2001, Ilpea acquired Holm Industries Inc., a company that had previously purchased the American plastic business of Pantasote, thus further globalising its industrial footprint with plants in the US and Mexico.

The group’s activities are divided into three divisions, as explained by its CEO, Doctor Paolo Cittadini: “We serve three main markets: the appliance, the automotive and the building products markets, through three main operations. Firstly there is the manufacturing of plastic materials and innovative components, which we develop and codesign with our customers, the most important of which is magnetic gaskets for refrigerators that are produced in several plants worldwide. Secondly, we manufacture technical rubber components for which we have three large plants in Italy, Poland and Mexico. Lastly, we have a division for magnetic products which was set up in 1968 primarily for refrigerator gaskets, but has since expanded into products for various industrial uses, with two plants in Europe and the USA.”

These three divisions have given Ilpea the opportunity to serve a broad range of industries with its plastic materials division alone serving a plethora of market sectors from household appliances, its main market, and car components, to window frames and shower units in the construction industry. Similarly, Ilpea’s rubber components division targets production fields such as rubber gaskets for laundry, the car and railway construction industries, while its magnetic products division supplies components for various applications ranging from magnetic sensors for ABS and EDS for cars, to electric motors and promotional gadgets.

Investments in R&D

I asked Doctor Cittadini if Ilpea has made any recent investments to expedite growth: “We have sought to make investments in emerging markets such as Mexico, Brazil, India, Turkey and Poland where we recently inaugurated several new plants, in addition to the premises we acquired after the takeover of Holm Industries in 2001. We also invested in a new production facility in Russia in 2008 and are currently exploring possible future growth in Korea and China,” says Dr Cittadini.

Ilpea’s three divisions, although sharing the same industrial and market ambitions, each have specific, independent sales structures, marketing strategies and research and development centres. Ilpea has made constant strides in promoting innovation in the work place. “R&D is very important to us in developing the best technological products.

For example, on behalf of our customers, we are constantly looking for ways of reducing energy consumption. With regards to our core business, we are also seeking to develop magnetic gaskets for refrigerators that seal more efficiently,” explains Doctor Cittadini.

Operating in laboratories with the most modern analytical instruments, Ilpea’s R&D engineers create innovations such as flexible plastic material for high insulation gaskets, PVC free compounds, co-extrusion of soft and rigid materials reinforced with metal inserts, special compounds for slush hides for cockpits and highly automated processes for several automotive components and appliances. Ilpea has handled such diversification while adhering to its environmental values including the complete recycling of all products.

Ilpea’s global presence is demonstrated by its vast array of clients. With regard to its PP and PA tubes for gasoline and water for automotive applications, and plastic and rubber components such as windshield frames and flocked side windows, it serves such worldwide OEMs as VW, GM, Chrysler, Audi, Fiat and Seat. Ilpea-owned trademarks include Galvarplast, Isoskin, IOS, Pulverox and Oximag.

Delivering customer service

Ilpea also strongly believes in communication as an important element of business relations, deeming customer satisfaction to be the most vital requisite. Dr Cittadini explains: “Although our marketing approach may differ for each division, it always focuses on delivering optimum customer satisfaction. This service entails co-designing products with customers and developing the components as quickly

and as accurately as possible, providing continuous technical assistance. Also, we have always made a concerted and deliberate effort to construct our production facilities close to our customers, wherever they may be located.”

When asked about future growth, Dr Cittadini answers. “Whether it is in technology, developing new products – which we are always striving for – or in our customer relations, innovation is the most important thing. Yes, the global recession has affected us just as it has affected everyone but it has also galvanised us to react by developing new ideas. The global presence of our company in several emerging markets such as Brazil, India, Mexico, Turkey, Poland, Hungary and eastern Europe has also allowed us to offset the negative effects of the crisis affecting our mature markets such as western Europe and the USA. While still concentrating on Europe and the USA, where we still have a strong presence, we will also be looking to further expand in other emerging countries, such as China and Korea where the appliance and automotive markets are quickly improving and production costs are very competitive. We believe this is where our customers will head, so we will do the same.” n