An energy efficient future Valmex

AN ENERGY EFFICIENT FUTURE

Valmex SpA is building a production plant to manufacture a new line of stainless steel heat exchangers for condensing boilers, writes Barbara Rossi. Industry Europe talks to the company’s management control director, Francesca Capodagli.

The Valmex roots go back to 1969, when MVM was established by Severino Capodagli in Lucrezia di Cartoceto, in Fano area of eastern central Italy. In 1999 Valmex SpA was set up as a manufacturer of heat exchangers for wall-mounted boilers and in 2013 the MVM cold pressing activities were incorporated in the Valmex group. A very recent and important development has been the strategic alliance with Orkli, which has acquired 40 per cent of Valmex’s shares, previously equally split between the Capodagli family and a Swedish industrialist. At the same time, the Capodagli family has increased its percentage of Valmex shares to 60 per cent, having purchased an additional 10 per cent from its previous partner, who decided to sell to Orkli and the Capodagli family for personal reasons. Based in the Basque Country, Orkli is part of Mondragon, the largest industrial cooperative group in the world. The synergy of the two groups – Valmex and Orkli – will aid the development of innovative solutions, favouring the acquisition of new markets and clients.

Today Valmex has 230 employees and a €60 million turnover, and sells its products in five continents. All company plants are based in Lucrezia di Cartoceto. The main Valmex facilities can also be found here, manufacturing heat exchangers, while the MVM cold pressing plant is just across the road. The company is currently building a new 10.000m2 production site just behind its main facilities, where it will be producing a new range of stainless steel heat exchangers for high efficiency condensing boilers.

Francesca Capodagli explains, “The Valmex business unit is specialised in heat exchangers for wall-mounted boilers. Originally, we manufactured these products using copper and then developed a range of aluminium models, still for traditional boilers. While we still manufacture both of these product lines, in recent years we have started manufacturing aluminium heat exchangers – called ‘heat recovery exchanger’ – in response to market demand for increasingly energy efficient products. These products are able to recuperate some of the heat traditionally lost during the heat exchange process. As we believe that energy efficient condensing boilers will gain an increasing hold on the market, first of all in Western countries and then in the rest of the world, we will be manufacturing stainless steel heat- exchangers for condensing boilers in our new plant.”

Condensing boilers in Europe and beyond

“In Europe all new boilers have to be of the condensing type, owing to new legislation that came into force recently (i.e. Energy Related Products Directive 2009/125/CE). Our new range of stainless steel heat exchangers for condensing boilers will accompany our existing line of aluminium heat exchangers for high energy-efficiency boilers. We will also continue our production of heat exchangers for traditional boilers, because they are still in demand in non-EU markets.”

Obviously, the construction of the new plant and the development of new products have required major investments. The plant will

be equipped with automated production lines and investments will also be focused on increasing the production capacity of aluminium heat exchangers for condensing boilers. The company expects an increase in production volumes thanks to growing demand for high energy-efficiency condensing boilers.

As previously discussed, since 2013 the MVM cold pressing activities have been incorporated into Valmex, in a dedicated business unit. The company can offer mechanical and hydraulic presses up to 1250 tonnes. This business unit manufactures components used in Valmex’s production, which is therefore based on a vertical model but also supplies cold-pressed parts to external clients. One of the segments served is the white goods sector, thanks to the fact that Valmex is able to fulfil its high quality and aesthetical standards. The other segments served are large boiler manufacturers and the automotive industry. In addition to this, the company manufactures aluminium micro-channel units for the refrigeration and air-conditioning sector.

The export volume is very significant, as 80 per cent of production is supplied to foreign markets. “Most of our heat exchanger customers are based in Europe, but as their production often takes place in other regions throughout the world, our products can really be found everywhere. For heat exchangers, I would say that 80 per cent of exports are to Europe, with the remainder going to the rest of the world. With regard to aluminium micro-channel units, the split between Italy and export markets is even. This is a very fragmented market and, in terms of exports, we serve both EU and non-EU countries. As far as cold pressing components are concerned, 70 per cent of production is for the domestic market, with the remainder going to EU countries.”

While current volumes are expected to remain stable for aluminium micro-channel units and cold-forming parts, a volume increase is forecast for heat exchangers used in high energy-efficiency wall-mounted boilers. “Our strategy is to develop our high energy-efficiency range for both the EU and non-EU market, as I believe that in the years to come even the latter will have to implement the use of high energy-efficiency boilers. I remember that ten years ago environmental awareness in Italy was not so well developed and definitely not on a par with that of its northern European counterparts. However, things have changed and I expect the same to happen in other regions of the world. I have to say that the wall-mounted boiler market is very specific: for example, the use of this type of boiler is not widespread in the US. For us, potential markets could be China and Korea, but these are not strategic targets. We will try to develop in these markets after 2019. Our strategic focus for the next few years will be an increase in volumes of products for high energy-efficient condensing boilers.”

Future focus

Acquisitions are not part of the Valmex strategy, but cannot be ruled out. Volume growth will be accompanied by organisational growth (in terms of factory, office and staff levels). “In compliance with the Italian Act 231/2001, which states that a company is criminally liable for any breaches committed by its employees, we are developing an organic organisational model including an ethical code, internal regulations and a sanction system. For us this is a natural step, as we already had an ethical code and held several certifications, including UNI EN ISO 9001 and 14001, as well as BS OHSAS 18001.”

“The added value that we offer is the result of the work of our R&D department, which collaborates closely with our clients in order to supply heat exchangers tailored to their needs. Although not all of our products are customised, we offer this option. Our R&D is mainly staffed by young engineers, resulting in a high level of enthusiasm and will to innovate.” n