Empower your movement Sitem

EMPOWER YOUR MOVEMENT

With over 40 years of experience in the production of magnetic sheets for electric motors, Sitem is strengthening its position by diversifying into markets such as home appliances and innovative automotive sectors, such as hybrid cars. Daniele Garavaglia reports.

With a strategic vision focused on continuous growth and facing the technological challenges of the future, Sitem has weathered the economic storms of recent years to emerge stronger than ever. Founded in 1974 in Trevi, in the heart of Umbria, the company has celebrated 42 successful years in the production of magnetic laminations for electric motors.

“We provide a kind of industrial service for our clients who are divided into two main categories: the first consists of manufacturers of electric power systems, to which we supply components to complete the construction of motors and transformers; the second consists of large OEMs, such as Bosch and Electrolux, that use our motors as components in their production of household appliances – also our main market,” says CEO Giovanni Bartoloni, who leads the company together with its chairman Fabrizio Scarca.

Although the company mainly produces components for electrical appliances, it has diversified its offering over the years to include products and solutions for other industries such as automotive, hydraulics, lifting equipment and energy. In fact, magnetic laminations can be used for the production of fans, industrial pumps, burners, industrial generators, wind turbines, lifting equipment, elevator, reducers, air compressors, refrigerators, brushless motors and transformers. Automotive parts such as alternators, electric windows, power steering and fans are also produced by Sitem.

In addition to magnetic steel, purchased from major European steel producers such as ThyssenKrupp and Voestalpine, Sitem is a leader manufacturing in aluminium diecasted parts for housings and other components, handling about 5000 tonnes per year of raw material.

Strong in Europe

Today Sitem operates at pan-European level, with five production units in three countries employing 400 people and recording a consolidated turnover of around €90 million. “Following an internation-

alisation process that was put in train about a decade ago, and our strategic decision to launch a direct acquisition plan, the company currently has three factories in Italy (one in Trevi and two in the Milan area), one in France and one in Slovakia,” says Mr Bartoloni.

The French plant, acquired in 2006, produces magnetic steel laminations for single-phase and triple-phase transformers and AC cores and toroidals, largely intended for the central and northern European markets. The unit in Slovakia has been serving the domestic appliance sector since 2005, particularly in eastern European markets such as Poland, Hungary, Serbia, Ukraine and Romania where many multinational corporations are active.

The most important acquisition, which gave new impetus to Sitem when the economic crisis was reaching its peak, took place in 2009: “We took over an insolvent company in Canegrate, saving 50 employees and a historic business with a great deal of know-how, especially with regards to the German market – the largest in Europe for domestic appliance production and consumption,” says Mr Bartoloni. Massive investments – totalling about €12 million in five years – in a new 18,000m2 industrial plant, new employees and several technological improvements have turned a failure into a success story. Since 2010 Canegrate plant employed about 150 workers, turned from zero to €30 milion its turnover and it is already making profits, with very positive prospects for the coming years.

“Sitem has overcome the economic crisis because we have reinvested our profits in the company’s assets. Now we are larger, better equipped and updated, able to rebound in the strongest sectors and develop new growth momentum.”

New directions

Moving forward, Sitem will be focusing on the industries of the future, such as the production of hybrid vehicles: “Today, approximately 100 million cars are produced worldwide and analysts predict that by 2020 as much as 25 per cent of this market will be made up of hybrid cars. That’s why we are trying to focus our attention on this sector, which now accounts for 6–7 per cent of our turnover,” says Marco Bartoloni, sales director for Italy. Despite its strong presence in foreign markets, especially Europe but also China, Mexico and South Africa, Italy still accounts for 45 per cent of total revenues.

In order to support its growth in the automotive industry, Sitem has obtained all the necessary certifications, including ISO 9001-14001, BS OHSAS 18001 and more recently the technical specification ISO/ TS 16949. “We have also started a continuous improvement process by adopting the Kaizen method: we will extend this to all our plants in order to rationalise production and improve quality, the only two factors that can make us competitive in the market. We are also conducting in-depth research into the development of innovative systems and dies for the manufacture of new products, collaborating directly with the customer. Technology and customisation will remain the drivers of our future expansion, which will include new acquisitions, both in Italy and abroad,” concludes the CEO. n