Combing strengths Sitem

COMBINING STRENGTHS

In November 2016 Sitem SpA made its take-over of Stanzwerk AG official. Giovanni Bartoloni, managing director, and Marco Bartoloni, Italy marketing manager, talked to Barbara Rossi about this acquisition and the benefits it will bring to Sitem as a whole.

Sitem SpA is headquartered in Trevi, in the central Italian region of Umbria. It has five divisions, three of which are in Italy, one in France and one in Slovakia. All of its facilities hold all the major sector certifications. Its core business is magnetic laminations for electric motors, although its range also includes metal sheets for transformers and die cast components. It employs over 700 staff and its expected turnover for 2017 is in the region of €170 million. Thanks to the Stanzwerk acquisition, its next target is to record a €200 million turnover by 2021.

Giovanni Bartoloni explained, “When the opportunity to acquire the Swiss company Stanzwerk arose on our horizon, we decided to go ahead with it because we were interested in widening our range of products to be able to offer a comprehensive range of metal sheets and components for electric motors. We already served the automotive market, but only in a marginal way. Half of the Stanzwerk turnover is generated by components for the automotive industry. In particular, it serves second tier automotive manufacturers, who serve the major automotive OEMs. The other half of its range features components for ventilation and power tool applications. We are so interested in increasing our presence in the automotive sector because we believe this is going to be a significantly growing market, especially with regard to electric engines, which are deemed to be the engines of the future. This sector really offers opportunities for exponential growth; suffice it to say that currently automotive manufacturers have problems finding thin magnetic metal sheets for electric cars.”

He continued: “We are also particularly interested in products for automotive applications because of the advanced technology involved. Technologically, Stanzwerk is among the top European players and its technological sophistication makes its products highly appealing, despite the higher costs due to keeping production in Switzerland. “The integration process with Stanzwerk will take some time. Soon the new MD will go there (I will be the chairman) while no

changes will be made to the rest of the management because we believe they are a real asset. We believe in synergy and have already started working with Stanzwerk at R&D level. Not only will its technological advances be used for future automotive applications, but will also be employed for the products produced by our other divisions in Italy, France and Slovakia. For instance, we are working together on glue improvements, developing various types of glue. The need for better types of glue originated in the automotive sector, which has a need for very thin metal sheets. Welding cannot be used with these, so suitable types of glue are necessary. We are conducting an ongoing project on this, working with the University of Zurich. Obviously, we could then apply this technology to some of our other products.”

other applications

“Apart from the newly acquired automotive products manufactured by Stanzwerk, our main range of products features magnetic metal sheets and die-cast components for electric motors in general, particularly for pumps, white goods and lifts. The Milan (Limbiate) site is specialised in die-cast components for industrial electric motors, Trevi in magnetic metal sheets and components for pumps, white goods, bench motors and lifts, as well as other applications. The third Italian site takes care of making and maintaining moulds for the rest of our works. The Slovakian facility replicates the Trevi production, but for eastern European markets. The French site manufactures magnetic metal sheets for transformers, particularly for the medical sector.”

Strategies for growth

Europe is the company’s main market, with Germany particularly important, especially in terms of the automotive sector. Before the Stanzwerk acquisition 50 per cent of Sitem’s turnover was gener-

ated by exports; now this has reached 60 per cent and is expected to increase to 80 per cent. “One factor which made Stanzwerk so appealing was the opportunity that it offered us for increasing and strengthening our position on the German automotive market – the main automotive market in the world. We had already moved in this direction when we took over Decoup in France and set up the Slovakian company.”

The company’s growth strategy also involves a commercial partnership with a large competitor to distribute its automotive range in Mexico and China. Giovanni Bartoloni added, “Thanks to this agreement, which is at a very advanced stage, we will complement each other. To put it in simple terms, most automotive OEMs that have delocalised some of their production in countries such as China and Mexico want suppliers in physical proximity to them. As setting up production in these countries is out of reach for us, we are drafting this agreement, thanks to which our partner will produce our products for these markets at its facilities in these countries. In exchange, we will manufacture its products in our plants, for its European customers.”

The Stanzwerk acquisition has understandably been a very demanding process, which means that currently there are no plans for further acquisitions. Future plans might include the expansion of the Slovakian facility, which may begin manufacturing some automotive products for the eastern European market in the future.

“Having a comprehensive range of products offers benefits at various levels. For instance, once I serve a large client with one of my products, I am able to offer them products for other applications.

“We are also conducting R&D and developing new products at the Sitem facilities. We intend to broaden our range to include a wider range of motors: for instance, due to European legislation, there has been a move from aluminium laminations used for induction motors to those suitable to the IEC motors – in other words the standard European motors which are now required.” n