At the forefront Baxi

at the forefront

Baxi SpA, the Italian designer and producer of boilers and high-tech heating systems, has based its reputation and growth on continuous development of technologically advanced products, supported by an excellent level of service. Today, a few years short of 100 years on the market, the company is stronger than ever before. Romana Moares reports.

With a turnover of €255 million and more than 500,000 units sold, Baxi achieved an excellent financial result in 2017, with a 20 per cent year-on-year increase. The company, which started with a single product, today provides a complete range of energy-efficient products to ensure maximum comfort and savings, and integrated systems with renewable resources.

Managing Director Alberto Favero describes how Baxi SpA has evolved into a market leader. “Although the company’s origins go back to 1925, it only shifted focus to the heating sector in the 1970s. The timing couldn’t be better – it was a period of extensive gas network expansion. By the mid-1980s, the company consolidated its domestic position and turned to the export markets. In 1999 we joined the English Baxi Group, a European leader in the heating sector, and in 2009 became part of the newly created BDR Thermea Group, today’s world leading manufacturer and distributor of smart climate and sanitary hot water solutions.

“We provide not only heating solutions but also offer air conditioning systems as well, which we added to our portfolio some four years ago,” he continues. “Baxi today operates in over 50 countries and employs 700 permanent staff, with an additional 200 seasonal workers to cover increased demand in the high season from June to October.”

Technology of the future

Baxi has always boasted a state-of-the-art product design and development department: over €10 million has been invested in technology and R&D. The products are designed and manufactured in the company’s modern factory in Bassano del Grappa, the largest in its sector in Europe, occupying an area of 100,000m2, housing 14 production lines with daily production capacity of up to 4000 boilers, warehouses and a large area dedicated to logistics management. Continuous improvement is an integral part of the company’s operation, evidenced by its lean production and zero defect projects.

Baxi’s product portfolio is based on boilers (both residential and commercial), hybrid systems and renewable technologies, including solar thermal hot water systems and air source heat pumps. “We are pushing for the heat pumps and hybrid solutions at the moment. It used to be a bit of a niche market before but not anymore: the sustainable energy solutions are now heavily supported and required by regulations throughout Europe, so the hybrid products seem the perfect solution to meet current demands. Besides, the product development strategy is also focused on hydrogen boilers,” remarks Mr Favero.

“One of the things, indeed, that is at the centre of our attention at the moment is the H21 Leeds City Gate, researching the use of hydrogen to run the boilers instead of gas. At the moment, the combination of

both is used as a combustible element but the future will be hydrogen only. Unlike, for example, the Netherlands and France which are slowly moving towards electricity, the UK will continue to use gas, which clearly shows the need to collaborate in development of both technologies.”

Prospective development

Mr Favero explains that what has made the company so strong internationally is the added value provided for customers, i.e. the combination of different solutions at affordable prices, as well as the high level of services, reinforcing the reliability and brand loyalty.

Apart from its Italian base, the company operates factories in several European countries – the UK, the Netherlands, Germany, France, Spain and Turkey. “We have trading companies in Russia, South America, the Czech Republic and elsewhere, and a facility in China. While the format of our products is the same, we offer slightly different applications for different markets, and also use other brands in various countries,” says Mr Favero. He goes on to explain that although the company’s key markets are in Europe, Baxi’s presence in China and Russia is increasing. “We are the market leader in Russia, where we have been operating since 2000, and currently plan to invest in a new plant in China to boost our position there in response to the rapidly increasing demand for boilers.”

He also confirms that the company fully reflects the current trend of digitalisation and increases product connectivity in line with market demand, supporting the Industry 4.0 concept. “Traceability of all parts and products is a big issue now, and this starts with suppliers. At the moment, all components incorporated in a new boiler are fully traceable.”

Given the increasing demand for high-quality, reliable heating solutions, prospects for Baxi seem good. As noted by Mr Favero, the company now needs to focus on the service aspect. “The more complex product, the more we need to be in close contact with customers. That’s why the emphasis on service is so strong and will continue to be in the future,” he says, adding that Baxi will also strive to complete its other strategic tasks: consolidate its presence in its key markets; further enhance the product, system and service offer; apply the Industry 4.0 principles and attract new young talent, to drive the company forward. n