J a n u a r y 2 0 15
w w w.manufacturingglobal.com
TOP 10 players in
Sustainable Manufacturing
2015 Handling Waste on a Flexible Production Line
GOING GREEN for the Millennial Generation
Special Report: IVECO trucks in Australia
editor’s comment
An exciting year for the Manufacturing Sector W e l c o m e t o t h e f i r s t issue of
Manufacturing Global in 2015, and what an exciting year lies ahead for the industry. With advancement in technology accelerating at a pace faster than ever before and new companies joining the sector every day, 2015 is set to be a game changer. Talking of game changing, this issue is our ‘green issue’ and focuses on sustainability throughout the manufacturing supply chain, from planning and production through to logistics and sales. Now, more than ever before, manufacturing firms need to listen to consumer demand and customers want to know that their products were made with sustainability in mind. We ask how manufacturers can manage waste for greater product flexibility and consider how to market goods to appeal to a Millennial generation. Also in this issue we take a look at the world’s most sustainable manufacturing companies and their green strategies. You may be surprised about who makes the list.
Enjoy the issue!
Abigail Phillips Editor abigail.phillips@wdmgroup.com 3
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Contents
Features
8
Top 10
The World’s Ten Most Sustainable Manufacturing Companies in 2014
24
Leadership GOING GREEN
Manufacturing for the Millennial Generation
LEAN Modern Manufacturing
Relies Heavily on Waste Management
16 5
Contents
6
May 2014
Contents
70 ABIT: The Brazilian Textile and Apparel Industry Assoc.
62
Verosol
76 ABAF: The Bahian Assoc. of Forest-Based Companies
50
Holden New Zealand
36
IVECO Trucks Australia & CNH
company profiles Australia
84
36 CNH Industrial
Grupo Surpapel
50 Holden New Zealand 62 Verosol
Brazil 70 ABIT (Association) 76 ABAF (Association)
Latin America 84 Grupo Surpapel
94
CNH de México
110
Furukawa México (FURMEX)
94 CNH de México 110 Furukawa México (FURMEX) 7
leadership
GOING GREEN Manufacturing for the Millennial Generation Written by: John Lass, CenterPoint Properties
Are green facilities the answer to connecting with Millennials?
9
leadership
Manufacturing for a millennial generation Millennials might not call themselves environmentalists, but they are certainly more concerned with the environment than previous generations. According to a recent report by Walden University, 81 percent of adults worldwide say that when purchasing goods or services, they prioritize firms who demonstrate environmental responsibility. At this point, 10 January 2015
manufacturers need to start taking the hint. More than just a cultural connection, manufacturers who restructure their processes and properties with sustainability in mind also stand to achieve significant savings. Many of these eco-minded changes involve operational shifts to reduce an organization’s environmental footprint, but others
Ma n u f a c t u r i n g f o r t h e M i l l e n n i a l G e n e r a t i o n
are best realized through changes in manufacturers’ facilities themselves. Looking for a Greener Pasture Although underappreciated, the location of a manufacturer’s facilities plays a key role in determining its environmental impact. Facilities located far from consumer markets incur higher transportation costs to move goods through the supply chain, increasing both the toll on the environment and production expenses. The modes of transportation manufacturers rely on are worth considering too. While
John Lass is a Vice President, Development, at industrial real estate firm CenterPoint Properties.
81%
of adults worldwide proritize firms that demonstrate environmental responsibility. trucking is often the most viable option for last-mile delivery, it’s an expensive choice for long-distance hauls. Trucks consume twelve times the energy to transport an identical shipment as rail, and cost manufacturers more than thirteen times as much in transport fees. Firms looking to save the environment and their pocketbooks are wise to consider relocating closer to population centers and transportation hubs. But not all manufacturers have the flexibility to locate near their target market; their audiences may be so widespread that such a move would make little financial or environmental sense. For these organizations, locating their facilities and distribution centers in transportation-advantaged areas is vital to streamlining the shipping process. Rather than relying on a single mode of transportation, 11
leadership
‘Environmentallyconscious development, LEED certified or otherwise, isn’t just about courting Millennials. Many manufacturers have found that the steps toward green development make good business sense too.’
manufacturers positioned in these locations can construct intermodal strategies. With truck, rail, air and even maritime shipping as accessible alternatives, organizations can optimize their long haul and lastmile operations for financial and environmental savings. It’s important to note that even in situations where a manufacturer is forced to trade off expediency for energy efficiency, most Millennials are willing to wait. 82 percent of 18 to 25 year-old consumers would wait longer for sustainably delivered products – more than any other age demographic – according to a recent study by West
Tour of a LEED Certified factory
Monroe Partners. The Perks of Sustainable
Development As manufacturers contemplate relocating in order to minimize their environmental footprint, they should strive to ensure that the facilities themselves are designed with sustainability in mind. Developing LEED-certifiable property is a tangible way to demonstrate an organization’s commitment to sustainability. Fortunately, in November 2013, the 12 January 2015
82%
U.S. Green Building Council updated its LEED program, simplifying the certification process and adding more accommodations for industrial real estate projects. These certifications are well on their way to becoming a standard: the number of LEED certified buildings in the industrial manufacturing space skyrocketed from 198 facilities in 2010 to nearly 1,400 as of October 2014. Environmentally-conscious development, LEED certified or
of 18 to 25 year-old consumers would wait longer for sustainably delivered products. otherwise, isn’t just about courting Millennials. Many manufacturers have found that the steps toward green development make good business sense too. Efforts to reduce energy use, cut waste and promote efficiency translate clearly into long-term benefits for manufacturers. A study by the U.S. Green Building Council found 13
leadership
Natural lighting, noise reduction panels and a spacious environment make this a sustainable factory
‘A study by the U.S. Green Building Council found that LEED certified buildings average a 28 percent savings in energy costs compared to a baseline facility. ’ 14 January 2015
that LEED certified buildings average a 28 percent savings in energy costs compared to a baseline facility. When scaled for total energy consumption over time, the resources dedicated to developing green buildings represent a significant investment toward reducing an organization’s future footprint and costs. Incidentally, reduced energy use can also help mitigate the effect of energy price fluctuations on a
manufacturer’s operations. Green Commerce Going forward, green operations will become an even more critical component of manufacturers’ attempts to capture millennial customer loyalty and positively impact their bottom lines. Organizations that locate near their customer base can offer shorter shipping times and
a minimal environmental footprint, while those near transportation hubs can take advantage of intermodal networks to deliver goods more sustainably. Despite the renowned fickleness of Gen Y customers, their environmental inclinations seem steadfast. Recognizing this trend and changing accordingly isn’t just a matter of customer retention, it’s about staying competitive for decades to come. 15
Le a n
Modern Manufacturing Relies Heavily on Waste Management Heightened consumer demand, the need for greater product flexibility and everdecreasing budgets is turning the heat up for manufacturers. Manufacturing Global speak to global manufacturing guru’s Dassault Systèmes and discovers that waste management is central to overcoming these hurdles Writ ten by: Oliver Dréan, Director of Solution Alliances at Dassault Systèmes
17
Lean
Porsche is one manufacturer that offers bespoke solutions to its clients In today’s world, everything is fast moving. Customers and suppliers want matters put to bed yesterday, if not sooner. For manufacturers doing business in this difficult economic environment, it’s sink or swim. Those that can respond fastest and most efficiently to change will ultimately be the winner, gaining market share, customer satisfaction and profits. 18
January 2015
In order to accommodate this level of responsiveness, new focus has now been placed on removing waste from operations. Redundant steps or circuitous processes hurt agility, so must be removed. To be the best, businesses must ensure each of their business processes are synchronised across all operations, and across all locations within and beyond their
Ma n u f a c t u r i n g R e l i e s H e a v i ly o n W a s t e Ma n ag e m e n t
enterprise, if these manufacturers are to survive and thrive in today’s global economic arena. Given the customer service culture of offering multiple options in delivery, design and timescale – the pressure is on for manufacturers to deliver. Take Porsche (among other manufacturers), where you can walk into one of their garages with a paint sample, and they will create a bespoke car in that exact colour. In order to create this type of customer experience, companies must be agile and responsive to the needs of both their suppliers and customers. Process Replication or Standardisation? Each of the processes performed on a production line must be highly synchronised and in tune with the materials, manpower and machinery available. In order to accomplish this task, manufacturers need near realtime visibility into the whole production line and, as such, be flexible to change without causing disruption. The aim is to ensure all the production cogs are turning and the production line remains spanner-free! Here is the rub: if plants are not
‘Take Porsche, where you can walk into one of their garages with a paint sample, and they will create a bespoke car in that exact colour. In order to create this type of customer experience, companies must be agile and responsive to the needs of both their suppliers and customers’ 19
Lean
operating with consistent processes across all operations, then it becomes very difficult to frequently perform wide scale engineering or production changes. Here is where process replication strategies may appear adequate, but without standardisation, this effort falls short. Anywhere that process inconsistency exists across locations represents waste, indicating that greater challenges lie ahead.
Oliver Dréan, Director of Solution Alliances at Dassault Systèmes
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January 2015
Going Lean to Improve Agility Autoliv has put this idea to test, demonstrated by implementation of a DELMIA Apriso solution to boost customer experience levels. The goal was to synchronise material flows throughout their product supply network to eliminate idle inventory and increase responsiveness to changing demand conditions. Other objectives were to continuously improve quality and reduce cycle times. The overarching theme was to make all processes leaner and more efficient – an objective shared by many other manufacturers today. “One of our anticipated benefits is to ease the standardisation and sharing of best-in-class processes
f e at u r e a r t i c l e s h o r t e n e d h e a d l i n e
Personalised manufacturing is no longer just something offered by high-end manufacturers across more than 30 locations,� explained Gilles Bridon, senior AEU IT director at Autoliv Europe, in a news announcement published recently. The industry is being transformed by a new approach to manufacturing operations management - one that encompasses not just the plant floor but also the warehouse and
extended product supply network. Such a strategy is linked to Lean manufacturing, a process whereby inefficiencies are eliminated from every production process. Supply chains are tightened, inventories reduced or virtually eliminated with just-intime processing, and production operations at every stage streamlined 21
Lean
‘A production line must be highly synchronised and in tune with the materials, manpower and machinery available’
‘Technology isn’t slowing down and nor are your clients expectations’
and optimised. In essence, we are seeing the transition from push manufacturing to a tightened up pull strategy where decision-making is built on hard data rather than intuition. The ideal is to operate with zero waste in terms of labour and materials. If such a zero-tolerance attitude to waste is adopted businesses
Ma n u f a c t u r i n g R e l i e s H e a v i ly o n W a s t e Ma n ag e m e n t
will quickly reap the benefits. We cannot ignore the changes affecting our industry; the engine whirs on. If your business is the faulty cog, it will be removed. The key to being successful in this changeable, globalised, working world is to be adaptable, both in terms of toplevel strategy and day-to-day
functioning. Process consistency across your entire enterprise is the infrastructure necessary to execute upon this strategy. Technology isn’t slowing down and nor are your clients expectations. We must do more for our clients and be more flexible to achieve more.
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TOP 1 0
The World’s Ten Most Sustainable Manufacturing Companies in 2014 W r i t t e n b y: A b i g a i l P h i l l i p s
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top 10
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L’Oreal
L’Oréal’s ambition is to win one billion new consumers by means of its universalization strategy, which aims to answer all the diverse beauty needs of men and women around the world, by 2020. Part of the Group’s growth strategy is its commitment to produce more but with less impact and to engage consumers, who are at the heart of its business, to make sustainable choices by offering them products that are both sustainable and desirable. In order to achieve this, L’Oréal commits to
improving every part of its value chain, from research to operations, while sharing its growth with the communities it touches through it campaign, ‘Sharing Beauty With All’. “L’Oréal has a strong legacy in sustainability and a thorough ambition for the future. We are proud to announce ‘Sharing Beauty With All’, our sustainability commitment for 2020. We believe consumers are at the heart of our sustainability drive and we want to reach the next billion consumers while making a positive impact on the world. By accelerating sustainable innovation within our business, and harnessing the power of our brands to inform consumers, we will raise awareness about sustainability and encourage consumers to make more sustainable choices,” says the company. www.loreal.com
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08 09
Coca-Cola Enterprises
From its packaging to its advertising campaigns, its people management to charity work Coca-Cola is a company with sustainability in mind. The CocaCola Company is committed to good corporate governance, which promotes the long-term interests of shareowners, strengthens Board and management accountability and helps build public trust in the company. It also promotes sustainability in every business decision, which not only makes it a strong company, but also a good corporate citizen.
Scania
“We want to be the leading provider of sustainable transport. This means integrating sustainability fully into the business and working with others to tackle impacts, transform our industry and create lasting value,� says Scania in its mission statement. And to highlight how central sustainability is becoming to the business, it outlines key indicators to reduce its footprint and develop innovative, low-carbon logistics and mobility solutions that enhance customer profitability and bring value to society. Scania has put sustainability at the forefront of the business and is reaping the rewards. www.scania.com
www.coca-cola.com 27
top 10
07
Samsung Electronic
Integrating corporate management and sustainable development is an issue of increasing importance in the business world, amid increasing expectations for social and environmental responsibility. In response, Samsung has been improving the process of collecting stakeholder’s ideas and setting up corporate-wide vision and strategies for sustainable development. “We have designated economic, environmental, and social
responsibilities as the key elements of our sustainable management. We are committed to continuing to identify our various stakeholders, build positive relationships with them, and ultimately enhance our value for both the company and the stakeholders.” Samsung carrier out a wide range of environmental activities all around the world - “We’re leaders in recycling e-waste and designers of some of the most energy-efficient electronics products on the market. Everything we do is guided by our focus on the “greening” of management, products, processes, workplaces, and communities. Our green management policy sets some of the highest environmental standards for workplace operations, and design and manufacturing processes.” www.samsung.com
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M o s t Su s t a i n ab l e Ma n u f a c t u r i n g C o m pa n i e s , 2 0 1 4
Road to Digital Future: Siemens to Equip Street Scooter Electric Vehicle with Innovative Electronics and Software
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Siemens
“Sustainability is a buzzword used in many different contexts with many different connotations. We at Siemens don’t just talk about sustainability. We’ve made the three areas of sustainable development – environment, business and society – the cornerstone of all our activities.” At Siemens, sustainability is not just an added bonus, but rather underpins everything the business
does. The company’s stated goal is to participate in shaping a sustainable future – with a view to economic, environmental and social aspects. To achieve this goal, it has defined and implemented concrete and business-relevant measures in its Sustainability Program. www.siemens.com
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top 10
The World’s Only Manufacturer of
Planes & Trains
05
Bombardier
“CSR is fundamental to how we think, how we conduct our business and how we identify and capitalize on growth opportunities,” reads Bombardier’s CSR dedicated website. “The strategy that drives our business is based on shared value principles: creating better ways to move the world to meet a fundamental societal need. It is the necessary answer to urban congestion and sprawl; escalating oil and energy prices; environmental challenges; and the overwhelming need to connect people to opportunity and to each other.” As the world’s only manufacturer of both planes and trains, 30
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Bombardier provides the transportation solutions of tomorrow that drive value by addressing mobility needs, while respecting planet and people. By conducting its business in collaboration with and to the benefit of its stakeholders, the company has been able to create the conditions for engaged talent, constant innovation and eco-efficient products and services that shape the company’s so called ‘Evolution of Mobility’. www.bombardier.com
the evolution of mobility
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Natura Cosmeticos
Natura Cosmeticos has long been considered a leader in sustainability, known for materials and marketing innovations that aim to reflect its tagline of ‘well being/being well.’ The Brazilian cosmetics maker has been recognized by organizations such as Corporate Knights, the U.N. Environmental Program, SustainAbility and the Boston Consulting Group. For instance, as a founding member of the Union for Bioethical Trade, Natura has promised to
source ingredients sustainably without harming biodiversity, including getting one-third of its raw materials from the Amazon. The company is currently working on Programa Amazonia, a plan to inaugurate its Ecoparque — a 1.7-million-square-meter closedcycle industrial complex in the Amazon region — in March. The company hopes to eliminate waste and guarantee a clean destination for bi-products from Amazonian fruits, oils and berries that are used to produce its cosmetics. The plan also will involve the application of innovations from process and product research. www.naturacosmeticos.com.ar
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2013 BMW M6
03
BMW
BMW is making strides in sustainable manufacturing in more ways than one. As Norbert Reithofer, Chairman of the Board of Management of BMW AG says, “With our entry into electromobility in 2013 we sent out a clear message on emissions-free mobility in urban areas. The fully electric BMW i3 is purpose built for electric driving. “We take a holistic approach by implementing sustainability along the entire value chain. We see this as an investment in the future. It is our way of ensuring that sustainability is established as part of the very structure of the company, becoming an integral part of our 32
January 2015
day-to-day lives.” According to BMW sustainability is not a shortterm solution but rather a key component of its longterm corporate strategy. By 2020, BMW aims to have reduced the CO2 emissions of its European new vehicle fleet by at least 50 percent compared to 1995. From the outset, the BMW Group also committed to the EU target of 95 grams of CO2 per vehicle from 2020 onwards. On its production lines the company aims to reduce resource consumption per vehicle by 45 percent by 2020 compared to 2006. Its long-term vision is to achieve completely CO2-free vehicle production. www.bmw.com
M o s t Su s t a i n ab l e Ma n u f a c t u r i n g C o m pa n i e s , 2 0 1 4
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Umicore
Umicore measures sustainability in terms of economic, social and environmental goals and believes all three elements work together to create a sustainable working environment. In order to achieve its ambitious goals the company set specific performance and impact related objectives, which were debated and set by the executive committee and a number of project
teams. At Umicore, sustainability is a top-level concern. The company’s process identified six key megatrends – Economic Performance, Growth and Return, Great Place to Work, Zero Accidents, Eco-Efficiency and Local Community - and every department from HR to Procurement was bought on board to make the company’s vision a reality. www.umicore.com
The Umicore-sponsored Umicar Infinity, participating in the 2007 World Solar Challenge
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01
Adidas
Being a sustainable business is about striking the balance between shareholder expectations, the needs and concerns of employees, the workers in throughout the supply chain and the environment. “We truly believe that acting as a responsible business in society is not only an ethical obligation, but will also contribute to lasting economic success,” says Adidas. “We have been working towards sustainability for many years and recognise that the task ahead of us is a marathon, not a sprint. It is about preparedness and setting the right pace, having both the
drive and stamina to make the distance. And most of all, it is about endurance: overcoming setbacks and difficulties, keeping the finishing line always in the forefront of our minds,” reads the company’s website. Adidas has outlined its sustainability strategy by breaking it into four pillars; people, product, planet and partnership. This video, produced by Adidas explains its sustainable mission in more detail. www.adidas.co.uk
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IVECO Trucks Australia & CNH:
IVECO Trucks Australia and CN the Road Quicker
IVECO Trucks Australia has a long and proud hist the early 1900s. Over the last 100 years, Australia growth and development through its primary and Written by: Andrew Rossillo Produced by: Nick Ledue
NH Put Clients on
tory in this country starting in a has experienced remarkable d secondary industries.
I V E C O T r u c k s A u s tra l ia & C N H
The iconic ACCO – a derivative of the tough and versatile military specified AACO – rolls off the Dandenong production line.
IVECO Trucks Australia manufactures and distributes light, medium and heavy commercial vehicles for the Australian road transport industry. Formerly International Harvester and International Trucks, the company has been part of Australia’s way of life since 1902. IVECO Trucks Australia is wholly owned by IVECO SpA which is part of the Fiat Group based in Turin, Italy. “IVECO Trucks Australia belongs to the IVECO brand, under Fiat Automotive. In this context, we are a small plant that is part of a huge worldwide 38
January 2015
network,” explained IVECO Trucks Australia’s Head of Manufacturing Edoardo Bozzola. IVECO Trucks Australia has a long and proud history in Australia starting in the early 1900s. Over the last 100 years, Australia has experienced remarkable growth and development through its primary and secondary industries. International Harvester, subsequently International Trucks and now IVECO Trucks Australia, not only built the road infrastructure, they helped build the road transport industry. They developed their
au s t r a l i a
The CNH Industrial plant builds Iveco trucks and buses – many of which are uniquely Australian and designed to meet the demands of local customers.
manufacturing processes and product development in line with the growing needs of Australia. Its strong tradition of local trucks manufacturing is closely linked with the creation of the Dandenong manufacturing plant. When it opened in 1952 it represented significant investment into the Australian truck industry. It was a significant expansion of International Harvester’s Australian activities and was built in Australia’s post war expansion phase (even before General Motors Holden’s began supplying cars to the market).
The Company’s strong tradition has been granted even greater capabilities and potential through internal synergies. “Since the Fiat Group brought IVECO together with CNH, we are now the same entity, and we are finding huge synergies across all functions between our two businesses. We’re sharing resources, know-how and networks,” said Bozzola. “We also started doing some work for CNH here in our Dandenong plant. Just a few months ago, we started putting together tractors. Being able to bring in new business into a w w w. i v e c o . c o m . a u
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supplier supplier profile profile
Company name BusinessFriend
Employees: Xxxxx Businessfriend Established: Xxxxcreates a digital eco-system that drives individuals and organizations to personalxxxx and professional success. Industry: Xxxxxxxxxxxx xxxx xxx xxxxx xxxxx.Make connections, nurture relationships, and harness the strength of your social network with Services: Xxxxxxxxxxxx xxxx xxxx xxx xxxxx xxxxx. business utilities that take you beyond your connections. We operate under Ongoing xxxx xxxxIdentity, xxx xxxxx xxxxx our BUSI Projects: platform,Xxxxxxxxxxxx a Business Utility Social which gives you the opportunity to Xxxxxxxxxxxx meld the strength andxxxx familiarity of your online social identity Management: xxxx xxx xxxxx xxxxx with the software-like need toentry collaborate and conduct business. Website: address goestools hereyou as the last
au s t r a l i a
manufacturing plant in Australia like that is unique and something we’re very proud of.” “CNH Industrial is essentially the bringing together of the industrial arm in CNH, which is agriculture and construction, creating a global top three capital and industrial goods company. CNH Industrial is ranked in the top three globally in terms of overall revenue and capital industrial goods. And the organization is very diverse in that it comprises commercial vehicles with the IVECO brand,” said Head of Corporate & External Affairs for CNH Ron Grasso. “It also has Case and New Holland Agriculture, the construction of equipment of Case and New Holland, as well as various
other arms, including an in-house powertrain engine manufacturing and design capabilities; one of the largest in the world, which is FPT (Fiat Powertrain Technologies).” Dandenong Manufacturing Plant The Dandenong plant originally covered 34,000 m2 and produced 2,000 vehicles in its first year. Since then, more than 230,000 trucks have been manufactured; more than any other truck manufacturer in Australia. Today IVECO manufactures ACCO, Powerstar, Stralis AS-L and AD/ AT models and bus chassis at its plant in Dandenong, Victoria. It is also the home of a large product engineering department that has
“We have about 200 local vendors that we work with. A vast majority of them are manufacturing vendors here in Australia. We have approximately 80 percent of local components in our models, which is remarkable.” – IVECO Trucks Australia’s Head of Manufacturing Edoardo Bozzola
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Founded in 1919, Norman G. Clark is an Australian owned & operated business. Norman G. Clark have been manufacturing Horton products in Australia since 1963.
Get in touch with us today. www.ngclark.com.au
44 Kylta Road Heidelberg West, VIC 3081
ph: 03 9450 8200
au s t r a l i a
a facility for building and testing prototypes built to suit Australian conditions. IVECO Trucks Australia continues to invest into its Australian manufacturing capabilities with new product launches. “We’re a bit special in that we have a single assembly line that currently produces five models of trucks, all quite different from each other. We go from the well-known ACCO, a market leader in the waste disposal business, to the Stralis, a very popular model in Europe which we import components for and put together in our factory,” said Bozzola. “We also have two
supplier profile
bonneted trucks which are designed locally, including the Powerstar which has been around for a couple of decades. We also now have the brand new roadtrain that we just launched this year, which has helped us to enter into a new segment that we weren’t previously competing in. The second is more of a restyling off our current ACCO model, which is the market leader in the compactor market. In terms of the restyling, what is apparent to our customers is a face lift, creating a more modern and aggressive look. But there is much more behind that. We’ve added significant new
Norman G.Clark (A/Asia) Pty Ltd
Established around 1919 in Melbourne, Norman G Clark is an Australian owned family business, with a long and remarkable history. Still owned and operated by the founder’s grandson, it continues to manufacture, import & distribute an extensive range of diesel engine accessories, industrial equipment & components. Today our main products include: • Horton® fan drives for heavy duty diesel vehicles • Nexen® equipment for a broad range of motion control applications • Deublin® rotary unions for general and specialist industrial processing applications • Nett Technologies® exhaust purifiers for all types of internal combustion engines Many items in the Horton & Nexen ranges are manufactured locally, by us, under license agreements dating back to 1962. The goal of every member of our team is to give value to our customers each and every time they deal with us. This value is embodied in the products, services and advice we provide. Website: www.ngclark.com.au
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I V E C O T r u c k s A u s tra l ia & C N H elements, such as new suspension, new electronic capability control, as well as other additions and improvements that make it suitable for the 21st century. On top of that, we also produce a bus chassis specifically for Australian markets.” All of IVECO’s manufacturing is done in the Dandenong South, Victoria facility, allowing them to produce everything under the same roof. The Company also relies on a local supply chain that is very strong. There is a manufacturing hub
in the Dandenong area that supports the Company’s production. “This very effectively allows us to be very flexible in what we do, reinforcing our customisation capabilities and short lead time to clients. Having a local supply chain ensures that we can sustain these capabilities at all times,” said Bozzola. “We have about 200 local vendors that we work with. A vast majority of them are manufacturing vendors here in Australia. We have approximately 80 percent of local components in our models, which is remarkable.” “The Australian market is quite special about its requirements, and our main challenge, task is to make the most of local design and R&D paired with our broad supplier and manufacturing base back in Europe. We try to merge these components to offer the best truck at the best price; based on Australian specifications,” said Bozzola. On Road Vehicles IVECO Trucks has one of the broadest ranges of on road commercial vehicles, offering versatility and flexibility, from the smallest van up to the heaviest duty
au s t r a l i a
Precision fitment of the latest technology on an Australian designed and manufactured heavy vehicle.
roadtrain. Their on road models include the Daily, Eurocargo, ACCO, Stralis and Powerstar. “ACCO has been around Australian roads for over 70 years now, having gone through several designs and improvements by now,” explained Grasso. “It was originally designed for defence roles as a military vehicle. It has strong origins in hardcore military use,” said Grasso. “The plant and ACCO model were born together during the 50’s, and continue to grow and develop.”
Off Road Vehicles IVECO Trucks has developed a range of light, medium and heavy duty trucks for off road jobs. From mining, forestry and off road support, these vehicles are built to stand up to the toughest jobs. These off road vehicles include the Daily 4x4, Eurocargo 4x4 and Trakker. Bus & Coach Vehicles IVECO Trucks manufacturers a range of bus chassis, from low floor city, to school bus, luxury coach and mining, IVECO has a range w w w. i v e c o . c o m . a u
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I V E C O T r u c k s A u s tra l ia & C N H
Local engineering staff inspect Iveco vehicles on-line at CNH Industrial’s Dandenong facility.
of chassis built to suit a variety of client needs. These models include City, School/Charter, Mining and Coach. “The complexity that runs through the Dandenong plant is quite high with so many different models going through the same assembly line. This pushes us toward continuous improvement in order to be able to manage this level
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of complexity. Low volume, high variety production is a big challenge and we need to stay on top of that,” said Bozzola. Product Time to Client and Customisation With the level of customization and quality that the Company is capable of and delivers, one might think that there might be long wait times
au s t r a l i a
for product delivery. However, one of IVECO’s competitive advantages is their superior product time to client. “There are two critical advantages that we can offer to our clients through local manufacturing. The first is shorter lead time to our clients. Having the factory here with readily available components, mostly sourced locally, we are able to deliver a truck to a client in two to three months, compared to an imported truck, where the time to client could be six to nine months. Our second major advantage that we have is the customisation of our products,” explained Bozzola. Bozzola also went on to explain that the larger size of the Company’s products actually help protect their competitiveness: “The truck industry is actually quite different from the car industry in this regard. For one thing, the size of our products definitely differentiate us. This gives us a degree of protection from imported products because of the high import costs for similar products.” “Basically, for every truck we make, we build to order. We rarely see the same kind of truck go through our line twice in one year. Every single truck is something different, something special. This is only possible because we customise all the orders we receive locally. If you were to import trucks at this level of complexity and personalisation, the truck wouldn’t be sustainable. Having the plant here allows us to do that,” said Bozzola.
Company Information I n d u s tr y
Manufacturing hea d q u arter s
Dandenong South Victoria, Australia founded
1912 em p l o y ee s
1,000 reven u e
$500 Million p ro d u ct s / s ervice s
IVECO Trucks Australia manufactures and distributes light, medium and heavy commercial vehicles for the Australian road transport industry. Formerly International Harvester and International Trucks, the company has been part of Australia’s way of life since 1902. IVECO Trucks Australia is wholly owned by IVECO SpA which is part of the Fiat Group based in Turin, Italy.
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Holden New Zealand:
An Icon’s 60th Annive
See how Holden New Zealand is succeeding corporate culture. Written by: Laura Close Produced by: Camilo Sanchez
ersary
g with a change in
H o l d en N ew Z ea l an d
Holden New Zealand celebrates 60-year anniversary with state-of-the-art operations
I
t’s hard to imagine a major car company’s roots containing the manufacture of refrigerators. But that is indeed part of Holden New Zealand’s story, as well as the manufacture of car components like spark plugs, filters and exhaust systems. Its history is rich: Holden New Zealand’s first plant opened in January 1926 in Petone, with its assembly plant in Trentham opening several decades later in 1967. The company’s decision in 1990 to phase out local assembly of vehicles has guided it towards a focus on its country-wide import business, the 52
January 2015
dealer network and the sale of parts. As Holden celebrates 60 years in New Zealand and shares its vision for the future, GM Holden in Australia is working toward the phase out plan of manufacturing, the biggest shakeup of manufacturing in recent history. 60th Anniversary—Holden’s Here To Stay “The rationale around the celebration for our 60th is to highlight the achievements we’ve had over the last 60 years,” shared Jeff Murray, managing director, “but
au s t r a l i a
s.
it’s also an opportunity to re-educate the public that whilst manufacturing in Australia is shutting down, Holden in New Zealand is not. There has been a misunderstanding in regards to where the company fits going forward.” New Zealand experienced a similar manufacturing shift to that of Australia’s about 30 years ago. Murray wants New Zealand to know that Holden and the car industry are both past this particular point in their history and to not rule out the company’s future. “This year marks 60 years of
operating in New Zealand and we look forward to another 60 years,” said Murray. The company’s 60th anniversary celebration took place in November, and its staff celebrated the milestone in a big way. Holden had asked the people of New Zealand to share their stories of affiliations with the brand. The response was impressive, with Holden New Zealand receiving more than 1,500 submissions, both written pieces and video entries. To cap off the celebration, the company held a function recently with its dealer principals, close partners, clients w w w. h o l d e n . c o . n z
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a perfect fit
in every way Manufacturers want to sell genuine parts at competitive prices, and make a profit through their dealers. Dealers want to create customer loyalty by enabling repairers to fit genuine parts – and also make a profit. Nexus Aftermarket brings the wants and needs of both sides together perfectly. For over 21 years, we’ve been devising and delivering client-branded aftermarket solutions (such as Trade Clubs) for major vehicle manufacturers and franchised dealer networks. Our in-house strengths include the award-winning creativity and expertise you need to develop and design innovative, integrated marketing programmes, targeted dealer support material... whatever it takes, wherever it needs to go. Also integral to Nexus Aftermarket are bespoke, dedicated research and analysis, data support systems, account management, field management and dealer support. All to ensure that everything we do seamlessly becomes a natural extension of your operation. In every way, a perfect fit.
Aftermarket Call Jim Monaghan on +61 439 477 765 to find out more
supplier profile
Holden New Zealand
Manufacturers want to sell genuine parts at competitive prices, and make a profit through their dealers. Dealers want to create customer loyalty by enabling repairers to fit genuine parts – and also make a profit. Nexus Aftermarket brings the wants and needs of both sides together perfectly. We’re part of the White Clarke Group, leading providers of Commercial and Retail Finance, Leasing, Fleet Management, Wholesale Finance solutions and consulting services. And for over 21 years, we’ve been devising and delivering client-branded aftermarket solutions (such as Trade Clubs) across the world for numerous major vehicle manufacturers and franchised dealer networks. Our in-house strengths include the award-winning creativity and expertise you need to develop and design innovative, integrated marketing programmes, targeted dealer support material... whatever it takes, wherever it needs to go. Also integral to Nexus Aftermarket are bespoke, dedicated research and analysis, data support systems, account management, field management and dealer support. All to ensure that everything we do seamlessly becomes a natural extension of your operation. In every way, a perfect fit. Management: Jim Monaghan, Managing Director, Peter Elliston, Trade Programmes Manager Website: www.nexusaftermarket.com
H o l d en N ew Z ea l an d
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and motoring media, and the winner of the restored 1969 HT Monaro will be announced in December.
reviewing the footprint of our network to ensure our customer base is being catered to, which can only truly happen through the New National Sales Transition dealers themselves.” For The Dealer Network And while Holden New Zealand’s Holden New Zealand prides itself corporate identity will only look to get stronger in the next two to on working closely with the dealer three years, the company will also network. A collaborative approach is paramount for its success, so the continually be looking for ways to invest in the brand and business company makes sure that issues, through the dealer network. future programmes and potential opportunities are worked on closely Holden’s manufacturing and engine plants in Australia will close by both parties. “We do deem the way we interact by 2017, and will potentially cost the employees at these plants their jobs. with our network as a partnership,” Murray shared. “That is crucial, However, the company is adamant and an important pillar of the way that it will do all it can to redeploy we go to market. We understand a number of plant employees into that the success of this company other parts of its business. is effectively living and breathing “Although it’s a tough situation through our dealer network. When to be in, I guess the real winners we talk about what the future plans in the equation will be the public, are for the network, we’re constantly based on the product that will come
“Expansion is the key going forward,” Murray said. “We place very high importance on staff being engaged in our team interests and goals, throughout the shift in our company culture and makeup.” w w w. h o l d e n . c o . n z
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H o l d en N ew Z ea l an d to market in the next three to five years,” commented Murray. He shared that the company’s global portfolio continues to remain strong, and that there will be a wider breadth of product on the market once the manufacturing side of the company in Australia is phased out for good. Holden’s Supply Chain Just like their dealer network, Holden’s relationship with its suppliers is a critical partnership. “We really value the relationship we have with our suppliers. An example of that is Ceva, which manages our P&A warehouse
supplier profile
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next door. We treat the staff of that organisation similar to the way we treat the Holden team. They are part of the family and we both rely on the relationship that was developed over many, many years.” Investing With Cobalt Digital Marketing Recently, Holden New Zealand brought on US-based Cobalt Digital Marketing to manage its digital space. The platform is useful to consumers, giving the company a place to engage with their customers and to dealers, for several reasons. “It’s an end-to-end digital website
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The AA congratulates Holden for its 60th anniversary in New Zealand and is proud to have been a partner for the last 25 years. THE NEW ZEALAND AUTOMOBILE ASSOCIATION INCORPORATED
aa.co.nz
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solution for our dealer network to the point out where it involves not only the advertising of new and used cars but also as it relates to the advertising of service and parts,” Murray shared. “The dealers find it a valuable training tool for their staff.” The platform also manages the lead management process for dealers. If a consumer enquires about a specific type of vehicle, the sales manager or the dealer principal in that dealership is able to see who attended to that lead,
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H o l d en N ew Z ea l an d
au s t r a l i a
the way it was handled, the turnaround time and what the outcome was. What’s Next Currently, a number of vehicles are going through mid-year cycle model refreshers. Holden New Zealand will be focusing on SUVs and commercial vehicles, which are the company’s strongest sectors in its economy. “Expansion is the key going forward,” Murray said. “We place very high importance on staff being engaged in our team interests and goals, throughout the shift in our company culture and makeup. What we value and what we promote internally is that everyone has an equal say in the business, and we are open to new ideas and initiatives. It’s very much breaking down the levels of hierarchy in the organisation so there are no barriers to people sharing their views and thoughts with leaders in the company.” Even though Murray is about to head back across the Tasman to take up a new role at GM Holden in Australia, he predicts an even higher level of customer interest here in New Zealand with an even greater range of vehicles available in the Holden portfolio. Murray is also confident that Holden New Zealand will continue to maintain its strong relationships with its dealer network and suppliers which should auger well for Kiwi’s looking for that top quality product from its iconic brand.
Company Information I n d u s tr y
Manufacturing hea d q u arter s
Ellerslie Auckland, Australia founded
1954 em p l o y ee s
55 reven u e
$50 Million+ p ro d u ct s / s ervice s
Holden New Zealand is the sales subsidiary for General Motors, New Zealand. The car import and sales company started in New Zealand with the manufacture of cars, parts and even refrigerators, and has recently shifted its interests to focus on its dealer network.
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Verosol:
Verosol’s Commitmen Quality, Timely Produc
A global company with a European flair, Veroso
innovating window coverings for over five deca Written by: Laura Close Produced by: Camilo Sanchez
nt To cts
ol has been
ades.
V ero s o l
Stringent quality control processes Verosol Fabrics
V
erosol’s story starts with a famous Dutch shipbuilder. When Cornelis Verolme sailed into the New York Harbour in 1963, he was amazed by the skyscrapers. However, not by their grandeur, but by the glare coming off the hundreds of stories of windows. After further realising how difficult it must have been to keep the buildings cool in the summer and warm in the winter, Verolme set out to find a solution. This solution is the foundation for the modern-day Verosol. Verolme and his company are the innovators of metal-backed fabric, which when 64
January 2015
faced outwards, reflects heat and glare back outside the building. Currently each major city in Australia hosts a Verosol presence, and the company has recently began exporting its products to New Zealand. “We pride ourselves on being an innovative company. We’re the inventor of the metallisation process for fabrics. There’s a huge drive for us to continue to innovate,” said Managing Director Nicolas Rayer. Five-Day Turnaround With a strong commitment to quality and fast turnaround
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Advanced warehousing production facility Verosol Fabrics
times, Verosol has been able to engineer a system that allows their manufacturing process to despatch finished products within five days of an order being placed. All of Verosol’s products contain unique high performance fabrics that represent the benchmark in the industry. The company is committed to providing their customers with the highest quality products in the market, so each finished product is 100 percent tested and inspected. Although this process is labour intensive, it has aided the company in reaching a less than one percent return ratio.
“We used to have a 10 day turnaround, now we’ve changed it to 5 days,” shared Rayer. “Verosol incorporates a high level of planning into production and purchasing through comprehensive Bill of Materials managed through our ERP system. In addition, safety stock calculations along with commercial forecasting also contribute to the planning process, to ensure that stock is available to meet short term demands.” Another way Verosol is able to guarantee such a short turnaround time has been by w w w. v e r o s o l . c o m . a u
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V ero s o l increasing the level of inventory. The company also has a very flexible workforce in the factory that is able to work longer hours or move around shifts to dedicate the time needed to maintain their short turnaround promise. “We’re more reactive from a manufacturing standpoint,” said Rayer. “We have a good level of information processing going through between commercial staff and the factories. We have a seamless process from an order being entered to an order being manufactured and out the door.”
supplier profile
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Marketing Efforts Verosol has recently invested in several parts of the business to work towards a seamless experience for its customers and its employees. A new website and a focus on marketing research have been top priority for the company, with investment in 2015’s marketing increasing by 25 percent. The focus of this marketing push will be B2C channels and figuring out where they are missing out on end consumers. “We are currently doing research into B2B and B2C to identify gaps not only with our existing
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V ero s o l customers but also gaps in terms of geography: where we don’t have a representation via dealers and areas from where our next business is going to come,” explained Rayer. “This gives us some direction in regards to how we will then roll out the strategy of development for the next five years.” Continuous Improvement Verosol has several continuous improvement strategies in place that allow it to guarantee five-day
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turnaround and a high-quality product. Staff training and support is a high priority for the company. Working groups, regular meetings, continuous updates and both informal and formal staff reviews are all in place to make sure employees are performing to their capacity and are satisfied with the work environment. Time studies are conducted on manufacturing processes to ensure that a constant management of staff efficiency and proficiency is in place. This reflects through the entire supply chain via the construction of refined routes for calculation and cost visibility. Verosol has also developed policies and procedures that allow the organisation to systematically review the quality of its products, services and procedures. Some current review topics surround transportation, inventory safety stock, motion (people movements, travelling, etc.) and warranty claims. Perhaps most important to the company’s continuous
au s t r a l i a
Company Information I n d u s tr y
Manufacturing hea d q u arter s
Kingsgrove, NSW Australia Commercial Project: Office fitout of 400 Roller Blinds
founded
Toshiba, NSW Australia Verosol Fabrics
1963
improvement strategies is Verosol’s commitment to seeking out stakeholder feedback and market research.
em p l o y ee s
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Future Goals The company that continues to be on the forefront of innovation in its sector has high goals for the next five years. “I think the business will double its size in terms of revenue, with pretty much the same staff we have on today,” shared Rayer. “We’ll still be present in all of our locations. We’re also committed to building a brand new purposebuilt location with a larger building for our manufacturing facility and offices, as well as a showroom. It will be 30 to 40 percent larger in size to accommodate this doubling of growth.”
p ro d u ct s / s ervice s
Verosol was founded in 1963 when the famous Dutch shipbuilder Cornelius Verolme was encountered by the glare and heat off the skyscrapers visible from the New York Harbour. He created a process called metalisation, where metal is fused with fabric to create a way to deflect the heat and glare back outside. The global company has 100 employees in Australia, and a presence in every major city.
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Abit:
The Brazilian Te and Apparel Ind Association Written by: Assessoria ABIT | Produced by: Nayara Ferreira
extile ndustry 71
A b it
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lothing and textile industry is one of the world’s largest employers. Its high intensity in workmanship guarantees 1.6 million direct jobs in Brazil and, if we consider the indirect jobs and the income effect, the industry benefits about eight million Brazilians. This industry represents the productive force of 30 thousand companies, of all sizes, established throughout the national territory, which generate together revenue of USD 58 billion per year (2013 data). Textile and clothing sector in Brazil has featured on the world stage, not only for their professionalism, creativity and technology, but also for the dimensions of their textile park: it is the fifth largest textile industry in the world, the second largest producer of denim and the third in the production of knitwear. It is self-sufficient in the production of cotton, Brazil produces 9.8 billion pieces annually (of these, approximately 5.5 billion refer to
Abit headquaerters in SĂŁo Paulo
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International textile fair held in SĂŁo Paulo
clothing), being a world reference in beachwear, jeanswear and homewear. President of Abit, Rafael Cervone, believes that the macroeconomic figures in the industry serve as inspiration for the continuation of the struggle for its constant growth. “We are a big, potential productive chain. We are among the five largest in the world, with a park of machines and equipment with replacement cost equivalent to more than R$ 150 billion and more than 33 thousand companies throughout the Brazilian territory, proving that this sector is, more than anything, a strong national vocation.� The Brazilian Textile and Apparel Industry Association (Abit) was founded in 1957 and is one of the most important professional associations in the country. To meet all the demands of the textile chain, which includes the companies producing natural, artificial and synthetic fibers, wiring, ginners and weavings, even confection, Abit maintains a physical and intellectual structure to support and guidance its members. All activities carried out by the team of employees and consultants aim at supporting w w w. a b i t . o r g . b r
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A b it
Texbrasil in Fortaleza
“We are among the five largest in the world, with a park of machines and equipment with replacement cost equivalent to more than R$ 150 billion and more than 33 thousand companies throughout the Brazilian territory, proving that this sector is, more than anything, a strong national vocation.” – President of Abit, Rafael Cervone
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the sustainable development of companies in the sector, as well as defend its interests before governmental bodies and national and international institutions. With integrated work, Abit makes Brazilian textile branch a reference in technology and innovation on the world stage. Among the many initiatives conducted by this entity for the Brazilian textile/clothing sector, Abit recently presented a proposal for a Confection Competitive Tax Regime (RTCC) to the Government, with the aim of promoting the return of large production units of confections with scale and boost competitiveness. In the study, if the RTCC was deployed until 2025 this industry would create more 597,000 jobs and production would grow 117%. To this end, the current load of taxes that a confection pays today, on average of 18%, would be set at 5% for companies of all sizes. The Association has also captained and coordinated the launch of the Joint Parliamentary Front for the Development of the Textile and Clothing Industry, named “Jose Alencar�, in honor to the Vice President of the Republic late in 2011. The launch took place in Brasilia on April 5, 2011, and had the Association as one of the institutions members of the working group scheduled to guide the coordination of Front as most urgent demands and the more strategic issues, loading parliamentarians with statistical data and accompanying the coordinators at the hearings with authorities.
Company Information I n d u s tr y
Textile and Garment hea d q u arter s
SĂŁo Paulo - Brazil e s ta b l i s he d
1957 n u m b er o f mem b er s
5000 k e y Peo p l e
President: Rafael Cervone Superintendent Director: Fernando Pimentel
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A
ABAF:
The Bahian Association of Forest-Based Companies Written by: Wilson Andrade | Produced by: Nayara Ferreira
77
ABAF
T
he forest-based sector in Bahia came together ten years ago to create the Bahian Association of Forest-Based Companies (Associação Baiana das Empresas de Base Florestal-ABAF). It was the first step for a new position, which is consolidated every year, and its prime goal is to contribute so that the sector which it represents develops on sustainable bases, whether from an economic, environmental or social point of view. Ten years have passed and ABAF’s challenges are even greater, as the institution’s president, Sergio Borenstain explained. In addition to enhancing its own activities, arriving at a greater number of locations in a State with such an extensive territory, ABAF will have to be prepared for an expressive expansion in the sector, both with growth in the population and subsequent consumption and the increasingly widespread establishment of new industries. These have principally been transferred from Europe on account of Brazil’s natural competitive differentials, which
Aerial view
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January 2015
Credit Gleison Rezende
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Key People
President Sergio Borenstain
Eucalyptus
will undoubtedly have repercussions in Bahia. According to Borenstain, the forest sector has been experiencing an accelerated rise in the State in the last ten years. “This took place on account of the construction of the new Veracel factory in 2005, increasing Fibria’s (formerly Aracruz) production, which then installed its third production line, increasing both its own plantations and those of third parties, Suzano’s expansion and increased production at BSC”, the president identified. The increased production at these industries has consequently resulted in the expansion of plantations and creation of a number
Executive Director Wilson Andrade
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ABAF
Factory
of companies related to the sector. “The forest sector is much more than paper, cellulose and wood products. For example, Ferbasa is a ferro-alloy industry which directly depends on planting forests, and Papaiz has an extensive planted area in Bahia”, he exemplified. “We are now seeing the arrival of forestbased energy companies and a growth in agroforestry silvopasture developments. It is a new reality which demonstrates great signs of success”, the ABAF president commented. 80
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With sights set on a horizon ten years into the future, Borenstain believes that this rhythm of growth will further increase. “In the case of cellulose, major industries are coming to Latin America and Brazil. Bahia will definitely benefit”, he confirmed. “The planted tree industry is the future because it will be the base to respond to the demand for renewable and recyclable raw materials which do not harm the environment, biodiversity and human life”, Borenstain added. The sector grew by 2.6% in Bahia in 2012 and participated with w w w. abaf.org.br
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ABAF
Eucalyptus flower
Eucalyptus seedlings
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approximately 16% of the total of USD 11.5 billion of State exports, taking second place in importance on the export agenda and contributing with 49% (USD 1.7 billion) to form the State’s commercial balance of trade. Three of the ten largest Bahian exporters have been forest-based and ABAF associates for a number of years. The sector is also responsible for significant federal, state and municipal tax revenue, in the order of BRL1.1 billion. It generates approximately 320,000 direct, indirect and income-producing jobs, particularly outside the urban centres. The planted tree industry also produces expressive environmental benefits. Bahia currently has 617,000 hectares of planted forests, equivalent to approximately 10% of the Brazilian total and 1% of Bahian territory. Added to every planted forest is the maintenance or recovery of 430,000 hectares of preserved native forests, which is equivalent to saying that the sector preserves 0.7 hectares of forest for each hectare planted, which is much higher than that stipulated by environmental legislation. ABAF represents forest-based companies and their suppliers in the State. ABAF’s current associates are: Arcelor Mittal, BSC, Copener, Komatsu, Floryl, Fibria, Faz. Veredas do Arrojado, John Deere, Plantar, Ponsse, Ferbasa, Veracel, Suzano, JSL, Storaenso, Aepses, Emflors, Assosil, Lyptus and Bahia Produtos de Madeira.
Company Information name
The Bahian Association of Forest-Based Companies co u ntr y
Brazil hea d q u arter s
Salvador - Bahia e s ta b l i s he d
2004 n u m b er o f mem b er s
22
w w w. abaf.org.br
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Sustainability in
Ecuador’s paper mills and packaging industry
A 10 year-plus consolidation of the paper industry through top level solutions and decisions.
Written by: Rebecca Castrejon Produced by: Diego Pesantez Translation by: Rafael Tablado Interviewee: Jose Millan, CEO of Grupo Surpapel in Ecuador and Latin America
G r u p o S u r pa p e l
O Inside corrugated
ne of Ecuador’s leading companies is Grupo Surpapel, based in the paper recycling and manufacturing services business, including packaging, fiber collection, laminates and cardboard box production, as well as wastepaper collection for recycling, and paper and paperboard export/import operations.
paperboard manufacturing plant
Surpapel opened in 2001 in the paper commercialization trade. The company partnered with Grupo Palmar in 2006 to buy an important share of INCARPALM, Ecuador’s most innovative paperboard manufacturer. This joint venture produced equal growth in technological improvements and competitiveness, raising the standards domestically for the paper and cardboard industry. Once positioned as industry leaders, in 2009 Surpapel continued its expansion by acquiring PROCARSA from the Dole Food Company; the former had built a reputation for being a reliable source of corrugated fiberboard nationwide. Also, the installation of two new units for high quality paperboard printing placed them atop South America’s packaging sector. SURPAPELCORP came about as a secondary fiber paper mill with world-class technology, after partnering with a group whose specialty was paper manufacturing in Latin America. The joint venture began operations on October 18, 2010.
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m a n u fa c t u r i n g
In 2012, this subsidiary produced the first paper roll from 100 percent recycled elements in South America. A year later, REPAPERS recycling plant opened, as the company achieved consolidation by becoming GRUPO SURPAPEL. The inorganic and organic growth experienced by the corporation, providing specialized services in the paper and cardboard packaging manufacturing sector since more than a decade ago, has placed Surpapel along Ecuador’s elite companies. “Work is our motto, none of us come from an over-privileged family, we have done it all by ourselves. Our goal is to be successful, to keep a workforce of more than 1,000 individuals relying on our efforts,” stated Jose Millan, CEO for Grupo
Fabián Guerrero, Manager of Repapers; Óscar Illingworth, General Manager of PROCARSA; Santiago León, Coordinating Minister of Production, Employment and Competitiveness; Pedro Huerta, CEO of SURPAPELCORP; José Millán, CEO of Grupo SURPAPEL, and Xavier Abad, External Legal Counselor
Key People
Jose Millan CEO, Grupo Surpapel Millan is an industrial engineer who graduated from Universidad Autonoma de Occidente, in Cali, Colombia. He first worked for Smurfit Carton de Colombia for more than 10 years. Afterwards, he was hired by the visionary CARTOPEL group, based in Ecuador, where he worked for 10 years as plant manager, experiencing the company’s growth both domestically and abroad. After Costa Rica’s Grupo Mesalles invested in CARTOPEL, he joined the former for two years. During this time, Millan started his own entrepreneurship by opening an assembly line business in Ecuador, partnering with an export corporation, which worked for Barnett Corporation Pulp & Paper in paper sales and banana exports. In 2003, Millan and Euclides Palacios, owner of INCARPALM, partnered, and three years later SURPAPEL acquired INCARPALM. Millan witnessed SURPAPEL’s corporative growth before becoming the group’s CEO.
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Inside SURPAPELCORP facility for residual processing in inner Ecuador
Surpapel in Ecuador and Latin America, who has -in a way- been part of the group since 2006 as a partner for INCARPALM, which is now an affiliate to the corporation. Subsidiaries SURPAPEL staff
1. REPAPERS: Waste recycling facility, acquired in 2013. 2. SURPAPELCORP (SPC): High efficiency paper mill; lightweight paper specialist supplying other industries with a production capacity of 120,000 to 190,000 tons, annually. 3. PROCARSA: The group’s longest-running affiliate in Ecuador is a cardboard manufacturer 88
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Recycled materials from REPAPERS subsidiary at a trade expo
by trade, the largest in the sector, nationwide. Procarsa first opened on March 24, 1965, and was purchased by Surpapel in October, 2009. After this transaction, Procarsa went through improvements and technology upgrades, becoming country’s lowest-cost corrugated fiberboard manufacturer. Procarsa is currently in compliance with ISO 9000 and BASC, following lean manufacturing guidelines. 4. INCARPALM: The corrugated packaging company opened in 2004 on a $25 million investment, with most shares held by Grupo Surpapel since March of that same year. Their five printing presses’ output averages 13,000 tons per month.
Recycling process in Grupo Surpapel
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G r u p o S u r pa p e l Global Presence Grupo Surpapel’s operations are not limited to Ecuadorian soil; the company has affiliates and partnerships in the Dominican Republic, Colombia, Peru and Argentina, besides exporting to other markets worldwide. Supply Chain
Paper recycling process demonstration
Surpapel’s operations are based on their facilities’ optimized sustainability and the recycled material’s service life, operating in compliance with the company’s social promise and its
m a n u fa c t u r i n g
commitment to the environment. Group CEO Jose Millan’s supply chain management follows Peter M. Senge’s business principles. Senge, an engineer, is also an entrepreneur and author of titles such as The Fifth Discipline, developing the notion of organization as a system for intelligent businesses. “Both our suppliers and clients share the same commitment toward proper supply chains. We adhere to this process with shared values and views,” said the CEO. The group is generating synergy among suppliers, partners and clients as procedures are optimized, becoming more competitive and achieving growth. “Our goal during this year was adding most of our clientele and suppliers within this value chain scheme,” added Millan.
“It’s our desire to become a benchmarking, sustainable development in our country, in our region and worldwide” – Jose Millan, CEO, Grupo Surpapel in Ecuador and Latin America
Sustainability “The most important part in our business scheme is sustainable development,” said Millan. The executive explained that the corporation’s growth plans include integrating sustainability as organizational culture inside and outside the corporation, in order to ease its adaptation into business operations. The company relies on four pillars for sustainable development: w w w. g r u p o s u r p a p e l . c o m
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Automation inside PROCARSA facility
1. Sustainability-friendly working environment 2. Organizational culture based on environmental responsibility 3. Social equity 4. Sustainable economy
Construction at the
Besides being in compliance with regulations under State surveillance, Grupo Surpael goes some steps farther by acknowledging and implying sustainability as a culture in just about every aspect of the value and supply chains, from obtaining raw material to the end consumer.
upcoming recycling
“It’s our desire to become a benchmarking, sustainable development in our country, in our region and worldwide. We are modifying
facility
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our production processes to become cleaner procedures, we want to provide the world with a responsible way of conducting business, so future generations grow up within a healthier environment,” Millan expressed. Goals for 2015
Company Information name
Grupo Surpapel I n d u s tr y
Surpapelcorp mills expect a paperboard production outcome of 130,000 tons for late 2015; this figure will become 90 percent of Procarsa’s production for this year. “This will ensure a lower cost for corrugated packaging while we become even more competitive,” said Millan.
“Our goal during this year was adding most of our clientele and suppliers within this value chain scheme”
Paper and corrugated paperboard and packaging design, manufacturing, commercialization; corrugated packaging printing hea d q u arter s
Guayaquil, Guayas, Ecuador founded
2001 em p l o y ee s
1,000 reven u e
USD $230 million we b s ite
www.gruposurpapel.com
– Jose Millan, CEO, Grupo Surpapel in Ecuador and Latin America
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50 Years of World Class Equipment for Agriculture CNH Mexico implements global standards to manufacture, distribute and export products that meet farming needs..
Written by: Mateo Rafael Tablado Interviewed and translated by: Rebecca D. Castrejon Produced by: Diego Pesantez Interviewee: Thierry Mahe, CEO of CNH Mexico
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T
he beginning of CNH Mexico is traced back 50 years, when entrepreneurship met agricultural productivity. The producer and assembler of agriculture tractors began operations in 1981 as an initiative of the Federal Government in collaboration with Ford Motor Company. During a privatization period in Mexico from 1988 to 1994, Grupo QUIMMCO acquired 60 percent of Fabrica de Tractores Agricolas. In a parallel event, FIAT acquired Ford New Holland and their industrial activity in the manufacture of tractors. By 1993 the acquisition rebranded with the name New Holland NV. After a merger of New Holland and Case tractors, CNH Global NV was formed, and by 2011
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FIAT became the third participant of this fusion. The company employs more than a thousand workers at its production plant in Queretaro (Mexico) for the manufacture and supply of tractor parts. CNH Mexico also maintains its own distribution network with in-house funds. “We have suitable products that will satisfy the needs of the local market,� said Thierry Mahe, CEO of CNH Mexico in regards to the longevity of the company. For the past five years, Mahe has been leading CNH Industrial off-road vehicle operations in Mexico. Mahe is a mechanical engineer graduated from Leeds Metropolitan University in England, his additional studies include an MBA in finance from Ecole de Management
Key People
Thierry Mahe CEO of CNH Mexico Mahe is a mechanical engineer graduated from Leeds Metropolitan University in England, his additional studies include an MBA in finance from Ecole de Management de Normandie. He has 25 years of experience and has been working with FIAT since 2005. He speaks five languages; this is one of his many abilities that have granted Mahe opportunities all over the world.
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supplier profile
Sistemas Automotrices de México (SISAMEX) Sistemas Automotrices de México (SISAMEX) ) was founded in 1975, is a co-investment of Grupo QUIMMCO and Meritor, Inc. It has 3 manufacturing sites; 2 located in Nuevo Leon and 1 in Jalisco. In SISAMEX we are a world-class manufacturer of automotive components for commercial and off-highway vehicles. In six manufacturing business units we manufacture axles, brakes, drive shafts, and related components. 1900 employees work at these facilities. Our process capabilities include high precision machining, heat treatment, welding and assembly. We supply products to customers such as John Deere, CNH Global, Caterpillar, Magna, Detroit Diesel, Daimler, and through Meritor, to major original equipment manufacturers like International, Daimler Trucks, Kenworth, Mercedes-Benz, Dina. In our company, innovation means creating ideas that will transform into products, processes and services with high market acceptance. Our goal is to visualize, develop, implement and commercialize opportunities. With this objective in mind, we recently opened our Human and Technology Development Center (CDTH). This new facility is a key tool for innovation, technological research and personnel training, that will not only help strengthen our company but also shape a better country by promoting the development of the domestic industry. With over 80,000 sq. ft. the CDTH holds 7 labs focused on development, optimization and validation of products and processes intended for the commercial and heavy vehicle industry in Mexico. Simulation and design tools are supported by over 40 researchers and technicians. We are a recognized socially responsible company. We know the talent of our people is one of our competitive advantages; this is why we constantly promote their personal and professional development.
Visite nuestra página web: www.sisamex.com.mx
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de Normandie. He has 25 years of managing experience and has been working with FIAT since 2005. Equipment that Meets Agriculture Needs CNH’s catalog is defined by considering customers’ needs, from tractors with plow attachments, to foragers, harvesters, spreaders, and equipment for other farming tasks. Due to the company’s high production quality, the manufacturing and sales volume has to be large in order for them to be profitable. As a consequence, CNH has successfully exported equipment to more than 30 countries. The operation in Mexico includes machining, pre-assembly and metal-cutting processes as well as pressing, welding and mounting of products. The company also has a self-sufficient, in-country marketing department and distribution network.
Farm tractor New Holland
“We are leaders in this market because of the evolution of our products, these being closer to the customers’ needs,” said Mahe. Product Adaptability CNH Mexico focuses on the production of industrial machinery and off-road vehicles by considering factors such as use, performance, expected productivity and durability. w w w. c n h m e x i c o . c o m . m x
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Lubricants for Professionals Advanced lubricants for optimal performance AKCELA lubricants have been developed using the most advanced technologies available today to ensure optimal performance and reliability for CASE IH machines, even under the most severe operating conditions. The AKCELA product line includes: • Engine oils • Brake fluids
• Transmission oils • Grease
• Hydraulic oils • Coolants/Antifreeze
PETRONAS is a world leader in fluids and lubricants technology for agricultural machinery., With extensive field and laboratory evaluations in collaboration with CASE IH, we developed the most effective lubricant solutions for CASE IH machines. This is why AKCELA lubricants and functional fluids are the only ones certified by CASE IH and specified for every CASE IH machine, making it always the right choice. PL NA Mexico—for Mexico Viscosity Oil Co.—for USA & Canada Wholly-owned subsidiaries of PETRONAS 600 Joliet Road, Suite H • Willowbrook, IL 60527 • (630) 850-4000
AKCELA lubricants are exclusively distributed by CASE IH and CASE Construction dealers
www.pli-petronas.com/mx-es
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The Company’s tractors are now more complex in terms of the options they can offer, as well as the field of work and purpose for which they are intended, including features such as GPS systems and field adaptability. “A brand with good products but without a strong distribution network can not operate; products and distribution are equal in importance,” said Mahe.
In the manufacturing process of New Holland machinery
Suppliers that Raise Standards CNH Mexico has adopted the World Class Manufacturing system from its Italian corporate entity, FIAT, which consists of technical and management principles, establishing high levels of quality and productivity in the production of offhighway vehicles.
“A brand with good products but without a strong distribution network, can not operate; products and distribution are equal in importance” – Thierry Mahe, CEO of CNH Mexico w w w. c n h m e x i c o . c o m . m x
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Always the Right Choice Advanced lubricants for optimal performance AMBRA lubricants have been developed using the most advanced technologies available today to ensure optimal performance and reliability for NEW HOLLAND machines, even under the most severe operating conditions. The AMBRA product line includes: • Engine oils • Brake fluids
• Transmission oils • Grease
• Hydraulic oils • Coolants/Antifreeze
PETRONAS is a world leader in fluids and lubricants technology for agricultural machinery. With extensive field and laboratory evaluations in collaboration with NEW HOLLAND, we developed the most effective lubricant solutions for NEW HOLLAND machines. This is why AMBRA lubricants and functional fluids are the only ones certified by NEW HOLLAND and specified for every NEW HOLLAND machine, making it always the right choice. PL NA Mexico—for Mexico Viscosity Oil Co.—for USA & Canada Wholly-owned subsidiaries of PETRONAS 600 Joliet Road, Suite H • Willowbrook, IL 60527 • (630) 850-4000
AMBRA lubricants are exclusively distributed by NEW HOLLAND and NEW HOLLAND Construction dealers
www.pli-petronas.com/mx-es
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La t i n A m e r i c a
“The role of our suppliers has been key, we have opened our doors to hear their innovative ideas in the field of technology and our overall evolution,” said the CEO. Innovating Production All technological developments we see in CNH tractors respond to factors beyond productivity, such as: Quality in the field thanks
1. New tractors have a 99 percent reduction of pollutant emissions thanks to the introduction of Tier 4 engines, with comparable standards to those used in the United States. 2. Vehicles designed to enhance the driving experience of the operator. An example of these features is the optimization of productivity depending on the process. 3. Automation / Robotics: Tractors and machinery capable of adapting to the land in real time. These advances are projected to increase productivity by 15 to 20 percent.
to CNH Mexico
“There is a fairly strong modernization in the supply chain and we are expecting an interesting growth in the coming years,” said Mahe.
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Environmental Awareness As a “Socially Responsible Company”, CNH compiles with certificates such as ISO 14001; but its most important contribution is the aforementioned reduction of pollutants in vehicles produced by CNH Industrial, which has gone from a reduction of 70 percent to 99 percent over the last two years.
“We have a larger collaboration with the environment since the introduction of our greener vehicles,”
CASE Tractors, one of CNH’s brands
said the CEO.
supplier profile
PPG Mexico
PPG industries, established 1883, Pittsburgh, USA, is the worldwide leader in paints, coatings, specialized products, glass and fiber glass innovation, manufacturing and distribution. It began operations in México 60 years ago and is now consolidated as a key company in Mexico’s growing. PPG is formed by 5 SBU’s: Automotive OEM, Automotive Refinish, Packaging, Industrial coatings and Protective and Marine Coatings. Website: www.ppg.com
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Celebrating 50 years of CNH Mexico
C N H M e x ico
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Future Plans: A Greater Global Presence CNH Mexico is looking to expand its products and services to existing customers, as well as increase exports. In order to increase exports to 50 countries, the company is planning to elevate its production quota to 18,000 tractors per year within the next two years. “This company has evolved with globalization challenges and stronger difficulties each day, and now we are prepared to face them,” said Mahe.
“We are leaders in this market because of the
Company Information name
CNH Mexico I n d u s tr y
Tractors and farm machinery hea d q u arter s
Queretaro, Queretaro, Mexico founded
1964 under the name “Ford Tractores Agricolas” em p l o y ee s
1,200
evolution of our products, these being closer to the
reven u e
USD $500 million we b s ite
www.cnhmexico.com.mx
customers’ needs” – Thierry Mahe, CEO of CNH Mexico
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Leading supplier for the automotive industry
“Our vision of fitting at least one Furukawa Mexico product in every car in the Americas” Written by: Rebecca Castrejon Produced by: Diego Pesantez Translation by: Rafael Tablado Interviewee: Manuel Euyoqui, CFO
F u r u k awa M é x ico , S . A . d e C . V.
F
urukawa Mexico was launched on September 9, 1997, in the border city of Mexicali, Baja California’s state capital. Since operations began on April 22, 1998, FURUKAWA has become an outstanding supplier for airbag and fuse box materials, due to the company’s quality management, and also for emphasizing in worker safety, the strength of their machinery, and rate of waste reduction in their supply chain. As an affiliate of Japan’s Furukawa Electric Company, the Mexican manufacturing branch built a name for itself through world class quality standards for their electrical devices production under ISO/TS 16949:2002 standards, fulfilling a need in the automotive industry.
The company has also diversified its portfolio, becoming an important supplier for brands in the electric and auto industry. Its clients currently include Honda, Toyota, General Motors, Saturn and Susuki, as well as for manufacturing companies like Nexteer Automotive and Delphi/ Packard. FURUKAWA’s main product output includes airbag connections, fuse boxes, wire harnesses, terminals, optical fiber, high voltage wiring for solar energy supply, heat spreaders for control panels, and other parts for car manufacturing.
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“The company first opened in San Jose, California; we were in charge of the moving process all the way to Mexicali. The manufacturing plant operation began in 1997 and we’ve kept growing steadily ever since,” says Manuel Euyoqui, CFO for FURUKAWA. Euyoqui, an accountant, has served at Furukawa for 17 years. He currently oversees the company’s financial endeavors in Mexico and American Furukawa, the company’s branch in the U.S. “Innovating together” Innovation is an essential part of Furukawa companies’ DNA worldwide; their “bound to innovate” motto is a call to action for FURUKAWA and their branches to deliver brand-new solutions to the sector. Their latest tasks involve development of different equipment, such as
Key People
Manuel Euyoqui CFO Euyoqui is an accountant, graduated from UABC (Baja California Authonomus University) in 1987. He also earned a Master’s in Corporative Finance in 1997 on behalf of CETYS university (Centro de EnseñanzaTecnico Y Superior, also in Baja California). He became Head of Accounting at Seagate Technology, a position he held until 1998, when he became hired by Furukawa Mexico as controller. His professional activities include being President of the business support committee for Colegio de ContadoresPublicos de Mexicali, A.C. (nonprofit local accountant’s association); and treasurer for the Asociacion de Maquiladoras de Mexicali, A.C. (non-profit local assembly-line plants association).
Steering angle sensor
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F u r u k awa M ĂŠ x ico , S . A . d e C . V.
Furukawa on the globe
FURUKAWA, a leading provider for the
parts for ion-lithium batteries for electric cars, mobile phone antennas, optical fiber material, and other supplies for electric power. Additionally, in an effort to keep up with competition, increase revenue and achieve diversification, new products are about to be developed and marketed during the next few years.
automotive industry
“Furukawa is constantly innovating by developing new products and materials for the sector; this activity has had an important impact on society, since our company keeps launching high-tech products,� Euyoqui said.
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The human resource of FURUKAWA
Main competitors After surviving the conditions of a struggling market at its lowest points, such as a 1997 economic crisis, FURUKAWA Mexuci consolidated its operations both inwards and outwards by increasing the company’s presence in the domestic automotive market and by hiring a domestic staff for management positions. “Our Management Staff averages 15-year seniority in the company, is very stable, and most members are Mexican. There are only three Japanese nationals working here with us: the president and the professionals in charge of quality assurance and continual improvement,” said Euyoqui.
“Our vision is to become one of our country’s most important companies and one of Furukawa Electric most productive affiliates outside of Japan” – Manuel Euyoqui, CFO
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F u r u k awa M é x ico , S . A . d e C . V. In recent days, Furukawa Mexico has found itself in a state of constant growth, transforming the brand via vertical integration up to 90 percent in some products. Their latest accomplishments include: Manuel Euyoqui showing regional recognition
• Inclusion of high value added products • Design for own equipment • Increase in global competitiveness as an outcome from productive innovation • Manufacturing own components “We compete among affiliate companies globally:
Ma n u f a c t u r i n g
our branches in Philippines, Thailand, Malaysia, and beyond produce these same items. The innovations developed in recent years provide us with a competitive edge,” Euyoqui added. Some of FURUWKAWA MEXICO certifications are: • OHSAS 18001 • ISO/TS 16949:2002 • ISO 140001:2004 Environmental policies
Manuel Euyoqui and Carrie Duncan within the
The company has been certified for complying with environmental awareness standards. One of the three certifications received by Furukawa Mexico is ISO 140001:2004, covering operation processes and domestic compliance laws in environmental matters; they also comply with their clients’ and other requirements and laws regarding the environment.
premises of Furukawa Mexico
“Besides being formally certified, as a company we are already into reuse, recycling, waste reduction, energy saving, water saving and paperless processes, which lead to a better environment,” said Euyoqui. HR management Personnel management has brought nothing w w w. f u r m e x . c o m
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F u r u k awa M é x ico , S . A . d e C . V. but the best results. The 2,000 workers are internally considered “associates” and receive constant training to fulfill FURUKAWA’s best manufacturing practices. Perks provided by the company include recreational activities both in and out of the plant’s premises. Junction and relay boxes
“There are training programs at every level in the company, since staff with improved skills brings a better ROI,” said Euyoqui. Business partners FURUKAWA Mexico suppliers comply with every
Ma n u f a c t u r i n g
requirement from the FENA APD (Furukawa Electric North America - Automotive Products Division) suppliers’ manual, guaranteeing quality and safety with every single product in their supply chain. Most of the strategic partners have witnessed the company’s growth encompassing more than two decades, since they first established in San Jose, California. “Our commitment to suppliers is a win-win model, mainly in FURUKAWA products which are made with copper and resins. When the economy has gone through a difficult period, most suppliers have been supportive and able to understand different situations; they have been certified for quality control purposes, thus strengthening our supply chain; they have displayed our mutual commitment to price, delivery and quality,” added Euyoqui.
Connectors FURUKAWA
Harness
Furukawa’s other 30 affiliates around the world are also strategic partners. In-house experiences and other exchanges make way for data sharing, manufacture improvements and better design practices. Furukawa Electric Group organizes periodic meet-ups with team members from all around the world, for the purpose of sharing information and updating affiliates about the brand’s most recent achievements. FURUKAWA was in charge of presenting the best practices for airbag connections during the last year, providing knowledge and data to engineers and executives w w w. f u r m e x . c o m
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Products for relay boxes “wire harness”
from Furukawa companies worldwide. “This is a growing experience as a group, able to improve Furukawa Electric’s strength,” he said. Headquarters of FURUKAWA
Global expansion
in Mexicali, México
FURUKAWA Mexico is part of a global enterprise exporting more than 80 percent of its production to the United States, especially to Ohio and Michigan where Honda, Toyota and GM have manufacturing plants. Exports to Latin America head to Brazil and Argentina. FURUKAWA Mexico products are also exported to the Czech Republic, Japan, and China, and their business dealings reach all the way into South Africa.
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Company Information N ame
Furukawa Mexico, S.A. de C.V. I n d u s tr y
Manufacture of electrical auto parts hea d q u arter s
Mexicali, Baja California, Mexico
Employees show their training certificate
“We are very dedicated to strengthen our presence in South America, which is one of our most important markets considering our mission of fitting at least one Furukawa Mexico product in every car in the Americas,” said Euyoqui about regional growth. Currently one out of every five cars worldwide works with a part manufactured by Furukawa Mexico.
founded
1997 em p l o y ee s
2000 we b s ite
www.furmex.com
“We are dedicated to strengthen our presence in South America, one of our most important markets, considering our mission of fitting one Furukawa Mexico product in every car in the Americas” – Manuel Euyoqui, CFO w w w. f u r m e x . c o m
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