Who Will Win the Driverless race?

Continuous innovation: the importance of looking to the future

top tips for Managing safety

eXpeRt anaLysis: 5 key takeaWays for manufacturers

w w w . m a n u f a c t u r i n g g l o b a l . c o m

O c t o b e r 2 0 1 4

http://www.reassuringlyinexpensive.co.za

3

e d i t o r ’ s c o m m e n t

Abigail PhillipsEditor

abigail.phillips@wdmgroup.com

T h i s i s s u e o f M a n u fac T u r i n g Global is all about a new era for the industry. our cover feature this month focuses on driverless vehicles and who will win the ultimate prize of being the first company to launch a truly driverless car. From Google to Audi, we take a look at how the autonomous phenomenon is going to change the face of automotive manufacturing forever.

And talking of a new era, we also look towards india and listen to what prime minister narendra modi has planned for the country. At the end of september modi hosted an event and subsequent campaign called made in india, the aim of which being to promote india as the world’s largest manufacturing hub, a title previously held by china.

Also in this issue we discuss how to manage apprenticeships, give top tips for rolling out an effective health and safety strategy and go behind the scenes at Boeing.

Enjoy the issue!

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CONTENTS

5

FEATURES

LeadershipIs it India’s time to shine?

TechnologyAUDI vs. GOOGLE: Who will win the Driverless Race?

LeanContinuous innovation at Boeing leads to sustained success in a highly competitive industry

People & SkillsHow to manage apprentices in the manufacturing sector

Ways to Build a World Class Manufacturing Safety Strategy

TOP 102014

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CD0023_2011_E-Series_African-Business-Review_210x297mm_SA-Tel_Fv.indd 1 10/11/2011 14:43

CONTENTS

7

Company ProfilesLATIN AMERICA

38 Indurama

48 AFCP

AUSTRALIA

56 Rhino Tanks

BRAZIL

64 Anjo Tintas

78 Soletrol

88 Teksid

56

48

64

38Indurama AFCP

Anjo Tintas

Rhino Tanks

78Soletrol

LeaDershiPLeaDershiP

Is It IndIa’s tIme to shIne?

99

W r i t t e n b y : A b i g A i l Ph i lli Ps

Is It IndIa’s tIme to shIne?

1 0 o c t o b e r 2 0 1 4

published the event live across india

and to diplomatic missions abroad in

a mid to prove that labour intensive

manufacturing could blossom in

india. the slick campaign also

came complete with a website and

logo depicting a prowling lion, and

is as much an advertisement as a

promise to streamline bureaucracy

and become more investor friendly.

“the whole world is ready to come

fLankeD By soMe of india’s

wealthiest businessmen, Prime

minister narendra modi launched

a brand new marketing campaign

on september 25 entitled ‘made

in india’ to entice investment and

promote the nation as the world’s

next cheap labour economy.

modi gathered together hundreds

of diplomats, business leaders,

journalists and ministers and

India’s Prime Minister, Modi, speaks passionately about the country’s manufacturing potential

LeaDershiP

i s i t i n d i A ’ s t i m e t o s h i n e ?

1 1

here,” modi said during the event.

he portrayed india as offering

democratic values, a demographic

dividend of a growing and

youthful population and strong

demand. “if there is any country

in the world where all these three

things are present, it is india.”

An abundant workforceone thing india certainly has going for

it is a growing population – 1.2 billion

and counting. in fact, india needs

to create lots of jobs - perhaps one

million additional ones a month - if it

is to employ its booming population.

one speaker at the event suggested

that 90 million manufacturing jobs

could be created in india over the

next decade alone, which is good

news for the country that will see

some 13 million young people

join the workforce each year.

there have been recent signs

that the indian economy is picking

up, however growth rates remain

far below the eight percent levels

achieved over a decade until growth

started slumping two years ago.

For many indian’s a full-time job is

still unachievable, more than 700

million people in the country still

live in poverty and its infrastructure

is badly in need of updating.

since becoming prime minister

four months ago, modi has been

relentlessly promoting india as

the world’s next manufacturing

powerhouse - a title long held

by china, which is now growing

wealthier and working towards

“If there is any country in the world where all these three things are present, it is India”

1 2 o c t o b e r 2 0 1 4

becoming a consumer economy.

A stronger manufacturing sector

could help in a host of other ways,

suggested speakers, linking india

into global supply chains, boosting

exports, helping to reduce the

current-account deficit and so on.

And modi himself echoed this

sentiment, “i want indian companies

to become multinational and to

expand their reach to various parts

of the world,” he said, just hours

“I want Indian

companies to become

multinational and to

expand their reach

to various parts

of the world”

Modi would like to see productive investment in India’s manufacturing industry that would allow the country’s economy thrive

LeaDershiP

1 3

i s i t i n d i A ’ s t i m e t o s h i n e ?

before departing for the United states

where he and President Barack

obama will meet over an agenda that

includes boosting business ties.

India needs to boost education and infrastructuremodi means business, that is clear

to see, however he is also realistic

about the need for india to develop

if it is to become the global nation

he envisions. he spoke of an urgent

need for skills development as far too

many of india’s youngsters are poorly

prepared for globally competitive

work and identified 21 critical areas

for industrial development. he spelt

out how infrastructure would improve

and emphasised the need to make

india a far easier place to do business

by scrapping red tape and oppressive

rules. “here is a government that is

dedicated to development,” said modi.

Businesses leaders praised

the make in india campaign, with

tycoons including reliance industries

chairman mukesh Ambani and tata

Group boss cyrus mistry attending

the launch event alongside modi.

they urged his government to cut

red tape and simplify the taxation

regime for companies. “What is being

launched today is actually going to be

the next growth driver for india,” said

icici Bank ceo chanda Kochhar.

to conclude, essentially modi

wants to build confidence and trust,

to make india a less hostile place for

investors, both local and foreign and

to boost the manufacturing sector

dramatically to bring investment and

growth to the country – an honorable

and ambitious campaign.

Skills development is key to India’s success

auDi vs. googLe: who will win the Driverless race?Written by: AbigAil PhilliPs

TechnoLogy

1 51 5

1 6 o c t o b e r 2 0 1 4

DriverLess cars have become synonymous with Google.

the internet behemoth has been

developing autonomous vehicles since

2005 and in 2014 launched its latest

prototype, which had neither steering

wheels nor pedals. Google seemed

to be leading the sector; however

in the past month car manufacturer

Audi has taken strides that could see

it overtake the technology giant.

on tuesday 23rd september, Audi

announced that it had become the first

automaker to receive a permit from the

state government to test self-driving

cars on california’s public roads.

Audi’s permit was granted under state

regulations that went into effect the

same day. does this mean the luxury

German brand could overtake Google

and become the first manufacturer

of a vehicle that can drive itself? Yes

and no, said John rosevear, writing

for motley Fool, “Audi and Google

aren’t really playing the same game.

Google’s self-driving experiments

are a fascinating side venture for a

famously smart company, but Audi’s

efforts are grimly serious”, he says

Google’s vision is one focused

very much on the future of driving - a

future in which road traffic accidents

and congestion become much less

common. its latest prototype is a small

and bug-like vehicle with no pedals

or even a steering wheel – it’s a totally

new concept for driving. on the flip

side Audi is focused more on creating

a self-driving vehicle that looks very

much like its current models - its end

goal being to outpace the competition

by introducing self-drive elements,

rather then utterly disrupt the sector.

So who is more likely to win the driverless race? in truth, the first driverless car to come

Google still leads the way when it comes to disrupting the way we drive now and in the future

TechnoLogy

W h o W i l l W i n t h e d r i v e r l e s s r A c e ?

1 7

to market will probably look very

different from Google’s prototype and

more like the vehicles we are used to

seeing on our roads daily already. like

many of the technological advances

that have been introduced to the

automotive manufacturing sector in

the past, the battle over self-driving

cars will most likely play out in the

luxury car market. Before we see a

fully autonomous vehicle hit our roads,

we will see driverless features added

to luxury vehicles already in existence.

in fact, driverless feature are

already making an appearance.

many automakers have already

introduced features that incorporate

technology developed as part of the

research into self-driving cars. they

include systems that help guide you

into tight parking spaces, keep you

at a set distance from other cars on

the highway, and warn you if you’re

about to hit an unseen object.

last year, mercedes-Benz went

even further, introducing the first

car that can drive itself, if only

occasionally. the new-for-2014

Google’s latest driverless prototype doesn’t have a steering wheel or pedals

1 8 o c t o b e r 2 0 1 4

mercedes-Benz s-class sedan

includes a suite of features called

‘intelligent drive’. Under certain

limited conditions - stop-and-go

highway traffic, for instance -

the intelligent drive system can

accelerate, brake, and steer for the

driver, up to speeds of 37 mph.

it’s far from a true self-driving

system - the driver still must pay

attention and be ready to take over.

however, it’s an impressive feature that

no other automaker has implemented;

in the high-end luxury car market,

that matters a lot: U.s. sales of the

s-class are up 107 percent so far

this year. no wonder Audi is hoping

to win its slice of the sector.

The luxury car market takes pole positionWhile Google is winning in the Pr

stakes, it’s the likes of mercedes

that other auto manufacturers are

Mercedes’ S-Class already comes equipped with driverless elements

TechnoLogy

W h o W i l l W i n t h e d r i v e r l e s s r A c e ?

1 9

keeping their eyes on. the success

of its self-driving features is causing

other manufacturers to bring their

own autonomous ideas to market.

earlier this month, General

motors ceo mary Barra announced

that the automaker’s ‘super cruise’

system would come to market with the

2017 cadillac, while BmW is expected

to bring limited self-driving capabilities

to some of its models soon in the form

of its ‘ActiveAssist’ system. nissan has

also promised advances self-driving

capabilities in the near future. its latest

Q50 sedan already includes a feature

called ‘Active lane control’, which can

briefly take control of the car’s steering

to nudge it back on course if you drift

out of your lane on the highway.

in short, Audi’s latest move is not

designed to beat Google when it

comes to developing a new way

of driving, but is about keeping up

with and likely surpassing other

luxury automakers’ attempts

to make steps in the field.

Google doesn’t need to be

worried. its bold ideas and fierce

ambition set it head and shoulders

above the rest when it comes

to product development and

disrupting the status quo.

Luxury automakers such as Audi will take the lead with driverless features

‘Audi’s latest move is about surpassing other automakers’ attempts in the field’

2 0 o c t o b e r 2 0 1 4

Continuous innovation at Boeing leads to sustained success in a

highly competitive industry

Lean

2 1

Continuous innovation at Boeing leads to sustained success in a

highly competitive industryW r i t t e n b y : a B I g a I l p h I l I p s

2 2 o c t o b e r 2 0 1 4

Lean ManufacTuring has helped countless corporations and

small manufacturing companies save

time, reduce waste and increase

efficiency. lean best practice

and continuous improvement has

transformed the manufacturing sector,

however the introduction of innovation

can take good results and turn them

into excellent ones.

Boeing is one company that has

truly embedded innovation within

its culture and the results have

been staggering. in 1998 it took

Boeing 71 days to assemble its 777

aircraft – today it takes just 37. By

introducing a grass roots culture

of innovation, the aerospace giant

also managed to shave an incredible

nine days off the final assembly of

its 737, going from 20 days to 11.

this level of time saving takes

a lot of dedication from top tier

executives down to workers on the

ground – its not about implementing

a process, rather about changing the

company culture. so how did Boeing

do it? the company is dedicated to

looking outside the box to solve any

production problem and bottleneck it

comes across and is willing to explore

even far-fetched ideas and concepts.

innovation teams meet regularly to

discuss these ideas until they find

a solution that makes sense and

importantly, persist until each problem

is solved.

Ultimately, Boeing encourages

each and every employee to be

creative, disciplined and persistent.

‘Ultimately, Boeing encourages each and every employee to be creative, disciplined and persistent’

Boeing assembly line in operation

Lean

2 3

h e A d l i n e

innovation is at the heart of what

Boeing does – every decision

is geared towards building a

sustainable future for the brand.

How Boeing saves time using continuous innovationAn example of how Boeing saves

time and thus money can be seen

when you look at the development

of the 757 assembly line. Plant

engineers struggled with a time-

consuming bottleneck due to having

to lift the plane’s heavy seats up to its

doorway and inside for installation.

once the seats came to the plant,

they were fitted with wheels, lifted

by an overhead crane to the airplane

doorway, unloaded, rolled into the

cabin, divested of their wheels and

finally installed. the process from

beginning to end took 12 hours.

members of Boeing’s ‘moonshine

shop’ – a team of people tasked with

developing ideas in late night thinking

sessions – began searching for a more

effective process. they asked the

question: “if not cranes, then what?”

the team attended county fairs and

studied Ferris wheels; they looked

at ski lifts and automated roofing

carriers but nothing quite fit the bill.

2 4 o c t o b e r 2 0 1 4

eventually one of the team members

mentioned the hay loaders her say

on farms near his home. could they

be adapted to ferry heavy seats

up to the plane for installation?

the team began looking into the

workings of hay loaders and finally

found a rancher who could develop

a viable machine that met their exact

specifications, adding safety guards.

the new hay loader was put into

production and shaved an astonishing

10 hours off seat installation. it was

quickly rolled out across all 757

manufacturing plants.

then there was a problem with

the airplane tires being punctured

by the ubiquitous metal fasteners

that littered the floor as they rolled

down the assembly line. engineers

created sweepers that hooked onto

the landing gear, which worked to

catch the larger items but missed the

tiny fasteners. then one engineers

remembered seeing motorcycle

wheels covered by protective canvas

casings at a race so developed the

covers for the 757 and tried them;

they were extremely effective.

solving the problem saved Boeing

$250,000 per annum, per aircraft.

then there was the complex system

of almost 700 hydraulic tubes that

were individually installed into the

wheel well of the 737 landing gear

- a time-consuming and frustrating

process requiring two shifts to

complete. According to an article

in the Wall street Journal, Boeing

engineers and mechanics shortcut

that process by suggesting that

the tubes be grouped into larger

clusters at another plant. the

resulting products are much quicker

to install, saving more than 30 hours

of mechanic labor. What’s more, new

process also reduces hydraulic leaks.

Small changes can make a large difference when it comes to time saving and cost reduction

Lean

c o n t i n U o U s i n n o v At i o n At B o e i n G l e A d s t o s U c c e s s

2 5

How to innovate your production lineBelow are some key takeaways

to embed a culture of continuous

innovation at your plant, outlined by

sally mounts, President of Auctus

consulting Group:

1. Be persistent. many of Boeings

solutions were achieved after

previous efforts had failed to

get off the ground. don’t stop

searching for a workable solution

before the goal is achieved.

2. Apply creative thinking. consciously and consistently

apply creative thinking to

the problem. Get out into the

world and survey unrelated

industries for ideas. Work the

problem by looking outside

of the conference room.

3. Develop teams. hire a team of

people to address innovation

issues on a constant and

consistent basis. Boeing’s

‘moonshine shop’ works

full-time to address lean

manufacturing productivity

concerns. You may not need

full-time innovators, but project

teams can accomplish similar

results with the right guidance.

4. Embrace continuous improvement. Boeing has

borrowed this concept from

Japanese lean manufacturing,

and it has paid off handsomely

for the company. never

stop striving to make things

better, faster and easier.

continuous innovation will not only

make your processes simpler now, but

will set your business up for greater

success in the future as well.

Innovation is embedded into the culture of the company

2 6 o c t o b e r 2 0 1 4

How to manage apprentices in the manufacturing sectorW r i t t e n by : A b i g A i l Ph i lli Ps

The gLoBaL econoMic recession took it toll on manufacturing

around the world. reduced spending

created a domino effect of reduced

demand and subsequent employee

cut backs, but the good news is the

economy is picking up so sufficiently

that employers in all sectors are

seeking to hire more staff.

however, the recession has not only

changed the thinking of corporations

and employers, but also that of school

leavers. With university degrees

costing money, and the very real

prospect of unemployment upon

graduation, many students have opted

instead to enroll in vocational courses

or embark on apprenticeships.

PeoPLe & skiLLs

2 72 72 7

A report published in July from

sandler training, a business

consultancy service, used data

from a survey of over 1,000 smes. it

found that academic qualifications

are “losing out to practical skills”,

which, the report claimed, “can

deliver more tangible effects on a

business”. the companies surveyed

said that they expected to be

increasing their apprenticeship

hiring by 20 percent within five

years’ time but boosting graduate

recruitment by only seven percent.

And this trend is particularly

prevalent in the engineering and

manufacturing sectors, where the

number of people completing Act

2 8 o c t o b e r 2 0 1 4

employees, is also changing.

Top tips for managing apprentices for mutual gain1) set exPectAtions.

Whenever you bring a new employee

onboard, it’s important you set clear

goals and expectations. outline the

key skills you expect your apprentice

to gain throughout the programme,

identify the work he or she will need to

(the largest training provider in Wales,

U.K.) apprenticeships has risen

by more than 38 percent. Andrew

cooksley, managing director of Act

suggests that employers looking for

‘hard skills’ over ‘pure’ academic

qualifications might drive the trend.

so there seems to be a very

real shift towards on-the-job

training, which means the way site

managers recruit and manage

Make sure your apprentice is aware of expectations from day one

PeoPLe & skiLLs

h e A d l i n e

2 9

complete and the hours required for

success. Will your apprentice need

to obtain any formal qualifications

while on the programme? do

they need to record their own

progress? All these questions need

to be answered on day one.

2) creAte A detAiled PlAn.

Before you employ any apprentices,

you need to create a detailed training

manual outlining each individual

step of the course. this manual

will be extremely valuable for the

apprentice. not only can he monitor

his progress, but also reference critical

information. think of this manual as

a course textbook. it should include

educational materials, development

markers and practical instruction.

3) monitor PerFormAnce.

once you have developed the detail

behind your apprentices’ learning

journey you may find it helpful

to identify how you will manage

quality at each stage. For example,

how will you know that the initial

assessment process is working

effectively and delivering the right

outcomes for individual apprentices?

the following ideas can be used to

Be sure to monitor progress

3 0 o c t o b e r 2 0 1 4

build a plan to monitor and improve

the quality of each stage of the

apprenticeship journey and also

the programme as a whole.

• Establish clear processes

for each stage or element

of the learning journey.

• Identify key performance indicators.

• Decide how you will gather

and analyse feedback from

individual apprentices, managers

and other people involved

in the apprenticeship.

• Determine when and how assessors

will share their experiences.

• Develop processes to spot

check or ‘sample’ apprenticeship

documentation.

• Decide how often training

delivery will be observed.

‘...employers looking for ‘hard skills’ over ‘pure’ academic qualifications might drive the trend. So there seems to be a very real shift towards on-the-job training, which means the way site managers recruit and manage employees, is also changing.’

• Determine how you will check agreed

processes are being followed.

• Review the Common Inspection

Framework and think about how you

could meet the standards described.

• Create an overall quality plan for

your apprenticeship programme.

• Identify who will lead the

implementation and future

development of the plan.

A training provider may deliver some

elements of the plan on your behalf but

Apprenticeship schemes are becoming increasingly more popular in the sector

PeoPLe & skiLLs

h e A d l i n e

3 1

it is important that you maintain overall

ownership. managing quality is about

ensuring that apprenticeships deliver

for your employees and the business

so you may also choose other, internal

measures to ensure this is the case.

Assign mentorsA great way to fast-track learning and

monitor the progress of individual

apprentices is to assign buddies with

a wealth of experience in the relevant

area of expertise. this engagement

will help the apprentice see how

each task should be done safely,

efficiently and to a high standard.

it also acts as a benchmark for the

apprentice’s own development.

From a business development

point of view, giving existing

employees the responsibility of

training new recruits is good for

employee morale and could also

help executive management identify

potential leaders in the business.

Offer full time employment Finally, when all is said and done,

ensure your apprentice scheme offers

successful trainees the opportunity

for full time employment – it may

even be worth making 12 months

employment compulsory - considering

on average, training an apprentice

will cost the business in the region

of £20,000 (Usd$32,000) so don’t

spend the money only to hand well-

trained recruits to competitors.

A buddy system will fast track learning on the job

top 10 Ways to Build a World Class manufacturing safety strategymanufacturing executives shouldn’t overlook health and safety management. Failure to develop and maintain an effective strategy could result in poor financial results, negative branding or in the worst-case scenario serious injury or death.

large accidents relating to safety can incur painfully high penalties, set back production and cause insurance premiums to skyrocket. how can manufacturing executives develop a health and safety system that protects its people, products and bottom line?

3 2 o c t o b e r 2 0 1 4

Written by: AbigAil PhilliPs

ToP 10

top 10 Ways to Build a World Class manufacturing safety strategymanufacturing executives shouldn’t overlook health and safety management. Failure to develop and maintain an effective strategy could result in poor financial results, negative branding or in the worst-case scenario serious injury or death.

large accidents relating to safety can incur painfully high penalties, set back production and cause insurance premiums to skyrocket. how can manufacturing executives develop a health and safety system that protects its people, products and bottom line?

3 3

10. have a hanDLe on firsT aiDin the event of an emergency easy access to medical equipment is crucial. the manufacturing facility should be well stocked with essential and job-specific first aid equipment, and each item should be well identified. All employees should have at least minimal training when it comes to using first aid equipment. in many cases, it is necessary to have staff members who are specially trained in first aid, cPr or confined-space rescue.

9. know where you sTanD froM a LegaL sTanDPoinTmake sure everyone is well aware of his or her accountability and responsibilities. many countries and/or jurisdictions have differing level of liabilities, including personal level liabilities. All stakeholders within the company should be well aware of those liabilities and processes. documentation should be prepared in accordance with the stakeholders to ensure everyone

ToP 10

3 4 o c t o b e r 2 0 1 4

is protected and practices a safe work environment in their management style and behavior.

8. resTricT access To Dangerous areas on siTeWork sites should only be open to the people trained and paid to be there. Friends, family members and employees from other departments should not be granted access to areas where work is being done. identify restricted areas with signs and tape. in many cases, it is necessary to limit access with locked gates and doors. let your workers know to report any unauthorised people in your facility and if employees grant unauthorised people access, know they will face stern repercussions.

7. Be aware of PerManenT risks anD haZarDs anD PLan accorDingLymany machines in manufacturing are dangerous regardless of whether they are working exactly as they are intended to. take

chemicals, for example, you can’t simply remove the risk of a dangerous chemical by doing a quick check, but you can make sure all chemicals are properly labeled and that employees are equipped to handle them properly. many machines heat up quickly and pose a fire hazard, even when operating correctly. it’s your responsibility to know the limits of your equipment and communicate them to all workers.

confined spaces are another permanent hazard that can be difficult to address. As confined spaces exist in most manufacturing settings, it is important for your employees to understand the risks of becoming entrapped or finding themselves in an oxygen-depleted area. Address that risk with training, exhaust blowers and confined space rescue equipment, and always make sure employees in such conditions work in pairs.

6. ensure Machinery is ProPerLy anD reguLarLy MainTaineDmachinery and equipment that

3 5

isn’t properly maintained can be very dangerous. even equipment with fail-safes can malfunction if you do not perform regular maintenance checks. to minimise the risk, have your equipment inspected on a regular basis by a professional, whether in-house or contracted. And don’t rely solely on those spaced out inspections; make sure that your employees know how to perform a quick inspection before and after using each piece of machinery. the

people who come in regular contact with your equipment should know what a machine looks like, how it smells and how it sounds when operating properly. if a machine is deemed potentially unsafe, it should be shut down immediately for repairs. onsite workers should not attempt to repair malfunctioning equipment on their own without first alerting a supervisor.

5. DeveLoP a ManufacTuring safeTy coMMiTTeeencourage employees to get on board with outlining and maintaining a health and safety strategy by developing a manufacturing safety committee. each division should elect a number of representatives, who will join a meeting each month or quarter to discuss changes to the safety guidelines of the plant. each meeting should be an open forum, where all employees at the plant are welcome to join the discussion or bring a concern to the table. during these meetings milestones should be developed, and

ToP 10

3 6 o c t o b e r 2 0 1 4

achievement of milestones should be celebrated, such as no lost time for each month, quarter, and year. Bringing your employees into the debate from the beginning and giving them a voice will motivate them to implement new strategies.

4. exaMine Processes for faTigue facTor, Breaks anD roTaTionrepetitive actions and activities cause most long ranging issues

with employee well being. Fatigue increases as the day goes on. repetitive actions require synchronisation with man, machine and environment, which begin to slow as the day goes by. these can be overcome with effective and frequent rotations, thus bench strength becomes a key to success. Breaks must be designed with these factors in mind and may be allowed differently for different type of jobs

B U i l d i n G A W o r l d c l A s s m A n U FA c t U r i n G s A F e t Y s t r At e GY

3 7

considering these load factors.

3. ProMoTe ManufacTuring safeTy in grouPsconsider the safety of the group and rally the workforce towards a common goal. this automatically activates accountability to persuade others to act in a certain way, which mirrors the goal of focusing on safety. this is especially effective in more volatile and variable operations where volume surges result in frequent workforce reduction and expansion. try a buddy system to ensure safety of the individual and that of the group. this team focused system makes it relatively easy to spot and prevent unsafe behavior and practices.

2. Make safeTy a PrioriTy froM Day onesafety standards and expectations need to be highlighted from day one. to build an effective safety program its implementation will need to be part of the company culture. having an soP is not

enough, it needs to be explained, taught and critically, maintained by management. Floor managers need to watch out for employees cutting corners or ignoring protocols and discipline those employees when necessary.

1. DeveLoP a Training PrograMMeA manufacturing facility is only as safe as the people working in it. detailed training needs to be given to every employee entering the workplace and periodic refreshment courses are essential. employees should have regular training on equipment, personal safety and first aid – they should be able to recognise if a machine is not working, know who to contact in a medical emergency and how to evacuate the facility. At the end of each training course, those in attendance should sign a form stating they understand the health and safety requirements discussed and that they’ll adhere to them. this information should be saved as part of the employee’s file.

Indurama:Strengthening Its Presence Across Latin AmericaPioneering vision in the creation of appliances .

Written by: Mateo Rafael Tablado Interview by: Rebecca Castrejon Produced by: Diego Pesantez Interwviee: Juan Pablo Vela, CEO of Indurama

3 9

Indurama:Strengthening Its Presence Across Latin AmericaPioneering vision in the creation of appliances .

Written by: Mateo Rafael Tablado Interview by: Rebecca Castrejon Produced by: Diego Pesantez Interwviee: Juan Pablo Vela, CEO of Indurama

4 0 O c t o b e r 2 0 1 4

INDURAMA

Competition in Manufacturing

L atin America has become one of the main regions exporting raw material, reaching the most industrialized countries with state of

the art manufacturing. Over the years some cities were established as assembling zones, then later on became manufacturers in a region where big brands already had an established market.

Indurama is one of those Latin American companies that saw the region as a strategic point for the manufacturing of appliances, but also as an emerging market and a fertile field for permanent growth.

In 2013 the company appointed Juan Pablo Vela as the new CEO. Vela has been part of Indurama Group since 2003, starting in Marcimex (a commercialization chain with more than 90 retail stores in Ecuador) from 2003 to 2008.

Vela opened Marcimex in Peru in 2008 and remained in the country until 2013 as the company’s CEO. In less than five years the company opened 60 branches. He then took over as the new CEO of Indurama and returned to Ecuador to manage this new position.

Creating Prestige and Innovation for Today’s Home

Indurama has a history of more than 40 years

Commercial products

Cutting edge

equipment

w w w. i n d u r a m a . c o m 4 1

L AT I N A M E R I C AINDURAMA

Innovation in and out of each appliance

of prestige and has been catalogued as a representative company of the city of Cuenca. The manufacturing company has engaged primarily in the production of kitchen and refrigeration systems in their two manufacturing plants in Ecuador.

Key People Juan Pablo VelaCEO of Indurama

4 2 O c t o b e r 2 0 1 4

INDURAMA

Their specific objectives are expanding Indurama’s brand in Latin America, consolidating their products and increasing their supply.

Balancing Technology and Human Resources

One of the biggest and most consistent areas the company invests is the renewal and development of their technology in its many departments, such as automation to increase plant productivity without interfering with their employees capabilities, which allows them flexibility and dynamism by rapidly responding to the market and consumer needs.

“We always maintain a strong focus and distinction with a high design component in our products. Therefore it is important to have that flexibility,” Vela said.

“We always maintain a strong focus and distinction with a high design component in our products. Therefore it is important to have that flexibility”

– Juan Pablo Vela, CEO of Indurama

Refrigerators Indurama

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L AT I N A M E R I C AINDURAMA

The Human Element

“My greatest satisfaction is having people with lots of leadership and lots of excellence. This comes from shareholders that transmit these values,” says Vela, who emphasized the individual and collective values of every person working in Indurama.“Because if there is a constant in business, is that you will always have new challenges; face them and learn from it to achieve results.”

Employees

Conditioning of global

excellence

www.fairis.com

w w w. i n d u r a m a . c o m 4 5

L AT I N A M E R I C A

Strategic Management for the Future

Nowadays, Indurama processing plants supply almost one million units to fulfill the market needs, being kitchens and domestic refrigeration products their most popular orders.

As a leading brand in Latin America, the company seeks to consolidate its operations in the region through the gradual expansion of new products in its portfolio. They’re trying to achieve that by manufacturing more air conditioners, televisions, washing machines and other household equipment.

Developing Suppliers

Another key tool for the position and branding of Indurama throughout the continent is their relationship with suppliers. These strategic

Processes with global

standards

www.fairis.com

Number of employees: +400 Stablished: 1928 Type of industry: Manufacture of safety glass for appliances, tempered glass, insulated glass for commercial refrigerators. Main Services: Specification, development, products of tempered glass for household appliances, flat, bend, spherical (press), edge work, drilling, up to three colors, packaging and shipment. Recent Projects: Startup of tempering furnace for 3.0mm glass thickness, our capacity now has three complete lines from cutting to tempering. President: Lic. Jorge H Jaramillo V CEO: Jorge Luis Jaramillo D. mba Production Manager: Ing Marlon Salazar.

Visit Our Webpage: www.fairis.com

SUPPLIER PROFILEFAIRIS

4 6 O c t o b e r 2 0 1 4

INDURAMA

alliances are generating new designs, materials and products, and make it possible for the company to establish strong distribution networks and strengthen brand presence with post-sales services.

“This has allowed Indurama to grow in quality, design and services, benefiting our customers and suppliers,” Vela said.

Environmental Impact Initiatives One of Indurama’s most successful projects is currently carried out in partnership with ONUDI (United Nations Industrial

Quality control

Appliances Indurama

w w w. i n d u r a m a . c o m 4 7

L AT I N A M E R I C AINDURAMA

Company Information I N D U S T RY

Manufacturing of

appliances

H E A D Q U A RT E R S

Cuenca, Azuay, Ecuador

F O U N D E D

1972

E M P L O Y E E S

2,500

P R O D U C T S A N D

S E R V I C E S

Refrigerators, stoves,

coolers, stoves, ovens,

toasters, countertops, air

conditioning, household

items, etc.

R E V E N U E

USD$200 millon

W E B S I T E

www.indurama.com

Development Organization) and the Ecuadorian government to reduce polyurethane emissions in favor of cyclopentane, which is friendlier to the ozone layer. The company is also implementing the more environmentally friendly refrigerant gas R600.

In addition to these programs, Indurama is constantly working on obtaining the compliance certification of global standards.

“We are a low-impact company in regards to the environment and we are always looking to improve in this area,” Vela said.

“Because if there is a constant in business, is that you will always have new challenges; face them and learn from it to achieve results”– Juan Pablo Vela, CEO of Indurama

association of pulpand paper producers:Argentina’s Paper Community

written by: osvaldo vassallo, President of the chamberProduced by: diego Pesantez

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association of pulpand paper producers:Argentina’s Paper Community

written by: osvaldo vassallo, President of the chamberProduced by: diego Pesantez

5 0 o c t o b e r 2 0 1 4

argentIna’s paper communIty

We titled this article “La Comunidad del Papel”, which is the name we have given to our facebook page, which aims

to disseminate the qualities of the cellulose and paper in sustainability. why?

our Association, which concentrates the most important producers of cellulose and paper in Argentina (more than 80 percent of the producing market), has been in disbelief, it has been punished harshly and unfairly due to the paper figure, hiding behind false conceptions installed in our society, concerning the use of native forests to make paper.

nothing could be farther away from the truth. Paper, at least the ones produced in Argentina, occurred thanks to implanted forests or alternative fibers, for example, sugar cane. in addition to this, more than 50 percent of the materials used come from recycled paper, which is a constantly promoted activity in our association.

today, we have set as one of our goals the promotion of knowledge in regards to our material, not only through networks, but also with training, both in distance or face to face. As the last scenario and in agreement with the two universities that are dedicated to technology in

“Our Association concentrates the

most important producers of

cellulose and paper in Argentina”

– Osvaldo Vassallo, President of the

Association of Pulp and Paper Producers

w w w. a f c p a r g . o r g . a r 5 1

l At i n A m e r i c AargentIna’s paper communIty

Biomass boiler

cellulose and Paper, we provide top-level training for young professionals and technicians to get involved with the essence of our production and virtues of the material in with which we work.

Additionally, every two years, we summarize,

verified in each segment and in each area, in the event of cellulosic days. the next convention will

Osvaldo Vassallo, President of the Association of Pulp and Paper Producers

w w w. a f c p a r g . o r g . a r 5 3

l At i n A m e r i c A

be held in may 2015 and stands as an attractive event with panels of experts to discuss topics related to our business, such as the disclosure of the latest technological developments, forest certification, chain of custody, social responsibility, and the economy.

We have a personalized biweekly newsletter that reports the most significant developments in the sector, both in our country and the region.

At the institutional level, our Association holds the representation of members against state, local and private agencies. through an agreement signed this year in pursuit of generating improvements in production, investment and job creation on our part, while receiving from the national state financial aid and communication strategies.

in this area, we have relationships with other related institutions such as Argentina Forestry Association, the Federation of industrial Graphics Argentina, and the chamber of corrugated

Yankee for new

voith pulp machine

in Argentina

“Our Association holds the representation of members against state, local and private agencies”– Osvaldo Vassallo, President of the Association of Pulp and Paper Producers

5 4 o c t o b e r 2 0 1 4

argentIna’s paper communIty

Argentina Federation timber industry. it should be mentioned that these institutions have sponsored cerFoAr, a Forestry certificate from Argentina that was recently approved by PeFc internationally.

We remark that our Association is itself the national representative to the Federation. that is why together we generate wage settlements and mainly the collective Bargaining Agreement that governs domestic activity.

it should be noted that the areas in which we operate are cellulosic, that of printing and writing paper (including newsprint), the packaging paper

Treatment plant of Smurfit Kappa effluents in Argentina

w w w. a f c p a r g . o r g . a r 5 5

argentIna’s paper communIty l At i n A m e r i c A

and tissue. rounding out the line, the cards for folding boxes lined in cases for applications such as medicine, food, cleaning products, cosmetics, etc.

in our statistics, and as can be seen internationally, the two items are clearly growing packaging paper (with 58 percent share of total) and tissue paper (17 percent).

in parallel, we are not predicting high level investments in Argentina, which we believe are specifically tied to the better use of existing investments, and especially dedicated to process recycled materials.

the Argentina coexists with the best land, mild and all year round climate, abundant and predictable rainfall patterns, which offers the best opportunities for forest management, coupled with the existence of large areas of planted forests, which create the potential for investments in cellulose and paper, specially engaged in import substitution verifying a growing trend for the coming years.

Company Information

I n d u s t ry

Industry Chamber

H e a d q u a rt e r s

Argentina

F o u n d e d

1932

e m p l o y e e s

28

k e y p e o p l e

Osvaldo Vassallo,

President of the

chamber adDress

Belgrano 2852

(C12009aan), C.A.B.A,

Buenos Aires, Argentina

e m a I l

info@afcparg.org.ar

Rhino Water Tanks:Rhino Water Tanks: Water Storage Solutions for AustraliaRhino Water Tanks provides products and services for domestic,

rural and commercial customers.

Written by: laura close Produced by: Wayne masciotrio

5 7

Rhino Water Tanks:Rhino Water Tanks: Water Storage Solutions for AustraliaRhino Water Tanks provides products and services for domestic,

rural and commercial customers.

Written by: laura close Produced by: Wayne masciotrio

5 8 o c t o b e r 2 0 1 4

rHIno Water tanks

RHINO WATER TANKS, is a privately owned and operated Australian company with over 20 years experience in the water storage industry. currently rhino Water tanks is represented in all states and has a growing network of distributors and installers.

strategically the company is moving towards offering more options to contain various solutions, not just water. they are also looking at options to expand into more environmentally-orientated solutions and self-supporting systems for water, power and gas.

Water Tank Specsthese modular steel tanks range in sites from 26,000 litres to over 2 million litres, and are available in Zincalume (a metallic coated sheet steel that offers two to four times the corrosion resistance of galvanised steel) or colorbond (a product specifically made for Australian conditions and comes in a variety of colours).

the whole tank and all of its components—including the hydrashield liner—are manufactured in the company’s Western Australian factory. rhino tanks made this a priority for their company to be able

Mt Thorley tanks in progress for Rio Tinto.

m A n U F A c t U r i n G

www.rh inotanks .com.au/ 5 9

rHIno Water tanks

Rhino Water Tanks

to control the quality of every aspect of the tank manufacturing process. hydrashield is a reinforced food-grade metallocene coated liner that is Uv treated and is suitable for exposed applications where a roof is not required.

Products in rhino tanks’ line are approved for drinking water, as well as a range of other liquids including vegetable and animal oils, both high and low ph water as well as sewerage, waste and recycled water. All of the wall sheets are corrugated and rolled from galvanised steel; roof trusses are hot-dipped galvanised for

durability. the metallocene-coated liners, just like the hydrashield, are also Uv treated.

Continuous Improvementrhino Water tanks is a quality-endorsed company. All products are manufactured in the Western Australian factory under a quality management system certified to iso 9001.

rhino’s quality management system aims to benchmark its products and services against the best in the world. the well-recognised ‘Five-ticks’ standards mark is proudly displayed to give

rHIno Water tanks

customers the confidence that rhino Water tanks continually strives to provide cost effective, quality products and services that meet the customer’s individual needs and expectations.

“Being an iso 9001 accredited company continuous improvement is what you strive for,” said duane crombie, ceo. “Furthermore, being a manufacturing business is always tough and gets tougher with every year due to rising expenses and materials and market pressure to make a sale that is mainly based around price and not quality and service.”

the company has made key changes with their manufacturing systems, where rhino has been able to increase productivity with the introduction of machines and robotics. material usage and time management are the two main focuses to continual improvement and will continue to drive the business to better results.

Domestic & Rural and Commercial Water Tanksrhino Water tanks provides

“The domestic water tank market is still our main focus and we use this as a base to grow into the other areas when it suits. To be around in five years time in the challenging manufacturing industry the main key is to keep being smarter, innovative and economical with anything you do and that is our main focus.”

m A n U F A c t U r i n G

www.rh inotanks .com.au/ 6 1

rHIno Water tanks

products both for domestic and rural needs as well as for commercial sites. the company’s range of domestic and rural water tanks are specifically designed with the unique needs of the user in mind. the following features are included on each tank dedicated for domestic and rural customers:• Rhino Infinity Tank Liner• Bluescope Steel Corrugated Wall & roof sheets• Dust and Vermin Proofing Seal• Tank Inlet• 20-year Warranty• Magnesium Anodes for corrosion Protection

• 50mm Scour Drain• Lockable Access Hatch• 100mm Bell Mouth Overflowthere are also a range of optional features:• Additional Outlets and Valves• Fire Fighting Coupling• Rainsavers – Tank Roof catchment system• Removable Internal/External ladder• Additional Inlets• Water Level Gauge• Tank Roof Fascia• Rhino Aqua Tub

A couple of Commercial Rhino Tanks completed for a warehouse in Canberra.

rHIno Water tanks

Some fantastic photo’s of three Rhino Tanks installed in Rio Seco, Peru.

m A n U F A c t U r i n G

www.rh inotanks .com.au/ 6 3

rHIno Water tanks

Global Operationsthe global expansion is through rhino’s sister company called rhinex. the main factor that drives this is the need for cost-efficient storage that can be exported and freighted efficiently and then create a large water storage solution that is constructed simply with basic tools and expertise. this will continue as the demand for clean drinking water grows around the world and the flexibility in establishing a water point in difficult area’s or terrain.

rhino Water tanks now has two distributors in United Arab emirates, and has recently started shipping tanks to Afganistan through their dubai distributor Protech General trading program. in 2011, the company opened a location in Port moresby, the capital city and largest city in Papua new Guinea.

“We see the business growing still but into areas where it suits our business needs and not spread ourselves too thin,” said crombie. “the domestic water tank market is still our main focus and we use this as a base to grow into the other areas when it suits. to be around in five years time in the challenging manufacturing industry the main key is to keep being smarter, innovative and economical with anything you do and that is our main focus.”

Company Information

I n d u s t ry

Manufacturing

H e a d q u a rt e r s

Western Australia

F o u n d e d

1990

e m p l o y e e s

100

r e v e n u e

$50 Million

p r o d u c t s /

s e r v I c e s

Rhino Water Tanks provides several different water storage solutions for the wide range of customers in Australia. The tanks are Australian made, owned and operated, and are built with the strongest materials on the market for the highest quality.

6 5

Company invests in Research and Development of products and offers products at affordable

prices to clients and end userswritten by: Tania franco

Produced by: Jaroslav Pribyl

anjo tintas:Focus on the best

Cost-benefit of Innovation

anjo tintas is a unique Brazilian company that has a new way of relating to the consumer market; it’s focused on innovation and offering its clients the best cost-benefit relationship possible. Anjo has more than 100 products present at more

than 5,000 points of sale throughout the country. the company maintains continuous investment in research and development. this strategy has resulted in its being named as one of the 30 “most innovative companies in the national chemical and petrochemical sector,” as awarded by exame magazine in 2004 and 2006. “We believe that companies that invest in innovation will set themselves apart in the market”, emphasizes Filipe r. colombo, the company’s president.

Thinner Anjo production

6 6 o c t o b e r 2 0 1 4

anjo t Intas

www.an jo .com.br 6 7

Laboratory

anjo t Intas

6 8 J u l h o 2 0 1 4

Acrylic paint

www.an jo .com.br 6 9

http://www.brasilata.com.br/pt/index.php

http://www.solvay.com

http://www.businessfriend.com http://www.dow.com/oxysolvents/

headquartered in the city of criciúma, in santa catarina, Anjo tintas is a company specializing in paints, solvents and accessories for the automotive, real estate, flexography (printing) and industry sectors. since innovation is key for the company, Anjo tintas has a partnership with the Federal University of santa catarina (UsFc). through this relationship, an exclusive technical team, made up of masters degree and Ph.d. holders in chemistry, chemical engineering and material engineering with extensive experience in the paint sector, works within the university’s confines to develop new products and make improvements to existing products. “As a result, it’s possible to highlight the launch of innovative products, such as ProtectPack, an anti-bacterial paint aimed at flexography companies.” [others include] “the super leve plaster, the Premium Acrylic Paint Anjo mais, and eco-thinners,” he details. “in fact, Premium Acrylic Paint Anjo mais offers a yield up to 80% higher than common paints in the market”, he emphasizes with respect to the savings passed on to the consumer.

According to the executive, the differential in Anjo’s solutions, in addition to bringing together innovation and cost-benefit, is the company’s concern with sustainability. “our products are differentiated because, in addition to offering the best cost-benefit to retailers (Anjo’s direct customers) and end users, we are also concerned about sustainability. in other words, our innovations reduce the impact on the environment, improve the user’s yield, create less residue and also protect the end user”, he details.

he says, however, that the main challenge is to continue to grow sustainably in a market that has little room for product differentiation. “We have worked hard on innovation to develop unique products and to stand out from the crowd”, he adds.

Anjo tintas uses tools for the continuing education of its employees and the business as a whole, such as the Process improvement Groups Program and the Profit sharing Program, in which all employees have the

B r A Z i l

www.an jo .com.br 7 1

opportunity to participate. the Process improvement Groups Program,

the company’s main participative management tool, provides professionals with the opportunity to suggest improvements, not only to the areas where they work, but also to the entire corporation. through this initiative, Anjo’s goal is to develop the company’s intellectual capital, its professionals, by contributing to the constant improvement of corporate processes to create a happy and healthy work environment.

the company’s employees also participate in a Profit sharing Program. through it, all professionals are required to meet established goals on a monthly basis to be able to participate in the profit sharing program. these goals include but are not limited to average sales cycle time, late payments, sales per professional, and administrative or financial costs. the indicators are managed by a professional who does this work on a volunteer basis. each employee submits his or her individual results each month. When the pre-determined goals are met, the professionals earn percentages (also pre-determined) on top of their base salaries.

the company has activities to retain and develop its employees. one of them is called “the leaders of the Future Project,” a postgraduate course – with content applied on the job – offered to talented professionals in conjunction with the educational institution, sAtc. Anjo even provides scholarships in the

7 2 o c t o b e r 2 0 1 4

anjo t Intas

www.an jo .com.br 7 3

Anjo factory

s o l U ç õ e s i n o v A d o r A s e s U s t e n tá v e i sanjo t Intas

7 4 o c t o b e r 2 0 1 4

anjo t Intas

amount of 40% of the total cost of bachelor’s degree courses for its employees. in addition, the company does 360° employee reviews, through which the employees’ needs for technical training for employees are identified and, depending on the results of the review, the company offers employees courses designed at meeting those needs.

investments in technology are also part of the corporate strategy of the company. Between the end of 2013 and the beginning of 2024, Anjo modernized its entire it infrastructure. With the goal of ensuring a high level of data availability, new high-performance servers, working as a cluster, were purchased and installed in different data centers. the internal networks were overhauled, new high-transmission switches were installed and the access points were replaced. in addition, according to Anjo’s president, the company is substituting its current Business intelligence system with Qlikview software, which “offers better dynamics and is much more user-friendly than the old system.”

in the factory, Anjo is always on the lookout for opportunities to automate its process. the latest purchase was an automatic filling machine.

Aiming at improving the management of its operations in addition to offering agile and automated service, Anjo has a Wms system installed at its sites. regarding product distribution, the company monitors product stock levels at its affiliates to guarantee quick re-stocking, order releases and shipments so that service is quick and agile.

the company is constantly on the quest for certifications that guarantee the quality of its products. in 1999, Anjo received the iso 9001 certification. in 2012, it earned the iso 14001 certification.

growTh Founded in 1986, Anjo tintas currently serves more than 5,000 clients. its headquarters and its four manufacturing facilities are located in

anjo t Intas B r A Z i l

www.an jo .com.br 7 5

criciúma in santa catarina. the company also has three distribution facilities: one in Bragança Paulista, in the state of sao Paulo, one in the city of Aparecida de Goiânia, in the state of Goiás, and one in vitória de santo Antão, in the state of Pernambuco. At the end 2012, Anjo carried out strategic planning that includes various projects to be developed. in 2013 and 2014 some of these were already completed and others are currently underway. Among the projects completed are integrated

Filipe Colombo, Director of Marketing and Innovation

“We believe that companies that invest in innovation will set themselves apart in the market”

7 6 o c t o b e r 2 0 1 4

anjo t Intas

logistics, repositioning of the automotive line, a tintometric system for its real estate line and leader development. “We project real growth of 122% through 2022. Among our plans are the expansion of our manufacturing capacity and entering other sectors, which we cannot release more information about”, he finalizes.

Company Information

n a m e

Anjo Tintas e Solventes

I n d u s t ry

Chemical

H e a d q u a rt e r s

Criciúma, SC - Brazil

e s ta b l I s H e d

02/04/1986

p r o d u c t s

Fabricate products such

as thinners and paints

for the automotive, real

estate, printing and

industrial sectors.

B r A Z i l

www.an jo .com.br 7 7

anjo t Intas

7 9

The main highlight is the compact product, intended for popular housing, bringing together

easy installation and a competitive pricewritten by Tania franco Produced by sergio ambrosino

soletrol is a synonym for innovation

in solar heaters

The featured characteristics of soletrol, a company founded and headquartered in the city of sao manuel in the interior of the state of sao Paulo, are its investment in the expansion of industrial capacity, development of new technologies, emphasis on the

fine-tuning of industrial processes, the importance it places on professional training,a nd its effective exercise of corporate leadership.

the company has been in the market for 33 years, serving all of Brazil, and exports its products to a variety of nations. “soletrol has a unique structure that no other company in all the Americas has and it is effectively the market leader, not only producing more significant quantities than its competitors, but it is also a major developer of technology and innovative products, having popularized the solar water heater as well as spreading knowledge and training professionals across the sector,” says the director President of the company, luis Augusto Ferrari mazzon.

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soletrol

Solar Panel

an innovaTive coMPanyregarding new technologies, soletrol created and developed the market for solar water heaters for low-income housing, popularizing the use of the technology and providing energy savings to the neediest families.

An example of industrial innovation is the solar collectors whose assembly does not require rivets or screws. the innovation not only stimulates production, but it also guarantees a longer useful life for the products. this is one of the 27 patents and rights of industrial design (rid) that soletrol holds.

the automated processes, which the metal welding of soletrol thermal reservoirs pass through, as well as the models, made of thermoplastics, guarantee higher quality and durability in the resulting manufactured products.

the purchase of new production equipment also is part of the company’s

Solar Water Heater

B r A Z i l

www.so le t ro l .com.br 8 1

soletrol

non-stop quest to stay ahead of the market. in 2013, the company invested r$2 million in the purchase and installation of a rotational molding machine and line. the equipment, which builds the internal structure of the thermal reservoirs, used in low-income housing projects as well as in products offered to the general market, was purchased to meet the growing demand stemming from contracts soletrol signed with builders throughout the country.

in 2015, the company will have finalized an investment of nearly r$ 5 million. of this amount, approximately 50% was allocated for the purchase of equipment and the expansion of the company’s technical support capacity, such as a building for the production process support sectors. the remaining half was allocated to the redesign of the production line and the expansion of the factory area to accommodate an increase in production capacity.

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soletrolsoletrol

Solar Swimming Pool Heaters

Praça do Sol

soletrolsoletrol

http://www.euroveder.com.br

soletrol also stands out for being the only company in Brazil that has a development and test lab for solar heaters and new technologies, the soletrol technology center.

in addition, the company participates in training market professionals. soletrol is the founder and sponsor of the University of the sun – Augusto mazzon Foundation, which provides theoretical and practical training, supports technical projects and publications, and sponsors television programs that promote the training of the sector’s labor force, such as the program solar energy on tv – esntv.

ProDucT for Low-incoMe housing soletrol serves all solar market segments through the provision of water heating equipment in homes that are already-built (traditional or high level) or are under construction as well as in commercial and industrial buildings,

soletrol

hotels and pools.since 2012, a large proportion of the products made by the company

(50% of current production) is aimed at the low-income housing market. For example, compact heaters that cost approximately r$ 1,300 are installed in 120 sq.meter homes. Among these programs, the cdhU (low income housing office of the state of sao Paulo) and cohAB (a state-owned company responsible for running public housing policy in the city of são Paulo and its metropolitan region) programs stand out, along with the mcmv – “minha casa, minha vida” (“my house, my life”), an initiative of the federal government.

“the big trend of the moment, the segment is responsible for nearly 30% of the sector’s sales. We expect even larger growth in market share in 2014, as President dilma rousseff announced the third phase of the ‘my life, my house’ program, which will include more than 3 million new housing units,” comments the director President.

Soletrol products for hotels

B r A Z i l

www.so le t ro l .com.br 8 5

soletrol

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soletrol

“The big trend of the moment, the segment is responsible for nearly 30% of the sector’s sales. We expect even larger growth in market share in 2014, as President Dilma Rousseff announced the third phase of the ‘My Life, My House’ program, which will include more than 3 million new housing units”

– Soletrol CEO, Luís Augusto Ferrari Mazzon

exPansion anD ParTnershiPsin addition, the company is significantly increasing its distribution channels and strengthening its participation in the pools segment. “recently, we signed a partnership agreement with the israeli firm mAGen, the world leader in the production of solar collectors for pools. through this partnership, a factory jointly operated by magen and soletrol will be producing this technology in Brazil in less than two years,” he details.

in 2013, soletrol sold 400,000 sq. meters of flat collectors in the domestic market only, which accounts for 97% of the company’s revenues). in 2014, sales are expected to grow by nearly 30%.

fuTure chaLLengeAccording to mazzon, the solar water heater sector is undergoing the process of requiring the certification of manufactured and marketed products. therefore, only equipment tested and certified by inmetro (national institute of metrology, standardization and industrial Quality) will be allowed in the market beginning in July 2015.

to comply with the new regulations, soletrol created a quality management system with internal and external audits of all its production processes. “this is an important moment and a turning point, not only for the industry but also for the end user, who will expect even better products”, the executive concludes.

Company Information

I n d u s t ry

Solar heaters

H e a d q u a rt e r s

São Manuel, SP - Brazil

F o u n d e d

1981

p r o d u c t s /

s e r v I c e s

Solar water heating

solutions manufactured

with latest technology

and innovative design

k e y p e o p l e

Luís Augusto Ferrari

Mazzon: CEO

B r A Z i l

www.so le t ro l .com.br 8 7

soletrol

8 9

Company invests R$ 250 million mainly in the production of aluminum parts

Written by: Flávia Brancato | Produced by: Sergio Ambrosino

Teksid invests heavily to keep pace

with the market

Representing one of the largest automotive foundry groups in the world, Teksid keeps pace with developments in the market and offers the very best to cater to current trends in the sector. Specializing in casting and machining cast iron and aluminum,

the group owns factories in Portugal, Poland, Brazil, Mexico, Italy and China, as well as a commercial office in the United States, and has a production capacity of approximately 633,000 tons per year.

The Brazilian branch, which has beenin operation for over three decades, has become a leader in the production of engine blocks for cars and light commercial vehicles with a market share of over 70%. Teksid Brazil has two large plants located in the same industrial park in Betim, a Metropolitan Region of Belo Horizonte. The two factories together, one producing iron and the other aluminum, are capable of producing more than 300,000 tons of parts per year, in a total combined factory area of more than 420,000 m².

Teksid’s Commercial Director, Raniero Cucchiari, proudly explains that these figures are already growing as a result of the planned investment,

Teksid

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TEKSID

primarily with regard to the production of aluminum parts. “At the end of last year we began a very important cycle of investment in aluminum casting. We are talking about R$ 250 million between 2013 and 2016”. The primary motive of all this activity is linked to changes associated with the Incentive Program for Technological Innovation and Consolidation of the Production Chain for Automotive Vehicles (Inovar-Auto) enacted by the government in 2012. The program is a measure adopted by the Federal Government with the aim of stimulating investment in the national automobile industry. It is estimated that by 2015, the Program will raise more than R$50 billion of investments in the sector.

Some Teksid ProductsCatalog

Head for diesel engine

Automotive Aluminum Head

Crankshaft

www.teks id .com.br 9 1

B R A Z I LTEKSID

Changes and expectations With the intention of supporting technological development, innovation, safety, environmental protection, energy efficiency and the quality of vehicles and parts, one of the measures taken by the automakers is to produce more economical cars. And that is exactly where Teksid’s work comes in; producing new parts that were formerly made with iron but will now be made with aluminum. “This trend prompted us to begin producing aluminum blocks for the new motor platforms. At the end of last year we confirmed the investment and at the beginning of 2015 we will begin operations. The expectation is to reach a production rate of 720,000 blocks per year”, celebrates Cucchiari.

Today the group produces cast iron parts such as blocks, head gaskets, brake discs and cylinders, wheel ends, crankshafts, casings and components for cars and industrial vehicles, as well as aluminum head gaskets. Overall more than 200 items are produced. The forecast for the coming year suggests that a productive capacity of almost 1,400,000 head gaskets will be reached in the aluminum foundry, taking into account the installation of a third carousel which is currently being concluded, and which will begin to function next year.

To guarantee the quality of its products, Teksid constantly invests in development manufacturing and distribution processes. “Within the investment plan – and it should be

“At the end of last year we began a very important cycle of investment in aluminum casting. We are talking about R$ 250 million between 2013 and 2016”– Commercial Director, Raniero Cucchiari

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TEKSID

www.teks id .com.br 9 3

B R A Z I L

noted that this is the largest investment by the Teksid group worldwide and probably one of the most significant investments in the Brazilian car parts sector – it is also important to highlight the new furnaces for iron casting”, explains Cucchiari.

Its high level of quality has made Teksid an award-winning company that is internationally renowned as a trustworthy supplier. The company uses four molding lines to manufacture grey and modular cast iron parts, with the flexibility of chemical composition to serve the automotive industry and car manufacturers in their diverse applications.

Finishing light weight parts - Iron casting

TEKSID

Cutting edge technology Occupying a prominent position, the company caters to the largest automakers working in the country. Among its clients are the most important manufacturers of cars and industrial vehicles in the world, as well as global manufacturers of engines and tractors. Boasting a quality product and excellence in manufacturing equipment, the different technologies used by Teksid make all the difference.

Iron casting

Automotive engine block

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Nominated for the AutoData Prize in the category of Technological Innovation, the exclusive HPI (High Performance Iron) alloy, for example, was specially developed for the production of blocks and head gaskets used in state-of-the-art engines, which demand high performance and power as well as low fuel consumption and emissions. Another important trend to which the company is responding to is the production of diesel head gaskets and

Diesel engine block

www.teks id .com.br 9 5

blocks using CGI (Compact Graphite Iron) technology. Raniero admits, “That is a novelty which we were not prepared for until recently and we are now ready to serve the market”.

Another highlight of the company is it’s trailblazing in the acquisition of liquid pig iron. The process, inaugurated in 1988, was developed entirely by Teksid and allowed considerable gains in the quality of the casts, an increase in productivity and a saving of 32% in the consumption of electrical energy without requiring any expansion of the installed capacity.

SustainabilityThroughout Teksid’s history, it is possible to find initiatives displaying

Teksid invests in technology manufacturing products - Iron casting

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TEKSID

a commitment to ethics, transparency and socio-environmental issues. A Sustainability Committee is responsible both for evaluating all actions already undertaken, coordinating new possibilities and working for future improvements related to environmental responsibility. Raniero nevertheless reminds us that “as well as adding new technologies and increasing productivity to meet demand, maintaining sustainable actions is one of our greatest challenges”.

The characteristics of the foundry production

Teksid invests in technology manufacturing products - Iron casting

Some Teksid ProductsCatalog

Flywheel

Wheel end

Exhaust manifold

B R A Z I L

www.teks id .com.br 9 7

TEKSID

www.walbert.com.br

process result in the generation of industrial waste, however the company has strived to adopt sustainable practices which allow the reduction of this waste or its reuse in the production process. A good example was the recent prize won by the Mexican branch, which was awarded the “Environmental Leadership Award (USA)”, during the Cummins Suppliers’ Conference. The award was made by the client in recognition of the importance of the investment and the installation of a system to recover sand in the factory. According to the plans, “we aim to work with the same concept in our Brazilian branch, where the idea is to increase the capacity for regeneration of sand by 70% in two years”, the executive explained.

Moreover, the group is constantly seeking to maintain its role as an

Factory - aluminum casting

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TEKSID

example of environmental awareness in the sector and, among other actions, invests in the adoption of systems for the filtration of suspended particles, the recycling of the water used in the production process, the classification and adequate disposal of solid waste, and a system to treat rainwater. To conclude, “in its first WCM audit – A broad manufacturing program which aims to reduce waste – Teksid Brazil stood out among the other plants in the group by obtaining 12 points”, Raniero says modestly.

Company Information

N A M E

Teksid do Brasil

I N D U S T RY

Casting

H E A D Q U A RT E R S

Betim, Minas Gerais

E S TA B L I S H E D

1976

P R O D U C T S /S E R V I C E S

blocks, head gaskets, brake discs and cylinders, wheel ends, crankshafts, casings and components for cars and industrial vehicles, as well as aluminum head gaskets

M A N A G E M E N T

Rogério Silva Junior : CEO Raniero Cucchiari: Commercial Director

Factory - aluminum casting

B R A Z I L

www.teks id .com.br 9 9

TEKSID

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