2. FOSHAN COMETAL INDUSTRIAL MACHINERY Ltd is the world largest
integrated supplier of equipment for aluminum extrusion
DESCRIPTION
In 10 years of service Foshan Cometal Industrial Machinery (after FCIM) is the unique integrated supplier of automatic extrusion line for aluminum profiles operating in
South East Asia (after SEA). Taking advantage of the know-how accumulated by COMETAL in Italy since 1978 FCIM gain a leadership position in the market and
expand very rapidly.
History
The actual FCIM has been incorporated as WFOE in China in 2004 at that time as subsidiary of new merged public listed company TREVISAN COMETAL. The
strategy of FCIM was to supply aluminum extrusion (business of COMETAL) and vertical powder coating plant (business of TREVISAN) to the SEA market by offering
an “Italian design equipment manufactured in China”.
The change of CEO and the pressure of the stock market had pushed in 2006 to a rapid change in strategy and move to FCIM 90% of the manufacturing of the whole
Trevisan cometal group. To do so Trevisan Cometal did an huge investments in the improvements of Quality control, development of technical staff and knowledge
transfer. After a couple of years (2008) FCIM had gain the capabilities to be a solution provider operating almost independently and not just a machinery builder. The
ability to supply tailor-made equipment from China, previously supplied only from Europe or USA, gave to FCIM a tremendous competitive advantage and the turnover
doubled in 2 years.
In the meanwhile the Trevisan Cometal went trough an LBO creating an unsustainable debt that eventually force to bankrupt in 2009.
After just one month from the bankruptcy, the new.co COMETAL ENGINEERING (after CEng), bought from the liquidator appointed by the Court of Verona (Italy) the
ownership of FCIM and the rights and know-how related to the extrusion equipment. By guarantying the continuity of the business and assuring as a partners the
former key managers, the FCIM has overcome the difficulties and regain the leadership. The investment in FCIM has resulted in ROI of 430% after just two years.
In 2014 FCIM is looking to become the first Italian invested company listed in the OTC market of Beijing, looking for an institutional investor to support the expansion of
the company worldwide.
Financial Statistics
• 2011: Net Income RMB x million , Total Revenue xRMB
• 2012 : Net Income RMB x million , Total Revenue xRMB
• 2013: Net Income RMB xmillion, Total operating revenue: $xmillion
Operating Statistics
• Nearly 250 People are employed in FCIM, including no.6 expats. Direct labor count for 110 staff and the rest as indirect (mainly management, QC, technical dept and
Service dept);
• Since 2007 FCIM has develop design and service capabilities able to guarantee and independent operation from the mother companies and to satisfy the specific
request of the SEA markets
FCIM' Distinctions
• COMETAL in the 40 years of activity has been always set the customer needs first and put all the necessary effort to satisfy it by tailor-making solution and products to
help the customer to overcome technological and/or productivity constraints.
• In 2012 and 2013 FCIM has been identified as the equipment supplier for all the project of expansion of SAPA GROUP (the bigger player in aluminum extrusion in the
world) in the SEA.
• During the years 2012 and 2013 FCIM has deposit no.10 Patents of technological improvements developed for the Chinese market.
3. FCIM’s strategy can be summarized in less than 35 words
FCIM’s strategy is to supply tailored manufacturing
plants to expanding extruders in ASIA with short
lead-time 24/7 support for no premium, achieving
this through flexible operation, unique process
control, continuous improvement and effective
delegation.
Wordcount: 34
4. CUSTOMERS PRODUCTS MARKETS CHANNELS
VALUE
PROPOSITION
COMPETITIVE
ADVANTAGE
DRIVING FORCE
PURPOSE
Help extruders to overcome
technological and productivity
constraints
Expanding customized ASIA Direct
extrusion automatic hi-end referral/agents
Company plants
Resources
COMETAL brand equity
existing engineering
20.000 sqm workshop
Design and after-sales
over capacity
PRODUCT/
MARKET
CHOICES
CUSTOMER
FCIM’s strategy fits together logically
FCIM STRATEGY TRIANGLE
Standard
price
24/7
support
Short
Lead-time
tailored
plants
Processes
Comprehensive management balancing
cost, timing, quality
Integrated manufacturing with extended
network of reliable sub-suppliers
Training and coaching
In-house career promotion
Values
empowerment
spread know-how
Persist until customer satisfied
5. Standard
price
24/7
support
tailored
plants
An Activity Map connects the Value Proposition to the company’s
assets, capabilities and values
FCIM’s ACTIVITY MAP
Effective
empowerment
Historical archive of
previous solutions
Large
workshop
Design
overcapacity
Comprehensive
cost control
Integrated
manufacturing
Extended sub-
supplier network
Time for
Training
testingIn-house
promotions
spread
know-how
Product
development
Persist until
customer
satisfied
Lower
margins
High number
of project per
year
Brand Identity
and know-
how of
COMETAL
No
economy
of scale,
MTO
short
lead-time
Modular
solutions
After-sales
overcapacity
Quality
system
Staff not
fully loaded
Avoid salary
spikes
Difficult to
imitate
6. FCIM has several strategic questions to address to ensure
continued success
• How can limiting the overhead capacity in technical
departments to the optimal level?
• Can we improve our modular design to able to adopt MTS
philosophy and have economy of scale effects?
• Can we standardize some process in order to need less specific
training and allow the use of more generic trained staff?
• How can we effectively embed in the company know-how the
spread know-how across the organization?
• How can sustain an heavier overhead in a cyclical business such
as machinery builders?
• How can we provide fast support for customer located out of
SEA and overcome language and jet-lag barriers?
CURRENT STRATEGIC ISSUES