Aib-Vincotte, an innovation and international expansion case
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How Aib-vincotte grew to an international company with presence in 18 countries over 4 continents. Thanks to its innovation program, it grew by exporting its unique expertise and knowledge in the fields of energy, utilities, infrastructure and construction.
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Aib-Vincotte, an innovation and international expansion case
- 2. International Management Session # 09 Aib-Vincotte, a case of innovation and international expansion. Mr. Jean Muls, Managing director (2005-2010) 08 december 2014 2
- 4. 4
- 6. The case : 1. Shrinking revenues, lack of liquidity (sold its buidlings) 2. Board’s vision : “To expensive, cost cutting is the solution” 3. CMO’s vision : “Engineers dont want to change” 4. Findings : High levels of technical competence, but unexploited. Mismatch with market demand. More a Strategic Management issue.
- 7. Cross-border selling of expertise on LNG terminals : From Fluxys Zeebrugge to Rotterdam Gate Terminal.
- 8. Cross-sector selling of expertise on Hi- Voltage equipment : From steel plants to data centers for Google (Europe)
- 9. Establishing Partnerships to expand in new territories : Gulf region (300 employees) & Gas pipeline inspection (India).
- 10. Combining expertise towards new sectors : Inspecting the core of ITER nuclear fusion reactor. www.iter.org
- 12. How did international expansion and innovation pay off ?
- 13. Thank you for your attention
Editor's Notes
- When I joined Aib-Vincotte, I was told that the main problem to be tackled was the high level of salaries of its employees. It had liquidity problems and year-on-year revenue was flat.
- “Aib Vinçotte – accredited body under the European pressure vessel directive - had been heavily involved in all type of controls and inspections during the construction and operation of Fluxys’ terminal in Zeebrugge. In the context of the Gate Terminal project in Rotterdam, we got in contact with the port of Rotterdam and the authorities that ultimately asked Vinçotte to assist them to set up the appropriate inspection framework to guarantee safety during the construction of the LNG terminal (illustration left above). That gave us a strong advantage to win the TPI contract itself (illustration left below), further strengthening Vinçotte position in gas inspection and control, at global level.”
- “After a couple of months, I became convinced of the market potential of the accumulated experience. Instead of (only) cutting costs, I focused on innovation and new market-service development and got my teams to work on detecting new opportunities and developing new services. We had expertise in control of electrical components in the process industry. So we went for the booming market of Datacenters (picture next : team inspecting a circuit breaker for Google’s datacenter in Ghlin).”
- “International expansion was also one of our growth priorities. Growth based on the company’s expertise. From 2005 to 2010, we expanded Aib-Vinçotte’s share of business at international level to more than 30%. In 2010, our staff in the Middde East, where we partnered with local investors, reached 300 (picture left above : Vinçotte Middle East team during ADIPEC Exhibition). We also looked at market opportunities in India. As the country’s demand for energy was huge and its energy transport networks required expansion, we targeted that market. We accomplished that by winning the inspection contract for the construction of GAIL DVPL II pipeline.”
- “The cherry on the cake of our innovation and expansion initiatives was the award of ITER’s TOKAMAK reactor vessel order (illustration right). Vinçotte – a 150 year old company – was thereby all of a sudden a key player in this global R&D project aiming to prove the technological and commercial feasibility of nuclear fusion as a future source of energy (www.iter.org). In 2010 all contacts to sell the company initiated when it had liquidity problems were interrupted. Vinçotte is still doing well today.”
- “The cherry on the cake of our innovation and expansion initiatives was the award of ITER’s TOKAMAK reactor vessel order (illustration right). Vinçotte – a 150 year old company – was thereby all of a sudden a key player in this global R&D project aiming to prove the technological and commercial feasibility of nuclear fusion as a future source of energy (www.iter.org). In 2010 all contacts to sell the company initiated when it had liquidity problems were interrupted. Vinçotte is still doing well today.”