JEC COMPOSITES MAGAZINE - Issue #48 - May 2009 - 12

COMPANIES COMPANIES AN INTERVIEW WITH ROBERTO BORGONOVO, GENERAL MANAGER, RANGER SHANGHAI CO., LTD Chinese regions like Anhui or Jiangsu, which are full of potential customers. Shanghai is also a port, so it’s easy to communicate with the nearby Asian countries and with our mother company. JCM: What types of markets and customers are you targeting first? R. B.: Here in China, we are focused on two technologies: SMC and D-LFT. Our primary target is our European automotive/truck customers and any western customers that are opening branches or relocating some products already made in Europe to here. With them, it’s easy to connect and we have a competitive advantage, because the quality standard and the general requirements are higher than those of Chinese automakers. Our second market includes some European customers who operate in other markets (agricultural machines, electricity, etc.) and already use our technologies in Europe, but are unable to find a suitable moulder here. Finally, we have the local Chinese automakers or truckmakers. It’s very hard to deal with them, because they aren’t used to composites and they are really price sensitive. And since quality is a secondary aspect, we suffer a lot from local competitors. JCM: Do you intend to serve other markets besides the Chinese market? If so, which ones? R. B.: This company serves as a kind of Asian headquarters for Ranger. If we have the opportunity, all the closer areas (Japan, South Korea, Thailand, Taiwan, Singapore, Malaysia) are potentially good markets. For the moment, we are intensifying our contact with potential Japanese customers. Then, we could also help out our mother company in Europe for certain kinds of production, for example spare parts. The quality JEC Composites Magazine: Are your interests well-served by having an independent foothold in China rather than partnering with a Chinese company? ROBERTO BORGONOVO: Sure, we faced the decision in 2006 when we were on the verge of signing the contract to buy the land. What we have chosen is a longer way, because starting a company from zero is already a challenge in China. But being independent, we’re sure that no one will touch our technology background. We also avoid one of the biggest problems of joint ventures, which is timing in the decision-making process. On the other side, my Italian colleagues and I had to learn much more about how to deal with a completely different culture, but the team is quite young, flexible and open to this experience. In any case, from what I’m experiencing, being independent enables the company to be much faster and more customer oriented on the market. I’d never suggest to a relatively small/medium-size company like us to establish a joint venture! JCM: Why choose the Shanghai region? R. B.: For different reasons, mainly because our first contact and order in China was with a Shanghai OEM (Shanghai Volkswagen); also, because Shanghai is one of China’s automotive poles, where you find the biggest automakers (Shanghai Volkswagen and Shanghai General Motors) and the most important suppliers. Being here makes it very easy to find everything you need in terms of products and services. Our company is located in the north-western corner of Shanghai, and from here it’s very easy to serve other requirements for these parts are lower than those for serial production. The batches are smaller, which can be problematic for a company used to working on large batches, like our mother company. Naturally, this potential activity would depend on the logistical impact and the exchange rate of the euro. JCM: Can you develop specific parts directly from Shanghai, or do you have to go through your European R&D departments? R. B.: We can develop them from here, but with the help of our mother company. There’s an Italian engineer here who can help for development. However, the idea for future projects would be to have some Chinese staff connected with the development; in any case, ideas and solutions always emerge after a team work with our Italian colleagues. JCM: When do you think you will be able to reach full productivity? R. B.: I think next year is very important for our company, because it’s really our first year with real mass production. We have had the time to prepare well, so I hope that, next year, all the objectives will have been reached. The first objective is to have a productivity rate similar to Europe. Next year, we will use only 33% of our potential, in terms of capacity. I plan to have the presses completely full at 90% of the theoretical by 2011. JCM: Do you already have new investment plans? R. B.: For the moment, the painting activity is still being outsourced, and that is all the plant in Shanghai needs to complete the cycle. Before thinking about new plants or expansion or growth, first we have to pay back our current investment and achieve good profitability for the Shanghai plant. FREE subscription form www.jeccomposites.com/magazine-subscription 26,583 copies total qualified circulation, BPA Worldwide, December issue 2008 12 jec composites magazine / No48 May 2009

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JEC COMPOSITES MAGAZINE - Issue #48 - May 2009

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