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Marposs, the success of Italian technology in China

November 23, 2021

Abstract : The company visit organized by the China-Italy Chamber of Commerce (CICC) at the Bologna-based Group's plant in Nanjing highlighted success and issues related to Made-in-Italy manufacturing sector in the Chinese market.

MILAN, Nov. 19 (Class Editori) -- The majority of Italian companies active in China suffered the suspension, reduction of electricity at least 2 days a week, from 8 to 24 hours, with very short notice: most of the respondents were notified by message within hours of the suspension of electricity.

The economic impact on company revenues is not yet really decipherable and it is not very predictable, but it is certainly significant: "numerous businesses, both large and small, are suffering across China, especially in Jiangsu Province," Carlo Nizia, MEWG Vice-Coordinator and Risk Management at UFI FILTERS, explained.

This emerged from the last company visit of Italian firms at Marposs (Nanjing) organized by the MEWG Intercompany Network, the series conceived by the Mechanical Engineering Working Group of the China-Italy Chamber of Commerce (CICC) which brings together many Italian and Chinese companies operating in the manufacturing sector.

"Italian companies are heavily affected by the recent restrictions on power cuts and coerced production shutdowns often with a very short notice and lack of clear information," Vitali, CICC Board Member based in Nanjing, underlined while mentioning some data about the CICC Survey on Restriction for Power Consumption which showed that 83% of respondents faced the problem of electricity cuts, and 70% have been contacted by local authorities for this issue.

During the visit, which was attended by Alessandra Palumbo, Commercial Consul of the Consulate General of Italy in Shanghai, Paolo Bazzoni, CICC Chairman, who was connected via video conferencing, recalled that the mechanical sector is among the most important and representative of the CICC membership base, which includes 800 members and partners overall, since it brings together over 150 companies who represent Italian technological excellence in China.

On the occasion of the visit, Riccardo Budriesi, President of Marposs China, and Fabrizio Giambra, President of Marposs Nanjing Automation Company, recalled that "as a worldwide leader in measurement, inspection, testing and process monitoring solutions, Marposs designs and manufactures a wide range of products and applications. Marposs is a primary supplier in automotive and mechanical precision components manufacturers, machine tool makers, battery, energy and electrical vehicles producers, aerospace, biomedical and consumer electronics".

One of the jewels in the company's crown is the Hi-Tech Enterprise & Technology Center, able to combine in the same manufacturing site a wide range of our products, from a measuring cell up to complete measuring machines and assembly lines.

The meeting promoted by the MEWG, the aim of which is to foster closer relationships among CICC members and to address topics of common interest that can help companies develop more business or solve problems of various kinds, has also been an occasion to discuss the business trend in China, which entrepreneurs face with optimism and worries.

48% of Italian companies increased by over 20% their revenue in China in 2021, but there are growing concerns for 2022 related to the supply chain, the procurement of raw materials, Logistics and Human Resources. Another topic which emerged from the discussion regarded the manufacturing sector and, in this respect, Giada Piccinini, Head of Shanghai Office and Senior Tax Advisor at GWA, analyzed and explained the tax relief measures applicable for different type of manufacturing companies while giving practical suggestions for optimizing their financial position.

Marposs, one of the pioneers of Italian technology industries in China, was established in Bologna in 1952 and it is currently led by President Stefano Possati, thanks to whom the company has become a world leader in its sector. Marposs supplies precision gauging, testing and process monitoring equipment to industries worldwide, from traditional sectors such as automotive and mechanical processing, to emerging market sectors such as aerospace, electro mobility and consumer electronics, thus paving the way for the expansion and success of Made in Italy in the Asian country and globally.

In the last 20 years, Marposs began a program of acquisitions of solid, well-structured companies, each able to supply a top-quality product in its field, thus growing till reaching 500-million-euro revenues, 90% of which coming from foreign markets with 3500 direct employees able to deliver application and service support virtually anywhere in the world.

Marposs landed on the Asian Market in the 1970s with a Hong-Kong based trading company named MG Asia Ltd. and, after 20 years' development, established its own company in Shanghai, China, in 2006. In 2008, Marposs Nanjing was totally invested by Italian Marposs Group with the aim of manufacturing the same quality products with Italian Marposs Group and serving the Chinese market directly.

Nowadays China is Marposs' first market for direct sales, accounting for around 20% of revenues. Its main destination markets are automotive, especially New Energy Vehicles (NEVs), mechanical precision components, consuming and white goods, and semiconductors.

70-year-old Stefano Possati, who represents the second generation of Emilian entrepreneurs, is the Chairman of the company based around 30 km away from Ducati and Ferrari headquarters and is one of the leading figures of the Emilian Motor Valley, where cutting-edge industry 4.0 is developing. "We apply the 4.0 concept not only to our plants, but also by producing cars with a network of sensors which allow them to dialogue and exchange data with other vehicles," Possati reiterated several times while mentioning his commitment to the green revolution started by the automotive industry. "The position of the EU, especially of France and Germany, is much more radical than the more uncertain US one. EU manufacturers want to rapidly proceed towards green transition," as added by the entrepreneur who has been working on control systems for electrical engines for at least six years.

"You can emerge stronger from change and crises. In recent times, we have also designed technology for inspecting and monitoring batteries that work with hydrogen fuel cells with a view to developing new alternative energies for sustainable mobility".

Marposs is also an integral part of the development of the e-Valley, which has been accelerated by the project between FAW, China's largest car manufacturer, and Silk EV, which is specialized in car engineering and design, that created a Reggio Emilia-based JV to design and produce high-end all-electric and plug-in cars in the district.

(Source:Class Editori)

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Keyword: China-Italy Chamber of Commerce


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