HE COMPANY The Bottero group celebrated 50 years of activity in It was founded, in fact, in 1957, by Pasquale 4/2009

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1 126 IN THE SPRING OF 2009, WITH THE POSITIVE RESULTS FROM THE 2008 EDITION OF GLASSTEC STILL IN MIND, GLASS MACHINERY PLANTS & ACCESSORIES PAID A VISIT TO BOTTERO, ONE OF ITALY S MAIN MACHINERY MANUFACTURERS FOR THE GLASS SECTOR, WORKING IN THE HOLLOW AND FLAT GLASS MARKETS, TO SPEAK ABOUT THE COMPANY, BUT ALSO ABOUT THE INNOVATIONS BOTTERO IS DEVELOPING WITH REGARDS TO IS MACHINERY. HE COMPANY The Bottero group celebrated 50 years of activity in It was founded, in fact, in 1957, by Pasquale Bottero as a service company for a glassworks processing flat glass. Over the years, the company has continuously developed and grown, diversifying its production and activities, starting to work in the hollow glass sector about ten years after its founding, and going from local and national markets to worldwide

2 127 markets at the end of the 1970s, beginning of the 1980s. Company growth has been constant over the years, moving from a workforce of people at the beginning to about people at the end of the 1970s, and at the moment, the group counts 1,100 employees and 95 agents and distributors around the world. At the headquarters of Bottero at Cuneo, northern Italy, which was the original location of the company, there are presently more than 800 employees. Supporting the 95 agents and distributors who work in the hollow and flat glass markets,

3 128 An example of Bottero s IS Machine Bottero also has nine commercial branches with the Bottero name and part of the Bottero group: three in Italy, as well as in Germany, United States, France, United Kingdom, Brazil and China. There are in total six production units for the manufacturing and assembling of the machines: four in Italy: at Cuneo, Trana, Pesaro and Vicenza, as well as a plant in Germany, Neuss, near Düsseldorf, and also one in China, at Guangzhou. Key in the success of Bottero is to have all the supply chain concentrated in one site: purchasing, production, R&D, application engineering, sales, customer service and product support are all located at the headquarters in Italy. THE INTERVIEW WITH CLAUDIO BORSARELLI How has Bottero changed as far as management and ownership are concerned? The name Bottero comes from one of the two founders, and the company started operations back in At present, it is still a family-owned enterprise, with the four family partners working in the company, having Fausto Lanfranco as Managing Director since The Bottero brand is now named Glass Technologies, Bottero being the only player in the industry present in all the market segments of the glass industry: hollow, float and flat. The structure of the company is in three different business units in response to these three different market segments: the Engineering Business Unit responds to the needs of different industrial fields, by designing and manufacturing different typologies of lines for the production, processing, handling and packing of float, automotive and laminated glass; the Flat Glass Business Unit provides all the standard tables for loading, tilting, cutting, edging and manipulating of flat glass; the Hollow Glass Business Unit, led by Claudio Borsarelli, provides all the hot-end equipment for hollow glass production lines. THE HOLLOW GLASS DEPARTMENT Success in Bottero hollow glass goes hand in hand with the word flexibility: its equipment, and, above all, its electronic control systems, are renown for granting the state-of-the-art in terms of flexibility. But the definition also applies to how Bottero has always distinguished itself in approaching clients, being available to listen to specific client requests. Another key element is how Bottero has been able to present itself as a reliable partner in emerging countries: a clear example in this field is the impressive number of over 80 complete production lines supplied in the former USSR region, where, in some cases, Bottero has been in charge of the engineering of the hot- and coldends of glass plants (i.e. from furnace throat up to palletizing). Generally speaking, what is Bottero s philosophy with regards to the market, as well as towards its clients? As described previously, flexibility and willingness to listen and

4 Servo Feeder Mechanism Servo Gob Distributor Bottles being formed on a Bottero IS Machine understand our client s requirements have always distinguished Bottero in its approach towards markets and clients. Machine and equipment customization are our standard. Moreover, quality, not only with respect to the equipment we deliver, but distinguishing all the many different steps in the client-supplier relationship: from sales, through all the engineering processes and, last but not least, to all the services in our Product Support portfolio. Finally, innovation: always a key factor in Bottero s approach to the industry, the innovative process in development in Bottero has brought our company under the spotlight, as seen at the 2008 edition of Glasstec. What about the way you face the market, considering that there are a series of companies controlled by the Bottero mother company in international countries? And what kind of input, information and guidelines does Bottero give to its agents and distributors? With five industrial sites and nine commercial locations worldwide and a wide sales network, as you can imagine Bottero has quite a complex structure. But from such organization comes the strength of Bottero Glass Technologies, presenting ourselves as specialists in glass, with the possibility of giving support and highlighting our presence in all areas of the glass sector, with our presence at all the major worldwide trade fairs for both the hollow and flat glass. Moreover, our sales network of approximately 100 agents and distribu- A view of Bottero assembling workshop

5 130 tors, many working for all the different business units, gives us the advantage to receive a huge amount of information and inputs from the market. Historically speaking, everybody knows that Bottero produces forming machines for the hollow glass market, and the present hollow glass market has three leading manufacturers of machinery, two of which are Italian. How does Bottero consider itself - second, third? After over 40 years of hard work to consolidate its position The new Backlash free Takeout Arm as a reliable supplier in the hollow glass industry, in the past two years Bottero has clearly taken the path of abandoning the group of followers. Not only 2008 production volumes position by far Bottero as the second player in the hollow glass industry, but our dynamism and innovative driven approach clearly explain that we aim to much more than a smart follower position in the market, considering ourselves as a real challenge to the market status quo. Belt-driven Baffle Arm How has Bottero structured itself and its business units, above all, compared to its major competitors, where an important part of worldwide turnover comes from spare parts, for example? Bottero has continuously changed and modified its company strategy to improve and make it more suitable for each phase of the market. Another recent development in company organization has been the creation of the Product Support department, a cross structure responsible not only of the promotion of spare parts but also in charge of the different Customer Services for all the different business units. Even if Bottero s service has always been judged of the highest level,

6 machine as per the client s particular needs. Many of our installations are considered as state-ofthe-art as far as quality and timing are concerned. 131 such company development illustrates the aspiration and thrust to keep improving and developing. Within the services Bottero hollow glass can propose, we would like to mention supervision to installation and commissioning as well as turnkey installations, remote assistance available from our headquarters to log in and assist on customer production lines, hot line phone services, training sessions, both in our training facility as well as on site, production experts assistance for production start-ups or specific production support. Being a distinctive element of our service, I would like to spend a few words on installations: as mentioned above we have developed and structured a service of turnkey installations. In fact, in some countries, clients often install the machine themselves but there is always the need for assistance for the start-up or final definition of the machine. In Europe, on the other hand, clients more often request a turnkey installation, which therefore includes the removal of the machine to be replaced and the complete installation of the new Servo Invert Mechanism Let s go back to spare parts that Bottero uses at present, what is their percentage in terms of business compared to new machines? Spare parts cover 15 to 20 per cent of our annual turnover, but activities regarding spare parts are just one of the aspects that Bottero is working on at present. As far as reconditioned machinery is concerned for example, our Group includes Revimac, a company based in Vicenza, northern Italy, specialized in the production and sale of reconditioned IS machines and ancillary equipment. But let me be clear on this point: quality is not open to compromises. Reconditioned Revimac IS machines are sold with the same warranty conditions we propose for new equipment, since the process of reconditioning an IS machine goes through the complete disassembly of the equipment, the replacement of Three-axes RSS 100 Servo Stacker

7 132 Besides reconditioned machinery, Revimac also manufactures a wide range of equipment to be integrated in Bottero or Revimac glass container production lines, such as stackers, cross-conveyors, servo controls and gas fired forehearths, making Bottero/Revimac the only hot-end full liner in the hollow glass industry. Last but not least, Revimac manufactures other ancillary equipment for the hot end, such as constant cushion pump units, mould cooling air control systems, shears coolant mixing units and hot-end treatment hoods as well as cold-end spraying units. all worn-out and damaged parts and, finally, reassembly and cold test run. One more point: no patch-work will ever be proposed by Revimac as only Bottero or Emhart original made equipment is handled. The 45 reconditioned IS machines sold by Revimac in the last five years confirm how this business is still a significant part of our activities in serving the hollow glass industry, unlike our competitors, who are comfortably concentrating just on standard new machines and discontinuing reconditioned machinery from their portfolio. View of a 12-section E-IS Machine There are, in fact, markets where reconditioned machinery has an important role. Certainly. This is particularly true where the key factor in discussion is not just the price, but mostly where it is necessary to avoid downgrading the technical features of the equipment and to keep the project affordable in terms of cost. In this respect, the competence and experience of Revimac have been especially effective in the assessment of client requirements and have led to creative and technically sound solutions for projects otherwise unsustainable economically. Which are the countries where Bottero machinery is more suitable or where you are better positioned and where you have a stronghold? We have a good position in Europe in general, as well as in Africa, South America, Asia and North America. We have, in fact, a global presence and are constantly working to strengthen and improve this presence. Within the other markets, Russia certainly deserves a special role, being a market that has given us the possibility to grow considerably in the past 10 years, with more than 80 complete hollow glass lines installed, and is the country where we are leader in terms of installed equipment. Another market in which we are targeting in order to further increase our presence is Germany, where, at the end of 2008 we took over a production facility closed by one of our competitors, looking to increase our market penetration there with a local presence, and clearly going against the present market trend with many companies opening production units in Asia and the Far East! Considering that until 1999 there were an incredible number of family-owned and run glass-

8 works, but from then most of them have been taken over by large groups, what is Bottero s commercial strategy on working with these groups? The point you are raising is of utmost interest and importance: if you look at the market structure today you discover that less than 20 accounts gather something like per cent of the market installed equipment and this can t be neglected. That is why every day our efforts are moving from more market driven strategies and approaches, to a more complex combination of market and specific key account strategies. There is a great deal of talk about crisis for First of all, how is Bottero dealing with this year and the present situation? And how is Bottero facing the even stronger financial crisis in Russia, where all credit lines seem to have been closed? And what about China? As everybody else in the world and not only in the glass business, Bottero is trying to understand the real effects and moreover the duration of the crisis. Luckily, 2008 was so incredibly positive consider that in 2008 we brought our production capacity to almost three times what it was in 2006 that the first half 2009 is still covered by the long wave of the previous year and even if we do not expect it to be our brightest year, we are not excessively worried about yearly performance. Russia is surely one of the countries mostly involved in the present crisis, not only related to the credit lines issue, but also due to a strong reduction in the consumptions. Nonetheless it remains one of the most interesting and promising markets, which we are expecting to quickly recover and return to previous levels as soon as the crisis is over. The big difference between Russia and China is that Russia doesn t have local manufacturers of machinery for the hollow glass sector. In China, on the other hand, there are a wide number of local manufacturers with their internal quality standards, making China a difficult market to enter. With regards to the total number of lines up and running in China, very few are from Western companies. The Russian crisis and the slowing down of investments will surely affect 2009 results but we at Bottero look with optimism how the series of innovative products presented at the last edition of Glasstec will compensate. INNOVATIONS AT GLASSTEC The product that we presented at the 2008 edition of Glasstec has been called E-MOC and is the new opening and closing device for moulds for IS machines. It has a particular feature, which is that of having the entire mechanism mounted on the top of the section box, making it more accessible and easier to carry out maintenance. The main goals of Bottero with this new product are those of finding a system giving more cooling capacity to the machine. Thanks to 360 cooling, the E- MOC cools down the glass in the shortest possible time and in a highly efficient way, ensuring, if necessary, cooling air for the entire production cycle of the machine. E-MOC is available on all machine centre distances and is retrofittable, granting the possibility to upgrade existing machines. Furthermore, the universal mould holder and mono- Blank side E-MOC Blow side E-MOC 133

9 134 The next question is what are Bottero s next moves? This is just the first episode or as we like to call it just the first of many innovation waves Bottero will present to the industry E- MOC is just the beginning! block quick change inserts dramatically ease daily job change and maintenance operations. E- MOC is designed to grant the same mounting assemblies as standard IS machines and can work with existing moulds. From the description above it is clear how flexibility and efficiency distinguish E-MOC as a unique solution from the rest of the equipment present in the market. Another key factor driving Bottero in all its developments and specifically with E-MOC is compatibility, with existing major equipment (i.e. existing lines) as well as with variable equipment (i.e. moulds). What kind of feedback have you received from the market for this new product? Response has been incredibly positive. There has been interest from our existing clients as well as from new clients. Many of those who saw E-MOC at Glasstec were interested in all the innovative features as well as to the fact that it could be installed on their existing machines. The question that many will ask is it compatible with any IS machine Emhart BDF, Skolstroi, etc.? It has been studied to be compatible with and able to be retrofittable on any machine on today s market, once the specifics of the machine have been verified. In fact, we have already tried the system on some of these machines at clients premises with extremely positive results. BOTTERO S.p.a. Via Genova Cuneo - Italy Tel Fax hollowglass.sales@bottero.com

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