Articles

OPEN FORUM WITH FRANCK RETTMEYER, CHAIRMAN & CEO OF THE ALLIMAND GROUP

UPDATE ON ECONOMIC ACTIVITY MID-YEAR “BUSINESS IS ABOUT TAKING RISKS…!”

In an unstable international context of the political, economic and financial situation, the corporate world is looking for answers to the daily questions concerning its future. However, more than ever, Franck RETTMEYER, CEO of the ALLIMAND Group, designer and manufacturer of paper and fibrous materials machinery since 1850, continues the growth dynamic. He highlights the significant increase in order intake of 15 to 20% since the beginning of the year. Let’s take stock of the Group’s economic activity, mid 2016.

A LEVEL OF PARTICULARLY SUSTAINED ACTIVITY FOR THE ALLIMAND GROUP

Since 2014, France has lost its position as the fifth largest world economy, dethroned by the United Kingdom. The country struggles to emerge from the crisis, despite a rebound in GDP growth in 2015 (1.2%), supported by the recovery of public and household consumption. It is estimated that growth will be of 1.4% in 2016, below its pre-crisis level.

What is the level of activity of the Group ALLIMAND?

Franck RETTMEYER : We recorded this year a significant increase in our order books intake of 15 to 20 %. These orders include paper machine rebuilds for the packaging and board industry and complete paper machines in France, Asia and the United States. These orders mainly concern special paper machines, paperboard machines and nonwoven machines, two sectors that invest regularly worldwide.

JOB CREATING GROWTH…

Will this strong growth create jobs within the ALLIMAND Group?

Franck RETTMEYER : Yes and no. We have set up a 4 year employment plan, consisting of recruitment of new skills and qualified personnel. More specifically, we regularly hire each year paper engineers, process engineers, mechanics and technicians to operate the “latest generation” machining centers. A lot of candidates come from the Rhône-Alpes area, but we also hire people from all geographical origins.

ZOOM IN ON A GROWING NICHE MARKET: SOUTH AFRICA…

You have just returned from a trip in South Africa… As President of SYMOP (Union of production and technology manufacturers for the paper industry), you organized two conferences in South Africa to meet the papermakers of this country. Can you tell us more…?

Franck RETTMEYER : Whether in Durban for the first conference or in Johannesburg for the second, more than 140 paper manufacturers accepted the invitation from the French manufacturers, in a friendly learning atmosphere, to learn about the French offer. A great success, with the added advantage of the strong involvement of Madam the Ambassador of South Africa.

BUSINESS IS ABOUT TAKING RISKS…!

Franck RETTMEYER : In the world’s history, it is the first time that we have ever had such an opportunity: that of having the ability to market our products all over the world…! The future is for those with audacity. But the law based on the precautionary principle, no longer allows the French to start up businesses. It kills the spirit of initiative. Our best talent leaves France because they want to express themselves, where they have opportunity, without being thrashed by taxes. Now starting up means taking risks! A manufacturer must take risks. The group ALLIMAND continues to invest in the renewal of its machine tools park in Rives in Isère (38) and to develop new products for the paper industry.

What are the prospects for the ALLIMAND Group for the coming years?

Franck RETTMEYER : We have a major external growth project for paper with very high added value. It will complement the geographical coverage of the ALLIMAND group, present today in Europe and Asia. This information will be announced in preview in September.

ALLIMAND PRESENT AT IDEA 2016 IN BOSTON

COME AND JOIN US AT OUR BOOTH # 452

ALLIMAND, key manufacturer for the nonwoven market, will be present at IDEA 2016 in Boston from the 2nd to the 5th of May 2016.

You will be able to meet us at the booth 452 where you will be able to find out more about our skills, experience and references in the classic, speciality and hi-tech nonwoven sectors:

• ASupport for customers in their product development,
• Pilot tests for establishing samples for tests and marketing and commercial certification,
• Tailor-made production lines,
• Optimisation and long term monitoring of the production line operational characteristics.

We look forward to welcoming you.

LORIS BAZ, MOTOGP

Having sponsored Loris BAZ for the last two years for the Superbike World Championship, with a promising future, Allimand renews its contract with the young rider for the MotoGP World Championship, the premier class of GP motorcycle racing.

This year is a year of change for Loris BAZ, a new team with a new bike and new rules which will allow him to express his talent. Talent is something the young rider is not lacking. The midseason trials proved that we can count on him to get good results for the 2016 season.

NEW ORDER IN THAILAND

INDUSTRIAL INNOVATION: ALLIMAND WINS AN ORDER IN THAILAND FOR A “LATEST GENERATION” HYDRAULIC HEADBOX

Early this year, the ALLIMAND Group, French designer and manufacturer of paper machines for the paper industry, Rives (38 – Isère – Rhône-Alpes), has just taken a new order for a latest generation hydraulic headbox, to replace one of the existing headboxes of its Asian customer.

The customer, ASIA KRAFT PAPER Group Co, Ltd, is a leading Thai actor in the packaging sector. Highly integrated, it has several processing plants and a paper production plant for packaging, fluting & liner papers on the outskirts of Bangkok.

With a clear technologically competitive advantage, ALLIMAND was quickly able to turn the decision in its favour and convince ASIA KRAFT PAPER to once again put their trust in the industrial SME.

The Asian Customer: ASIA KRAFT PAPER Co, Ltd Group

ALLIMAND is a long-standing partner of the ASIA KRAFT Group, including having delivered and started up the largest of the 2 paper machines in 2002; a complete production line of corrugated base paper with a capacity of 150,000 t/year.

It’s more recently on the oldest paper machine, that ALLIMAND machinery was requested by the ASIA KRAFT Group, with the delivery and commissioning in 2014 of a new FP ALLIMAND headbox for the top wire of the 2 wire part paper machine.

“Latest generation” hydraulic headbox design

Encouraged by the excellent results obtained with this ALLIMAND “SII” headbox on the top layer of this machine, ALLIMAND naturally became a candidate for the replacement of the bottom headbox, decided by the Thai group ASIA KRAFT PAPER Co, Ltd. For this new headbox, ALLIMAND offers the latest evolution S4 of its hydraulic headbox, a concept particularly suitable for flow rates of the lower layer.

A clear competitive “high performance” technological edge

All features (see box below) allow ALLIMAND be able to offer its customers a high-performance hydraulic headbox at a perfectly managed price, capable of covering a wide range of applications on different types of paper.

These technical and economic specificities fulfil all criteria which will enable the ALLIMAND hydraulic headbox S4 to quickly obtain a list of references, after the registration of the order for the group ASIA KRAFT PAPER Co., Ltd., Thailand…

Specificities and technical advantages of the “latest generation” ALLIMAND hydraulic headbox

ALLIMAND Hydraulic headbox S4 is characterized by an extremely compact design, without any compromises being made in respecting the hydraulic criteria which allow ALLIMAND hydraulic headboxes to deliver a perfectly homogeneous spray and an optimum deflocculating effect.

As part of a machine rebuild, its lateral feeding system allows it to be installed on machines with very little space, minimizing the cost of modifying equipment on the approach flow system.

The ALLIMAND hydraulic headbox S4 can be supplied with or without the system of basis weight control by dilution and is suitable for a wide range of papers. It has easy access for cleaning operations by tipping the rear feeding system and if necessary, by the lateral opening of the flanges.

ATIP 2015

A GOOD TURNOUT FOR THE GALA EVENING

A skilfully produced light show set off the machinery in the workshops and set the tone for the exceptional gala evening held at the Allimand headquarters in Rives. A warm welcome for the 250 guests and perfect organization; everything to make for an enjoyable evening.

The gala, like in 2010, was held on the Allimand premises and was a huge success: a good turnout, excellent tempo and a gypsy band to generate a lively atmosphere. This year, Hugues Leydier, Daniel Gomez and Virginie Batais were joined by the journalist and presenter, Jérôme Bonaldi, who having participated in the convention opening ceremony and run the round-table conference, naturally played a part in the evening ceremony as well. As usual, the Progress Trophies and Palmes Innovation awards were presented.

PAP’ARGUS CONFERENCE

HOW TO BECOME AND REMAIN A LEADER IN FRANCE?

Photo Valérie Lechiffre – Magazine “La Papeterie” – ENP Publishing Group

It’s Jean-Pierre Brice Capitalmind,managing partner, who ran the round-table conference dedicated to the French leaders of the paper making industry. What qualities are needed to succeed and what actions need to be taken? In his opening statement, Jean-Pierre Brice mentioned the well-known Mittlestand, the middle market companies which are Germany’s industrial backbone. According to him, in order to become a leader, several criteria must be fulfilled: “Higher than average results in its activity sector, investment and a leadership on target markets”. The companies that participated in the round-table conference fulfil part or all of these criteria. “Furthermore, their shareholders are largely family and, for two of them, they are run by women”, observed Jean-Pierre.

The participants brought together were :

• Sylvie Casenave-Pere, Chairwoman of Posson Packaging
• Simon Cena, Managing Director of d’Allimand
• Nathalie Chapusot, Managing Director marketing /sales and e-commerce delegate for Raja
• Antonio Monteiro, Managing Director “FCR” of Paprec
• Jean-Marie Nusse, Managing Director delegate of Exacompta-Clairefontame
• David Schisler, Chairman of Schisler Packaging Solutions

The vision of the paper machine manufacturer Allimand, was also very clear. Simon Cena highlighted the main assets of the company which is based just outside of Grenoble : “Its independence (with 62% of shareholders being family members), development keeping with market evolution, charismatic leaders, choice, very early on, large-scale exports – in Europe, Asia, North America and tomorrow, we hope in South America – technological know-how and services”. However, the company has chosen to keep the manufacturing of its machines in France. Finally, it meets the needs of traditional and high value added paper making markets (nonwoven, cigarette paper, etc).

An awareness of the economic world since 2001

“Since my first mandate, I wanted to meet the different companies in my town” declared Alain DEZEMPTE, Mayor of Rives. “At the time, I only received three positive responses, one of which from ALLIMAND. We have always maintained a courteous relationship and we therefore set in motion our idea or organising “breakfast meetings” with the companies located in Rives, but without much success. Since then, Rives has joined the greater local economic community which has the economic capacity”. This integration has accelerated investment, for example the renovation of the train station, the Rives secondary school, the residence “le temps des cerises” and the motorway interchange area where more than 73 ha are dedicated to the economy. “It’s a significant improvement” emphasises the Mayor.

Break the solitude by the “network” effect and meetings with the companies of the town

Franck RETTMEYER highlights that when a business owner wishes to set up a business in the town, one of the first steps is to get in contact with the mayor. Generally, business owners deplore the solitude of their position which is why the “network” provides the ideal opportunity to exchange and present their ideas and draw on their colleagues’ “good practice”. The CEO of ALLIMAND is disappointed that the companies in Rives know very little about each other.

September, the beginning of meetings between the businesses in Rives

The Mayor of Rives feels strongly about town independence and is firmly committed to making his town ever more attractive. Alain DEZEMPTE sets in motion the local business “breakfast meetings”, the first one after the summer holidays in September and naturally on Allimand’s premises.

“I would like to highlight the high performance of the ALLIMAND group whose growth perspectives are looking particularly positive for the months to come and its strong social policy” concludes the Mayor. “We continue to support the ALLIMAND group and work for the greater Voiron area, beyond the town of Rives, and its economic development!”

COMMISSIONING OF A MACHINE FOR SPECIAL PAPER WITH VERY HIGH ADDED VALUE, IN THE PROVINCE OF ZHEJIANG, CITY OF JIAXING (NEAR SHANGHAI)

Challenge met! The ALLIMAND Group, French designer and manufacturer of paper machines for the paper industry, will put into operation in July 2015, a new paper machine with very high added value, for one of China’s largest paper manufacturers, Minfeng HI-TECH. The new contract, signed in September 2013, following the launch of an international invitation to tender, reinforces ALLIMAND’s leadership in China in the expertise of designing and manufacturing specialty paper machines.

A long and complex international bidding process

“The Chinese call for international offers for which we submitted a bid incorporated many procedures” explains Franck Rettmeyer, Chairman & CEO ALLIMAND. “The customer finally selected two companies. During the different phases of evaluation, they were especially impressed by ALLIMAND’s technology and prestigious references especially those in China.”

The customer, a major listed company in China

The client, MINFENG HI-TECH, a leading Chinese paper manufacturer and producer of specialty papers, had to conduct a capital investment, both to fund this new machine and the new plant that will host the new site near SHANGHAI, in the province of Zhejiang. This Province, the “Silicon Valley” of papermaking in China, brings together all the plants specialized in the production of paper with very high added value.

A paper machine with very high added value

This machine will aim to produce special paper with very high added value for the Chinese and Asian market. ALLIMAND will provide the complete machine, the stock preparation line and certain auxiliary equipment. The startup will be performed in collaboration with the customer in July. Over thirty people will be dedicated just for the operation of this machine and its auxiliary equipment…

… and controlled energy performance

Particular attention was paid to the level of the electrical energy, water and steam consumption in order to optimize the energy performance of the machine.

The client chose to name this new equipment “Machine No. 1”. Could this be a sign…? To be continued…!

RECORD BACKLOG

RECORD BACKLOG FOR ALLIMAND, FAVOURABLE OUTLOOK FOR 2015-2016

Interview with Franck RETTMEYER, Chairman & CEO ALLIMAND

The ALLIMAND Group, designer and manufacturer of paper machines for the paper industry, reports a record order backlog after a subdued second half of 2014. The Commercial Team and ALLIMAND Research & Development took up the challenge to develop a dynamic development strategy. Meanwhile, a major training device, strongly supported by the state, was set up with its staff. Six months later, ALLIMAND faces a backlog of the best years in its history! Focus…

Mr RETTMEYER, the company ALLIMAND went through a slow down period in the last quarter of last year. So how do you explain that ALLIMAND exports more than 85% of its production and carries this know-how on into the 6th generation…?

Yes, we had an activity almost satisfactory until July 2014, and then from September 2014 to January 2015 our business was lower than our production capacity. This period was not negative because we took the opportunity to launch an extensive training plan.

What were the conditions of the training plan?

This is the DIRRECTE, Regional Department of Enterprise, Competition, Consumption, Labour and Employment, which strongly supported us in conducting this training plan AME * for all our voluntary staff. A total of 70 people of all categories: production operators, Design Department technicians, administrative employees and the company executives, have benefited from training to meet the needs of the Company: information technology, languages, risk analysis, papermaking process management, welding, programming numerical control machine-tools, handling, adaptation, skills development, etc.

What was the amount of the training budget?

112,000 €. I would especially like to thank Ms Chantal LUCCHINO, Head of Service to the economic mutation DIRRECTE, who granted us her confidence. In return, of course, we have not made any redundancies.

Can you explain why the end of 2014 was difficult for ALLIMAND?

Customers had fewer projects, the economic slowdown in Europe continued, growth remained slow and so our customers invested less. In addition, they face the development of electronic communication and must adapt. Some have stopped their production capacities, others thought about transforming their equipment or have diversified to other kinds of paper such as packaging or paper with very high added value.

At ALLIMAND, we used this time to develop a very intensive business development plan and the work paid off! We won two significant orders early 2015, 2 technical paper machines in China, and 1 machine with high added value for a high profile institution in France, finally, modifications of existing machines in France, Germany, Great Britain, Tunisia, Czech Republic, etc.

Commercially, you have also opened a new office in Shanghai in 2014, haven’t you?

Yes, for this new site, the controls are significant and I want to emphasize the rapid repercussions for ALLIMAND and success of our commercial teams.

Did the year 2014 remind you of the period you crossed during the international crisis of 2009?

No, this one was very different. It corresponded with the introduction of a new strategy of our customers, who dragged out their decision making from the end of 2014 to the first quarter of 2015.

What lessons do you draw from this experience?

Well, a company like ALLIMAND, SME specialized in heavy capital goods, is always dependent on the international market. This has been the case for many years! I also want to emphasize that the current policy of the European Central Bank is an excellent policy! The Euro is very competitive, which allows us to be attractive and export abroad. I remain convinced that the support of banks should allow Europe to resume growth at the beginning of 2016-2017.

In addition, we have just taken an order for a paper machine to be installed on French soil! I would especially like to thank the prestigious institution that put their trust in us.

Moreover, we took advantage of this time to raise the level of our teams’ skills through a heavy investment of over one million euros which affects the entire organisation of the company (ERP / PLM**). The objective is to enable us to optimise the management of the company, launch orders, development and monitoring.

In conclusion, it’s “all systems go” for a few years…?

Yes, for at least 18 months. All systems go, the activity is very strong and we are making the most of this time to consolidate our new organisation, namely the integration of our new office in Shanghai in ALLIMAND’s organisation and the launch of new products on the market.

I am a happy CEO! I’m happy that the company’s evolution is taking a turn for the better. I thank all the staff for having taken up the challenge! ALLIMAND will more than double its turnover in 2015 and faces a backlog of the best years in its history to surpass the first quarter of 2015, 72 million Euros.

* AME : Support for economic change. The AME’s approach uses methods of anticipation or accompaniment in modifications and evolutions (Commitments related to employment and skills development, assistance in employment and skills preliminary management consultancy, FNE-Training) which are integrated into a united and simplified framework. Source: emploi.gouv.fr.

** ERP/PLM: Enterprise Resource Planning / Product Lifecycle Management