Interview given to PrimaMonza by Netweek Group [available in full at the following link]

 

Since 2020, the Veduggio-based multinational has invested 120 million euros for the epoch-making transformation underway

The small metalworking company founded in 1939 has today become a world-leading multinational specialising in innovative fastening systems, especially for the automotive sector. Today Agrati is present on 3 continents with 12 production sites, 5 logistics centres and employs over 2,400 people. The Brianza-based colossus buys 160,000 tonnes of steel, develops 850 products per year, produces 8 billion parts and assembles more than 40 million cars worldwide, resulting in a turnover of EUR 735 million in 2023. A colossus led by Paolo Pozzi, CEO of Agrati and President of EIFI, the European Industrial Fasteners Institute.

The actual context

The last few years have been extremely difficult for companies that have had to deal with economic crises, pandemics, rising raw material prices, inflation and wars. Agrati has shown not only resilience but also continued to grow by becoming a world leader in fastening systems. How did you manage this and how do you plan to deal with new challenges such as energy transition, digitisation and AI?

We have handled all these difficulties with the right determination, aware of what we had to do, having a clear mission to follow,’ began CEO Paolo Pozzi. ‘In recent years we have not made any acquisitions, but we have invested a total of over 120 million to improve sustainability, processes, efficiency, and increase production capacity. In the meantime, we have laid the foundations for tackling the energy transition, accelerating digitisation and addressing artificial intelligence. Perhaps the greatest complexity has been the Great Resignation, the result of a new attitude to work, especially on the part of younger people. We struggle to find general staff, specialised technicians and even managers also because of the increased turnover.  Today there is less inclination to go to work in a manufacturing company like Agrati that works three shifts. This phenomenon makes companies weaker because the stability of organisations remains an added value. But of course we do not give up: we offer a stimulating environment and workplace, evolved welfare programmes; we have set up numerous collaboration projects with high schools and universities; Agrati University is now 16 years old and has over 60 courses globally with the support of over 50 in-house trainers.

Can you tell us in a little more detail what you do for human resources in terms of welfare? What actions do you take to retain employees and attract new talent?

We guarantee working flexibility and smart working wherever possible; we organise sports and recreational activities, also to experience the company in an informal way; we promote corporate volunteering by allowing employees who wish to do so to dedicate a day of their working week to an association to help fragile people. We have a canteen that provides a wide range of services, including catering for special diets. We have a platform where employees can transform production and attendance bonuses into credits to buy vouchers of various kinds: groceries, holidays, fuel… We pay a lot of attention to human resources and in particular to new hires: since 2015, new employees, four to five months after joining Agrati, are invited to an informal lunch with the President and some members of the Management to exchange views; this initiative every year at the Veduggio headquarters alone allows us to start an open discussion and constructive dialogue with at least 25 new hires.

Innovation and sustainability: what Agrati does

What is the role of the Veduggio Tech Centre and Tokbo, the IntelligentTalking Bolt Network that brings IOT to the fastener industry?

Tokbo today is a company with its own organisation but was born in the Agrati Tech Center: the idea dates back to 2018, while the technology was tested and validated in 2019, patented in 2020 and launched in 2021. It is a start-up that is enabling us to put electronics alongside mechanical fasteners, giving ‘intelligence’ to the bolts by enriching them with sensors capable of providing precise data and real-time information remotely. In addition to the tension of the bolted joint, the system can measure displacement, vibration and temperature. This data is collected through a digital platform developed by us in collaboration with Enovia, which has a minority share in Tokbo. For Agrati, this is a new business model where in addition to the product we also sell a service that consists of data collection, storage and analysis as well as system maintenance. Tokbo also allows us a very high level of integration between supplier and customer, as well as entering new markets – even international ones – such as rail transport and infrastructure (roads, bridges)…A total of 24 people work between Agrati Tech Center – which is our technology antenna and the group’s research centre – and Tokbo, including technicians, engineers and researchers, which will rise to 30 by the end of the year.

Sustainability today is a dogma. What goals do you have to achieve Carbon Neutrality?

This is an issue we have been addressing very seriously and responsibly for more than five years. We have developed a decarbonisation strategy with the ambition of achieving Carbon Neutrality by 2039, anticipating the EU Green Deal of 2050. The first numbers certify that we are on the right track: – 18% CO2 emissions compared to 2019, + 67% recycled raw materials, + 60% purchases from local suppliers, 20 hours of training per employee, 9.7 accident rate. Work that has enabled us to obtain numerous international certifications and awards.

The internationalisation of the Agrati Group

In 2005 you landed in Shandong, China. After almost twenty years, what is the balance of your entry into Asia?

We saw potential in China before other competitors and we are satisfied with what we have built. Today we have a plant of 35,000 square metres where about 350 people work. Our aim is not to wage a ‘war’ on the volume of standard products but on the quality of special products, and in fact Agrati has established itself on the Asian markets thanks to its innovations. In the first years our production was mainly at the service of the Volkswagen Group and later of other European manufacturers and component manufacturers in China, but today we are working more and more with local customers to become partners of the most important Chinese manufacturers such as BYD and NIO. This is an increasingly global and evolving challenge. Just think that just a few years ago Tesla and the Chinese manufacturers had a completely negligible weight in the automotive market, whereas today together they boast a 15% share that is set to double in a few years’ time.

 In the States you arrived later, but now you have a much more ramified presence. What is the value of your presence in the US market?

In 2016 we entered the US through an acquisition and today it accounts for 25 per cent of Agrati’s sales. The American market has fewer growth prospects than the Asian market, but it remains very dynamic, especially in terms of the labour market.

Plans for the future

There will be some ideas…

We are thinking of building a pole to further enhance innovation, training and marketing activities, perhaps enhanced by other services for employees to make Agrati an increasingly modern and attractive company.

In the past there was talk of the possibility of going on the stock exchange. Is this still a valid prospect or has it been shelved?

 From a theoretical point of view it is still a valid option to open up the capital, today 100% controlled by the Agrati family. But before going to Piazza Affari we need favourable conditions and a purpose, a project to be financed…

Almost a year ago you were appointed president of EIFI, the European Industrial Fasteners Institute, which for the first time is led by an Italian manager. What are your objectives?EIFI brings together all the European associations representing fastener manufacturers working in the automotive and all other sectors. The European sector accounts for 25% of the global fasteners industry, which is worth around EUR 80 billion a year, and this testifies to the importance of the European level in terms of turnover and employment. The aim is to increase visibility, improve relations with decision-making centres at European level, from Parliament to the EU Commission, and to be able to defend the interests and specificities of our industry sector.