Pronovas • Interview: Francesco Chinaglia

OM offensive with new C. I.

OM Carrelli Elevatori Spa is an Italian based manufacturer of forklift trucks and warehouse equipment with a 55 years long tradition. We have spoken with Mr. Francesco Chinaglia, Sales and Marketing Director of the OM Group about the new global player OM.

OM has undergone important changes in the last past years, what are the results of this transformations?

F. Chinaglia: The last past years have been very important ones for OM indeed. One of the most important changes was the seperation of the divisional Material Handling part from the Linde Group and the creation of the Kion Group, consisting of Linde, Still and OM. When OM Carrelli Elevatori S.p.A became, as an independent brand, a part of the Linde Group, it seemed that OM would be only a "regional player" focusing on European markets. After the complete renewal of the manufacturing facilities and our products range, in 2005 the group management decided that OM conquer new markets in Eastern Europe, the Middle East, North Africa and the Far East. In 2004 for example we numbered only 11 dealers in Eastern Europe countries, now we have three times more and during the last two years the number of sold units increased by 200%.

In additon to the concentration in EMEA area (Europe, Middle East and Africa) our strategy is to intensify our presence in Asia Pacific. We are always aiming on a strategy based on the potential of indirect sales network, a typical case is represented by Turkey where, as a result of a partnership with an important local dealer, OM has earned in a relatively short time important market share and the forecast for 2008 show good margins growth.

Since the year 2005 OM is producing forklift trucks in China for the Asian market, becoming thus a Global Player. Could you, please describe the development of this engagement of OM.

There is an outperforming market growth in Asia. What are your expections for this market?

F. Chinaglia: In China OM is working to the development of its own sales network and distributors. Over the past 2 years OM performed remarkably well in China by selling a total of 1110 units. We understood the market needs and provided products at competitive prices. We have invested in human resources, research and development.

We will complete our localization plan during the next two years. In the coming five years, we plan to gain 5% of the Chinese forklift market. The increasing demand for storage and logistics solutions in China offers us much development potential. We strongly believe in the higher growth of the Asian market and are intending to keep on investing there.

What is your strategy for the UK market? Are you planning to develop Your dealer and after sales services network?

F. Chinaglia: Our goal is to strengthen our presence on the market. And of course we want to reinforce our presence on the UK market. Presently we are looking for new dealers to optimize our network in the country and develop new after sales services.

OM is one of the three companies which consists of the Kion Group. In this context, the new coorporate image focussed on the name OM has been widely noticed.

What have you included in the implementation of the new appearance on the market?

Will the new OM corporate identity be used for forklift trucks and for warehouse trucks?

F. Chinaglia: The renewal of our coorporate identity started before the creation of the KION Group, with the renovation of our product range. This rebranding project and the relative corporate identity change has been carried out firstly in China, and then was extended at the beginnning of 2007 to the rest of the world.

This change process came out from the consideration that every successful brand has to rely on a commonly perceived image of the company both externally and internally.

Seemingly our brand has to bring defined attributes that distinguish it from other companies operating in the same business, and it will be used for both forklift and warehouse trucks. To spread out our Italian style, tradition, dynamism and energy, the implementation of a new corporate image was necessary, but I want to underline that the change is not only in the image but in the whole new identity of the company and its culture and structure.

In the Kion Group OM has been described as the energetic and dynamic value brand“.

What is exactly the definition of this rating for you?

From this point of view, what are the goals of OM in the market?

F. Chinaglia: Each brand of the KION Group has been committed to a strategic task for the achievement of the world leadership in the material handling sector. Inside this confirmed multi brand strategy, OM is holding a key role, both for Italy as market leader and for all the other markets. OM as a value brand is commited to supply products with an excellent price/quality ratio. The market trend is that the value segment is constantly increasing, therefore OM will have bigger opportunities to grow rapidly and to target a global market share of 4 % by the year 2011.

OM is wellknown as a manufacturer of forklift and warehouse trucks optimized with technical innovations and ergonomic cockpits.

What are the next steps of OM in research, engineering, design and manufacturing of new forklift and warehouse trucks?

F. Chinaglia: We have to distinguish counterbalanced forklift trucks from warehouse trucks. As far as counterbalanced trucks are concerned, innovations will be focused on comfort and safety and further developments of our “user friendly” concept. Warehouse trucks will follow the development of the increasing complexity of the handling and logistics business.

As working habits are continuously changing we have to renew constantly our products, for example the operator was working half-seated before, now he is completely seated, this implies a different relation between man and machine.

Our new products are characterized by innovative soundproof systems and AC technology to provide customers with increased performances and high quality standards.

Last but not least the design of the famous Italian designer Andrea Zagato that characterizes our trucks, gives them a definitely Italian connotation and is a real added value.

Will You provide new innovative products or services to the costumers in the near future?

F. Chinaglia: Our products range will be continously renewed and widened. At the moment we are introducing to the market the new generation of the XNAac VNA-truck and two new warehouse trucks with AC engines the pedestrian pallet truck TL16-18-20ac and the rider truck TSR 20ac.

We are strengthening the offer of our technical and rental services in order to favour the maximum fidelity of our customers. Rental, in particular in the short-term, allows companies to have a forklift truck available for short periods, for occasional use and for particular situations, such as: seasonal work or period of particularly intensive work, unforeseen and unplanned need for forklift trucks and while waiting for delivery of new forklift trucks. OM technical assistance offers efficient and professional service. A network of more than 200 service centres in Europe and 2,800 technicians operating with the most modern systems of diagnosis and communication guarantees a rapid,

efficient and highly qualified service that meets every client’s specific needs. Through its sales network OM Carrelli Elevatori offers clients an entire range of original spare parts: a guarantee of quality, safety and reliability over time. The Spare Parts Centre in Lainate (Milan, Italy) is updated constantly thanks to and advanced computerized warehouse system and a rapid supply service.

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