Internationalization of Danobat Group

GADE2 BIDASOA

INTRODUCTION TO STRATEGYTeacher: Dr. Iñazio Irizar

INTERNATIONALIZATION OF

Saralegui Arana, Miren Josune June, 03rd 2015

Introduction to Strategy

CONTENTS INDEX

INTRODUCTION..................................................................................................................3

HISTORY OF THE COMPANY............................................................................................4

PRODUCT AND SERVICES................................................................................................6

INTERNATIONALIZATION STRATEGY...........................................................................9

CONCLUSION.....................................................................................................................14

BIBLIOGRAPHY.................................................................................................................14


ILLUSTRATION INDEX

Ilustración 1: DanobatGroup..........................................................................................................3Ilustración 2: DanobatGroup..........................................................................................................3Ilustración 3: Horzontal Grinding Machine.....................................................................................6Ilustración 4: Bed Type Milling Machine.........................................................................................6Ilustración 5: Vertical Lathes...........................................................................................................7Ilustración 6: Saws Machines..........................................................................................................7Ilustración 7: Punching machine.....................................................................................................7Ilustración 8: Automatic Panel Bender..........................................................................................8Ilustración 9: Equipment for railway industry.................................................................................8Ilustración 10: Setting up of the Danobat Group............................................................................9Ilustración 11: Danobat Group’s Commercial Network................................................................10Ilustración 12: Production Plants..................................................................................................11Ilustración 13 : Fuente Danobat Group.........................................................................................11Ilustración 14: Operations at Ideko. Fuente DanobatGroup.........................................................12Ilustración 15 : 14th China International Machine Tool. Fuente: DanobatGroup.........................13Ilustración 16: Fuente DanobatGroup..........................................................................................13


INTRODUCTION

This work deals with the subject of business strategy. In this second activity, I will review what has been the internationalization carried out by Danobat. A company that goes further than manufacturing machine, they innovate in Machine Tools. With more than 60 years’ experience they offer high-tech customised solutions.

DANOBAT is part of DANOBATGROUP and Mondragon Corporation, one of the most important European industrial holdings.

Ilustración 1: DanobatGroup

DANOBATGROUP continues to grow, which makes them strong and provides them with financial and technological strength that are necessary to tackle the challenges the future will demand. This is why even in difficult times, they continue to invest.

But there are some objectives which never change. That is why today as in the past, their goal is to provide their clients with profit, and make them feel that their service and support are close by.

Ilustración 2: DanobatGroup

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HISTORY OF THE COMPANY

1910

Machine Tool construction begins in the area.

1954

DANOBAT is established

1962

SORALUCE is established.

1977

The founding partners of LATZ hold their first meeting.

1986

Creation of IDEKO, a Technology Centre specialized in Machine Tools.

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1992

Constitution of the MCC. DANOBATGROUP becomes member of MCC.

Constitution of BIMATEC-SORALUCE sales & service company in Germany.

1992-97

Sales & service offices opened in China, Germany, France, Japan, Italy USA and Brazil.

2002 -2003

Acquisition of German company OVERBECK (2002) and English company NEWALL (2003).

2004-2008

GOIMEK is established – a factory specialized in high precision machining (2004). One year later, DANO-RAIL starts its activity focused in supplying equipment for the railway maintenance (2005).

In 2006, they bought EUROFIBER, a company producing equipment for the automation of composite manufacturing processes.

In 2007, IDEKO opened its second research facility and in the same year, DANOBATGROUP established a joint-venture company in Romania – DANOMAR- for machine components production. In 2008, new sales & service offices opened in India and USA.

2009

SORALUCE opens a new assembly facility for big size machines.

DANOFIBER is established to produce equipment for the automation of composite manufacturing process.

DANOBAT RAILWAY SYSTEMS starts its activity focused in turn-key solutions for the railway industry.

2010

DANOBATGROUP starts the construction of a new facilities in India and in the same year, opens new facilities in China.

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PRODUCT AND SERVICES

The DANOBATGROUP offer is commercialized under two product brands:

DANOBAT, a reference in specialized solutions for: grinding, turning, sawing and drilling, punching, bending, laser cutting, automated production systems for composite structural components and turnkey solutions for the railway industry and

SORALUCE, leader in milling machines, milling-boring machines, milling centres and vertical turning centres.

DANOBATGROUP offers the following range of manufacturing technologies:

GRINDING MACHINES “World leadership in aerospace industry”

Working together with the most prestigious worldwide customers, they provide highly flexible solutions. Evidence of this is the fact that 95% of the airlines use their advanced technology.

Ilustración 3: Horzontal Grinding Machine

MILLING & BORING MACHINES

SORALUCE specialises in the design and manufactured of advanced technology and high performance Milling Machines, Milling-Boring Machines and Milling-Turning Centres.

A brand distinguished by its great reliability, high performance and advanced technology, offering solutions geared to productivity and efficiency.

Ilustración 4: Bed Type Milling Machine

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LATHES

They are always next to their customers, sharing their knowledge and responding to their specific needs. DANOBAT and SORALUCE provide turning centres capable to perform multiple operations, focused on the most demanding industries.

Ilustración 5: Vertical Lathes

SAWING & DRILLING

Their band saws provide solutions for solid bars, tubes and pipes with the highest accuracy. Band saws up to 1300mm, band saws for big dimensions pieces, vertical cutting and mitre cutting band saws are the solutions offered DANOBAT.

Ilustración 6: Saws Machines

They have two types of drilling machines: T3CH with three heads, automatic and multifunctional and IDP+ machine, a revolutionary combination of two technologies established in the field of the steel construction industry, THERMAL CUTTING and DRILLING, which allow to perform both machining in a single machine.

PUNCHING MACHINES: “A new generation of technology in punching machines”

Their punching machines are recognised by their technology and performance, being best choice to ensure high productivity with a minimum consumption.

Ilustración 7: Punching machine

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BENDING MACHINES

DANOBAT is specialist in automatic bending technology, offering the PG panel bender range. Thanks to its single tool concept, the machine is both highly productive and flexible.

Ilustración 8: Automatic Panel Bender

LASER CUTTING MACHINES

DANOBAT bets on fiber technology applied to laser cutting. The advantages offered by fiber in laser cutting include specially the reduction in energy consumption, as well as the costs of maintenance and consumables.

EQUIPMENT FOR THE RAILWAY INDUSTRY

They offer complete solutions for the manufacturing processes of railway parts such as axles, wheels, wheel-sets and bogies. They study each customer needs and requirements and provide tailored solutions.

Ilustración 9: Equipment for railway industry

COMPOSITES AUTOMATION INTEGRATOR

DANOBAT composites is a Disruptive Automation Integrator that combines their industry knowledge with their in- house manufacturing expertise to deliver tailor made turn-key solutions. Disruptive solutions are the result of a close collaboration with their clients thanks to the Advanced Relationship Model.

CUTTING TOOLS

LATZ Cutting tools are well-known for their high precision, reliability and cutting edge technology. LATZ designs, produces and commercializes standard and special HSS and Carbide cutting tools for the main industrial sectors (aeronautics, automotive, industry, etc…)

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INTERNATIONALIZATION STRATEGY

As is well known, globalisation is one of the principal phenomena determining the future of the general business environment of any company. Succinctly, there are four interrelated factors which have given rise to the process of economic globalisation and one of them is the internationalisation of markets.

Danobatgroup is not divorced from the phenomenon of globalisation of the markets and competition. Nowadays, many cooperatives are left with no other choice, if they wish to continue being competitive and remain in the market.

Danobat exports around 90% of its production and due to its excellent year in 2008, it received the Chamber of Gipuzkoa’s award for internationalization.

CONDITIONS BEFORE THE GROUP WAS SET UP

In the recent history that we have just related, the most important event for the future was without doubt the creation of the Group.

In this event a key role was played by the Caja Laboral, a credit cooperative set up within the Mondragón Group by the industrial cooperatives themselves.

Ilustración 10: Setting up of the Danobat Group

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Through this entity the performance of the economy in general was observed, with particular attention paid to the field of machine tools. The crisis affecting Western economies hat to reach Spain and the demand placed on the manufactures in the sector was going to increase dramatically owing to the increase in competition and to rapid technological advances. It would be necessary also to have specialized know-how. Market demand is more and more for machine complexes that will provide the client with an overall solution, the one supplier being responsible. Danobat and Soraluce were two companies of Mondragon that produced the same product for the same client without exchanging information or know-how.

With its consolidation, the DanobatGroup redistributed manufacturing assignments. This made possible for each cooperative and plant to be more highly specialized.

The setting up of the Group was not an end in itself. The important thing was that the Group should function, that it should facilitate the objectives with a view to which it had been created. With setting up of the Group there was a possibility of supplying its automotion clients with overall solutions.

In undertaking to supply overall solutions, the Danobat Group bases its operations on three principles:

The first of these is to facilitate partenariat formulae between client and supplier in order, to arrive at solutions more suited to the client’s needs.

The second is to free the client from the need to monitor, coordinate, and receive from a plurality of suppliers.

And finally, responsibility for the project is assumed by one single supplier.

At the present moment this strategy is highly effective for the Group. Very few manufactures around the world can supply solutions of this type at the same levels of quality and price as those offered by Danobat.

DANOBATGROUP’S GLOBAL PRESENCE

Danobat Group count with 15 top class manufacturing facilities, international branch offices in key strategic countries, and a professional representation network to complete its presence worldwide.

Always next to customers, Danobat Group serves the best attention and offers a customized service in local language and timetable.

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Ilustración 11: Danobat Group’s Commercial Network.

Ilustración 12: Production Plants.

Ilustración 13 : Fuente Danobat Group.

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RESEARCH, DEVELOPMENT & INNOVATION CENTRE

The Group has its own technology centre, Ideko. This is an indispensable backup where the design and development of the product are concerned. Ideko seeks to innovate, to improve on components and on complete machine tools. The new machines from each cooperative in the Group are validated by a team of engineers from the technology centre.

Danobat’s clients, many of them big multinational car makers, are generally not involved in design. They show Danobat the piece that they want the machine tool to be able to make. The requirements become more and more rigorous.

Ilustración 14: Operations at Ideko. Fuente DanobatGroup.

HEGAN: A CLUSTER ASSOCIATION

Two years ago, DanobatGroup became part of the Aeronautics and Space Cluster of the Basque County, the Hegan Association, a body created to enhance, promote and boost the Basque aerospace industry.

Joining Hegan enables the DanobatGroup to strengthen its position in the sector, as it offers opportunities to work together with other partners of Hegan in several projects and to grow internationally in an industry with favourable expectations. Furthermore, being part of Hegan gives access to programs for cooperation, innovation and international promotion in which the cluster association takes part.

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Approximately 18% of orders of the DanobatGroup come from the aeronautics sector with a market share of over 95% of the world market in the sale of equipment to manufacture landing gear and for the maintenance of turbines used in aircraft engines. In 2012, the aeronautics sector stood for nearly 9% of DanobatGroup’s turnover, mainly destined for export. During this last year, the aeronautical activity provided work for 6% of the total staff.

DanobatGroup customers include leading manufacturers of engines and landing gear, and most airlines, such as Airbus, Boeing, Rolls-Royce, Snecma, Lufthansa, Iberia, American Airlines, IHI, Aena, Avio, Messier Dowty and Pratt & Whitney.

DANOBAT’S PRESENCE ON FAIS

Participation in international fairs is one of the most important tools for business globalization and DanobatGroup knows this theory very well. For this reason, their presence in the most important trade fairs is much known. Only in this 2015, they have already been in more than 10 trade fairs.

Bellow, some trade fairs where Danobat has presented their products only in this first 5 months.

DanobatGroup will exhibit the latest developments and technologies of its two product brands, DANOBAT and SORALUCE, at the 14th China International Machine Tool Show- CIMT 2015- . The fair will take place from 20 to 25 April in Beijing.

Ilustración 15 : 14th China International Machine Tool. Fuente: DanobatGroup.

Together with CIMT 2015, DanobatGroup will be also exhibiting its most advanced technologies at INDUSTRIE LYON 2015 from 07 to 10 April at Euroexpo in Lyon.

Danobat composite developments will be showcased also at JEC EUROPE composite show and conferences in Paris, from 10 to 12 March 2015.

Danobat latest developments and technologies for Railway industry will be exhibited at SIFER fair from the 24th to 26th March in Lille, France.

Latest Soraluce developments exhibited at INTEC 2015, from 26th to 27th February in Leipzig, Germany.

PARTNERSHIP AGREEMENT WITH CHINA CNR CORPORATION LIMITED

DanobatGroup signed in 2012 a joint venture contract with the Chinese railway equipment manufacturer, Beijing Feb. 7th Transportation Railway Equipment Co. Ltd. Owned

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by CNR Corporation Ltd, to manufacture equipment for the maintenance of the Chinese railroad rail treads.

Through this Joint Venture, Danobatgroup aims to increase sales of railway equipment in China, by supplying the equipment that the Chinese Ministry of Railway plans to acquire in the coming years to maintain the new subway lines, suburban trains and high speed trains that are currently constructing all along China.

With the commissioning of this company, DanobatGroup expects to duplicate its turnover in the Asian country, where the group has 28 years of experience and which has become the first market for the Group, surpassing Germany.

Ilustración 16: Fuente DanobatGroup.

CONCLUSION

DanobatGroup – European leader in machine- tool manufacture- innovates and delivers turnkey solutions and stand-alone application oriented machine for high tech industries and customers demanding highest technological requirements.

It is a co-operative Group, competitive, profitable and entrepreneur in a global context, offering solutions and services to the market based on the experience, knowledge, innovation, inter-cooperation and strategic alliances; and, through commitment and our cooperative identify generate sufficient wealth to provide value –added employment and progress to the society.

The strategic objectives of Danobatgroup are:

To provide the market with hi-tech machinery and turnkey solutions. To contribute to the satisfaction of customer needs. DanobatGroup helps its customers

to find the right solution. Based on specific customer’s demands and our know-how, DanobatGroup’s application engineers design a perfect plan for each machine.

To position the Group among the Machine Tool sector leaders International expansion To actively contribute to the technical, professional and human development of our

worker-members

BIBLIOGRAPHY

danobatgroup.com (online) en http://press.danobatgroup.com/ [ 20/04/2015]

slideshare.net (online) en http://www.slideshare.net/bittorinarra/danobat [ 18/04/2015]

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http://www.slideshare.net/bittorinarra/danobat

http://press.danobatgroup.com/


http://91.121.77.230/e_casos/cast/pages/temas/temas-ant/pdfs/en/DANOBAT

%20INGLES.pdf [ 19/04/2015]

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http://91.121.77.230/e_casos/cast/pages/temas/temas-ant/pdfs/en/DANOBAT%20INGLES.pdf

http://91.121.77.230/e_casos/cast/pages/temas/temas-ant/pdfs/en/DANOBAT%20INGLES.pdf

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Internationalization of Danobat Group