Jean-Pierre Zaffiro Global Product Director, Tower Cranes, Manitowoc Cranes May 12, 2011 Counter the counterfeit Identifying and managing counterfeit tower

Jean-Pierre ZaffiroGlobal Product Director, Tower Cranes, Manitowoc CranesMay 12, 2011

Counter the counterfeitIdentifying and managing counterfeit tower crane parts

Counter the counterfeit2 Counter the counterfeit2

What is the problem?

• Marked increase in illegal copies

• Starting to target Europe, after Asia and Middle East

• Easier access – strong internet presence

• Increased number of recorded incidents

• Difficult to identify

• Counterfeits infringe patents, trademarks, legal contracts

Counter the counterfeit3

• Legal: Does not comply with manufacturer’s specification

• Safety: Insufficient strength due to sub-standard manufacturing

• Liability: No warranty and no insurance to cover any loss

Why are counterfeit components dangerous?


• Strength: Some counterfeits use substandard steel. Causing a higher risk of material failure, resulting in a higher risk of crane instability

• Resilience: Very important as jerking can occur. High-grade steel is more ductile, especially in cold climates. Counterfeiters do not guarantee what steel grade they use as they buy it from questionable suppliers

Safety issueSource of steel, strength and ductility


Structural welds on a counterfeit may look good on the outside

• Only testing can reveal the truth

• Counterfeit tower section weld joints have poor workmanship and do not reach an acceptable standard

• What is their standard of welding?

• Do counterfeiters test their welding?

Safety issueWelding quality


A good quality management system is essential for high quality and consistent products

• Counterfeiters copy dimensions, not manufacturing standards

• Manitowoc’s Quality Management System is certified to ISO9001 by the German certification body TÜV

• Counterfeiters do not operate a quality checking system and the product does not have a guarantee

Safety issueManufacturing standard


• Working cycle is the number of work cycles before the component fails

• Governed by steel strength and grade, standard of manufacturing, welding, etc.

• Counterfeiters use sub-standard steel, inconsistent manufacturing processes, weld joints, etc.

• What can you expect? Short product life

• Counterfeiters do not test parts for fatigue —Original Manitowoc components will fully withstand the stresses imposed on them for many years

• Our success rests on a respect for crane construction standards, 80 years of experience in design and calculation and the latest state-of-the-art production methods.

Safety issue Working (fatigue) cycle


Why do we care? Safety, safety, safety

If it does not comply with the manufacturer’s specification, it could be dangerous!

• Cost savings will be small

• Accidents are expensive

• Generally, you get what you pay for


Counterfeit components Huge risk, little reward

• Pins

• Masts

• Motors

• Fixing angles



• Fixing angles



• Fixing angles


Consequences for manufacturer

• Loss of revenue

• Reduced return on investment in R&D

• Undermines differentiation strategy

• Loss of reputation


Consequences for user

• Major accident

• Manufacturer warranty is void

• Loss of CE-mark (within Europe)


Manitowoc fights counterfeits


Fatigue test on counterfeit

Mast sections life cycle: Two original and one counterfeit

Potain PotainCopy

• Counterfeit fails before the designed limited cycle


Structural integrity investigation Surface protection tests

• Standard comb test: Outer layer and primer degraded, early corrosion

• Salt spray test: Surface protection quickly degraded

Control sample (expected result)

Test samples


Structural integrity investigation Welding

• Visual variations in quality

• Overall welding defects:

• Poor weld fusions

• Worm-hole porosity

• Lack of root or inter-run fusion


Structural integrity investigation Steel grain

• Micrographical examination

• Inconsistent steel grain size

• Significant areas of large grains


Manitowoc Chinese factory action plan

• New process now in place at our Chinese factory


Manitowoc’s internal activity

• Ongoing investigation process to identify counterfeiters

• Internal task force to report cases

• Dealer education program and specific training

• Making technicians available for on-site checks


Manitowoc’s external activity

• Promoting issue in trade media

• Improving information available to end users and authorities

• Tighter legal agreements, contracts, patents and trademarks

• Improving information security

• Working with trade associations


Manitowoc’s external activity

• Promoting issue in trade media

Documents

Jean-Pierre Zaffiro Global Product Director, Tower Cranes, Manitowoc Cranes May 12, 2011 Counter the counterfeit Identifying and managing counterfeit tower