Invitalia English Version

Ziehl-Abegg, a German leader for over 40 years in ventilation systems and motors for refrigeration and air conditioning plants, decided in 2005 to open its first European subsidiary in the Veneto region of Italy, at Dolo, in the province of Venice. The decision was prompted by the desire to enhance service for customers and develop partnerships with them to conduct research into product improvements. Wholly-owned by the parent company, Ziehl-Abegg Italia launched its sales operations in January 2006.
At the Dolo headquarters, which employs 34 people, the company has a warehouse of over 5,000 square meters, an assembly and processing facility of some 1,000 square meters and offices. Since September 2006, the subsidiary also has an after-sales department to provide full assistance to customers. The Italian facility also has a product marketing unit, which provides key support for R&D conducted at the German headquarters, making an essential contribution to the development of all new products.
The Italian market is the leading export market for Ziehl-Abegg and easily the most important after the German market. In 2007, Ziehl-Abegg Italia posted revenues of around €30 million, accounting for 10% of total group revenues.

Let's talk about it with Fabio Tanchis, Managing Director (MD) of Ziehl-Abegg Italia.

Why did you choose Italy for your business and why you decided to invest in Veneto?
Italy is the leading European market in the refrigeration and air conditioning sector, meaning it was essential for Ziehl-Abegg to establish a direct subsidiary to handle sales of its products most effectively.
Dolo was selected as the site for the company because it is a natural centre of our activities: Ziehl-Abegg's main customers are the leading manufacturers of refrigeration and air conditioning equipment, of which 80% are located in northern Italy and 60% in the Triveneto area. Dolo also enjoys an excellent local position.

How have the company's operations evolved in Italy?
After an initial phase, during which we almost exclusively sold final products, in the last two years we have specialized in component assembly and now the company's core products, German electric fans, are assembled using components and accessories manufactured in Italy. The activity in Italy now represents about 50% of total revenues, and this share is set to rise significantly over the next three years.

Did you consider alternative locations to Italy? If so, which and why?
From the very outset, the decision was driven by the need to improve product distribution and be closer to key customers. We did consider some alternatives but they were all within the Veneto region.

While you were getting set up in Italy, what kind and quality of support did you receive?
Having to create a company from scratch, the agency provided crucial help in selecting the perfect location, in establishing contacts with local institutions, in dealing with bureaucratic and administrative formalities and in identifying the most effective ways to recruit staff.

How do you rate the relationship with institutions?
We had no major problems, and in just over two months we went from laying the cornerstone to issuing our first invoices to customers.

How has the Italian market evolved since you have been in the country?
Well, we have only been in Italy for three years, so we have not seen any significant changes in the market. What we can say is that Ziehl-Abegg's position in Italy is enhanced by our direct presence in such a strategic market.

What are the advantages or the new opportunities that the Italian market can offer your industry in the coming years? What are the segments with the best growth prospects?
Despite the growing presence of non-European products, especially from Asia, the Italian market remains the most important at European level, confirming its leadership in the last three years. Only a direct presence in this market allows you to play your hand effectively in an increasingly competitive and demanding environment.

What are your plans for the future? Which segments of the industry will you target for the Italian market and with what strategies? What are your investment plans for the short term?
The company is focusing on three main lines of development: to maintain and consolidate our position in the traditional market, leveraging a renewed product range in step with new market developments; to invest time and resources in promoting advanced, high-efficiency products that currently make a marginal contribution to total revenues but promise to expand substantially; and finally, to significantly increase our local presence with major investments in equipment and technology that will give Ziehl-Abegg a greater degree of autonomy while significantly boosting competitiveness.