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Interviews France Ceric Technologies Boosts a New Era of the Ceric Brand CERIC Technologies prepares to celebrate its 3rd anniversary after taking over the heritage of the previous Groupe CERIC. In order to carry forward and to build on this heritage, CERIC Technologies is doubling the size of its offices and strengthening its organisation with at least 15 additional positions: 2013 is expected to be a break-through year with no less than six new brick plants in the making. Jean-Jacques Wagner (JJW), previous Managing Director of CERIC’s German subsidiaries, and previous International Development Director of the Keyria Group, is now at the helm of CERIC with renewed ambitions. cfi: When did you decide to comeback to CERIC? JJW: Well, I never really lost contact with our industry. Back in 2008 I had the opportunity to acquire a promising patent and create a new and fun company in the decoration business with a few partners in Spain. But I stayed in touch with Ceric Technologies as advisor to its management after its acquisition by Pléiade Investment. They then invited me to become Chairman of CERIC’s Advisory Board, and one thing led to the other … But my decision to become acting Managing Director of CERIC was really based on two major facts: the incredible strength of the CERIC brand and the solid commitment of Pléiade to see CERIC become a major player again. cfi: But hasn’t the fate of CERIC created a completely new distribution of players in the heavy clay business? JJW: Yes indeed, it may look easy to start several new companies out of a former group in the engineering world: there are limited industrial assets or patents in this world where the major assets are people and know-how. However it is a mistake to believe that you can become a major player without a strong name, tens of years of experience, access to flexible financing, a long term focus on innovation, as well as some specific strengths: for instance cfi/Ber. DKG 90 (2013) No. 1-2 Fig. 1 Jean-Jacques Wagner, Managing Director at CERIC Technologies CERIC can rely on it’s PELERIN® brand as well as on CERIC’s original technical staff. After all they are the core of the people who built Ceric in the first place. And they all stayed with the new CERIC team. We are also fortunate to have the blessing of CERIC’s previous founders: Jean Mérienne as well as members of Michel Rasse’s family are amongst our current shareholders. Our customers never lost contact with CERIC’s key people such as Patrick Hébrard (President), Nicolas Ravel (Sales), Laurent Tiffreau (Projects), only to name a few visible ones. And I am pleased to announce that Richard Gaignon and Philippe Hatton will be respectively acting as Marketing and Technology advisors to CERIC starting early 2013. Continuity through technology, continuity through people! And who else can claim 400 references around the world? cfi: How is everyone going to defend its piece of the cake? JJW: A major shake-up may well be possible. With very few new projects and so many hungry suppliers, the market has become a buyers’ market. Prices are no more meant to cover cost plus overhead plus investment (in R&D or industrial tools) as it should be the case in any wealthy and developing industry. Rather we see companies selling off their prod- ucts and services at the “opportunity cost” of maintaining a minimum activity in their workshops to avoid laying-off their core people! The future will tell. I will not comment on the competition, as long as everyone maintains a minimum set of ethical standards. Rather, I wish them all well. cfi: Selling on price is not a survival strategy. How are your visions to overcome the difficulties of the current market situation? JJW: At CERIC we are back to our roots as an EPC company: we concentrate on Engineering and design of innovative solutions, Procurement at best buying practices among a network of select partners and suppliers, and Construction with quality practices and start-ups by CERIC’s long term experts. This is what we do well and what we should concentrate upon, not filling the workshop in the backyard. cfi: But what about PELERIN®? Isn’t that a manufacturing facility where you build your own machines? JJW: Indeed CERIC Technologies employs 45 people in Soissons, where we manufacture our raw material preparation and fabrication machines – and assemble some other components such as burners, handling equipment, etc. And we are in the process of hiring more people. The PELERIN® brand machines are tough machines meant for countries with hard raw materials. Unlike other brands meant for plastic clay, PELERIN® machines are designed for very heavy duty. They are installed in over 60 brick plants in North Africa, and in probably over 50 % of the French bricks and tiles plants. This alone guarantees sufficient output for CERIC, let alone other developing market like Russia or else. Not counting the spare part business. Actually, the PELERIN® brand is so strong that we decided to extend its range of machines (e.g. DEMETER extruder; see text box) and open sales to other heavy clay plants integrators – within partnership agreements. cfi: How does the “engineered/made in France” sell, compared to the “engineered/made in Germany”? E 15 Interviews Fig.2 Etex Koshian: the widest kiln casing for roofing tiles in the world JJW: I must admit that “made/engineered in Germany” has a lot of appeal all around the world, but remember we’re in a niche market where the country of origin is less important. It is up to us to prove that “engineered by CERIC”, “qualitycontrolled by CERIC” and later “serviced by CERIC”, is more adapted to certain markets. That’s what CERIC has been doing very successfully recently, with the redesign and upgrade of it’s PELERIN® range of machines (please refer to the specific articles about our new DEMETER 730 extruder). These new developments were made with a permanent focus in mind: listen to our customers as their needs are changing for higher output, better efficiency, and easier maintenance. As I said earlier, engineering, manufacturing, procurement, but also automation and supervision systems Fig. 3 Thermobooster installed in the Etex Koshian kiln E 16 relate to practices way beyond national borderlines: you have to speak not only the language, but also think within the culture of your customers! Definitely a strong point for CERIC. I would like to add the concept of “innovated in France”. French groups have a definite appetite for innovations, and our long-lasting relationship with them keeps us on the edge of the market’s expectations: be it for answering the upcoming European standards – where CERIC is embarking on an ambitious program – or simply faster service or easier maintenance practices. cfi: What is your vision of the near future? How is CERIC Technologies going to cope with the upcoming challenges? JJW: Regarding the market, as I said before, I do not believe there will be room for so many suppliers, although I believe in the re-strengthening of the market in the years to come. The crisis was financial, not industrial. The need for construction materials remains huge around the world, with major differences in the level of technology. Regarding industrialized countries and their current production over-capacity, the differentiation will come from quality (at a set market price) and efficient production costs. This leaves CERIC with a field of opportunities: we have to work together with our customers to face the challenges set by the “regulators”. Brussels is now paving the way for isolation standards and energy efficiencies of the 2020–2050 era. Ceric wants to be part of the heavy clay game, and many groups understood that working in a collaborative way on innovation is a better long-term strategy for the industry than an adversarial buyer/seller relation. cfi: You mention innovation quite often. What is CERIC Technologies currently working on? JJW: This is an ongoing process in CERIC’s way of thinking. After all CERIC has been THE innovator for the past 50 years, and this goes on every day in all fields pertaining to our business: • Raw material preparation and shaping with the developments already mentioned in our PELERIN® brand • Thermal process: the latest CERIC kiln in Poland, with its Thermobooster and its largest dimensions in the world (224 m long/10,28 m wide) was also built in record time (Fig. 2, 3) cfi/Ber. DKG 90 (2013) No. 1-2 Interviews New PELERIN® Extruder, the DEMETER 730 ER MRP 12-25 CERIC Technologies celebrated on 25th Oct. 2012 at their Soissons workshop the inauguration of a new generation of extruders named PELERIN® DEMETER (Fig. 4). The first machine is already sold to Algeria as part of the delivery for a complete brick plant. The PELERIN® workshop at Soissons were taken over by CERIC in 1982, who was at that time expanding from their activities of an engineering office to an international player for the installation of turn-key brick plants. PELERIN® machines are well known for their sturdiness and are well adapted to properties of the clays mined in South Europe and North Africa (Algeria, Morocco, Tunisia …). The new machine design is the result of market studies on customer needs, which called for: • improved energy efficiency • better access for maintenance of the machine and control of the process • higher through-put capacities • improved opening up of the clay minerals. The R+D efforts have been done in 18 month of development work. The answer of CERIC Technologies to the market is the new 730- series of DEMETER (named after Demeter, the Grecian goddess of the harvest) extruders, which offer a variety of advantages compared to the previous PELERIN® extruder series available up to now. • The de-airing chamber has been enlarged by 40 % to improve the opening up and de-airing rate of the clay. The material has an extended dwelling time (approx. plus 37 %). • For inspection and supervision portholes have been added and access doors at the bottom of the de-airing chamber have been foreseen. • The accessibility of the grids has been improved by doubling the opening of the input tub. • One-piece paddles design (without assembly bolts) in the new mixer are freeing up volume in the tub to improve the intensity of the mixing of the clay. • A feed impeller which is located on every shaft, at the rear of the mixer tank is used to delete the dead area at the stuffing box and start the transfer via the one-piece paddles. • The increased volume of material passing from the mixer to the extruder comes from an increase of the output diameter of the mixer impellers and a more efficient transfer of the clay. • A cylindrical output nozzle, fitted with six knives avoids nearly the dry-clay build-up and reduces the power consumption as friction is reduced. • The energy consumption in total has been reduced by 10 % on the one hand by the new design of the extruder auger and on the other hand by the installation of new SEW-Eurodrive gear boxes with Pelerin® specifications. • The wear protection of the mixer has been improved by a special concrete-based lining. • Sprinkler-type nozzles ensure a homogenous humidity distribution in the mixer. • Thanks to its new de-airing chamber, new screens designs and new auger shaft, this extruder is perfectly suited to plastic clay and even to less plastic materials. • The new extruder is composed of three parts arranged on one single level, which is a great advantage in terms of installation and access for cleaning or for maintenance. The extruder can be installed in 5 days, as it is delivered in three modules (extruder, mixer and gear box). • Supervision and automation with our new Diapason® control system (Fig. 5), and more to come • Handling and robotics: CERIC now works with five major automation companies in order to provide the most adapted solution to each and every market segment (“innovation” in handling would relate more to ensuring the best quality and reliability at the expected price) • CERIC also works on new “wall product” development: rather than filling existing blocks with isolating materials such as perlite, mineral fibers or else, we believe in a new wall configuration with higher value added, probably less heavy clay and definitely less labor! You should hear more about this very soon! • Collaborative development partnerships are also being set in the field of alternative energy supply. These are only a few examples, many other opportunities are being analyzed at this time. cfi: Who are those partners that you just mentioned in handling & robotics? JJW: There is no such thing as an “universal handling solution”: diversity is key when it comes to finding the right solution to a mix of variables such as sophistication of tech- cfi/Ber. DKG 90 (2013) No. 1-2 Fig. 4 The new the DEMETER 730 ER MRP 12-25 extruder Technical data: through-put capacity: 70 to 100 t/h installed power: 560 kW (160 + 400 kW) diameter of the auger in the pressure head: 730 mm max. pressure: 30 bar space requirement: 7 m × 7,5 m E 17 Interviews Fig. 5 Diapason software: view of clay preparation plant nology, labor environment, diversity of products, ease of maintenance, expected return on investment, etc.). For instance: • CERATEC and CERIC are strategic partners when it comes to industrialized and sophisticated high-tech markets. We operate on an open and equal mode, where professionalism and technology are keys • MARCHELUZZO on the other hand is our partner in the tiles sector. We combine MARCHELUZZO’s reputation in reliable and affordable handling solutions with CERIC’s long-lasting leadership in U- or H-solutions. We even partnered together with FAVOLE and OMEC to launch a new tile press with its complete environment • MAIC and CERIC have decided to integrate each other’s equipment in order to offer the best solution wherever each of us are present • and of course FIMEC (now part of MATERIALS Technologies), as well as TECAUMA both remain CERIC’s strong historical handling partners, even though we are not bound by any capitalistic links anymore. We are proud to carry forward this very successful cooperation from the past, and look forward to re-enforcing the cement between the teams. cfi: You held in the Ceric and later in the Keyria organization senior man- E 18 agement positions. Has your strategy changed, now that it relates to CERIC Technologies? JWW: No, not really. No matter which industry you are in, it is important to look at your strengths and weaknesses, and at the market forces out there. Once you define your positioning and where you want to be in five years, it simply comes down to a daily struggle to get there. My job is to give every man and woman at CERIC the means to achieve these goals. And to bridge between my customers and my shareholders so that we measure success the same way. We are headed that way! cfi: How would you best describe CERIC Technologies today? JJW: Definitely not as “The expensive best”, nor as “The low-cost downgraded answer”. One thing has always characterized CERIC: “no matter what happens, we’ll be there and find a solution with you”. If one looks at the highest “rebuy rate” in any process industry, it does not belong those who never had any problem – nor obviously to those who left when the problems started arising. It goes to those companies who stayed committed up to the end result, up to the contractual expectation of output and quality. CERIC has kept these genes from the old CERIC Group. And that reminds me of your first question: why am I back at CERIC? Together with the eleven members of the Management Committee, we want to carry this heritage, polish the gem back to its original shine and adapt it to the current and future market needs. Yes, CERIC is back and ready for that. cfi: Any insights on 2013? JJW: Sure! We are convinced that 2013 will be the year of growth for CERIC. After a turnover of EUR 17 million in 2011 and short of EUR 30 million in 2012, we are on track for doubling order entry in 2013. Our shareholders and banks are working with us to finance the working capital requirement for this growth. In addition to moving to new and bigger offices in May 2013, we are staffing up with new talents – adding 15+ position to the current work force of 105 people – reinforcing our partnerships, developing our network of agents and offices around the world, investing in more modern industrial facilities in Soissons (PELERIN®) and in the Czech Republic. And finally we are stepping-up our North-African organization, with a stronger service presence in Algeria, and new agencies in neighbouring countries. Let 2013 be the stepping stone for our ambitions for 2015–2020! cfi: Thank you for talking to us. KS cfi/Ber. DKG 90 (2013) No. 1-2
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