What is A. Abete’s core business and what are your growth plans?

A. Abete’s primary trait is that we have multiple technologies to work, produce, and assemble metallic parts, and deliver them with a free-pass system which is a way of delivering parts without a customer quality control system. We have over 100 employees and are investing in new technologies, automation, and information technology. We are also investing in opportunities in America. Our target is to grow by 20% within three years. We earned €9 million in 2012, doubled to €18 million in 2013, and €22.3 million in 2014. In 2015, we had lower sales levels because customers placed high pressure on prices, yet we produced more parts.

Can you elaborate on the ways that A. Abete participates in Horizon 2020 and Industry 4.0?

A.Abete won a Clean Sky Program award to develop a special pump for lubrication systems, with a group of companies and universities. We now have 56 months to realize this pump and its mechanical component, assembly, and electronic management. We created an R&D facility three years ago and are receiving support through PON (National Operations Program), which is funded by the Ministry of Economy. A. Abete is also creating a sound machine with a special sensor that operates via physical data and not just mechanical data. We are studying the physical parameters, such as vibration and absorption of electrical motors. Our aim is to use this data and upload it onto the cloud.

A. Abete reinvests 75% of its revenue into machinery. How is this business model sustainable?

We know that our company needs to grow, so it is better to invest in growth during this period than remaining stagnant. The international market evolves rapidly and we need to keep up with the times. At the moment, our principal market outside of Italy is the USA, while we also work in Poland, the Czech Republic, and Israel. I think that the next market for us is Europe. Asia needs suppliers but they have an offset program in which at least one part of the aircraft has to be produced in-country.

Have the American election and Brexit impacted the aerospace industry?

Given the issue of unemployment, Obama had a program to bring back $100 billion to the USA because they know that manufacturing activities for the last 20 years have mainly taken place abroad. I think that Brexit certainly will have an impact on Europe. The UK has a good relationship with the American aircraft industry, which would point them in the opposite direction from Italy. The Airbus consortium was originally made up of Germany, the UK, Spain, and France, and now the UK is no longer involved. I think that was the first step in their unchaining from the EU. I do not believe that Italy is currently a solid aerospace market because Leonardo’s restructuring process will lead to a reduction in sales from its suppliers.

Could you highlight A. Abete’s international operations?

We have limited production in Poland, for Avio Aero parts, which were formerly produced in Turin. We also have operations in the Czech Republic, where we are involved in the A-321 for Leonardo, and the company is involved with Alenia.