Discovering how Italian companies excel in international markets, particularly in China, is a fascinating journey of ambition and innovation. With the “Italian Icons of China” series, we tell success stories through exclusive interviews with the protagonists of the most influential Italian realities, offering valuable insights and inspiration for entrepreneurs and companies of all sizes. A unique opportunity to learn from real experiences and discover the secrets of innovation.
In this appointment, we are thrilled to present you an exclusive interview with Doctor Serena Costantini, President of Sisme SpA from 2022.
Founded in 1957, Sisme SpA is an Italian leader in the production of rotary stators and electric motors. With production sites in Italy, Slovakia and China, the company combines innovation, sustainability and attention to human capital, standing out for customized solutions and a strong environmental commitment.
Serena Costantini embodies the perfect synthesis between tradition and innovation. Born in Switzerland to a Swiss mother and Italian father, she has built a solid career starting with a degree in Economics and Business from the University of Pavia and initial experience as an auditor in PricewaterhouseCoopers SpA
Today, Serena promotes an ongoing commitment to sustainability and gender equality. Active in important entities such as Confindustria and Federmeccanica, it represents a leadership that combines strategic vision and social responsibility, guaranteeing sustainable and inclusive growth for the company.
We know that Sisme entered the Chinese market in 2004 in Tianjin. What were the most significant moments in the development of your business in the country?
Once the ice was broken in 2005 with a location in a factory of approximately 2 thousand square meters of production capacity to support our largest customer, the Danfoss group, Sisme took steps to:
- First of all, to extend its services to other global customers, such as the Emerson group (now Copeland) and the Bitzer group, to supply electric motors, guaranteeing the same quality and efficiency as the corresponding models supplied from Europe.
- In 2008 to move to a new factory of approximately 8 thousand square meters in order to be able to manage a continuously growing business volume.
- Starting from 2010 to extend its customer portfolio to new global players such as the Ingersoll Rand Group (now Trane Technologies) and the Gea Bock Group (now part of the Danfoss Group for the compressor part).
- Finally, starting from 2020, to begin expansion towards global customers controlled by Chinese ownership such as the Snowman Group.
The Chinese market offers great potential. What opportunities do you see for the future of Sisme in China, especially in terms of expansion and collaboration with local partners?
The Chinese market offers great opportunities but is at the same time characterized by very strong price competitiveness. Sisme therefore intends to seize the opportunities of the Chinese market and to do so, as mentioned, it has begun to extend its range of action to Chinese customers with the common denominator of the global projection of its business which would allow it to appropriately enhance the characteristics of the products and services by overcoming a mere price competition.
Operating in China also involves several challenges, both economic and cultural. What are the main difficulties you encountered and how did you deal with them?
The main difficulties from an economic point of view that we have encountered and continue to encounter for the development of the specifically Chinese market concern the competition with local competitors who exert a marked and constant pressure on the selling price which, for the moment, limits Sisme’s portfolio to a few large international clients. From a cultural point of view, we have undertaken a mutual rapprochement project that is based on the commitment of both European and Chinese colleagues. The journey, after almost 20 years of presence in China, is still ongoing but the collaboration and understanding with Asian colleagues has certainly improved significantly. Our local general manager, Alessandro Moalli, present in Sisme China since its establishment, fully represents this logic: professionally linked to and co-author of the development of the product Sisme has been able over the years to integrate perfectly also from a personal point of view (he is happily father of an Italian-Chinese child); all this has led it to now be a recognized point of reference for both Chinese and European colleagues and commercial partners.
The topic of sustainability is increasingly relevant. How does Sisme SpA integrate sustainability principles into its operations? Could you tell us about the most important initiatives you have implemented in this area?
Sustainability is an integral and essential part of Sisme products which, by their nature, represent a key factor in the fight to reduce CO2 emissions into the environment. Always attentive to environmental issues, Sisme productions have always been characterized by low levels of emissions; Nonetheless, the company has always continued to invest in improving its production processes by introducing, in the recent past, LED lighting in all the Group’s factories, replacing the aluminum melting furnaces with new “smart” furnaces (which can therefore also be managed remotely ) and with a marked reduction in gas consumption (more than halved). Economic evaluations are underway for possible installations of solar panels in the various Group factories to further reduce the environmental footprint. Furthermore, in 2020 we launched an initiative aimed at enhancing sustainability in the broadest sense, both economic and social, in the Group, starting first from the Italian factory. Today we are at the fourth edition of the Sustainability Report and we have also begun to address the challenges posed by “Scope 3” which concern our products and services starting from the “cradle” up to the gates of Sisme, therefore taking into consideration not only the impact of our processes and services within the company, but also the impact of our suppliers. We are then extending the Scope 1&2 analyzes to our Chinese plant and we plan to carry out a product lifecycle assessment also in Sisme China to compare it with those of a comparable European product.
How do you plan to adapt to economic changes and the needs of Chinese consumers?
Sisme’s vocation is to serve partners on a global level, capturing their specificities for the Chinese market through targeted actions and carrying out, in partnership/codesign, projects to reduce the cost of products that continue to combine quality and efficiency with sustainability. Continuous investments in research and development are essential in order to adapt to market changes and the needs of Chinese consumers; Sisme, in fact, invests approximately 2% of its turnover in R&D every year, thus guaranteeing a constant value proposition well represented, for example, by the proposition of brushless motors that do not use rare earth permanent magnets, but rather ferrite magnets or motors without magnets (synchronous reluctance).
What advice would you give to someone considering investing in China, and what key aspects do you believe are essential to succeed in the Chinese market?
Our advice is to have a clear understanding of your mission and characteristics in order to focus on giving original answers even in a highly competitive market such as the Chinese one. It would therefore be desirable to avoid losing one’s nature and history which are the true heritage of every successful company.
By: Attorney Carlo Diego D’Andrea, Vice President of the European Union Chamber of Commerce in China
