Farid goes for strategic growth in RCV market

The Farid group, based in Italy, with a strong presence in the UK refuse collection vehicle market, has mapped out a strategy of focused internal growth and selective acquisition, which is seeing the manufacturer emerging as a leading pan-European player in the municipal and waste management market. Editor Alexander Catto reports from the group’s hq in Turin on current developments.

Founded after the Second World War by the Orecchia family with the aim of producing specialist equipment for industrial vehicles, such as trailer, semi-trailers, tippers and car transporters, during the seventies, Farid gradually changed to concentrate on serving the commercial and residential waste collection sector.

“Our strategy has been very clear,” Managing Director Dr Paolo Martinelli told LAWE, “to grow by internal growth and by the integration of other companies – market leaders in each specific market sector for municipal vehicles.”

The latest move in implementing the strategy has been the acquisition of the Italian RCV manufacturer Brivio Pierino & C Srl. With the integration of the Milan-based producer, Farid group becomes the main Italian producer and a major player in Europe in the market for municipal vehicles for solid waste collection and the transportation of waste by vacuum tankers.

The Brivio Pierino move is seen as largely complementary to the existing Farid operations, both in terms of the RCV product lines, as well as expanding market opportunities geographically – in areas such as Eastern Europe.

Earlier moves in implementing the strategy for growth were, in 1999, the addition of Valle Teiro Europe Srl, the Italian manufacturer of small and medium satellite refuse vehicles, followed by the acquisition, in January 2001, of Moro Teveico SpA, a leading producer of container washers, combined sewer cleaners and street washers.

Dr Martinelli says that the group places emphasis on direct after sales service. In Italy the group has six service vehicles and carries out maintenance conracts for over 200 vehicles, mainly with municipalities.

The Farid range includes the rear loading compactor T2, compeletely designed and produced by Farid Research and Development. The equipment features the trend towards curved solutions in RCV designs. The body is made of a tubular construction utilising single single sheet, hardened steel technology, producing high structural rigidity while maintaining a low total weight.

There is a single section of sheet metal for each side of the body which allows loads at a compaction ratio of over 6:1 without failure of deformation and with a high safety factor.

The curved shape of the floor improves the collection leachate in a special tank.

Capacity across the T2 C and T2 A models ranges from 18m³ to 30m³.

A variety of lifting devices, including the group’s own equipment, can be fitted to the vehicles, depending on customer’s preference. They include lifts for 80 to 2,000 litre containers, adaptable to the various bin connections on the market; to sack lifts and skip loaders for containers up to 7m³.

At the more compact end of the spectrum the Farid range includes the Linea M Minimatic. This rear loading mini-compactor features innovative design combining high loading capacity and strength, with approximate volumes ranging from 6 to 8m³.

At the top end of the league, the group also offers semi trailers with capacities up to 50m³.

European and global dimensions

Farid also established a 50-50% joint venture in December 2000 with the Spanish group. Ros Roca. Located in Barcelona, the JV operates the sale and service of side loaders and satellite vehicles produced by Farid for the Spanish market.

The group is also active in the South American market, through Farid de Venezuela CA, which was set up in 1976 to manufacture and assemble RCVs, in particular rear loaders.

The Farid group overall is set on a pattern of growth, seeing turnover increase from €10 million to €78 million between 1994 and 2001. With the acquisition of Brivio Pierino the turnover of the new group is forecast to exceed €100million by 2003.

In the wake of the integration of Brivio Pierino, the group will produce about 1,600 units yearly, employing 570 staff working in six different production plants, four in Italy, one in the UK and one in Venezuela.

Following the latest move Farid will be market leader in Italy and other EU countries such as Austria, Portugal and Greece.

Farid sees Eastern Europe as offering potential for growth, laying claim to market leadership in particular in Poland, Croatia and Rumania.

UK operation

In the UK the group has a significant share in the RCV market, operating from the Farid Municipal Vehicles Ltd base at Ford in West Sussex established in 1992 .

The company supplies all three major sectors of the RCV market, from local authorities directly, to the private sector waste management contractors and the increasingly important plant and contract hire, leasing and financial area.

Farid Municipal Vehicles’ Gordon Smith cites major orders for Farid as diverse geographically as Chichester and the Isle of Skye, plus another current deal in the hire sector for a leading waste services contractor.

He sees potential for future growth in new markets opening up, in areas such as recycling and composting, and in clinical waste, offering potential for the satellite vehicles.

The availability of existing and new products from the extensive Farid group range also opens up potential applications, in areas such as composting, using equipment such as the Minimatic, based on a one-piece body design, which does not leak.

Farid in the UK has placed its emphasis on building its reputation, and aims for sustainable growth, aided by a 24 hour service and parts service provided by the company’s own engineers and by distributors, and backed by the resources of an emerging major player on the European waste vehicles scene.

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