Aurelio Bertelli, LTC Group: The energy market is booming
Germany, Ulm: Transformers Magazine brings an interview held at Coiltech Deutschland 2022, with Aurelio Bertelli, President of LTC Group.
Aurelio Bertelli is the President of LTC Group (Legnano Teknoelectric Company), a private company owned by the Bertelli family, three brothers who lead the company: Aurelio Bertelli, Daniele Bertelli and Gianluigi Bertelli.
The brothers are the second generation in the company, and the third one is soon to follow. Their children are just about to start bringing their contribution in the company.
Mr Bertelli, as a global leader, you probably have a lot of ongoing projects. Are you planning any new investments?
The LTC Group is a global leader in the production of magnetic cores. We manufacture cores and laminations for transformers and reactors. Currently, there is a very strong demand for our products on the transformer market. Of two main developments in our business, the first one is Ecodesign Tier 2 and the second one comprises new sectors – for electrical vehicles, renewable energy, and data centres. The market is booming now, which makes us really satisfied.
As the market leader, we have already implemented some important investments into machinery, cutting lines, quality, and human resources, and other investments will come soon. It is necessary to be ready to fulfil all the market requirements. Our target is to increase efficiency, reduce the lead time and of course to increase production capacity, as the market is now demanding just-in-time products. So, for all those reasons, we are making significant investments in Italy and Dubai.
Please, tell us a bit more about the organisation of your company and manufacturing facilities.
LTC Group is composed of two main companies. Within LTC Italy, there are four manufacturing facilities close to Milano, where we manufacture many different types of cores for transformers and reactors. There is also a facility for clamps, so we are vertically integrated. We have just inaugurated Casa LTC, which is our new head office, a nice, eco-friendly building. We have gathered there all LTC’s departments such as sales and purchasing, technical, research and development, human resources, etc. They are all there together to make things easier and more efficient.
We are also present in Jebel Ali Free Zone in Dubai. There is a large facility to produce cores and now we are doubling our facilities. We are precisely doubling in Dubai everything we have had until now. This facility is currently under construction.
Today, the LTC Group has over 700 employees. Since we are significantly growing, we are surely going to increase that number. Some new projects will be taking shape soon. We have some dreams that we think the market will see coming true very soon.
What are the company’s main goals?
“Energy at work” is our slogan. We are aware of the competition, and we are observing our competitors. They are, of course, also making investments and we are aware of the situation in the market. Our duty as the market leader is to always be No. 1, be at the frontline and prepare ourselves to face all the challenges of the market. This is our major and most important goal for the future.
How have the recent events in Ukraine affected your business?
The latest events and the strong escalation of the conflict in Ukraine have surely had a negative impact on the economy in general. Nobody has expected such a strong escalation. Regardless of the circumstances, today’s economy is booming, with a lot of projects circulating in the market. From the aspect of orders, we are satisfied. However, the market is currently experiencing some difficulties in finding the raw materials and that is why the prices have significantly increased. The situation has already been tough before the escalation, and now it is even worse. Nonetheless, we have not stopped, we are putting huge efforts every day to fulfil our customers’ requirements.
During the last two years, the restrictions have made it impossible to hold live trade fairs and exhibitions. How do you feel about being able to meet in person with your customers and suppliers again?
Finally, after two years of restrictions and strict measures, we can once again meet in person with our partners. We have really been looking forward to getting together and discuss the market situation, especially now that the market is particularly booming. The demand is increasing, and we are extremely pleased once again to attend this event. Three weeks ago, we were in Dubai at Middle East Energy 2022, where we also met many of our customers. After Coiltech Deutschland 2022 here in Ulm, we will attend IEEE fair in New Orleans, Louisiana. In May, there is CWIEME Berlin and Pordenone in September, etc. So, there are really many events this year and we are extremely excited that we can meet our customers and suppliers again.
How are you facing the current issues that practically everyone is currently experiencing in the supply chain?
Today, there is obviously a gap between demand and offer because of the pandemic and other current extraordinary situations. This surely does not help to get the raw material in time. The supply chain and logistics are suffering also because everyone is now increasing their demand for the raw materials. Due to the measures and restrictions, as well as some difficulties the producers of steel and all commodities have been facing, there is certainly low availability of these materials, and the demand is much higher than the offer.
What are your expectations of the energy market this year and in near future?
The energy sector is booming, and it is strategically extremely important. Many new investments are on-going, some of them already seeing the light of day, while some are to be realized soon. The global population is continuously growing, and people are demanding more and more energy. There is a lot of investment into new power grids, so we have especially positive expectations for the next couple of years. The energy sector is of vital and strategic importance, therefore, we are also producing some products of strategic importance, such as magnetic cores for transformers. Therefore, we expect a particularly positive trend and a bright future for this market.
Interview by: Ante Prlic