Optimism in Europe prompts expansion for hose maker

PADUA, Italy—Tubigomma Deregibus S.R.L. is investing about $1 million to expand capacity at its hose factory in Padua, reflecting what the firm sees as an improved mood among manufacturers in Europe.

The specialty hose maker, which does business as Tudertechnica, plans to have two new hose production lines in place during the first half of 2016, according to Andrea Deregibus, the firm's chief operating officer and co-owner.

“Because of this feeling that something good is coming—and also the results and prospects we have—this is the right time to make the investment,” he said.

Tudertechnica has the space in its facility to handle new machinery, which will be designed to handle hoses with inside diameters of 2 to 24 inches. Employment may grow some but will still stay in the 80-employee range, he said.

The lines will be flexible for use on existing hose products as well as any future lines. For example, the company will be able to make an air transfer silicone hose up to 20 inches, “things nobody will do,” Deregibus said.

Silicone is among a variety of elastomers Tudertechnica uses, including such materials as SBR, Viton, nitrile and Teflon.

“For us an elastomer is something we will work with to make a product that meets your expectations,” he said. “We will use what is best for your need. This is something the big companies cannot do. I want you to have the right hose because you have to sell to your customer.”

A company spokesman said the difference between Tudertechnica and the larger hose firms is that the big companies want to produce “10 miles of everything they make. Tudertechnica takes a specific application and makes a design for it,” he said. “That's the key to being a specialty hose maker: having a specific hose for a specific application.”

Deregibus said after a long recession, companies in Europe are starting to have a feeling the worst is behind them.

“There is more optimism in Europe,” he said. “European companies are very well prepared to face future opportunities. Europe is in a good position to again be the No. 1 place for new products in the rubber industry.”

It means a lot of companies—in the rubber and plastics industry, among other sectors—are starting to invest, not only on machinery and buildings, but especially in quality and hiring good people, the Tudertechnica COO said.

“A lot of companies are looking for business outside Europe,” Deregibus said. “Those in China, India and other emerging markets are looking for high-quality products. There is a lot of opportunity.”

Deregibus also sees a strong business outlook for 2016. “Improved productivity and a weak euro is making European companies more competitive,” he said.

Tudertechnica, itself, derives about 80 percent of its sales outside Italy.

The firm is among those hiring, naming Michela Chiarparini as its area manager for North America.

Tudertechnica has been pushing its hose lines in North America for about five years—selling strictly through distribution handled by CRP Industries Inc.—and is pleased with the progress.

“After four to five years, more distributors recognize the name of the brand,” Deregibus said. “It is the best compliment I can get. This is very good for us.”

The company spokesman said being a specialty hose maker meant that much time had to be spent having the products tested to meet the specifications of an application.

“Now it's proved itself, and the sales cycle is taking off because you don't have to on each occasion start from scratch,” he said. “We have reference points, and we're finding the ability to grow the sales on a shorter time cycle then when we first started.”

Deregibus said its most successful hose in North America thus far has been the GlideTech line for food and wine applications, followed by the SpiralTech hose, also for food and beverage. Some competitors even are developing hose lines similar to GlideTech, a sign the Tudertechnica co-owner said means the firm has a good product in its arsenal.

And as the Italian firm gets more exposure in North America, it is starting to see a difference in potential business. “The magnitude of the opportunities is greater,” he said. “Much bigger companies are approaching us because they've heard about the product or they've had some first-hand experience with it. When you deal with bigger prospects, the opportunities they bring you are bigger as well.”