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09 March 2017

The Fayat Group is growing its US operations

First published onCONEXPO-CON/AGG
Daily News
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Jean-Claude Fayat president of the Fayat Group
Jean-Claude Fayat, president of the Fayat Group, discussed the firm's latest developments

The Fayat Group is steadily developing its operations and its presence in the North America market. President Jean-Claude Fayat explained the firm’s position at CONEXPO-CON/AGG 2017. The high value of the US$ against the euro has been of benefit to the group, he said: “For sure it’s helping to improve our margins.”

However he explained, “We would not lose market share if this currency position changes. We are improving our market share, but not because of the currency.”

He explained that when a firm builds its market share this is achieved through offering an array of product solutions. In North America the Fayat Group’s main presence is with its BOMAG compaction, paving and milling machines.

And the firm makes pavers for the US market at a facility in South Carolina.

Fayat said: “We are happy with the facility because it is a modern one and we are close to Charlotte and its airport.”

Previously BOMAG had made compactors at a facility in Illinois but this was a comparatively remote location and hiring personnel was problematic, while transport and logistics could also be challenging in winter time. But now the BOMAG compactors are only made in Germany or in the firm’s Chinese facility.

Meanwhile production of the recycler/stabilisers - purchased when the firm bought part of Terex’s road machine business - has also now been switched to the German factory.

While the Fayat Group’s presence in the US is largely through its BOMAG compactors pavers and milling machines, the firm is seeking to grow its share of the asphalt plant market. The firm is promoting its continuous type asphalt plants in the US as these are more in line with customer demand and Fayat said: “That is our strategy.” However he commented, “We can bring technology that is not currently available in the US. The local manufacturers have features that are similar but their machines are not so compact and do not have the same advantages.”

One of the asphalt plants the company is promoting in North America is the RM120 from MARINI-ERMONT and Fayat said, “It’s very compact and super mobile.”

A key development for the Fayat Group has been its move to buy the DYNAPAC road machinery brand from Atlas Copco. This deal is still subject to regulatory approval and has yet to be finalised, although Fayat is optimistic that it will be completed in June. Until the deal has been completed, Fayat’s plans will remain on hold. However the company has its intentions on how the DYNAPAC business will be brought into the group alongside its existing BOMAG brand. Fayat said: “Our intention is to create a common platform and invest more in research and development.”

As is common in the automotive sector, Fayat is keen to keep the DYNAPAC brand in addition to the BOMAG name. He said the firm would want to keep these two products in competition. “We have to keep the DNA of both brands as they have different attributes.”

He said that while there are some product overlaps there are many products and technologies that are complementary. Around the world also, the market presence for the BOMAG and DYNAPAC brands is complementary. Fayat concluded: “The acquisition will be good for DYNAPAC and it will be good for the group.”

Companies in this article

Fayat Group
CONEXPO Exhibitors
CONEXPO Conference
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