Piaggio and its production sites

The Piaggio Group has a strong international presence.
At its Italian site in Pontedera (in the area near
Pisa), the Group has two facilities, one for the manufacture of commercial vehicles and the other for the manufacture of scooters and motorcycles. In addition to the facility manufacturing scooters and motorcycles, which is the most important industrial complex of the two-wheeler segment in Europe, two other sites operate in Italy for European production (Scorzè and Mandello del Lario) plus one site in Spain (Martorelles).

The Group also has its own production sites in Vietnam (at Vinh Phuc) for the manufacture of two-wheeler vehicles and in India (at Baramati, in the state of Maharashtra) for the manufacture of commercial vehicles and engines, in addition to a new site for Vespas for the Indian market, as from 2012.

The main operations taking place during 2011 concerning these sites, which aimed to develop and make production capacity more efficient, are outlined below.

Pontedera Sites

Activities began for the development of a specific software programme and relative technical database which will generate a methodology to identify and subsequently calculate the risk of biomechanical overload on the muscoloskeletal system at work stations, with work scheduled for completion in the first half of 2012.

Two-wheeler sites

As part of mechanical processing activities, a new ion induction furnace for drive shafts and cam axles was installed. Units were set up for the processing of gears for LEm, Electric, 350cc and Derbi 125cc RSV engines, and for the processing of LEm and 350cc engine crankcases, with the complete overhaul of work centres used. Two automatic units for the automation of the integral drive shafts processing line were installed. A new work centre for processing main groups of connecting rods is being installed. As part of engine testing and assembly processes, installations for the new 350cc, Vespa PX, Liberty Electric and 850cc engine assembly lines were completed, while the installation of the LEm engine assembly line is being completed (scheduled for production start-up in March 2012).

As regards Welding and Painting processes, a new automatic unit for the MIG welding of MP3-1 steering tubes and Stalker/Zip chassis was installed, and activities to make welding department equipment and painting department areas safe were completed. Installation of the new Product Routing System began. The system will manage conveyor production flows between the 2W Welding/Painting/Assembly departments, and is scheduled for start-up in the first quarter of 2012.
As concerns Vehicle Assembly, a new steering preparation line was set up, and manufacturing of the Vespa Px and Liberty Electric began.

Commercial Vehicles Plants

The new automated painting line for APE vehicles was started up, and various activities to restore and make safe areas and painting processes for three- and four-wheelers were completed.
Various equipment in the welding department was made compliant with safety regulations: electropneumatic equipment on the Ape TM welding line (completed) and on the Porter line (partially completed, due to finish in the first half of 2012), welding fume exhaust vents.
Production of the Porter with new MultiTech 1,300cc petrol and BTC 1,200cc diesel engines also got underway.

Scorzè Plant

The project to replace the roofing of the scooter building was completed, and line 6 for offroad vehicle assembly was set up.

Mandello del Lario Plant

Renovation works for the second stage of the Arrocco project were completed, and demolition works and construction of the new company porter's lodge were finished. Various activities got underway to renovate the site, including new road surfacing and internal roads, organising the layouts of building A and renovating building D, with a new Metrological Room being set up.
As regards vehicle assembly, the new motorcycle packing line went into production.

Baramati Plant

At the engines plant, the aluminium processing line, and new HE 125cc engine assembly and testing lines were fully industrialised. In particular, in December 2011, preproduction engines were assembled. Industrialisation of the new 200cc engine for the three-wheeler Ape Pax also began and production is scheduled for start-up in July 2012.
At the new Two-wheeler plant, the industrialisation process for the Vespa with the new HE 125cc engine is nearing completion (production will start in March 2012 with a production capacity of 150,000 vehicles/year). In particular, in December 2011, the assembly of preproduction Vespas was completed to schedule.

Hanoi Plant

Work began to install a third vehicle assembly line, and production start-up is scheduled for the first few months of 2012.
Expansion of the industrial site in
Vietnam is being completed, with new industrial buildings built for mechanical processing and for engine and spare parts assembly. Work also began to transfer the vehicle welding department from the assembly plant to a more suitable area inside the new spare parts warehouse.
As concerns engine assembly and testing, in
Italy, in December 2011, the new assembly line for LEm engines was developed and testing completed at the supplier's premises. The line will be dispatched to Vietnam in the first few weeks of January 2012 and will be installed in the new engine assembly building in February. A procedure was established to issue orders for aluminium processing lines (production start-up in the second half of 2012) and cylinder head processing lines (production start-up in the first half of 2013).

World Class Manufacturing Project – Piaggio Production System (PPS)

This programme for the continual improvement of the Group's production processes was developed through a number of initiatives focussed on extending and consolidating the company's culture of manufacturing.

The PPS programme was also launched at vehicle and engine production sites in India. In the last part of 2011, the first production process audit was held, which is the starting point for a future improvement programme.

At Italian sites the PPS programme, which got underway at the end of 2010, became fully operational. An important training initiative took part (for a total of 8,000 hours) involving 45% of all Manufacturing department employees, dealing with the most important issues related to Methodologies, Management Tools and Communication Techniques. Production sites were able to put into practice training received, by setting up site improvement projects with trainers, with the objective of eliminating waste. This means production sites will be actively involved in changing production process limits and relative connections with the continual process of cutting costs.

Environmental, Quality and Occupational Safety certification

On 25 January 2011, the environmental management system of the Vinh Phuc site in Vietnam was certified to ISO 14001:2004.

In December 2010, certification to UNI EN ISO14001:2004 (environmental management system), UNI EN ISO 9001:2008 (quality management system) and BS OHSAS 18001:2007 (occupational health and safety management system) was renewed for the December 2010 / December 2013 period for the Pontedera, Noale and Scorzè sites. The Mandello del Lario site obtained the above certification for the first time.

The Spanish plant at Martorelles also obtained ISO 9001:2008 certification in December 2010.

In August 2010 the engine plant of Piaggio Vehicles Private Limited obtained quality management system certification.