Associaton

It is safe to say that Paolo Pozzi hasearned his credentials in the field.
With a degree in Aerospace
E ngi ne er i ng f rom t he Polit e cn ico
Institute of Milan, he joined the Agrati
Group in 1995, where he held various
p osition s u nti l b e com i ng G enera lManager of the parent company "Agrati
SpA" and then a member of the Board ofDirectors. He was appointed Managing
Director of the Group in 2008 and CEOin 2016.
Under his leadership and in linewith the Presidency, the Agrati Grouphas undergone a transformation thatis clearly visible today through thea c h i eve m e n t of i m p o r t a n t go a l s .
These successes can be summarisedby an annual turnover exceeding 680
million euros and a staff of more than2400 employees operating across 12
manufacturing establishments situatedin Europe, the United States and China.

The E.I.F.I.
has a New PresidentInterview with Paolo Pozzi

P a olo Poz z i’s i n n a t e t a le nt fo r
diplomacy, coupled with his engaging
p e r s o n a l i t y, h a s g a r n e r e d h i m
recognition and respect within thesocial sphere of his profession, bothnationally and internationally. He has
carried out and continues to carry out intense professionaland membership activities. Therefore, it came as no surprisewhen he was unanimously elected as EIFI President for theperiod of 2023-2027 during the EIFI General Shareholders’Meeting held on 12 May 2023 in Meissen (Germany).
Thanks to his willingness to make time for us, we(referring to Italian Fasteners Magazine, the same goes
hereinafter) had the privilege of meeting the recentlyappointed President. Here is the interview that followed.

What can we expect from your Presidency?
Firstly, I would once again like to express my heartfelt appreciation to all the EIFI Members who elected me as their President. It is withgreat honour and happiness that I assume this position, particularly as the EIFI is undergoing a significant period of transformation. My
hope is to make a significant impact in shaping a new era for the EIFI and facilitating its adaptation to the challenges and profoundchanges currently affecting all industrial sectors.
I believe that it will become increasingly crucial to address these new challenges at the European level in order to effectively represent andsafeguard the fasteners industry and its unique characteristics in the years to come.

144Fastener World no.202/2023 惠達雜誌by Marco A. Guerritore
Editor in Chief Italian Fasteners Magazine

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This will necessitate an organisation capable of collaboratingclosely with national associations, while simultaneously
expanding its operations and prominence at a Europeanlevel. This can be accomplished by cultivating partnerships
with institutions in Brussels (EC and Parliament), as well asother trade associations (AEGIS, CLEPA, EUROFER etc.).
The present challenges cannot be addressed using the same
approaches employed in the past.

What is the current organisational
structure of the EIFI?
The current structure consists of a Board, which includes
a President, two Vice-Presidents, six members representing
the national associations and a General Manager. The termof office for the President and Board has been extended
to four years and can be renewed for an additional term.
There are three Market Groups:• Automotive• General Industry/Distribution• Aerospace
There are three Operating Committees:• Public Affairs, Legal, TDI and Membership Development• Technical, Quality and Innovation• Marketing and Communication
Two new categories have been introduced within the categoryof fastener manufacturers:• Affiliated Members, comprising companies in the fasteners
supply chain• Associated Members, consisting mainly of service andconsulting companies

What are your objectives as President
during your term?
The objectives include:
1. Enhancing the recognition and visibility of the EIFI
throughout Europe
2. Broadening the membership base
3. Strengthening the organisation
However, the fundamental objective remains the same:to effectively represent and protect the interests and uniquecharacteristics of the European fasteners industry.

Is there still a valid role for a European
trade association in today’s highly
globalised world?
I would argue that because we have been living in a
globalised world for more than 30 years, it is crucial toembrace the European dimension in order to tackle newchallenges. This principle is applicable not only to tradeassociations but also to all EU Member States, who sometimes
overlook the fact that they are part of a geographic region that
represents the world’s largest market, renowned for excellenceacross all industrial sectors.

Even in the case of fasteners, Europe maintains its position as
the world’s largest market, representing 26% of the total valueof 90 billion dollars, surpassing the Asia Pacific region, North
America and China. I believe it is worthwhile trying to defend
and support this market as well as the European companies
operating within it.

Are European nuts and bolts competitiveat a global level? What potential risks
does this sector face in the future?
I would say that European nuts and bolts are indeed
competitive globally, particularly when we compare ourselvesto countries operating under similar regulations andconditions. Unfortunately, we are well aware that this levelplaying field is not always guaranteed.
I thin k that Eu rope’s position as the world’s leading
fastener market can be attributed to the efforts of European
manufacturers, and also to the supply chain, which over the years
has adapted and evolved alongside market demands, offering
manufacturers high-quality materials and services at competitive
prices. Let us not forget that the competitiveness and expertise ofEuropean fastener manufacturers have allowed them to develop
global champions who have also successfully invested in otherregions worldwide. In fact, at least five European manufacturers
rank among the world’s top ten fastener manufacturers.
The potential risks are partly known and partly new.
The known risks include imbalances in relation to WTO
regulations, which have led to the imposition of importduties to rebalance the system. The new risks stem from thedisparities in the speed and approaches adopted by different
regions worldwide to address sustainability concerns.
These concerns primarily revolve around the environment,with the first test case being the implementation of the CBAM
(Carbon Border Adjustment Mechanism). However, this issue
extends beyond environmental considerations and encompasses
broader decisions linked to ESG issues, with each country
adopting different approaches in this regard.

What can the EIFI do, particularly forsmall and medium-sized European
companies in the fasteners sector?
In my view, small and medium-sized companies need to bepart of an organisation that can effectively represent, defend
and guide them in navigating the immense challenges oftoday. Consider the three major transformations currently taking
place in Europe: sustainability, digitisation and the electrificationof the automotive sector, which remains a key market for fastener
manufacturers. These profound changes are having a significant
impact on organisations, and the fact that they are all happening
at the same time makes their management very complex andburdensome for large companies, while posing an unsustainable
challenge for small and medium-sized enterprises. By sharing
these epochal transitions with associations that can provide
valuable information, support and guidance on addressingthese challenges, I believe we can foster more cohesive andharmonious growth throughout the entire supply chain. This惠達雜誌 Fastener World no.202/2023

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collaboration can help prevent disruptions and discontinuities that
could potentially lead to significant issues, as demonstrated during
the pandemic.

Currently, there is the prevailing belief thatgrowth is the sole means to guarantee acompany’s survival. In your opinion, what
does this growth actually mean and how
should it be achieved?
I do not think that growth is the only way to survive, but it isevident that stagnant or diminished corporate stature does not foster
the development of champions capable of competing in a global andrapidly evolving environment such as the one we face today. Without
growth, there is no investment and without investment, there is noinnovation and no job creation.
Europe stands at the forefront in the battle against pollution ingeneral, but this inevitably means placing limitations on economic
and production activities. How do you propose reconciling thiscontradiction in a positive manner?
I believe that Europe’s environmental choices are correct, and noone, including companies, wants to oppose the transition. However,it appears that there has been an excessive focus on regulation,leaving little room for the development of a comprehensive
strategy. While deadlines and potential sanctions have been set,the competitive landscape with American and Chinese companies
seems to have been overlooked. The risk we face is that we are
creating new rules for the game with highly skilled referees, only
to find that others have taken the field ahead of us. This is true
not only in the transition to electric vehicles, where Europe trails
behind China, Korea and Japan in terms of accumulated battery
technology, but also in the high-tech sector, where Europe faces atechnological gap and lacks key players compared to countries likethe United States and China. This contradiction could be resolved
by greater collaboration between the European Commission
and trade associations. Together they can work towards defining
more comprehensive strategies that take into account the speed oftransition and the negative effects it may bring in the short term.
A prime example is the new regulations on car emissions withEuro 7 engines scheduled for July 2025. These regulations entail
significantly higher costs than those initially estimated by theCommission, while providing limited environmental benefits.

We are currently witnessing a periodof significant change and uncertainty,
particularly in the automotive industry. What
are your predictions in this regard? Whatrole should the EIFI play in this context?
For quite some time now, I have believed that the transition toelectric vehicles is irreversible. There is no turning back given
the massive investments made by car manufacturers in Europe
and globally. Recent growth figures have shown unexpectedadvancements not only in China but also in Europe, albeit atvarying rates between northern and southern countries. The goal ofachieving full electric private mobility in Europe by 2035, which

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Fastener World no.202/2023 惠達雜誌

may have seemed implausible a few years ago, has become
more feasible. Since 2019 we have seen exponential growth in
the market share of electrified vehicles, reaching 21% in 2022,with 9% being fully electric (BEV). Some Northern Europeancountries, such as Norway, have already achieved an impressive
80% penetration rate. Evaluating how these countries have beenable to reach such levels today will provide insights into the2035 sustainability target for the whole of Europe. Uncertainty
persists in the short term regarding the overall demand for cars,
which will undoubtedly be negatively impacted by reduced
credit availability, higher costs, the effects of a potential
recession and relatively high price levels of electric vehicles,
particularly in segments A and B.
When it comes to the evolution of the car, the EIFI willneed to collaborate closely with other national and European
automotive trade associations to address industry-specificchallenges that may arise during this complex phase. One
key challenge lies in effectively managing larger quantities
and varieties of products, particularly for fastener
manufacturers. This will necessitate diverse skills and thedevelopment of new processes to create new materials,
coatings and components. Additionally, broader knowledge
in areas beyond mechanics and metal materials will beessential. The demand for more diversified products will
also lead to greater complexity in logistics management anddistribution of products, as well as the need to converge
towards standards that have yet to be defined. Lastly, overthe coming years, components dedicated solely to internal
combustion vehicles will gradually decline in volume, adversely
affecting production costs due to diminished economies ofscale, following a logic similar to what we have already seen forcomponents used exclusively for diesel powertrains.

In the aftermath of a pandemic and withongoing conflicts in various parts of theworld, is it possible to maintain optimism
and confidence in the future?
Unfortunately, wars and pandemics have always existed in theworld and are part of human history and nature. Our generation
has been fortunate enough to have avoided experiencing them
directly. In particular, in the Western world, we have managed
not to have wars for over 70 years, with the exception of theBalkan War in the 1990s. However, we now have one in theheart of Europe that increasingly involves us and seems tobe taking on the form of a clash between the West and therest of the world. This situation is disconcerting and fills us
with unease and uncertainty, but I believe that maintaining ahealthy balance of realism and optimism is the most prudent
approach.

How would you like to conclude thisinterview?
With a closing remark that carries both a cautionary message
and a ray of hope for companies of all sizes.
The world is changing fast. It is no longer a question of big
overpowering small, but rather of the fast outpacing the slow.