Zoltek Corporation - Adapting Together With Andrew Whipple

Summary

In this podcast episode, Andy from ztech discusses the company's focus on carbon fiber production and its applications in various industries, particularly wind energy. As the Chief Financial Officer, Andy highlights ztech's global operations, the importance of aligning international business practices, and the impact of geopolitical tensions on supply chains and costs. He also touches on the company's growth potential, driven by the increasing demand for alternative energy solutions and the future of air taxis and renewable energy technologies.

Takeaways

• 🎧 The podcast is developed by the Boeing Institute of International Business at St. Louis University's Chaifetz School of Business.
• 🌐 World Trade Center St. Louis is highlighted for empowering organizations to thrive on an international scale.
• 🔢 Andy, the CFO of Ztech, discusses his 16-year tenure and his role overseeing accounting, finance, taxes, IT, and logistics.
• 📈 Ztech is focused on the commercialization of carbon fiber, aiming to be a low-cost provider to promote its use in various applications.
• 🌟 Carbon fiber is portrayed as a strong, lightweight material with applications in wind turbines, automotive parts, and potential future uses like air taxis.
• 🌱 Ztech's founder, Zol roomy, is recognized for his vision in commercializing carbon fiber, which the company continues to pursue.
• 🌍 The company has manufacturing operations in Hungary, Mexico, and the US, strategically located to serve different markets and ensure supply chain resilience.
• 🔄 Ztech is committed to utilizing all its carbon fiber products, minimizing waste through downstream processing like chopping and milling.
• ⚖️ Global tensions and trade barriers, such as those between the US and China, impact Ztech by increasing costs and affecting supply chains.
• 🔑 The future of Ztech is tied to the growth of the wind industry, the development of new applications for carbon fiber, and the company's ability to reduce production costs.

Q & A

What is the main focus of the 'Conversations That Matter' podcast?

The podcast, developed by the Boeing Institute of International Business at St. Louis University's Chaifetz School of Business, focuses on international business topics, aiming to communicate knowledge to students and the podcast community, helping them with career growth and success.

What is the role of Andy, the interviewee from ztech, in the company?

Andy is the CFO (Chief Financial Officer) of ztech, responsible for accounting, finance, taxes, information technologies, and purchasing and logistics.

How has ztech been preparing for advancements in artificial intelligence?

ztech has been preparing for artificial intelligence by implementing Microsoft AX across all global operations and introducing business intelligence through PowerBI to align operations worldwide.

What is the significance of the precursor material in ztech's production process?

The precursor is a white material derived from acrylonitrile and is a key starting point in ztech's carbon fiber production process. It is transformed into carbon fiber, which is then used in various applications, emphasizing ztech's commitment to full use of their products and minimal waste.

How does ztech utilize carbon fiber in different product forms?

ztech manufactures carbon fiber and creates downstream products such as chopped fibers for use in items like laptops, and pre-preg plates which can be used in more complex applications, demonstrating the versatility of carbon fiber in various industries.

What is the relationship between ztech and Tor, and how do their product focuses differ?

ztech is a subsidiary of Tor. While ztech focuses on commercializing carbon fiber and being a low-cost provider, Tor is a high-end manufacturer known for precision and quality, with their materials often used in applications like airplane fuselages.

How does ztech's international presence, with operations in Hungary, Mexico, and the US, contribute to its business strategy?

ztech's international presence allows it to serve different markets effectively. The plants in Hungary and Mexico produce the main carbon fiber products, while the US focuses on downstream production, leveraging lower labor costs in Hungary and Mexico and the ability to serve the Americas and Europe from these locations.

What cultural aspects does Andy highlight in his experience working with ztech's international teams?

Andy emphasizes the strong work ethic and dedication across all cultures at ztech. He also mentions the importance of shared activities and experiences, like food and local events, in fostering a collaborative working environment.

How is ztech's growth tied to the wind industry, and what are the opportunities for future growth?

ztech's growth is closely linked to the wind industry, as carbon fiber is used in wind turbine blades. The company sees opportunities in the continued growth of the wind industry, the increasing size of wind turbines, and the expansion into offshore wind energy. Future growth may also come from emerging applications like air taxis and tidal turbines.

What challenges has ztech faced due to global events such as the conflict in Ukraine and tensions in the Red Sea?

ztech has faced increased energy costs and supply chain disruptions due to the conflict in Ukraine, which affected their Hungarian plant. They also had to adjust supply routes due to the Red Sea tensions, leading to higher shipping costs. These events highlight the need for ztech to be adaptable and maintain a global supply strategy.

What is ztech's stance on global trade tensions, and how do they plan to navigate these challenges?

ztech prefers a calm and free global trade environment with minimal tariffs and barriers. They aim to be a low-cost provider, and any trade tensions that lead to increased costs can affect their business. They plan to navigate these challenges by being experts in their business, ready to adjust to any global shocks.