Daniel Randon brings more than 15 years of experience within the Randon organization to his role as Fras-le S.A.’s chief executive officer. His international business experience and years spent studying the inner workings of the organization allow him to steer the company on its course of global growth. His professional career began in 1995 at the Randon Companies, in Brazil, where he worked in the areas of Quality Development and Design Engineering. In 2001, Randon managed the trailer division of Randon Implementos S.A., in which he led a turnaround in an unprofitable business unit, increasing sales by an average of 30 percent per year. In 2006, he moved into the position of director of finance, human resources and investor relations of Fras-le S.A., also a Randon company. Randon has served as CEO and director of investor relations at Fras-le S.A. since 2007. His leadership as CEO also extends to Fras-le North America Inc., the organization’s North American subsidiary. Randon strongly advocates teamwork as being the most successful key in any organization. Randon holds a degree in Mechanical Engineering from the University of Caxias do Sul in Brazil. In 2005, he earned his MBA in finance and business administration from the University of Chicago Booth School of Business. In his volunteer work, Randon served as adviser and provider of the Brazilian Red Cross of Caxias do Sul from 1997 to 2006, where he also held the position of president of the Caxias do Sul branch of the Brazilian Red Cross from 2000 to 2003. He currently resides in Brazil.
In this exclusive interview, Randon talks to Brake & Front End Editor Andrew Markel about the company’s long-standing history in the global friction materials for medium and heavy-duty vehicles, as well as its more recent introduction of light-vehicle friction materials in 2009.
AMN: With so many companies in the aftermarket friction categories, what sets Fras-le apart from the competition?
Daniel Randon: Fras-le is a 55-year old company and is part of the Randon Companies that has more than $2 billion in sales. We sell friction materials in more than 80 countries. Fras-le supplies friction materials for everything from elevators to trains.
Our company has been in the U.S. for more than 20 years, establishing our name in friction materials for medium- and heavy-duty commercial vehicles. We are a well-capitalized company with our own research and development facilities, including an 18-mile test track in Brazil that can test trucks up to 16 tons per axle.
Fras-le has more than 10,000 employees worldwide. Our employees are constantly updating their knowledge the average employee undergoes at least 40-50 hours of training each year. Also, our employees give back to the community through our Florescer Program for children and teenagers with fewer economic and social opportunities.
AMN: In the two decades Fras-le has been in the U.S. friction material market, what has it accomplished?
DR: Since 1989, we have become one of the leaders in the friction materials for medium- to heavy-duty vehicles. Last year, Fras-le acquired the Haldex facility in Prattville, Ala. This factory makes disc brake pads for North America and export.
On the light-vehicle side, we have taken a different approach than most aftermarket friction material manufacturers. For the past six years, we have been supplying brake pads to the OEMs including Ford, GM and Chrysler. In 2009, we launched our light-vehicle friction material program. Most companies start in the aftermarket and move on to original equipment.
Our entry into the light-vehicle aftermarket is one of the most ambitious launches in history. We are coming to market with four lines and coverage for more than 90 percent of the market.
AMN: What research did Fras-le perform before entering into the U.S. market?
DR: We spent several years and a lot of money researching the U.S. market. The U.S. market demands an OEM-quality product with testing and commercial support to back it up. Our Prattville, Ala., plant performs research and development so Fras-le can tune our products for the North American aftermarket. This facility is backed up by our larger research and development facilities in Brazil.
We want to give the best to our customers. We do not want to be a “cost-saving” product; we want to be a “cost-benefit” product. It is not about price, but quality materials, engineering and support.
AMN: What are Fras-le’s short-term goals?
DR: We just launched the four light-vehicle lines in the third quarter of 2009. We are looking for select regional distribution at the warehouse distributor level for the lines. Also, we are making our current customers who purchase our medium- and heavy-duty lines aware of our products.
AMN: What are Fras-le’s long-term goals?
DR: The North American aftermarket is huge. We see a great opportunity to grow into one of the larger players in the passenger car friction material category, just as we have accomplished in the medium- and heavy-duty segment.
The U.S. aftermarket is one of the most competitive markets Fras-le has ever entered. As players mature and the market shifts, it opens up niches not only in terms of product applications, but price, coverage and service.
AMN: Where are the pads for the light-vehicle line manufactured?
DR: The pads are manufactured either at our plants in Brazil or Prattville, Ala. No matter what facility, the pads are manufactured to OEM standards, with the best materials and tooling.
We do have a plant in China, but it only supplies the Asian commercial truck market.
AMN: What is the current status for the lines?
DR: We are currently shipping the Ceramaxx, MagnumPro, Street Master and Extreme Service lines out of our warehouse. The lines have more than 300 SKUs, and we are adding new applications. We currently have a 100 percent order fill rate. Also, we have the manufacturing capacity to keep up with additional demand for our products.