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Palumbo Industries

358 rue de l`Industrie Z.I. La Praz 74130 Vougy France
+33 450 986557 +33 450 961350

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Palumbo Industries

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The premises of Palumbo Industries in Vougy, France

Palumbo Industries

French excellence in automated turning


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The production and processing of automotive components requires absolute precision and delivery reliability. The quality demands of the OEMs also keep increasing. At the same time, margins are decreasing. As a result, automotive suppliers have to offer added value in order to stand out from competitors. Palumbo Industries from Vougy in France, for example, excels in research and innovation. Concentrating on technology-focused products, the company is internationally acknowledged for its know-how and innovative strength.

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“We invest so much in research and technology, around 5 to 6% of our annual turnover every year,” says Managing Director Raphaël Palumbo. “This is a lot compared to our competitors. Most of them spend between 2 and 3%. This means, we invest three times as much as they do. Thanks to this strategy, we hold several patents, often for unique solutions. In 2013, we were able to have two new patents registered. They gave our business a new impulse and resulted in growth of around 24%.”

One of the company’s latest developments is an optical reflector with aluminium components of unparalleled quality, surface and precision for new LED lighting systems. Worldwide, Palumbo Industries is the only company able to offer such a product.

In order to stay at the forefront of technology, Palumbo Industries also partners with several technical and technological centers and engineering schools. Every month, the company works with external turning specialists on the quality and precision of its components.

“We are integrated into so-called competitive pools,” says Mr. Palumbo. “I am member of the board of a competitive pool for high-precision mechanics and of an entrepreneurs’ association.” Palumbo Industries regularly supports integrative studies and offers pupils, apprentices and students a wide range of training and education possibilities. Around 90% of all the young people are ultimately employed.

Thanks to its uncompromising quality and innovation approach, Palumbo Industries has been awarded the Montblanc Excellence – a prize for sustainability – by its competence pool and holds several certifications such as ISO TS, ISO 14001 and ISO 26000.

Accounting for around half of the company’s total turnover, the processing of components on transfer machines is the mainstay of the business. All machines have been developed by Palumbo Industries.

“In our area, the Arve Valley, there are around 700 turning companies,” says the managing director. “We draw on machines for the specific components we process, for components of atypical forms and for the fabrication of automotive parts in large series. This is an important competitive advantage for us. We have three people focusing exclusively on the construction of our own machines.” One and a half years ago, Palumbo Industries also started to process components on cycling CNC turning machines.

“We focus on product sectors with only little competition,” Mr. Palumbo explains the company’s success. “These products are absolutely technology-oriented. For over 80% of our products, we are the sole suppliers. Thanks to our research-oriented strategy and structure; we are able to offer these products at competitive prices. Also, all our products are made in France. This way, we are able to ensure a constant top quality level. Our degree of automation and robotics is extremely high, too.”

The company’s strategy is commercially successful and acknowledged by public institutions. Palumbo Industries has been certified Entreprise Innovante (innovative enterprise) by Banque Publique d’Investissement. The bank regularly awards companies for their R&D investments, grants special R&D loans and supports companies in gaining access to public and European markets.

At present, Palumbo Industries achieves around half of its turnover through export activities. Currently, Germany and China are the key export markets, each accounting for around 20% of the export figures.

“We see much more potential for us in the export market,” says Mr. Palumbo. “Our goal is to increase our export figures to around two thirds of our revenues within the next two years. For example, in China we aim to rise our figures from 20 to 30%. We are optimistic that our R&D strategy will enable us to enter new markets.”

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