We had the pleasure to interview Giordano Riello, vice president of Confindustria Ungheria, position shared with Alessandro Farina.
This interview is part of our series of interviews with members of Confindustria Ungheria edited by Economia.hu.
We invite you to read the previous interviews: with the president of Confindustria Ungheria Roberto Massucco (Massucco Industrie SpA), with the vice president of Confindustria Ungheria Alessandro Farina (ITL Group), and Omar Balducci (Lucart ).
Could you introduce RPM Hungaria?
My name is Giordano Riello, and I am the CEO of the Giordano Riello International Group, of which RPM is a part of. RPM has been present in Hungary for 23 years now.
RPM Hungaria is a manufacturing company that was established and grown in Hungary by my father in 2000. Two decades ago, Hungary was a very different country from what it is today, less known and with fewer Italian companies.
We chose Hungary due to its strategic location, which allows us to take an interest in other geographical areas. We didn’t relocate or transfer production solely for labor cost reasons but also because we believe it is strategically positioned geographically.
In Salgótarján, a town 100 km north of Budapest, we manufacture small electric motors exclusively for the air conditioning and heating sector. These motors are used in fan coil units that you see attached to walls or ceilings in residential buildings, commercial establishments, airports, and more.
We have a company with about a hundred employees dedicated to producing this type of product. Our General Manager is an Italian who moved from Badia Polesine – where the exports for this company, RPM Italia, are located – and came to Hungary in 2000, where he settled, got married, and started a family.
What are the company’s relations between Italy and Hungary?
From a work perspective, we certainly have exceptional relationships both with the Hungarian part in Italy and the Italian part in Hungary, as well as with the Hungarian part in Hungary. We were warmly welcomed by the Hungarian authorities when we were evaluating various countries to establish our production area. Hungary was, in a way, competing with other areas in Eastern Europe. Also, due to the excellent cultural openness we found in this country, we decided to open and establish our plant here. Since 2000, we’ve had a truck that makes two trips between Hungary and Italy every week, so we’ve covered many kilometers between Badia Polesine and Salgótarján in these 23 years of activity.
What were some of the main challenges you and the company faced, and how did you overcome them?
Initially, the major challenge we faced was definitely the labor force, for two reasons. Firstly, we had to educate people about the type of product since there wasn’t a district related to the electric motor sector, and thus the staff needed training regarding this technology and production processes. We even took them to Italy and explained how we work there and what quality standards we wanted to ensure in Hungary.
Connected to this, the problem we initially faced was the instability of the workforce: sometimes people showed up, sometimes they didn’t, and some would leave without notice. Therefore, there was an educational process regarding the meaning of work. However, we found capable Hungarian area managers who helped us greatly in this process, and over time we managed to bring stability to the workers and the production process, ensuring quality standards that are on par with those in Italy.
It was a task that took several years and a lot of effort, but today I must say that the quality of work in Hungary is just as high as what we have in our Italian facilities.
What advice would you give to Italian operators interested in investing in Hungary?
Hungary is a completely different country compared to 23 years ago. If someone today thinks of producing in Hungary considering only labor costs, from my experience, it doesn’t make sense anymore. Personnel costs have significantly risen in recent years. Moreover, we see an increase in the minimum wage every year. Hungary should also be seen as a gateway to the East: as we mentioned earlier, it is strategically located in the center of Europe. It can be very versatile from a logistical standpoint. There is also a huge automotive district that has grown, and that could impact the Italian supply chain, as we have been proficient in automotive for years.
How do you envision the evolution of your work and the company in the future?
Our intention is certainly to keep the plant in Hungary active and thriving for the next years, potentially indefinitely. We don’t want to close or relocate production; in fact, we believe it’s a strategic asset to be maintained and valued for a long time, and we are genuinely proud of it.
“WEALTH FOR ITS OWN SAKE IS USELESS; IT IS A POSITIVE TOOL IF IT BECOMES A MEANS TO SUPPORT THE COMMUNITY, GENERATE WEALTH, AND FURTHER INNOVATION. THIS DISTINGUISHES AN ENLIGHTENED ENTREPRENEUR FROM ONE WHO CHASES PROFIT ALONE.”
– GIORDANO RIELLO
What advice would you give to Italian operators interested in investing in Hungary?
I would certainly advise getting closer to the country and understanding the opportunities that may arise under the various incentives proposed by the government for manufacturing companies. I believe it’s a country that can still offer a lot, especially to Italians, also because we are close logistically: reachable in a few hours by car or an hour by plane. Being an Italian company, it’s also essential to seek the assistance of an embassy, with which we have an excellent relationship and always have historically; they have always supported us with any requests on the ground.
How do you balance your professional success with your private life and personal well-being?
The answer I give is my wife Francesca, the real pillar holding the family together and enduring the distance. I have three children, one is six years old, one is three, and a newborn girl, and I’m generally away from home throughout the week. I leave on Mondays and return on Fridays; I came back from Israel yesterday because I had an appointment today. Last week I was in Mexico, next week I’ll be in Canada. Finding a balance isn’t easy. However, when you love your job, you do it with love for your family as well; this is the most beautiful thing you can have. I must thank my wife immensely, without whom I wouldn’t be able to do what I’m doing, along with all our collaborators. And I must say that my three children are the most wonderful startup I’ve ever created.
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