Shifting Gears

At the helm of innovation, Linamar Corporation is powering the vehicles and machinery that will define the future. Desire and demands are changing at breakneck speed, and survival means adapting today to service a market of tomorrow.

Leading this transformative journey is Asia Pacific Group President Henry Huang, who has been with Linamar for 12 years, guiding the company’s Asia–Pacific arm through a period of remarkable growth, which saw Linamar’s turnover grow from US$2.18 billion in 2011 to an impressive US$7.27 billion today.

“The growth we’ve witnessed is monumental,” Huang says, attributing this success to the company’s sharp focus on diversification. “In a world where technology is accelerating, the human skill set must evolve, and companies are under pressure to expand their capabilities.”

Huang is committed to ensuring a unified vision within Linamar, aligning his perspective and aims with those of his team to not only meet but exceed customer expectations.

An EV Pioneer

Linamar’s expertise in precision machining has positioned it at the forefront of the EV revolution, a transformative shift that offers new horizons for growth.

“To ascend in the automotive sphere, we recognized the need for a dramatic portfolio evolution,” Huang says.

As vehicles evolve, so does the demand for lightweight components. Linamar is leveraging aluminum for critical EV body parts, aiming to improve efficiency and reduce weight, signifying a move toward aluminum casting and supplying advanced electronic drivetrain systems.

“Moving beyond mechanical components, we envision Linamar becoming a quintessential drivetrain supplier, offering both the motor capability and control necessary for the next-generation vehicles. Our collaboration with one of our key customers points us toward higher-speed electric motors, heralding a leap in efficiency,” Huang explains.

“These areas of diversification allow us to continue to increase the dollar value per vehicle for Linamar.”

Ongoing strides in diversification are not just limited to automotive advancements but extend into the rapidly expanding markets of China and India, especially in the realm of two-wheeler EVs.

“The drive towards electrification, especially in China, opens up significant market opportunities for us, particularly with simpler, yet lucrative, drivetrain systems for motorbikes,” Huang notes.

Robotic Revolution

Moreover, Linamar’s venture into robotics alongside a European startup showcases the company’s commitment to pioneering technology; it’s aiming to unveil groundbreaking products within the next two years.

“We are working on some fantastic technology that we believe is going to give us tremendous growth down the road,” Huang says.

However, the transition to EV components, with their lower dollar value, necessitates further diversification into agricultural and construction machinery. Linamar has already established a substantial US$1.45 billion agriculture division.

Expanding into new territories from Eastern Europe to Central America and across Asia, Linamar faces diverse market challenges, particularly in China’s fiercely competitive environment.

“In North America, there may be only four or five companies in one market segment. In China, for every product there’s probably 50-plus competitors. Distinguishing ourselves in such a landscape is crucial, and we achieve this through robust partnerships,” Huang says.

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“It is a pleasure to cooperate with Linamar. Linamar adheres to the concept of growing together with its suppliers. Therefore, the cooperation between Jiangsu Liyan Technology and Linamar is not only a simple buyer–seller relationship, but also a blend of values. We are following Linamar’s footsteps, pursuing growth and creating a better future together.” – Judy Yaping Zhu, Vice-General Manager, Jiangsu Liyan Technology

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Linamar prides itself on relationships that extend beyond transactions, viewing suppliers as integral ecosystem partners, where mutual growth triumphs over mere profit margins.

“In forging strategic partnerships with companies like Jiangsu Liken Technology, it’s imperative that our partners are aligned with our vision to ensure they can support us effectively,” Huang emphasizes.

The Extra Mile

Differentiation for Linamar also means excelling in technology, delivering unparalleled customer service, and fostering teamwork.

Huang recounts a pivotal moment when Linamar displayed exceptional agility in response to an urgent demand from one of its key customers amid the COVID-19 pandemic, mitigating potential production disruptions with swift, strategic action.

He says, “We went to see the plant and in 24 hours we had generated a proposal to the customer in which we outlined a plan to increase production in North America to ship the parts to China while also assembling a small team in their facility to create equipment in the immediate term, moving to our own facility within three months.

“It was a really nimble, flexible and quick response. We saved the customer from production interruption and that’s in the middle of a pandemic.”

Ensuring the Linamar team is synchronized with market movements is critical.

“Success hinges on having a team that’s not just dedicated but driven and motivated to deliver top-tier performance and service,” Huang reflects.

Huang is proud of Linamar’s low employee turnover, a testament to the company’s commitment to fostering an environment where knowledge sharing and internal growth are paramount.

“Every manager makes sure they’re helping the people around them. In fact, 70 percent of our jobs are filled internally,” he reveals.

“We champion an ethos where growth within the company benefits all, reinforcing our vision of building a formidable team that drives the business forward, outpacing the competition.”