While other automotive companies have their facilities located mainly outside Chișinău, in regions facilitated by free economic zones status, MOD Engineering is located in an office building in a very intensively circulated part of the capital. And that is because core activity here is not manufacturing, but rather a complete process of research, engineering and industrial design of the parts that go into manufacture elsewhere.
A team of only 25 people is admirably efficient to serve some of the largest industrial companies around the world in their manufacturing processes, as well as designing new components and new products. MOD Engineering is an Italian investment in Moldova, serving as a part of the CPI-ENG engineering company, with locations now in Italy, France and Moldova, accounting now for 25% of its engineers’ global team. The Moldovan company was founded in 2012, being the country’s first company of this type. After 9 years, the team here serves as a crucial competence centre and engineering hub for the international group.
So, what is the area of expertise and where do the products designed in Chișinău end up in the global industry and in the final products? Speaking of expertise, MOD Engineering does the complete pre-decision phase of designing a part, and we refer here to the market study, feasibility study of certain ideas or technology in the prospect of its implementation, cost analysis and consulting. The main part of the services comes when the engineering part is being carried out. The local team does the complete engineering – from materials used to shape in function and subsequent projecting in 2D and 3D form, in a CAD format for future manufacturing processes. So, the partner company receives a complete project and all the working sets of files for the manufacturing of the part and for the further assembly line. Another phase which is often required is writing and providing of technical documentation for the designed part, which allow further approvals and standardizations according to ISO and even GOST standards. And there is an additional phase of assisting the project until its implementation into manufacturing.
From simple to complex engineering projects
So, all those components may be contracted separately, several of them or all together as a part of a complete project. The Moldovan team can provide all those components, but sometimes there is a need only for one single part of the entire process, so they would happily do what their customers require. And, as they have shared with us, they are happy to see customers with whom they already have a history of successful projects starting to ask for their services at the stage of the initial product engineering so that they can come up with their innovations at an early stage of the development.
MOD Engineering products end up in industrial equipment, electric motors and generators, the naval building industry and aeronautics, the food industry and medical equipment. If we go further to even more specific tangible examples, some of the most curious products make up the list. Besides naval engines, parts engineered at the company’s facilities can be found in various electric motors and alternators. They also engineer components for assembly lines, industrial pipes of gas and oil, steel structures, and hydraulic systems. There are even some medical devices that contain parts engineered in Chișinău. And the requirements and technical documentation is even more demanding and specific there.
Further business growth
And a new path for the company’s growth, which is being prospected now, is manufacturing some of the engineered parts at new facilities in Moldova. That would allow MOD Engineering to expand from being an engineering company into a manufacturing one, delivering the components to the assembly line as a supplier for the final plant. Franco Pollesello, CEO of MOD Engineering in Chișinău, has also told us about his experience operating in Moldova after almost 9 years of the company’s first foundation. He was straightforward in saying that 9 years ago he and his shareholders chose Moldova as an alternative to India to outsource some engineering services, having the advantage of geographical proximity, a minor difference in time zone, and access to skilled professionals. Even though the overall operating cost is higher than in India, all the other competitive advantages are outpacing that difference and make Moldova a much more attractive country to invest in.
Franco Prosello also praised a favourable and clear taxation system in Moldova, which led his company to ensure a good return on investments to its shareholders. As we told us, during the entire activity in Moldova, his company has never encountered any legal impediment of any other sort of impediment from any authority, which fortified his belief that Moldova is a far better environment for business than stereotypes tend to say.
Moreover, in 2021 his company was awarded by tax authorities in Moldova the title of „taxpayer with a high level of credibility”. So, that was an excellent recognition from the authorities for the company’s correct manner of conducting business, which made him now transmit a message that any investor should highly consider Moldova as a destination country for their next investment.
For many years the Finnish company Wartsilla has been one of the main clients, and parts engineered by the MOD Engineering team were manufactured and installed in immense naval diesel engines that Wartsilla produces and delivers worldwide. Wartsilla is a global leader in naval diesel engines, producing two-stroke diesel engines for some of the largest container ships.
The engines are manufactured in partnership with CSSC in their joint venture, WinGD, with headquarters in Switzerland and production facilities in South Korea and China. Wartsilla carries out the four-stroke diesel engines, and they are focused to medium-sized ships. All those diesel engines can have a power range from 12,000 HP to 109,000 HP and size from a few meters to a size of a 4-store building. MOD Engineering in Moldova handles the engineering of about 90% of the components of such an engine. And often, when such parts are engineered, parts for their maintenance are also designed and engineered to ensure an efficient synergy in manufacturing and further operation.
