Business Enquirer Issue 118 | Livar | Oct'23

GROWTH MINDSET LEADER ENSURING BUSINESS OPTIMISATION AT SLOVENIA’S LARGEST FOUNDRY

LIVAR INDUSTRIES

GROWTH MINDSET LEADER ENSURING BUSINESS OPTIMISATION AT SLOVENIA’S LARGEST FOUNDRY

With 18 years experience in the financial sector, prior to joining Livar, Rok successfully advised on the restructure and financial stabilisation of Slovenia’s largest merchant.

In 4 years, CEO Rok has taken Livar from a business with a two out of ten financial stability rating, to a thriving company valued within the top 7% in Slovenia.

Joining the business in 2018 (taking on the role of CEO in 2019 alongside a new management team), Rok oversaw the implementation of Livar’s new strategy - The Roadmap to 2020+, including the business’ financial restructure.

During the financial restructure of Livar, which specialises in the production of grey and ductile cast iron with mechanical processing, the business achieved financial rehabilitation and gained new shareholders. The majority owners became financial creditors from the AnaCap Financial Partners group (currently Veld Capital Partners).

Whilst the restructure saw improved operational efficiency for Livar, one of the greatest achievements of this business turnaround was the saving of 600 jobs.

PROJECT

DIRECTED BY: JORDAN BOSWELL

ARTICLE

WRITTEN BY: LAURA WATLING

A leader with a growth mindset, Rok Rozman was the perfect candidate to take on what was once a business on a downward trajectory.

LIVAR INDUSTRIES

“I believe in the development and empowerment of strong team, and creating a supportive environment for necessary change,” shared Rok, “I want our colleagues to celebrate small wins, understanding that step-by-step we can achieve a bigger goal”.

Livar’s restructure combined with Rok’s leadership ethos has helped the business to adopt and promote a new company culture, which the CEO considers to be the “main engine for change”.

Supporting the business transformation is a new, young management team and collective of industry experts. To ensure the business sustainability, Livar has cultivated development and management programmes to grow colleagues from within.

The Largest Foundry in Slovenia

Working out of two foundries in Slovenia, with a combined net production square meterage of 38,000, Livar runs six

production lines and can produce 35,000 tonnes of casting per year.

Livar’s operations focus on three core areas:

Production of castings

Providing design, casting simulations, and 3D tools, Livar can produce the most complex castings from grey and nodular cast iron.

Machine processing

Additionally, the business can perform tuning, milling, drilling, slotting, and balancing, mechanically processing its castings using CNC technology.

Ducting range

Finally, under its Livar trademark, the business can produce gratings, manhole covers, and custom-made products.

“Livar is a one-stop solution provider. We differentiate ourselves from our competitors through our in-house ability to service the entire life-cycle of

dr. Rok Rozman Chairman of the Board

The future of industry is partnership.

“No one has all the answers. But we do all have part of the answer. It’s why we don’t just work for you. We work with you. And thanks to our global presence, we can do that wherever you are in the world. Together we find the best solutions to your challenges. That’s what we do. We are Foseco.”

Unlocking Excellence: The Foseco-Livar Partnership

In the dynamic world of industrial partnerships, one stands out as a beacon of enduring collaboration and innovation. The partnership between Foseco and Livar isn’t merely a union of two companies; it’s a testament to the power of trust, expertise, and a shared commitment to advancing the foundry industry. Foseco and Livar boast a long-standing history of cooperation that has matured into a strategic partnership. This partnership was forged through the crucible of trust and fortified by the bonds of collaboration among our commercial, technical, and management teams. Over the years, we’ve cultivated multi-level relationships, cementing our dedication to mutual growth and success.

The Genesis of Cooperation

We started developing our partnership about three years ago when Foseco and Livar both embarked on ambitious journeys to reshape their business strategies. Livar’s forward-thinking leadership attracted innovative young talents, while Foseco underwent a comprehensive transformation in management, commercial operations, and technology in the region.Livar’s forward-thinking leadership attracted innovative young talents, while Foseco underwent a comprehensive transformation in management, commercial operations, and technology in the region. Foseco brings unmatched technical expertise to the partnership. Our specialists are always ready to engage with customers, understand their challenges, and propose innovative solutions that add value. In a market flooded with suppliers offering competitive prices, we stand out not just for our products but for our problem-solving abilities and process improvements. Conversely, Livar prioritises casting quality, process optimization, and sustainability. The synergy between our teams is rooted in the trust we’ve built and our shared commitment to challenging the status quo. Effective communication and alignment of goals are crucial for any partnership, especially when dealing with differences in organisational cultures and structures. The Foseco-Livar partnership thrives on open communication channels, enabling us to adapt, grow, and tackle challenges together.

The Journey of Innovation

In our recent collaborations, we’ve significantly improved quality, productivity, and energy efficiency. This includes reducing weight and postcasting operations, resulting in energy and labour savings. Customers now have the flexibility to conserve energy by melting less metal or produce more high-quality castings with the same amount of metal. We’ve also made remarkable enhancements in casting quality, especially in surface finish. Livar’s commitment to innovation shines through their openness to new products, like Foseco’s KALPUR direct pouring solutions, even in unconventional applications. This forward-thinking approach exemplifies our dedication to pushing the boundaries of traditional foundry practices, propelling the industry forward. Our partnership thrives on flexibility and adaptability. We’ve navigated various challenges, from pandemic disruptions to pricing volatility and raw material shortages, all while reinforcing our trust and effective communication, which has made us even stronger.

Building and Sustaining Trust

Trust is a currency that’s hard to earn and easy to lose. From day one, our commitment to openness and problem-solving has been unwavering. Through thick and thin, including the trials of Covid-19, volatile pricing, and material shortages, our trust-driven approach has fortified our partnership. With market dynamics and industry trends in constant flux, we remain resilient and adaptable by continually generating and implementing projects that define new optimization ideas and create value. Leadership and management play pivotal roles in steering our partnership forward. The synergy between leaders from both companies ensures alignment with our shared goals and vision.

A Commitment to Ongoing Value Creation

Our commitment to value creation is perpetual. We don’t rest on our laurels after improving a process; instead, we continuously seek new avenues for optimization and value creation. Collaborating with our customers to benchmark existing practices against our solutions allows us to quantify the value created. In a global business landscape, differences in cultures, time zones, and geographies can pose challenges. However, as a global company with local faces, we have the flexibility to adapt to local needs while drawing on a vast network of colleagues for support.

Sustainability and Corporate Responsibility

Both Foseco and Livar understand the importance of sustainability and corporate social responsibility in the foundry industry. We actively work

towards reducing energy consumption, minimising waste, and improving emissions, all while fostering safer working practices. As we look forward, the Foseco-Livar partnership remains committed to innovation, growth, and sustainability. Our strategic goals focus on adapting to changing market dynamics, developing new solutions, and supporting higher growth regions worldwide.

Company Overview and Strategy

Foseco’s storied history began in 1932 in the UK. Since then, we’ve grown into a global leader in foundry consumables and technology, with a direct presence in every major foundry market worldwide. Foseco sets itself apart from competitors in the foundry industry by creating value for customers. Our projects improve casting quality, boost productivity, reduce costs, and enhance sustainability. We provide top-notch products supported by deep application expertise and foundry process knowledge. Our three-pronged approach to maintaining leadership involves innovation and technology, knowledge and partnership, and a relentless focus on sustainability. Research centres in Europe and America constantly innovate to solve customer problems, while our commitment to partnerships, exemplified by the Livar case, drives growth. Sustainability remains at the core of our strategy.

Product and Solution Offerings

Foundry operations are multifaceted, and Foseco provides solutions for every step of the process. We supply furnace refractories and metal additives for efficient melting, coatings for superior surface finish, filters to reduce turbulence, impurities, and scrap during pouring, and feeders to control shrinkage. No two foundries are identical, and Foseco understands this. Our product portfolio caters to iron, steel, and nonferrous foundries, with each solution customised to the unique needs of individual customers. Innovation is the cornerstone of our approach. Our research and development centres continually improve existing products and introduce groundbreaking solutions to the market.

Industry Trends and Challenges

The foundry industry witnesses a series of trends, including the pursuit of energy efficiency, labour shortages, and the changing automotive landscape. Foseco stays ahead by developing autonomous processes that require less expert knowledge and by assisting customers in designing and optimising new castings to navigate industry shifts.

Sustainability and environmental concerns are at the forefront. Foseco addresses these by focusing on reducing energy consumption, minimising waste, and enhancing emissions control, all aligned with industry and global environmental standards.

Supply Chain Resilience

Disruptions in the global supply chain, including the recent pandemic, require adaptable solutions. Foseco maintains a consistent supply of consumables and solutions through a robust global network and supply chain management. Our collaboration with customers revolves around understanding their unique needs and providing tailored solutions that amplify foundry operations.Timely assistance and technical support are paramount. Foseco ensures that customers receive the support they need through a global network of local teams. Numerous success stories highlight how Foseco’s consumables and solutions have significantly improved customer processes and operational efficiency.

Global Reach and Partnerships

Foseco operates in over 30 countries, backed by a global supply chain. Our global process and product teams facilitate the transfer of best practices, ensuring consistent product quality and service standards across diverse markets. Partnerships are instrumental to our growth strategy. Foseco actively collaborates with foundries, suppliers, and industry associations, supporting local foundry associations and participating in technical conferences to nurture a thriving ecosystem.

A Forward-Looking Vision

As we gaze into the future, Foseco’s commitment to the foundry industry remains unwavering. Our adaptability in the face of changing casting markets and our global presence position us to support growth in emerging regions like India, China, and Southeast Asia. We will continue to innovate, create new solutions, and collaborate closely with our customers to shape the evolving landscape of foundry technologies. In conclusion, the Foseco-Livar partnership is a testament to what collaboration, trust, and innovation can achieve in the foundry industry. As we look to the future, our commitment to excellence and sustainability will continue to drive us forward, shaping the industry and delivering value to our customers worldwide.

the casting process. From prototyping through to moulding and casting to machine processing and quality assurance,” explained Rok, “not only do we have the largest capacity in Slovenia, we are centrally located which adds efficiency for clients”.

On the Path to Excellence

With the business now financially stable, Rok and his team have set their sights on a new vision: the Roadmap to Excellence 2025.

Ultimately, Livar aims to become the first choice supplier for casting production, machining and assembly solutions, empowered by sustainable centre of excellence and highly motivated team. Livar’s strategy is supported by five pillars: sustainability, people, clients, production, and processes.

“The strategy is powered by innovation and culture. Initiatives in our Roadmap to Excellence focus on adding value to clients, improving efficiencies, and reducing fixed costs,” shared Rok.

A business case has already been presented to expand machining capacity at the foundries by 30% to add value as well as plans to consolidate its operations into a single facility to improve efficiency.

When it comes to innovation, it is clear that AI will have an exciting impact on Livar, with the business already being supported by solutions in 3D modelling to help it to produce optimal casting results.

“I foresee that AI will benefit the business by offering more robust data tracking which will help to increase productivity,” shared Rok, “it will also help us to make quicker decisions and enable more precise inventory management. This will likely improve the business in terms of efficiency and cost savings, and will be another value add for clients”.

Whilst the potential benefits of AI are on the horizon, it is in sustainability and ESG that Livar are reaping the reward of in the

here and now.

Supported by the Norwegian financial mechanism, Livar has participated its CIRCI project, backed by the Slovenian Chamber of Commerce and Industry. The circular economy initiative has seen the implementation of an innovative new process which enables the reuse of specific waste materials from the foundry and machining production into a new product.

“We are now embarking on the final production tests. Initial results are promising and are indicating potential savings of €1 million. We are proud of this project and we strongly believe that the predicted savings will be delivered,” shared Rok.

At its core, Livar has been a part of the circular economy for 70 years, with its business collecting and recycling metal waste and moulding it into a new function. However, with better technology it now has a clearer vision and further opportunity to measure and report on sustainability outcomes.

With that in mind the business has outlined its ESG goals for the next two years. By 2025 (compared to a 2021 baseline), Livar has made a commitment to improve its carbon footprint by 5%, increase its energy usage from sustainable resources by 20% and reduce waste by 10%. Additionally it aims to increase the average salary in the company by 20%, and increase training resources by 20%, whilst reducing sick leave by 10%.

“We need to become more courageous and more ambitious with our goals. Now is the time for Livar to become more strategic and fearless about protecting our environment, people and communities, whilst creating the highest value in our field of operation,” added Rok.

www.livar.si