Forging ahead Hámor

FORGING AHEAD

It is a challenging time for businesses: the current financial situation is affecting every sector, and uncertainty is the theme running through the commercial world. With this in mind, how does a long and wellestablished forging company in Hungary face these difficulties and still manage to move forward? Edina Beale finds out.

Hámor plc has a long and distinguished history. Despite previous changes that have transformed the face of Europe this company has not only survived but adapted to meet the new challenges head on. Whilst many companies are struggling to come to terms with the current situation in Europe, Hámor plc is using its previous experience to ensure that the company maintains its acquired positions. Since its inception in the 19th century this company has produced products ranging from armaments and railway rolling stock components through to today’s exciting product range.

With just one production hall and a two storey office block located in Miskolc, northeast Hungary, this company is managing to meet and exceed its customers’ requirements and expectations. Today its core products are rings, spindles, bars and discs in various weights and sizes.

Bespoke products for targeted industries

Hámor reviewed its operations with a critical eye to identify in what areas it had the advantage over competitors and which sectors would benefit from those advantages. Managing director Mr Ádám Brindza explains: “Competition in the forging industry is strong in Europe – however, our company has many advantages to stay competitive. Flexibility is our number one advantage; we react fast to customer enquiries and deliver our products promptly keeping to deadlines. Our prices may not be the lowest but they are competitive. Fast information flow is very important and that is what we are very good at.” This is not the only area in which Hámor has the advantage. The ability to identify emerging markets is key to the continued success of such a well-established company, whilst the sudden proliferation of wind-generated power alone has led to opportunities in that sector.

Although the new wind turbines are an emerging area, Hámor also recognises the importance and opportunities provided by more traditional industries including the oil and gas industry, chemical industry, ship building industry, paper and machine industry, and a small demand for medical tools. The company’s ability to forge products which are very large or very small provides another competitive advantage. It is able to forge items from 6kg to 6 tonnes, to bespoke requirements.

Quality is no longer jusy a selling point, but instead is an essential component of the process. Mr Brindza provides an explanation: “Quality is of course a fundamental base of any manufacturing operations. The recession swallowed all European forging firms that could not provide the required quality products and therefore we do not see ‘high quality’ as an advantage any more – rather it is an essential criterion for operating in this business.”

Whilst the need for quality is now a basic fundamental, there is also a need to ensure that the company has the relevant certification to prove that quality. Hámor’s products are approved by numerous quality certification companies including TÜV, Det Norske Veritas, Lloyd’s Register, Geranischer Lloyd, Bureau Veritas and the American Bureau of Shipping. “Today we have all the necessary quality assurance certificates that a forging company can be in a need of,” says Mr Brindza.

Cast iron foundation

In the current climate it is understandable for businesses to be cautious and reluctant to experiment. But Hámor has been here before, as recession and political change are problems it has faced previously and emerged even stronger than ever. Whilst it is not expanding at present, the company is continuing to invest €300,000 a year into maintaining and updating its technologies to remain competitive.

Currently, 75–80 per cent of the company’s production is for export. The main market (accounting for 35 per cent) is Scandinavia, including Sweden, Finland, Norway and Denmark, whilst the other 35 per cent is the eastern part of Europe including the Czech Republic, Slovakia, Serbia, Croatia and Poland. Then 15–20 per cent of exports go to Germany and the remaining 10 per cent is to other European countries, including Italy, Spain and France.

Over the past five years many companies have struggled with the changing requirements of the markets and the loss of some key players. Hámor has managed to ensure that it has achieved a steady turnover of €20 million annually in the last five years. This steady performance and a proven track record have put the company in a strong position. Mr Brindza is realistic in his assessment of the future for the company: “Our main objective is to maintain our position and to keep our current workforce of 205 people. We do have plans for future investment; however, the future of the whole world is uncertain at the moment and therefore we do not dare to go ahead with these plans just yet.”

Hámor is once again experiencing a period of great change, but its long history and cautious approach should ensure that it continues with its steady growth in the years to come. n