Strength in diversity Agrikon Kam

STRENGTH IN DIVERSITY

Despite these turbulent times, driver’s cab manufacturing firm Agrikon Kam Ltd in Kiskunmajsa, Hungary, has secured its leading position in the market by acquiring several new customers and extending its product range. As a result of its new projects, the company is experiencing dynamic development whilst making new investments. Edina Beale reports.

Over the past two years Agrikon Kam Ltd in Kiskunmajsa, south Hungary, has successfully diversified its product range by targeting customers in the construction industry. In addition to maintaining its long-term partnership with the leading combine harvester manufacturer, Claas, the Hungarian company has acquired several new customers in the construction market. It now designs, develops and produces driver’s cabs for construction machines including road rollers, mini hydraulic shovels, loading vehicles on wheels, and manufactures welded parts for public service vehicles such as road sweepers. Balanced portfolio

New customers who are supplied with driver’s cabs include the German Hako, the American-German Terex company and the German firm Kramer. Whilst the main market remains Germany, Austria has provided a growing market in recent times: Agrikon Kam

now develops and produces cabs for mini hydraulic shovels for WackerNeuson and exports welded products to Liebherr, who will also require cabs from the company in the near future. In addition, the Russian and French markets have been maintained whilst increasing opportunities in the Czech Republic are being explored.

“The new projects have allowed Agrikon Kam to develop a much more balanced, healthier portfolio. In general, they are not the high volume that we are used to, instead of 8-9000 units per year, they want about 500-3000 units. However, our new customers require us to provide a full service from the design stage to the development and manufacturing of products,” explains Mr Pál Velkey, general manager of Agrikon Kam Ltd. “As a result of this, our engineering department has developed dynamically; our team now consists of more than 10 design engineers, and our tool making units are also being enhanced so that we are able to manufacture our own tools in house in order to carry out the production.”

At present, the company, which was privatised by Hungarian private investors in 1993, employs 300 people. Last year the firm generated €23 million, and the company expects accelerated growth in the near future. “Since it takes about one or one and a half years to develop and test a prototype before starting the production process, the effects of these new projects will only be reflected in the turnover at the end of 2014.”

Rich in resources, free from banks

Agrikon Kam exports nearly 80 per cent of its products, the remaining share is distributed to its long-term partner, the Hungarian subsidiary of the international Claas to whom the company has been the exclusive supplier of driver’s cabs for combine harvesters since 1976. Currently only 65 per cent of the production capacities is utilised, so that Agrikon Kam is in a position to welcome new customers with large volume requests without the need of new investments.

“There is no need to increase our capacities, as there is plenty of production space in our current plant that can be used. There are no real rivals in our region of Hungary, in machine making, so that high-quality staff are easily accessible for us,” says Mr Velkey. “Our focus is to meet the demands of new customers and to provide them with a fully complete technology.” Coating is one of the main aspects that is increasingly important; quality requirements are growing in this area. The company has recently extended its e-coating capacities and

invested in a technology to provide powder coating services for customers. Thanks to another important strategic investment, from the summer of 2013 it will increase the number of welding robots from 4 to 14.

“We are no longer relying on the banks; we have paid off all our debts, which is a great advantage,” continues Mr Velkey. “We are now in a position to finance new investments from our own resources which provides us and our customers with security.”

Set for growth

Agrikon Kam is in a fortunate position as there are no rivals in the cab manufacturing sector in Hungary, and the company is the largest and most experienced in this field in the whole of eastern and central Europe. Due to Hungary’s favourable geographic position, the company is able to offer competitive prices to foreign customers. “The more efficient we are, the more competitive we will become for our customers in western Europe. Our aim is to continuously improve our technologies and later extend our capacities so that we become a competitive cab manufacturing company that exceeds all European requirements.

“Next door to our existing plant we have more land where we can build new production facilities as and when we require them; our capabilities for growth are already in place. Our long-term goal is to utilise these resources. The owners of the company are happy with our current results; our financial independence is a vast and important achievement. However, our main advantage is our 35 years of industry experience. Our professional team of experts is our greatest treasure,” concludes Mr Velkey. n