Lighting the future SG Automotive

LIGHTING THE FUTURE

SG Automotive d.o.o. made its name as one of the recognised suppliers for commercial LED lights globally. Mr Benjamin Nikl, sales manager of SG Automotive, spoke to Vanja Švačko about the company’s strategies for staying strong in this competitive market.

Just a year after CMP Electronic Ltd was founded in 1997, the Grah family and Alfred Schefenacker put together their ideas for a potential business and started the joint venture SGA (Schefenacker Grah Automotive). While CMP Electronic was engaged in automotive wire harness assembly production, SG Automotive started introducing new production programs and offering different electronic components for the automotive industry.

Mr Nikl said, “Since 1999 our offers have ranged from LED based electronics for brake lights to today’s more complex whole tail light LED electronics assemblies. Since 2008 we have established the spin-off Grah Lighting as a well recognised worldwide supplier for commercial LED lights (street lighting, industrial lighting and ambient/office lighting) and in 2011 the program for induction heater electronics was started.”

It is safe to say that today SG Automotive is one of the few manufacturers in the world whose energy efficient LED streetlights are produced on the most advanced automotive production line in compliance with the standard Automotive ISO/TS 16949. There are regular investments in modernisation of equipment such as 3D robotic technology for applying gasket etc., as well as in development of its own manufacturing procedures to speed up production times.

The company offers a range of products (automotive, lighting, home appliances and others), with the automotive sector contributing the most to its turnover (about 73 per cent). According to Mr Nikl, “Almost all products are customised according to customer demands and applications. The lighting range is mostly standardised and has different customisation possibilities (colour, light output, consumption, dimming, applications, built-in camera etc.).”

Group stratification

The history of SG Automotive has been marked by the fast growth of production facilities and product diversification, while today it is focusing on growth through development of new products and technologies. The group currently employs more than 1000 people and has six plants - four in Slovenia, one each in Serbia and the USA. In fact, an expansion in the USA – an assembly plant for LED lighting – is currently in its final stage;

similar projects are planned in Russia and preliminary discussions on a plant in UAE are under way.

All plants are well integrated into the group. Sustainability is a main priority in such a large company in terms of both product development and general strategy.

“We have two major strategies when it comes to the future of our company,” explained Mr Nikl. “Our short term strategy is to sustain the same number of employees, while the long term strategy aims to balance the three levels of product groups as well as to sustain the automotive business at the current level.”

Supplier of the year

Considering the fact that SG Automotive has pioneered the use of LED technology in lighting and automotive signalisation, it does not come as a surprise that it has clients among world leading automotive manufacturers such as Mercedes-Benz, BMW, Audi, Porsche, VW, Ford, Hyundai, Bentley, GM, Nissan, Volvo, Toyota etc.

SG Automotive acts as an OEM to clients like Adria, Thorn, Franke, Miele, Man, Land Rover etc., and as a system supplier to AngellDemmel, Odelo, Bos, Magna, Savoye and many others. The company is also maintaining strong partnership with suppliers like Philips Lumileds, which is an important partner in the development of LED lighting.

In 2013 the company was also awarded Supplier of the Year by one of its biggest customers in the field of automotive electronics.

Key investments

In the past few years SG Automotive has invested in the expansion of production facilities in Serbia, Slovenia and USA. Apart from having a major focus on markets of Europe and USA, there have been some indications of possible expansion to the Russian market through its plant in Serbia.

Mr Nikl said, “The automotive sector is the one where customer demands are getting higher. Our main goal is to be a solution providing partner and to grow synergisticly within our chosen strategic partnerships. With stricter demands and new technologies there is always some additional potential to grow.”

The R&D department in SG Automotive is working at the moment in the field of electronics and in the field of consumer goods. Mr Nikl stated, “The lighting segment brought out a new generation of LED streetlights at the beginning of this year which was presented at the fair in Frankfurt, with quite impressive feedback. Technologies in the assembly process are known and highly efficient and in some lean processes and customised technology ideas we are trying to create a competitive edge.”

SG Automotive is well placed to fulfil its vision to become one of the global leaders in the EMS and OEM business and to satisfy the most demanding customers in the field of automotive electronics and home appliances. n