Breaking barriers Alfa-Plam

BREAKING BARRIERS

Serbian company Alfa-Plam, one of the five largest manufacturers of heating devices in Europe, combines German quality with Italian design in its products. General manager Goran Kostić talks to Vanja Švačko about the company’s business strategy.

Alfa-Plam is located in southern Serbia (Vranje). From a simple workshop, Metalac, founded in 1948 with 15 employees working on the production of pots, water buckets, pans and furnaces, the company has become one of the most promising Serbian enterprises. Its long expertise in the production of solid fuel stoves has positioned the company as a leading manufacturer in south-eastern Europe. In 2008 Alfa-Plam introduced a pellet programme which helped expand its client base to overseas markets such as Chile.

Advanced technological processes, new and fresh products and expansion of its production capacities have enabled the company to grow its business globally. In just half a century the brand Alfa-Plam has become well-known and recognised throughout Serbia, the Balkans and Europe.

Making business global

Today, Alfa-Plam covers an area of more than 55,000m² and employs about 800 people. Its annual output is 160,000 units, primarily aimed at households and a wide range of consumer groups. Its entire product portfolio can be divided into six different categories: solid fuel furnaces and stoves; fireplaces; stoves, furnaces and fireplaces for floor heating; pellet stoves, cookers and boilers; gas furnaces; electric and combined cookers.

Although solid fuel stoves comprise 65 per cent of the production and sales, the company is constantly improving its portfolio. “We are working as hard on improving the existing products as on including new ones. Our assortment is constantly expanding to meet the market needs. The new technologies we implement improve the quality of what we have to offer to our clients. All our products comply with the most stringent international requirements and are ready to be placed on the EU market,” explains Mr Kostić.

Alfa-Plam holds the ISO 9001/2008, 18001/2005 and OHSAS ISO 14001/2005 certificates. The company also constantly encourages cooperation between young professionals and existing experienced engineers. “In addition to product quality and a long manufacturing tradition, our employees are the driving force and the biggest asset to Alfa-Plam,” claims Mr Kostić.

Despite the global economic crisis, in 2014 the company recorded an annual growth in sales of 9 per cent in quantity and 15 per cent in value compared to the previous year. About 65 per cent of heating units have been sold to the international markets (former Yugoslavia, Germany, Italy, Austria, Poland and so on).

Alfa-Plam has a successful partnership with leading European companies such as the Italian Royal and Palazzetti, Austrian Lowberger and German Wamsler. Its long-term suppliers of materials are ISD Dunaferr Co. Ltd., Ferro, ETA, Smederevo Steel Works, Weilburger Lackfabrik and many others. The German company Schott is the preferred supplier of fire viewing panels to Alfa-Plam.

Machines such as Trumpf lasers, Amada benders or IMV presses contribute to the company’s high production standards. Alfa-Plam is one of the few manufacturers to offer four types of surface protection (enamelling, powder application, varnishing and painting) that increase the life span of the product.

The turning point in business

Alfa-Plam’s business took a highly positive turn in 2008 when it introduced the pellet programme. “The aim of such a move was to provide our customers with complete comfort,” says Mr Kostić. “As a heating fuel, pellet ensures a high level of utilisation during the combustion, less storage space and the temperature control in premises is completely automated. Furthermore, by developing a product range that operates by using renewable energy sources as pellet, Alfa-Plam wants to be a trendsetter when it comes to environmental protection.”

As a result of significant technological development and large investments, Alfa-Plam is today the best-known regional producer of pellet boilers and stoves. Among the best-selling pellet products are boilers for floor heating such as COMMO 21, COMMO 15, COMMO COMPACT and GRANDE, as well as the pellet stove LUCA, sales of which are constantly increasing.

Overcoming challenges

Alfa-Plam promotes its products at large international fairs such as TIF in Thessaloniki, ISH in Frankfurt, Flame Expo, Progetto Fuoco in Verona and others. However, although it is an example of entrepreneurial success not only at the local level but beyond, the company is constantly battling with misconceptions about the quality of products made in Serbia.

“There is an established misconception coming from the large markets that the products coming from Serbia are far lower in quality than those from French or German manufacturers. Because of that we invest additional efforts into winning over customers. Practice has shown that monitoring market trends, observance of quality standards and hard work help in overcoming those stereotypes,” states Mr Kostić. “Perseverance, honest relationships with our customers and good teamwork lead to excellent results.”

As for the future of the company, Mr Kostić is optimistic. Significant investments are regularly made in new assembly halls for heating units on solid fuel, production facilities for the pellet programme, and new production plants for the manufacture of boilers, machines and equipment. “These investments enable us to offer something new every year. In 2015 we bought CALUX, one of the leading and most innovative Italian brands. Our long-term goal is to become one of the world’s top three manufacturers of heating units. With this strategy we hope our plans will be sustainable,” concludes Mr Kostić. n

Visit: www.alfaplam.rs