A strong tradition MAGNETON

A STRONG TRADITION

The Czech joint stock company MAGNETON, based in Kroměříž, is a traditional manufacturer of electrical components supplied primarily to the automotive and agricultural vehicles sectors. Over 90 per cent of its output is sold to major producers in 50 counties worldwide. Romana Moares reports.

MAGNETON boasts a long tradition and its core business – starter motors and alternators – has remained more or less unchanged throughout the years under various political regimes and different owners. Apart from these two major product groups, the current production programme includes surface treatment services, such as metal galvanising, alloy galvanising, tinning, copper and nickel plating and anodising. “Our products are used in the engines of passenger cars and trucks, buses, agricultural and construction machines as well as in a number of other special applications,” says Cesar Baron, the company’s managing director.

MAGNETON is divided into several divisions, the two most important being electrical components and surface treatment, both located within the Kroměříž facility. The company also offers services such as precision machining, powder coating, thermal plastic processing, calibration and testing. All operations meet the ISO 9001 and QS 9000 standards as well as all current environmental requirements.

Solid history

This year (2016), MAGNETON commemorates the 90th anniversary of its establishment in 1926. The company’s history is rich and varied: over the years it has been incorporated into various industrial groups and achieved numerous important milestones. For example, in 1960 it manufactured the first ring-free watertight alternators with a semi-conductor regulator, designed for special vehicles, and in 1970 was the first manufacturer worldwide to launch the production of contactless electronic ignition (designed for Tatra 613 cars).

The joint stock company MAGNETON was founded in 1994 when the mass production of speed reducer starter motors, a brand new concept in the area of starter motors, was launched. However, the key milestone of the company’s recent history came in 2010, when it was acquired by the Czech Rovina Group, incorporating a number of companies from the construction, manufacturing and other sectors.

“The new owner invested heavily in the modernisation of the product development centre and, in 2016, in production technology to support the growing production of starter motors and alternators. The surface treatment plant has also been undergoing an extensive upgrade of all production lines and a new, additional line is currently being built,” says the managing director.

In 2015, MAGNETON achieved a turnover of about CZK 0.5 billion. “It was first necessary to stabilise the business and optimise

the existing portfolio, therefore a more rapid increase in sales has not yet been achieved,” explains Mr Baron, but adds that in the coming years the management expects total sales to increase by about 40 per cent – primarily as a result of new projects to be launched in 2016.

Top quality, superb suppliers

According to Mr Baron, the key products today are starter motors for agricultural machines and alternators for stationary machines. Within both groups there are new products in the pipeline, to be supplied to the passenger car and construction machinery sectors. MAGNETON’s clients include renowned companies from around the globe – 93 per cent of the total output is exported, with the most important markets being the United States and the Russian Federation, followed by Ireland, Puerto Rico, Poland, Ukraine and Germany.

Quality is key in today’s severely competitive environment, which is why MAGNETON takes great care to select the highest quality raw materials and suppliers. “Our suppliers are an integral part of our success in global markets and we greatly value our cooperation. To name just a few, Panalfa, Hokami, SKF and Bosch are trusted longterm partners to our Electrical Components Division, while Enthone, Brenntag and Atotech are key suppliers to the Surface Treatment Division. However, all of our suppliers provide an excellent service and we appreciate their performance,” says Mr Baron.

The Quality Department works closely with the Testing Centre, which carries out random and comprehensive testing of all products. The Product Development Department helps MAGNETON to not only meet the specific requirements of individual customers but also to come up with new and unconventional solutions.

New products, new future

“As I said before, MAGNETON has invested and will continue to invest in the modernisation of its production technologies. To be more specific, we have recently built a new Testing Station for starter motors and alternators. Extensive investment in the Surface Treatment Division has been made to build a completely new surface treatment (metal plating) line for the products called ‘Common Rails’. We are also investing heavily in upgrading technologies for starter motors production,” says Mr Baron.

Thanks to its top quality products and comprehensive services, the company has been successful in maintaining its market share and winning new business opportunities. Nevertheless, MAGNETON has also felt the growing pressure for continuous cost reduction and further quality enhancement. Negative market developments in Russia and countries to the east, where about half of the company’s products are sold, have also been a factor.

Despite some worrying trends, the company is determined to fulfill its medium and longer term objectives, says the managing director. “Our strategy for the future is clear – we want to maintain our current markets and penetrate new territories, optimise our product portfolio and expand and further develop our distribution network. The Surface Treatment Division will seek to intensify partnerships with customers from the automotive sector,” concludes Mr Baron. n