SDG Business Accelerator Lab - Inox Plus Company Case

COMPANY PROFILE Year of Establishment 2011 Number of employees 60 Geographically covered area

Republic of Moldova, European Union, Commonwealth of Independent States

Objectives for extension:

establishing the mass production of stainless-steel furniture. production of large barrels, cisterns and vessels for winemaking and beers. increase exports.

BACKGROUND The company is one of the leading stainless-steel processors in Moldova. The company started out with offering stainless steel raw materials, offering its customers 304 and 430 grade, sheets of various thickness, pipes, bars, profiles, fittings and other stainless-steel accessories.

With the development of the company, it was decided to open a production section with welding, bending, rolling, professional cutting machines to produce stainless steel barrels, containers and liquid storage containers.

Further development led to the production and installation of railing and industrial equipment: tables, lavatories, sinks, shelves and other equipment necessary for a modern kitchen.

All materials are imported from Italy, Greece, Germany, Czech Republic, Poland, Turkey and Asian countries and are manufactured in Moldova according to the European Standards.

VALUE OF NEW PRODUCT/SERVICE Small steel processing companies shall have access to affordable advanced manufacturing facilities. Inox Plus is developing a model of shared access to automated production facilities.

PROBLEM ADDRESSED

SOLUTION PROPOSED

The production process, from a technical point of view, is inefficient. Production is manual, with outdated technical equipment. The production cycle includes many stages that need to be optimized.

One creates spaceships with a shovel. The aspirations are high, there is a demand on the market for automation solutions, while most of companies are primitive in terms of equipment across the industry.

The company’s solution is based on the need to optimize production processes. Thus, it involves technologization through innovative and environmentally friendly equipment. The aim is to align the production cycle with current ecological standards, reducing noxious emissions, streamlining the use of energy resources and minimizing waste of raw materials. Also having a state-of-the-art technical equipment, the company will be open to share with less technological companies with our experience, offering them possibilities to use our techniques.

MARKET LAUNCH In parallel with the optimization of technological processes, there will be identified new domestic and international customers and dealers, to initiate mass production, with increased volumes. The term for launching on the export market will be determined by access to relevant financing and investments and new sales contracts.

APPROACHED SUSTAINABLE DEVELOPMENT GOALS The primary SDG-related impacts following the implementation of the proposed project are focused on Upgrading Research and Industrial Technologies (SDG Target 9.5). Inox Plus aims to increase expectations of clients through faster supplies and higher excellence in production. The proposed project will be a resonant one for the Moldovan metallurgical industry. State-of-the-art technologies will be implemented, the impact of industrialization is estimated not only at the local level, but also at the regional level and at the level of the Eastern Partnership – the company aims to stand out in the EU economy as an enterprise that features the coming innovations of industrial sector in the Republic of Moldova.

The secondary SDG targets are varied and have a close relationship with the project implementation, namely: Adoption of Efficient and Clean Energy (SDG Target 7.3 & 7.A), Resource Efficiency in Production and Consumption (SDG Target 8.4), Decent Work with Equal Pay (SDG Target 8.5 and 8.6), Reduce the Environmental Impact of Cities (SDG Target 11.6), Build Sustainable Company Practices (SDG Target 12.6), Enable Access to Technology, Science and Innovation (SDG Target 17.6), Encourage Effective Partnerships (SDG Target 17.17). Ecological impact expected is directly related to the use of the latest technologies, ecologically responsible, which consume electricity rationally but also eliminate as little as possible harmful emissions into the atmosphere and environment. Internally, Inox Plus aims to implement sustainable work practices, implementing corporate values of social equity, to encourage initiatives by other metals processors. Additional effects, complementary to the implementation of this ambitious project, are related to the concept of technology transfer that will be promoted. Thus, it is intended not only to offer access to technologies for local companies, but also to educate own future skilled and semi-skilled staff trained through this program.

POTENTIAL PARTNERSHIPS Inox Plus would consider expanding their presence on the international market by attracting new companies to our dealer network, and which consider that the conjuncture of its local market responds to the offer presented by the company’s existing and new range of products. The cooperation will present a long-term opportunity, in which increased volumes, regularity of delivery, selling success criteria and applicable bulk discounts will be offered.

The transport will be performed preferably by the dealer, taking delivery from the company’s warehouse(s) in Moldova.

STATEMENT OF COMPANY DIRECTOR Inox Plus became one of the most important economic growth agents in the field of national distribution of semi-finished products, industrial products and stainless-steel accessories.

The company has an impressive capacity to store materials in warehouses in Chisinau, owns its own logistics network and a team of highly qualified and experienced professionals in this metallurgy and manufacturing fields. I believe that aligning our business model to the Sustainable Development Goals is the way to go if we want to be both profitable in the long-run, and also to protect the environment and the interests of the future generations.

THE INVESTMENT NECESSARY TO LAUNCH THE PRODUCT AND EXPECTED RETURN ON INVESTMENT The value of investments in high-performance production equipment required with positive ecological impact is approximately 500,000 euros, more specifically we refer to equipment such as: sheet bending machine, sheet rolling machine, head flanging machine, elliptical head machine, hydraulic guillotine, swaging and beading machine, CNC welder for longitudinal seams, welding column with rotary table, rotary weld processing machine. The company is looking for a partnership through investments in the construction of its own new modern production hall (to exit from existing lease, and to include in one centralized place for production, warehouse, office and showroom). The cost of the equipment will be redeemed in 2-3 years, and of the production over 4-5 years.

THE ROLE OF SDG ACCELERATOR IN IMPLEMENTING THE PRODUCT/SERVICE ALIGNED WITH SDG From now on, we plan and operate more in terms of sustainable development, in relations with customers, suppliers, partners, financiers and so on. we see added value to our imagination and credibility tied to a more sustainable planet.

CONTACT DETAILS R. Moldova, Chisinau, 17/3 Petricani St. Development Department – (+373)78262888 Web site: www.inoxplus.md e-mail: office@inoxplus.md