Manufacturing Journal Volume 5/3 - 2008
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magazine
The World of Business
â‚Ź5
Innovative and Drive to socially responsible success‌.
The symbol of luxury and sublime taste
page14
page 32
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Manufacturing Journal
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Covers All sides of International business
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PRELUDE Sold? Now it is your problem!…
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sually when a sale is made, in most cases in a hard way, the post-sale leaves much to be desired. You made an investment in new customers catchments, Lot of money are spent on marketing activities “focused on customer,” everything to gain competitive advantages over competitors. Companies usually in their quality programs set its mission as “the customer first”, but few is done after its conquest. Simply use Technical Support services and in some cases need an Ombudsman to realize that much still needs to be done on the quality care. Generally staffs receive sales commissions and are constantly motivated for their goals fulfillment, something that happens with little regard to personal service. People satisfaction is a result of a number of factors which emphasizes satisfaction with institution, with the service, organization activity, interpersonal relationships, health and quality of life at work. To achieve excellence in customer service it is need to work initially professional relationships and not lose weight on the customer’s issues. This is vital for the achievement and maintenance of customers and, consequently, achieves high levels of quality and productivity. Typical approach to relationship marketing says that costs more win a new customer than to keep those you already have. So, to delight a customer, or just keep make him obliged to give something from them you need a sincere smile, a pleasant tone of voice or at least correct information. Customer is all in one organization. For a company customer is the king.
Editor:
Manufacturing-Journal 1
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Managing Director Patryk T. Zborowski Editor Patryk T. Zborowski Profile Writers Natalia Tokarska Agnieszka Rutkowska Claudio Corciulo Vladimir Grudin Aleksandra Strojek
Contents: 1 2 4 12
Prelude Contents News Country profile
Construction Industry:
Art Director Wojciech Kosmowski Project Managers Aleksandra Olejnik Agnieszka Bechta Katarzyna Marciniec Vladimir Grudin Administration Wioletta Zborowska
14 20
Z.A. Puławy Bogdan Corporation
Z-MEDIA Dietla Street 11/11 31-070 Cracow Poland e-mail:info@manufacturing-journal.net advertising:adcopy@manufacturing-journal.net phone number 1: 0048 12 4337115 phone number 2: 0048 12 4337065 phone number 3: 0048 12 4337066 fax number: 0048 12 4337116 web:www.manufacturing-journal.net
Š Manufacturing Journal 2008 No part of this publication may be reproduced in any form for any purpose, other than short sections for the purpose of review, without prior consent of the publisher.
2 Manufacturing-Journal
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CONTENTS Food&Beverage Industry: Podravka Galler Rolmlecz OSM Wart-Milk Tenczynek Prymat Fruktus
27 32 35 39 43 47 51
From the cover: Innovative and socially responsible page 14
Drive to success‌ page 20
HVAC&Consumer Goods Industry:
The symbol of luxury and sublime taste page 32
Glenfield Bica Bluebox
55 58 61
Manufacturing-Journal 3
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NEWS Mars to improve its products Mars says it will continue to reformulate its products to remove artificial colours, additives and saturated fats where feasible. The comments come as Mars’ UK-arm launches a new advertising campaign in a bid to promote its work in recent years to change the ingredients used in some of its leading brands such as Maltesers, Snickers and the Mars bar. Artificial additives have received much media attention recently, particularly following the publication of the Southampton Study last year, which linked certain food colourings to hyperactivity in children. These concerns along with wider worries over childhood obesity have led a number of the world’s leading sweet makers including Cadbury and Nestle to review the types of ingredients being used in their products. Mars said that despite its decision to promote the efforts it had already made to cut out additives like the seven mentioned in the Southampton Study, there was work ahead. The six colours linked to hyperactivity by the Southampton study were tartrazine (E102), quinoline yellow (E104), sunset yellow (E110), carmoisine (E122), ponceau 4R (E124) and allura red (E129).
Booming Russian confectionery market Cocoa ingredients suppliers and their customers are seeking to spear fresh wins in Russia’s emerging confectionery market. Two major confectionery players – Barry Callebaut and Ferrero – have this month announced inroads into Russia. Both firms will tap into a surging Russian chocolate confectionery market expected to grow annually, on average, by a considerable 15.3 per cent in value and 5.4 per cent in volume between 2007 and 2012. The Zurich-based Barry Callebaut had unveiled its latest chocolate academy in Chekhov, 60 km south of Moscow. “We are on track to triple our sales in Russia within the next three years,” said Filip De Reymaeker, vice president Eastern Europe at Barry Callebaut. The company’s first chocolate academy in Russia will offer “a diverse range of seminars, demonstrations, theoretical courses and practical workshops” designed “to inspire” a range of chocolate users, including confectioners, bakers and caterers. Growth in the chocolate market in Russia is defined by a shift in consumer preference “towards high-quality premium products”, De Reymaeker said. Mentioned academy can respond to the trend “by helping chefs enhance their chocolate-making skills.” “Russia’s middle class is expanding rapidly – also outside the urban centres of Moscow and St Petersburg. This is leading to a strong increase in the country’s overall chocolate consumption,” De Reymaeker continued. This latest opening brings the firm’s network of academies to twelve. Prior to Russia, in July the company announced a chocolate academy opening in India. Meanwhile, Italian confectionery and chocolate maker Ferrero has announced it is to build a €91 million chocolate factory in Russia. According to local media reports, production is expected to be up and running by the end of 2009. The company says thet Russia is Ferrero’s fastest growing market. “Ferrero is successful in numerous regions all over the world,” said company says. “But building the factory in Russia underscores our commitment to becoming firmly established here in the long term.”
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NEWS Health benefits of sugar-free dark chocolate
The latest research found that consuming both dark chocolate and liquid cocoa can improve the health of blood vessels and reduce blood pressure. However, the American researchers say sugar-free chocolate may offer the best health benefits. Dark chocolate is considered the healthier option because of its high raw cocoa content. First cultivated by ancient Mayan civilisations, raw cocoa is now considered one of the world’s most beneficial super foods due to its high content of antioxidants. The findings come after a team from the Yale University School of Medicine studied 45 overweight but otherwise healthy adults who randomly ate solid dark chocolate, sugar-free cocoa, sugared cocoa and bars containing no cocoa. The researchers found that both the solid dark chocolate and liquid cocoa significantly improved endothelial function, although when people ate the sugar-free products, their improvement was almost three times greater than the regular cocoa. The endothelium is the lining of the blood vessel walls and the loss of proper endothelial function is a contributor to blood vessel disease (atherosclerosis). The researchers also found that blood pressure decreased after people ate the dark chocolate and sugar-free cocoa, but not the sugared cocoa. The study concludes that eating both solid dark chocolate and liquid cocoa can improve blood vessel function and blood pressure in overweight adults, while sugar-free cocoa preparations may have a greater effect. However, it should be noted that this was only a small study and did not include people with diabetes.
Chocolate and wine Market researchers believe that the next trend in the chocolate industry could be the combination of chocolate and wine. Wine bars could do well to offer a choice of finest chocolate to go with wine tasting sessions. In the same way that wine lovers deliberate over different grape varieties, single estate chocolate and chocolate made from different types of cocoa beans provide a real opportunity for the true chocolate connoisseur. The idea of chocolate and wine together was, in fact, recently tested by Swiss-based food manufacturer Barry Callebaut and the potential for a great combination was established, with certain wines matching different types of chocolate in the same way that they match different meal types.
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NEWS Chinese toxic milk scandal China’s tainted milk powder scandal escalated dramatically on Sept.16th, as 22 Chinese dairy companies were found to have produced infant formula containing a chemical blamed for killing four infants, state television reported. The list of companies caught up by the tainted milk scandal includes Yili, one of China’s largest dairy groups and a sponsor of the Beijing Olympics, and Mengniu, another leading dairy producer. The Chinese government has launched an investigation that involves testing baby milk powder throughout the country. The state-run television report said sales of the suspect products had been halted. More than 1,200 infants are thought to have been made ill by infant formula that has been linked to kidney stone problems. “In order to ensure the safety of the milk products, the relevant government departments have pulled them from shelves, sealed them, recalled them and destroyed them,” CCTV said in its broadcast. Previously, reports of tainted milk had focused on Sanlu, the Chinese dairy company that is 43 per cent owned by Fonterra dairy co-operative of New Zealand. The news that many other companies are involved could escalate the crisis at home, where it has led to panic and outrage among parents, and abroad where China’s image could be further damaged. So far there is no evidence that tainted milk products have been exported outside China. Chinese infant formula cannot be imported to the US but the US Food and Drug Administration has said it was investigating whether Chinese milk powder is available in ethnic markets serving Asians in the US. The tainted formula is thought to contain the chemical melamine – which is normally used in plastics, fertilisers and cleaning products – and has been linked to thousands of pet deaths in the US blamed on Chinese pet food exports. Adding melamine to milk is a tactic to mask its dilution with water. To add melamine might increase the apparent protein content of diluted milk
CEZ AS The Czech Republic’s dominant power utility, CEZ AS, which owns the 492 MW coal-fired power plant Skawina in Poland, plans to build two power plants in Poland to meet growing demand for electricity. Petr Ivanek, new CEO of CEZ in Poland, said that the company will decide on the precise location of the new units, one a 400 MW and the other an 800 MW plant, by the middle of next year. There is a possibility that new units will be built in Skawina, but the company is also considering other locations. “For example, we are considering the construction of a new plant where there may be potential for a large presence of wind farms,” Mr Ivanek said. CEZ has yet to decide on the type of units it wants to build but does not rule out a joint project with one of Poland’s coal mining companies to secure coal supplies, Ivanek said. “The Polish coal industry doesn’t have money for investments, so we will offer the coal mining companies at least the possibility of financing investments in new deposits in exchange for guarantees of future supplies,” Ivanek said. CEZ plans to build the two power plants in the next five years. Poland must build new plants or it will suffer a capacity deficit of up to 6% in 2008-2014 as demand for power outgrows supply, according to the local energy regulator.
Italy and Tunisia to build a €2 billion power station Tunisia and Italy signed a deal in June last year to build a 1200 MW combined-cycle gas plant in the eastern Tunisian town of El Haouaria. “We are planning to launch a tender to build a 2 billion euro power plant in September 2008,” Italian Economic Development Minister Claudio Scajola said. “A joint company will be set up at the start of November to carry out studies for the power station’s construction,” he said. Tunisia’s government announced in June 2007 an agreement between Italian grid operator Terna and Tunisian power utility STEG to carry out joint studies for a power plant. It said part of the electricity produced would be exported to Europe from 2015 via under-sea transmission lines over 200 km (124 miles). Scajola said the tender would be finalised before an energy conference in Rome on 10 November. “This accord aims at exchanging power between the two countries and will help to maintain prices at a low level,” he added.
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NEWS Nestle is going after prestige beauty consumers
Consumption of fruit juices and nectars within Eastern Europe rises The Eastern European market for fruit juices and nectars was up by 10 per cent to €6.4bn last year, an upward trajectory expected to continue in the coming years, says a new report. Zenith International, a beverage market analyst, says that consumption volumes in the region for the segment rose 9.5 per cent to 5.6bn litres in 2007, after having nearly doubled over the last five years. According to Zenit, growing consumer interest within the region for products linked to health and wellbeing benefits and more intensive marketing were behind the growth. It is said that a desire for healthier lifestyles is the key factor. Consumers prefers new flavour formulations, premium product offerings and juices enhanced with vitamins and minerals, the beverage market, report says. Zenith, which offer the most reliable market figures and indepth analysis of trends, said that under the current market conditions, it expected consumption of friut juices and nectars within Eastern Europe to rise to 8.5bn litres by 2013, amounting to €10bn in value. The growth was driven in particular by markets such as Russia, Poland and Ukraine, which alone represented 81 per cent of total volume deamnd in the region, according to the analyst. Juices enriched with multivitamin helped push demand across the region holding a market share of over 25 per cent in the region. Chilled juices were another segment found by the analyst to have performed well, particularly in the markets of Poland, Bulgaria and Estonia. Zenith also said that market consolidation from both regional players and multinationals was also a major development in the Eastern Europe in recent years. Over the last twelve months, leading soft drink makers like Pepsi and Coca-Cola and even private investment firms have all moved to take a share of the region’s fruit juice market. Last August, Lion Capital, said it planned to acquire Russia-based juice maker Nidan. In the two months previous to Lion Capital’s move, Coca-Cola Hellenic and PepsiCo had announced similar purchases in Russia and Ukraine respectively.
Nestle has stepped into the beauty food and beverage market with a juice drink destined for cosmetics counters rather than supermarket shelves. Nestle decided that beauty shelves rather than supermarket aisles would be the best location for its new drinkable cosmetic product called Glowelle. The product is the brainchild of Kimberly Cooper. It is formulated with vitamins, phtyo-nutrients, botanical and fruit extracts that are combined to fight the signs of aging from the inside. Nutraceutical is the key, sayd Cooper. Their research showed that US consumers were most attracted to this kind of products because they offer one simple beauty solution and are made with natural ingredients. The company developed two flavours; natural jasmine and natural pomegranate lychee. To make the drinks as convenient as possible for fast moving beauty consumers they are available both as a juice and in powder form. Although Glowelle is consumed as a drink, it falls into the dietary supplement category and is regulated as such because of the high potency of its ingredients.
Global growth potential lies in milk and water drinks Global consumption of bottled water and milk-based drinks continues according to consumer analyst Zenith International. The analyst says that bottled water consumption was up by 6% in 2007 from the previous year to 206bn litres, while consumers drank 13% more milk drinks in 2007, amounting to 242bn litres. If both markets continue to grow under these conditions, by 2012, volumes for bottled water and milk drinks are forecast to rise by 19% and 32% respectively, according to the analyst. Zenith said that while both markets are expected to continue their upward momentum over the next five years, poor seasonal weather and environmental concerns over bottling, and fears over milk supply have created uncertainty for both segments respectively. New reports says that Asian and Australian markets are a key factor in the overall growth of bottled water products during the year, holding a 26.5% share of the total global market for the product. The analysts said that demand was up in all other international markets though, with Africa and Eastern Europe increasing their own market shares by 14 and 10 percentage points respectively. However, the report conceded that the two markets currently hold the smallest market shares for the water consumption. China and the US were the largest overall markets for bottled waters, with Indonesia, Mexico and Italy making up the rest of the top five, the report stated. Manufacturing-Journal 7
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NEWS
Cars and traffic lights to communicate? Yes, Audi new system allows cars and other road vehicles and traffic lights to communicate. According to the company, the communication between cars and ‘intelligent’ traffic lights will be used in order to minimise stop-start driving and cut down on fuel consumption. Audi says
the experimental ‘Travolution’ system improve synchronisation and phasing of traffic light networks to reduce stopping times, and also reduce the number of actual stops needed by creating a communications link between cars and the traffic light network. Communications modules built into each traffic light are able to send messages to cars in the vicinity, alerting them to the time remaining until their next green phase. The car’s onboard system is then able to calculate
the speed which the driver must maintain in order to pass through the light during this green phase, and displays this via the Multi Media Interface display. A network of 46 of the ‘intelligent’ traffic lights has been installed in the centre of Ingolstadt, Germany, optimising their phasing to bring stopping times down to a minimum, reducing fuel consumption and pollution in the process. A further 20 cars and 50 light installations are to be incorporated as the project evolves.
GM goes ahead with restructuring plans General Motors Corp. on Friday, September 19th, said it intends to draw down $3.5 billion of a $4.5 billion secured revolving credit facility for its restructuring in what it called “uncertain times in the capital markets.” The automaker will be using the remainder of the credit facility. The company said it was making the move to have more liquidity while capital markets are under pressure. GM itself reported a 20.3 percent drop in sales from a year ago. In the past three years the company has lost more than $51 billion and has been further hurt by the recent downturn in U.S. auto sales. GM was reacting after a week that brought the sale of Merrill Lynch & Co. to Bank of America Corp., the bankruptcy of Lehman Brothers Holdings Inc., and a government bailout of insurer American International Group Inc. General Motors also said in the news release it had completed a $322 million debt to equity exchange. Moreover, GM announced it is in talks to sell its midsize-truck operations to Isuzu Motors. However, Japan’s truck maker said it had received no such offer. Shares in Isuzu extended gains to end up 11 percent after the report. GM was expected to sell its midsize-truck operations, which constitutes most of its truck business, for several tens of billion of yen and Isuzu has told the U.S. automaker it would consider an offer positively.
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NEWS
Mercedes finally in the hybrid game Daimler’s Mercedes unit is finally poised to get into the hybrid game. In June 2009 the company will begin European sales of a hybrid version of its luxury S-Class that, its engineers say, will use 7.9 liters of gasoline per 100 km (or get 29.8 miles per gallon). Launches in the U.S. and China will follow in September, Mercedes said on Sept. 11. A price for the hybrid land yacht hasn’t been yet established, but Mercedes Sales and Marketing Director Klaus
Maier said the premium will be less than €10,000, or $14,000. The S-Class starts at about $88,000 in the U.S., though the top-of-theline V12 costs a staggering $145,000. It took very long for Mercedes to get into the hybrid market. The reason is that Mercedes, as well as BMW and Volkswagen have concentrated on optimizing diesel engines. BMW’s diesel Mini and 1 Series rival the Prius for gas mileage and carbon dioxide emissions. Daimler says its BlueTec line of diesel SUVs, launched in the U.S. over the summer, account for 20% of Mercedes SUV sales in the country, a substantial percentage considering that diesel passenger cars make up only 4% of the total market. From an engineering point of view, diesel is the better technology because it offers comparable gas mileage to a hybrid - or
even superior mileage in highway driving - with less weight and expense. But the success of Toyota’s luxury Lexus hybrid models showed that gasoline-oriented U.S. buyers want hybrids. Mercedes said: “If you want to save the planet, buy a diesel.” According to the company, the main innovation is the lithium-ion battery. Developed along with German components supplier Continental, the battery weighs less and takes up less space than batteries used by competing hybrids. Slightly larger than a conventional auto battery, it fits under the hood and does not reduce the amount of space in the rest of the car. All told, the hybrid components including an electric motor add a modest 75 kg to the total weight of the car. The battery employs the same chemical principle as those used in laptops and mobile phones, but Mercedes execs insist there is no danger of the overheating that has plagued consumer electronics makers. In the unlikely event that the battery gets too hot the system will shut down automatically. Following the S-Class launch, the company aims to add at least one hybrid model a year. “We have to ensure that people in six years will be able to drive a big car without sacrifices or a bad conscience,” says marketing chief Maier.
International Energy Fairs Fourth International Energy Fair will take place from 26th - 28th November 2008 in Belgrade. The Fair is designed to encompass non-renewable and renewable energy resources, eletric power industry, coal, gas and oil, co-generation and energy efficiency. In addition to the exhibiting part, Belgrade Energy Fair offers an abundant Accompanying Programme featuring prestigious conferences and up-to-date lectures, from determing the development trend, present conditions and the Serbian energy system needs, to the monitoring of the latest technologies and processes. Exhibit range: electric power - hydroelectric and thermoelectric power plants, cogeneration, construction and maintenance of power facilities, transmission and distribution network, electric power system management. Coal - excavation and loading technologies, geological prospecting, refinement and processing, transportation, homogenizing, production process and quality management. Gas and oil - research and production, refinery and petrochemical processing, transportation, storing, distribution and application, industrial facility gasification, household gasification and gas appliances. Renewable energy sources - small hydroelectic power plants, biomass, geothermal energy, solar energy, wind energy and energy efficiency in production, distribution and consumption. Manufacturing-Journal 9
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NEWS Ford, GM, Toyota sales fall Nearly every major automaker saw its U.S sale drop in August. Heavy discounting and promotions have failed to attract buyers. Only Nissan reports positive sales. Ford Motor Co. Said its U.S. sales fell 26.5 percent in August. Toyota’s sales dropped 9.4 percent from August of last year. But Nissan - the only major automaker to show a sales gain in July - reported another improvement, with a 13.6 percent increase in August sales. Meanwhile, General Motors Corp. reported a 20.3 percent drop in sales from a year ago but a 31 percent improvement over its July totals, mainly thanks to offering all buyers employee pricing on many models. Ford sold 155,172 light vehicles last month, down 3.6 percent from 160,990 in July, which was the industry’s worst month for U.S. sales in 16 years. Nissan Motor Co. said its car sales fell 0.8 percent but its truck sales climbed 34.8 percent. Despite Nissan’s gains, the industry’s numbers are an indication that the U.S. auto market was still in a funk in August. “We expect the second half of 2008 will be more challenging than the first half as weak economic conditions and the consumer credit crunch continue,” Jim Farley, Ford’s group vice president for marketing and sales, said in a statement. U.S. sales in July fell to an annual rate of 12.5 million vehicles, far below the August 2007 rate of 16.2 million. Automakers have seen their sales tumble this year as weak consumer confidence, house value declines and high gas prices have steered many buyers away from dealer lots and pushed the ones who remain toward smaller, more fuel-efficient vehicles. At the same time, the tightening of credit markets and higher leasing costs have made it harder for many Americans to get financing.
Porsche plans to take control of Volkswagen Porsche, whose speedy roadsters are synonymous with excitement and luxury, effectively claimed control of Volkswagen, born as the maker of the so-called people’s car and now Europe’s largest automaker. The move by Porsche to increase its stake in VW from 31 percent to just more than 35 percent - a controlling interest under German law - comes amid rising tensions between the two companies. Ferdinand Piech, the chairman of VW, last week skipped a crucial board meet-
ing, giving the upper hand to Volkswagen employees who opposed Porsche’s attempts to integrate the two companies further. This means a war and Ferdinand Dudenhöffer, the director of the Center for Automotive Research in Gelsenkirchen, said “We will see who is the winner.” Porsche first acquired a 20 percent stake three years ago. Since then, Porsche’s hard-charging chief executive, Wendelin Wiedeking, has slowly asserted his smaller company’s control over the Volkswagen. Now, VW’s unions fear Porsche will push through aggressive efficiency moves and reject their demand for a pay raise. Porsche said it intends to raise its stake in Volkswagen to more than 50 percent in the next few months. However, that does not mean it is time to count Piech out. In part, that is because he has an ally in the German state of Lower Saxony, which owns a 20 percent stake in VW. Under a special German law, Lower Saxony has veto power over the fate of the company, which is based in Wolfsburg. European Union regulators have challenged the so-called VW law and the European
Court of Justice ruled in October that it restricted the free flow of capital. The German government is trying to modify the law in a bid to retain its ability to shield the company from hostile takeovers and protect jobs, but Porsche and the EU would rather see it scrapped completely. Dudenhoffer and other auto analysts see a battle shaping up. On one side is Piech, Lower Saxony and VW’s powerful employee unions, who want to preserve as much of VW’s independence as they can. On the other is Wolfgang Porsche and Wiedeking, his chief executive. “Piech wants to do his very best to keep VW independent from Wiedeking, and wants to be the deciding power at VW,” Dudenhoffer said. Porsche produces roughly 100,000 cars a year, while VW sells about six million. And while Porsche has just 11,000 employees, VW’s work force totals more than 300,000. But VW’s huge size gives Porsche more flexibility in production, while collaborating on projects like building a new hybrid engine that could be shared by VW, Audi, and Porsche. Indeed, at a time when American automakers like General Motors and Ford are fighting a wave of losses, Porsche remains one of the most profitable car companies in the world.
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NEWS EuroChem Mineral and Chemical Company – results and investments Established in 2001, EuroChem Mineral and Chemical Company is the major agrochemical Company in Russia, one of top ten global fertilizer producers. EuroChem is comprised of 6 enterprises for raw materials extraction and producing of fertilizers, organics, feed phosphates, as well as transport divisions and a broad marketing network in Russia and abroad. Two weeks ago EuroChem Mineral and Chemical Company, OJSC published the consolidated results on its activity for 1H2008 in line with international financial reporting standards (IFRS). EuroChem augments investments in development and modernization of production. In the first half-year 2008 the volume of such investments has grown in 2 times in comparison with the similar period in 2007 and amounted to RUR 6 106 mln. The proceeds of the company have amounted to RUR 55 836 mln. and increased on 72% against the relevant period over the last year. Besides in the first half-year 2008 net profit of EuroChem has grown in 2,5 times against the similar rate for 1H2007 and accounted to RUR 18 009 mln. In the first half-year 2008 the company has got the license for extraction of potassium-magnesian salts on Palashersky and Belahontsevsky sites of Verhnekamsky deposit of potassium-magnesian salts in the Perm edge in RUR 4 087 mln. cost. With purchase of this deposit EuroChem has confirmed the strategic line of potash direction development in business of mineral fertilizers manufacturing. Last week EuroChem launched a $1.5 billion loan into syndication, according to banking sources. The proceeds will be used for general corporate purposes. ABN Amro (RBS), Bank of Tokyo-Mitsubishi UFJ, Barclays Capital, BNP Paribas, HVB, ING, Orgresbank (Nordea), Société Générale and SMBC are bookrunners and mandated lead arrangers on the facility.
Top 20 global chemical industry players Riding the rollercoaster of soaring energy and commodity prices, global chemical industry players performed remarkably well in 2007. ICIS Chemical Business casts a sharp eye over the financial performance of the leading players in the industry from the broad-based to the focused makers of chemicals, fertilizers and industrial
gases. The ICIS Top Chemical companies includes all chemical firms with annual sales greater than $2.5bn (€1.8bn). A total of 18 financial metrics are collected from the companies themselves, from annual reports and other sources. The analysis looks at the 100 leading companies by sales, but data are also collected for smaller players to facilitate regional analyses. For the major oil and energy producers, the report looks at the chemical operations only. In 2007, the sector benefited from continued strong demand growth, particularly from the fast-developing economies in Asia, most notably China. Chemical demand from Central and Eastern Europe and from Latin America was also robust. The analysis
demonstrates clearly that the world’s major chemical producers continued to grow strongly in 2007. The average increase in sales in the diverse chemical sector was 10.8% in 2007 in local currency terms and 18.1% when converted back to US dollars. ICIS Top 10 are: • 1. BASF • 2. Dow Chemical • 3 ExxonMobil • 4. Shell • 5. LyondellBasell Industries • 6. INEOS • 7. SABIC • 8. Sinopec • 9. Mitsubishi Chemical • 10 DuPont • 11. Total • 12. Bayer • 13. AkzoNobelc • 14. Evonik • 15. Yara International • 16. Sumitomo Chemical • 17. Mitsui Chemicals • 18. Linde • 19. ChemChina • 20. Air Liquide
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COUNTRY PROFILE Luxembourg Full name: Grand Duchy of Luxembourg Population: 467,000 (UN, 2007) Capital: Luxembourg Area: 2,586 sq km (999 sq miles) Major languages: French, German, Luxembourgish Major religion: Christianity Life expectancy: 76 years (men), 82 years (women) (UN) Monetary unit: 1 Euro = 100 cents Main exports: Steel products, chemicals, rubber products GNI per capita: US $65,630 (World Bank, 2006) Internet domain: .lu International dialling code: +352
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he Grand Duchy of Luxembourg - a small country landlocked by Belgium, France and Germany - is a prominent banking centre and tax haven. With roots stretching back to the 10th century, Luxembourg’s history is closely intertwined with that of its more powerful neighbours, especially Germany. Many of its inhabitants are trilingual in French, German and Luxembourgish - a dialect of German.
Overview Despite declaring its neutrality, Luxembourg was occupied by Germany during both World Wars. Attempts to escape German influence initially led to an economic union with Belgium in 1921. After renewed occupation in World War II, Luxembourg abandoned its neutrality and became a front-rank enthusiast for international co-operation. Luxembourg became a founder member of a customs union with Belgium and the Netherlands in 1948, and of the European Economic Community, a forerunner of the European Union, in 1957. Around one-third of Luxembourg’s population are foreigners. Luxembourg’s prosperity was formerly based on steel manufacturing. With the decline of that industry, Luxembourg diversified and is now best known for its status as a tax haven and banking centre. But Luxembourg’s strict laws on banking secrecy mean the system can be exploited for the purposes of tax evasion and fraud. Luxembourg’s politics are characterised by stability and long-serving administrations.
Leaders
Head of state: Grand Duke Henri Prime minister: Jean-Claude Juncker Jean-Claude Juncker, of the conservative Christian Social Party, has been prime minister since 1995 when his predecessor, Jacques Santer, became president of the European Commission. He carries on as premier in coalition with the Socialist Workers Party following general elections in June 2004. For the five years before that his party had formed a coalition government with the Democratic Party. JeanClaude Juncker was born in 1954 and is a lawyer by training.
Media Luxembourg exerts immense media clout and has a long tradition of operating radio and TV services for pan-European audiences, including those in France, Germany and the UK. The Luxembourgbased media group RTL is behind much of this activity. RTL’s radio stations have been a part of the broadcasting landscape in France and Germany for decades. Generations of British listeners grew up with Radio Luxembourg, which beamed pop music programmes into the UK on the legendary “208” wavelength. “The Great 208” is no more, but RTL’s TV and radio stations remain key players in media markets across Europe. Luxembourg’s media empire extends to the skies. The country is home to Europe’s largest satellite operator, Societe Europeenne des Satellites (SES), which operates the Astra satellite fleet. RTL and other privately-owned radio and TV stations broadcast to domestic audiences. The constitution guarantees freedom of speech and of the press. Print media are privately owned and reflect diverse viewpoints.
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ARTICLES
Construction Idustry Z.A. Puławy 14-19 Bogdan Corporation 20-25
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Innovative and socially responsible
T
here are many ways in which Zaklady Azotowe Pulawy S.A. (Nitrogenous Works Pulawy PLC) as well as the scope and scale of its ventures could be presented. The easiest would be to introduce the company from the perspective of the trade that it is active in, as the enterprise, operating in the chemistry sector for over forty years now, is an unquestionable leader of the Polish fertilizers market. What is more, it is a global leader as far as the production of melamine is concerned and, according to recent ratings, one of the Polish twenty biggest exporters – almost half of its production is exported to more then fifty countries of the world, from Peru to Thailand. Last but not least, Zaklady Azotowe Pulawy is a winner of a number of various prizes and awards, an innovative standard setter and a socially involved patron of cultural, ecologic and economic initiatives.
Take-off and development On the 19th of December 1960 a resolution of the Polish Cabinet decided that a chemical works, the Factory of Nitrate Fertilizers, will be placed in Pulawy. The company came to existence on the 1st of May 1961 and the authorities of the factory were established in Budowa. In an extremely short period of 4 months all
t h e instructions for the construction of the plant as well as general plan and preliminary project were prepared and presented to the investor in November 1961. After finalizing all the assent phases, on the 5th of October 1962 the preliminary project was received by the Planning Committee which ordered the first ammonia and urea series and heating production plant sections ready for operation in the fourth quarter of 1965. Technologies used in the plant were based on the most innovative ideas from the best companies in the world and the company could boast production potential of at least European level. In 1970ies, thanks to a series
of very adequate business decisions, the profile of Pulawy was extended – key chemical systems enabled the production of caprolactam and melamine, regarded as one of the most complex technological processes in chemical industry. However, the most dynamic development of the company came in the 1990ies. At that time all the production lines were
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modernized as well as a number of new products was conceptualized and developed. Next to that, some organizational changes were introduced, which allowed the company to appropriately adjust to the demands of the free market reality. On 1st September 1992 Pulawy was transformed from a state owned company into one unit company of the State Treasury and it was named Zaklady Azotowe Pulawy S.A. The ability to quickly and adequately react to the changes of the surrounding and the trade caused that after all the decades of the business activity the company made its way to stock exchange in 2005 and is currently listed on the Warsaw Stock Exchange, generates better and better financial results and goes down as the unchallenged leader of Polish chemistry.
The potential is in people Yet the company does not intend to stop developing. The strategy for the years 2007-2017 assumes a number of objectives and the main goal of them is the increase in the company value. The growth is to be accomplished by increase in the operating scale, gained in turn through domestic and international mergers and acquisitions, further development of the product portfolio and diversification of raw-material supply as well as crucial changes and improvements within the organization in order to optimize the corporate resources. According to the CEO of Zaklady Azotowe Pulawy S.A., Mr. Paweł Jarczewski, the strategic potential of the company lies in its people. The personnel of the company has always been unique and its number has been stable for a few years oscillating around 3300 employees. All of them are people, who are not afraid of implementing necessary changes, professionals, who look after the technical level of the systems, create new marketing models, increase the quality of the products or manage the company from the financial side. What is more, Pulawy is the only company in Poland operating as an integrated production system. “It means in the first line that our systems use one source of media, and energetic effects accomplished at one production line are used by other systems. Secondly, our manufactures can be either the end product or they can be used in further processing” – adds the CEO. This peculiar functioning model has been painstakingly elaborated on and developed for many years and – thanks to the use of the most modern trade standards of the world and its elasticity, gives the possibility to create competitive advantage.
The product range and its image Initially Pulawy concentrated on the production of nitrogen fertilizers for agricultural needs, but as the company developed, the production of other chemicals systematically increased. Currently the sale of chemicals covers 40% of the overall production and grows successively. One of the priority products of the company is melamine, which is used for production of wide range of synthetic resins applicable in the production process of deco laminate, woodenlike boards, glues, paints and varnishes. At present Zaklady Azotowe Pulawy is the only company in Poland and the third worldwide with the production capacity of 92 thousand tones a year. The company supplies 10% of the world demand and 20% of the European demand for the product. Another crucial product for the company is caprolactam used for the production of polyamide polymer. Moreover, the company is the leading Polish producer of nitrogen fertilizers as well as ammonium nitrate and urea. The key products with regard to the revenue are the nitrogen fertilizers, melamine and caprolactam. The intention of the company is that its products are associated with best quality. “Even if we are not the number one on the Polish market with regard to production potential, we gain the advantage over the competitors thanks to quality, which is a key value for our customers” – claims the CEO. To exemplify that is it enough to mention the position of Pulawy’s caprolactam in China, the certificates of Cola-Cola for the company’s carbon dioxide or the top purity of another product of Pulawy, AdBlue.
Export favourable location The location of the company in the Central Europe and in the middle of the east-
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Big Bag packaging (FIBC): - one-time and multiple use - one, two and four hold handle - made from materials allowed for food contact - made from flat fabric, round-woven, coated, adapted for fruit and vegetable storage (valve fabric - breathable mesh material), equipped in polyethylene liner input, sealing seams - with printed inscription - of different construction filling and discharge parts - with stabilizers of forms - permissible in land and sea transportation of danger materials (UN certificates) - assign for packaging and transportation of all loose materials
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Company BIG-POL is private owned firm with 100% Polish capital. We belong to a leading production enterprises of packaging big-bag (FIBC). Main company products is elastic containers big-bag execute In all types and kinds. Individual approach for each project together with our clients and continuous search of new, better solutions in range of packaging which guarantees full satisfaction of our customers. We cooperate with biggest in Poland enterprises of chemical sectors, agricultural and extractive industry. We are for them often main suppliers, elaborate most complicated demand.
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Manufacturing
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16 Manufacturing-Journal
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ern part of Poland has facilitated and reinforced its success. This statement refers to both the demanding markets of the European Union countries as well as to the dynamically developing eastern markets. The export of the company constitutes at the moment around 40% of the sales. The main markets remain the European Union and North America. In case of melamine around 2/3 of our sales is exported and the
has the possibility to negotiate and cooperate with the biggest and the best ones, does not influence the model of its business relations, which have always been based on partnership and mutual trust. Because of that the company makes an even effort when it comes down to meetings with the local farmers or representatives of far-flung world corporations. “In the very running week we hosted some guests from the Japanese Toyota and held meetings with farmers at agricultural fairs” – supplements Mr. Jarczewski.
The recent years and the years to come The most crucial change of Pulawy during the last five years is undoubtedly its appearance on the Warsaw Stock Exchange in 2005. Thanks to the open bid the enterprise managed to gain almost 300 mln PLN for further development. Most of the employees of the company received free shares and became real shareholders of the firm. Judging by an over twofold value increase of the shares, the new chances and challenges are appropriately balanced and taken advantage of. When asked about the crucial changes of the market that the company operates on, the CEO mentions the accession to the European Union in the first line and the improvement as well as a general growth in the meaning of the Polish agriculture. The trade specific transitions regard a clear improvement of its financial situation and the fact that it is currently viewed as one of the most innovative branches of the Polish economy. Yet some new legal challenges have appeared, e.g. REACH as well as the aspects of carbon dioxide’s limits. What is more, on 7th May 2008, Zaklady Chemiczne Police, a second important company of the trade in Poland, and Zaklady Azotowe Pulawy signed a letter of intent on cooperation between the two companies. Pursuant to the letter, both companies intend to adopt joint activities in such areas as product distribution and procurement of feedstock. “It looks as though we have once again set a new business model for our trade. I am sure that it will bring about many benefits and they it will develop” – adds the CEO. top destination is once again the European Union. The same figure concerns caprolactam, however this product’s main purchasers come from the Far East. “Export constitutes more or less a half of our revenues in general. We are one of the most prominent Polish exporters and without doubt the biggest one in the region” – says the CEO. The fact that the company
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Social responsibility and environmental awareness In the Pulawy company lots of focus is also given to the environment protection. The company was awarded “Responsible Care” certificate and the prestigious title of “Patron of Polish Ecology”. The enterprise was one of the first industrial
2008-10-02 12:20:55
ZAKŁAD KONSTRUKCJI I EKSPERTYZ „TECHMARIN” SP. Z O.O., 72-600 ŚWINOUJŚCIE, UL. KARSIBORSKA 4D TEL. (+48) 91 3215694, 91 3224700, 602 199768 www.techmarin.com.pl Our selected technologies - Specialised repairs • • • • •
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workshops in Poland which prepared and implemented a complex environment protection program. In its framework Zaklady Azotowe Pulawy S.A. managed to realize key investments aiming at greater eco-friendliness of the company. The actions helped to significantly decrease the workshops’ influence on the environment despite a more then 75% increase in the global production in comparison to the middle of 1980ies. The firm is active in many areas of pro-ecological ventures, e.g. eco-friendly investments, legal adjustments, monitoring and measurement of the environment, yet it does not underestimate the meaning of social and educational actions as well as many aspects of industrial safety or quality management. Even though the scope of corporate activities spins the whole world, the social initiatives of the company concentrate on its neighbourhood and vicinity in the first line. The company looks for local partners with whom it could realize its cultural, sport, educational or economic actions. Zaklady Azotowe Pulawy S.A. supports for the example International Jazz Seminars, finances the restoration of the monuments of Kazimierz Dolny or sponsors the local Natural Museum. One of the most promising ventures of economic character is undertaken together with the local authorities. In order to secure the position of Zaklady Azotowe Pulawy S.A. in the chemical market, the company took the initiative of creating Pulawy Production Park. The main objective of the project is to seek partners that would join in the common undertakings and development of the local network of entrepreneurs. The best reflection of the meaning of all those ventures is a prestigious award “Pillar of Polish Economy”, which distinguishes the economically and socially most important companies of particular voivodeships. “I am calm as far as the future of the company is concerned. We have conditions and chances which allow us for another important jump in the corporate history” – says the CEO when asked about the readiness of the company to face the new trends on the market. There are many ways in which the incredible success of the company could be described, but this sentence is definitely the best and the most apt one.
zapulawy@azoty.pulawy.pl www.zapulawy.pl tel: +48 815653000
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BOGDAN Corporation Drive to success….
H
istory of development of the enter prises is probably one of the most multi-vector processes which, however, shows an essence of becoming an economic potential of any country. Oleg Svynarchuk, General Director of BOGDAN Corporation, told our reporter, Natalia Tokarska, a story of becoming a leader and surviving the problems on the way to success.
LUTSK AUTOMOBILE PLANT, was built in 1955, for the 50-years history became an example of work and disorder of scheduled system, uncertainty of activity in transitive period and a gradual way to market economy. Excuses of the top management which referred to the same complex situation, did not add special
optimism to anybody. On the one hand there were own problems, on the other - a full divergence of the state also have led to crash of powerful enterprises. LUAZ survived, and not only has survived, but despite of the extremely complex conditions, increased production indexes. Nobody expected it, however the factory’s personnel has shown, that the 50years history it’s not so easy to cross out. Nowadays the company is an example of how to cope with even the hardest crisis and moreover, how to become an unquestionable leader of Ukrainian market.
Automobiles, buses, design, leasing services – whatever you want! As Mr. Svynarchuk says, more than 7000 diligent and devoted employees work together for such a great success of company. And there is what to work for, because TM BOGDAN offers vehicle production, sales and maintenance, which means the following enterprises: OJSC LuAz - passenger car and bus production - OJSC “Cherkassky autobus” – bus production - Bogdan Spetsavtotechnika, Ltd – reequipment and production of special vehicles on the wheelbase of existing models
.
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Complex solutions in energy distribution and automation 0,4/10/110kV SIVACON 8PT Technology up to 7400 A ISO 9001:2000
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Sineps-Invest Sineps-Invest is one of the leading companies in realization of development and complex customized solutions for industry and infrastructure. Our services include design and engineering solutions in power distribution, industrial automation and drives technology. Sineps-Invest is the authorized partner of Siemens AG in Ukraine. We offer up to date solutions on the base of Siemens equipment. There is a manufacturing department in the company responsible for assembling of low-voltage distribution boards up to 7400A according to world known technology SIVACON 8PT.
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.
Ukrainian Automobile Holding, Ltd - VAZ, Hyundai, Kia, Subaru and other passenger cars - Кіа Motors Ukraine, Ltd - Kia vehicles - Hyundai Motors Ukraine, Ltd - Hyundai vehicles - Vantazhni avtomobili, Ltd - Trucks - Ukrainian bus, Ltd - Bogdan buses - Aqua-Motors, Ltd - Yamaha aqua vehicles - OJSC Vynnytsya- Aleko, Ltd – passenger car maintenance - CJSC Lugansk-Aleko - passenger car maintenance
. .
AG Bogdan, Ltd – consulting and information services Subsidiary and haulage company Bogdan – haulage and forwarding services
. .
Bogdan leasing, Ltd – leasing services
PBS-construction-engineering company – design and survey works
According to results of financial and economic activity of 2004 THE LUTSK AVTOMOBILE PLANT has taken the leading position in a rating “TOP-100. The best companies of Ukraine” which is defined by the nation-wide analytical edition “Invest-Gazeta”. The significant progress of the company shown in 2004, has actually started to fastening positions in 2005. On January 18 the Cabinet of Ukraine at last approved the expanded investment program of cars manufacture THE LUTSK AVTOMOBILE PLANT, which provides addition of the nomen
clature of production with cars, and also increase in predicted parameters of manufacture of buses and lorries. It is stipulated, that in case of the investment program implementation which is calculated till 2008, there will be implemented on Lutsk car factory reconstruction re-construction of available capacities and introduction the new ones. In February 2005, BOGDAN Corporation was founded. Open Society THE LUTSK AVTOMOBILE PLANT acted as one of it shareholders. Business-plan of this project stipulates manufacture on car Manufacturing-Journal 23
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mall private enterprise firm ERG has emerged in year 1994. main direction of enterprise activity is Construction civil reconstruction and industrial objects. Within last five years there were: Dwelling houses in Kiev; Network of supermarkets FRESH in Cherkasy; Network of store Eva On whole territory of Ukraine and other socially -cultural objects. Since 2006 enterprise is constant partner of BOGDAN Corporation Within the extension of factory in Cherkasy. Due to cooperation with BOGDAN Corporation small private firm ERG has prospects not only in orders from known and powerful producers, but it can also lead and process own research projects. Enterprise works according to general agreements of taxation revenues, is VAT tax payer. It executes work according to project–cost estimate documentation (AVK – 3); revenue from executed jobs monthly is approximately 1.000.000 hryven.
S
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factory in Lutsk buses BOGDAN of an average and big class. The year 2005 for THE LUTSK AVTOMOBILE PLANT can be named without exaggeration a new stage of development – it was not only the beginning of assembly of new model of family VAZ - VAZ-2110 which for the first time have born for borders of a factory in Toliatti (Russia), but also an assignment of a credit rating “uaBBB-”, and receiving an international certificate of system of quality management ISO 9001 : 2000, which is a guarantee of the highest quality of production manufac-tured by the enterprise as well.
Later on the things got better and better…. For the time being, BOGDAN Corporation is one of the most dynamic companies in Ukrainian automobile market. The passenger vehicles such as VAZ, Hyundai, KIA and buses in all classes (from extra-small to extra-large) as well as trucks are manufactured using the production capacities of the company. Corporation increased production of passenger cars by 31.3% within 2006 in comparison with 2005 – up to 40.3 thousand units (30.69 thousand units had been produced during 2005), also there were produced 30685 VAZ vehicles (that exceeds the similar indices of 2005 by 3.7%), 5229 KIA cars (693 units – during 2005) and 4038 Hyundai cars (408 units correspondingly). The gross income of
the enterprises joined within BOGDAN Corporation structure made 6452169,6 UAH, including the income of THE LUTSK AVTOMOBILE PLANT that was 2451129,0 UAH. The income of the enterprises joined within BOGDAN Corporation made 103341.4 UAH. The enterprises within BOGDAN Corporation paid 140421.95 UAH to various budgets as taxes. The tax on revenues of employees of the company was 13163.33 UAH. The enterprises within BOGDAN Corporation paid 52638.11 UAH to social funds of the company. As Mr. Svynarchuk underlines, BOGDAN Corporation cares much about environment, because everyone keeps in mind how disastrous and terrible effects divergence in this matter can have –21 years after Chernobyl tragedy Ukraine still faces its impacts. Thus, the company does its best to keep its production on highest standards of safety. BOGDAN Corpora
tion has every reason to be proud of its activity – company is a leader of Ukrainian market, cooperates fruitfully with such countries as Russia, Georgia, Azerbaijan, Kazakhstan, Belarus – so future can only turn into the years of unquestionable and outstanding success – a success, which BOGDAN Corporation has driven to on its own four wheels.
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ARTICLES
Food and Beverage Idustry 27-31
Podravka
47-50
Prymat
32-34
Galler
51-53
Fruktus
35-38
Rolmlecz
39-42 OSM Wart-Milk 43-46
Tenczynek
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Podravka The biggest Croatian company in Poland odravka came into being still before the Second World War. Its beginnings were rather austere and did not predict the achievements of nowadays. In the year of 1934 brothers Mateusz and Marian Wolf set up a small fruit processing plant, which later on became the basis of the Podravka company. After the Second World War the plant was nationalized and given its current name. “At the moment Podravka is the most famous Croatian company, known first and foremost for its comestibles production” – says Željko Tonklin, the CEO of Podravka Poland. “Podravka sells its products in 40 countries of the globe and employs around 7400 people. The concern has companies in 14 countries around the world and plants in 3 countries – Croatia, the Czech Republic and since the year of
P
2000 also in Poland” adds the CEO. The product range of the concern is very broad – in Croatia the number of products levels to around 1600. Next to seasonings, the products include meat and fish preserves, prepared dishes, dish accompaniments, baby-food, sweets, tea and drinks. The global symbol of Podravka is a heart, which symbolizes care for the consumers. The world-wide known motto of Podravka runs: “Company with a heart”. The heart motive is associated with Croatia also because of another reasons. A sweet heart made of special, hard pastry (licitarsko srce) is one of the souvernirs often taken by tourists from Croatia back home.
Poland in the strategy of the concern “Poland is strategic market of Podravka in Central Europe” says Željko Tonklin. Because of that reason, in 2001 in Kostrzyn on the Oder, in the area of Kostrzyńsko-Słubicka Special Economic Zone (KSSSE) the Polish plant of the concern was built. The investment absorbed around 16 mln euro and created 100 job positions. “The Polish plant of the concern is the single plant of Podravka on the territory of the European Union, which can boast such a high production potential and capacity. In Kostrzyn we manufacture first of all Vegeta, the most known universal dish seasoning, which we sell in the country as well as export to Romania” – adds the CEO. The target plans of the Manufacturing-Journal 27
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Producer of dried and powdered vegetables
PRODUCER OF FLEXIBLE PACKAGING AND CONVERTER OF ALUMINIUM FOIL AND FLEXIBLE FILMS
Suszarnicza Spółka ,,OGRODNIK” S.A. ul.Kolejowa 27, 64-300 Nowy Tomyśl POLSKA tel./fax 0048 61 44 23415 e-mail: ogrodnik@hot.pl www.ogrodnik.info.pl
Aluflexpack d.o.o. Murvica bb, 23000 Zadar, Croatia Tel: +385 23 205205, Fax: 385 23 205 155 Factory Umag, Ungarija bb 52470 Umag, Croatia Tel: +385 52 703300, Fax: 00385 52 741955 e-mail: afp@afp.hr Web: WWW.afp.hr Poland office –Poznan, Hawelanska 1 tel. +48 61 8551 673
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company presume though that a half of the Polish plant production will serve export purposes to the majority of the European Union countries. Next to Vegeta, the plant of Kostrzyn manufactures as well mono-seasonings and private labels for western retail chains. The concern values the high quality of Polish vegetables and extensively cooperates with domestic suppliers. Podravka purchases from the Polish farmers around 1000 tons of dried vegetables annually, which are afterwards used in the production of Vegeta in all the plants of the company. 70% of vegetables required to the production of Vegeta in the Kostrzyn plant originate straight from the Polish fields.
The leader of the Polish universal seasonings market Podravka boasts in our country the expert position as far as dish seasonings and dish accompaniments are concerned, owing mainly to Vegeta. “As the leader of the Polish universal seasonings market, Podravka has currently (MA’08 MEMRB) a share of around 49% with respect to value and over 39% with respect to quantity” says Michał Jung, the Marketing Manager of Podravka Poland. “The shares were earned thanks to a complementary seasonings offer, which in 2007 was joined by a medium segment brand – Warzywko” – adds Michał Jung.
Half a century on the top
“Vegeta has its place in the first ranks of seasoning brands in Poland” says Željko Tonklin. “It is a nearly 50 years old legend brand, which deserves acknowledgment in the business world, the more so that during all those years Vegeta has been an incessant leader” – adds the CEO. “Ac-
cording to the data of MEMRB ND’2007, at the end of 2007, the Vegeta brand had a 40,1% share in the universal seasonings market with respect to sales value, whereas its share with respect to quantity amounted to 26,7%” – supplements Michał Jung. “What influences those high shares is not only the historical presence of the brand on the Polish market but first of all the trust that the Polish consumers have in the product and almost a 100% presence of the seasoning at large and small groceries as well as hyper- and supermarkets” – complements Michał Jung.
The legend brand When asked about the presence history of Vegeta in Poland, the Croatian employees of Podravka will refer to the words of a folk legend in the first place. Although the legend should not be taken too seriously it is worth quoted. According to the fable, in the 9th century A.D. one of the Slavic tribes set off from the neighbourhood of Cracow to the South of Europe. The tribe settled on the territories of contemporary Croatia, giving rise to the Croatian state. At Podravka, it is frequently jested that after 11 centuries the roots were retraced and, according to the old Slavic custom of bringing the host a gift, the Croats brought the Poles Vegeta. It is however worth reminding that Vegeta was in fact discovered and launched on the market nearly 30 years ago by the Polish consumer himself. At first, it was purchased at Pewex shops or brought in suitcases on the occasion of foreign journeys. Thanks to that, Vegeta is today a synonym of a universal dish seasoning, known and used for almost all culinary purposes by as much as 56% of Poles (research of Pentor, 2006).
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Vegeta is only one Vegeta was invented in the laboratories of Podravka in the late 50ies and its recipe was elaborated in 1958 by an expert-team under the supervision of Professor Zlata Bartl. The brand Vegeta occurred on the market in 1959 and quickly became the flagship of Podravka. The basic composition of Vegeta has remained unchanged up to today. This universal dish seasoning is made of seven kinds of dried vegetables supplemented by indispensable minerals and vitamins. Owing to the latter, Vegeta possesses its yellow colour. The history of Vegeta – from its introduction to the market in 1959 up to the present moment, when it became an essential part of consumers’ dishes in more then 40 countries, is a convincing record of the product’s success. In spite of severe competition and continuous attempts to invent a similar product, its sales and popularity increase. Vegeta is only one. Only it contains a genuine pre-compound, the so called heart of Vegeta, that is a secret-kept mixture of vegetables and spices permanently warranting top quality and fetched
ESSENCE ESSENCE OF TASTE OF TASTE
every single time from native Croatia. In the around the world known blue bag with the picture of a nice chef underlies then the real heart of good cuisine.
New segment of products Podravka does not limit its Polish portfolio to the seasoning product line of the Vegeta brand. The company sells also other kinds of comestibles and the segment viewed by it as prospective and worth engaging in is the tomato preserves. At the end of 2005 the enterprise launched its first “Przecier pomidorowy” (Tomato purée) on this market as well as „Pomidory krojone z bazylią i oregano” (Cut tomatoes with basil and oregano) and „Pomidory krojone z oliwą i czosnkiem” (Cut tomatoes with olive and garlic). The end of the last year witnessed a further extension of the tomato offer of the Podravka brand by next products: “Pomidory krojone” (Cut tomatoes) and “Pomidory krojone z oliwkami” (Cut tomatoes with olives). Yet at the beginning of 2008 the firm made another proposal – „Przecier pomidorowy w opakowaniu 3 x 200 gram” (Tomato purée in a 3 x 200
• • • • •
spices herbs oleoresins essential oils dried and powdered vegetables • natural colours • flavors
gram package). Podravka intends to successively extend its tomato assortment and the next novelties will become known to the public assuredly already in the autumn. In the offer of the brand one can also find aromatic vegetable pastes Ajvar łagodny (Ajvar mild), Ajvar ostry (Ajvar hot), Relish and Pindżur, which refer to the culinary tradition of Croatia as far as their recipes are concerned. All the products of the Podravka brand are distinguished by their naturalness, health attributes, high quality, efficiency and the comfort of use. Both the tomato preserves as well as the vegetable pastes belong to low processed products manufactured from aromatic vegetables ripening in the sun of the South.
Constant development The strategy of Podravka assumes leadership on the comestible market in southern, central and eastern Europe thanks to the production and delivery of high quality products winning the trustworthiness of the consumers and cooperators of the enterprise. One of the development paths of the Croatian concern is acquisition of local brands and their introduction to a broader market of European countries, the example of which is the last year’s acquisition of the Warzywko brand. Podravka is currently negotiating on that topic with a few Polish companies, which represent the widely interpreted comestible products sector. “We are interested in entities boasting brands acknowledged on the Polish market, which could supplement the portfolio of our products” says Željko Tonklin. “We are also thinking about launching on the Polish market the Czech Lagris brand, which offers rice and products made out of leguminous plants” – adds the CEO. Among main partners of company Podravka are Rieber Food Ingredients (Norway), / Vitana (Czech Republic), Aluflexpack (Croatia), Suszarnicza Spółka Ogrodnik (Poland), Essence (Poland). Ties them long-term and fruitful cooperation with Podravka corporation. Taking into consideration the previous activities of the concern, we can be sure that such a strategy will fructify in further development of the company, not only in Poland, but first of all in the entire Europe.
Essence Sp. z o.o., ul.Bielawska 36d/43 05-520 Konstancin-Jeziorna tel/fax: +48 22 736 23 62 gsm: +48 606 318 290 www.essence.info.pl Manufacturing-Journal 31
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Galler
The symbol of luxury and sublime taste T
he founder of the company, Jean Galler, decided to combine his passion for everything dealing with chocolate with the demand for luxury goods. That’s how the story began. The firm has been on the market since 1976. Starting with one boutique on Grand’Place in Brussels, now it offers its products in prestigious locations, such as Harrods in London. The firm also develops the line of distribution of its own. Fabulously delicious chocolates are well known in Central Europe, in America, but also in the Middle East and in Japan. The world of exclusive chocolate bars, tablets and pralines….that’s what Galler may propose…and much more. The con-
cept Jean Galler put forward 30 years ago, and implemented with huge success, was to present his passion – chocolate completely anew, in an unusual way. Visiting any of boutiques of the company is an incredible sensation, for all your senses. One may contemplate the smell and the view of sublime chocolate and cocoa products, anticipating their wonderful taste in a well designed space. At the Espace ChocolatShow one may see some of machines used in the process of making the goods in question, and take a proper leaflet as a souvenir. The Seasonal Display shows many approaches regarding the presentation of goods, from traditional displays to those more extravagant. Galler offers exclusive products, suiting the most de-
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manding taste. Among Pralines one may find those in dark chocolate, white and milk chocolate, as well as a selection of sugar-free ones. As for the taste, there are three distinct lines: Les Florales, Les Marines and Les Volcaniques. The first line was created in cooperation with famous specialist Daniel Ost. This line comprises of flower-scented pralines, delicate as rose, jasmine, violette and oranger, the scent of which they evoke. The collection Les Marines makes one think of the marine element. In the box one will find amazing tastes of sea fern, Guerande salt, and black salt of Hawai, combined with the most creamy chocolate. The selection labeled Les Volcaniques brings the scent of pimento, pepper and smoked tea, the scent
of a volcano. Last but not least, something really special - the line labeled Kaori. It is the first selection of chocolates, the taste of which depends on the taster – one may change the taste of a praline himself. Galler company has been a leader on the market of luxury sweets for thirty years. The strive for creativity helped the company to bring forward another novelty, the Salons Chocolat-Thé. These Salons brought together two luxury items, namely chocolate and wine. Each of multiple combinations is selected with the utmost attention, in order to underline specific tastes of pralines and wine. One will find there many prestigious sets of items, ideal for a classy present. As for gift boxes, one may choose among the following: ”Découverte” <’A Finding’>, “Dégustation” <’A Tasting’>, “Gourmet” <’ A Gourmand’>. There are other options as well. Moreover, when visiting the Salon Chocolat-Thé one may experience the taste of liquid chocolate served with a toast – delicious! There are about thirty Galler boutiques all over the world. As the time went by, company’s boutiques needed some kind of ‘refreshment’, to attract new buyers. The invention of Salons Chocolat-Thé was a good step forward. The new display of products, new approach to arrangement of the space was a great solution for revitalization of company’s elegant shops. Yet, most important thing is that this approach to a client and his expectations, his aesthetic needs, brought about a remarkable success. So far for the local and domestic market. As it was said before, the company is known for the prestige of its products. The Galler company has exported his luxury goods all over the world since 1981. The yearly revenue of the firm amounts at 15 millions (in euro). It shows a steady growth between 10% and 15% per year. According to reliable sources, 30% of production is designated for export. With regards to exportation purposes, products considered the most important are bars with a filling. The most important export partners are France, Japan and countries of the Middle East. As for Japan, the company has several permanent retailer points, working all year around. But the hottest moment for selling chocolates is the Valentine’s Day. To meet the demand on that day, as many as 200 additional stands are opened. The price of chocolate gifts reaches 200$ per kilogram. With regards to the Middle East, the company has seven boutiques located in Dubai, Abu Dhabi, Bahrain, Qatar, Jordan, Lebanon, and Saudi Arabia. These boutiques sell mostly products Manufacturing-Journal 33
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related to Salons Chocolat-Thé, as corresponding to the local culture. Demanding and creative in its approach, the firm was the first to lauch a 70 gram bar with a filling. Still, it is a best selling product. Five years ago the company began to expand its range of franchise. The firm invested also in human resources, providing a system of specialized training for new personnel, designated to work in points in new locations. Galler company began to sell goods related to chocolate indirectly, such as CD’s and DVD’s dealing with the subject. It should be said that Galler is also fully aware of environmental issues. Therefore, the company pays special attention to materials used in the production process. As for some products containers, the firm decided to replace normal plastic with its recyclable version. It is also worth mentioning, that plastic bags are no longer
Book 1.indb 36
in use. Thirty years of passion, dedication creativity and hard work brought a huge success to Jean Galler and to the company he founded. The position of the firm is consolidated by different prizes it has been awarded through the years, such as: the ISO 9001 certificate, “Gourmet Retailer Award” at Fancy Food de New York (consumers award, 2001) or the Golden Medal for Pralines at Food Exhibition in Brussels (1995). The most recent success of the firm is their presence at The International Exhibition in Saragossa, where Galler company is about to present, a brand-new chocolate bar, alongside with a broad selection of its products including hot and cold chocolate, pralines, etc. The best to sum up the history and success of the firm is Jean Galler’s motto: creativity, passion, invention, dedication. All to be found the world of Galler products.
2008-10-02 12:22:40
I
t is not questionable that a typical dairy producer, if at all in the position to, takes advantage of the neighbourhood of its location, both as far as the products and their marketing are concerned. The more greenery surrounds the plant and the better the virtues of the environment, the greater the interest of the customers. Yet, an untypical dairy producer tries to please the customers with a little more than that. The Agricultural Dairy Co-operative ROLMLECZ in Radom could exemplify these attempts as it not only pays lots of attention to the natural habitat that its stock comes from, but also makes every effort to ensure that its quality and methods of processing will also contribute to the taste of the products delivered to the customers. What is more, the company does its best not to allow the taste to sink into oblivion.
Modest beginnings and more than eighty years of growth The Agricultural Dairy Co-operative “ROLMLECZ” was called into being on 26th September 1926 in Wolanów, a spot in the neighbourhood of Radom. The first dairy plant in Radom got off the ground not before 1941 in the old headquarters of a Meat Plant, which was painstakingly renovated and adapted to the processing of milk. What the company had then at its command was a manual centrifuge characterized by capacity of 750 liters of milk per hour, and a wooden churn of 600litre capacity. Regardless of the austere equipment, five thousands liters of milk were processed per day, which satisfied the needs of the inhabitants of the city of Radom and its vicinity. A new chapter in the history of the Co-operative started at the beginning of 1970s when it was decided to move the company to the new constructed buildings in Toruńska Street, which was partially connected with greater processing capacity plans, around 120 thousands liters of milk per day. In fact, the intentions turned out to be underestimated as the demand for dairy products was constantly growing, and a little more than a decade later, at the end of 1980s, the Co-operative would purchase milk from eighteen thousands suppliers and expanded the range of its products. The year of 1990 witnessed the re-naming of the company – on 12th December the Meeting of the Representatives of The Regional Dairy Co-operative decided to name the company The Agricultural Dairy Co-operative and four years later, in 1994, the new trademark ROLMLECZ was approved and accepted. Currently,
DISTINGUISHED AND SUCCESFULL THE AGRICULTURAL DAIRY CO-OPERATIVE ROLMLECZ
the company manufactures its dairy products in three plants in Radom, Zwoleń and Gorzów Wielkopolski, which allows greater processing specialization and rationalization as well as leads to significant efficiency improvement of the whole Co-operative. The Agricultural Dairy Cooperative ROLMLECZ is nowadays the biggest dairy in the region of Radom and one of the most thriving ones in Poland. Reasons for that are verified, but what undoubtedly mattered more than eighty years ago and what still influences the position of any dairy producer is the potential that lies in milk. It is in the stock that the Co-operative perceives its the greatest strategic potential. The company purchases more than 140 mln liters of milk annually and focuses on its high quality. At the present moment, more than 90% of the stock is milk of extra class, which meets the strict requirements of the European Union and serves manufacturing purposes for more than 100 sorts of products.
Next to that, the Co-operative has always looked after its members and what it currently offers to them is a convenient support system in the purchase of cooling equipment. Thanks to this help, almost every milk supplier of the company is now in its possession.
Mission and vision reflected in reality Also the vision and mission of the company have been centralized around the product and the stock quality. The mission is then a constant improvement of the quality of the purchased milk, whereas the vision is production of top quality dairy manufactures, with the use of the most modern production and technological lines. Directed by those rules on everyday basis, the company is also very much concerned about the health of its customers. A part of this concern can be dispelled by the fact that production conditions for the main stock of the company, i.e. milk, Manufacturing-Journal 35
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They include:
are more than perfect – numerous meadows and forests, the pool of the Vistula, Pilica and Radomka Rivers as well as absence of industry harmful to the environment. All that favours not only the cattle breeding, but also the very production of milk, which takes place according to the most recent methods and at the top quality level. Another guarantee of the stock’s high quality is the very method of the high-grade cattle breeding, its nutrition, nurture and sanitary conditions of farming. With reference to those requirements, the farms are incessantly monitored with regard to sanitary and veterinary guidelines. The company is also interested in the high quality of the purchased milk itself and because of that its collection is conducted in a progressive way, which involves the use of special tankers. An-
other indication of the interest is an indepth quality and chemical evaluation of the milk conducted in a new laboratory of the Co-operative, constructed according to all the prerequisites of the European Union. All that is done to fulfill the mission and to meet the requirements of the customers. According to ROLMLECZ, it is exactly the high quality of the products which allows the company to gain new customers as well as keep the present ones. What confirms the high quality of the products is a number of various trade distinctions, awards and prizes. Numerous products of The Agricultural Dairy Co-operative ROLMLECZ have been acknowledged so far. To name a few of them is enough to refer just to the most recent ones as they undoubtedly represent the profile of all the other distinctions.
PBPiRCH CHEMOBUD Spółka z o.o. 24-110 Puławy, ul. Dęblińska 39, Poland, tel./fax (+48) 081 886 87 21, (+48) 081 887 96 33, kom. (+48) 601 440 601 e-mail: chemobud@pulawy.net.pl, e-mail: chemobud@chemobud.com.pl The CHEMOBUD Construction-Production and Chemical-Resistant Works Companyis specialised in execution of industrial floors, mainly all types of jointless floors basedon synthetic resins and floors resistant to chemicals made of ceramic tiles. We carryout works in production facilities in all sectors and in public buildings.Our offer:• jointless floors: epoxide, polyurethane, metacrylic • anti-electrostatic floors • floors and protections resistant to chemicals and anticorrosive • polymer-cement floors • concrete bases and floors with hardened surface • preparation of surface with the use of shotpeening, milling, grinding, and sand blasting technology • sealing, renovation and repair of concrete and ferroconcrete structures, and steel and ferroconcrete tanks • consulting and expert opinions in the above-named scope.
HOTEL SPA RESTAURANT CONFERENCES www.chemobud.pulawy.net.pl
BOHEMA Sp. z o.o. Kazimierz Dolny, Poland
tel. (+48) 081 881 07 56, (+48) 081 882 10 88 www.villabohema.pl
· Polish Food Producer 2008 – Regional Finalist for Czarnoleski Ementaler cheese, · International Trade Fair Polagra Food 2007 – Polish Food Producer 2007 for the product “Grupa serków homogenizowanych” (The group of homogenized cheese), · International Trade Fair Polagra Food 2007 – nomination to Golden Medal for Jogurt pitny truskawkowy 250g (Drinkable Strawberry Yoghurt 250g), · 23rd National Evaluation of Cheese and Milk Market Novelties – 1st Prize Medal for Ser dojrzewający Liliput (Maturing Cheese Liliput) · 16th Milk Trade Fair Mleko Expo 2007 – Award for the distinctive quality of the product Fantazja Wiejska (Village Fantasy) of Owoce Leśne (Forest Fruits) taste and the product Mleko Wiejskie (Village Milk) 2%, 1 liter. However, the greatest distinction of ROLMLECZ is without doubt the fact that one of its products – Serek homogenizowany waniliowy 150g, 200g (Vanilla Homogenized Cheese 150g, 200g), is the Laureate of the 18th edition (of the current year, 2008) of the prestigious Teraz Polska (Now Poland) competition. Interestingly enough, not only the taste and quality virtues of the Co-operative have been recognized. During the International Trade Fair Polagra Food 2007 the company received the award of “Acanthus” for the nicest stand.
Childhood memories in the product range The above mentioned emblem “Teraz Polska” (Now Poland) was given to the flagship product of the company – Serek homogenizowany waniliowy (Vanilla Homogenized Cheese). It is widely known in Poland and its receipt remains unchanged for tens of years. The cheese has not only a unique taste, but is also fully natural, very healthy and stodgy and can be a perfect snack for children and youth as well as adults. In order to satisfy the taste preferences of a wider clientele, the product is available in three taste versions – vanilla, strawberry and natural. Next to the flagship product, the plant in Radom manufactures as well: milk drinks, yoghurts, buttermilk, kefir, cottage cheese, sour and UHT cream, pasteurized milk and butter. The plant in Zwoleń specializes in hard cheese: Ementaler Czarnoleski, Edamski, Gouda, Zamojski, Czarnoleski, whereas the one in Gorzów Wielkopolski produc-
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es powdered milk and hard cheese, e.g.: Salami, Liliput, Tylżycki or Myśliwski, and butter. The sale of all those products takes place through own trade centers located in the whole territory of Poland, among others in Radom, Zwoleń, Kielce, Gniezno, Mielec, Warszawa, Poznań and Gorzów Wielkopolski. Around 30% of the production of ROLMLECZ serves export purposes. From among the countries of the European Union, the sales of the products is directed to, e.g.: the Netherlands and the Czech Republic, Austria, Belgium, Spain, Greece, Slovakia, Latvia and Lithuania, Great Britain and Ireland. The Co-operative is also in possession of extensive export entitlements which allow it to trade with non-European countries. The export includes the following products: powdered milk, whey and buttermilk, cottage cheese, maturing cheese and blocked butter. In the nearest future, ROLMLECZ intends to start a strong expansion to the markets of the Benelux countries as well as Hungary and Pakistan.
Other plans and recent changes
The last five years have been a time of crucial and significant changes on the market of FMCG, which also influenced the ventures of the Co-operative. The introduction of hyper- and supermarkets together with their high activity imposed a change in the sales strategy of ROLMLECZ. Next to the traditional channel, a very intensive development in the modern channel has been observed. Transitions in the sale and distribution methods were followed by deep changes in the attitudes of the customers towards shopping itself. The consumers are more and more aware of what they buy now and they pay more attention to their health. Because of that, ROLMLECZ does not use any artificial ingredients’ substitutes in their products. To keep up with the times, a gradual process of changing the products’ layout has started. Also the very product portfolio has been modified – a part of the products was withdrawn and some new ones were introduced. Next to that, the cooperation with the chains enabled ROLMLECZ to manufacture for them their own-labeled products. During the last five years, the company managed to start cooperation not only with chains of Polish capital (e.g. PSS Społem, Stokrotka, Aldik or Marcpol), but also with the foreign ones, e.g. Makro, Selgros, Kaufland, Netto, Real, Elea, Tesco. In the weeks and months to come ROLMLECZ intends to join powers with the currently biggest dairy company in Poland, MlekManufacturing-Journal 37
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pol in Grajewo. The merger will bring about many advantages for ROLMLECZ, among others: greater milk purchase prizes for suppliers (i.e. members) of the Cooperative, increased investment expenses or improvement in work quality. All that will result in another increase in the productsâ&#x20AC;&#x2122; quality and will allow the company not only to introduce further novelties onto the market but also to continue with the sprucing-up of the packaging. Last but not least, undoubtedly the biggest domestic entity in the dairy trade will arise.
Professional and devoted staff As far as the Human Resource is concerned, ROLMLECZ employs at the moment 652 people in all of its three plants. There are no age preferences when it comes down to employees that the company is most interested in. The most important criterion is to love what one does. However, the enterprise believes in educated and qualified employees characterized by high communication skills and ability to work in team, independent and creative thinkers engaged in their duties as well as willing to constantly develop their potential. More than 80 years of tradition, the top quality of the products, the recognition of clients on the domestic and foreign markets as well as devotion of the personnel and acknowledgment of trade is success that ROLMLECZ can be proud of.
38 Manufacturing-Journal
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OSM Wart-Milk in Sieradz THE CONTENTMENT OF THE CLIENT IS THE OUR SUCCESS
he city of Sieradz, a picturesque recess of the valley of the Warta river is one of the virtues of the Sieradz land. This typically agricultural region creates perfect conditions for the development of ecological processing industry. Another virtue of the region is also its location â&#x20AC;&#x201C; centrally in Poland, at the crossroads of important communication routes. This is where the excellent and ecologically clean stock, which the Regional Dairy Co-operative Wart-Milk uses in its manufacture of milk, cream, butter, cottage cheese and drinks, comes from.
T
The products and their image The range of products offered by the company is extensive enough to meet requirements of a large number of customers. The more so, that the company does not stop to develop, is open to and respects the expectations of its clientele as well as quickly reacts to the changes on the global markets. Yet at this particular moment of the corporate history the most important products are for Wart-Milk the UHT products of MU! brand, first and foremost milk (whole 3,2%; semi-skimmed 2% and skimmed 0,5%), creams (12%, 18%, 30%,
36% of fat), condensed milk and milk-coffee drink Ice Coffee; in capacities from 0,2 litre to 1,0 litre, depending on the range of products. Another important products are the ones of the Paczka od Krowy (A Package from the Cow) brand, which include: semi-skimmed milk (2%), buttermilk in natural and strawberry taste versions, kefir, cream (12% and 18% of fat), cottage cheese and extra butter. The brand Paczka od Krowy is also represented by rennet maturing cheese. All the products of the Regional Dairy Co-operative in Sieradz shall be associated with high quality, Manufacturing-Journal 39
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which begins already at the first negotiations and conversations with the contractors, i.e. long before the very manufacture process starts, and ends not before the products have been safely delivered to the customer. The MU!, ME!, Twisti and Paczka od Krowy brands stand for high quality, health safety and an interesting layout of the packaging. Next to that, they have the biggest share in the production of the company, which combined with the quality and safety focus, allows the firm to view them as its strategic potential.
The corporate beginnings and development
Co-operative would process the stock to the following products: powdered milk, butter as well as direct-for-consumption products. However, the big transition was still to come – the breakthrough was undoubtedly 1995, when a line for UHT products cartoon bottling was installed. The Regional Dairy Co-operative WartMilk in Sieradz started to manufacture branded products – at first Sielska dolina (Idyllic Valley) milk, later on products of MU!, ME!, Twisti and Paczka od Krowy brands. Wart-Milk entered then the Polish market with branded products and actu-
ally thanks to them managed to become recognizable. Another crucial moment in the history of the enterprise is the obtainment of A Category and the possibility of export activities with Russia – Wart-Milk is one of the very few plants authorized to sell its dairy products to this country. “The Regional Dairy Co-operative Wart-Milk in Sieradz is undergoing constant change and development processes as far as technology and technique is concerned” – says Mr. Leszek Grątkowski, the CEO of the company. “Thanks to the knowledge gained during the long time of our activity, we are able to give our products special taste values and exterior” – he supplements. To give an example of the words of the CEO – during the last five years the production of the firm was extended by a new line for rennet maturing cheese (Gouda, Podlaski, Edamski) manufacture, this year in turn is the starting point for cream and kefir in beakers production. What is more, the company will shortly start the usage of a line for pasteurized products like milk, kefir, cream and buttermilk bottling. “We are a significant producer of UHT products and because of that we strive for perfection and develop in this direction as well as extend our markets. We try to meet the requirements of our clients by supplying them with topquality and health-safe products” – continues the CEO. What helps the company in this respect is the already implemented and realized by all the employees Integrated Management System according to PN-EN ISO 9001: 2001 as well as PNEN ISO 22000:2006 Norms. When asked
The Regional Dairy Co-operative WartMilk in Sieradz is known in its region since 1926 due to Wośniczanka Dairy in Woźniki, a town in the nieghbourhood of Sieradz. At the end of 1937 the management of Wośniczanka Dairy decided to change its location for Sieradz, which has since then headquartered the company up to this moment. In 1970 the construction of a new plant in the industrial part of Sieradz, Zatorze, begun and it started its operations two years later, in 1972. The next years witnessed first modernization attempts: in 1976 a new line for uninterrupted butter production was assembled and in 1977 the company started the construction of its own boiler house and powdering plant of F-type. In the 1980ies the 40 Manufacturing-Journal
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about the changes in the market of the company, Mr. Grątkowski does not hesitate – “The main change is undoubtedly the transfer of dairy products trade from smaller shops to supermarket chains. The market has also become unpredictable, the last year has been for example exceptionally favourable for dairying, it is not yet possible to say what will ensue with this one”. What Mr. Grątkowski also perceives, are clear changes in products’ packaging. The market, overfilled with a diversified and extensive product range, forces producers to search for new solutions, which would persuade the customers to purchase their products. What is important, the enterprise is aware of the new events and directions of the market and it tries to appropriately react to them: “We as a Co-operative are not indifferent to the changes of the market and do our best to face the new trends” – claims the CEO.
Reasons behind the success According to the CEO, the success of the company and the trust that its customers have in its products, derive from the many-years’ and conscientious customer service followed by high quality of the dairy products delivered. During all the years of its business activity, the company has excelled in supplying the customers with products of their quality and safety expectations as well as organoleptic and layout requirements. All that causes that the products are easily perceived and recognized as well as willingly purchased by the clientele. The customers do actually show lots of trust in the company, which
is a consequence of pleasant service and partnership-based character of business negotiations as well as on-term deliveries, attractive promotions, participation in domestic trade fairs and meetings and, last but not least, the quality of the products. Maintaining the latter at the top level was in fact chained into separate guidelines, which include thorough control of stock quality, painstaking monitoring of all production processes as well as analyses of end products and regular check of the sanitary-hygienic state of the plant. It is worth mentioning here that laboratory testing
and research is done by highly qualified and experienced crew, which participates in trainings of the dairy and comestible trade on a regular basis. All that reflects itself in greater possibilities and potential that the company gets in return – the ISO Certificate, which it possesses allows the enterprise to deliver good and safe products to its consumers in Poland as well as abroad. “The end products are defined in such a way that we are able to realize one of our major mottos: The contentment of our clients is our success” – comments the CEO. In fact the products of WartMilk do not only content the clientele. A long row of various distinctions, prizes, awards and statuettes suggests that the products’ values are also acknowledged by various juries. Diverse products (e.g. MU! milk, ME! milk extra butter Paczka od Krowy, Twisti flavoured milk, milkcoffee drink Ice Coffee) of the firm have been distinguished for their high quality during numerous trade fairs and exhibitions of the dairy business in Poland.
To take pride in export “We sell our products not only to the European Union member states but also to other destinations out of its borders. We meet export requirements of several countries and the list of foreign consumers is getting longer and longer” – says Mr. Grątkowski. The contracts of WartManufacturing-Journal 41
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Milk are signed both directly with the foreign consumers as well as with sales intermediaries. “A big success for us was surely obtaining the entitlements for export activities with Russia. We have undergone an in-depth control of Russian Inspectors twice and twice with positive result. Additionally, we were given the Hygienic-Sanitary Certificates and Certificates of Conformity to Russian GOST’R Norms for powdered skimmed milk and extra butter produced by us. It is a success of the whole personnel” – he adds. It can be mentioned at this point that WartMilk employees currently 236 people. It is obvious that the certificates, indispensable for export to the Russian market, will contribute to the effective financial results of the Co-operative. It is actually an intention of the company to gain greater awareness and recognition among foreign customers, as the ones on the domestic market are already very much aware not only of Wart-Milk but also of its products. “I would like our extensive and diversified range of products to interest next contractors in Europe and I wish the interest could result in readiness for fruitful and long-term co-operation, which would in turn bring about positive word of mouth” – reveals the CEO. With the top quality and safety products manufactured out of best stock, in line with modern technological processes and by highly qualified management and production personnel, the company can be sure that the interest from abroad is not far.
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Fruit and Vegetable Processing Plant magine that you are a comestible trade producer. Imagine now that you are a comestible trade producer and that your plant is located in on the most beautiful and charming regions of Poland. To make it even more fairy-tale like, imagine at last that the region is one of the most populated ones in Poland and that the brands produced by you are very well recognized within the population. Would you then decide to be in? For this is the decision that Gardenau PLC undertook – at the beginning of the year 2008 the enterprise decided to take over the coming to a grief fruit and vegetable processing plant of Tenczynek. Since the changes deriving from the decision to take over the company and restart it, are still in progress, it is not yet possible to judge whether the undertakings turned out to be the most correct ones. Still though, with the incredibly rich
I
marketing support the company may get from its long history and overwhelming surroundings, it may be anticipated that the undertakings will more then excel.
History of more then 300 years According to oral transmissions, the beginning of the fruit and vegetable processing plant in Tenczynek dates back to the times of Queen Jadwiga’s reign. The annals of a canon Witold Smoczyński describe the plant as a “brewery”, which at the time of year 1700 had been operating for a number of generations already. The majority of the over 300 years of corporate history has been marked by high product quality recognized during various trade fairs and meetings. During the times of the AustroHungarian empire and the reign of FranzJoseph, the company received 12 of such distinctions and medals, one of them in Manufacturing-Journal 43
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London in 1862. The harsh times came with the beginning of the new millennium. In 2000 the company changed its proprietary structure – the employees of the enterprise became its major owners and soon after sold their rights to a single person, who owned and managed the company up to the last year of 2007. The strategy practiced in the years 2000-2006, based on basically no marketing goals and priorities led to the plant’s liquidation. This is the moment when the Gardenau PLC enters the chronicle of the enterprise and meets the decision to reorganize first and foremost the marketing plan. It is then the marketing and quality, in which the company perceives its greatest competitive advantage and a chance to revitalize.
The marketing plan The main idea behind the new marketing strategy of the company is to extract from the centuries of corporate history and the breathtaking characteristics of the location. As mentioned at the beginning, the company is situated close to the territory of the Kraków-Częstochowa Jura (Jura Krakowsko-Częstochowska), a frequent holiday and pastime spot visited by craving attractions foreign and homeland tourists. The latter is in fact included in the action plan for the future – the company wants to follow the example of French wineries and open its premises to visitors. They could then not only get a glimpse of the production process of some of the products (first of all the “Toporczyk” mead) but also discover its storage secrets and conditions. The other revolutionary undertakings include very profound marketing research conducted in 2007. Ten-
czynek gets then a new trademark and elaborates on standard labels and packagings. All that is done in order to re-create the perception of the consumers and to find a new place for the company’s products, the priority being the middle-upper shelf. The development of the distribution channels is also of importance at Tenczynek of today. The preceding owner cooperated with low-cost recipients in the first line, which damaged the high quality image Tenczynek could boast of before. The products manufactured at that time aimed first and foremost at the cost-cutting strategy without any special attention given to the taste or quality values. The restoration of the prior image and regaining the trustworthiness of the consumers are then among the top goals for the forthcoming months and years. As far as the contracting parties are concerned, the priority are retail customers and the focus is put on local warehouses, aware of the Tenczynek brand. The more so that the company is located in the South of Poland and neighbours with the densely populated regions of Małopolska and Silesia. The goal are also the so called modern distribution channels. The company intends to start cooperation with large chains, attracting greatest numbers of consumers with clear expectations towards the products purchased. It can be mentioned that the future development of the distribution channel will probably result in the employment increase – the current number of 68 full time employees may turn out to be to small for the demands coming from new agreements. As the CEO of the company, Mrs. Ewa Kawałkowska, says the plant is unique with regard to the marketing pos-
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sibilities: “Each of our element could possibly be chained into a value carrier for the consumers. For we are a company open to the consumers and their needs”. It must be though added here that the consumer Tenczynek is most interested in, is a conscious and demanding buyer, who expects from the purchased product not only high quality but also a reasonable price.
The products and the production Obviously, marketing can do miracles, still though it can not make the product. The range of Tenczynek’s products includes vegetable and fruit preserves, juices and syrups as well as mead “Toporczyk” and wine “Grzaniec Tenczyński”. In concern for the customers, the company devised a line of highly sweetened juices with herbal supplements – e.g. lemon balm, linden as well as blackcurrant juice, which is currently a leading product of the company. Additionally, manufactured at Tenczynek are also highly sweetened syrups of raspberry, cherry, black- and redcurrant, strawberry and citrus-fruits taste. The plant offers moreover delicious salads, among them white and red cabbage, red beet, horseradish and, last but not least, diverse vegetable blends. The most popular from the last group is undoubtedly the “Nadwiślańska” salad, which gives the company three times more sales then any other product. It must be emphasized that all the products are derived from best quality vegetables and fruits purchased from local farmers. The production process is neither automation nor mass oriented. The materials used for production are not only hand-sorted
but also hand-peeled, no artificial supplements are added within the whole production course and all additives are of Polish origin. Finally, some of the products are refined by means of other products (e.g. salad pickle with juices or squash). What is more, the recipes used in the manufacturing process come from the archives of the company and were additionally improved during the moment of the ownership changes. The device of the company is then as follows: not scale, but the quality and naturalness matter. And on this exactly motto, the company wants to continue with the construction of its success. As Mrs. Kawałkowska says the changes that the new owner introduced are versatile but most important is nevertheless giving the quality of the product a central position: “We have changed the attitude towards the product, developed the recipes, gave up the use of refiners, dyes, preservatives. All that in order to change the perception of the product we deliver. In the end, we want to give our consumers a healthy, natural and tasty product.” When asked about the strategic potential of the company, Mrs. Kawałkowska does not then have any doubts: “It is the product and its characteristic”. She admits as well that the tradition and the unique history of the company may also be of advantage. “The extensive recipe base could play a role too. Our tradition, the history, the name and the possessed recipes are our main reasons for pride” – adds the CEO.
The export market The company is rather moderate when it comes down to its export activities in the nearest future. The reason behind Manufacturing-Journal 45
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that is first and foremost the bad experience gained during the last years of the previous ownership (2000-2006). The product delivered at that time was to serve the purposes of the low-cost chains overseas. Around 80% of the production was exported and the main destinations were: USA, Canada, Australia and the European Union countries. The cooperation resulted in nothing more then a significant deterioration of the product itself and the perception of the customers in the home market. Next to that, it brought the company to financial problems – the decreasing value of US dollar reflected itself in the worsening results of Tenczynek. Because of that, the company does not intend to take advantage of the existing foreign accounts base. It could be actually said that the cooperation came to an absolute halt, due to the goal and strategy redefinition mainly. However, the CEO claims that the company would not resign from a potentially fruitful export possibility, yet without the sacrifice in the form of another quality deterioration. The plans for the future include as well participation in trade fairs abroad, so that the product could become known to the public outside of Poland. Definitely, what the company could use to build up its foreign position, is the fact that the majority of the fruits and vegetables used in the production come from local farms of the Małopolska and Podhale regions. The peculiarity of those farms lies in their size – they are most frequently very small, which guarantees the naturalness of their products. Tenczynek plans then to present its local suppliers the ecological cultivation methods and
trends. It will allow the farmers to apply for internationally recognized ecological certificates, which will automatically open the same doors to the enterprise itself.
The new reality The company will then do its best to continue its endeavours for the naturalness, healthiness and top quality of its products. The more so that it perceives the trends, which all the global as well as the local market players will eventually have to adhere to. These include first of all the growth of customers’ awareness and their attention to health, fine fettle and general life quality. This social change is followed by the increase of diverse publications, which touch upon those topics and the popularity of ecological food suppliers and shops. The fact that the company produces natural, healthy and best quality products may then bring about another fat years in its long history.
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PRYMAT
A primacy story
he history of Prymat is undoubtedly a fairytale story. Away from business and marketing bustle, a brand, which managed to dethrone the world leaders, was created. Today the brands of Prymat are not only strong and thriving but also successfully present on the market, just beside brands of huge concerns of global scope and colossal marketing budgets. The success of the company shall not be underestimated.
T
A little bit of history Prymat started out in the 80s as a family-run company in Jastrzebie-Zdroj, a small town near the border with the Czech Republic, known for its closeness to the Beskidy Mountains and beautiful
Book 1.indb 49
mountain-like surroundings. The company commenced its adventure in the food industry with home-made production of spices and various meal addictions, including jellys, puddings and powdered ice-cream. All of the products, thanks to their high taste and quality values, managed to win over the local consumers quickly. The entrepreneurs, encouraged by and content with the first successes, decided to focus on a single line of company specialization â&#x20AC;&#x201C; production and confectioning of spices and herbs. Thanks to the specialization and further developments on the local market of Silesia, Prymat was becoming a more and more thriving enterprise, which in the end permanently settled down among the first tier of com-
2008-10-02 12:23:49
panies of the FMCG trade in Poland. The company was developing internally for a few years until 1995, which witnessed introduction of KUCHAREK, a brand of universal seasoning. This is the breakthrough point that changed the history of Prymat forever. The release of KUCHAREK was backed up with strong and innovative sales and marketing strategies. The accurately devised measures helped the company win the local market and branch out into neighbouring regions. Another important year in the corporate history is 2007. The company decided to take over Pekny-Unimex, a leading Czech producer of spices, which would enable it to become an important player in this part of Europe. Although it has been only six months after the merger, the Prymat Group is enjoying successes of mutual business operations. “At the present time, the Prymat Group is then one of the most important Polish companies in the food industry. Apart from the specialization in spices and herbs, the company is present in broth cubes, liquid spices, soups in powder and meat sauces. The company gives work to about 500 people in a few countries. Annual turnover exceeds 200 million zloty (approximately 90 million dollars)” – says Mr. Przemysław Pająk, the PR Manager of Prymat. Even though so large and numerous, Prymat is constantly one family, as exactly the family values, first and foremost unbounded trust in people, constitute the inner strength of the organization.
Quality and customers matter Next to the family values, Prymat draws lots of its attention to the quality of offered products. All the spices manufactured by the company are made up of top quality stock, which undergoes a very rigorous selection process. Next to that, the Quality Control Department of the enterprise monitors the manufacture process and thoroughly examines all the products, which leave its premises. The company operates according to International Food Standard, confirmation of what is the IFS certificate, whereas its plant functions in the framework of integrated management system and possesses ISO 9001, ISO 14001 and HACCP certificates. Furthermore, what sets Prymat apart from its competitors is also a strategic vision of offered products. The products of the company, widely known for the highest quality possible, are available for affordable, everyday prices. The clients in Poland know that the choice KUCHAREK or Prymat entails purchase of a certain product for competitive prices. This strategy is also implemented and transferred into other segments of company operations. The consumers can then perceive and in fact value Prymat as a seasoning expert. According to the company, it is not just enough to bring down exotic spices to the local market. The clients must be also instructed on and consulted with respect
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to the use of the spices, so that the meals they prepare have the most attractive taste. This peculiar consultancy is offered by Prymat, which gradually makes it to an unique specialist in the area of grill, Easter, Christmas or Sunday dishes and meals.
The mission and publicity “The mission of our company is to become the most desirable company in the eyes of our consumers, in the eyes of our business partners and in the eyes of our employees” – says Mr. Pająk. “Everyday implementation of the mission is of key importance to us”, he adds. Successful implementation of the mission’s premises is actually reflected in the recognition that Prymat receives in the form of diverse awards and prizes. KUCHAREK, for example, is not only a market leader in Poland, but also a widely known brand awarded with many honourable distinctions. In 2000, KUCHAREK received the European Medal, whereas in 2006 both universal seasoning and broth cubes won consumer tests of “Swiat Konsumenta”, a trade monthly specializing in analysis and comparison of various market products. KUCHAREK was acknowledged once again in 2006 and awarded with the Golden Laurel Award, a prestigious prize for leading FMCG products. Last but not least, in the same year the brand received FMCG Oscar, an award given out by “Wiadomosci Handlowe”,
a leading magazine of the FMCG sector. The value of the brand was also duly appreciated in the Top Strong 100 Brands in Poland in 2005, a ranking organized by „Rzeczpospolita”. KUCHAREK came a very high, 40th position, whereas in the ranking of alimentary products, the brand came 18th. Next to KUCHAREK, the Prymat brand has also been gaining more and more publicity and attention. In 2007, the brand was awarded with the Golden Laurel award.
The products and brands
Since the first introduction of Prymat’s products to the Polish market, the company managed to become a strong and recognizable brand, well known for the originality and intensity of its spices. A significant increase in consumers’ awareness as well as considerable improvement of the households’ economic situation favour more extensive use of spices in homemade meals. No longer then a few years ago, the spices most commonly used by Polish cooks would limit themselves to pepper, salt, bay leaf or pimento. Today, also thanks to Prymat, the culinary preferences of Poles are much broader and it reflects itself in the portfolio of the firm. Currently Prymat manages three brands in Poland. Obviously, KUCHAREK is Prymat’s flagship brand, recognized by 98% of Polish consumers . KUCHAREK is then a brand of the most popular universal seasoning in the country and simultaneously a qualitative market leader in Poland, beating the famous Vegeta brand. The brand is also present in the segments of broth cubes, liquid spices, soups in powder and meat sauces. Another brand managed by the enterprise is the Prymat brand that includes not only single spices like pepper, paprika, marjoram or cinnamon, but also mixed spices, among them chicken spice, available in three taste ver sions, grill or bigos (sauerkraut stew) spice as well as herbs and other meal addictives. The Prymat brand is at the moment the most dynamically developing brand of spices in Poland, holding a strong position of a market challenger and enjoying over 18% market share, both in Manufacturing-Journal 49
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quantitative and qualitative dimension. There is also a third brand – Asta, an economic brand of spices, broth cubes and meal addictives. The brand is then a full offer for the lovers of tasty, home cuisine warranting the gourmets top quality products for one of the lowest prices on the domestic market. Two of the above mentioned brands, Prymat and KUCHAREK, are global, i.e. available on a nationwide basis. KUCHAREK can also be purchased in many other regions of the world including the Baltic countries, Ukraine, Russia, Belarus, the Czech Republic Slovakia, but also the USA and Australia. It is worth mentioning here that the takeover of the Czech company Pekny-Unimex in 2007 resulted in extension of the brands managed by Prymat. Pekny-Unimex is an owner of three brands of spices, spice mixes, marinades, liquid relishes, tea and confectionary – Nadir, Vitka and Avokado. The latter is a global, renowned and leading Czech brand of spices.
The changes of the market and the company “The market of spices in Poland is a big market worth PLN 630 million and an important segment of the FMCG sector. The market is defined as universal seasoning, single spices and mixes spices. It develops dynamically and is characterised by a stable growth tendency – in 2007, it grew 6% in quantitative terms and 8.5% in qualitative dimension” – Mr. Pająk claims. Still though, the Polish market of spices is quite challenging. The growth in the consumer awareness and expectations causes that the clientele is more and more demanding and constantly asks for greater diversity of products, available in more packaging options. In order to satisfy these needs, the most important market players are forced to develop their product portfolio not only by continuous introduction of novelties but also by following the latest trends as far as packaging design is concerned. “Poland is a natural market for universal seasoning used to enrich the taste of soups, meat dishes, fish and salads. This segment slowly consolidates itself around the strongest brands that dominate the market. Prymat is an undisputed quantitative market leader in the universal seasoning market. KUCHAREK currently supplies 30,0% of the market. Quantitatively, the brand’s market share went up
2.2 percentage points in 2007” – says the PR manager. Yet, the interest of the Polish customers in new culinary experiences causes that the segment of single and mixed spices is characterised by higher growth dynamics than the segment of universal seasonings. “The segment rose 6% quantitatively in 2007 and 7.3% qualitatively” – he supplements. In order to face the transitions of the market and customer orientations, in 2006 the major brands of the company - KUCHAREK and Prymat were subject to thorough changes of marketing strategies, among them a complete redesign of graphic layout of pouches. A lot of efforts and investments was also put in the improvement of production, logistics and sales mechanism. It was still worth it: “Today we can boast with one
of the most up-do-date and efficient production sites in Poland. We produce the biggest number of spices measured in kilograms in Poland. No-one produces and sells more” – says Mr. Pająk. It can be then just anticipated that the following years will also be defined by success.
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Fruktus Recipes from our home t has long been known that what tastes best has its origin in the cuisine and kitchen of our homes and the recipes of our grannies and mothers. It cannot be doubted that our culinary preferences of today are a derivative of what we were served for dinner or supper during our childhood years and the taste of homemade dishes, preserves or cakes is a determinant of what good food means for us now. Fruktus, a production, trade and service company, seems to be aware of that and has managed to build its strength and position first and foremost thanks to its traditional recipe base. All of the recipes in the corporate archives have a home cuisine background and have been served to the owners of the enterprise as well as checked by them for several years and on diversified occasions. Well, one must admit, it turned out to be a good choice.
I
Family-run company The Fruktus company, which commenced its activity in 1988 is a family-run enterprise, established by two brothers, Stanisław and Zbigniew Kowalczyk. The company is located in Wąsosz Dolny, 30 km north of Częstochowa and during its twenty years of activity managed to win over not only customers on the domestic market in Poland but also a number of
foreign contractors in diverse parts of the world. As far as corporate history is concerned, the most crucial event witnessed June 2007 when the managing board of the enterprise changed. One of the original founders of Fruktus, Zbigniew Kowalczyk, decided to leave the management and the new owners of the company, next to Stanisław Kowalczyk, became his children, Katarzyna and Paweł Kowalczyk. The transition behind the steers has become visible in the activities, strategy and operations of the firm as well. The previous recipes were refined and improved, new production solu-
tions were introduced, last but not least, the Human Resources strategy was reconceptualized. What is more, the company decided to focus its efforts on increasing the production capacity. A large investment was then construction of a new production workshop, where mayonnaise and cucumber preserves are going to be manufactured. The workshop is soon to start working as it is already equipped with machine park and necessary tools. The new plant is then basically waiting for the stock. Because of the increased production caused by the new hall, the company will have to enlarge its sewage works in the nearest future. When asked about the reasons behind the success and achievements that Fruktus has on its account, one of the owners, Katarzyna Kowalczyk, mentions the family character of the enterprise, which entailed great involvement of its owners and their families. “All of our next-of-kin demonstrated multitude of engagement and lots of hard work both at the beginning of our presence on the market as well as in the following years. It was definitely a development engine for the company. We all seemed to care as the company was ours, it belonged to us. Moreover our workplace was also our home” – says Mrs. Kowalczyk. Manufacturing-Journal 51
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Distinctions and prizes
Recipes from our home The product range of the company is rather extensive and includes: horseradish, mayonnaise, ketchup, mustard, vegetable and fruit preserves, concentrates, purée, seasonings as well as oil and oil of olives. The flagship product of the company is without doubt mayonnaise (30% of production), especially the delicious Majonez rzymski (Roman mayonnaise). As far as quantity is concerned, the second position goes to pickled cucumbers (20%), which together with sour cucumbers constitute the majority of the export-oriented products of Fruktus. It is also worth mentioning that it is exactly the mayonnaise and cucumbers products which will be manufactured and processed in the newly constructed production hall. Interesting enough, the company used to have quaileggs products in its offer. Both of the manufactures – mayonnaise of quail-eggs as well as pickled quail-eggs – tasted perfectly, yet the products were quite demanding and the company decided to give up their production. However, the experiment with quail-eggs shows the Fruktus’ attitude towards product innovation. The company tries to launch a new product more or less once a year and a most recent one is beetroot juice. Important source of product creativity and innovation are the nearest and dearest of the owners: “Our numerous family turned out to be indispensable with regard to product sampling as well as verified and palatable ingredient proportion and composition. Because of that all our products are manufactured according to our own taste preferences and recipes maintained in our family for generations. Obviously, the recipes were adjusted to the demand of large-scale production, but the base remains in our own,
home cookbooks” – says the owner. Another thing which played a colossal role in gaining the trustworthiness of the clientele is also the top quality of the products delivered. The company does it best in order to diminish the use of preservatives in the production process to the minimum. The quality is also increased through implementation of improved technological processes and new solutions in other areas of the production. All that to guarantee a greater naturalness and quality of the Fruktus label. “We actually want our products to be associated with good, reliable and tasty products, which can content our clients, no matter where and when they buy them” – supplements Mrs. Kowalczyk.
The quick and deserved acknowledgment of the clients was also followed by a number of trade distinctions, which Fruktus has been honoured with. One of them is, for example, the title of “The Best Exporter of the Częstochowa Province” given to the company in 1997 for a high dynamics and increase in exports. However, the most important prize is definitely presence on the prestigious list of Gazele Biznesu (Gazelles of Business), which enumerates middle-sized Polish companies characterized by very dynamic development indicators and capability to compete with the most major market players. Moreover, the enlisted companies can boast irreproachable reputation and honesty towards contractors, employees and the Treasury. The Fruktus company was present on the list in 2002, 2004 and 2007 and the awards can now be seen in a special showcase in the office of the company. Next to promotion gained through distinctions and awards, the company tries to differentiate itself from the competitors by means of trade fairs participation. Until 2003 it participated in the Polagra trade fair in Poland, but it gave it up because of the peculiarity of the visiting purchasers. In the first line come now smaller promotional activities of regional scope – promotions of smaller warehouses, regional trade fairs, promotional bulletins, etc.
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Twenty years together According to the interviewed owner of Fruktus, the potential of the company is in its people. “Some of our employees have worked with us since the grounding of the company, i.e. for twenty years now. We do appreciate their commitment, as they have helped us to be where we are now. During a fete organized for all our employees on the occasion of the 20th anniversary of our operations, which took place in May, the most meritorious ones were honoured with various prizes as well as diplomas” – relates Mrs. Kowalczyk. The company is currently an employer for around 220 full time workers, during the time of high season the employment oscillates around 400-450 people. The majority of the personnel are manual workers, yet the company employs technologists and administrative staff as well. Every of the employed workers, both on long-term as well as seasonal contracts, can commute to the premises of the company with a free, corporate bus. The same long-term and equal attitude describes the relations with the customers. All of the customers, no matter what size or location, are evenly important for Fruktus. The company wants then to satisfy the needs and requirements of all of them, as it believes that every purchase can bring about a positive word-of-mouth and result in additional interest in the product offer. However, Mrs. Kowalczyk perceives some changes in the customers themselves. She believes in significant reorientation of the clients towards shopping in supermarket
chains. It, in turn, caused that the chains have elaborated their own rules and principles, perceivable in every-day cooperation with them. “The clients have changed too. Their requirements are higher, their purchase alternatives are more extensive. They will choose the product, which satisfies them most in every respect, also the price” – she claims. The owner adds as well: “The media speak nowadays more and more about the quality and naturalness of the food. It is also a relative novelty”. In fact, the quality of the Fruktus’ products cannot be criticized by its customers. Each of them has a right to check it on a regular basis and takes advantage of this privilege every so often. On the other hand, one of the consumers painstakingly
checks the quality of Fruktus’ products every two months and has not complained so far. This suggests that the company perfectly meets the top quality expectations.
The direction of the exports
Exports has a significant share in the sales of the company and it amounts to around 20% of sales. The products of the enterprise reach final destinations in Germany, Estonia, Latvia, Kaliningrad. Next to that, the company seems to trace the intensified flows of Polish emigration – the increased presence of Poles in the United Kingdom caused the company to export there as well. Other destinations include among others USA, Portugal, France, and Italy. Yet, those countries are not the top export contractors of Fruktus. The twenty years of fruitful operations, the trustworthiness of the clientele and the loyalty of the employees suggest that the company model and development strategy chosen by Fruktus turned out to be the correct ones. The company is not only well recognized on the market but its products still stand for high quality and home-like taste. No wonder – each of us wants to be sure that what we and our family eat has a peculiar and unique flavour. Fruktus understood it very well.
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ARTICLES
HVAC&Consumer Goods Industry: 55-57 Glenfield 58-60
Bica
61-64
Bluebox
54 Manufacturing-Journal
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W
hen it comes to clothes there is usually spoilt for choice, but a safe and classy option is Glenfield s.r.l. the tough trend master that knits together sobriety and quality. The BRAND was established during the early nineties and THE FIRM became a private company limited by shares (Ltd.) during 2005, followed by the buyout of “Biellese Krp” in 2007. Clau dio Corciulo has interviewed the director of Glenfield s.r.l. for our magazine. Glen field got its feet wet during the nineties as a brand of the knitwear factory “Magreb”; it comes up first as a reality born in the in dustrial heartland of Treviso, in the north of Italy. After a multi-year experience in the knitwear sector, framed by a constant development, the 2005 made of Glenfield a completely autonomous firm. The firm is exclusively committed to the concep tion and commercialization of the items of clothing, whereas the manufacture was devolved entirely outside. In October 2007, the society “Krp” based in Biella takes control of the brand. A very remarkable hobby-horse of the company is still now the retail-net. Nowadays Glenfield is an independent society fully monitored and managed by K.R.P. and it is the first knit-wear Italian chain in franchising with 281 retail points around the world, torn between shops, corners and outlets. They are located in Italy ( 188 dealers, out of which 127 one-brand shops and 61 corners), Europe (29 dealers whereof 28 shops and 1 corner), China ( 15 shops), Russia (42 retailers) and the net includes 6 outlets in Italy and one in Austria. Through the years Glenfield collected numerous successes. The formula adopted by this company replaces the traditional franchising with a partnership which allows a more efficient collaboration between the firm and all the partners. In this way Glenfield guarantees a support in the arrangement and orders of the shops. <<It is not easy to perceive the customer’s taste especially at the beginning of a business. We offer our professionalism to make sure that the shopkeeper can choose the most wanted items out of our latest collection>> says the President Stefano Verzoletto to our reporter Claudio Corciulo. A great assistance is given by the company also in the delivery times. The data transmission connections between the retailers allows Glenfield to monitor and manage the sales and the unsold items, and gives the chance to the firm to inform the shops when they are about to run out of something suggesting them a corrective. Thanks to 6 Glenfield-owned outlet shop Manufacturing-Journal 55
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the retailers have the chance to sell off the left-overs at a bargain price. Glenfield brags a vast tradition and specialization in the manufacture and conception of superior knitwear. The design phase is entirely managed by Glenfield through a devoted team, whereas the manufacture is committed to outsiders making use of qualified suppliers, mostly Italian.
Amazing looks...
Glenfield’s outfit is distinguished from the other brands thank to a sober and refined style, declined either in classical and mod ern version, conceived for those who are really into fashion. The inner team selects the colours and designs the patterns of the tricot garments. The adopted method of externalizing the production provides a higher flexibility in the stock manage ment and in the ability at dealing with the consumption-cycle. The Glenfield brand registered during 2007 a 30-million-euro income and the whole retail net reached 60 million Euros. We need to remember once more that the manufacture is not directly committed to Glenfield but the latter relies on external contractors. Due to this reason, the company’s investments in innovation and technology only pertain to the planning and ideation phases, and the business management, including lo gistic and shipping. The whole realization process of the items is constantly moni tored by the control-system. The first step concerns the identification of reliable sup pliers (the 80% is represented by Italian firms), followed by the meticulous quality control carried out by the employees, sup pliers or in the warehouse. It all precedes the shipping set up carried out in the shops.
Inspiring destinations!
Nowadays Glenfield is colonizing the fashion of different countries and it keeps branching out in new locations around the globe. Other than Italy, this brand has marked so far the fashion history of Aus tria, Czech Republic, Germany, Russia and China. The tricot knit represents cur rently the bestsellers. The customers are mainly women between 25 and 45 years. So far Glenfield proved itself with a success as an old-fashioned English style brand. On the other hand, this association of hardwearing knitwear that amalgam ates cosiness, comfort and luxury induces to imagine an English and Irish country side and the cottage life. But today’s cus tomer is very different from ten year ago; the consumer wants to come out from a shop with a new outfit from head to toe. 56 Manufacturing-Journal
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Even Glenfield is adapting to these new tendencies and strategies increasing the production and the supply. People choose Glenfield for its quality and style, the refined design has improved and keeps improving year after year for the client’s satisfaction and comfort. After the recent sale triumphs in China and Russia Glen field is aiming at expanding in North Eu ropean countries and Middle East. <<I would like our knitwear to be distributed from Norway to the Emirates>> says Stefano Verzoletto. 2008 is filled up with ambitions. Important investments made by the company forecast a sale increment of 10% with the intent of crossing the threshold of the 30 million Euros reached during 2008. Withal it is estimated an in crease of the Glenfield shops around the world of 10%. A particular attention is dedicated by the company also at a supply completion, widening the offered range of items. During last few months the com pany has concentrated more at the “total look”. Starting from the winter 2008 the array of accessories will be already wid en offering to the customer an always in novative and more various choice. <<We are getting ready to make our debut with new footwear by the spring 2009>>. Numerous aspects bring a daily dose of pride to Doctor Verzoletto. Despite the current slump in this field, Glenfield s.r.l. keeps growing no matter the obstacles, and investing for improving day by day surpassing itself and breaking any barriers. Let’s bear in mind that Glenfield is a brand “made in Italy” and links the company to its motherland through tradition, expression and art. Hark back to the old-fashioned and suit your present. Glenfield: <<your best-fit, your best expression>>.
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BICA S.p.A. your next desire!
E
ver since it was established on the 6th of March 1996, Bica S.p.A. has been able at enhancing exponentially its productivity. It has built up its success on a solid base of competence and tested experience. A past rooted on a huge knowledge baggage brought the company to the actual state of world leader in the manufacture of ‘garden furniture’. A quality step is made by Bica S.p.A. with the introduction of the resin-made furniture beside the traditional iron one. Nowadays Bica represents the only Italian benchmark in its field.The strong point of Bica has been represented from time immemorial by its great selection offered to the customer divided in different lines. • • •
Garden/camping furniture made in steel iron cotton-coated pipe. Resin-made Garden furniture. Household items such as clotheshorse and ironing boards.
Moreover the company has always tried to keep a high quality/price rate. -The most successful strategy- says Mr. Piergiorgio Simoni to our writer Claudio Corciulo-has been our answering promptly and efficiently at any changeable and unpredicted need by the customers-this is why our company keys the items to any particular need. A restricted number of well trained employees perform a great team-work joining expertise and accuracy in the design and availing themselves of some external studies concerning the matter in question. The production involves so far 120 employees and it is 100% internal. Up till now a new collection of resin garden furniture has been launched towards a medium-high target. Noteworthy changes have been made in order to provide the devices with robots for the handling and confection of the final goods.
58 Manufacturing-Journal
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The design discovered the nature; Bica makes it your home... Bica makes of an almost forty-year-experience its business card in order to guarantee to the client that reliability and solidity that today’s market urgently needs. The attention is always directed toward the innovation and the market evolution. Both things complete the image of a corporate that doesn’t stop onto the already achieved success, but looks at the future through the research of new keysolutions that will make your lifestyle as comfortable as possible. The firm was on of the first in its field at achieving the ISO 9001/2000 certificate and thus it is managed as a rule following the parameters scheduled by the rules. Moreover, the items produced by Bica are all tested due to the safety norms EN581.1/2/3. Hence, all goods meet requirements of great safety and trustworthiness, according to the European rules. The Bica group numbers among its partners all the major international raw matter suppliers; these are directly processed by the four production unit of Bica. Bica’s most important cu-stomers are distributed around Europe: the corporation is actually serving LIDL, CARREFOUR, LECLERC, REWE, METRO, ASDA etc. During the last few years there has been a radical change in the procurement way in addition to the
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changes made in the packaging process: clients are increasingly incline at purchasing goods right when they need and therefore demanding a personalization of the products. Bica has at its disposal an area of avant-garde design where new product solutions are constantly and competently tried and tested to satisfy at best the requirements and comfort of the purchasers. In this way the product reaches the consumer exactly in the way it was designed, boasting characteristics and shapes unique and originally different from any other competitor. All the processes related to the manufacture of Bicaâ&#x20AC;&#x2122;s items are strictly computerized and monitored under the accurate control of the designers and technicians; this entails a manufacture time reduction and above all a higher quality of the same products. The business manufacture is divided in four units. Thus, the division of the tasks among the units guarantees a greater specificity and credibility in the realization of the items. The four production units are the following: 1. Candiana (Pd) Garden resin furniture production. Assemblage of camp beds end iron deckchairs. 2. Pontelongo (Pd) Pipe and steel iron work. Cut, deflection, drilling, paint work and assemblage of chairs. 3. Correzzola (Pd) Clotheshorse manufacture. 4. Bagnoli di Sopra (Pd) Production of ironing boards and iron armchairs. Bica is leader in the production of hardwearing and stylish garden furniture choosing the best modern materials such as polypropylene (thermoplastic material), polystyrene (transparent thermoplastic), polythene (synthetic material) and plastic as a valid material for its lightness, durability and cheapness. Making it clear first that the garden furniture sector generally does not meet a great increase by and large. But Bica S.p.A. is planning an expansion on new markets that will grant the firm of a consolidation of the leadership within 5/10 yearâ&#x20AC;&#x2122;s time. The consideration given by the customers to Bica unquestionably represents a big pride for the company. High quality and low price make a perfect picture framed by the trust relationship established through the years between the company and the clients. Take a break and sit down in your garden for a minute, Bica makes it your home; donâ&#x20AC;&#x2122;t think twice, think Bica.
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1988, and at producing big capacity water chillers with brazed plates heat exchangers in 1989. At last the firm was the first in the manufacture of packaged coolingand-heating systems with sanitary hot water all-year-round for homes as well as for commercial buildings, up to big shopping centres. In 1992 AIR BLUE joins the original company, specialized in the production of air conditioning for residential applications and for hightech rooms. In 1993 GREEN BOX was established bringing its knowledge in water chillers and thermo-regulators for industrial process cooling. In 1996 the BLUE FROST was established with the specialization in refrigeration for food storage applications and other industrial processes requiring very low temperatures. The ARTESI was acquired by the group in 2001 with its specialization in design and manufacturing of fan coil units. In 2002 a new Permanent Representation office was inaugurated in China, on the exact in Shanghai. Finally in 2004 the three companies, Blue box, Air Blue and Blue Frost merged into the unique strong pillar actually leader in the world market named BLUE BOX GROUP. The victory and success are not necessarily directly proportional to the size of the company, on the contrary these years it is the quickest one to turn its customer needs into products at the top level of quality.
THE SPRINTER!
“A-Leading name in a cool world”
S
ince it was founded in 1986, the BLUEBOX GROUP never stopped pursuing its aims. The mission of identifying and fulfil the customer needs and provide solutions consequently faster, in the field of
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commercial and domestic air conditioning and refrigeration, is the goal chased by this great working team. The period of greatest prosperity of the company exploded about 20 years ago, in 1987, with the exclusive introduction on the market of the water chillers based on screw compressors. The company was the first at producing water chillers with built-in hydraulic modules just one year later, in
There is an existing variety of huge companies that are not capable at listening to their customers necessities, therefore they limit themselves at imposing their ideas and products. Besides, there are many companies with an insufficient production-capacity. The BLUE BOX GROUP takes care of its clients from the choice of the best solution to the commencement of the manufacture and the service, through a Dynamic Production Process that allows the delivery of massive chillers ( 1MW and more) within one week since the order!!! Mr Francesco Mastrapasqua, interviewed by our reporter Claudio Corciulo, asserts: “Our most useful and triumphant strategies are to believe that our team of employees and partners worldwide are our most valuable capital and a stable strong commitment to preserve the environment, to trust in the manufacturing plant, in the accurate choice of the most eco-compatible refrigerants, in the strict limitation of their usage by utilizing just the minimum indispensable, extra silent units and etc.” The point of strength of this master in fact is the
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usage of environment friendly products: • R407C, R410A and R134A refrigerant gas. • Minimum noise level and vibration • Minimum energy consumption • Usage of recycled and biodegradable products. It is amazing how the Bluebox Group allows pleasure without damaging and fully respecting the environment. All the processes are constantly monitored in order to respect precise and strict procedures, without making a dent on the quality of the final goods. The core of the business is the customer satisfaction, it is not only a matter of new innovative products, but the entire concept of designing and manu-
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facturing must be based on both the needs of the installers and users in order to supply a practical and satisfying product. After all, the Blue box group makes sure of giving out only long-lived merchandise. Francesco Mastrapasqua adds: “ If every product is seen as a concept instead of an object, then nothing is impossible”.
A WINNING TEAM! The Blue box new production plant employs approximately 350 people for a total business volume of 70 million Euros. The master company actually deals with 50 different countries around the world through a sales network of 80 distributors and 5 subsidiary companies. The 60% of the group production is covered by the international market. The firm invests mas-
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sive amounts in R&D offering a very wide range of chillers and close control units entirely working with R410A, including complete compressor-based systems that provides, not only cooling and heating , but also sanitary water simultaneously . Besides, the corporation is planning a future of constant expansion of the range of services and goods such as heating systems and high efficiency heat pumps. Quality tests are not only carried out on the finished product, every single step of production is subject to meticulous tests in order to get a successful final product which will not weigh on the fluency of the last general examination. Without shadow of doubt, the BLUE BOX GROUP is officially part of the most important worldwide recognised certification program for chillers: EUROVENT CERTIFICATION. Every department is certified by ISO 9001 and soon ISO 14000.
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BEYOND EVERY BOUNDARY... The international perspective of the company makes this last heading towards opportunities offered by Eastern European countries, especially Russia, Ukraine and Kazakhstan. Thus, the group is fully represented by excellent partners and constantly keeps a clinical eye on the market . Its power is highlighted by a professionally trained and skilled staff, competent in a perfect customer assistance at any time and framed by their own original style. Moreover the firm, with their need of know-how, believes in opportunities coming from countries with a remarkable economic growth such as China and India, with an immense potential. The BLUE BOX GROUP offers a turn-key solution, not only the unit but also the engineering, the proactive assistance in the choice of the best equipment, in the start up and maintenance of the units. It represents a significant sales tool. Customers are always more and more ex-
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acting!- retorts Mr Mastrapasqua to our reporter Claudio Corciulo-Therefore, the necessity of a company which is totally committed to ensure the full coordination of the air conditioning process, is crucial; in the same way it is fundamental to widen the range of products in order to be able at offering a large variety of solutions for every climate needed.
A GLANCE AT THE FUTURE... No-one can imagine or predict what is going to happen in five or ten year’s timeMr Mastrapasqua continues- If we look back with the hindsight, who could ever foresee such a US dollar, oil or raw material trend? Mr Mastrapasqua claims that the only imaginable and predictable thing so far is the existence of an everlasting strong need of the companies to talk and ‘communicate’ with the clients plus the priority of an excellent customer service offered by their experience and skills, anticipating in the fastest way any other rival, just like it used to be about 20 years ago. BLUE BOX guarantees the total satisfaction. Make it cool with the world leader, pick up your phone and call BLUE BOX!
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