Company description
Strategy of the company
Main priority of our company – development of metal working; increase our production capacity enforcing new technologies and purchasing new metalworking machines, wherewith our company can become more attractive to foreign companies, offering high quality products and services. Our aim – to become a subcontractor for number of foreign companies, which could endow regular incomes, planned production rate, the same time do not forgetting local customers.
Short history
Company was founded 27.march 1997. No. of employees – 2 persons.
Year 1998 – begin to sell second hand woodworking machines – 6 employees.
Year 1999 – company moves to a new place Vidzemes str. 5a, where set up new shop with 160m 2 and start to domesticate workshop with some 500m² .
Year 2000 – company starts to produce narrow band saw blades on its own, establish business contacts with Swedish companies, start to recondition second hand equipment and produce simple woodworking machines.
Year 2001 – company set up 3 new shops on a country side of Latvia (3 subsidiaries of Zagu Serviss) – Tukums, Jekabpils and Cesis (Ieriki). Start to produce more complicated equipment – welding machines for narrow band saw blades.
With year 2002 company employs 30 persons, from which half is involved in metalworking.
Beginning of year 2004 built one more 1000m² hangar for assembling.
To develop more our metal working, company decide to invest remarkable funds in new machines. During year 2003 there are invested almost 700.000EUR in new equipment: 1) metal sheet cutting laser TRUMPF TL3030 4kW; 2) benching table AMADA HFE 220/4, 7 axes. For the moment these are most high-powered among modern machines in Latvia and even in whole Balticum.
Infrastructure
Our company main office is located in Ogre, in a strategically good place near one of the main Latvian roads Riga - Daugavpils . Ogre is only 35km from Latvian capital Riga, where there is a harbour and container terminal. Workshop area we have now is 1600m² . Our total area is 19.000m².
Market
We do services and produce certain products mostly for local market for now, but, in our situation, as metal working branch in our company develops so fast, we have more and freer power reserve, so we are ready to start production for export, which we have started very successfully in the beginning of this year 2004.
• We started production of gambling machines to Italy.
• We are subcontractors to gravel machines MOXY cabin producers.
• We are producing oil tanks.
Collaboration partners
Our main partners with supplying steel (local companies as well as foreign companies subsidiaries) - BE Terauds, Uddeholm Tooling Latvia, Vikom, Latvijas Metals, ASVA metals etc. Our customer, which use our laser cutting services and assembling services (mostly subsidiaries of foreign companies) - East Metal, Tiprobaltic, BacMetal, Locitech, Dinex uc. and local companies Vituss, EHT Dizains, Ekstra 999, Belmast, Vater etc. Foreign companies – Eridi di Parma (Italy), Jetflex (Sweden). Significant projects – thanks to new equipment and new technologies we could start to produce our own product (wood waste chipper), agreements for subcontracting with Danish subsidiaries.
Advantages of competitiveness
In comparison with EU countries, here in Baltic countries still there are comparatively low labour costs at the same qualification. New, high developed technologies and modern machines in combination with cheap, but qualified labour is very good soil for foreign companies to station their orders right in our company. But, our main advantage of competitiveness is the chain off low costs:
• Low labour costs;
• Cheaper immovable property and its rent;
• Lower transportation costs;
• Cheaper steel from Russia (for definite products, if acceptable quality);
• Cheaper engineering, designer and management costs;
• Less taxes;
• Not so hard constraint in labour code;
• Quick-tempered progress, dynamics;
• More flexible by producing one or other product - easy to adapt producing different products.
Totalized all these factors – you can get high quality product for very reasonable price.