More information
Description
Mega Metal is family business with long tradition of business. Main products are parts for agricultural machines - a tractor rotary cultivator, flail topper, fertilizer spreaders, double-disc fertilizer, topper mower, tipper forks etc. In this niche, Mega Metal is one of three most successful producers in Croatia, in terms of products sold and revenues achieved.
Company produces its own products, but also for a big companies in Europe under their brand name.
Project:
In the production process of a company there is still significant room for improvement, as some processes are insufficiently automated (e.g. welding process). Some activities are manual, and some are outsourced (metal fine cutting). This implies low productivity. Therefore, company is not able to fully satisfy the demand for its products, and is not able to offer favorable delivery terms.
The production process currently in use implies also higher costs - more people in production, transportation costs (gas, trucks, driver, insurance), costs of external service, etc. These costs must be either reflected in higher prices of Mega Metal''s products (which means lower competitiveness), or in lower profit for Mega Metal. Mega Metal combines both.
It also implies environmental footprint - the existing equipment in use is slow, uses lot of energy, and transportation as due to outsourcing results in CO2 emissions into the atmosphere.
To increase production capacity, shorten delivery terms, decrease the overall and unit production costs, to be ultimately able to offer products under more competitive prices, but also decrease environmental footprint, Mega Metal needs investment into new, modern, more automated, less environmentally damaging equipment.
This project is about investment into Laser Fiber Cutting Machine and automated welding machine.
It is expected that as a result of increased competitiveness, company will increase its revenues and profit, and will be able to increase export.
Summary of project results
Operating in metal manufacturing industry, many activities in Mega Metal were carried out on the outdated technology and some activities even manually. This is why, to be able to remain competitive on the market, Mega Metal decided to modernize its production. They identified the remaining bottlenecks and realized that the investment into fiber laser cutting machine for tube and automated welding machine was needed to increase the productivity and production capacity.
The main activity of the project was purchase of the fiber laser cutting machine for tube and automated welding machine. By investing into these two pieces of machinery, Mega Metal increased automation of the production process, and manual work is reduced to minimum, productivity has increased significantly and so is the capacity. The production costs have lowered, and quality of products have improved. This is why the competitiveness of the company has increased.
The beneficiaries of this project are company''s workers, who are now working in better conditions (cleaner air, lower dust pollution), with less manual work involved.
As machines are also much faster and consume less energy, contributing ultimately to lower carbon footprint, the beneficiary of this project is the society in general. Society in general will also benefit from the increased employment opportunities that these investments will result with.
The Project Promotor will benefit through increased competitiveness on the market, increased revenue and profit, contributing to increased competitiveness of the entire Croatian economy