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Description
Evinox products and solutions contribute to the reduction of energy consumptions and CO2 emissions from space heating, facilitating the installation and operation of eco-efficient heat networks. The products are equipped with Evinox controls and software and sold by Evinox Energy Ltd. With this project, the company is aiming to extend the production capacity and internalize some of the activities that are currently subcontracted.
The company wants to implement a state-of-the-art in-house sheet metal fabrication and powder coating capacity for the enclosures and metal components in the final products to complement the existing fabrication and product assembly capacities. This would enable fast and cost-effective introduction and industrialization for the new products in the development pipeline. Subcontracting metal fabrication and powder coating significantly affects the gross margin and operating profit. Relying on outside suppliers also limits the production and growth capacity as well as slow down the product development process. The key activities are:
- Project management by internal team with support of a consultant.
- Investment activity which includes purchasing and implementing the equipment.
- External consultancy for grant management and financial audit.
- Project publicity to ensure visibility of the project.
The successful implementation of the project will lead to an increase in production capacity and competitiveness of the final products, through reduced inbound purchases, faster order completion times and reduced downtime due to late supplier deliveries.
CO2 is estimated to annually decrease from 91 tonnes in 2021 to 66 tonnes in 2024. The projected is expected to lead to a creation of 13 new jobs.
Summary of project results
To be able to efficiently respond to market needs, Evinox Technology HUB should have improved the production cost and at the same time the environmental footprint of the heating system manufacturing. The company has identified a project investment in an in-house metal sheet fabrication that would supply the heating system production with the necessary components. The project would have allowed the Applicant to ensure a better response to market demand. The decision to prepare and implement the extension of the production capacity was also based on the need of eliminating the dependency of the company on the subcontractors of metal sheet fabrication. The Applicant proposed an investment meant to produce positive results in terms of competitiveness (increase in turnover and net operational profit), production capacity, product quality and better environmental and socio-economic effects at the community level.
The following innovative equipment have been implemented in the applicant''s activity, resulting in innovation at the company level (new production processes, new software solutions, new process integrations).
- 1 Smart CNC Fiber Laser Sheet Metal Cutting Machine (3000 W) complete with automated loading/ unloading/ transfer module and CAM cutting package. (CNC = Computerized numeric control)
- 1 Smart CNC Pressbrake for bending large panels, up to 3000 mm length, complete with dynamic sheet support for large parts handling and CAM bending package
- 1 Smart, Fast and Mobile CNC Pressbrake for bending small parts, up to 1000 mm length, complete with mobile bending robot and CAM bending package
- 1 Nitrogen generation system complete with compressor
- 1 Semi-automatic electrostatic powder coating line complete with degreasing tunnel with heat recovery, electrical drying oven, double painting booth with automatic spray guns, paint filtering and recovery system, polymerization oven, demineralized water generator, conveyor line and carts.
The project implementation has enabled the Promoter to apply innovative technologies and implement a green production flow.
The Promoter has reported the below indicators as being reached or on track for implementation within the set deadline:
- Estimated annual growth in turnover: 165% in the second operational year compared to baseline year 2021 (based on the preliminary figures provided by the applicant for 2021)
The Promoter is confident that it will achieve the expected growth in the second operation year. In 2023, which the Promoter considers a very difficult year for the market in which they operate, the company reached a 30% increase in revenue compared to 2021.
- Estimated annual growth in net operational profit (EBIT): 228% in the second operational year compared to baseline year 2021 (based on the preliminary figures provided by the applicant for 2021)
In line with revenue growth and cost reduction generated by the internalization of sheet metal panel production, the Promoter estimates that it will reach EBIT indicator in the 2nd operation year.
- Creation of new jobs: 13 at the end of 2024 compared to baseline year 2021
The Promoter is currently sizing its staff in relation to the demand for its products. Given its current sales forecast for 2024, the Promoter believes it will reach the new jobs indicator in the 2nd operational year. Evinox currently employs 24 persons.
- Estimated annual decrease of CO2 emissions from 91 tonnes of CO2 to 66 tonnes of CO2 at the end of 2024.
Since the Promoter is now manufacturing the sheet metal panels itself, transport emissions will be significantly reduced. Modern, efficient equipment in operation will also generate significant CO2 savings throughout the activity. The Promoter anticipates reaching the emission reduction targets smoothly at the end of 2024. Without direct connection with the project indications, part of the electricity is produced on site with photovoltaic panels and is purchased by the company.
In addition, during the Digital Visit the Promoter reported that due to the investment into new equipment the company will no longer rely on suppliers and is now holding 100% ownership of the production process, which provides important competitive advantages and cost efficiency. Evinox has recently signed its first contracts in Romania and is planning to enter the German market.