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Description
DOMEL is a wooden furniture and floors factory, a family business established in 1945. Investments in environment-friendly technical solutions and constant product development have given us a sound market position. To make the business even more competitive, together with our Norwegian partner, Perfect Connection, we have planned to implement an original production technology and a new product – industrial mosaic parquet made of hardwood with high durability parametres. The technology will be patent-protected with regard to a design solution of the sawing machine. The mosaic parquet will be made of 100% oak or ash wood waste generated in the process of wooden floors production. The parquet will have higher hardness and abrasion resistance of the surface, higher resistance to humidity stress, and surface flexibility, with joints between wood tiles made by tongues and grooves. It will be the only wooden floor in the world (with finished surfaces) featuring active properties of adaptation to the base surface. Any other floors with such properties are made using synthetic materials.
The activities planned under the project are: the purchase of an automated technological line for cutting and bonding of wood pieces, the installation of a PV set of 500 kW to power the new line, the exchange of outside and inside lamps to energy-saving ones, the purchase of development works to optimise the mosaic production technology, and working visits of our managers to Norway.
Thanks to the project our company will reduce its anual CO2 emissions by 751 tons, and the network power consumption – by 0.98 GWh.
Summary of project results
The object of the completed project were comprehensive investment activities aimed at the implementation of innovative product and technological solutions. An important constituent component of the project was the implementation of specific investments aimed at improving energy efficiency.
As a result of the energy efficiency audit performed before the implementation of the project, it was found that the company has to improve its competitiveness, in particular in terms of maximum utilisation of raw resources (including waste) and reduction of the energy consumption of production and technological processes. The introduction of new process and product solutions opens before the company the possibility of competing on current markets and of acquiring new Customers. Environmentally-friendly solutions are very well received by ecologically conscious Customers (in particular residents of Scandinavian countries), who expect new eco-products and see a great demand for these.
The achievement of the assumed objectives was necessitated by the performance of specific tasks:
1. Purchase of infrastructure necessary for the implementation of innovative solutions.
2. RES investments and upgrades of lighting.
3. Technological improvements of the product and the process.
4. Implementation of the developed strategy of entry of the Norwegian market.
As a result of implementation of the above-indicated market activities, we have presented an innovative product – an industrial hardwood floor mosaic, designed according to our own concepts and innovative solutions.
Interest in modern process technical solutions that affect quality and resistance of the offered floors has been increasing for several years now. Of significance is also the growing ecological awareness of customers that forces the development of products keeping environmentally-friendly solutions in mind.
It was assumed that the project would use environmentally-friendly solutions and technologies aimed at improving the attractiveness of the retain offer and of the company competitiveness.
The implemented project took into account all of the original assumptions and challenges. The current project will result in improvements in energy and material efficiency, limit CO2 emissions to the atmosphere and shall improve revenue, and accordingly result in improved company financial results.
All tasks assumed for the purpose of the project were completed.
As a result of the conducted project implementation work, a modern production line for the new floor mosaic type was designed and purchased, a PV panel system was installed, and lighting was replaced across the entire company, with a new production tent erected as well. In course of the implementation work, the technical process effected by the new machine (line) was optimised (together with the Partner from Norway and with the Scientific Facility), with research work carried out to verify the innovation capacity, and also the robustness and strength, of the new product. On the basis of the research, changes were implemented that significantly improved the production process as well as the final resulting product. In course of several meetings initiated by the Partner, new Customers were acquired in Norway, relevant cooperation contracts were signed, conditions of entry to the new market were assessed, the strategy was action was described alongside the subsequent steps to be taken. The meetings confirmed enormous interest in the new product, its parameters, trade potential and ecological performance.
The entire investment will enable an increase of productivity in terms of wooden floors, with rising demand being noticeable. The introduction of the new product onto the Norwegian and Scandinavian markets will open up the possibility of introducing other wood products already manufactured. There also exists a good chance of commencement of cooperation in terms of furniture sales. We are currently entering the stage of acceptance of orders of the new product and building sales channels.
Advantages from the development of the project for Domel:
- Improvement of company innovation capacity and competitiveness – implementation of two national innovations, product and technological, in course of the project. The production resources acquired in course of project implementation will provide the company with the possibility of implementing innovative solutions for own operations.
- Company development through the introduction of an improved, innovative offer – expansion of the offered range shall improve the development processes in the company and will satisfy customer needs, also having the effect of acquisition of new customers.
- Improvements in energy efficiency on the basis of reduction of end energy consumption and of CO2 emissions.
- Usage of RES. Independent production of electricity from renewable sources shall enable the reduction of purchase costs of conventional energy from suppliers,
- Significant improvement in production performance and reduction of production energy consumption.
- Reduction of production costs and improvements in production capacity of the company, ultimately translating into improvements of company profits.
- Acquisition of ever greater numbers of orders and large site orders, the changes implemented in the technological process shall enable the company to improve revenue. The investment shall also ultimately improve the usage of resources and waste.
- Strengthening of internal potential – development of fixed, intangible, human and financial resources – thanks to the implementation of this project, an innovative production environment will be created, composed of an innovative machine backlot, hence implementing the innovation on the process (technology) level.
- The achieved improvements in revenue thanks to the investment shall allow the company to develop further using the most innovative solutions.
- Reinforcement of company market position and prestige.
Advantages from the development of the project for the Norwegian Partner and for New Customers
- Cooperation with the Norwegian Partner, getting acquainted with the new market, with the rules of cooperation, with history, and acquisition of information simplifying negotiations with Norwegians.
- Development of bilateral cooperation between Poland and Norway based on cooperation of the company with other members of the Norwegian-Polish Chamber Of Commerce,
- Conclusion of contracts of cooperation with two Norwegian companies, opening of new sales channels,
- Improvements in revenue of the Norwegian partners.
Other advantages from project execution
- Creation of new jobs – as a result of the project, two new jobs were created.
- Reduction of economic and social inequalities within the European Economic Area.
Summary of bilateral results
Domel plans to maintain the acquired business contacts with Norwegian Partners abd support their activity on the local market . The experience we presently have indicates that participation in trade shows not only facilitates the expansion of cooperation with current partners, but also the acquisition of new contacts to extend availability of our products on the Norwegian market. At the same time, during meetings with customers, presentations of our company, of the project, of the new product, the usage of innovative solutions are a significant step towards the improvement and development of environmentally-friendly attitudes. Awareness of the implementation of the project: Focus on the country, on Europe, on the company and on support projects as a component of the world trend in terms of raising awareness and knowledge on environmentally-friendly actions and rational energy use. Meetings with Norwegian partners conducted up to now show that the topic of ecology, consumption of raw resources, protection of nature and health are all key factors decisive for the possibility of commencement of cooperation. It is easier for the Norwegian Partner to arrange meetings when they previously communicate that the company is pro-ecological and develops its potential thanks to the support of the Norwegian Financial Mechanism. We will soon be making joint decisions concerning participation in trade shows and other marketing activities. The development of the strategy and rules of searching for new customers are all indications to undertake further efforts to solidity and expand the presence of our company and brand on the Norwegian and, more broadly, on the Scandinavian markets. As a result of work of the project partner, our key success was signing mutual cooperation contracts with respect to the introduction of the new product to the Norwegian market together with one Norwegian company, and the signing of a letter of intent with another.