The insights about the situation in the Automotive sector

What is the real situation of the Lithuanian Automotive sector? Why it’s complicated to fulfill orders of clients? What could be a solution?

The annual growth of the Lithuanian Automotive sector is decreasing. This is the worst result of the production during the last 11 months. It is possible that the results of the Lithuanian Automotive components industry could be not very optimistic till the end of 2021.
Representatives from the BACC see one of the solutions – subsidies from the Government of Lithuania which could retain employees and help to survive a quite complicated period for business.
SOURCE and PICTURE: Verslo žinios. 

/by
,

BACC members at IAA Mobility Fair, Germany

This week, BACC and its members, Lithuanian business companies as well as LINPRA members are participating at one of the world’s largest cars’ and mobility exhibitions, – IAA MOBILITY (Germany, Munich). Representatives from the Ministry of Economy and Innovation, the Ministry of Transport and Communications, R. Misiulis, Lithuanian Ambassador in Germany and other guests are visiting the exhibition together with the companies representing Lithuania.
Today, Giedrius Valucas and representatives of the Lithuanian delegation introduced Lithuanian companies which have a purpose to strengthen existing and establish newbusiness relations with German car manufacturers as well as manager industrial companies and corporations.

 

/by
,

Webinar: Baltic States – opportunities for UK automotive

Last week, the webinar “Baltic States – opportunities for the UK automotive”, organized by SMMT, took place online. Speakers from three Baltic countries made presentations about the automotive sector and the actual situation. Lithuania was represented by four speakers: Giedrius Valuckas, the Chairman of BACC; Darius Lasionis, the CEO of BACC; Laurynas Jokužis, the CEO of Elinta Motors, UAB, Alvydas Naujėkas, the CEO of Vėjo projektai: e-buses Dancer producer.
Giedrius Valuckas presented economic and business environment in the Baltic countries as well as all the advantages of manufacturing, and perspectives of the automotive sector.
Valuckas emphasized that the economy of 3 Baltic countries were recovering fast despite the lingering pandemic. Baltic countries have perfect infrastructure and due to the favorable location perfectly serves Northern, Western and Eastern European markets. The Baltic countries could be a manufacturing and logistic hub which has great potential for business connections between the UK, Lithuania, Latvia and Estonia.
Due to strong engineering and technical skills, multicultural environment and rapid development Baltic states become interesting partner to develop manufacturing projects.
Darius Lasionis presented the BACC cluster and its activities. He emphasized that Lithuania was rated among TOP 10 in the world and TOP 5 in Europe in terms of its attractiveness for global manufacturing. The CEO also presented the services and products that BACC companies can provide to partners in the UK. Lasionis discussed about the international companies which have been successfully operating in Lithuania for many years.
We believe in fruitful cooperation between the UK and Baltic companies in the automotive sector.

/by

Automotive meetings – Digital week

This week, Giedrius Valuckas, the Chairman of the Board of BACC and Darius Lasionis, Executive Director of the BACC, participated in a virtual conference “Automotive meetings – Digital week” and B2Bmeetings. During the conference, G. Valuckas presented Lithuanian/Baltic Automotive market, BACC cluster, companies activities and competitive advantages. D. Lasionis and G. Valuckas also had B2B meetings with various automotive OEM and TIER1 companies.

Lithuanian Automotive companies successfully withstood the COVID-19 pandemic and the amount of orders the 1Q in 2021 have significantly increased compared to 2020. Automotive companies – BACC members are developing new products and services. Lithuania and the Baltic States are being “discovered” due to their well-developed infrastructure, good geographical location connecting the markets of Eastern, Northern and Western countries, available engineering competencies and competitive environment. 

We believe that new business partners will find suppliers – BACC companies and start developing common projects. 

/by

Automotive industry manufacturers are looking for opportunities to retrain employees

There are 14.6 million of Europeans directly related to the Automotive industry.

It is planned to retrain 700,000 employees each year, which will cost about 7 mln. Eur.

There are about 50 companies working in the Automotive industry in Lithuania.

Local manufacturers claim to have their own strengths and flexibility.

The competition for the production of components for the new generation of cars is becoming more intensive.

Discover more (source and photography): Verslo Žinios. 

/by

Panevėžio Aurida, UAB – creation of successful products and expansion to new markets

For more than 60 years, UAB Panevėžio Aurida has been designing and producing compressors for brake systems and various assemblies used in trucks, buses, tractors, road construction equipment and other heavy machinery. For many years, the factory focused on exports to Eastern markets, supplying products to KAMAZ, MAZ, KrAZ, URALAZ and other automotive producers as well as to the market for spare parts. For this reason, the company’s operations were not especially well-known in Lithuania itself.

The team at UAB Panevėžio Aurida, while exploring new niches for products and seeking to enter other markets, noticed that the vehicle fleet and equipment used in agriculture in Lithuania and neighbouring countries has significantly changed in recent years. There are now many tractors and combines, new and used, that were manufactured in the West. This has increased the demand for spare parts. Therefore, a programme to produce compressors for agricultural equipment was drawn up, and a high-priority effort to research this niche and prepare new products for agricultural use was begun. In 2019-2020, an entire range of new compressors for New Holland, Case IH, John Deere, Deutz-Fahr, Fendt, Valtra, MTZ, Massey Ferguson and CLAAS tractors and combines was designed, prepared for production and/or adapted from the assortment already being produced. The technical and operational characteristics of the products made by UAB Panevėžio Aurida compare favourably with analogous products from compressor makers such as Knorr-Bremse, WABCO, Haldex and POLMO. At the end of 2020, the first contracts with agricultural equipment service companies were signed and production began.

Also in 2020, cooperation with automotive and agricultural equipment manufacturers in the company’s traditional markets continued. Samples of the 4212-101 model were supplied to the Petersburg Tractor Plant, and the samples demonstrated performance superior to those of Belarusian manufacturers that are currently in use. It can be said that at this time the compressor made by UAB Panevėžio Aurida is one of the best in the world. It is planned to use the 4212-101 model in the latest Kirovets tractor engines.

New compressor models 3122-202 and 3122-203 have been prepared for use in the latest Euro 5 engines JMZ-534 and JMZ-536 produced at the Yaroslavl Motor Plant. When the pandemic-related restrictions are lifted, a sample shipment will be delivered to the engine manufacturer.

UAB Panevėžio Aurida produces and supplies to the market the largest assortment of compressors for KAMAZ vehicles. In 2020, two new compressors were introduced, models 18.3509015-20 and 18.3509015-21, for use in the most widely-used truck engines. It is noteworthy that in 2014, participating together with the Baltic Automotive Component Cluster at the Hannover Trade Fair, UAB Panevėžio Aurida’s compressor 4222-100, designed for KAMAZ, was recognised as the most innovative product, for which there are no analogues from other manufacturers even today.

It is also noteworthy that when the company began to cooperate with PAZ, UAB Panevėžio Aurida’s compressor model 3112-101 demonstrated testing parameters superior to those of compressors made by world-class manufacturer Knorr-Bremse, and the compressor model 3112-104 is the only compressor used by PAZ in natural gas engines ISUZU-4HV1 in the PAZ 32053 bus.

During the last 25 years, the company has manufactured compressors of various designs. In the annual Product of the Year competition sponsored by the Lithuanian Confederation of Industrialists, the company’s compressors were awarded gold medals in 2012, 2013 ir 2017.

The company has prepared compressor model 4222-103 for Cummins engines in Dart, Enviro, Falcon, Versa and other buses; model 5222-100 for Renault trucks; model 7122-102/103 for Mercedes-Benz OM 457 LA engines; model 7222-200 for Cursor 13 engines in Iveco (Stralis), Renault and other trucks.

The company is proud to say that after 25 years of intensive work, it remains a leading exporter, with more than 60 compressors of various designs being produced at the present time.

VIDEO ABOUT THE COMPANY AND ITS AWARDS.

/by

Discover new supply chain partners. Success stories from engineering and technology and the latest achievements

Lithuania has rich traditions in engineering, mechanical and automotive sectors. The country is located in the very attractive geographical location between Western, Northern and Eastern Europe and has all needed engineering skills and competencies, which rising every year. Those are the main reasons for German companies to be interested in possible cooperation with Lithuania.

G. Valuckas, president of Lithuanian Free Economic Zones, talked about the most important investment possibilities in Lithuania. Our country is one of the most attractive countries for doing business on a global scale. Lithuania is in the 11th place among 190 other countries in world. The talent labour is large and the geographical situation is attractive, too. G. Valuckas sees many ways for possible cooperation between two countries’ manufacturing sectors and continues to work on it.

D. Lasionis, CEO of BACC, talked about the Lithuanian automotive production and enjoyed the most favourable conditions for growth. D. Lasionis presented the latest achievements and the electric vehicle technologies developed in Lithuania with intentions to find possible cooperation in the Automotive sector in Germany.

Please find out the full video.

/by

A very important cooperation

We are pleased with the fruitful cooperation among the Government of the Republic of Lithuania, the Ministry of the Economy and Innovation,  the Ministry of Foreign Affairs, Enterprise Lithuania and BACC member-companies.

BACC member-companies initiate meetings with the Ministry’s vice-ministers,commercial attaches and make proposals. BACC members share information on current events, thoroughly describe the situation in the companies and make proposals regarding support measures for the business community.

BACC member-companies closely cooperate with LINPRA, the Lithuanian Engineering Industries Association, seeking ways to make effective use of the technological capabilities of companies in the sector.

BACC companies organise events bringing members together, share insights into the current economic situation, exchange information about the effects of COVID-19 and consult on various strategic decisions. In the face of today’s uncertain situation, this cooperation becomes even more important, because only by consulting together can the best all-round solutions be found.

/by

Lithuania – discover new supply chain partners. Success stories from engineering and technology and the latest achievements

Baltic Automotive Components Cluster (BACC) together with German Association of the Automotive Industry (VDA), German-Baltic Chamber of Commerce (AHK) and Embassy of the Republic of Lithuania in Germany cordially invite you to the online webinar “Lithuania – discover new supply chain partners. Success stories from engineering and technology and the latest achievements” on November 17, 2020 at 10.30 a.m.
Lithuanian automotive production is currently enjoying the most favourable conditions for growth, yet the market remains far from saturated. Take a look at the country’s rich traditions in engineering, strengthened by the recent arrival of major industry players like Hella and Continental. Establish collaborations in Lithuania that deliver today and are ready for tomorrow. Discover the latest achievements and the electric vehicle technologies developed in Lithuania.

For more information and registration please click here. 

Agenda:
1) Dr. Kurt-Christian Scheel, Managing Director of German Association of the Automotive Industry (VDA): introduction and welcome speech.
2) Dr. Marius Skuodis, Viceminister of the Ministry of Economy and Innovation of Lithuania: overview of Lithuanian eco-system.
3) Florian Schröder, CEO of German-Baltic Chamber of Commerce (AHK): introduction and welcome speech.
4) Giedrius Valuckas, President of the Lithuanian Association of Free Economic Zones: Lithuania – place for expansion or gateway for German companies.
5) Darius Lasionis, CEO of Baltic Automotive Components Cluster (BACC): Development of automotive sector in Baltics – engineering achievements and success stories with examples of latest developed solutions for electric vehicle technologies.
6) Tobias Pohlschmidt, CEO of HELLA Lithuania: case study of expansion to Lithuania.
7) Q&A.
Moderated by Šarūnė Šablevičienė, Commercial Attaché of the Republic of Lithuania in Germany, Embassy of the Republic of Lithuania
Please register up to 13 November.

/by
,

BACC member-companies: news and forecasts

The pandemic has disrupted not only the supply chains, but also the sales and expansion plans of many companies. On the other hand, Lithuania is positioned to be one of the EU member-states least-affected by Covid-19. After a sudden but brief halt, Lithuanian industrial companies have been gradually recovering in the third and fourth quarters of 2020. In the automotive industry sector, a similar dynamic can be seen: some companies are experiencing difficulties, but there are also companies in which turnover has increased significantly and even exceeded the numbers for the third quarter of 2019. It is forecast that the turnover of BACC member-companies and of Lithuanian automotive sector companies will decrease about 10% compared to 2019, but it is worth noting that this is one of the smallest decreases in turnover in this sector in all of Europe.

Vytautas Mazuronis, head of sales for the Middle East and Africa at UAB Baltic Filter, a maker of automotive filters, says that orders have been lined up until about the middle of December. Of course, assuming there are no force majeure events, which remains a real possibility. In recent months, the company was able to keep its clients and even attract new customers. He says that supply processes in the spring were slowed by transport-related problems and export volumes decreased by up to 10%, but he is quite optimistic regarding the planned annual results. At present, companies tend to seek shorter supply-chain solutions, to fill orders as rapidly as possible. The current situation is favourable for Lithuanian companies because EU automotive sector companies see the positive price-performance ratio offered by Lithuania’s manufacturers and, instead of ordering from Asia, more and more often choose European manufacturers.

Tomas Kocius, General Manager of UAB Proton Engineering Lithuania, reports that at his company, “a recovery can be felt after the standstill”. The company’s operations directly depend on the main location in Sweden, where parts are made and then assembled in Lithuania. He says that it is difficult to make a forecast for 2021, but the company is fully prepared to continue producing for Scania and Volvo.

Evaldas Rimša, CEO of UAB Baltec CNC Technologies, a maker of precision mechanical components and provider of CNC milling and turning services, says that production and orders in the second half of 2020 have almost returned to normal.

Kristina Šarkinaitė, representing UAB Metec, also reports increasing orders and describes the current situation at the company as good. The company has hired additional staff to ensure timely order fulfilment. In terms of turnover, the company hopes to perhaps match last year’s total, if the pandemic does not disrupt operations. Šarkinaitė notes that clients have recently become more demanding, but the company has been able to meet clients’ fast-changing requirements and adapt to the current market situation.

Petras Kadziauskas, CEO of UAB Elameta, says that for the time being the company has sufficient orders and expects that a decline like what occurred in March and April will be avoided at least through the end of the year. September and October were noteworthy for the large number of orders received, but it is difficult to make a forecast for 2021. UAB Elameta cooperates with other BACC member-companies, UAB Hi-Steel and UAB Metec, and the companies depend on each other. Successful cooperation is expected in 2021, too.

Today’s recovery in the automotive sector can in part be explained by manufacturers in the European Union seeking to produce and register cars before the end of 2020, because strict CO2 emission standards will take effect from next year. In addition, seeking to avoid or at least reduce the risk of supply-chain disruptions, clients are increasing orders for BACC member-companies. The growing order volume demonstrates that BACC member-companies are competitive and make great products at attractive prices. The situation at BACC member-companies is quite stable, and it is expected to maintain the current acceleration as much as today’s situation allows.

/by