This autumn, the majority of BACC members have more orders than at the same time last year. The increase for these members ranges from 20% to 50%. All companies understand the dangers posed by the pandemic and are trying to get ready for the near future.

Why do BACC member-companies have more orders at the moment? There are several causes:

# The automotive market is recovering, and getting back on track. Consumer expectations have improved as well. Those are the main factors for why operations in the automotive sector are picking up speed.

# As the second wave of Covid-19 approaches (or has already arrived), in order to avoid or minimize disruption of delivery, OEM and TIER1 clients are increasing orders for BACC companies.

# It shows Lithuanian BACC companies are competitive and are able to make products of good quality at attractive prices.

In 2019, Kaunas-based UAB HISTEEL increased its serial production volume and turnover grew by 2.9%. It is one of the leading and most modern metal-processing companies in the Baltic region, producing 850 different articles in production runs ranging in size from 1,000 to 5,000,000 units per year.

The core business of HISTEEL is production of parts by punching and drawing, production of small welded parts and assembly of fittings. The company specialises in the making of prototypes and small series production, when a given article may be produced in a production run ranging in size from several to 1,000 units in a year, as well as mass production, when up to 5,000,000 units of a given article may be produced in a year. Automotive manufacturers and other industrial sectors figure prominently among the company’s customers.

The company’s deputy managing director, Dainius Volskis, emphasises that “2019 was a successful year for our company. Rising volume in serial production and outsourcing of production from Western Europe let the company generate a larger profit and invest in machinery and equipment. Our expanding list of customers gives us the opportunity to plan for continued growth in the next year, despite the situation of our market sector being quite complicated.” HISTEEL’s turnover was 10.5 million euro in 2018 and 10.8 million euro in 2019, that is, an increase of 2.9%.

Liudmila Valinčienė, the head of sales, draws attention to the investment in machinery and equipment, thanks to which the production process has become significantly more efficient. “Last year, companies across our sector in Europe experienced decreasing sales volume, but that encouraged us to look for alternative solutions,” she says. HISTEEL constantly pursues innovations and has been able to find long-term sales partners.

At present, product assortment includes 850 different articles. One of the company’s main advantages is the fact that a customer can find everything it needs under one roof:

• From design to technical calculation and tool production in-house.
• Coordinated and effective processes using optimal solution methods.
• HISTEEL stays with the customer throughout the entire process: from the initial idea right through to serial production.

The company exports most of its production to customers in Germany, France, Austria, Hungary and the Baltic region. Only about 12% of production stays in Lithuania.

Liudmila Valinčienė, the head of sales, says that the company invested heavily in 2019 in employee training, to develop specialised skills. Employees with exceptional competencies contribute greatly to improving efficient production processes and increasing sales.

She emphasises that in recent years, the company has been audited by several foreign companies prior to possibly beginning the production of certain articles. According to her, the results of these audits have been quite successful, so in the future the company expects some significant orders.

UAB Panevėžio Aurida finished 2019 by finding new sales channels in strategically important Eastern European countries and by opening a company in Germany. The company, which produces compressors, machines parts, melts and casts aluminium and thermally treats parts, has expanded its assortment orientated to agricultural equipment, but also plans in the near future to produce more advanced models of compressors and to increase production efficiency.

Although the company has long years of production experience and reliable clients, the company constantly introduces innovative technology into its production processes. To remain competitive in the market, in 2019 the company expanded its assortment of compressors for the agricultural sector. The company also began to cooperate more closely with the Minsk Motor Plant (MMZ), and the first orders from MMZ were filled.

The compressor manufacturer occupies strong positions in Eastern Europe, but is now expanding its sales network into smaller regions. Deputy CEO Mantas Klupšas says, “We see a lot of potential for growth in the Western market, too. Starting in the third quarter of 2019, we began to operate more actively in the Western market, and we opened a company in Germany.” The company participates in international trade fairs, forums and conferences, seeking to expand its customer base.

One of the company’s exceptional features is its more than 60 years of manufacturing experience. As deputy CEO Mantas Klupšas says, “We are the only compressor factory in the Baltic countries and we are in the top 5 in the world, having such long experience and an extensive knowledge base.” Another of the company’s advantages is the highly-qualified personnel working in the factory. The deputy CEO is convinced that “thanks to a devoted staff which loves what it does, we are among the strongest compressor manufacturers, with an assortment of more than 50 compressor models.”

Most of the company’s production is exported to Ukraine, Russia, Belarus, Kazakhstan, Turkmenistan, Uzbekistan and other CIS countries. The company also has clients in Germany, Poland, Italy, Cuba and countries in Africa. Only about 1-2% of the company’s production is sold in Lithuania.

According to deputy CEO Klupšas, “The indisputable factors that have made us successful and which drive the company’s growth are our long years of experience, modern production equipment, highly-qualified staff and flexibility in manufacturing.”

The company has set important objectives: to deepen its know-how in the area of producing compressors for the agricultural sector, to expand its assortment of products, to increase production efficiency, to implement a modern enterprise resource planning system, to invest in new equipment, to expand production volume, to expand into the Western market and to establish cooperative relationships with large European manufacturers of commercial vehicles.

In 2019, the sheet-metal pressing, welding and cutting company Nitator-SLT diversified part of its production and began to orientate toward providing specialised services to industrial companies in Lithuania. Although 99% of the company’s production goes to Sweden, the company does not intend to remain focused just on the Swedish market. The company is actively searching for new growth opportunities. The 20% growth in Nitator-SLT’s profit is proof of that.

One of Nitator-SLT’s main activities is supply of sheet-metal components to clients with especially demanding requirements for quality, environmental responsibility and delivery precision. The company manufactures and supplies parts to clients including Scania, Volvo Trucks, Volvo CE, Volvo Cars, Renault and Nolato.

CEO Liutauras Variakojis explains that in 2019, it was especially important for the company to diversify its manufacturing capacity. In the last year, the focus was on the search for and realization in new areas of operation. He says that the company is open to actively cooperating with companies in the Baltic Automotive Components Cluster (BACC) as well as other companies operating in Lithuania. At present, specialised cutting (shearing) and welding works are performed at the factory for companies lacking such specialised equipment for order fulfilment.

As one excellent example of such cooperation, the CEO mentions Utena-based Elameta, which belongs to the BACC. Powder coating of parts produced by Nitator-SLT is performed at the company in Utena.

As one of the distinctive features of Nitator-SLT, Variakojis draws attention to the production of hose clamps, using specialised stainless steel with rounded edges. The hose clamps are made for Volvo and Renault trucks.

Asked if employees are hard to find, the CEO says that “the Biržai area was always an agricultural region, so there are plenty of qualified employees capable of working with welding, cutting (shearing) and other specialised equipment. Employees are loyal to the company, with some having worked at the company for 15 years. For its part, the company encourages all-round employee involvement in the company’s operations.”

In 2020, the company has set the goal of remaining profitable and focusing not only on the automotive industry, but also supplying even more specialised services to clients and achieving maximal productivity.

About the company’s headquarters in Sweden. Since 1983, Nitator has been a family-owned business. The company seeks not only to preserve its roots in responsibility and tradition, but also to make use of the most up-to-date production technology available. Nitator has grown rapidly since it began to focus on contract production for the automotive industry. In Lithuania, the Nitator-SLT unit was established in 2005. The quality of its products and services is especially important to the company, as it seeks to satisfy the needs of some of the most demanding clients in the world. Nitator management emphasises the responsible attitude of employees to the highest standard of quality throughout the production process, the purpose of which is to avoid even the smallest of manufacturing defects.

Over 960 Automotive members has Society of Motor Manufacturers and Traders (SMMT) in the UK! Opportunities, Supply Chain, Networking and Investments were the topics of a very interesting discussion regarding co-operation between SMMT and Baltic Automotive Components Cluster (BACC).

Big thanks Ruta Aisthorpe, the Deputy Head of SMMT for professional input and hospitality!