The launch of a modern manufacturing line using robots, a project to build three warehouses, selling to world-famous automotive industry brands and fast-growing sales: this is the non-photoshopped everyday reality of the Marijampolė-based company CIE LT Forge and its CEO, Darius Masionis.

Tell us about the greatest challenges the company faced in 2019. What successes can the company take pride in?

In 2018 and 2019, our greatest challenge was managing the increase in production. Production volume increased significantly, compared with that of several years ago. We had an especially large number of orders and new manufacturing projects. As production volume grew, we had to seriously focus on managing that process. Our sales grew and grew, and have tripled since 2016, from 14 million euro to 45 million euro! A new crankshaft-production line, into which we invested 10 million euro and which began operating in spring 2018, contributed a lot to our especially fast growth. The startup of the new production line allowed us to triple our production capacity. We encountered another challenge, too: lack of space for storing raw materials and finished product, so last year we started a warehouse-expansion project and new construction. We can take pride in another production line modernisation project using robots, which we carried out in 2019.

What makes your company different from other companies with a similar profile?

We can offer the client a finished product, performing all necessary operations, from forging to machining. All of the parts we produce (crankshafts and parts for engines, transmissions and trucks) end up in the vehicles of world-famous manufacturers, including Audi, Renault, Fiat, Volkswagen, Skoda, Scania, Porsche and others.

What factors do you think are behind the growth of the company?

A major influence is the fact that we belong to CIE Automotive, a global group of companies having its own know-how.

We use Lean manufacturing principles in the company, and the Lean method helps us find ways to more effectively manage all our production processes. We have been working with the Lean method for several years and we invest in improving our efficiency.

What portion of production do you export? What portion stays in Lithuania?

Everything we make is exported, nothing stays in Lithuania. We work only with mass and serial production of automotive components. We have long-term contracts. Unfortunately, there simply aren’t any clients in Lithuania.

In what countries are your main partners/clients?

Our main clients are in Germany, Hungary and Poland. We also supply product to clients in Austria, Czechia, Romania, France, Italy, Sweden, the United Kingdom, Mexico and the USA.

What are the most important objectives for the company in 2020?

This year, we are concentrating on finishing the strategic projects we have already started: the construction of three warehouses and the modernisation of another production line using robots. We also plan to continue implementing Lean principles. In 2020, we plan to concentrate more on developing opportunities in IT and on social accountability.

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.

Happy to participate at the CEE Automotive Forum 2019 in Budapest. Latest data, forecast, trends and challenges, which face the automotive industry in Europe and globally. Baltic Automotive Components Cluster (BACC) has fruitful and interesting meetings with OEM and TIER1 representatives.

 

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!

Baltic Automotive Components Cluster (BACC) Executive Director Darius Lasionis with the Vice-minister of Economy and Innovation Dr. Marius Skuodis, Lithuanian commercial attache in Germany Sarune Sableviciene and Head of Business Development in Germany of Invest Lithuania Arnoldas Dapkus had more than 10 high-level meetings with the world global automotive players in 2 days at IAA2019.

Big thanks for meeting us: MAHLE, SCHAEFFLER, BROSE GROUP, ZF GROUP, LEOPOLD KOSTAL, WEBASTO, MAGNA INTERNATIONAL EUROPE, DELPHI TECHNOLOGIES.

The automotive is undergoing a profound transformation and digital transformation is fundamentally reshaping the automotive industry.

Lithuanian automotive industry is rising and takes a more and more important role in the automotive supply chain, especially in cooperation with German OEM, TIER1 companies.

BACC representatives visited Berlin, the residence of Verband der Automobilindustrie (VDA) e. V., which unites most important and powerful industries and plays a significant role to global automotive sector and economy.

The German-Lithuanian automotive collaboration is on the rise. Supply chain is ramping up as well as German investments in Lithuania!

Great discussions with MD Dr. Martin Koers about further collaboration, threats, possibilities and global situation of the automotive industry.

Special thanks for Lithuanian embassy and Invest Lithuania.

BACC representatives spent an efficient day in Italy, Turin, together with ambassador of Lithuania Mr. Ričardas ŠLEPAVIČIUS. Great discussions with Italian experts about potential co-operation of Lithuanian-Italian engineering industries and automotive supply chain.

 

BACC representatives visited McLaren Automotive to discuss possible cooperation and supply chain opportunities for Baltic Automotive Components Cluster.

Special thanks for an outstanding tour at McLaren Technology Center. 

 

The purpose of the visit was to scout and meet potential Lithuanian suppliers. Baltic Automotive components cluster BACC was a partner of this visit which provided the information about potential Lithuanian as well as Latvian and Estonian companies and helped to arrange all meetings. Several companies producing stamped parts have been selected as very promising.

Lithuanian companies took part in the largest OE-only supply chain show in Stuttgart, exhibition “Global automotive components and suppliers expo” on 5-7 June 2018 for the fifth time. The expo featured over 350 exhibiting component suppliers: international representations, pavilions and specialist components manufacturers gathered from as far afield as Korea, China, Thailand, India, Greece, Hungary, Portugal, UK and USA, making the event a truly global supplier-sourcing opportunity in one compact location. Together with other participants, Lithuanian companies also presented their latest technologies, designs and services of the automotive component industry to an audience of approximately 12000 international and local visitors.