2004-10-26 leax group in latvia jan geier, vice president “the day we stop getting better is the...
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2004-10-26
LEAX Group in LatviaJan Geier, Vice President
“The day we stop getting better is the day we stop being good“
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2004-10-26
LEAX Group
LEAX Mekaniska115 Em pl
170 MSEK
Q Control14 Em pl
12 MSEK
GenerPro90 Em pl
75 MSEK
LEAX Baltix40 Em pl
20 MSEK
LEAX Group AB
275 MSEK turn over250 Employees
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2004-10-26
LEAX Group Mission
• We are a leading service provider of mechanical and electromechanical solutions for – Commercial Vehicles & Automotive – Electromechanical & Power generation – Construction and Mining industries
• We provide– Flexible machining– Assembly and testing of subsystems– Services in Quality, Environmental & Business solutions
• We focus on– Customer satisfaction– Innovative business solutions– Technical know how – Agile processes– Lean enterprise – Empowered employees
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2004-10-26
Our productsShafts Gears
Rock Drill Components
Pre assembled products
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2004-10-26
Köping
Västerås
Riga
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2004-10-26
History – LEAX Group
• Started in 1982• 10 MSEK 1992• Acquisitions in
1995 och 2000• ISO/TS 2003• Average growth 35
%0
50
100
150
200
250
300
350
400
1996 1999 2002 2005
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2004-10-26
Markets and Customers
• Customer segments– Automotive & CVS– Electromechanical
industry & Power generation
– Construction & Mining industry
• Markets– Sweden, Europe, Japan,
USA
• “Client- Co-operation ”– One stop shopping– Design support
39%
41%
16%4%
Automotive Electro mech
Construction Other
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2004-10-26
LEAX Baltix
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2004-10-26
History – LEAX Baltix
1998 • Analysis of production capacity in Baltic
States1999-2000• First supplier audits and test orders2001• Founding of SIA LEAX Baltix
• Trading and Consultancy
2002• First serial volume contracts• Purchase of land and building
(12000m2 / 2700m2)• First employments of production
personnel2003• Own production starts
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2004-10-26
Reasons for investment
• Global sourcing from our customers– China/India– Eastern Europe
• Extensive price pressure• (Problems finding skilled work
force in Sweden)• Very small local market
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2004-10-26
Latvia
• Big differences in salaries– Management 50-60 %– Workers 15-25 %
• High growth, especially in Riga region• Recruitment of production personnel has been
fairly easy• Management is a key issue
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2004-10-26
Latvian Culture
• Corruption exists, but has not been a problem for us– Choose your partners
• “Russian” business culture – A lost generation– Quotations– Pricing
• Financing and banks
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2004-10-26
Method
• ”Compatible” work shop• Purchase of machines in Sweden • Start up of production in Sweden
– Latvian personnel in Köping (work permits!)
• Swedish management• Sales (and customer contact) from
Sweden
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2004-10-26
LEAX Baltix
• Trading center • Machining• Manual assembly
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2004-10-26
Owner structure
• LEAX Group 66,5 %• Swedfund 24,5 %• Local partners 9,0 %
• Swedfund was contacted to provide external risk capital to make a faster expansion possible
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2004-10-26
LEAX Baltix – Present situation
• Rapid growth• Profitable since September
2003• Several new orders taken
and quotation backlog is impressive
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2004-10-26
LEAX Baltix – Facts & Figures
• Forecast 2005– Turn over 70 MSEK– Profit 5 MSEK– No of employees 65-70
• Plan 2008– Turn over– Profit– No of employees
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2004-10-26
Reasons why we have succeeded
• Good planning• Training of all personnel in Sweden• Persistent management• Integration of core values and local
cultures (Swedish vs. Latvian)• Management skills in language• “Problem solving ability”
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2004-10-26
Expansion i Riga
Business Parkwith attractivelocation