Market knowledge has helped an automotive supplier secure its place in the supply chain
Precision metal pressings manufacturer Clamason Industries, based in the West Midlands, is forging ahead in Eastern Europe.
From humble beginnings in the late 1940s, the company has grown leading manufacturer of precision pressings. Founded by the father of current managing director Philip Clarke, Clamason makes housings for car audio, airbag inflators and engine control units, as well as casing for domestic products.
This flexible approach came into play again as the company looked to expand into the thriving automotive market in Eastern Europe.
Tapping into UK Trade & Investment's network, Clamason took part in an automotive suppliers'
Exhibition in Bratislava in May 2006. A further visit to Autoforum in Wroclaw, Poland, in October 2006 provided an opportunity to make further contacts. The company also commissioned a report on the automotive sector in Central Europe.
"Ever since Volkswagen arrived in Slovakia in 1991, a strong automotive base has emerged”, explained Richard Beams, head of trade and investment at the British Embassy in Bratislava. "This has been strengthened with the recent arrival of Peugeot and Hyundai-Kia. By 2010, Slovakia is expected to produce one million cars per year, securing its position as the world's largest producer of cars per capita.
"Through UK Trade & Investment’s services we are able to assist companies such as Clamason in their journey to market."
Clamason is a second tier automotive supplier - it does not supply the carmakers direct, but sells to their suppliers. The motor industry is based on a 'just-in-time' supply chain. So tier-one suppliers often locate around the vehicle plant and expect their suppliers to do the same.
Research showed an automotive supply cluster around Nitra, a growing industrial town on the motorway network 80km east of Bratislava. The town is between Clamason's existing automotive first-tier customers, Delphi in Hungary and TRW in Poland. It is also well placed for servicing other
Customers like home entertainment giants Sony and Panasonic, and white-goods manufacturers lndesit and Whirlpool.
Clamason has now opened a 1,000sqm satellite factory in Nitra.
"Contrary to common perception, instead of exporting jobs from the UK the new business is safeguarding work at our Kingswinford site by winning new orders that would not be given to a stand-alone UK manufacturer," said Philip. "We are actually increasing the UK workforce.
'At Kingswinford, we can make pressed metal components automatically as cheaply as anywhere in the world, because our processes are not labour intensive. Parts manufactured in the UK can be shipped to Nitra in flat-pack form for more labour-intensive operations – such as wielding and assembly work.”
With his experience in Slovakia, Philip is finding other companies are seeking his advice.
"Philip always keeps us informed of his progress and our relationship is by no means one-way,” added Richard. “He now finds himself being asked the same questions he once posed."