Presentation on theme: "Herzlich Willkommen! Carthago mit Carthago in die Zukunft"— Presentation transcript:
1Herzlich Willkommen! Carthago . . . mit Carthago in die Zukunft Ladies and Gentlemen, my name is Matjaž Kekec and I am very happy to be here with you today. What I'd like to present you is a real success story of an upmarket german (as you see on the slide) brand of luxury motorhomes. So CARTHAGO calls you Welcome in the future.
2CASE: Carthago Proizvodnja avtodomov d.o.o. Total planned investment: ,00 EurState subsidy funds: ,00 EurNr. Of new employment: 150Production of Chic C line modelSlide 7
3Die Chic FamilieThe basic idea was to launch a compact model line in complement to the original Carthago motorhome model line of the highest price level. Just like Mercedes-Benz did it with the A-class, Carthago decided to create Chic-series of compact motorhomes. As none of the two german sites was apt to take this challenge, due to lack of skilled and qualified workforce, which is above all very expensive, Carthago decided to go greenfield and build another factory outside Germany. The chosen land was Slovenia, the chosen place was Odranci in the north-eastern Prekmurje region.
4Goals and benefits for Carthago Odranci, Slovenia = Carthago’s 3rd production siteTo increase the market share by creating production capacities for a new compact product lineone of few, increasing output during recessionReduction of manufacturing costsAccess to a large pool of highly skilled and educated manpowerBenefit on local community supportPotential for further developmenthigh manpower potentialavailable landTo increase the market share by creating production capacities for a new compact product line, which proved to be an excellent idea. Today, Carthago is one of few, increasing output during recessionReduction of manufacturing costsAccess to a large pool of highly skilled and well educated manpowerBenefit on local community supportPotential for further development and expansion as there is a high manpower potential and lots of available land
5Investment implementation Challenges:Fulfillment of the obligation to employ 150 persons in 3 years after receiving the subsidy (as the result of late start with production)SupportNational cost sharing grant scheme – Ministry of the EconomyLocal community supportRegional development agency MuraEmployment service Murska SobotaWell, Slovenia is not the one country that would immediately raise your attention. It's a small country squeezed between Austria, Italy and Hungary, with an excellent education level of its workforce, excellent infrastructure, but not necessarily the cheapest one. What the state provides, however, is the following: Incentives for every direct foreign investment, incentives for employment (especially for the persns difficult to employ), tailored and free training programs. Specialty for the Prekmurje region is a new law which provides even further incentives, as the state has decided to develop this region in a faster rhythm than the rest of the country
6Important elements for successful launch Preparation of the project (CARTHAGO’s case: 1 year)Selection of highly motivated initial employeesPreparation and training of employees25 employees were trained at the HQ, GermanySurveillance and support for employees in the first days of their start-upSelection of the employees to followcriteria: experience and labor disciplineNow here you can see what is essential for such a project to succeed
7Present stand of operation Production of 700 vehicles planned for 201035 % of total production output of Carthago Group150 employees reachedEnlargement in planning phaseOn this graph, you can see how fast the total output of Carthago rises (in spite of the less pleasant times since 2008) and how high the contribution of Slovenian site is (blue)
8Increasing production / output tendency This output tendency is impressive, isn't it? And it's getting higher in spite of the fact that the market for such vehicles has shrunk for 50%. But the new Carthago Chic line made in Slovenia offers a much better value for money, which is always the best possible weapon in case of the crisis
9Local PayrollFrom 0 to 140, and we intend to go further up in the near future...
10Payroll – CARTHAGO Group Today the Carthago Group has more than 430 employees at 3 sites...but, as you can see, employment at Carthago grows even outside Slovenia due to a very favourable tendency of sales volumes
11Benefits for the Pomurje region 150 new employmentsDevelopment of sub-contracting activity in the regionHigher added value: product development done by local engineersSynergies with the local communitySo Carthago made a good choice. Was his choice also good for the slovenian region where he settled down? Yes definitely and here you can see why: Prekmurje region got - 150 new employments- Several sub-contractors who moved or were created locally- Higher added value: product development is mostly done by local engineers- There are superb win-win synergies with the local community
12Project 2 = Second investment project – new vehicle model What’s next?Project 2 = Second investment project – new vehicle modelGoal: to double again the production capacityTotal planned investment: ,00 EurBuildingEquipment, machinesState subsidy: 30%Carthago will run on two calls for grant funds exploitingthe new Law of POMURJE:Employment subvention, tax exemptionforeign investment incentivesState co-financingSo, what's next? Carthago will go further and, as the first part of the story has been a success, let's add another one.
13Increase the output rhythm to 24 vehicles a week by the end of 2010 Project 2: objectivesIncrease the output rhythm to 24 vehicles a week by the end of 2010Increase the production rhythm to 45 by 2012Increase total employment on 260...and further beyond, the ambitions are high. We at Carthago certainly don't regret the decision to have invested in Odranci888