Televic Rail VOKA Mechelen 11/03/2015
Televic Rail Global presence TLV BG Bulgaria TLV BG Bulgaria KAT China KAT China PTCS India PTCS India TELEVIC RAIL Belgium TELEVIC RAIL Belgium Creating value at the right place, closest to our customers around the world LCCSLOCAL JVs FOCUS Sales & Project Mngt New Technology Innovation Platform Development New Product Introduction EU After Sales FOCUS EU Production Cabling Off shore R&D
KAT JV Changzhou Televic BG Production Plovdiv PTCS Joint venture New Delhi - Noida Televic Rail HQ Izegem Televic Asia Shanghai China
Why Bulgaria ? View 2000 People Former electronics industry in Plovdiv Significant labor cost advantage Stable currency linked to Deutsche mark In contact with local manager Low start-up investment Stability? Manufacturing & Procurement BULGARIA BELGIUMASIA Volume NPILocal market Turnover growth in year 2000 => make or buy ?
Plovdiv Bulgaria 3500m²
Why Bulgaria ? View today 10% corporate tax rate (flat rate) R&D possibilities Bulgaria in EU: customs, duties,… Distance (compared to Asia LCCS) Logistics (cost is manageable) Language
Why Bulgaria ? View today Still significant labor cost advantage
Our experience - People Managers: –Highly educated: languages, skills,… –No “modern” management experience (2000 – 2010) Engineering: –High technical skills –Always looking for opportunities Workers: –Flexible & focused –Quality minded Authorities: –Open for foreign investors –Corruption?
Our experience - Production Very open and motivated to learn Productivity slightly lower than Belgium (supervisor) Flexible (overtime,…) Holiday compensation on Saturdays Quality levels reached from the beginning Salary has high priority Mobility
Our experience – Sourcing & logistics Good local transport companies (road transport ; railway / boat not so good) No chain of (industrial) subcontractors Local distributors only starting now Packaging, copper,… No more EUR1 needed Norms (EN/DIN/GOST/…) Avoid traders ERP
Our experience - Construction Rental contracts – contractual value ? Price land: 10…75€/m² (Plovdiv area) Agricultural land but change of destination possible? Belgium construction company with local branch. More papers & permits then in Belgium (language). Planning under control (act 16?). Cost building same as Belgium Local subcontractors? Electricity? Televic BG Plovdiv
Tips and tricks DO –Consult with local people (not only Sofia) –Look for a good local team you can trust –Show confidence and determination –Respect local culture (proud) DON’T –Enter in corruptive practices (never!) –Enter into conflicts with the administration Discuss + convince Build trust Be patient
Culture...