Termovent-komerc to open new plant in Kladovo on January 15th - Production capacity to go up over 50 percent

(Termovent-komerc's new production plant in Kladovo)

Belgrade-based Termovent-komerc, which specialized in designing, producing and assembling HVAC equipment, is going to open a new production plant in Kladovo Industrial Zone on January 15th. Termovent has recently bought a production facility with most of the technology and land from Austria's Huber-GmbH, and an additional investment is expected to boost the production capacity of the company from Belgrade by more than 50 percent.

- Development of Termovent-komerc, both in terms of the commercialization of new products and the growth of exports to the EU, has forced us to expand our existing production capacity - Andrija Perovic, CEO of Termovent-komerc, says in a talk with eKapija.

- We could have either built a new plant in our location in Kladovo or bought a production facility from Huber. Considering that Huber's facility is already significantly equipped with infrastructure, we assessed that our production would start much earlier if housed in that facility than if we waited for the completion of our new plant.

This production facility with an annex floor spans about 2,320 square meters, and the base price that Termovent-komerc paid to Huber for the facility with associated infrastructure and some of the technology is EUR 380,000. The factory was bought unfinished, and Termovent then had it completely reorganized to fit the needs of its own production.

- Funds from our own resources have been spent on access roads, facade on the lower part of the facility, huge parking spaces for trucks and vehicles, loading ramps, office equipment and ongoing preparation of a high-quality laboratory for testing switchboards. We have also bought certain number of CMC machines made in Italy. Their installation is now underway. With all this, our production will really be raised to a significant technological level, which will boost our productivity and increase the quality and price of products.

(this is how the plant once looked)

As the CEO of Termovent-komerc noted, this company has been increasing its production at the average rate of 20-30 percent annually over the past few years.

- Given that we have already sold over 70 percent of projected production volume for 2013, we expect our production to grow by minimum 50 percent with new plants, hirings and technological equipment.

According to Mr. Perovic, production in the new facility started as early as in late December, but the plant will be officially opened January 15th. Termovent-komerc hired more than 10 executors in 2012, whereas the plan for 2013 is to employ minimum 20 new workers.

As Perovic said, this new plant has come at the right moment because Termovent-komerc signed a new agreement in late December with Pfizer, the world's largest pharmaceutical corporation.

Besides, the opening of a new production plant may also lead to the establishment of a business cooperation with companies across Europe and the world, our interlocutor stressed.

- The location of our new production facility, which is situated in an area bordering two members of the EU (Romania and Bulgaria) and in the vicinity of Russia, is very attractive - said Perovic.

- Intensive negotiations on the establishment of joint ventures and joint production of equipment for the markets of Russia, surrounding countries and the EU are already underway with several large companies whose product portfolio is similar to ours.

Termovent-komerc's existing plant is also situated in Kladovo. In early 2013, as soon as the production at the new plant reaches the expected level, the company's old plant will be turned into a customs warehouse.

Huber

Austria's Huber bought the land in Kladovo Industrial Zone six years ago, but their business in Serbia has never reached the level they desired.

When asked if they considered taking over the Austrian company, Perovic said that they had given up that option because that company had been left without staff in the meantime and nobody had known for sure how big their liabilities were. Therefore, Termovent-komerc decided to buy only the production facility with most of the technology and infrastructure.