Thursday, 17th January 2013, Velenje, Slovenia

Gorenje Orodjarna completes an extensive technological upgrade of manufacturing equipment

Investment into three new machines for improved competitiveness and new commissions

Gorenje's toolmaking subsidiary Gorenje Orodjarna completed last year an extensive update of production technology. The company invested in three new machines: a high-speed three-axis vertical CNC milling machine, an electric discharge ("wire erosion") machine, and a five-axis vertical CNC milling machine. The new machinery has already provided a boost to their competitiveness as their productivity was improved by 8% last year and cost of cooperation with other providers were halved compared to 2011. Moreover, the revised equipment will allow them to take new commissions, including those from the aerospace industry. Total investment in new machinery exceeds EUR 900,000.

Customer requirements in development and manufacturing of industrial tools are increasingly complex and in order to meet them, Gorenje Orodjarna made three major investments into technological equipment last year. The key addition to the line-up was the five-axis vertical CNC milling machine that will considerably cut the production time for the most geometrically challenging tools and improve the accuracy of the make. In addition, this machine has opened up opportunities to win commissions form the aerospace industry with which Gorenje Orodjarna has not worked yet.

Managing director of Gorenje Orodjarna Mr. Blaž Nardin commented upon the presentation of the new investments: »Last year, we accomplished our targets for revenue and profitability, as well as completed an extensive overhaul of our technological equipment to set the foundations for successful development of Gorenje Orodjarna in the future. Investment into development of new technology and knowledge are the keys to maintaining our competitiveness in the market.«

This year will be less intensive for the company as far as investment is concerned. They will carry on their development projects aimed at improving productivity and optimizing the costs. Two of the major projects this year include automation of tool making and zero-scrap tool making. Mr. Nardin: »These are projects geared towards improvement o productivity by further 10 to 15 percent and reducing costs of material and services by 5 to 10 percent in this year, which will improve our profits.«

Gorenje Orodjarna has 212 employees; Gorenje is its sole owner. It is the second largest tool making company in Slovenia and one of the major ones in the region. Its sales revenue amounted to EUR 12.4 million last year. As much as 65 percent of revenue is generated with tools for automotive industry where they work directly with major car manufacturers and major international suppliers. The remaining 35 percent of revenue is generated in cooperation with the Gorenje Group companies.

Gorenje Orodjarna is a major partner for Gorenje and their core activity of home products in the field of development and production of the most complex tools, particularly sheet metal shaping tools and measurement systems.