The leader in the production of parts for the world’s largest companies in the automotive industry, TMD Group from Gradačac, despite the global crisis due to the COVID-19 pandemic, expects the same level of revenue as in 2019 and plans to acquire new customers in the EU.
According to Adem Hanic, CEO of TMD Group from Gradacac, they are currently trying to take the opportunity to restructure global supply chains and take over additional markets, which before the crisis caused by the COVID-19 pandemic were covered by suppliers from Asia.
“In October 2020, we expect confirmation of positive trends, on the basis of which the investment cycle will be restarted, and which refers to new products and customers. We are continuously working on the preparation of the expansion of existing capacities, considering that there will be a relocation of supply chains from China and India, that is, after the end of the COVID-19 pandemic, there will be increased demand in Europe “, says the director of TMD Group.
New projects in preparation
Although TMD Group started significant investments in 2019, they are currently halted, except for investments in Croatia.
“Investing in Croatia represents a significant step forward for us in terms of expanding business activities, because in this way we will have production in the EU. Although we have stopped investments in BiH and slowed down investments in Croatia, it is important to point out that we are continuously preparing investments in equipment for new development projects, “Hanić pointed out.
At the start of the crisis caused by the COVID-19 pandemic, the TMD Group recognized the need to develop domestically produced fans and is currently finalizing the sending of prototypes for testing by a licensed laboratory in the UK.
“Apart from traditional industrial solutions, TMD Group has invested in resources to be ready to participate in supply chains for the new generation of electric vehicles, which has resulted in cooperation with Mitsubishi and the production of parts for electric motors,” Hanić emphasizes.
TMD Group has since established in 2004 continuously expanding network of clients and established a close cooperation with leading customers representing OEMs such as Schaeffler, SKF, NTN / SNR, Bentler, Hoeribeger, Ducatti, BSP, Mahle Electricity, Van Leeuwen Pipe and Tube Group and others.
“We are well on our way to signing a contract with Magna, and through our partners we deliver products for the first installation for the world’s leading brands: VW, Volvo, Renault, PSA, Mercedes-Benz, Mitsubishi, Bosch, etc.,” claims Hanić.
TMD Group in its range offers metal products and solutions for their production, through the application of various advanced forging and machining technologies.
“These metal products have a variety of industrial applications and are used in the first installation or aftermarket sales in the freight segment, ie, trucks, trains, passenger cars and industrial machinery,” explains Hanić.
Global companys competite with them
Because it primarily exports its products to demanding EU markets, the TMD Group is directly exposed to global trends and trends.
“Our competition is not companies from BiH and we are fighting for market participation with companies from all over the world. The key factor in maintaining our leadership position is customer orientation and product delivery in the required quality and quantity. The fact that we continuously receive the highest ratings from customers and maintain the rating in the class of the best supplier, allows us to maintain competitiveness, which is reflected in the fact that we are a leader in our segment in the region, “said TMD Group director.
Even before the outbreak of the COVID-19 pandemic, TMD Group launched activities related to optimizing business activities, reducing costs and stopping certain investments.
“The drop in revenue of over 20 percent, which occurred as a result of COVID-19, was controlled and, most importantly, we managed to maintain the economic stability of business and continuous production. We expect to reach the level of production we had in 2019 in 2020, when we generated revenue of 103 million KM, which is a drop of ten percent compared to 2018 and is the result of negative trends in the global automotive industry in recent years, “he said. Hanic.