Serbia: Volong Group China success case story of electrical motors production

2. February 2016. / News Serbia Energy

Orders are coming from all over the world for the electromotors produced at the north of Serbia, that are operating in the hardest conditions in the mining industry, oil platforms, shipyards,…

Year 2015 is a turning point in the operation of “ATB sever” with the turnover of 17.1 million euro. Not only is the turnover significantly larger compared to 2014, when it was 13.5 million but last year the company operated with positive results for the first time in the last 20 years. The electromotors factory managed not only to record profit but also to repay debts from the past period to suppliers, banks and partners inside the corporation.

While showing the business results of the company Milorad Vasić, director of “ATB sever” said that the company is export oriented and that 77.5 percent of the sale is made in the foreign markets. For the most part it is the region of Balkans where they place 26.5 percent of the production, then the market of European Union where they managed to return and place more than a quarter of the production, while 18 percent of electromotors go to Russia. The analysis of the products demanded by customers from “ATB sever” shows that almost half of it are motors and generators while hydro power plants make 31 percent of the production and 22 percent are intercompany motors and components.

With this success rate “ATB sever” is convinced that at the end of this year they can record the turnover of 22.1 million euro, Vasić says. At this moment they already have contracts worth half of that sum.

“ATB sever” produces motors on demand by the customer and there are only two companies in the world that are our competition in that sense, Vasić says. The development sector and production in Subotica and in daughter company FOD in Bor are capable of producing motors that will not give in even in extreme conditions. That is why “Severaši” are finding buyers all over the world especially in the industry sectors operating in specific conditions.

We made first deals with China and we are making motors for oil platforms for their market. We plan to be represented in the market of Kazakhstan and their mining industry. We already have a contract for a cement plant in Thailand and a shipyard in Singapore. We plan to win the American market, especially in Canada and South America, says Mile Todorović, head of sales.

“ATB sever” has 423 employees, out of which 29 started working last year in this factory and the plan is to hire thirty more workers. As the management of “ATB sever” says they are engaged in training their workers, so their factory is open to high school students for internship. Also they have seven students from the Faculty of technical sciences in Novi Sad who did their thesis here while three of them continued working in “ATB sever” and its development sector.

The factory lacks reliable suppliers which can fulfill the production standards. Vasić and Todorović state that today there is no foundry in Serbia which can fulfill the demands of the factory and its products, and they also lack the services for the special processing of tin, so they have to use the services in Italy which makes the production more expensive.

-We are a Serbian company, we pay taxes here and it is in our interest to develop a chain of supply companies, but there is not enough of them, says Vasić. The factory „Sever“ was bought by austrian concern A-tek for 300.000 euro in 2005 and they merged the electromotor factory from Subotica to „ATB group“. After „A-tek“ bancrupted the share in „ATB group“ was bought by Chinese „Volong group“ in 2011, transmits Serbia-energy.eu

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