Improvement of the production capacity of Willam Hughes Bulgaria Ltd.

The main activity of the company is the production of springs, products from bent wire and others for the automobile industry. A serious problem for parts, assembled into automobiles, is the effect of the environment and various chemicals containing salt, used for treating roads, to which the automobiles are exposed. The result of these effects is the appearance of corrosion. The Project of William Hughes includes the purchase of a machine for painting an anti-corrosion coating on the parts and components. Currently, the company has a second-hand used machine, which does not provide the required quality of the paint-coating. The treated with the machine parts endure the effects of the external environment between 24-48 hours(under test conditions) for the outside parts, while the required by the clients endurance time is 800–1000 hours. With the existing machine, the company cannot cover the requirements of the clients and even in some cases has to decline orders. In this way, the company becomes uncompetitive. There is an option to outsource this service in Romania, but this is not economically feasible for William Hughes, because of the high transport costs. This would increase the final prices of the products, which is unacceptable for the clients of the company. They would stop to purchase parts from William Hughes, which on the other hand could not work at a loss. Gradually, the company would not only start to lose old clients, but would also not be capable to attract new ones, to enter new markets, nor to expand its sales. It would lose its gained momentum, there would be a drop in sales and worsening of the economic condition and competitiveness of the company. With the realization of the project and the implementation of the machine, the company would increase its productivity, would increase the quality of the manufactured products by increasing their durability and life-span, would cover the requirements of the market and would expand its market positions.

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