Increasing the production capacity through improving the production processes in AS Engineering Ltd.

AS Engineering Ltd. is a successor company of a state- owned company which in 1999 was privatized and became sole property of Metalik 97 Plc. The company specializes in the manufacture of metal works and agricultural machinery. The company also provides the following services: argon welding, cutting billets, laser cutting and other industrial services. A third of the production is intended for export, mainly to Italy, the export is executed by ‘Metalik 97’ Plc., a sole owner of the capital of the company. The main export consists of lawnmowers, carriages, rotors, metal cases and spare parts for lawnmowers and snow- ploughs. The production for the domestic market is metal details and non- standard equipment and customers’ special orders, services such as welding and detail cutting. In the last three years despite the investment activity, it is noticeable that the potential for growth is exhausted. This is due to the maximum workload on the existing machinery which does not allow acceptance of new orders from regular and new customers. At the same time the main clients in Italy: ORSI GRUP and OFFICINE MECCANICHE CHIOLINI, as well as the main Bulgarian client Berko Bulgaria Ltd., satisfied by the quality and prices of the products, insist on increasing the orders. ‘AS Engineering’ Ltd. intends to emerge straight on the international market expecting to reach export in the amount of 1.4 million BGN a year in the next 5 years. In order to provide sustainable development to the company, its management plans to invest in new equipment including a laser fiber cutting machine and an abkant press. With this new equipment the company will improve the production process and will introduce new technologies for improving the recourse efficiency and the production process efficiency. The new equipment will increase the company’s production capacity and this will lead to 4,136 million BGN income from sales in 2019.

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Overview

Status Closed (completion date)
Start date 20 Jun, 2016
End date 06 Apr, 2017
Contract date 20 Jun, 2016
View in UMIS

Financial information

Total cost 1,370,060.00
Grant 822,036.00
Self finance 548,024.00
Total paid 821,400.00
EU participation percent 85.0%

Location