Investment in modern equipment to improve the production capacity of electrical welding network in Draat Handel

The main object of the project is improving our competitiveness through in modern and highly efficient line for electrical welding network. With the project implementation we will be able to overcome the main limitation of Draat Handel, namely our inability to take advantage of the stability demand for our products and to meet the high requirements of our clients in terms of production time, quality and variety of the products. To overcome these weaknesses we need to enhance our production capacity by purchasing a line for electrical welding network with digital control. After the investment we will improve the production process. We will achieve complete automation of processes and high efficiency in the processing of raw materials, as well as of different diameters, that we can't produce now. This will allow us continuity of the whole production cycle, minimizing the adjustment of the available machines. The production capacity of the company will rise average by 100% and the production volume will increase average by 70 % for two years after project completion. We will achieve improvement of product quality. The technological characteristics of the new line will provide high precision cutting, automation of bending, production of long and short series of the same high quality. We will begin to produce and market new varieties in the product group of the electrical welding network, and we will be able to meet the current customer requirements. The complete automation of the production process will result in a reduction in the raw materials used and the consumption of electricity for the production of a unit of the product. The cost per unit of product will be reduced by 10%. The above described will enable us to increase sales and market share and to start export. We expect our sales revenues to increase average by 40 % for two years after project implementation. We forecast that we start to export in the EU.

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Overview

Status Closed (completion date)
Start date 15 Dec, 2020
End date 15 Dec, 2021
Contract date 15 Dec, 2020
View in UMIS

Beneficiary

Financial information

Total cost 680,000.00
Grant 476,000.00
Self finance 204,000.00
Total paid 0.00
EU participation percent 85.0%

Location