Improving the production capacity and competitiveness of Elegance Mebel LTD

The candidate "Elegance Mebel" Ltd. is one of the leading and successful companies in the town of Troyan. It is specialized in the traditional production of high quality solid wood furniture (pine, lime, beech, cherry, ash and oak) for the needs of the national as well as the foreign markets. The candidate is certified under the ISO 14001 Environmental Management System and is currently implementing grant contracts from the Operational Program "Innovation and Competitiveness" under the Local Action Group - Troyan, Apriltsi, Ugyrchin and Support for Pilot and Demonstration Actions for Resource Efficiency. The present project proposal has as its main objective the improvement of the production capacity, competitiveness and hence the export potential of ELEGANCE MEBEL. To achieve this goal, the applicant plans to purchase and bring into operation advanced high-tech production equipment including a five-axis processing center with numerical control, a four-spindle milling machine with 6 spindles and electronic control, as well as a wood waste crusher. On this basis, the project will be implemented in the thematic sub-area "Systems for Automated and Software Assisted Managing with Application in Manufacturing" of the thematic area "Mechatronics and Clean Technologies" of the Innovation Strategy for Smart Specialization. The implementation of this equipment will allow automation and improvement of the production process of solid wood furniture. Reduced unattractive manual labor and unit production costs. It will improve the quality of the furniture produced and hence the competitor's competitiveness. The main expected financial results from the implementation of the project are: - Internal Rate of Return - 15.92%; - Increased net sales revenue / total project cost 67.09%; - Increased business productivity 33.29%; - Changed average revenue generated from exports as a result of the investment in the project 25.07%.

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