Transcript Slide 1

Televic Rail
VOKA Mechelen
11/03/2015
Televic Rail Global presence
Creating value at the right place, closest to our customers
around the world
TELEVIC RAIL
LCCS
LOCAL JVs
Belgium
TLV BG
KAT
PTCS
Bulgaria
China
India
FOCUS
• EU Production
• Cabling
• Off shore R&D
FOCUS
•
•
•
•
•
Sales & Project Mngt
New Technology Innovation
Platform Development
New Product Introduction
EU After Sales
Televic Asia
Shanghai
China
Televic Rail
HQ
Izegem
Televic BG
Production
Plovdiv
PTCS
Joint venture
New Delhi - Noida
KAT
JV
Changzhou
Why Bulgaria ? View 2000
Turnover growth in year 2000
•
•
=> make or buy ?
Manufacturing & Procurement
•
•
BULGARIA
BELGIUM
ASIA
Volume
NPI
Local market
•
•
•
People
Former electronics industry in
Plovdiv
Significant labor cost
advantage
Stable currency linked to
Deutsche mark
In contact with local manager
Low start-up investment
Stability?
Plovdiv Bulgaria
3500m²
Why Bulgaria ? View today
•
•
•
•
•
•
10% corporate tax rate (flat rate)
R&D possibilities
Bulgaria in EU: customs, duties,…
Distance (compared to Asia LCCS)
Logistics (cost is manageable)
Language
Why Bulgaria ? View today
•
Still significant labor cost advantage
Our experience - People
•
Managers:
– Highly educated: languages, skills,…
– No “modern” management experience (2000 – 2010)
•
Engineering:
– High technical skills
– Always looking for opportunities
•
Workers:
– Flexible & focused
– Quality minded
•
Authorities:
– Open for foreign investors
– Corruption?
Our experience - Production
•
•
•
•
•
•
•
Very open and motivated to learn
Productivity slightly lower than Belgium (supervisor)
Flexible (overtime,…)
Holiday compensation on Saturdays
Quality levels reached from the beginning
Salary has high priority
Mobility
Our experience – Sourcing &
logistics
•
•
•
•
•
•
•
•
Good local transport companies (road transport ;
railway / boat not so good)
No chain of (industrial) subcontractors
Local distributors only starting now
Packaging, copper,…
No more EUR1 needed
Norms (EN/DIN/GOST/…)
Avoid traders
ERP
Our experience - Construction
•
•
•
•
•
•
•
•
•
Rental contracts – contractual value ?
Price land: 10…75€/m² (Plovdiv area)
Agricultural land but change of destination possible?
Belgium construction company with local branch.
More papers & permits then in Belgium (language).
Planning under control (act 16?).
Cost building same as Belgium
Local subcontractors?
Electricity?
Televic BG 2007 - Plovdiv
Tips and tricks
•
•
DO
–
–
–
–
Consult with local people (not only Sofia)
Look for a good local team you can trust
Show confidence and determination
Respect local culture (proud)
DON’T
– Enter in corruptive practices (never!)
– Enter into conflicts with the administration
• Discuss + convince
• Build trust
• Be patient
Culture...
Culture...
Culture...