Mind Bending Manufacturing
When ITT decided to launch its Motion Technologies business in CEE, Ostrava was chosen as the ideal location because of its competitive mix of skilled labour, cost benefits and proximity to clients and suppliers in Europe. CTP, as the market leader in Ostrava, was the company’s natural choice to deliver a 24,700 m2 custom-built manufacturing centre—later extended by 4,700 m2—for ITT Automotive’s Friction division to launch production of brake pads for automobile manufacturers across Europe. A year later, based on the rapid success of the new plant, the company expanded operations and launched a second division for its KONI-branded shock absorbers for the railways industry—a decision that was not part of the original plan for Ostrava. Because of the success of both business lines, ITT’s site at CTPark Ostrava has grown quickly to become a major centre for the company’s European operations. While R&D within the company continues to be centralised in Italy (brake pads) and the Netherlands (shock absorbers), more and more competencies are being delegated to Ostrava. Both divisions operate fully equipped, state-of-the-art testing and quality control centres for incoming supplies, process control and final output inspection. From an initial employee base of around 200 employees at the end of 2009, ITT now employs over 600 people at CTPark Ostrava. To give a further idea of the scale of ITT’s business activities in Ostrava—as well as its rapid growth—brake pad output has grown from six million units in 2009 to 27.5 million in 2013. According to Cesare Savini, ITT Czech Republic General Manager and Friction After-Market Director, the company is on target to reach 30 million units in 2014. The KONI shock absorber division is currently producing 80,000 units a year, and the business continues to grow. Output from this separate business line is delivered to ITT customers in the railways sector worldwide. Success at ITT’s Ostrava site is not measured only by output figures. As Mr. Savini explains, the skill level and work ethic among ITT’s Czech team has meant that the company is able to hire locally to cover all necessary positions. Not only this, the Czech team has now become a role model for best practices within the company as a whole. “The vision I had when I came to Ostrava was,‘Turn the trend: from trainee to trainer’ and to make Ostrava the center of excellence for the entire ITT Motion Technologies, by developing and applying best practices to be taught to colleagues coming to Ostrava from different sites for training. Well, after these four years, I am proud to say: mission accomplished. Thanks to our extraordinary performance we have become the benchmark for other ITT MT sites, and this makes me proud.”
In 2009, ITT Motion Technologies— part of the US-based ITT Corporation —launched its first site in Central & Eastern Europe (CEE) at CTPark Ostrava. Business has grown rapidly, and Ostrava has become the most important multi-business site within ITT Motion Technologies and is a major contributor to company success.
In 2009, ITT Motion Technologies— part of the US-based ITT Corporation —launched its first site in Central & Eastern Europe (CEE) at CTPark Ostrava. Business has grown rapidly, and Ostrava has become the most important multi-business site within ITT Motion Technologies and is a major contributor to company success.
Brembo launched its custom-built CTFit light manufacturing facility at CTPark Ostrava in 2011 to produce braking components for luxury and mid-market automobile manufacturers in central and northern Europe. Since operations began, the company has won several new clients, including Land Rover, BMW, GM, Audi and Mercedes-Benz. Brembo’s facility at CTPark Ostrava is a completely new investment for the company to expand capacity and reach new customers and is not a reallocation of an existing plant from Western Europe. Investment in the new facility is expected to reach €35 mil. Brembo is targeting annual turnover of €55 mil. by 2013. Thus far, the company reports that customer demand has exceeded initial forecasts. Brembo chose to locate its new business in the Czech Republic for many reasons, including proximity to its target customers, a young and well-educated workforce and modern infrastructure. CTPark Ostrava provides ideal location for Brembo to service the well established and growing automotive industry in Central Europe
Brembo is among the world’s largest manufacturers of braking systems for automobiles and motorcycles.
Brembo is among the world’s largest manufacturers of braking systems for automobiles and motorcycles.
Swedish furniture maker BJS has been a key supplier to IKEA for over 30 years and produces a wide range wooden bed frames and other products for the Swedish retailer. As part of its strategy to reduce costs and boost growth, BJS launched operations at CTPark Humpolec in 2006. BJS was drawn to the Czech Republic because of its combination of low-costs, highly skilled labour, excellent infrastructure, and strategic location. The company knew that they did not want to purchase their own facility in the Czech Republic, as this would be too costly. So they turned to CTP for the solution. “We wanted to be able to focus on our core business and not lose sleep over the development of the project. The whole idea of expansion was for BJS to get ‘lean and mean’,” Pär Lidåker, CEO of BJS, explains. “All of the other properties we looked at were ugly, but at CTPark Humpolec, we found the right place. Location directly on the motorway is also, of course, an advantage.” BJS’s business has grown since launching operations at CTPark Humpolec. In 2012, the company signed for a 7,000 m2 extension to their production facility. CTP completed construction in less than five months. BJS plans to relocate production from Slovakia as part of its strategy to consolidate operations at its expanded production facility at CTPark Humpolec. BJS’s entire output from CTPark Humpolec is production for IKEA. CTP custom built BJS’s CTFit production space at CTPark Humpolec with special fire-resistant walls, which was essential to allow BJS to safely store wooden materials. BJS’s production hall also features a fully open floor plan with no columns that would obstruct the installation of machines. “We are very happy with the building,” Mr Lidåker explains. With the new extension to its production hall in place, BJS will be able to cut and drill wooden furniture components themselves, which streamlines production and brings added cost benefits. BJS will install a brandnew prototype of a next-generation cutting machine at its expanded production hall in CTPark Humpolec, which reduces waste and helps further cut down costs. Within three years, BJS expects to be running three production shifts, 24/7.
BJS is one Europe’s leading furniture makers. The company, which traces its history back to 1917, is a strategic supplier to IKEA, producing a range of wooden bedroom furniture for the company.
BJS is one Europe’s leading furniture makers. The company, which traces its history back to 1917, is a strategic supplier to IKEA, producing a range of wooden bedroom furniture for the company.
Faurecia is one of the world's largest automotive suppliers. The company is the global leader in each of its four core business areas: Automotive Seating, Emissions Control Technologies, Interior Systems and Automotive Exteriors. Faurecia’s customers include virtually all the world’s major carmakers.
Worldwide, Faurecia operates 274 production sites in 34 countries and employs over 94,000 people. As part of its strategy to invest in growth areas, Faurecia decided to expand its Emissions Control Technologies business in the Czech Republic with a new, 26,000 m2 custom-built production facility at CTPark Mladá Boleslav.
The new state-of-the-art building will also house an R&D centre and an IT Competence centre supporting Faurecia’s global operations. Investment in the project totals €22 mil. As part of its longterm growth strategy, the company made the decision to further expand its Emission Control Technologies business in Central Europe with a new, state-of-the-art, custombuilt facility.
Faurecia was already well acquainted with the Czech Republic when it began the process of looking for a location for the new facility. The company first invested here in the early 2000s and today operates six production lines covering three of its core business areas at four sites in the country.
“During the decision-making process, Faurecia recognised that, because we already have a small plant here in Mladá Boleslav, this could become the core of the new facility,” explains Roman Budík, Faurecia’s plant manager in Mladá Boleslav.
Faurecia’s Emission Control Technologies production plant in Mladá Boleslav currently supplies exhaust systems for several carmakers including Škoda Auto and Toyota, and the company is looking to expand its client base both in central Europe and in western markets.
“Location, of course, was also crucial to the decision. The position of Mladá Boleslav is trategic to serve customers in the Czech Republic and Slovakia. We are also very interested in customers in Germany. In terms of proximity and driving distance, this location is ideal.“
Faurecia’s new production plant for emissions systems at CTPark Mladá Boleslav will be among the largest and most modern in the company’s global supply chain. During a four-year phase-in period, Faurecia expects to ramp up with new production and to grow its staff from the current 76 to 900 employees.
As part of its consolidation and growth strategy, Faurecia is also re-locating and expanding its Czech R&D centre to CTPark Mladá Boleslav, where CTP is constructing a 4,000 m2 custom-built A-class office building connected to the production facility. “For us, this is a big move. And it is definitely a good move, especially for our customers.
Having R&D and manufacturing together under one roof provides a good mixture of services for our customers and creates a competitive advantage for the plant itself,” Budík explains.
The Czech R&D centre is part of Faurecia’s global network of 30 R&D centres, which support Faurecia’s global operations across all business lines. The Czech R&D centre launched just over three years ago and will now grow following the move to new, custombuilt facilities at CTPark Mladá Boleslav. The expanded R&D centre will focus on development and prototype manufacturing, which is an area of increasing importance for Faurecia.
Faurecia is also taking advantage of its new facility at CTPark Mladá Boleslav to establish an IT Competence Centre to support Faurecia’s global operations—the first such IT centre supporting global operations in CEE. Over 100 IT specialists working at the new centre at CTPark Mladá Boleslav will provide IT solutions to Faurecia entities worldwide.
“The level of skills and the number of skilled workers in and around the Mladá Boleslav area is quite high, and this enables Faurecia to expand its business here, including R&D and the establishment of the IT Competence Centre. In addition, many com nies that support our activities, especially in areas like machine and systems repairs, are based in this area,” Budík explains. “We are able to find the level of skilled workers that we require in Mladá Boleslav.”
Construction work is currently underway on Faurecia’s new custom-built facility at CTPark Mladá Boleslav. The work involves a high level of customisation and detail, including machinery installation. “When you lease a new facility, it is not the building itself that makes it a production centre, it’s the equipment,” Roman Budík explains. “CTP worked with us closely concerning the special requirements we have for machinery and installation. We very much appreciate this level of work.”
Custom fit-out includes the installation of special heat transfer and ventilation systems and specialised equipment for technical gases involving more than 1 km of pipes and cables. Energy efficiency and environmental responsibility is essential for Faurecia’s operations, and CTP has worked to ensure that the new buil ng meets the highest energy efficiency standards. Special heat exchangers enable heat generated by the production process to be re-distributed within the building. CTP also designed the building to maximise usage of natural light and is installing a special automated light regulation system, which controls the usage of electric lights based on the amount of natural light available. Safety is another key area for Faurecia, and the new facility at CTPark Mladá Boleslav is built with above-standard fire safety technologies.
Roman Budík explains: “Faurecia takes safety issues very seriously. For this reason, we require our manufacturing facilities to be far above the safety standards of local legislation. Worker safety is a core value at Faurecia. Moreover, because of the nature of our business, we cannot afford a shut-down of operations because of a fire or other safety issue. This would result in immediate stoppages at the world’s major automobile assembly plants, and the damage from that would be excessive. Therefore, we demand the highest safety standards in building construction. CTP understands this and is able to deliver the quality standard that we require.”
For Faurecia, the move to its new facility at CTPark Mladá Boleslav is a major step in the further long-term development of the Czech Republic as one its core markets. Already, the country is the sixth most important country in Faurecia’s global footprint, and its importance is set to rise with the launch of its new facility. CTP thus plays an important part in the roll-out of this strategy.
“From the very beginning, even in the tender phase, I could sense that CTP had a better understanding of what Faurecia needs and how the new plant fits into the wider strategy,” Budík explains. “Because of this level of understanding, and CTP’s experience, negotiations were shorter and less complicated. This is very valuable and greatly appreciated.” CTP is on schedule to finalise all construction works and handover the new facility to Faurecia in the second quarter o 2013. “CTP provided us with the best possible layout that was closest to our ideal.” Roman Budík explains. “The new plant will be a much more efficient, and much nicer, work environment. As a French company, Faurecia places great emphasis on not just the safety, but also the quality of the work environment. We are excited to be expanding operations at our new, state-of-the-art production plant, about the expansion of R&D and the introduction of the new IT service centre at Mladá Boleslav.”
Faurecia is Europe's third-largest automotive supplier. Worldwide, one out of every four passenger cars on the road has a Faurecia made exhaust system.
Faurecia is Europe's third-largest automotive supplier. Worldwide, one out of every four passenger cars on the road has a Faurecia made exhaust system.
ABB is a long-term CTP tenant, with automated technology production lines and a robot repair centre at CTPark Ostrava. So it made sense that the two companies worked together to develop ABB’s new 12,500m2 production and R&D centre for its Power Products division at CTPark Brno. ABB developed its Power Products business in Brno initially to capitalise on the large, available pool of skilled engineers and lower operating costs. The professionalism and level of technical skill has impressed Product Group Management in Switzerland.
“Whenever there is a situation in Brno that needs to be solved, and the people in Brno say: ‘don’t worry, we will solve it,’ the people at ABB HQ know it will be done,” explains Karel Endlicher, General manager of High Voltage Products at the Brno facility.“This says a lot about the level of people we have and we can hire in Brno.”
ABB’s production at CTPark Brno focuses on High Voltage (HV) gas-insulated bus ducts, which are major components of HV switchgears in electric power products. ABB provides testing up to 850 kV at CTPark Brno. Demand for ABB’s market-leading technology is increasing globally, and currently 100% of output from CTPark Brno is exported worldwide. In addition to expanded production, ABB has also relocated significant parts of its global bus duct R&D team to CTPark Brno.
The team is responsible for improving and innovating product performance as well as the ecological footprint of the manufacturing process. One innovation has been the switch from wet to powder coating on bus duct components, which leads to up to 30% more efficiency and dramatic reduction of environmental impact. ABB is also a leader in the field of high-voltage gas-insulated bus ducts and has developed technology that can reduce power loss during transmission by up to 10 times. Based on ABB’s success in production and increased local compentencies in the Czech Republic, the company also operates a field service team from CTPark Brno.
The team, trained in Switzerland and Germany, is responsible for onsite installations for ABB clients internationally. All together, ABB currently employs around 150 people at CTPark Brno, with plans to double this in the near term as new production is brought on line.
When ABB—a global leader in power and automation technologies—needed new, larger and more modern space to accommodate its growing Power Products business in Brno, they turned to their long-term partner CTP for the solution. CTP responded with a tailormade facility delivered to ABB within eight months during 2013.
When ABB—a global leader in power and automation technologies—needed new, larger and more modern space to accommodate its growing Power Products business in Brno, they turned to their long-term partner CTP for the solution. CTP responded with a tailormade facility delivered to ABB within eight months during 2013.
Stahlgruber is an excellent example of a company utilising the CTBox concept to its full potential in multiple locations. The company is a leading European supplier of independent aftermarket automotive components, with a customer network that includes automotive workshops, distributors and corporate clients. Following a series of acquisitions, Stahlgruber’s Czech operations were growing rapidly, and the company was looking to consolidate and streamline its activities with new, modern facilities. As part of this strategy, they chose Plzeň as the site for their first CTBox unit, based on the ability to start with smaller operations and expand quickly as their business grew. Mirco Grübel, a Stahlgruber executive in the Czech Republic, explains; “Plzeň was our first project to build warehouses in “Stahlgruber style”. At that time we were running 29 locations in the Czech Republic, and our intention was to adapt to the strength of our German mother company. Our success in Germany, our core market, is strongly connected to the logistical structure and setup of our sales outlets. So we chose the location in Plzeň. Today, after positive experiences following the move, I could say that our Plzeň location could be twice as big.” As a next step in their consolidation strategy, and based on the success of operations at their CTBox in Plzeň, Stahlgruber chose to consolidate its logistics and distribution activities in the Ostrava area with two CTBox units at CTPark Ostrava. “Our reasons for choosing CTPark Ostravainclude its good availability and location between three formerly existing branches, which were replaced with the new location, and also our good experience with the ‘CTP model’ from Plzeň, which was important. From my point of view, Stahlgruber Ostrava is one of our most effective locations, in terms of utilisation of given space.” Stahlgruber runs the full spectrum of logistics and delivery activities from its CTPark locations in Plzeň and Ostrava and also provides customer consultancy and training services. The three-in-one flexibility of the CTBox concept, with office, showroom and warehousing in one unit, has enabled the company to grow rapidly and adapt its space based on its current—and future—needs. “We are satisfied with our repeated decision to go with CTP. The CTBox concept offers a very effective utilisation of given space, with a modular structure that gives us room for development. We also value the mix of approachability, flexibility in setting up stock areas, the possibility of office space, and price. For us it was an interesting combination, and I am definitely open to further cooperation. The fact that we have been partners since 2012 is an asset for such a decision.”
German aftermarket automotive parts supplier Stahlgruber chose the flexibility and efficiency of the CTBox concept to consolidate and expand its Czech activities at CTPark Plzeň and CTPark Ostrava.
German aftermarket automotive parts supplier Stahlgruber chose the flexibility and efficiency of the CTBox concept to consolidate and expand its Czech activities at CTPark Plzeň and CTPark Ostrava.
When Acer was looking to establish a regional customer service and repair hub to service customers in Central Europe back in 2005, the company needed a central and easily accessible location with a strong pool of educated people and close access to air transport.
Brno met all the company’s requirements. Within Brno, Acer was seeking a central, easily accessible location and a flexible facility to accommodate their multi-lingual customer support staff and skilled repair technicians under one roof. A custom-fit CTFIex unit at CTPark Brno was the solution. In the ensuing decade, Acer’s operations at CTPark have not only grown, but have also evolved with changes to technologies and the company’s product line. Acer is today a well-established player in CEE consumer markets, and the majority of customer service and repair work is handled at the company’s CTFlex unit at CTPark Brno.
Based on its success and good working relationship with CTP, the company in 2014 extended the lease on its 2,739 m2 CTFlex unit for an additional ten years. On the shop floor, Acer technicians repair a vast array of Acer products including desktops, laptops and tablets. Customer support services the Czech, Polish and Hungarian markets directly and coordinates independent service partners in other regional countries, including Slovakia, Austria, Bulgaria and Romania. Acer’s international customer service centre is also evolving rapidly with the fast pace of technological change and consumer requirements.
Increasingly, the company is handling repair requests on-line, in addition to its traditional call centre. Brno’s large population of university students and graduates is good base for recruiting not only skilled technicians but also customer support staff fluent in other languages. Consumer expectations demand a fast turnaround time for repairs. Acer’s Brno repair hub prides itself on turning around most repairs within three days. Location near Brno’s international airport is one of the key benefits of the company’s location at CTPark Brno. Another main benefit for Acer is the flexibility of its CTFlex unit.
The company’s product line changes quarterly, and there are also changes to the volumes of different types of products that come in for repair. Therefore, the ability to adapt its repair centre to meet changing needs is essential.
In 2005, Global computer and electronics major Acer chose a CTFlex unit at CTPark Brno to serve as its regional customer service and repair hub. In 2014, Acer exteNded its lease for an additional ten years, based on the success of its operations.
In 2005, Global computer and electronics major Acer chose a CTFlex unit at CTPark Brno to serve as its regional customer service and repair hub. In 2014, Acer exteNded its lease for an additional ten years, based on the success of its operations.
AVG is a global company with Czech roots dating back to the early 1990s and is one of the pioneers of anti-virus software. Over the years, the company has established itself as a trusted provider of online security systems for corporate clients and consumers and today boasts over 200 million active users worldwide.
Among its activities, AVG is a leader in developing next-generation online security platforms and provides internet security, performance optimisation and personal privacy and identity protection for Android, iOS, Windows desktop and Apple Mac platforms. While AVG’s corporate headquarters are in Amsterdam, since 2010 the company’s main operational activities, including R&D and programming, are centred at Spielberk in Brno.
We spoke with Jan Macek, AVG Brno’s Director of Operations, about the company’s activities at Spielberk. “In 2009, AVG was located at two offices in Brno, and we had hit the limit in terms of number of employees. With massive growth was in front of us, we started the search for a new location. There were many requirements, including good accessibility, proximity to the city centre, and of course we wanted to have a single building allowing for extension in the future. Spielberk Office Centre met all of our requirements. Today we have around 400 employees working at AVG’s Brno office, and we appreciate every day the benefits that our location at Spielberk brings us.”
“Brno is the centre of gravity for AVG’s consumer software engineering and IT/technology teams, and it is the largest office in our organisation. In addition to software, you can also find representatives of other AVG teams at Spielberk, including finance, HR and others. All departments are in close contact with colleagues at other AVG offices worldwide, and in many cases leaders in Brno are managing employees in other countries.”
“The Brno region provides excellent hiring opportunities for IT companies such as AVG. In Brno there are several quality technical universities. Young people are interested in technology, which supports the growing local start-up scene. While we do hire internationally on occasion, most of our employees at AVG Brno are local hires.” “We are pleased to be located at Spielberk. There are of course some technical issues, which are usual in any long-term lease, but CTP resolves the vast majority of these in a timely and high quality manner.“
Czech-based AVG, one of the world’s leading developers of anti-virus software, made the strategic decision to base its main software development and technology operations at Spielberk Office Centre in Brno.
Czech-based AVG, one of the world’s leading developers of anti-virus software, made the strategic decision to base its main software development and technology operations at Spielberk Office Centre in Brno.
When Hellmann Worldwide Logistics needed to expand operations for a major client requiring large-scale modern warehousing near the Czech-German border, CTPark Bor was the ideal choice. Strategic location, excellent access and lower operating costs than across the border in Germany helped Hellmann secure the contract. Michael Schertl, Hellmann Key Account Manager, explains: ”We had a client, Siemens AG, who was looking for a provider to handle the storage, picking, packing and distribution of certain finished products. One of the criteria was to offer a solution to reduce costs without compromising on quality. Because of its location and good infrastructure, we identified CTPark Bor as a good solution for the Logistic Centre. I can say that, because it provides lower operating costs, together with the same high standards and qualified skilled labour, CTPark Bor helped us to win the contract. Because of the professional approach of CTP Hellmann was able to implement the project successfully.” Hellmann operates a 20,000 m2 CTSpace warehouse at CTPark Bor, which is 30 km from the Czech- German border on the E50 motorway. In addition to the Siemens contract, Hellmann handles the full spectrum of logistics operations for a number of companies in different industries and sectors, including consumer electronics, fashion and automotive. “For this product range Hellmann takes over the storage, order picking, packing, shipping and carries out the value added services for the customer worldwide.” Close cooperation between Hellmann and CTP has helped to make Hellmann’s move to the Czech Republic both trouble-free and effective, and the company’s new, modern facility provides the same high standards as in Germany, while at the same time reducing costs. “Our new facility at CTPark Bor meets the expectations of Hellmann. Thanks to the exchange of lighting in our facility from T5 to LED, Hellmann is now able to save the energy costs and improve the quality of working place of each employee. We can confirm that the facility corresponds to the European standards.”
Based in Germany, Hellmann Worldwide Logistics is a leading global logistics companies with branches in over 150 countries. In 2013 the company chose CTPark Bor, near the Czech-German border, as the site for its first Czech operations.
Based in Germany, Hellmann Worldwide Logistics is a leading global logistics companies with branches in over 150 countries. In 2013 the company chose CTPark Bor, near the Czech-German border, as the site for its first Czech operations.
In recent years, Brno has emerged as a hotspot for the global gaming industry. Madfinger is one of the bold young local start-ups that has grown in five years to become one of the world’s most successful independent game developers. Their first major breakthrough success came with Samurai: Way of the Warrior and Samurai II: Vengeance, which made the AppStore’s Hall of Fame after more than one million downloads. In total, the company’s games have been downloaded an outstanding 70 million times. Madfinger co-founder, Tomáš Šlápota explains why the growing company chose Ponāvka as its global headquarters. “Today Brno offers various office parks in different areas. What mattered to us was the location within the city centre, a competitive rental price, and the possibility to adapt the layout and design of our future offices to reflect our creativity.” “CTP was helpful during our layout and design planning, and we are satisfied with our new offices. We liked our old place, but it was becoming too small for us. We now have more meeting rooms with automatic signalisation of its occupancy, we have a separate fitness room and a big relax zone with a large plasma TV and three different game consoles. We believe we have created a friendly workplace for our team.” Madfinger may be local, but their audience is truly worldwide and can be expected to grow as more people globally use smart phones and gain access to the Internet. “We have a large fan base in the United States, where we can speak of millions of players, but we are also popular in Asia and South America.” Madfinger is already planning to expand its current office space at Ponāvka as work increases and expects to double its current number of employees within two years.
Madfinger Games is a group of Czech game programmers behind some of the world’s most popular mobile gaming titles. Founded in 2010 with just four employees, this fastgrowing start-up now employs over 60 people and is poised for future growth. In 2014, Madfinger moved its operations to the premium offices at Ponāvka in Brno, which serves as the company’s global HQ.
Madfinger Games is a group of Czech game programmers behind some of the world’s most popular mobile gaming titles. Founded in 2010 with just four employees, this fastgrowing start-up now employs over 60 people and is poised for future growth. In 2014, Madfinger moved its operations to the premium offices at Ponāvka in Brno, which serves as the company’s global HQ.