Flaro Sibiu estimates revenues of Eur one million from car parts (1st of June, 2007)

Flaro Sibiu, the manufacturer of parts for the automotive and electrical industry, a member of the RTC Group, announced that it would produce over 400,000 components for several car brands known worldwide, the income generated by this activity being estimated at over Eur one million. 

For brands like Jaguar, Volvo, DaimlerChrysler and Volkswagen, Flaro will produce parts for the electric and driving systems (automatic gearbox) of cars, components that are manufactured using high precision and high productivity technological equipment, which require high quality of workmanship. “In automotive industry any component is extremely important, because a chain lasts as much as its weakest link does”, states the sole administrator of Flaro, Ani Capatina, explaining the importance of these components.

The process of selecting the company as a supplier for the automotive industry, and not only, requires a period of 2 or 3 months, beginning with the first contact, and up to 1 year, a period in which pre-audits, negotiations, production transfers, zero series, homologations, etc. are carried out.

“We have been certified for 5 years (ISO 9001/2000), a minimum mandatory condition for a sub-supplier of components for the automotive industry. Our goal for the end of 2007 and the beginning of 2008 is the TS 16949 certification, specific for the direct suppliers for the automotive industry,” states Capatina.

The company in Sibiu is periodically audited by TUV CERT and also by some of the most important customers in the automotive and electrical industry: Kuhnke, Vimar, Harting, Moeller.

The international automotive industry is not the only market segment in which Flaro activates. The company has also invested in the electrical industry, a domain in which Flaro estimated an income of over Eur 2.5 million this year.

“We focus on business development in the automotive industry and electronics. We will invest Eur 600,000 in the acquisition of new technological equipment, which will significantly increase the production capacity in terms of plastic injection and machining”, says Capatina.

For 2007, Flaro also aims at expanding its customer portfolio which activates on both the automotive and electrical markets, among which Emerson and the French company FCI.

Flaro has been activating on the Romanian market since 1922, being a 100% Romanian brand, with a tradition of over 80 years. Here are the significant stages in the evolution of Flaro: the restructuring process of the company - the period between 1990-1996, followed by its privatisation in 1997. The next period marked an intensive development, the entrance on new markets (electronics, electrical and automotive industry, textile accessories, haberdashery and household products) and, in 2005, the entrance in the RTC Group.

RTC Holding is one of the largest retail and distribution groups in Romania and it comprises eight business divisions: Diverta (retail of books, music/film, IT and stationery), Proffice (office and IT product distribution), ProCA (IT specialised distribution), Rafar (franchise retail of clothes, shoes and cosmetics), Rimobi (development and real estate), Flaro (production of plastic parts, office furniture and products), TCE (cargo, courier and logistics) and Sistec-SBsol (software development). RTC Group ended 2006 with a turnover of Eur 261 million, including PayStore. For 2007, financial projections indicate an increase of 20 per cent of turnover, but decreases to Eur 250 million as a result of the sale of PayStore.

Source: www.wall-street.ro