Output boost for components manufacturer thanks to new Kaunas production line

Major investments in its production unit in Kaunas by the advanced components manufacturer KB Components should mean a busy and productive 2015 for the Swedish capital firm. Although testing of the new, 12,000 square meter production line has taken longer than originally planned – since it incorporates a range of new technologies – being precise has paid off. Just before the New Year, big orders from two large Scandinavian companies came in and work on these orders will start this year.

The new, EUR 1.2 million production line enables components to be coated with a variety of materials including metal and chrome. And the capacity to do this on a large scale has given the company an important advantage over its competitors, according toRolandas Jackevičius, managing director of KB Components. Whilst there is great demand for these kinds of products in Europe, production is usually only done in small batches. “Therefore, we’ve filled this niche. With a larger output portfolio we are becoming more competitive. The new line allows plastic to be covered with a metallic surface or metal components to be chrome plated”, Mr Jackevičius said.

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Ostnor, one of Scandinavia’s largest plumbing companies, confirmed an order for the production of metal-coated plastic components at the end of December last year. An undisclosed Scandinavian company has also placed a large order for components built using the new facilities in Kaunas. KB Components already counts Volvo trucks and Husqvarna among its clients.

The new production line is part of a wider development programme by KB Components, which regularly develops its products due to a growing number of orders from export markets. Two years ago, the company leased additional premises in Kaunas, and now employs 120 people in total in Lithuania’s second city. On top of the EUR 1.2 million invested in the new production facilities, EUR 0.3 million were used to purchase plastic injection moulding equipment, a robot and a crane. These investments were made using a combination of the firm’s own funds and borrowed capital.

Thanks to this focus on expansion and diversification, the company now has 60 different types of production equipment. This enables KB Components to meet the needs of a wide range of major customers; it produces plastic engine parts for Volvo trucks, protective body and engine parts for the garden equipment giant Husqvarna, radiator parts for TitanX – a supplier of truck parts – and tap components and heads for the Ostnor plumbing company.

Read full article in Lithuanian at VZ.lt