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project info
Start date: 24 June 2015
End date: 2 June 2016
funding
Fund: European Regional Development Fund (ERDF)
Total budget: 26 085,86 €
EU contribution: 13 042,93 € (50%)
programme
Programming period: 2014-2021
Managing authority: Nemzetgazdasági Minisztérium Gazdaságfejlesztési Programokért Felelős Helyettes Államtitkárság

Promoting the expansion of TOM-FERR Zrt. in the Western European region, primarily in Germany.

The current situation of TOM-FERR Zrt.: TOM-FERR Zrt., which is based in Budapest, has its registered office in Budapest and its predecessor was established in 1994. Based on a strategic decision, the next major step was the construction of the Tata production hall in 2008, which is now the site of the company. At its headquarters in Csepel, the Company is engaged in the trade of metallurgical products, including mainly steel tubes, closed sections and tube sleeves. At the Tatai site, metalworking activities are carried out for the automotive industry. TOM-FERR Zrt. intends to increase its presence in the external markets in respect of both branches of TOM-FERR Zrt. — general pipe trade and automotive industry. The company’s direct export markets are Slovakia, the Czech Republic, Poland, Italy, Serbia, Croatia and Slovenia, to which it mainly supplies seamless and seamless steel tubes and tube parts for automotive parts. Currently active industrial segments on the market of TOM-FERR Zrt: Slovakia — automotive industry, steel trade, Czech Republic — automotive industry, steel trade, Poland — automotive industry, Italy — steel processing industry, Serbia — steel trade, mechanical engineering, Croatia — steel trade, mechanical engineering, Slovenia — steel trade. For recent years, the distribution of export revenue compared to total revenue is HUF 674 000, which represented 16.6 % of turnover, i.e. HUF 743 000 in 2014, which represents 17 % of turnover. The development is related to 25.62-Metalworking activity in the annex entitled ‘Geployment Focus’. TOM-FERR Zrt has specifically laid the foundations for the future expansion of company exports within the automotive segment by introducing modern, internationally competitive manufacturing technologies and the adaptation of essential quality assurance systems in the automotive industry. Since knowledge of the pipe product and its machining can be obtained with a long and costly learning time on the market for automotive parts made of steel pipe, the barriers to entry into the market area are also high. With this knowledge, TOM-FERR Zrt. will be able to measure itself on the international markets with good chances. In the short and medium term (2015-2020), the company plans to expand its annual export share by about 10-15 %, reaching a 30-35 % export share by direct suppliers to German car factories (VW Group, BMW, Mercedes, Opel) and their subsidiaries in Central Europe. Due to market information and the presence of a strong manufacturing industry, Germany is the main destination identified in the current development. The justification of the German market is confirmed by the fact that Germany has one of the largest automotive groupings in Europe, with its outstanding automotive players and excellent engineering knowledge. Germany accounts for 30 % of the number of automotive producers and sales in Europe in Europe. One in five cars worldwide is manufactured by a manufacturer of OEMs in Germany. The total number of German car factories in 2014 exceeded 15 million units. This number corresponds to the 18 % worldwide recovery. Projected to the supply chain, twenty-one of the world’s first 100 suppliers are based in Germany. Germany’s strong automotive presence is also noticeable in the German economy. In 2014, the automotive segment represented a turnover of EUR 384 billion, corresponding to 20 % of German industrial revenue. The projections will continue the positive trends observed in 2014 until 2015. Tom-Ferr Zrt. is currently a supplier of TIER2 on the automotive market in Germany. Our main customers are Kirchhoff, Gedia and Vogel & Noot in Germany. The three companies correspond to 26.1 % of the company’s exports, which is divided between the three customers — Kirchhoff 11 %, Gedia 14 % and Vogel&Noot 0.7 %. If our company could participate in the automotive exhibitions in Germany, we could gain further contacts, new opportunities would be opened to establish the company’s position on the market. 1.IAA Cars- Frankfurt, The exhibition is essential in the life of all automotive suppliers who want high quality market positioning and perception in the international competitive market. The “IAA Cars” exhibition has a long history, 115 years in number. They are preparing for the 2015 exhibition for the participation of 400 exhibitors, with more than 900,000 visitors. 2. Industrial Supply — Leading Trade Fair for Industrial subcontracting and Lightweight Construction- Hannover, 220,000 visitors are expected to attend the 2016 exhibition. At the exhibition, 6,500 companies are expected from 70 different countries as exhibitors who wish to promote their automotive products within the framework of the event. 3. Global Automotive Components and Suppliers — Stuttgart, At the exhibition, participants in the supply chain will honor them from OEM to Tier3. For the 2016 exhibition, the organisers expect 600 suppliers from 50 different countries.

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