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Sales Teritories

Annual Report

Annual Report

 

Business

 

         1999 was the first year of consolidation in our company aimed at initiating the construction of a marketing-driven, customer -oriented firm with the aim of improving services for our customers and gaining more segments of the market or, in those segments where EP Louny is already active, strengthening our position by providing better services and offering more attractive market prices. We adopted a new strategy aimed at breaking into the US market in the coming years and using the excess capacity of both our plants, ie. at least the 50% of capacity unused since the break-up of the Comecon trading block.
         On the domestic market Elektroporcelán remains the leading supplier. Sales in 1999 displayed strong growth. In the near future this market will continue to be affected mainly by the decline in investment at Czech Railways and in the regional electricity companies' distribution lines.
         Europe: In this segment of the market the privatisation of energy companies is beginning. In this area, stagnant sales seem more likely than dynamic development. This situation has led to a sharp decline in the prices of insulators and the volume of orders. Our strategy for penetrating this market is based on insulators manufactured from C 130 material, a technological process mastered only by our strongest competitors. If we succeed in gaining customers for that product range it will result in an increase in sales for the Merklín plant. Concentration on European markets, however, will not be sufficient to produce dynamic growth over the next three years. That can only be achieved by finding new markets.
         USA: The USA, Canada and Mexico represent very promising markets for further dynamic growth. During the course of 1999 we organised our strategy for penetrating those markets and, in the second half of the year, approximately 40 types of insulators were selected for sampling and testing in the USA. In the third quarter of 1999 the production and sale of two types of transformer bushings for USA was started. The American market should replace the lost volume of the former Comecon markets within three years and enable us to use our excess capacity.

         In 1999 our joint stock company began the construction of a marketing and sales group to function as the leading factor determining the development and, indeed, the whole future of the company. Emphasis is placed on foreign language skills to enable Elektroporcelán to operate in all our spheres of influence - in other words, the whole world. Marketing and sales are organised in commercial units according to the various market segments. In 1999 we promoted greater effectiveness by introducing the new Promis information transfer system and the MFG PRO sales system. We expect them to be fully implemented during 2000.

 

Export sales by markets 1998

Export sales by markets 1999

 

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