Componenta Oyi, the Helsinki-based holding company for four iron and aluminum foundries, announced that it is making progress with the program it set in motion last year to improve production efficiency and profitability. Also, the company said it would expand the efficiency program with several new projects totaling €5.5 million that focus particularly on raising capacity utilization rates, developing processes, and improving profitability by €10 million in 2015.
The group casts parts for agricultural equipment, automotive, construction equipment, heavy truck, material handling, and wind power equipment manufacturers.
At Componenta’s Orhangazi foundry in Turkey, the company will implement improvements to the melting process and the foundry sand system. The latter project is intended to bring a significant reduction in the volume of waste sand, improve the efficiency of the casting process, and raise the quality of both the process and the cast components. Also, it aims to reduce material costs and the amount of fettling work necessary to finish the castings. The projects would be completed by the end of summer 2014.
In The Netherlands, at the Heerlen foundry, capacity utilization rate improvements and other efforts at better productivity will be based on better production planning and management, and faster throughput times. Efforts also will be made to improve product quality, too.
In addition, Componenta aims to reduce odor and emissions from the foundry, with financial assistance supplied by state and local agencies. These investments will be carried out in 2014, too.
At two foundries in Finland, Pietarsaari and Pori, the improvements will be based on capacity utilization rate increases and fixed-cost reductions. A merger of the two foundries will proceed, which the company said would strengthen its competitive edge in the Nordic markets.
Componenta said it continues to transfer capacity from its machining operation in Främmestad, Sweden, to the Orhangazi machine shop in Turkey. The group said it would continue to develop the Turkish operation as a more cost-effective center of production, and those investments will be included in its productivity improvement programs.
The group said some of the efforts would begin to improve profitability during 2014.