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Year 2010 - development year for Centrum Klima
In 2010 the situation in Polish ventilation and air-conditioning industry was still difficult. Noticeable revival on the construction market contributed to a higher number of contracts, but, unfortunately, majority of the contacts were characterized by low margins. It was due to an extremely high competition on air-conditioning and ventilation market in Poland. This sector is marked by a significant number of small companies, operating literally from a garage. They often fulfil orders below costs to acquire clients. Unfortunately, this results in a very low quality of their products and the underselling trend. The problem is compounded by the attitude of Polish companies which still consider the price of an order to be a priority, while its quality is of secondary importance to them. As a result, Poland is flooded by the products with very poor technical parameters, which are not efficient and prone to breakdown, but cheap. Installations based on such components often encounter problems during technical approval and require frequent and costly maintenance and repair.
The situation abroad is different. Product quality and business partner reliability are of utmost importance there. Price is considered only a secondary issue. Centrum Klima is one of few Polish companies from air-conditioning and ventilation industry, which registered increased financial results this year. We owe this to intensive export activity. Presently, foreign sales constitute over 27% of our revenues. Our objective is to increase export share, even up to 45%, therefore we develop our production technology and scale intensively.
Thanks to completing the investment consisting in the office-production-warehouse complex in Wieruchów, production capacity of Centrum Klima has already increased two times. We still have more orders than we can handle. Therefore we want to increase our capacity four times until the end of 2012. We emphasize the modern and competitive aspect of our high quality products. We will soon launch a technologically advanced production line. So far, there have been only two similar facilities operating worldwide, therefore we expect to attract interest from international business partners.
Our strategy of offering the highest quality products, works perfectly. This year, we started exporting to such countries as Austria, Croatia, the Faroe Islands, Morocco, Switzerland and Turkey. We also expanded cooperation with business partners from Sweden, Ukraine, Belarus, Germany, Bulgaria, the Netherlands, Romania, Estonia, the United Kingdom, the Czech Republic, Belgium, Finland, Denmark and Portugal. The products of Centrum Klima are already available in 34 countries and we conduct discussions with next business partners.
Year 2010 has been the period of development and consolidation of the leader position on Polish market and a major partner on world markets for Centrum Klima. Consistent implementation of the strategy ensures stable sales for the Company and market diversification helps to offset economic fluctuations.
We have ambitious plans for 2011 and we expect it to be even better, not only for us, but entire ventilation and air-conditioning industry. I think it will be the period of precipitated consolidation of the sector. Small and weak companies will require support of larger entities, to survive. I also hope that Polish construction industry, following international trends, will appreciate product quality and business partner reliability more.
Marek Perendyk,
President of the Management Board of Centrum Klima SA
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