Herz Company Launches a Workshop for the Production of Ball Valves and Sanitaryware
Launching of a new Herz production workshop in the town of Šmartno pri Litiji will create 70 to 100 new work sites and increase the company’s production capacity by 50%. The company will invest 4 million euros in the workshop construction: 2 million euros will be allocated as target investments, another 2 million euros will go for the purchase and installation of equipment.
Launching of a new production is due to a large number of orders, which exceeds the current capabilities of the company. The company’s director Damir Rutar stated this issue in his interview with the Finance.
The Prime Minister Miro Cerar and the Minister of Economy Zdravko Počivalšek laid the foundation stone of the future workshop in late January. The subsidiary company was founded in 2006 and is a member of the international group with the same name headquartered in Vienna. The area of the workshop will be 5,000 square metres, of which 3,500 square metres will be allocated for the production facilities, and the remaining area will serve for storage facilities.
The start of production in the workshop for manufacturing ball valves and sanitaryware under in-house designs is planned for September 2018.
Currently, the company employs 267 people. According to the results of the last fiscal year (completed in March 2017), the company generated 24.6 million euros in revenues and 1.2 million euros in net profit. According to the results of the current fiscal year, it is planned to generate 30 million euros of revenues and 1.5 million euros of net profit. By 2023, according to Damir Rutar, it is planned to increase annual income to 50 million euros, and net profit to 2.5 million euros.