Gomma Line to become leading supplier of parts for Russian Lada vehicles - Manufacturer of automotive rubber components expands production in Kragujevac

Kragujevac-based manufacturer of rubber car parts, Gomma Line, is close to finish the negotiations with the largest automobile manufacturer in Russia, VAZ Tolyatti plant, which is famous for its Lada brand, eKapija learns. According to the words of Nenad Cvetkovic, general manager at Gomma Line, that company will in maximum two months become one of the leading suppliers of the Russian partner. Works on the equipping of new production plants in Kragujevac are also close to end. Aside from the countries of former Soviet Union where the company is already present for several years now, Gomma also plans to enter the markets of western Europe and, as Cvetkovic points out, they are certainly most interested in establishing a cooperation with the company Fiat automobili Srbije.

- We will soon finish the construction of two new production plants and, thus, complete the investment cycle started in 2010. Our capacities are about 70 percent employed and we intend to maximally employ them in the following period, which will depend on new contracts – Cvetkovic explains.

Gomma Line exports its products to the markets of Russia, Belarus and Uzbekistan for years now, while only small part of the production is sold to construction companies in the country.

- Products in the offer of Gomma Line are classified into three groups: compressed rubber-technical parts, extruded rubber profiles, and brake parts. One of our most significant customers in the automotive industry is Russian GAZ, that is, the factory of light freight vehicles, which we supply with rubber profiles and various types of rubber hoses and gaskets. We also deliver parts to Belarus-based MTZ, a renowned manufacturer of tractors and agricultural machines from Minsk, and brake hoses to the General Motors plant in Uzbekistan. We expect to expand and strengthen our cooperation with the Belarus bus manufacturer MAZ. Our parts are also built in Renault and Volkswagen models. When it comes to the construction industry in Serbia, we supply Nis-based Nissal and the company Vizuz with rubber profiles for aluminum carpentry – Cvetkovic explains.

According to the words of our interlocutor, the strategic decision of the company based in Kragujevac is to enter the market of western Europe and establish a cooperation with local plants. One of possible future customers of the company is Fiat's plant in Serbia, with which promising contacts have already been made.

Strategic partner for conquering the European Union

- In entering the markets of the European Union we will most probably seek assistance from a strategic partner and we are open to several options. We will negotiate on both formation of a new joint venture and recapitalization of the existing one. Our potential partners from the West will be offered good terms of operations in the market of Russia where we have gained a significant experience, earned excellent references and developed a good logistics support. All interested companies will be offered to take part in joint production in Serbia and joint appearance in the markets of former Soviet Union, with free trade agreements between Serbia and these countries as key benefits. Gomma Line has an office in Moscow where it employs 15 people who are responsible for sales and contacts in that market. We also have offices in Nizhnymnovgorod, in which a large GAZ plant is situated, and in Minsk where we plan to expand our cooperation with the Belarus bus manufacturer MAZ. Having in mind the production localization trend, which is now requested by all world's leading automotive companies, we will most certainly open finishing plants in these cities, while the basic production will remain in Kragujevac.

The equipment used by Gomma Line is made by renowned German and Italian manufacturers (Troyster and Rutil), while raw rubber is imported from the companies in Slovenia (Sava Kranj), Poland, Netherlands, and Italy.

The company Gomma Line was founded in 2007 in Kragujevac where two production plants with 62 employees are situated.

- The plant in Kragujevac employs the most experienced technologists and engineers in the field of the production of rubber products, who used to work at the most famous local plants such as Gumoplast in Indjija. Also, we have established excellent cooperation with the University of Kragujevac, that is, the Faculty of Mechanical Engineering. The best students of that faculty are interning with our company and we educate them, while the faculty also helps us in educating our expert personnel and keeps us up to date with the latest achievements in the automotive industry. We are the only company in Serbia to enter a joint project with this institution and, owing to that cooperation, our quality engineers are being trained in Ljubljana where they are attending a seminar held by the most eminent experts of Fiat. After that, they will first leave for Nottingham for seven days and then for Goteborg in Sweden for the same period of time, during which they will visit Volvo plant. The seminar focuses on issues related to the quality management system, cost reduction, and introduction of the latest standards in the automotive industry.

T.S.