Driving growth

HRONOVSKÝ I PROFILE

Czech company Hronovský produces and assembles components for the automotive and electrical engineering industries. Marek Hronovský, Executive Director, shared the story with Phil Nicholls.

The family company of Hronovský was founded in 1990 by Josef Hronovský with a small workshop in Bohuslavice, East Bohemia. Josef Hronovský personally produced turned rotary parts, slowly expanding into the assembly of connector groups and cable harnesses.

In 2006 the growing company moved to Osma in Nové Me ˘sto nad Metují, in the Náchod District of northeast Czech Republic. The new site allowed Hronovský to invest in a modern CNC machine workshop. A steady program of investment and growth saw Hronovský expand into Bulgaria in 2019 with two production facilities, enabling Hronovský to achieve a turnover of €120 million in 2021, employing over 1,500 staff.

Production portfolio

Hronovský currently manages a portfolio of four production facilities in the Czech Republic and two in Bulgaria. The current Nové Me ˘sto nad Metují production plant has 20 employees with a focus on the machining of rotary parts on CNC machines. The nearby factory in Náchod is larger, with 240 employees. Here Hronovský concentrates on the serial production of

lines such as electromechanical switches, steering wheel levers and cable harnesses.

In Central Bohemia, Hronovský operates a larger factory in Zdice, where over 260 employees work. This site performs injection moulding on Engel, Demag and Battenfeld presses, alongside metal injection moulding, metal stamping and assemblies. Hronovský also produces spare parts for the post-sales market at Cenkov, with a staff of 40.

Also located in Zdice is Hro Technology AS, a subsidiary of the main Hronovský group. HRO-TECH produces high-quality progressive cutting, bending and moulding tools along with plastic injection moulds, used to produce technical parts for the automotive and electrical engineering industries. This subsidiary broadens the range of products offered by the Hronovský group.

Hronovský has two divisions operating in Bulgaria: Hronovský BG EOOD and Hronovský EC EOOD both based in Smolyan. Hronovský BG EOOD has approximately 850 employees and focusses on the assembly of steering wheel modules and surface mount technology lines. The smaller Hronovský EC EOOD is dedicated to the assembly of cable harnesses with 140 employees.

Complex modules

Creating such a wide range of products makes it difficult to single out just one line to highlight: Marek Hronovský, Executive Director, said the company is enjoying “ a big demand for electrical components within the automotive industry.”

Hronovský continues to invest in new technologies and extend its production programme.

As an example of the complexity of Hronovský products, Mr Hronovský cited the steering wheel modules produced for clients such as Ford and Porsche. The production of these modules features both plastic injection moulded parts and metal stamped parts. Assembly involves Hronovský cable harnesses and electric components, performed on an automatic production line created by the HROTECH subsidiary.

“What sets us apart from our competitors,” Mr Hronovský said, “is the

HRONOVSKÝ I PROFILE

complexity of our production portfolio.” Hronovský is more than a classic assembly plant. The company is “able to respond flexibly to a customer’s demands,” working with the client to achieve the optimal tool or mould solution on a product line. The ability to offer a complex solution makes Hronovský an adaptable business partner.

Working with suppliers

Mr Hronovský stressed how the company “strives for long-term cooperation with suppliers, which benefits both parties.” To ensure the quality of its products, Hronovský sets “high demands on quality, cost, confirmation of deadlines and quantities, as well as flexibility.” As a bare minimum, Hronovský requires IATF 16949 and ISO 14001 certification.

The supplier base is regularly verified and evaluated, with the status of ongoing relationships determined by those results. Such a rigorous approach ensures both Hronovský and its suppliers “can withstand the demanding automotive environment,” said Mr Hronovský.

Yet, Hronovský is conscious of not pushing suppliers “into a corner.” Normal practice would be to push for price reductions to maintain competitivity with a tight market. In these trying

times, however, Hronovský is taking a more sympathetic approach.

“We have to look at each case individually,” Mr Hronovský explained, “And we use common sense, not only the graphs and sheets.” This strategy aims to always achieve an amicable agreement with suppliers. Effective communication up and down the supply chain is the best tool to speed recovery within the automotive industry.

Sustainable growth

Hronovský is preparing for the future with the latest round of investment. CNC machinery was upgraded in December 2021, with a further upgrade planned for summer 2022. €3.5 million has been invested in a new surface mount technology production hall in Bulgaria. Hronovský also invests in the sustainability of the company, with the recent installation of photovoltaic solar panels in Nové Me ˘sto nad Metují.

The Covid-19 pandemic impacted Hronovský and Mr Hronovský acknowledged the “collective strength” of the company and its employees. The automotive industry is on the road to recovery, although he accepts it may take a little longer to set everything back on track as it was pre-pandemic. The temporary shuttering of automotive giants was unprecedented, so it is inevitable that it takes time for the industry to recover fully.

Mr Hronovský identified the unpredictable Covid waves and the current situation in Ukraine as the biggest challenges facing the automotive industry. Juggling material stocks and maintaining the economic stability of the company are everyday concerns. Yet, Hronovský is determined not to stagnate, and the drive to develop new technologies is a constant feature. Mr Hronovský remained optimistic because of this active drive towards new markets and new product lines.

Specifically, Hronovský aims to diversify a customer profile which is 92% automotive customers. The company seeks new market segments, alongside continued modernisation, and an overall goal of increasing turnover by 7% year-on-year. Incremental product development will drive the growth of Hronovský across Europe and beyond, keeping the company at the top of the business ladder. n