A company based in Greece currently runs a very successful Sandwich Panel manufacturing business. The sandwich panels are in several different profiles, thicknesses and lengths. These panels require pre-painted galvanised steel strip on the two outer surfaces with various forms of insulation material bonded between the sheets.
The pre-painted steel was previously purchased from various suppliers, both locally and overseas. However, the lead-time to obtain specialty colours in non-standard volumes at competitive prices was severely limiting the company’s profitability and business expansion opportunities.
The solution was to install their own Colour Coating Line so they could respond quickly to short lead-time requirements and non-standard products. The Colour Coating Line project was supplied and managed by Bronx International to meet their present and immediate consumption requirements whilst maintaining the flexibility for expansion, to significantly increase capacity when required. The Colour Coating Line was designed to fit into an existing warehouse (less than 60m), close to their Sandwich Panel business.
The Colour Coating Line project was completed in late 2009 and was quickly functioning at full production capacity. Having their own Colour Coating Line meant the company could stock its own galvanised coil in bulk to use as required to meet market demand, resulting in very short delivery times to their customers. This has led to the business growing rapidly, such that a major capacity improvement is now being considered. Specialty colours and products are now part of their business while their standard products are now more profitable as they now only purchase galvanised coil instead of prepainted coil. The additional capacity also allows them to paint galvanised coils for other companies which traditionally had to import product to meet the very high quality requirements in Greece.
As the company no longer has to stock many different colours of painted coil, their stock inventory is significantly reduced, hence the dollar value tied up in stocked coil is also reduced. This has allowed the company to take advantage of “economies of scale” with greater buying power of galvanised coils.