Better Touch Better Business
German high-speed rail operation benefits from Czech knives
Pramet is a traditional Czech manufacturer of knives; however, its business scope is not limited to the home market. In recent years, it has successfully developed overseas markets including China. In foreign trade, the railway industry is the focus area of u200bu200bPramet Company. Currently, it is the third largest supplier of milling tools in Russia and has a strong presence in the German market. Pramet offers a wide range of tools for milling rail wheels, rails, backing plates and railway switches. In addition, special tools are available for the new couplers to connect single carriages. “We are constantly exploring the business in this area and keeping up with the dynamic development. The railway industry around the world is focusing on the use of cutting-edge, demanding technology. An interesting trend is: factory technology is shifting to rail technology. Therefore , the components can be repaired directly on the carriage without complicated disassembly, and the same is true for the milling of the rails.' Ing. One of Pramet's major inventions in this field was the design of an advanced orbital milling tool. The tool combines initial and final operations - which in the past required the use of two different tools. At the same time, if the condition of the track section changes, it is only necessary to simply replace a certain component to adapt to the relevant track section. Actually, this solution is quite unique. It has received positive reviews from customers because it reduces existing inventory. In Germany, customers can be contacted via the company directory, and we are also developing our own sales network. “We are actively focusing on orbital milling, not only with milling companies, but also with technology suppliers. The German market is very unique, it is the largest market in this field in Europe, and that’s why we are very competitive. In fact, The biggest difficulty in our work is how to convince customers of the quality of our products and comparability with other Western products. But our efforts have been very effective, and sales have increased by 36% in 2012. For example, the railway maintenance company Rabag has become an important customer for us,' says Ing. Petr Beneš for the German market. Deutsche Bahn is synonymous with reliability and trust, and Russian Railways has the longest railway line, and the connection between the two is indisputable. And what is the key to Pramet's success? Our company's main strength lies in the continuous research and development and improvement of product quality, and the continuous promotion of the company's technological development. Another advantage is that our product grade and management level are at a high level. The third important advantage is instant delivery. Usually, it will be shipped the next day after the order is placed. Of course, customers also have access to an automated inventory system that tracks inventory status in real time and restocks when needed. Another important competitive advantage is that we are able to offer special solutions and complete technologies. And customers will appreciate our quick response to demanding requirements. “Continued investment in product research and development remains an important condition for success. The investment is made in cooperation with the parent company and the two are exchanged. The total investment in this field is almost 8 million Czech dollars per year. The Czech government is also supporting projects in its 1/5 of the total investment amount mentioned above will be invested within the scope to support the project,” added Ing. Beneš, Vice President of Pramet. How is the business doing in these two markets? Pramet has achieved great success in this area and can compete with the world's top companies. In 2011, its sales growth rate increased by 40% compared to the market growth rate. Russian Railways is Pramet's largest customer and it has been operating in the Russian market for more than 10 years. Compared with Deutsche Bahn, Russia has fewer high-speed rail lines and is not very developed in general. However, as a supplier, Pramet still has to meet high requirements. Pramet supplied about 90% of the tools used for milling of track wheel assemblies. The main partners in the local railway sector are distributors, who cover almost all regions of the country. At present, Pramet's business in this field has even expanded to Poland. In the future, there are plans to extend to other countries where offices have already been established. China also has a very dynamic market in this area. Another potential market is Brazil.