TURNING INVESTMENT

INTO SUCCESS
The Czech company TOS VARNSDORF is a leader in horizontal drilling. It utilises its own R&D department to come up with new machines and equipment on a regular basis, staying at the forefront of
the industry worldwide. Irena Alderson talks to commercial director Slavomir Bednar about the major
investments and strategic plans for the near future.

novation, reliable services and

flexible solutions have been the
hallmarks of TOS VARNSDORFs
machining from the beginning. TOS
VARNSDORF a.s., a joint-stock Czech
company, has a long tradition of producing machining centres, horizontal
boring and milling machines. It is based
in north Bohemia, on the German border,
in a town with a long industrial history. The
company was founded in 1903 by Arno
Plauert and started with simple metalwork and metal cutting. The renowned,
precise horizontal drilling tools were produced here as early as 1915, so we will
reach our centenary in a few years time,

IN

32 Industry Europe

says Mr Bednar. The company produced

machining tools on a par with the global
leaders of the time and in the 1930s it produced up to 600 lathes, 150 milling
machines and 100 horizontal drilling
machines each year. The boom was unfortunately interrupted by World War II.
After nationalisation in 1949, the year
1965 was an important milestone not only
for the company, but also for the country as
a whole. It was in this year that the first ever
prototype of the digit-run horizontal machine
was manufactured under the name WH100.
The first CNC machining centres followed in
1973, supported by the longstanding experience in the field. During this period, TOS

VARNSDORF exported 6090 per cent of

its production all over the world. The Velvet
Revolution in 1989 therefore found TOS
VARNSDORF well prepared for privatisation. It happened in 1995 with a direct sale
and TOS VARNSDORF s.r.o. was founded.
The company changed from Ltd to jointstock a year later and, thanks to its innovative
approach and strong technical background,
it could successfully compete on developed
markets straight away. In 20002001 TOS
VARNSDORF introduced a newly developed
line of machining centres, the TOStec series,
which are delivered individually according to
specific configuration for the customer.
These innovative machines offer a large

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TOS VARNSDORF AUTOMATION

capacity and also higher productivity. At

the same time, in December 2007 we are
going to celebrate our 2000th WHN13
leaving the factory. This is our flagship
product, started in the 1970s, and it has
been our most popular product so far,
explains Mr Bednar.

Strong investment
TOS VARNSDORF has been operating with
purely Czech capital and management and
is now reaping the rewards of the initial hard
work. It has been exporting heavily since the
1970s, up to 90 per cent to the USA, Asia,
Russia and the rest of Europe. The Czech
Republic, with its strengthening economy, is
becoming a more important market as well.
When it comes to machining, we cover
around 20 per cent of the Czech Republic.

34 Industry Europe

However, in the segment of horizontal axis

machines, we cover up to 40 per cent. On
the domestic market, we face stiff competition from TOS KURIM OS and to some
extent SKODA MACHININE TOOL, but the
foreign competition is also strong. There is
German Union or the Italian Pama. TOS
VARNSDORF is enjoying the situation of the
overall boom in the industry and is investing
something like CZK 70100 million annually
in machinery, adds Mr Bednar.
Next year, TOS VARNSDORF is planning to increase investment up to CZK
200 million. The main investment area will
be increasing the capacity of production
in line with the strategic plans for growth
in 20092010. The turnover in 2006
reached CZK 1.7 billion, this year we are
expecting CZK 2.35 billion and the pre-

dicted turnover for 2008 is CZK 2.8 billion. All in all these constitute massive
year-on-year increases. Our ambition is
to reach CZK 3.2 billion in 2009.
TOS VARNSDORF specialises in products over one cubic metre the middle
and heavier machining market and
most of the turnover is generated by two
core products. The first one is the WHN13
CNC horizontal boring machine with
adjustable rotating table and the second
one is the WRD130 and 150 floor range,
which is continuously controlled. There is
also a rotary table, where the machines
are capable of coping with large pieces
in a clamp. All our machines are high
performance with an innovative design,
ensuring reliability. We are proud to have
engineers of this calibre, says Mr Bednar.

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TOS VARNSDORF AUTOMATION

Flexible solutions
In recent years, TOS VARNSDORF has
focused on finishing the TOStec machining
centres and an extensive range of complementary equipment with the aim of adding
value and increasing the functionality of its
products. The main industry segments covered are alternative energy wind turbines
and heavy machinery, such as cranes but
it supplies any part of industry demanding
machining. These include the automotive,
shipbuilding or aviation industries. TOS
VARNSDORF is able to customise its
machines to allow for versatile solutions.
Delivery times offered are usually in the
range of six months.
Research and development is at the forefront of TOS VARNSDORFs philosophy. It is
a strong department, having a traditionally
close relationship with universities and other
technical institutions. There are also grants
from the Ministry of Trade and Industry;

36 Industry Europe

however, the company invests around CZK

50100 million in the development of new
machine types in its own production programme. Our priority in the past few years
has been auxiliary equipment, such as
milling heads or manipulating equipment.
In this way, we offer an even more versatile,
complete and much more flexible system
for our customers, explains Mr Bednar.

Optimistic outlook
The past two years have witnessed a major
investment in TOS VARNSDORF. We are
aiming at our turnover crossing the CZK 3
billion limit in 2009, or possibly even CZK
3.3 billion. TOS VARNSDORF is expecting
to be successful owing to its large potential, esteemed know-how and wide portfolio. Our competitive advantage is
long-term customer support, guarantee
and unparalleled quality. We are now also
offering tele-support and consulting.

TOS VARNSDORFs strong position can

be illustrated by its number of employees,
as it is the number one employer in its
region. The number of staff was 540 in
20042006, rising to 620 in 2007. The plan
for the next year is to have 640 employees,
but that is as high as it will go. Any additional changes will be dealt with by
increasing productivity.
TOS VARNSDORF is using its daughter
company in Canada, TOS Trade Canada,
based in Toronto, to do business in the USA
and Canada, and the Chinese company in
Kumming (with 50 per cent ownership) to
distribute and manufacture the WDN100
and 130 and the WRD130 and 150 in Asian
markets. We participate in all major trade
shows and fairs, for example in Hannover
and Paris, in order to stay ahead of competition, concludes Mr Bednar.

www.tosvarnsdorf.cz

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