Gabriel Porojan, Managing Director KIRCHHOFF Automotive Romania: “In 2021 we will intensely prepare for the projects to be implemented in both plants in 2022-2023”

“In an automotive market affected by both the economic crisis and the crisis generated by the pandemic, we can say that we have had a good course and evolution. The help provided by the Romanian Government made it easier for us to get through both the emergency period and the next period, so we managed to continue our activity with complete teams in both plants. We looked for projects different from those managed in a normal situation, so that the team’s motivation remains at a high level,” Gabriel Porojan, Managing Director KIRCHHOFF Automotive Romania, told Automotive Today.

“Certainly in 2021 we will see a decrease in sales compared to our forecasts, but at this time it is crucial to adapt to the new market requirements. On the other hand, our plant in Argeș continues to have a growing turnover next year and in the years to come. What we know for sure is that in 2021 we will intensely prepare for the projects to be implemented in both plants in 2022-2023.”

How have you managed the year 2020 so far in the context of decreased demand and production volumes for the automotive market in Romania?

The year 2020 was an atypical year for everyone, but with a lot of work and determination we managed to face the challenges that came with it. Demand decreased in the first part of this year, but now we can produce for the automotive market in Romania about 85% of the volumes expected at the end of 2019. In addition, the global automotive market has decreased this year, so we continuously adapt to the changes related to demand and production volumes. However, the tendency to return to production volumes we had at the beginning of the year is maintained.

How would you describe the evolution of the company in these quarters dominated by uncertainty amid the pandemic?

In an automotive market affected by both the economic crisis and the crisis generated by the pandemic, we can say that we have had a good course and evolution. The help provided by the Romanian Government made it easier for us to get through both the emergency period and the next period, so we managed to continue our activity with complete teams in both plants. We looked for projects different from those managed in a normal situation, so that the team’s motivation remains at a high level.

What are the company’s expectations regarding the evolution of the automotive industry in 2021?

Certainly, in 2021, we will see a decrease in sales compared to our forecasts, but at this time, it is crucial to adapt to the new market requirements. On the other hand, our plant in Argeș continues to have a growing turnover next year and in the years to come. What we know for sure is that in 2021 we will intensely prepare for the projects to be implemented in both plants in 2022-2023.

What are the challenges you are currently facing? Did you have to resort to cost reductions during this period?

Although we did not expect 2020 to be a year full of challenges, we found ourselves circumstances that neither of us experienced. Implementing mandatory measures and rules of the company regarding the new way of working both in the plant and in the administrative area, such as different production workflows to avoid as much as possible the interaction in the production activity, colleagues who are in the office working together with those who are working from home, online meetings instead of face-to-face, different break patterns within the same department, keeping distance, disinfecting hands both at the entrance and exit of the plant and disinfection of common work equipment, are only some of the challenges of 2020 in terms of organizing the company in the current context. Of course, another important challenge is to maintain profitability and ensure the necessary resources so that the activity of both plants does not suffer.

During this period, the cost reductions appeared indirectly because within the KIRCHHOFF Group, all trips were cancelled and all meetings with suppliers or customers were organized online. There were also other reductions associated with the current level of production.

What priorities have you set for relaunching / developing the business in 2021?

Our main priority is to create a safe working environment. Thus, we ensure the continuity of our operations and the certainty of on-time delivery to our customers, at the required quality and standards.

We have continuous improvement programs that help us streamline our current business and minimize losses in the production flow.

In terms of business development, we analyse both the local and Eastern European markets and try to attract as many customers as possible from the automotive industry and beyond. It is a long process, but I am convinced that we will succeed.