Project Designation: Innovation Production Process and Production Diversification
Project No.: 18058
Project Code: NORTE-02-0853-FEDER-018058 / NORTE-06-3560-FSE-018058
Main goal: Strengthen the competitiveness of SMEs
Intervention region: NORTE
Beneficiary entity: ADIFAFE – ACESSÓRIOS TEXTEIS, LDA
Approval Date: 02-11-2016
Start date: 01-04-2016
Completion date: 31-03-2018
Total eligible cost: 763.216,00 €
European Union financial support: FEDER – 529.332,30 € FSE – 4.918,90 €
Objectives, activities and expected/achieved results
The company’s objectives include:
– Radically innovate different stages of the production process, namely:
– Line production sector: increase in production capacity by 5 times; reduction to a single production phase; full automation.
– Trimmings production sector: the addition of a phase of the production process will be promoted, with the innovation of a continuous finishing process and elastic contraction that will guarantee that it will never widen or contract. 100% increase in quality; compliance with the most stringent international requirements in terms of elastics; innovation and obtaining comparative advantages compared to the competition that generally does not have this stage of the production process and is no longer on a par with us. The production of a new product will be promoted, cords with a tip by crushing in wax.
– Storage / shipping sector: automation in 100% of the packaging of tapes, cords and elastics (currently the process is manual); increase in storage capacity and space for transport by about 50% due to greater precision and assertiveness in packaging, which reduces the size of boxes by 50% to pack the same amount of products; 100% speed growth and necessarily productivity.
– Create two new business / production units:
– Production unit for twisted / braided cords: creation of the unit for twisted cord with 3 cables, which will be the first at national level; full automation; improvement in overall gross margin indicator by 5%; diversification of the target market segment, being able to sell also to the footwear sector, including here the acquisition of machines for the production of tips, for cords, in plastic, metal and by heating.
– Metal closures production unit: creation of a new production unit for the production of metal closures (currently only produces plastic and invisible closures); fully automated line; it will enhance the increase in exports as it is something that is highly sought after internationally; it will become the only company at national level with the capacity to produce and apply the tape, the fastener and the cursor; control and expansion of the value chain.
In general, the goals go through:
– Increased production capacity by more than 200%
– Innovate and automate the entire production process
– Profitability growth measured by GVA growth of more than 470%
– Raise the VBP by nearly 84% compared to the pre-project as a result of the planned investment
– Bet on nearshore operations
– Increased quality of the final product
– Product diversification
– Betting on mass customization and custom made
– Increase in total turnover (VN) by more than 284%
– Assert itself internationally as a reference manufacturer and as a potential player in nearshore operations promoted by multinationals in the sector
– Investing in new marketing models and techniques, either through specialized consulting or through professional training, ensuring increases in brand and company recognition and recognition of around 50%
– Diversify markets and market segments with privileges to the foreign market, with the expectation that it will represent more than 65% of the Total VN in post-project and allow reaching new, more advanced markets such as Sweden, France, Spain, Holland, England.
– Raise organizational competitiveness and innovation, either through specialized consulting or through professional training that enhances innovation processes in 100% of management processes
– Strengthen the staff, growing more than 70% compared to the pre-project
– Product differentiation and range of products that allow entering new markets and diversifying market segments
– Extending the positioning and control of the value chain