Axioma Metering is investing €40 million in the construction of a new plant in the Kaunas Free Economic Zone (FEZ). The company plans to employ 300-400 people at the new plant, which will be fully operational in 2024. In addition, the company plans to recruit 100 employees later this year. The four new production lines will enable the production of around 4 million smart meters per year. The new plant is scheduled to be fully operational in 2024. 70% of production is exported.
The CEO admits that the business, which is based on technological innovation, has faced unforeseen challenges: with China closing off practically overnight and supply chains disrupted, the company’s meters could not reach on time customers in 60 countries. Earlier, the company announced that it wants to record an €82 million turnover in 2022.
“We never stopped, but production was slower, and we looked for ways to get back to our normal pace. On the one hand, the result is encouraging, but on the other hand, technological development and the market situation had us expecting much more,” says Ignas Vosylius, CEO of Axioma Metering.
In 2021, the company received €1.93 million in net profit, when in 2020 they had earned €1.6 million, according to the data of rekvizitai.lt.
Sustainability-focused product
Mr Vosylius recalls that in July 2021, the company was on track to reach their 2020 sales, but the electronics market suffered a hard blow: “We started to experience a cut back on processors, which are the heart of electronics. So, we had to re-plan and re-prioritise. Only recently have we started to stabilise our supply chain, and after the disruption of exports to China (10% of the company’s production used to reach the Chinese market), our Taiwanese friends helped us find strategic supply partners in Taiwan.”
According to the CEO, the most important thing is that the ultrasonic meters reach the customers, who have been very patient with delayed orders − a technological revolution is taking place in the market for smart heat and water meters.
“Recently, global warming and resource saving have become increasingly important issues. This dictates the need for more precise technologies to help manage the whole infrastructure. For example, in London and Rome, around 30% of water is wasted. It is lost through leaking faucets, pipeline accidents, and response times are critical in these cases. We need real-time information; we need to monitor consumer behaviour. In 2−3 years, the ultrasonic tools that we develop will be the market standard,” says Mr Vosylius.
Investing in technology pays off
According to Mr Vosylius, growth should be more of a philosophy than a short-term goal. It is important to distinguish between situational management measures and strategic objectives.
“We swallowed a bitter pill, we have had financial losses, but now we are proud of a second production line, and a week ago we received the building permit for the new plant, which is due to start construction in a month. It is important for us to know why we do what we do. In my opinion, the best results will come from companies that take advantage of the stagnation and slowdown to strengthen their long-term competitiveness. We invest in both technology and new product development,” he says.
Five years ago, the company mainly produced heat meters, but then saw an even greater need for water metering equipment, thus they decided to invest in automation and robots. According to Mr Vosylius, this allows a high level of quality to be achieved and maintained.
“Our product, powered by two AA batteries, has been transmitting data three times a day for 16 years with an accuracy of milliseconds. It’s accurate because its ultrasonic, but it also has to be durable,” he says.
In his opinion, the decision to not pursue short-term goals and to invest in technology has paid off: compared to other similar companies, the workforce here is very small, highly automated, and with very little mechanical work left for humans.
Using creativity to compete on the job market
Although few mechanical jobs remain in the company, the situation in the labour market remains difficult. Mr Vosylius explains that attracting highly qualified engineers is made easier through a slight “chaos” and a sense of patriotism.
“We have everything under one roof. From dreaming out loud at a meeting to actually making something, creating a product, intellectual property. It is a 100% Lithuanian product, which is making its way into leading positions not only in Europe but also in other countries. A sense of national pride is important to me. And I believe it is also important for those who work here,” says the CEO.
Source: Verslo žinios