People in the Know: A company more famous than its country

Trimo is better known to European businessmen than the country from which it comes. It is difficult to imagine that the company from tiny Slovenia can be present in more than 50 countries, and carries out more than 400 projects a year. In Russia Trimo has constructed a sandwich panel factory in Kovrov and are now realizing a project for Vyazniki industrial park in the Vladimir region costing 140 million euros. Damir Kochan, managing director for Eastern Europe Trimo, and general director of Technopark Vyazniki, considers that the crisis will not prevent it completing the project, though there may some extension to the deadline.

When did your company enter the Russian market?

Our company has worked with Russia for more than 20 years. Cooperation began during Soviet times when Slovenia was part of Yugoslavia. At that time it was impossible to work from the USSR directly, and Trimo operated through special companies in Yugoslavia, that had licenses to work with the Soviet Union. But since then people in the company have remained the same. I have personally worked at Trimo for 10 years and from the very beginning in Russia. Now we have more than 300 people working here, and have 12 representative offices: in Moscow, Kazan, Ufa, etc.

When was your company established?

Trimo was formed in Yugoslavia for the production of metal constructions in 1961. Since then we have considerably grown. The turnover of Trimo in 2007 was 235 million euro. We have more than 1,100 staff in 50 countries of the world. The company constructs buildings from metal constructions, makes front roofing panels, and sound-proof, fire-resistant, heat insulating sandwich-panels, etc. In the last year production under the Trimo brand has been exported to 54 countries.

We have won many international awards which confirm the quality of our production and premises. In particular, in 2007, we became the first Slovenian company to win an award in a category of the prestigious European Fund of Qualification of Management awards. In the final there were 18 companies, including Philips. Special inspectors came to the company, to our premises and could access information. On the basis of their conclusions a final decision is made. It is a serious competition, and not easy for the participants.

Do your awards help in business dealing?

The ideology of the company means that Trimo comes to this or that country for a long time, business strategy is also developed for a long-term period. We want to be the best and we compare ourselves to the best. Awards are a good indicator of how a company works. Gradually around you partners that aim for the same quality and greater prospects gather. As a result, at negotiations with clients it is sometimes discovered that people know about Trimo but not Slovenia. In the world, we have a better image than our country.

Has the fact that the company is from Slovenia affected your activity?

Yes, of course. Slovenia is a small country; the Adriatic Sea is only an hour’s drive from the capital. We could never win by quantity or numbers in any business. Our strategy and our advantage is only quality. We can compare in any sphere, for example, we have very good wines, not worse than in France, though also less known.

What difficulties do you have working in Europe?

There is the European Union, but no unified European standards in our sphere of business. Every country has its own. Trimo has more than 25 enterprises and representations across Europe: and in each country we have received all the relevant licenses and certificates.

How many projects do you have?

We have more than 400 projects a year. In Russia we work from Kamchatka to Kaliningrad. We build everything except for housing: offices, retail premises, warehouses, industrial workshops, sports buildings, airports, etc. One of our continuous partners is IKEA and we have made complexes for them in England, France, China, and in Russia - in Kazan. In Moscow we have bought warehouse terminals for them. Another of our projects in Moscow is the Metropolis complex. A current project is the Kashirka Hudson with participation of the government of the city, and we are building showrooms for Mercedes-Benzes, Infinity, etc.

What part do you play in the projects?

Various. Sometimes as suppliers of materials and technologies, sometimes as the general contractor. At the moment we are developing new products which we offer in the market. For example, so-called super smooth panels, without an external steel sheet from which we are currently constructing a hangar at Vnukovo airport. We have our own TrimoRaster technology, which makes a façade look like one continuous wall though actually it is made from panels. A continuous facade is an expensive pleasure - it is necessary to be built from brick or concrete, plastered and heated. TrimoRaster allows for panels to be hung from the main columns. We used such facades in the Metropolis, Kashirka Hudson, and car showroom projects. We are actively developing fotovoltaic - a roof covering which makes energy.

Does every building have its power station?

In Russia you don’t feel it yet but all over the world there is already an energy crisis, everyone is saving energy, and looking for ways to use solar energy. In Europe such technologies are bought. Governments stimulate private investors to install energy efficient systems and materials. The fotovoltaic roof makes energy, which the owner of the building can then sell to the government at a known, fixed price. Thus, the proprietor understands what income he gains from the installation of such a system.

It is quite unlikely such technologies will be in demand, just for the climate alone. There were only two solar days last winter.

Yes, only in Krasnodar could it be possible. In Russia in the last year we have started to be engaged in the promotion of automated tall warehouses. We are building such complexes across the whole of Europe. In Russia though they are not present.

We had some examples, but, as far as I know, there were problems with construction.

10 years ago in Russia there were no usual quality terminals, and now it will be the same with tall warehouses. The benefits of them are obvious: in a warehouse with a height of 24m one person works. Everything is automated and robotized; the person only looks at the control panel. Such a complex can be constructed on a small site; it only needs to be located in a place convenient for logistics. Significant savings are made on the cost of the land, and the payment for the worker.

Do you already have contracts?

We haven’t signed any documents yet but negotiations are being carried out. At this stage, I believe the main task to be to inform customers and tell them there is such a variant. To explain how such a project can be realized. When the economic situation changes there will be demand, and there will also be such projects. I am sure that this will happen in the future. In Europe we already build modular sports buildings but in Russia we still don’t offer them.

Has the crisis affected your business?

We haven’t lost any customers. But in the market there are less projects, we are participating in a smaller number of tenders, there are less competitors. From conversations with clients uncertainty is definitely felt, but it’s not possible to say that factories and projects are absolutely closed, this just isn’t happening. Of course we expect a reduction in demand for our production. Nevertheless our 25 enterprises across Europe enable us to strike a balance, not everything falls equally and all at the same time. We expect greater rates of development in Russia, the Emirates, etc.

During the difficult times in 1998 Trimo didn’t leave Russia?

Yes, we stayed, there were hard times for about 1.5-2 years, and then the market started to come to life.

There is an opinion that soon foreign investors will be directed to Russia. What do you think is the appeal of the local market?

I believe that Russia is a promising market for all of Europe. And, despite the present situation, your country has sufficient security. And the crisis will not freeze the economy like in other countries. I expect that foreign companies will actively come here. Do you know how in demand people with experience in Russia are in Europe? Believe me, such experts are in great demand. Many people want to talk with me, to simply consult me. Companies are very interested in how to come to Russia.

Which companies are interested in Russia?

Pharmaceutical, felling companies, many different types.

Are foreigners in Russia are afraid of that?

In the West there are a lot of stereotypes of your country: general ones are drunkenness, high criminality, etc., but we do not see any special problems peculiar to Russia. Every country has its own specificities. It is possible to note that here great value is placed on personal communications and contacts; many people don’t want to talk on the phone, to open information. People are used to doing what they’ve been told, there is no independent initiative. In Europe everyone is their own controller.

In Russia we have faced a problem with maintaining deadlines, and for Trimo it is very important to execute projects to promised deadlines. In 2001, when we opened the first factory in Kovrov in the Vladimir region, we had to search for mechanisms of motivation. We offered good salaries, higher than the average city level; we guaranteed stability; introduced bonuses for the best employees; the company carries out a social responsible policy - all this is very important for people. Before the crisis we also took a number of employees to European cities for seminars and training.

Why did you choose the Vladimir region?

Many western companies open production facilities in the Moscow region. This is a widespread mistake by many foreigners - to think that Russia is Moscow. In the Moscow region there are more problems with capacities, there is a big deficit of electric power, in this region there are some of the highest salaries, there are complex logistics, plus one specific problem - corruption and greater bribes. As a result, expenditures on manufacturing are considerably higher. I think that there is no sense to concentrate on the Moscow region. We chose Kovrov with the purpose of minimizing expenses, having good logistics, and the loyalty and support of authorities.

Why have you decided to build the Vyazniki industrial park in the Vladimir region?

We have worked in the region for six years and have proven to be a stable industrial company, participating in local agro-industrial programs. All this has allowed us to build partner relations with the authorities. We don’t need to pay bribes to carry out projects, we have mutually advantageous cooperation. The idea of a technological park came with the administration: the authorities are interested in foreign investors, new workplaces, and we are interested in expanding our business. For example, under a decision of the authorities, within the first five years of work, participants of the project are released from paying property and receive privileges in terms of profit tax. The site for the park is convenient from the point of view of logistics: the М7 Volga motorway is nearby, along the site the high-speed Moscow - Nizhny Novgorod passes by, and the runway of local airlines is located in Vyazniki (Semyazino airport in Vladimir). A separate railway track will be laid in the techno park. Here there are not many places where a deficit of capacities is a problem: there is gas supply (4,800 cub m/h), a water pipe (225 cub m/h), electricity (30 MW), and communication lines. For manufacturers this is extremely important.

Is your project initially focused on western business?

Any company can open a production facility in Vyazniki, but it is assumed that it will, first of all, be for foreigners. Businessmen come from Europe, Asia, the US; the Russian region is interesting to them, but they don’t know how to find reliable Russian partners, are afraid they’ll be deceived, etc. Trimo is known as a European company, the brand of which they know well. We have already passed through the thorns of Russian legislation and business dealing, we know the specificity of the organization of manufacturing. Not all foreign companies want and can test it for themselves. We are also building the techno park for them.

The project was presented in the autumn. Has anything changed to the concept since then?

Nothing significant. The completion time of the project remains the same - 4-5 years. In Vyazniki there will be all kinds of manufacturing, except for ferrous metals and dirty production. The accommodation of 15-20 large and medium sized hi-tech industrial companies in total are supposed.

Have you already signed contracts?

Negotiations were actively being conducted before the crisis and are now also taking place. I hope that already soon we will have our first customers.

Trimo (Slovenia) was established in 1961. Its primary activity is the manufacture of facade and roofing systems. Trimo currently has factories in Slovenia, Russia and Serbia. Trimo’s portfolio of realized projects totals 400 commercial projects a year. From them many are realized in the territory of Russia and CIS countries: Novolipetsky metallurgical factory, Stroifarfor factory, Yarneftekhimstroi (Yaroslavl), Uranium Mining factory (Shymkent, Kazakhstan), the National Logistics Company in the Moscow region and Novosibirsk, the Coca-Cola facility in Orl, Moscow’s KiN cognac factory, IKEA shopping centers Mega, Metro and Auchan, and also car show rooms of large global manufacturers, and sports and cultural centers in Moscow, the regions and other cities of Russia. Affiliated companies in Russia: Trimo Rus - sale of production; Trimo VSK – production of sandwich-panels; Technopark Vyazniki - construction of the industrial park.