Revived company spirit and bright future
After the merger of British Steel and Dutch Hoogovens, the new company Corus decided to divest itself of Cirex (the Netherlands) and Tatrarex (Czech Republic). Both produce precision parts for the motor industry. Both companies were making heavy losses and suffering declining sales. As a result, the workforce was demotivated and the parent company had lost interest in this relatively small operation. Cirex’ prospects looked bleak – until it called in Nimbus. It saw the company’s potential and was prepared for a long-term commitment.
The Nimbus approach has been based on financial restructuring and strong sales support. Nimbus was already involved in several component companies supplying the motor industry. Through these ties, we were able to bring in a new sales management team virtually overnight and to develop new customer contacts. Nimbus realised that it was essential to create a production focus. The Dutch operation was overhauled to concentrate on jobs that could largely be automated. Much effort went into the construction of a new Czech plant, focused on high quality and efficient output.
A new sales strategy was implemented, positioning Cirex as a “co-maker” for the European motor industry. Finally, cost levels were reduced and productivity boosted. As a result of these efforts by Nimbus, Cirex’ turnaround has been rapid. Break-even was reached in only about nine months. New sales projects for the major car manufacturers in Europe were pulled in: these increased sales by 25 per cent and profitability has been restored. The recent investment in a brand new production line in Almelo illustrates the revived company spirit.
More information about this case?