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| IRCs swing into action when the heat is on |
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For the second time, the Northern Swedish and Bulgarian IRCs have helped SMEs in their respective countries to come to a technology and commercial agreement. Techniques developed by the Swedish partner have helped the Bulgarian company cut production costs drastically, and may even have saved it from going out of business altogether.
In August 2001, Ola Hugosson received a letter from a technician working for Swedish furniture giant IKEA, in Bulgaria. One of their suppliers was having production problems, and the technician believed that Mr Hugosson's company, Swedish SME Palskog Innovation, could have technology that would help them. Palskog are recognised experts in the field of wood forming. The Bulgarian SME, Traina Plast, was manufacturing trays made from layered wood veneer, using a high temperature forming process. Their problem was that the existing manufacturing technique was leading to wastage of 40% or more, due to deformations caused by internal stresses induced by the forming process. Trials with different types of veneers, orienting the veneers in different ways, and using alternative materials for the moulds - including wood, polyamide and aluminium - all came to nothing. The rejection rate remained stubbornly high, and the company was fast running out of ideas as to how to improve the situation.
An SME in danger of failing completely
Mr Hugosson's first move was to contact Monika Brynefall. Ms Brynefall works for the IRC Northern Sweden, based at the University of Lulea. "It was natural for Mr Hugosson to get in touch with us," says Ms Brynefall. "We had worked successfully with Palskog on a previous technology transfer project. By coincidence, this was also to a Bulgarian company, but the two projects were unrelated." Ms Brynefall immediately informed Angel Milev, of the Bulgarian IRC, of the technology request. He, in turn, contacted Traina Plast and arranged to visit them to carry out a technology audit. This he duly did.
The results made for grim reading. The scrap rates were indeed as high as the figures indicated by the IKEA technician. The company were struggling and were unable to control costs. There was a real possibility that, unless they could bring wastage down to acceptable levels, they could go under.
The rapid reaction force swings into action
Mr Milev sent the results of the technology audit to Ms Brynefall, who passed them on to Mr Hugosson. "He understood the problem immediately," says Ms Brynefall. "He also believed that his company had the technology to solve it." If Traina Plast was to be helped before it was too late, however, a rapid response was required. There was simply no time to lose.
"We were at Traina Plast just two weeks later," says Ms Brynefall. "Mr Hugosson brought equipment with him and testing began immediately. He believed that an electric mould surface heating system would give more uniform temperatures that Traina Plast's existing high frequency technique." He was right. Over two days, tests showed that rejection rates could be cut by up to two-thirds.
It soon became apparent to all concerned that a technology transfer agreement was the order of the day. During the negotiation stage, both IRCs were on hand to advise the SMEs, and to interpret. "Indeed," says Ms Brynefall, "even Mr Hugosson's initial visit would not have been possible without IRC help. We made the travel arrangements and were able to help with Mr Hugosson's travel expenses."
A key role in safeguarding SME jobs
The end result was that the two companies signed technology and commercial deals. Palskog Innovation are supplying equipment and acting as technical consultants to Traina Plast. "We know that they are working well together, because we receive copies of all the e-mails they send each other." says Mrs Brynefall. "It is very gratifying to know that the IRC played a key role in encouraging this flourishing relationship." Perhaps even more gratifying is the knowledge that, without this intervention, the firm could easily have slid into bankruptcy. As things stand now, the Traina Plast has just kept a lucrative 500,000 euro contract to supply IKEA with more items, and the forty jobs at the plant have been safeguarded.
There is one brief footnote to this story. While on the factory floor, Ms Brynefall noticed that the noise level was very high "It would have been pretty hard not to notice, to be honest," she says. "We had to shout to make ourselves heard." She also realised so as to none of the workers was wearing ear protection. She made a mental note to do something about it and, on her return to Sweden, called a few of her SME contacts. "They agreed to supply ear protection free of charge," she says. "They have just been delivered to Traina Plast, so hopefully, the shop floor workers can at least hear themselves think, and do not risk industrial deafness."
There is more to the IRC than simply brokering technology agreements.
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