Despite its size – with 140 staff members, Saluxto is an average middle-sized company – and with only eleven years in the market, the company seems to have taken the right decisions to make it to the top in the injection-moulding industry.
Certainly, the long-term cooperation with Electrolux, for whom it produces vacuum cleaner back covers amongst other things, has supported the upsurge in recent years. “Today, we supply all vacuum cleaner manufacturing sites in Hungary. A normal vacuum cleaner consists of four main components – dust bag, engine, head and cord winder. On average, one vacuum cleaner is produced every 14 minutes, and we supply one of the most integral parts,” points out Managing Director András Árvai, who started the company in 2007, and has a strong background in electronic engineering.
“I just entered the market at a time when Electrolux was looking for a supplier of cord winders for its Hungary-based production site. I seized the opportunity and won the tender. This was the starting point for Saluxto.”
The company chose Engel as a supplier of injection moulding machines and was able to acquire a large 20.400 m2 production site in Ságvár, which involves a production area of 2.600 m² and a manufacturing hall of 2.800 m² where it could host the new production machinery.
“We first got a two-year contract with a guaranteed purchase of 500,000 cord winders. This number was increased to one million, and today we supply two million parts,” stresses Mr. Árvai. “Currently, there is a clear trend towards 2k or ‘two-shot’ injection moulding, which consists of processing two different polymers or two different colours of one polymer into an end product by means of one injection moulding process. Even 3k - ‘three-shot’ – injection moulding has become a standard process. We have already started to acquire this latest technology for use in our production. And, as the current Hungarian government supports these technologies, it will no doubt increase in the coming years. For Electrolux we already manufacture 2k wheels.”
Saluxto produces 90% of its cord winders and vacuum cleaner back covers for Electrolux, while the other 10% are made for smaller customers. “Some might consider this a disadvantage but we have all the know-how in-house,” says Mr. Árvai. “However, we will work hard on acquiring new potential customers to diversify our production and customer base. We have introduced a special spring rewind for use in cord winders.”
“We are going expand our 2k production which incorporates huge potential for further diversification.” András ÁrvaiManaging Director
Another topic will be the combination of injection moulding and assembly in view of the 2k technology. Here, Saluxto can rely on its substantial experience, which is a good basis for more complex production. It has developed into a middle-sized company generating an annual turnover of 3.3 billion HUF. With another 530 million HUF generated by its subsidiary that specialises in 2k wheels, Saluxto’s total turnover amounts to almost four billion HUF.
“With regard to our quantitative vision, we are striving to reach a figure of 200 staff members with a turnover well above four billion HUF,” states Mr. Árvai. “It might become necessary to further diversify and set up new subsidiaries to meet growing demand in various product groups.”
When it comes to its vision for quality, Saluxto is well prepared to implement new production systems and push productivity. “This is where the human factor comes in. My two daughters and my son are already involved in the company’s proceedings and I am optimistic that they might join the company,” says Mr. Árvai. For him, the well-being and involvement of his staff is of equal importance. Promotion and constant training are essential to keep staff motivated and boost productivity.