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TES VSETÍN, market leader in generators for small hydro power, supplier of components for electric rotating machines and industrial automation has announced plans for 2016.

TES VSETÍN plans sales increase of more than 12% in 2016.

We entered 2016 with great optimism which is not based on fortune but on hard work and commitment of all our employees. Based on 1Q outlook, we expect the reality will exceed our expectation and sales will be higher than planned. The biggest contributors to that come from service of electric machines for refineries and components for marine motors and generators for Russian market. This confirms that our focus on new market segments in 2015 was correct" stated company’s CEO David Bečvář.

TES VSETÍN invests in future.

This year TES expects three significant new product launches on the market. The first one is delivery of permanent magnet motor prototype to a significant producer of cableways with annual market potential exceeding CZK 100 m. The second important achievement is so called Cold Test for major car producer. The Cold Test is ecological technology enabling testing of combustion engines without starting. The third important event is signing contract on generators development and manufacturing for a Canadian customer. Value of this contract will exceed CZK 60 m and it will be supply of the largest generators of TES production ever. The expansion on the market of electric machines would not be possible without investment into the latest testing technology concentrated in the new Prototype Centre.

"Our investments into the sales network development pays off. More than 80% of TES sales are exported to over 30 worldwide markets compared to few European markets severed some five years ago. One of the most important market today is North America." stress Bečvář.

TES VSETÍN last year finished its two years project to modularize production of electric machines. The project delivered state of the art product line called Nextgen bringing benefits as shorter time to market and optimised utilisation of materials.
Great success was delivered also by division of industrial automation in automotive industry that reached record sales of CZK 260 m overrunning plan by more than 25%.

In 2015, we worked hard to optimise our processes and to acquire customers from other industries e.g. customers providing backup power sources for data centres and those in growing market segments such as wind power. Overall expected impact of these initiatives to increase in 2016 sales is more than CZK 200 m in comparison to 2015. Optimisation of processes resulted in decrease in working capital need with positive impact on CF as high as CZK 90 m" says Bečvář.