The American way in Ploiesti

Every three years, the management of the USA-based Timken Group visits one of its productive capacities outside the US. The choice is usually based on the results of the branch in question. Results which have to please the shareholders as much as possible.

It was a big surprise for Timken investors when they found out that the 2000 turnover of the group’s branch in Romania had practically doubled as compared with the previous year.

Along with the divisions in Poland and China, the Romanian branch turned out to be a real success for the world’s leading bearings maker. The positive results were possible due to the cheap workforce and the typical Romanian intelligence.

The Timken Board is to visit its branch in Ploiesti in June for the second time. The Romanian subsidiary management says that this decision is another proof of the success registered in Ploiesti.

All the more reason, since Timken has found itself forced to downsize several productive capacities in Western Europe, Asia and Australia over the past few years. The competition is getting fiercer and the steel dumping problems are growing more obvious, as well.

Until such visit takes place, Michael L. Johnson, Timken’s communication vice-president, has come to Ploiesti for a preliminary inspection. He wanted to make sure everything was in place and that the Romanian employees were not preparing any surprise.

“Except for some minor details of a rather technical nature, I think the business in Romania can stand comparison with that in America or in Western Europe in every respect,” Johnson says.

Moreover, the Timken official’s visit overlapped with the end of the transition period at Timken Romania and with “instituting” the American business mentality.

Six months ago, Timken’s Romanian branch entered an extensive transformation process. Three years after the company had taken over the controlling interests in the heavy bearings factory in Ploiesti, it was high time for a change of mentality. The business had to be done the American way.

“This change started towards the end of last year and connects the work performance with the change of mentality,” says Rory Lubic, Timken Romania general manager.

The first stage of an evaluation process of the managerial skills of the management in Ploiesti was carried out in October 2000.The evaluation was a result of the transformation stages in the entire group in 2000.

“Our idea was to especially focus on the needs of the clients while developing our productive capacities. 150 employees were evaluated in a centre outside the factory over two weeks by using several tests and practical problems,” Lubic explains.

For Timken Romania, transformation also means complete integration in the global business of the company.

“The most important clients worldwide and interested in buying bearings visit the factory in Romania, are very impressed with it and feel they can do business here as anywhere in the world,” Timken general manager adds.

“The products made in Romania are already in demand from clients from all over the world.”