Fermit outsources transportation

Automotive component manufacturer Fermit Buzau has decided to outsource its transportation, maintenance and mechanical processing operations as of this month. To this end it will establish three separate trading companies. Through this move the company”s management hopes to make its manufacturing processes more efficient and get better control over costs. “We decided to externalise these operations to be able to give these companies the opportunity to expand their service portfolio and customer base, which will help make their business efficient,” explained Iuliana Balan, Fermit”s marketing manager. “These steps will lead to Fermit SA providing lower cost services, with the final goal being to cut production costs for the friction materials and airtight packing,” she went on. Fermit posted 35.3 million RON (9.75 million euro) turnover in the first nine months of the year, employing 340 people. The decision to outsource and install better equipment led to a reduction in the number of employees by 50%, from 698 in 2004. ZF