The North American expansion

One of Fredrik Mölzer’s childhood friends, Erik Zetterqvist, started assembling latches at Industrilas when he was young. During the early 21st century, Erik moved to Mexico to study. He ended up staying, whilst keeping Industrilas close to his heart. As Erik was working as a Supply Chain Manager at an electronics company, he discovered processes and details that were applicable on Industrilas’ production chain. He reached out to Fredrik and they started investigating the market. Industrilas partnership with Allegis Corporation was well established at this time and many of their joint customers were already moving their manufacturing to Mexico. It felt only natural that Allegis should be a part of this journey, too.

“We came up with the arrangement together with Allegis and then we just went for it. Allegis was responsible for selling and Industrilas for producing. Since I already had knowledge about the market and lived here, the start-up was smooth”, Erik says.

Immediate success

In 2006, the expansion and production facility in Mexico was ready. Erik had a small team by his side, and early on they landed an extensive project in the transportation industry. This resulted in a profit for Industrilas Americas the very first year.

“We had a real kick-start with the large project and that gave us time to find more customers and build the business. Klaus Mölzer, Industrilas founder, was a bit worried in the beginning and thought that we were moving too fast. But it turned out that Fredrik’s gut feeling was right. And looking back at everything, it was definitely the right decision to expand with a production site in North America”, Erik says.

The production facility in Mexico is a very important part of Industrilas’ business. The country produces and supplies the North American market with massive volumes. About 60% of everything that is produced locally remains in Mexico. It is delivered to international businesses operating in electronics, telecommunication, transportation and ventilation. Shortly, Industrilas Americas will have a brand new and larger factory, which will bring even larger volumes and increased sales.

The Southeast Asian expansion

As the production in Mexico commenced, Industrilas were also looking to increase the accessibility towards the Indian sub-continent and the customers in Asia. The search for a permanent base in the region began 2005 and after extensive research, the choice for expansion was set on Sri Lanka. Two years later, Industrilas begun the development of Industrilas Asia. Right of the bat, Sugath Basnayake was employed as Logistics Manager.

“At first, we renovated the facilities and started to build the brand. And while the machines were set up, we started to recruit and business took off. It was easy to find competent co-workers that wanted to work with us. And the fact that Industrilas was locally represented enabled close and straightforward communication and logistics with our customers”, Sugath explains.

Industrilas Asias’ customers are spread out across Asia and Sugath works closely with the sales team in India, where a lot of the manufactured products in Sri Lanka are distributed. One of Sugaths priorities, and challenges, is to make sure that the international logistics runs smoothly.

“It is essential that we have the components on site so we can meet the customers deadlines. And since it can be time consuming to get everything together, I have made it one of my hobbies. If I do not spend time following orders, shipments and international logistics, it can have a negative impact on the customers. And the customers always comes first”, Sugath says.

The importance of belonging

To maintain the sense of family and camaraderie has always been important for Industrilas, regardless of growth and expansion. Both Erik and Sugath agree on the benefits of implementing the Swedish, democratic culture in their respective teams.

“You can tell that our way of working is appreciated and that it is one of our strengths. Klaus vision about people coming first has enhanced with Fredrik in charge”, Erik says.

Sugath agrees and is proud to be a part of the growing Industrilas family.

“It is wonderful to work with a Swedish company and kind people for so many years. I am happy and grateful that I was given the opportunity. Being part of a well-functioning and market leading organisation is huge”, Sugath finishes off.