Dear colleagues, customers and business partners,
In mid-August, it was 15 years since I became the owner of KAVALIERGLASS, a.s.
All in all, this company has been around for 187 years, and compared to that, 15 seems like just a moment. But 15 years is a long time in everyone's life, and we've seen good times and bad times together.
I have mentioned several times that my decision to buy the company was not just based on economics. The feeling and intuition that told me that the glass industry has a huge value and a future and that I personally fell in love with it was also important. This is what happened, you know that I am actively interested in all areas of our company, you can meet me personally several times a week directly in the factory.
An important part of my business was, or still is, the companies that I have gradually bought in support of Kavalier, both in the Czech Republic and abroad (Bohemia Cristal, Kovopol, Bělá, Waltherglas, Ilmaborglas, Termisilglass). All of these acquisitions have been of significant benefit to us in terms of synergies, experience, insight, and access to different technologies. By integrating all these entities, we have expanded our product portfolio and gained new customers and market shares.
Over the last few years, we have had to face some really big challenges as a company. I want to mention the impact of COVID-19, the war in Ukraine, the energy crisis. Of course, as a manufacturing company operating in one of the most energy-intensive industries, we have been hit quite hard by the rising prices of electricity, gas and other inputs.
We had to change our mindset and together do our best to ensure that the company could continue to operate successfully and show satisfactory economic indicators.
It was necessary not only to invest in machinery and equipment but also to finance the increase in stocks of semi-finished products, finished products, components, as well as refractories for the overhaul of the furnaces. I know of no other company where they have been able to react so quickly to changes in demand and relocate production technology and lines to adjust production capacity with minimal cost increases.
Internal organisational changes were not enough to cover the dramatic price increases of all inputs. We had to increase selling prices in parallel, by tens of percent.
To ensure the desired results, investments have also helped us. We invested more than CZK 100 million in machine lines. We bought a new 20-position press for the production of medium and smaller assortments. We rebuilt two 16-position presses and overhauled vans four and nine, including major investments in blow moulding lines. We added an additional machine to our printing department.
New semi-automatic workstations with significantly higher productivity are in operation at the glassblowing plant.
In light of the development of electricity prices, we have further invested in the construction of photovoltaic power plants. We have invested more than CZK 220 million to build 12.5 MWp of green energy sources. We continue to reduce consumption through technical modifications to our production facilities.
It is precisely this flexibility and determination that you have all shown that has helped us through a difficult period and, above all, provides the basis for the successful operation of the company in the future. For this, I owe you all great admiration and thanks.
In the present turbulent times, no one can rest and be satisfied with the results achieved. It is very difficult to predict what the next global, and especially European, development will be. We must not slacken in our activity; on the contrary, the optimisation and austerity measures we have set ourselves must be continued with even greater effort from all of us. It is necessary to keep thinking about the possibilities of improvement and streamlining across the company.
Large customers are looking for the cheapest suppliers for their products. Despite supply problems during COVID-19 and subsequent shipping problems, they are once again turning to Asian suppliers, often for just a few cents difference in price.
We, as a European supplier, will continue to take superior care of our customers. We will continue to be a stable partner for many years. A partner with a strong financial background, our development. A partner that is honest, does its job well and has something to offer its customers.
I firmly believe that we can handle this situation, we must mobilise all forces and fight together.
I want to thank not only the management team, with whom I am in close contact, but all of you who work in our company. You do a tremendous amount of work together, let's wish each other enough drive, strength and opportunities to develop the company further and continue its successful operation.
My thanks also go to our customers and business partners. Please stay with us; you are the essence of our work and efforts.
Otakar Moťka
Company owner