AAGES (stock symbol AAG), a Romanian company with over 30 years of experience in designing and manufacturing heating machines for industrial systems, expands on the Egyptian market by signing one of the most important this year’s contracts, worth over 800,000 euros.
The ongoing works, to which are added those in the contracting phase, fully cover the company’s production capacity for the first semester of 2021.
The company ended 2020 with a turnover of over 5.5 million euros, 10% lower than 2019. The profit recorded last year was around 360,000 euros. Some of the factors that determined this path are related to the lengthy manufacturing cycles of the products, which, combined with the random distribution of contracts over time, can generate significant variations in turnover, even if the company’s activity is constant. In particular, in 2020, some delivery times changed due to the restrictions caused by the pandemic.
“Our long-term strategy aims at constant, sustainable growth, based on a healthy evolution. We are glad that the beginning of this year ensures our operation at full capacity in the first semester, through increased sales, on the foreign market, despite the difficult economic context,” says Gábor Molnár, General Manager of AAGES.
For over ten years, over 75% of AAGES’ production has been destined to export, with the company having contracts in 25 countries worldwide. The main country for export is Germany, from where AAGES facilities reach other countries such as Finland, Sweden, USA, while many products are delivered directly to Turkey, Hungary, Poland.
Recently, the company expanded to Egypt by signing a contract of 800,000 euros, one of the most significant agreements of AAGES in recent years.
“Egypt is a country where in the future is expected an increased industrial development, as in general in the countries of North Africa. We currently have installations delivered to Morocco, Tunisia and now follow the second delivery in Egypt, with a total value of over 10% of our turnover. Given that the economies of EU countries, and the world, have not recovered from the shock of COVID-19, for AAGES, which sales products used mainly for investments, the presence in new markets, with prospects, is a success and gives us reasons to be optimistic “, explains Gábor Molnár.
One of our short and medium-term strategic objectives is to increase production capacity by developing the chain of subcontractors, which offers a scaling of the business and greater flexibility.
“The most demanded equipment in recent years are induction hardening installations, a business segment where we successfully compete with well-known companies around the world, thanks to our team of electrical, mechanical, and software designers. The existence of the AAGES HTC induction hardening workshop and the Electroterm company within the AAGES group of companies provides a solid base for developing new technologies, strengthening AAGES’ position on this market”, adds Gábor Molnár.