LISI ANNUAL REPORT 2009
A changing landscape
The financial, economic and social crises
combined with new environmental
regulations have had a dramatic impact on
the status quo in the automobile market,
both in terms of product mix and the
organization of our clients, competitors
and suppliers. Specialists have particularly
suffered, to the benefit of non-specialists.
There have also been deep structural
changes. China has taken the lead as the
largest international market. Acquisitions,
mergers and alliances are on the increase
among historic manufacturers, while the
new Chinese players are building up their
new-found expertise. Some of the big
component manufacturers in the industry
are in difficulty.
Remarkable cash management
In this extremely difficult environment, LISI
AUTOMOTIVE’s teams have focused their
efforts on cash management, reducing
stock levels by 32% – corresponding to a
value of €30M – and drastically adapting
all spending items, without compromising
strategic investments. These measures have
enabled a remarkable improvement in the
Free Cash Flow of nearly €20M compared
to December 2008.
Constant improvement in quality
LISI AUTOMOTIVE continues to significantly
improve its performance in terms of
quality. In 2009 we reduced client
complaints by 25%, the level of parts per
million by 40% and our non-quality costs
by 15%. Furthermore, we renewed our ISO/
TS 16949 automobile quality certification,
which now covers all of LISI AUTOMOTIVE’s
sites in the world. This «corporate»
certification enables LISI AUTOMOTIVE
to guarantee clients the same quality of
service whatever the origin of the delivered
products.
A stronger industrial tool
Despite the crisis, LISI AUTOMOTIVE has
maintained its choices in terms of industrial
investments. In the Czech Republic, a new
4,000 m² building, added to the industrial
site in Cjec, will accommodate the activities
of the Brno and Koryjany sites in 2010,
equipping LISI AUTOMOTIVE with a high
performance industrial complex to serve
component manufacturers present in the
region.
In France, LISI AUTOMOTIVE reinforced
control of its industrial processes
through the integration of value added
technologies. In this context, LISI
AUTOMOTIVE has invested in an additional
heat treatment oven for its Delle site with a
capacity of 600 kg/h, thereby substantially
reducing the need to use subcontractors.
This acquisition comes as part of the site’s
Lean Manufacturing project. The oven
produced its first test parts in January
2010 with a view to production starting in
February 2010.
HIGHLIGHTS
40
A NEW PLANT
IN THE CZECH REPUBLIC
LISI AUTOMOTIVE Form a.s.’s activities
are spread over three sites in the Czech
Republic: Cjec, Brno and Koryjany.
LISI AUTOMOTIVE Form a.s. has
acquired an international dimension and
reputation. Guide rods for disc brakes and
axes for seat mechanisms are the main
products that are manufactured. They are
distributed in Central and Eastern Europe,
in North and South America, and in China.
In order to manage its development,
LISI AUTOMOTIVE has taken the decision
to invest in the construction of a new
4,400 m² factory, adjoining the factory in
Cejc, rationalizing all of its production
in the Czech Republic on a single site.
Production is planned to start in April
2010.
