Sister companies growing together
They manufacture the same kinds of technical products from plastic but use different techniques. With their respective production methods, the sister companies Cipax and Blowtech are able to offer optimal solutions for large and small volumes alike. By working together, they are generating increased business benefit along with their customers.
“Blowtech and Cipax are able to produce more or less the same types of products for customers with a similar profile but using different production techniques – blow moulding and rotational moulding. In simple terms, Blowtech is the right solution when you want large production runs, while the Cipax method is better suited for smaller runs. We see considerable potential in our collaboration. Working together, we can increase the business benefit through the potential to help customers all the way through the process, regardless of the series volume,” says Magnus Karlsson, Managing Director of Blowtech.
Cipax has been part of the Group since the 1990s, while Blowtech joined in 2018. The companies are now working together to satisfy their customers’ needs in the best possible way.
“The customer would previously have contacted both of us to obtain separate quotes, and we would each have worked individually to arrive at the most beneficial solution for the customer. We now work together to achieve the optimum delivery for the customer, regardless of the production technique and leaving aside which of us received the original enquiry,” continues Magnus Karlsson.
In projects where the volumes are uncertain, such as a new product or establishing operations on a new market, the collaboration creates an opportunity for the business to remain within XANO – from initial prototype to large-scale production.
“This results either in a higher investment cost with a lower production cost if the project is anticipating large volumes. Or a lower investment cost if the project is anticipating smaller volumes. Our basic idea is to take in the project as a Cipax project, with small volumes and low investment costs. Then, as things start to grow, we adapt ourselves according to the product’s forecast volume. As the volumes rise, Cipax can pass the project over to Blowtech. In this way, we are able to retain the business within the Group,” considers Magnus Karlsson.
Training and networking are keys to increase knowledge about each production technique. In a sales and networking collaboration, the companies train each other to become more skilled at presenting the most beneficial offering to the customer.
“It can be perceived as difficult to allow a different player to join a functioning customer relationship. For this reason, it is important for the sales staff to get to know each other, to conduct some form of continuing dialogue in addition to the communications that take place during ongoing projects. A natural interaction, where we build secure relationships between the companies and are constantly reminded of each other, is an important element in getting the collaboration to work. The closer the contact we have, the easier it is to pick up the phone and discuss a project,” concludes Magnus Karlsson.