KLS Ljubno d.o.o.

KLS Ljubno is a leading manufacturer of starter ring gears, signal rings and mass rings for engine flywheels used in cars, HGV's and mobile worksite machinery, as well as industrial rings for various industrial uses. The Company is a renowned manufacturer respected by automotive industry manufacturers and suppliers all over the world. In this specialised market niche, the Company is in the very highest echelon. Currently the Company is present on a number of foreign markets and in the most recent five-year period the Company expects to record a sixty-percent growth. 

In 1972 at the age of 26 years Bogomir Straško was entrusted with taking over the reins of the metal plant Gradbenik Ljubno, and was facing a major new challenge.

“When it was first proposed that I should take over the running of the plant, my first thoughts were that I would be closer to the peaks of the Savinja Alps and at the time I didn't give much thought to what challenges the new job might bring,” says Bogomir Strašek, remembering those early days. ”I was told that due to the high unemployment in the Savinja valley at that period, my task was to create as many new jobs as possible while at the same time not incurring losses. While I could see myself being quite capable of these challenges the reality was less idyllic,” adds Bogomir. Generally working conditions were very bad; as much as half of the production was done either in the open air or under cover of a barn with no heating during the wintertime. All the loads were carried by workers themselves as there was no machinery. “We worked extremely hard and saved even harder, although we did invest in training and education of new employees. In 1977 we had a total of eighty-seven employees and we were sponsoring a total of thirty-four students in a vocational college. Slowly and gradually our position improved,” continues Bogomir. With the major efforts of all involved,  by the end of the 70's the Company traded products across the whole of what was then Yugoslavia and other East European countries across the region, and later seeing successes also in the USA and Canada. They expanded their production programme and increased the workforce. ”By this time there were now 174 of us in total and we were constantly making profit.”

However, after Slovenia's independence in 1992, the Company was again battling major challenges. “We lost over ninety percent of orders as our customers folded up,” describes Bogomir, illuminating the dire situation.  Together with his colleagues Bogomir decided, despite those difficulties and severe shortages, to continue the Company’s operations.  

World-wide reputation

After several years of endeavour searching for orders across Austria, Germany and Italy, eighteen years ago it was decided that the Company would change its work orientation and thought processes.

“We concentrated our efforts and specialised our production and product ranges by focussing on manufacturing starter ring gears for the automotive industry,” explains Bogomir Strašek, adding that it was at that time that the Company assumed its present name KLS. Today KLS is well-respected throughout the automotive industry by manufacturers and supply-chain customers alike from all over the world; what's more, within their market niche they are at the very top as they supply more than 50 percent of the European market and 14 percent of the global market of starter ring gears.

'We caught up and overtook our competitors achieving this by dedication and hard work, by employing a local workforce, cooperating with Slovenian companies and by utilising Slovenian know-how,” proudly points out the recipient of the 2011 Golden Gazelle award.

“You need to work hard, not only to the extent you think is possible, but beyond to the level required to arrive at the finish line. Even though this may be much more than you yourself believe you are capable of," he adds.

Successful development

KLS have combined the high quality of their products, timely deliveries and a high level of flexibility when fulfilling specific customers' requirements, with competitive prices. The Company regularly invests in the most advanced equipment and technology while in the forthcoming year they intend to build a new production plant. The Company complies with the ISO quality assurance standards and they have implemented a policy of constant advancement and improvements in the quality of their products and services, with the aim of achieving long-term improvements in customer satisfaction. Their goal is being achieved by the Company's business culture, which has its foundations in the high level of mutual respect of all who participate in common efforts to achieve the Company's goals.

”We are confident that our business policy, which is based on mutual respect of all those involved in the production, can lead to the best results,” assures Bogomir Strašek

KLS is a service oriented company which is at the same time highly socially responsible. We feel a strong sense of responsibility to our customers, colleagues, owners, suppliers and also to the environment. It is therefore of no surprise that the Company's main objective is its long-term stable performance. ”To achieve our goal, the Company needs to constantly evolve and grow, and this requires a significant amount of financial assets invested in the development of its market, products, processes and human resources. To ensure this investment, the Company needs to constantly achieve added value of a sufficient level that will allow for its long-term optimum performance and development,” explains Bogomir Strašek, adding that optimum performance requires constant improvements in the satisfaction experienced by customers, owners, employees, suppliers and the environment. 

Quality is the key

Bogomir believes that quality is an essentially important element when trying to make a sale and accordingly, the Company devotes huge efforts to the quality of its materials, technical processes, reliability of production, the testing of technical compliance of their products and to the knowledge of employees.

“We achieve this by maintaining close contacts with customers and suppliers to harmonise our joint expectations to the greatest extent possible,” reflects s Bogomir.

Since the Company faces fierce competition from other producers of this type of product, they continuously improve the quality of their products, methods and delivery terms, and respond rapidly to changes in market conditions and customer demands. “The quality of our products is measured in the number of substandard quality pieces delivered to customers. Currently KLS deliver only two substandard pieces for every million supplied. This is one of our strongest competitive advantages since our competitors count their substandard products in the range of forty to fifty per million,” explains Bogomir, adding that their number of customer returns is incredibly low. “Although we produce a total of 250 different products, our supplies are always delivered on time and we only have a low number of customer returns; in fact, ours is the lowest customer return rate of all product manufacturers in the whole world.

A second generation involved in various responsibilities

Both Bogomir's daughters are involved in the business and have had close ties with the Company since a very early age and have gained international experience as students in several European countries.

As a professor of geography and history, Nataša specialised in becoming an interpreter of the English and French languages. For several years she worked for the European Commission, European Parliament and European Court in Brussels and Strasbourg. Currently she is employed in the Company’s sales department and is responsible for quality communication with business partners all over the world, and also as a PR officer. In addition she is also involved in the general running of the Company. Her husband Franci Bevc, a mechanical engineer, is responsible for development and production of gear-rings.

The youngest daughter Barbara graduated from the Faculty of Economy in Ljubljana and pursued her postgraduate studies in Budapest and Dijon. She gained vast experience from working for the American multinational organisation P&G, while currently she is in charge of marketing in KLS. While working, she attended postgraduate studies specialising in the automotive industry at TUW (Technische Universität Wien). Her husband Samo Mirnik, a graduate of economy, is in charge of KLS informatics, production planning and supply. 

Plans for the future

Although in terms of the workforce numbers KLS Ljubno is the most automated business in Slovenia, and automation is at a very high level, the Company employs a total of 215 staff all of whom are from the locality. “Our workforce is comprised of staff from our locality. Some of those are children of our former workers who worked in the Company in the 80's,” proudly points out Bogomir Strašek, adding that in relation to KLS, the term family company has a slightly wider connotation. “It is not only our immediate family that is involved in the Company, but also several generations of staff who we regard as our extended family. Considering the structure of the workforce, the pay rates are good,” says Bogomir. “Salaries of our workers are ten percent higher than the country's average. All employees who are successful and achieve set goals are rewarded.” In 2014 gross added value per employee amounted to as much as 95,000 Euro. In the five year period the Company will achieve sixty percent growth and based on current results, the goal will be achieved sooner than planned. “Our aim is not to become a large company, but rather to remain a good and successful Company. Since stability of the Company is important, we intend to continue to invest in its further development,” adds Bogomir Strašek by sharing his thoughts of the future with us.