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Highway during a crisis

03.03.2010

Management innovation, new technologies, tight team – these are some of the features of every prosperous IT company. In this case they fit to the profile of a company specializing in hardware – the road construction company “Ingstroyengineering” EOOD Varna. It was created in 1964 as an economic enterprise related to the City National Council – Varna. Through the years it has succeeded to make its own highway through the economic and political changes. Now it is a part of “Ingstroy Holding” AD, where more than 700 workers are employed. A part of the holding is also the joint-stock company “Transstroy Varna”, which has more than 100 years experience in the field of construction.
Ports, railroad infrastructure, securing of landslidings. The company structure develops and strengthens in two business sectors – construction and food industry.
The last major project of “Ingstroyengineering” EOOD is the construction of wind farm Suvorovo, in which the Spanish company “Eolica Bulgaria” has invested 80 million EU. In these years of crisis this sum is a serious generator of economics for the region of Varna.
The wind farm consists of 30 wind energy facilities with individual power of 2 mw. The foundations are constructed on preliminarily impaled in the ground with special technique piles with length between 9 and 15 m. 900 tons of concrete and iron are used for each one of the 30 foundations.
“The basic activity of “Ingstroyengineering” EOOD is the construction of transport infrastructure, rehabilitation and reconstruction of roads, production of asphalt mixes, production of concrete, construction of bridges, trestles and securing of landslidings. We have great experience in the stabilizing and building of quay walls, port facilities, building of water-conduits, drainages and hydrotechnical facilities.” – says the manager of “Ingstroyengineering” EOOD engineer Bistra Nikolova.
In the last 10 years the company has modernized its material-technical and production basis. This is how it has reached the closed circle of production – from the production of inactive materials, asphalt concrete and concrete to the implementation of the construction works. This makes it easier for the company to work in time on its major infrastructure projects.
“In the asphalt concrete mixes we have inserted new bitumen modifications, which can guarantee higher stability. There is no other way to work in this business and succeed but to innovate the technique and qualification of the team you work with. We invest in a contemporary material-technical basis in order to ensure the effective and flawless work of our teams. We have more than 160 construction machines, transport vehicles and subsidiary equipment. “ – this is how engineer Nikolova explains the formula of success. The company is certified with a quality management system according to the international standards: ISO 9001:2000, OHSAS 18001:1999 and ISO 14001:2004. These are the compulsory conditions for the winning of public projects.  “The market strategy of the company is the flexible price politics. It is an advantage in the successfully won public projects and auctions and builds the image of “Ingstroyengineering” EOOD as a loyal and reliable partner. By applying such a politics the management provides a stable presence of the company on the market and its dynamic development” – adds engineer Nikolova. In 2002 “Ingstroy Holding” invested in a new business – the construction of poultry farm with a closed circle of production. Nowadays companies from the holding deal with the cultivating of 15 000 decares of land. The last two major infrastructure sites of the company are the reconstruction of “Atanas Moskov” Blvd. in Varna and the building of drainage system and sewer-pumping station in a neighbourhood in Valchi Dol.
The manager of “Ingstroyengineering” EOOD engineer Bistra Nikolova:
Every year 30% of the employees pass a qualification course.
- Engineeer Nikolova, what is the difference between doing business today and 10 years ago?
- Today the competition is much more serious. While 10 years ago most of the companies were owned by the state, today in order to be competitive it is necessary not only to own a new basis and modernize the whole mechanization and transport, but also to assure the qualification of the team on all levels and the flexibility of effective decision-making. In our company there is a firm quality politics. We realize that the only and unquestionable way of confirming and prosperity of the company in the conditions of competitive market atmosphere is the maintenance of high quality of our production.
- To what extent are the mistakes in your field forgivable?
- The mistakes in our field are unforgivable, because a mistake in the technology or the implementation could lead to the loss of human lives.
-  We appreciate the exclusive role of the personal contribution and responsibility of the management and every employee and worker for the confirming and maintaining of the principles and directions set in the management system. The management of the company considers that every employee accepts and is ready to implement the quality politics in his own and his co-workers’ interest for the reaching of the goal and prosperity of the company.
- How do you choose your team?
- Announcing a competition is the best way for a serious selection. For management staff we successfully use head hunting. Our presence on the market has social and regional effect regarding the work power. The development of our agriculture is in the area of Valchi Dol municipality, for work in the poultry abattoir, owned by EKO PILE EOOD, we attract workers from Aksakovo municipality and for the incubator sector we invited workers from Topoli. For the building of the windfarm Suvorovo we work together with Spanish specialists. We carefully attend to the qualities of every employee.
- Do you have your own program for qualification of the employees? Do you use teambuilding and if so does it have any effect on the staff?
- Encouraging the wish of every employee to educate and qualify himself/herself is a strategy, which the whole management team has followed for years. Ingstroyengineering EOOD invests in its engineer team by fully financing the tuition of 7 bachelor employees with specialty “Buildings and facilities construction” and the master degree of an employee for road engineer. In the construction companies we strictly follow a program according to which every year 30 % of the employees have to attend a qualification course. In the agriculture companies the management team periodically attends courses in Bulgaria, USA and Holland.
- Do you experience a shortage of staff – managing and executive?
- In our teams on every level there are employees who have worked for the company for more than 10 years. Our growth through the years made it possible for us to attract valuable staff – managing as well as experts. We clearly realize that behind every success there is a successful team.
- What measures have you taken in order to survive during the crisis?
- We have analyzed seriously the changing business conditions and performed an inner regrouping whose aim is to optimize the work flow by the undertaking of more obligations and without discharging of employees. We clearly understand how important for every company the usage of inner resources is. The employees have accepted our measures and realized how important their contribution is.
- We have directed our efforts towards the improvement of the sites organization, thus aiming better quality of implementation of the projects but with accelerated release deadlines and minimal waste of materials. We participate in public projects for construction not only of infrastructure sites, but also for sites from the higher construction. The flexible price politics continues to be the market strategy of our company.
- The manufacturers of cars guarantee 5 years for their product. How many years do you guarantee for your product?
- The normative basis expects guarantee deadlines up to 5 years for road construction and 8 years for infrastructure sites. In our company the guarantees are 3 to 5 years over the minimum in order to satisfy and protect the interests of the client.
- How did you decide to invest in agriculture and poultry farming. Did it prove to be a successful decision?
- Firstly we did a serious marketing research. According to official statistic data in 2008 the consumption of chicken meat in the households has reached 9 kg per person and around 3,9 kg in the restaurants. Chicken products as a whole take 21% of the meat, which is consumed in domestic terms. It is in the menu of 90% of the Bulgarians and is especially preferred as a diet meal. The annual industrial production of whole chickens is around 35 000 tons. Our chicken products are produced in a Bulgarian enterprise with modern manufacturing located in contemporary bases, owned by the holding. We have integrated absolutely every stage of the production cycle – from the raising and production of cereals and production of grain fodder to the selection and breeding of parent flocks, the hatching and fattening of specially selected broilers and finally the abattoir. The integrated technology for air cooling allowed us to become the only producer in Bulgaria, who offers chilled chicken with guaranteed prolonged expiry date from 5 to 9 days. This proved to be a successful investment.
- In your opinion, do the state and municipality act according to the business?
- We are a business partner of the Varna municipality in the implementation of projects concerning new construction, rehabilitation and repair of roads in Mladost and Primorski Districts.
Under these circumstances we are in constant contact with specialists from the municipality administration and we participate in the preliminary discussions and expert councils with professional stand. Another major contractor in our work is NAPI in relation to the implementation of the rehabilitation of LOTs from the republic road infrastructure. Last but not least are the smaller municipalities in the region, where we implement rehabilitation of the roads.
- Do you believe that this business should have its own representatives in the Ministry of the Public Works?--
- We work on different projects with MPW and as a performer we take into consideration their demands. The interests of the construction business are protected by the Chamber of the constructors in Bulgaria and Ingstroyengineering EOOD is a member of it.

 “Imam Imot” magazine,  Author: Nikolay Pehsev