Lantek has predicted a 30% growth for 2010

Opening new branches in Russia and Malaysia and boosting the activities in the USA and new emerging markets (China, India, Brazil, Mexico, and Turkey) are some of Lantek’s international strategy objectives.

Moreover, and linked to their R&D policy, the company believes in a product diversification strategy and has boosted its ERP capability with the launch of Lantek Integra. Thanks to this new launch, an increased turnover of 30% is expected in 2012.

Lantek, world leader in CAD/CAM software and on-demand Management Software Solutions (ERP) for the sheet metal manufacturing sector, has launched its corporate strategy for 2010 during its annual meeting "Lantek International Meeting".

The event has taken place in the company’s headquarters in its Technology Park in Álava with the Lantek Management Board and the Directive Leadership of the 23 delegations from all over the world. During the event, Lantek announced its 2010 intentions of keeping its world leadership in the sheet metal and profiles processing sector. Lantek’s objectives for increased turnover and international expansion for 2010 are very ambitious even though it is aware of the market situation.

To grow more than 30%: International expansion and boost ERP sales
In 2010, the Lantek forecast is to obtain growth in double figures, so its revenue will increase by approximately by 30%.

In order to attain this objective, Lantek will reinforce its economic and human resources and will consolidate its activities in emerging markets in Asia (China and India at the top of the market), Middle East (Turkey as strategic market) and North America with USA at the top. In USA, a 200% growth is expected thanks to the new corporative structure and the team reinforcement owing to new recruitments during 2009. In the case of Latin America, Lantek will focus on Brazil with a market currently responding very well, followed by Mexico. In reference to branches in Europe, Lantek will work to maintain and increase its market share.

“Let’s hope that in 2010, the market gets better and recovers its reliability. Even though in some regions the debility is evident, like in Europe, whose recovery is slower than the rest", indicated Mr. Alberto Martínez, Manager of Lantek Sheet Metal Solutions. “Anyway, we are convinced that in Asia and America we can introduce a qualitative and quantitative progress during this year”.

Lantek wants to consolidate its new offices and to boost its presence in new markets, like Russia and Malaysia. So, Lantek fulfils its commitment to approach customers and offers them a local support service in their own language unlike its main competitors. At present, Lantek has 23 offices distributed in 16 countries and has 180 employees. In 2010, Lantek expects to increase its team to 205.

Moreover as well as geographical diversification, Lantek believes in the importance of product diversification (strongly related to its R&D policy). In 2010, the ERP market will be strategic for the company.

Lantek will stress the importance of the launch of the Lantek Integra solution (refer to press release about the new solution launch): a complete and innovative system developed in Net technology and operated via the Web. The main objective is allowing present and future users to automate, coordinate, manage and control all the processes of the company (from manufacturing to workshop management, invoicing, warehouses, purchases, accounting, etc.) regardless of the place and time. All that is required is an Internet connection. The information can then be processed through the system to all other modules available from Lantek for profiling, punching, tube and beam cutting.

As part of the 2010 expansion the services area of Lantek will be boosted. To achieve this, a new department has been created and José Ramón Valle will be in charge of it. One of the main objectives is to increase the proactivity with the customer and offer a better after sales services.

Moreover, Lantek will continue taking part in machine-tool exhibitions on a global sale.

R&D Investment
As always and regardless of the current economic situation, Lantek has always assigned 20% of its total revenue to R&D.

In 2010, the company will continue with its R&D policy with a planned investment of 2 million Euros, similar to 2009. This investment will contribute to the continued development of the new ERP solution, Lantek Integra. During the last three years Lantek has assigned 3.5 million Euros to this product. That represents a percentage of 60% of the total R & D budget.

“Innovation is synonymous to advancement, therefore it represents a good antidote to fight against the present market situation", explained Mr. Alberto Martínez. “Lantek is an enterprising company. It will continue supporting state-of-the-art-technology, high quality solutions and easy to use integrated services. It will allow the companies from the sheet metal sector to improve their daily strategies by increasing their productivity, efficiency, competitiveness and easing all the decision-making processes.

2009 Profits
Lantek turnover for 2009 was almost 8 million Euros compared to 10, 8 million Euros in 2008 owing to the global financial crisis and to the difficult situation in the sheet metal forming sector. However, despite the market situation, the company has increased its number of customers in the 100 countries where Lantek is present to 9.500 customers. This number represents 5% more than in 2008.

The R&D area has been one of the starring roles during 2009. It has contributed 25% of the total turnover, approximately 2 million Euros, as a result of updating and improving the product catalogue. This has been carried out from three development centres, Álava (Spain), India and Poland.

According to the product area breakdown, 8% of sales have been generated by Management Software Solutions. Lantek expects to not only maintain this percentage during 2010 but also increase it to 30% for 2012. CAD/CAM solutions have represented 48% of total turnover during 2009. The remaining 44% comes from the services area.

“In Lantek, we strive for a positive interpretation of results. We have achieved an increase in the number of customers, reinforcing the sales of the Management Software Solutions and reinforcing our position in strategic markets like Italy and the USA. In these markets, we have created a solid and new structure", as affirmed by Lantek’s manager.

Reply of International Markets
From the total turnover generated by Lantek, 20% corresponds to the Spanish market. In Spain, new licenses have represented 37% of its turnover.

80% of the remaining income during this business year has come from international business. It corresponds exactly with its expansion and open strategy in emerging markets. Lantek will continue with this strategy during the new business year. In Europe, the markets with better results have been United Kingdom (with positive numbers), France, Germany and Italy. Out of Europe, the Latin-American market is growing. At the top of this market are Brazil and Mexico. These markets are up with the regions that have created most new customers during last year.

In addition, during 2009, Lantek has given a boost to new regions to consolidate its business where it has been recently established such as new branches like China by means of its partners and suppliers network (Italy and South Korea).

In order to reinforce its international strategy, Lantek has reserve red the human resources to take part in more than twenty international and national machine-tool sector events. These exhibitions are the best showcase to show the latest developments of the company and to create new business opportunities. Moreover, they are very useful to consolidate its position in new markets and reinforce its leadership in existing markets.

About Lantek
Lantek is a multinational company and world leader in the development and the commercialization of CAD/CAM and ERP software solutions for the sheet metal sector. Lantek, founded in 1986 in the Basque Country, is a world leader in sheet metal cutting and punching solutions (Lantek Expert). Thanks to its capacity for innovation and internalization Lantek has now more than 9,500 customers in more than 100 countries, with its headquarters in Spain (Vitoria-Gasteiz) and branch offices in USA, Germany, Argentina, Brazil, Italy, Great Britain, China, South Korea, France, Japan, India, Poland, Mexico, Turkey and Czech Republic. Supported by a wide distribution network all over the world in 2009, its international business contributed 80% of its turnover.

Further information on www.lanteksms.com | marketing@lantek.es