How EFSI benefits SMEs in Europe - Slovenski Podjetniški Sklad (SEF) case study: Tesnila Bogadi (Slovenia), Hydraulic seals

Tesnila Bogadi is a family business that has been successfully operating in domestic and foreign markets since 1998. The company specializes in seal manufacturing, the production and maintenance of pneumatic cylinders, hydraulic cylinders and various other polyurethane and rubber products.

As part of the company’s development, Tesnila Bogadi turned to Slovenski Podjetniški Sklad (Slovene Enterprise Fund – SEF) in order to seek financing for the purchase of computer-numeric-control (CNC) machinery, which will help them to increase production capacity. CNC machinery allows computerised control of the machinery, as opposed to manual control.

SEF offered to guarantee a loan to the company, backed also by EIF and the Investment Plan for Europe, the EU initiative aiming at generating new investments by supporting small and medium-sized enterprises across Europe. As a result of this financial support, Tesnila Bogadi will also employ a dedicated operator on the CNC machine. Overall, this development is expected to increase the value added per employee by 11%.

The CNC machinery was an investment necessary to ensure the most advanced manufacturing of the products on offer, explains the company’s spokesperson Mrs. Marjeta Bogadi “In the current highly competitive market, it is important to offer products with the latest technology, but, of course, with that comes higher borrowing and higher financing costs.”

As the largest manufacturer of turned seals in Slovenia, Tesnila Bogadi is keen to stay ahead of the game: “with this investment, we are confident that production capacity will increase and subsequently revenues as well.”

Company: Tesnila Bogadi (Slovenia)

Type of business: Manufacturing; Hydraulic seals

EIF financing: COSME LGF, EFSI

For further information about EIF intermediaries in Slovenia, please refer to: http://www.eif.org/what_we_do/where/sl