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Analysis

Supplying Quality Korean and German Tooling Products

Tue, 09/01/2015 - 13:53

Sometimes, it is the smaller parts of tools that are the most important, because without these unsung heroes, the overall product becomes unworkable. Korcut is a distributor of these indispensable components, supplying parts from brands such as Arntz, Korloy, and Dine. Of the company’s total sales, Korloy represents 50%, Dine about 20%, Arntz 20%, and the remaining 10% is comprised of another eight brands. Korloy is a Korean brand established in 1969 that fabricates tungsten carbide products for the oil, health, and aerospace industries. Arntz, on the other hand, is a German company with 200 years of experience, which sells bandsaws for steel cut applications in the same industries. As for Dine, it manufactures clamping tools that complement Korloy’s products. While there are companies that manage 50 or 60 different brands, Korcut wants to avoid the corresponding reduction in quality that arises from such large portfolios. With the 11 brands that Korcut manages, there is enough material and room for development, but the company is still open to negotiations with strategic brands that could benefit its existing clients. Korcut’s clients are centralized in the steel and material removal industry. From there, the company branches out into different industries like automotive, oil, metal-mechanic, and aeronautics. The automotive industry represents about 50% of Korcut’s total business, with the primary focus being on Tier 1 and Tier 2 companies that supply major corporations like Chrysler, GM, and Nissan. About 19 years ago Korcut began life as an SME, supplying companies with up to 20 machines. Today, the company is still serving them, showing a distinct level of loyalty to their customer base.

The company has a formal network of 25 to 30 suppliers in the country, as well as five different office locations in Monterrey, Apodaca, Monclova, and Queretaro, with imminent plans to open a new branch in Aguascalientes. “We are proud to say that in the 19 years we have been in this industry, we have maintained constant growth,” explains Javier Silva Garza, Co-Owner of Korcut. “Last year, we grew by 19.8% and our goal for this year is 35%.” In order to achieve this, the company is relying heavily on the quality of the brands it supplies. “We have great potential with the 11 brands that we manage, and we plan to keep developing and promoting them,” states Edgar Silva Garza, Co-Owner of Korcut. “We are currently planning the acquisition of the premises where we work, with a redesign planned to ensure the building adheres to our needs. To distributers like us, management of the inventory is a key contributory factor to operating successfully.” Korcut is constantly innovating and is determined to keep its clients updated on the most innovative recent developments, keeping them on the path to aftermarket success.