Tomos to Focus on 2-Wheelers Only

KOPER/LJUBLJANA, Slovenia (April 12) – A new production line for two-wheelers is just on of the steps that will keep Tomos in business for the next 50 years. The company with a half-century long tradition had a great year in many aspects, but loosing the contract with Swedish Ikea will mean a loss of € 13 million per year or about 35 % of the current production value. Moped manufacturer Tomos saw a great opportunity of additional income and signed a contact for the production of metal furniture parts some 13 years ago. But now they cannot compete with the extremely cheap work force in China any longer. Renato Kranjc, CEO of Tomos, emphasized that the reason for loosing the contract is just that – product price. In the end they even offered a 25 % lower price, but Ikea still decided for Chinese and Eastern European suppliers. Tomos is not the first Slovenian company that has lost its contract with Ikea for similar reasons. Rog bikes, known for the last two years as Elan Bikes, was also a supplier to the Swedish furniture giant, but they too couldn't compete on price. Question remains what will happen to the 108 employees that worked on the furniture line. After January 1st 2006 (when the contract will Ikea will expire) some will go to the new moped line, some could loose their job. (GS)