As part of our interview series with Swiss companies expanding into Central and Eastern Europe, we sat down with Thomas Freund, Managing Director of ARBOR Fluidtec AG – the exclusive distributor of Swagelok in the region. Our conversation delved into the strategic thinking, market opportunities, and motivations behind their expansion into the CEE market. Read the full conversation below:
Can you briefly describe Swagelok’s core business and products?
Swagelok Company is a $2 billion privately held developer of fluid system products, assemblies, and services for the oil and gas, chemical and petrochemical, semiconductor, and transportation industries. Headquartered in Solon, Ohio, U.S.A., Swagelok serves customers through approximately 200 Sales and Service Centers in 70 countries, supported by the expertise of more than 5,700 associates at 20 manufacturing facilities and five global technology centers.
What motivated Swagelok to establish a stronger presence in the CEE region, particularly in Hungary and Romania?
Swagelok’s aim is to have a strong local presence with Sales and Service Centers in regions with strong industry base in our key markets. Our customer base in Hungary and Romania are growing industries and we see a demand for local services.
As ARBOR Fluidtec AG we are the exclusive Swagelok distributor in the region, based out of Wohlen (AG) Switzerland. We have been appointed by Swagelok Company to expand our activity and establish a local presence with Swagelok Hungary and Swagelok Romania
Why were Hungary and Romania chosen as key markets for expansion? What makes these countries strategically important for Swagelok?
A broad customer base across most of our key markets make Hungary and Romania strategically important countries for us. The industrial base remains strong with a particular focus on machinery manufacturers for the oil & gas sector, semiconductor industry and med-tech.
Have you seen differences in business culture between Hungary, Romania, and Switzerland?
Every country has its particularities in business culture and all angels relevant for establishing a local business. We experience this globally and compare this country by country. Hungary and Romania have presented us with a very investor-friendly environment which allowed relatively speedy process to become operational.
What are your short- and long-term goals for the CEE market? Are there plans to expand into other countries in the region such as Poland, Czechia, or the Balkans?
At this point Swagelok covers the area very well with a number of local Sales and Service Centers across the CEE market. Our coverage is adequate, but being monitored continuously to adjust to an ever changing market.
What advice would you give to other companies looking to enter or invest in the CEE region today?
Our success in establishing local presence in numerous countries across the CEE market builds on a strong network of locally well-connected consulting firms helping us to fast-track the establishment and modification of local companies. Last but not least the strong network of SEC has been paramount to our success.
