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Seyed Abdolkarim Najafi Shooshtari, Managing Director

Story of
a Joint Effort

The senior managers of Khawar Spring Manufacturing Co. (KSM) are in fact economic elements who engage in production and business by utilizing the production possibilities and taking advantage of the opportunities that arise in the market. Intelligence, ability to take risks and being responsible are characteristics of KSM’s senior managers.
These characteristics enable the managers to enhance the company’s production to its maximum capacity and make it stand out among its peers. The managers move not only in line with, but also beyond their specified job description. They possess decision-making power as they keep abreast of the latest developments and pursue matters personally, identify the opportunities and act accordingly, analyze risks, have self-reliance and enjoy personal abilities, are daring in expressing their opinions and beliefs, make well-thought plans and remove any hurdles in the way while motivating others. Manifest of such characteristics appears in the following report which demonstrates an example of operations carried out by Khawar Spring Mfg. Co.:

Mohsen Bakhtiari, Board Chairman

Manifest in Projects: For the implementation of the two projects involving the manufacture of stabilizer and torsion bars and parabolic springs, the Korean Dae Won Kang Corporation was selected due to their capability in manufacturing these products for use in all kinds of vehicles with a production capacity of 2 million cars per annum as well as their reasonable prices.

Stabilizer Bar - Torsion Bar Project: The project aims at manufacturing these products for light, semi-heavy and heavy vehicles. The combination and capacity of these products will meet the standards for economical production. They will be used for supplying a portion of the parts required by leading car manufacturers in Iran including Iran Khodro, Saipa, Kerman Motor, Shahab Khodro, Iran Khodro Diesel, and Saipa Diesel.

Production Capacity: The capacity of the production line has been set in such a way so as to allow the presence of other active or prospective manufacturers in the market. Since there are no similar manufacturers in the region, the production capacity also permits exports and partial supply of the regional market both of which are well justified in terms of the value-added of the products. KSM supplies 50-60% of the market share, with auto manufacturers topping the list of major customers. The annual production capacity is estimated at 550,000 stabilizer bars (3500 tons) and 800,000 torsion bars (2000 tons).

Relying on updated information and precise planning to be self-sufficient, managers of Khawar Spring Mfg. Co. are launching local production of highly-needed springs

Status Quo: The foreign-made machinery have been transported to KSM’s site; local-made machinery will be transported soon; and infrastructure including industrial, electrical, telecom, and safety installations have been designed and ready for installation by contractors who were assigned to the job through tenders. Commissioning of the project is planned for March 2001.

Parabolic Spring Production Line Project: This project aims at manufacturing various kinds of parabolic springs for use in suspension systems of semi-light and light vehicles, in industrial springs, and rail suspension systems.

Production Capacity: Once commissioned, the project will supply 50% of the market demand including auto manufacturers and spare parts companies. As the added-value involved is considerably higher compared to other operations and there is a great market demand for the product, the project has an eye on exports to regional countries and even some industrial countries.

Production Line Machinery: With the possibility of manufacturing the machinery locally and at lower costs, 70% of the machinery are manufactured locally and 30% by Dae Won Corporation. The total annual production capacity comprises one million parabolic springs for cars (2400 tons) and 120,000 industrial and rail parabolic springs (1600 tons). The production line is expected to be operational in March 2001.