[Business Scene] PIACRO Designs Production Lines for Powertrain Assemblies of the Strongest Automotive Brands

Although it can be concluded in many ways that all business paths lead to Sveti Nedelja (or at least a large part of them), the path of PIA Automation Croatia (PIACRO) leads in another direction – from the Sveti Nedelja locality of Novaki to the other side of the metropolis, to the suburban area of Sesvetski Kraljevec in Zagreb.

In a business zone with several companies that mainly have warehouse spaces, two production halls of PIACRO are also located. We found two key people, director Matjaž Žižmond and engineering director and procurator Marin Bilandžija, in the midst of the relocation. Although access to the facility is currently via provisional ladders, it is clear at first glance that we are in the center of high technology, among robots, computers, and the most modern PLC machines. Here, we learn, are also parts of automotive electric motors and various powertrain assemblies of top brands that undesirable eyes – including journalistic, let alone competitive – must not see.

– We deal with everything – from the development of automated line designs in the automotive industry to the production of parts, assembly, testing, and commissioning at the client’s site – explains Žižmond this company’s one-stop. Bilandžija adds that line automation involves mechanical and electrical design, PLC programming, and assembly on a ‘turnkey’ basis.

In a more liberal journalistic interpretation, PIACRO receives from the client a powertrain assembly specifically developed for the engine of a new car model. Then they design a line for serial production for that assembly and set it up in their hall, and when the client is satisfied, they dismantle that line and reassemble it where production will take place. This means that Žižmond, Bilandžija, and their team know almost before anyone else what the strongest global car brands are preparing in their new models that are yet to hit the market.

– Yes, we know, but we don’t talk about it – they respond in unison and reveal that in this business, in addition to high technology, absolute trust is also required. Therefore, security measures are at the highest level. Since the office section is not yet operational, we sit at a makeshift office table in the middle of the facility, but under the watch of several cameras. We are monitored by the most modern electronic surveillance, and there is also additional physical security.

We assume that because of this, they can only work for one client at a time, but we are immediately contradicted. It is planned that the hall can be partitioned not only by physical barriers but also separated by sound insulation, so the trained ear of an automotive engineer cannot hear even the revving of a competitor’s engine.

For this reason, they need a larger space than the thousand square meters they currently have in Novaki. And it was not at all simple to find land for 3000 square meters of halls and 1000 square meters of offices. Therefore, they opted for this location where there are already two halls of 1700 square meters each and 1200 square meters of offices, with the option to rent a third hall as well as additional office space.

PIA decided to invest in Croatia due to its proximity to major European markets. In 2017, PIA Automation Austria (PIAAUT) saw an opportunity to acquire the company Moveo Globale in Novaki, primarily due to its capable engineering staff, and renamed it. In five years, they increased revenues sixfold and the number of employees from 15 to over 50. Now there are already 75, they plan to finish this year with 90 employees, next year with 130, and by 2025, PIACRO should have more than 300 employees.

Here we come to the neuralgic point. How to find staff?

– So far, private networking has proven to be the best. We mostly hire by recommendation; the culture of work and knowledge is important to us. We need satisfied workers, then they recommend their acquaintances who learned from them what and how things work here – responds Žižmond. Bilandžija adds that this location east of Zagreb is more favorable in this regard because the labor pool in the western part is quite depleted. This area also attracts Sesvete, Ivanić, Vrbovec… He recalls the blue ocean strategy and assumes that after them, other companies might come to the eastern part of Zagreb. He revealed that several foreigners have also applied for jobs, from Austria, and even one German. Therefore, salaries are probably competitive – in the context of the cost of living.

– We give as much as we can – they say. And that is not little. Due to company rules, our interlocutors can only reveal the information about the average gross salary of around 16,000 kuna. According to data from the annual financial report, this was 10,030 kuna in 2021.

They spend at least a year training employees because they need to adapt to the high standards of each client. This adaptation also applies to the entire company, which, for example, must be CO₂ neutral as this is becoming a condition for doing business with clients.

By the way, the parent Austrian company, PIAAUT, operates within a group that is owned by Chinese interests. The group does not only deal with the automotive industry, so from Novaki (and tomorrow from Sesvetski Kraljevec) they are also looking towards other sectors, primarily the food and pharmaceutical industries. They are opening a robotics department and plan to produce AMR robots for the automotive industry, which are products of their parent company in Austria, in order to timely engage in the development of virtual factories.

Filled with a dose of high-tech optimism, we are still cautious as we descend the main stairs. The hosts promise with a smile that in September, when the relocation is completed, and we come for the official opening, we will be welcomed with a normal entrance in the facility.

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