Although exports to Australia account for only about 5% of VALPRO’s turnover, years of sustained collaboration have ensured that nearly every Australian household owns a 20-liter fuel can made in Valmiera, Latvia. 

 

Australia is a vast country with a low population density, where people often travel long distances. Camping tourism is popular, and agriculture is highly developed – both situations requiring reliable fuel reserves. “As a result, the demand for our product is significant,” says Mārtiņš Orskis, Head of Sales at VALPRO. However, fuel cans are not purchased every year, and VALPRO is aware that offering the same product continuously will eventually saturate the market. “That’s why we are developing new products – we also offer 2, 5, and 10-liter cans, as well as various accessories, such as spout attachments for vehicles,” Orskis adds. 

 

A Long-Standing Partnership:

VALPRO’s relationship with Australia goes back decades. In the factory that operates today, fire-fighting equipment and fuel cans were already being produced in the last century, many of which were exported to Australia. “During the years of Latvia’s re-independence, Australian partners sought out their old collaborators again, wanting the same proven quality. In 1992, Latvians and an Australian company privatized and formed the joint venture AS ‘Valpro Corp’,” Orskis recalls. The company has maintained communication with its Australian partners for 30 years. Despite employee changes over the years, the relationships have remained friendly. “If you listen to my colleagues’ conversations with the Australians, you’ll hear them ask about each other’s families before discussing orders. Building close relationships and maintaining a friendly approach is crucial – I believe this is one of our keys to success in Australia,” Orskis explains. Orskis notes that Australian partners are cooperative, solution-oriented, and open to dialogue. For example, some information on VALPRO cans required extensive placement work. When the manufacturer simply asked the partners if all the information was necessary, it turned out that much of it was not required. “Australian partners are focused on collaboration and finding joint solutions. In contrast to Germany, where everything is extremely precise and strictly according to contract, Australia is more flexible and open to discussion. This is important to remember in daily communication,” Orskis concludes. 

 

Not the Simplest Export Market:

Shipping to Australia also requires significant lead time. Orskis recommends agreeing on delivery forecasts with clients in advance to avoid surprises. He also notes that while Australia has its own currency, it is often beneficial to agree on payments in euros. 

 

High Standards Open New Opportunities:

Almost every imported product must be certified, and Australia is no exception. “The difference is that Australia has very high-quality standards and does not allow low-quality imports,” says Orskis. These high standards have also provided valuable opportunities for product improvement. For instance, during testing, a fuel can was dropped from a specific height, and occasionally its lid would open. To solve this, VALPRO developed a special latch to securely close the can. The solution was patented jointly with the Australian partners. “Thanks to the Australians’ high requirements, we achieved a valuable improvement in our product quality,” Orskis shares. 

 

Original source: https://www.delfi.lv/bizness/biznesa_vide/latvija-razota-degvielas-kanna-teju-katram-australietim-valpro-eksporta-stasts.d?id=55863504