From: mk_thisisit
On May 27, 2019, at 1:30 a.m., a major fire completely consumed the factory and the largest distribution department of Iglotex, a Polish frozen food company, in Slush, Poland [00:18:00]. The factory and distribution branch were located in Slush, a city of about 3,000 residents [03:17:00]. The company was the largest Polish retail company in its sector, employing approximately 650 people at the affected location, meaning nearly every family in the small town had someone associated with the company [03:29:00].
At the time of the incident, Iglotex generated 1.5 billion PLN in revenue and employed 2,250 people, producing 80 million kilograms of frozen food annually [01:05:00]. The company, founded by the current manager’s parents, is the largest Polish company producing and distributing frozen food, with 100% Polish capital [01:47:00], [02:06:00].
Unprecedented Response and Rebuilding
Despite the catastrophic loss, the company did not fire a single person [00:11:00], [03:59:00]. A handful of employees chose to retire or relocate due to family reasons, but the employer maintained everyone else’s employment [04:18:00].
The immediate aftermath saw the rapid formation of a crisis team [07:10:00]. Three main groups were established to manage the crisis:
- One team focused on maintaining production volume by relocating operations to other company plants to avoid losing access to the market and customers [07:17:00].
- Another group worked on reconstructing the distribution branch to ensure daily deliveries to thousands of customers [07:35:00].
- A third group managed the employees from the burned factory, delegating them to another Iglotex factory several dozen kilometers away where the frozen vegetable production season was starting, requiring additional staff [08:41:00].
The decision to build a new factory was made swiftly [06:55:00]. By the end of February 2020, nine months after the fire, Iglotex received a building permit and began construction [10:04:00]. Remarkably, just 6.5 months later, in mid-September of the same year, the new factory was operational with installed production lines, ready for the first sales from the new facility [10:27:00]. This rapid reconstruction occurred despite the onset of the COVID-19 pandemic and subsequent lockdowns just two weeks into construction [10:10:00].
The success of the rebuilding effort was attributed to four pillars [17:56:00]:
- Efficient Damage Settlement: The insurance claim process with insurers and brokers went exceptionally well, with an agreement signed at the third meeting, an “absolutely abnormal” speed for such events [18:03:00].
- Dedicated Employees and Developer: Involved employees and a trusted developer showed “incredible flexibility” and completed the investment on time [18:24:00].
- Local and Regional Support: Significant assistance from local and regional communities and decision-making offices, which issued permits in a day or two instead of the standard 30 days, actively reaching out to expedite the process [18:51:00].
- Team Mindset: A proactive mindset from the ownership and crew, focusing on finding solutions and facing challenges [06:43:00].
A smaller ignition occurred weeks later during the cleanup phase due to oxygen exposure to previously covered areas, but this was considered a consequence of dismantling the burnt site [05:13:00].
Benefits of the New Factory and Technological Innovation
The new factory, replacing a 20-year-old facility that had undergone multiple expansions and lacked a linear production arrangement [11:11:00], offered significant advantages:
- Modern Design: Designed from the ground up according to principles of production management and Lean Management [11:43:00].
- Improved Efficiency: Despite producing approximately 25% more volume, the new factory uses about 25% less energy due to new automation technologies, leading to significantly better efficiency per unit [12:06:00].
- High Automation: The bakery section, which accounts for one-fifth of the 24,000 square meter facility, is fully automated, requiring only a few people to operate [12:34:00].
- Product Development: The introduction of new technology, lines, and machines enabled the company to develop better quality products, significantly increase sales, acquire new customers, and improve overall results [09:24:00].
The event, while devastating, ultimately served as an impetus for the company to make a significant investment of around 200 million PLN in a new, modern facility, an investment that might not have been approved under normal circumstances [13:34:00]. This highlights a common challenge for Polish family businesses, which often face a “reset” to overcome archaic thinking and invest in modern technologies [13:18:00].