Delkor Systems, Inc.
Established in 1973, Delkor Systems, Inc. of Circle Pines, MN, is one of the leading U.S. manufacturers of packaging machinery. The company began exporting in 2006-07 and has gained significant international business including Canada, Mexico, Central and South America, Australia and New Zealand. Over the years, Delkor has been awarded numerous patents for its innovation in the area of materials and package design. As a customer driven packaging solution company, it places a strong emphasis on working with its customers to find more efficient ways to use the materials used in packaging, such as corrugated, paperboard, films and adhesive.
Delkor was exporting “accidentally,” reacting to opportunities to conduct business abroad, rather than through a conscious strategy. Company leaders didn’t know exactly which countries were the best fit for their business and they wanted to be prepared for future export growth. They also needed to understand the exporting process better.
Delkor worked with Enterprise Minnesota to develop a systematic process for expanding its global markets. They helped Delkor make connections with exporting experts in the Latin America region, where they had decided to expand. Over the course of three months, Delkor was able to connect with the right resources to gain information about exporting, conduct research on different markets to determine where their products best fit and develop a comprehensive strategy to do business internationally.
With the help of Enterprise Minnesota, Delkor created a strategic export marketing plan that is allowing them to make proactive decisions on their international sales strategies and business growth. Delkor’s research directed their focus to the food, dairy and consumer products industries within their targeted countries of Columbia, Chile, Peru and Mexico. Enterprise Minnesota also helped Delkor define and implement internal procedures to handle export logistics.
Initially hoping to obtain 25 percent of its total sales internationally, Delkor was able to achieve 30 percent of its total sales internationally sales within six months utilizing Enterprise Minnesota’s Global Market Strategy program. Since the program was completed, Delkor has hired 29 new employees due to continued strong domestic sales and the increase in export sales. This growth in its business also necessitated the need for Delkor to move to a larger facility to meet the increased demand.
“Enterprise Minnesota offered a program that appeared well aligned to providing Delkor support in meeting our objectives. Over a period of three months, Enterprise Minnesota worked with us to help define our product offering, focus on the best markets for penetration and growth, and connect us with numerous external resources we were previously unaware of. The combination of these elements enabled us to achieve our strategic objectives and has positioned us to expand our presence in the Latin America market and improve our efforts in the Canada, Australia, and New Zealand markets.”
Delkor Systems, Inc.
Arden Hills, MN