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A brief word by...: Gerrit Malipaard about growing MTS Euro Products: “Family values, service and innovations”

In the new themed series 'Blurring or Blokker syndrome?', the Cleaning News is looking for the new (cleaning) economic sphere. A economic sphere that revolves around sharing resources, with impact. A circular economy. With challenges and choices that need to be made to keep up. Or not? We are looking for the answer to the question: will it be blurring – blurring of the boundaries between branches? Or will it be fighting the Blokker syndrome: seeing new developments, sticking to traditions, and in a few years' time, another corporate empire has to pack up the shop. The editors of the Cleaning News first spoke with Gerrit Malipaard, CEO of MTS Euro Products, the day after the announcement of the company's impressive new building plans, about the growth of his company based on family values, through service and innovation. Is it a matter of getting big by staying small?

“27 years ago I started our company with just two employees," says Gerrit. “We have seen consistent growth, right from the very start until now. As a knowledge partner and supplier of hygiene products, such as toilet and towel paper, dispensers, cleaning paper, cleaning rags, non-woven cloths, soaps and absorption materials, we currently have a turnover of € 65 million per year. This is comprised of our sales in the Netherlands and our export to 27 countries.” In 5 years, the company aims to achieve a turnover of € 100 million.

Service with a capital S
What does MTS Euro Products do so well, to continue to experience this kind of growth? “We provide our clients with service with a capital S," replies Gerrit. “It sounds so simple, but that stands out in the market. As a Dutch family business, we have a different mentality than you often see in internationally oriented, listed companies. We collaborate, advise and provide feedback. We always supply via wholesale. No push and pull strategy geared towards end users.”

We stand with wholesalers.

A current trend is for suppliers to supply both through wholesalers and directly to end users. Is MTS Euro Products following this trend?“No," Gerrit responds firmly. “We stand with wholesalers. It seems greedy on the part of those companies, to quickly lock in an order and then determine how the best margin can be achieved, via the wholesaler or directly. We do not go in for that. We give our clients the proper attention, are flexible, maintain short lines of communication and do what we agree on. For us, that is the normal way to do business. Apparently this isn't the case for every company. We hear stories where end users sometimes can't reach a supplier for up to three days.”

A fixed value
MTS Euro Products is a family business. It is said that a different working atmosphere prevails in family businesses than in other companies. Does that also apply to MTS Euro Products?“Yes," confirms Gerrit. “Within our company, there is great involvement, there is openness and a no-nonsense mentality, and everyone is equal. Whether you are a truck driver or a commercial director, you are all equally important to the company. Every link in the entire chain is just as important!”

"We work hard and are persistent. That is the basis of our success.”

Gerrit continues passionately: “We work hard and are persistent. That is the basis of our success. We have the right people in the right places, we give our employees opportunities to grow, and we grow with them. The turnover is low, we have and retain a lot of knowledge in-house. Absenteeism within MTS Euro Products is below the national average. Those are the positive characteristics of our family business, which we are proud to embody. Wholesalers know that we trade through them, at a fixed value. They are the specialists, who sell the whole package. We are a part of the chain, who can help and provide service.”

Ambition to grow
“In five years. we want to have reached a turnover of € 100 million. Mainly with our current clients. After all, it's not about the number of clients, but about the order volume. Our turnover in the Netherlands will certainly continue to grow, as we are currently investing a lot in the medical sector.”

We value quality labels a lot more, and I think that will start to pick up in other countries."

Gerrit expects to achieve the most growth in export. MTS Euro Products has customers in Norway, Sweden and Iceland. They purchase private label products as well as MTS Euro Products products. They choose MTS because of its logistical location, close to the sea, which enables the company to ship and deliver continuously. “We receive orders for up to 30 different products, from napkins and toilet rolls to soap and dispensers,” adds Gerrit. MTS Euro Products would like to use this approach for more international customers.

Expansion in meters
Growth in sales also means more production and bigger inventory. How does MTS Euro Products deal with this?The answer is a new property. Gerrit recently signed for the construction of a new 30,000 m2 building. The head office and new logistics center will be located in the new building. The current location at Heldringstraat 39 (10,000 m2) will be reconfigured for the production and supply of cleaning cloths. Two other properties are expected to close. Construction of the fully climate-neutral building is scheduled to start in July 2021.

Continually tackling challenges
MTS Euro Products operates based on its status as a family business with fixed values. In this rapidly changing market, this could easily get lost. How does MTS Euro Products prevent this?“By continuing to tackling challenges," Gerrit responds immediately. “We are always looking for innovations, visit trade fairs, immerse ourselves in new technology and, of course, also look closely at what colleagues are doing. We are now focusing on circular entrepreneurship. Here in the Netherlands, we are at the forefront in this respect compared to other countries in Europe. We also value quality labels a lot more, and I think that will start to pick up in other countries. We recently scored our first client for paper pick-up. After we pick it up, we take the paper back to the mill to be recycled into toilet paper or paper towels.

“And of course our turnover growth in Europe. Our location here in Rotterdam, a hub with a lot of international activity, is unique and very attractive. During the recent years of crisis, we were able to double our turnover with our low-value commodity products. It is said that we are now peaking and that there will be difficult years ahead. People are more cost conscious now. That's why I say: calculate carefully and pay for what you use. It is easy as a facility manager to put a signature down for an entire contract, but the past has proven that this does not always pay off. Make sure you get what you agree on!”

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