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EMS News
December 31, 1969 |Estimated reading time: 7 minutes
EMSNews
Communications Drives Southeast AsiaSINGAPORE The communications segment of the electronics manufacturing services (EMS) industry in Southeast Asia is fueling demand for the overall market, according to strategic research from Frost & Sullivan. The industry generated $15.92 billion in 1999 and is expected to grow rapidly by 2006, the market should generate $113.51 billion in revenues.
One major growth factor is the trend toward OEM outsourcing. OEMs have discovered significant cost benefits in concentrating on their core competencies, such as marketing and R&D. Meanwhile, EMS providers supply services at a lower rate than many OEMs, and they are broadening their services to meet the rising demand for value-added products.
Because of the intense competition in this field, manufacturers differentiate themselves from other players by offering diverse services to OEMs and integrating the functionality of their products on a larger scale. This market is characterized by both large, broad-based companies and smaller niche-market players.
For more information on the report, Southeast Asian Contract Electronics Manufacturing Markets, contact Shantel Wilkins at (210) 348-1015 or e-mail swilkins@frost.com.
Solectron and Nortel Continue to DealMILPITAS, Calif. Solectron Corp. recently made two announcements concerning acquisitions from Nortel Networks. First, the company acquired four Nortel manufacturing facilities. The new Solectron sites located in Calgary, Canada; Research Triangle Park, N.C.; Monterrey, Mexico; and Cwmcarn, Wales, will offer prototyping, printed circuit board (PCB) assembly, small subassembly and repair services to Nortel.
The second announcement from Solectron revealed the company reached a definitive agreement with Nortel to acquire certain electronic computer-aided design (CAD) capabilities in Santa Clara and Simi Valley, Calif.; Ottawa and Toronto; and Raleigh, N.C. As part of the agreement, Solectron will provide a range of design services to Nortel under its four-year supply arrangement. Solectron also will offer employment to approximately 40 engineering employees, as well as acquire certain layout and design assets.
"I am pleased that our relationship with Nortel Networks continues to grow, and we appreciate the opportunity to add value to Nortel in new and different ways," said Ko Nishimura, Ph.D., Solectron's chairman, president and CEO.
MSL Expands in U.S. and OverseasCONCORD, Mass. Manufacturers' Services Ltd. (MSL) expanded its Asian operations with a new manufacturing facility in China's Shenzhen region. Located in Longhua Town, the 50,000 sq. ft. facility offers PCB assembly, box build and fulfillment services for OEMs in communications, computers, peripherals, consumer and industrial electronics.
"China has emerged as a key marketplace for global companies," said Robert Donahue, MSL president. "Expanding our presence in this region will enhance our ability to serve customers seeking to enter new markets."
Heng Yong Song, a 20-year veteran of the EMS industry in China, will manage the operation.
In other company news, MSL acquired Qualitronics Corp., a Lowell, Mass.-based EMS provider. The 40,000 sq. ft. facility provides services that directly address the transition between design and volume manufacturing, including prototyping, design for excellence (DFX) engineering and low-volume manufacturing.
With the company's design center in nearby Westford, Mass., the new operation will serve as the cornerstone of MSL's Northeastern U.S. new product introduction (NPI) portal, which is designed to support OEMs in the early product life cycle and ensure rapid time-to-market.
"To win the time-to-market race, OEMs are increasingly turning to their EMS partners for highly specialized design and NPI services that ensure a smooth transition between concept and production," said Donahue. "Qualitronics has built a stellar reputation for quality in early-stage manufacturing and we are very excited about this strategic addition to our NPI offering."
The new company will do business as MSL Qualitronics and will retain all 150 current employees.
Finally, MSL elected three electronics industry veterans to its board of directors, bringing the total number of board members to seven. Donahue, along with William Weyand, president and CEO of Structural Dynamic Research Corp., and George Chamillard, chairman and CEO of Teradyne Corp., were elected by the company's shareholders in late May.
New Mexican Facilities, Part ILEXINGTON, Ky. Lexmark Electronics opened its new EMS plant in Reynosa, Tamaulipas, Mexico. The plant, the second such facility opened by Lexmark in the last year, provides the company with added capacity needed to address the growing demands for PCB assemblies in the United States and Mexico.
The plant is strategically located in the northeastern region of Mexico, just a few miles from the southern tip of the U.S. border. It is said to be close to several major transportation points of entry, making access between the two countries quick and easy. Lexmark also chose Reynosa because of its established skilled worker base, which has played a critical role in getting the facility up to speed and servicing customer orders.
"Opening our Reynosa facility demonstrates our commitment to serving customers in this region and gives us even more capacity to serve customers around the world," said Ben M. Streepey, Lexmark VP and general manager.
New Mexican Facilities, Part IIGUADALAJARA, Mexico Multek, a wholly owned subsidiary of Flextronics International Inc., acquired CUMEX Electronics S.A. de C.V., reportedly Mexico's largest PCB manufacturer. Under the terms of the agreement, Multek acquired an existing 60,000 sq. ft. facility with a management team experienced in the manufacturing of PCB technologies. The plant is U.L. certified and backed by a corporate quality system that is ISO 9002 and Bellcore compliant.
"Based on strong customer interest, Multek is entering Mexico by acquiring the largest PCB manufacturer in the region and plans to eventually build a state-of-the-art PCB manufacturing facility on the Flextronics Industrial Park in Guadalajara," said Steve Schlepp, Multek president. "With this transaction, Multek is extending our existing strengths in geographic diversity which enables us to provide our customers with the capacity and technology wherever they need it around the world."
Kimball Breaks GroundJASPER, Ind. Kimball International Inc. announced the groundbreaking for a new 40,000 sq. ft. microelectronics facility in Valencia, Calif., which is scheduled for completion by the end of the year and replaces a facility in Burbank, Calif.
The new facility will have increased manufacturing capacity and expanded capabilities, including board-level assembly in a high-flexibility production environment. It also will serve as an NPI center to support the company's high-volume manufacturing facilities in Jasper, Ind., and Reynosa, Mexico.
"Our microelectronics facility in Valencia will play an important role in accelerating our growth initiatives and supporting our strategy of providing a package of value-added services designed to provide the total solution for our electronics customers around the world," said Don Charron, Kimball Electronics Group (KEG) president.
In other company news, KEG welcomed four new business managers focused on targeted accounts. Joe Hargett, Dave
Doctor, Mark Yaquinto and Dave Malick bring more than 60 years experience within the sales and technical arenas.
Dedicated NPIFARMINGTON HILLS, Mich. Electronic Product Integration (EPI) is dedicating its Cirmount Circuits Farmington Hills, Mich., location as its NPI center and box-build assembly operation, in conjunction with EPI's consolidation of its Midwest EMS operations into a Norwalk, Ohio, facility.
The restructuring of the Farmington Hills facility is designed to allow customers to take full advantage of the company's vertically integrated services, centered around the core competency of turnkey manufacturing. EPI provides complete electronics design services, including product concept, circuit design, PCB layout, packaging, validation and product testing. The company also provides 3-D solid modeling, precision plastic injection molding, in-house tooling, and complete box-build and final assembly capability.
"Our customers are looking for full-service value-added suppliers that can support their needs from concept through production," said John Sammut, EPI president. "The [NPI] center will be the nucleus of EPI's engineering and prototype capabilities, providing our customers regional support with the ability to draw from a network of full-service resources."
Jabil Continues Facility ExpansionST. PETERSBURG, Fla. Jabil Circuit Inc. is expanding its Meridian, Idaho, manufacturing facility, doubling its manufacturing space and creating additional office areas. The current site houses 170,000 sq. ft. of manufacturing and office space; the expansion will add 98,000 sq. ft. and could lead to as many as 700 new positions during the next few years.
"The continued success and growth of Jabil Circuit is a testament to the commitment and skills of our employees around the globe," said Randy Della, senior director of operations. "We are excited that Idaho's contribution to that growth warrants doubling our manufacturing space within six months of moving to our Meridian site."
Other worldwide Jabil facilities recently expanded, as well.
Currently, sites in California, Michigan, Massachusetts and Florida, as well as Malaysia and Chihuahua, Mexico, are expanding. The company also plans to build a new facility in Hungary and acquire manufacturing capacity in Brazil.
F-16 Contract AwardedTAMPA, Fla. Group Technologies Corp. (GroupTech), a subsidiary of Sypris Solutions Inc., was awarded a $2.1 million subcontract from Honeywell Avionics and Integrated Systems in Teterboro, N.J., to build seven different PCB styles for the F-16 fighter aircraft.
The flight-critical digital flight control computer (DFLCC), the heart of the fly-by-wire flight control system, is a quadruple redundant computer providing four independent operation channels for survivability. Delivery of the PCB assemblies is scheduled to begin in October 2000, with final delivery in 2001.
"We enjoy a long electronics manufacturing history with Honeywell, and now, we are exceptionally proud to contribute our expertise on their F-16 [DFLCC] program," said Thomas W. Lovelock, GroupTech president and CEO.