Embracing Change Attention to detail sustains growth plans by Charles Mak By anticipating change, one company has been able to keep ahead of the competition Stringent international standards to promote industrial safety and protect the environment have had a definite impact on companies which manufacture electronic equipment. However, the more farsighted of them have welcomed the introduction of tighter regulations as a great opportunity to establish a clearer competitive edge and push for further business expansion. Sun East Technology (Holdings) Ltd, which was founded in 1984 and locally listed in October 2000, is very much in this category. For example, they anticipated well in advance that lead-free soldering for electronic parts would become mandatory and were therefore not surprised when the EU announced this would come into effect in July 2006. The company had taken the first steps to upgrade their machinery and processes in 1999 and, according to But Tin-Fu, the chairman, lead-free soldering machines now account for 50 per cent of their output in that area of the business. He adds that the investment in such initiatives is ongoing and cannot be limited to a specific annual budget, since production lines must be modified to meet the latest manufacturing requirements for different items. "We consider this investment and the continuous efforts in R&D as part of our customer service," Mr But says. As a one-stop manufacturer and supplier, Sun East now operates six subsidiaries and has a vast sales network covering the major cities in China. Both operations and management are being systematically repositioned to comply with global standards and recognised best practices. "We must prepare ourselves to run the business in line with an internationally accepted model," he says. "That is why we never stop reviewing all aspects of our operation and making changes wherever applicable." We never stop reviewing all aspects of our operation and making changes wherever applicable Regular reviews The company has a policy of regularly assessing its market position and reviewing business goals, target clients, cost evaluations, quality control, and progress in R&D. "We believe that every standardised procedure can be improved," notes Mr But. "We also understand that if we want to make it big, every small detail is important." At present, they distribute overseas brands and also sell equipment under their own brand name. They deal in machinery for screen-printing, soldering, and surface mount technology for assembling printed circuit boards. Besides that, they can supply bonding machines, coating and electroplating equipment, cleaning systems, and the equipment used for warehouse automation. Total revenue was up by over 20 per cent in 2004 and a ten-fold increase is expected in the next decade. Strong business partnerships have been a factor in the company's current success. For example, by cooperating with Rehm Anlagenbau, which is a leading supplier of soldering systems based in Germany, they have been able to expand in both the Chinese and European markets. "The partnership was originally formed to target the China market, but has also allowed us to establish a stronger presence and major export activities in EU countries," says Mr But. There have been additional advantages in terms of staff training and development. While Rehm Anlagenbau has been able to move ahead with brand acquisitions and to break into new markets in Europe, Sun East has provided a reliable manufacturing platform plus expertise in sales and marketing. "The partnership has allowed us to concentrate on the China and South-east Asia markets, while they have worked on expansion in the EU," says Mr But. Expansion in China Though the company has been making rapid progress, Mr But still believes in maintaining a down-to- earth philosophy. "We started out as a 13-person company and step by step have become what we are now," he says. Total headcount now stands at 1,700, including 300 engineers and technicians. Along the way, manufacturing plants were set up in Shenzhen in 1989, with expansion in Northern China following on two years ago. An industrial zone has also been developed in Shanghai, bringing the total factory area to 76,300 square metres. To ensure future success, the company is investing in joint R&D programmes with top universities in Hong Kong and the mainland. "The manufacturing of electronic equipment will become a major industry in China," Mr But predicts. "Talent is needed for what is a multi-dimensional business with many areas of expertise and technological know-how." He adds that the central government is now investing in the industry and that universities are keen to cooperate with the leading industry players on development of practical applications. "Classroom training alone cannot prepare students for the needs of the industry," he says. "Nowadays, research students will also spend a lot of their time in factories, so that they can combine academic excellence with industry experience and be able to create world-leading technologies." Then and now Before Began as 13-person electronics assembly equipment manufacturer with net worth of HK$500,000 Manufactured and distributed individual products Reliance on in-house R&D department Limited international coverage for sales network After Major one-stop supplier and manufacturer of electronics assembly equipment with 1,700 staff in Hong Kong and China ?Manufacturing own-brand equipment, as well as for multinationals Cooperation with top universities for R&D initiatives Has built strong business partnerships and expanded sales network in Japan and Europe Taken from Career Times 5 August 2005 Your comments are welcome at [email protected]