'Wired' for Future, PKC Adding NPI Centers, Closing Unprofitable Plants PDF Print E-mail
Written by Mike Buetow   
Thursday, 14 February 2013 09:41

HONG KONG -- PKC will establish NPI centers in Estonia and Brazil as it seeks to expand its customer offerings to every major manufacturing region. Separately, the contract electronics assembler announced it would close its operations in Ireland and that company president and chief executive Matti Hyytiäinen would relocate to a newly established subsidiary here on an interim basis to help grow business in Asia and China.

The new NPI centers in Keila, Estonia, and Curitiba, Brazil, are expected to be up and running by the end of 2013.

The firm already operates an NPI center in Acuna, Mexico. "By having separate centers for NPI operations, PKC Group can improve its efficiency in manufacturing, customer service and overall competitiveness," the company said.

The company will close its facility in Ireland and transfer production to existing facilities in Torreon, Mexico and Barchfeld, Germany. In addition, PKC is studying the potential sale of its metal stamping operations in Traverse City, MI. The Ireland and Michigan operations employ about 70 persons, and PLC expects to take one-time charges of EUR 6 million, including EUR 4 million in non-cash charges related to asset write-down and impairment.

PKC is coming off a year in which net sales grew 69% to EUR 928.2 million. Net profits grew only 2.6%, however, rising to EUR 24 million.

Hyytiäinen's move to Hong Kong underscores the company's emphasis on the Asian market. "China is the world’s largest commercial vehicle market (and) forecast to continue to grow significantly. PKC’s current global customers have actively focused their growth into these markets by e.g. forming joint ventures with the leading Chinese and other Asian truck manufacturers," Hyytiäinen said. PKC, which over the past few years has become a dominant player in the wiring harness area, sees expansion in Asia as "pivotal" to its success.

Besides its wiring harness business, PKC has a traditional contract electronics assembly segment that generated annual revenue of EUR 69.4 million ($92.6 million) in 2012, down 4.9% year-over-year.

 

1 EUR = 1.33429 US$

 

 

Columns

Eastern-US: China’s New Competitor?

Parity emerges among EMS Factories from Asia, Mexico and the US.

For the first time in years we see parity in the Eastern US among EMS factories from Asia, Mexico and the US. This EMS market condition will permit American OEMs (the EMS industry refers to OEMs as customers) to have more EMS pathways to choose from. Now more than ever, such EMS assignments will require deeper investigation relating to the OEMs’ evaluation of manufacturing strategies.

Read more...
 
The Human Touch

For those who count on the electronics industry for big feats, it’s been a remarkable couple of years.

Read more...
 

Features

Advances in Concentration Monitoring and Closed-Loop Control

Contaminated bath water skews refractive index results. New technology can accurately measure aqueous cleaning agent concentration.

Read more...
 
Circuits Disassembly: Materials Characterization and Failure Analysis

A systematic approach to nonconventional methods of encapsulant removal.

Read more...
 

Search

Search

Login

CB Login

Language

Language

English French German Italian Portuguese Russian Spanish
 

Products

Panasonic Debuts PanaCIM Maintenance with Augmented Reality
PanaCIM Maintenance with Augmented Reality software provides instant communication and information to factory technicians -- when and where it is needed -- so they can respond to factory needs more...