17.12.2012

Season's Greetings to all our customers, partners and friends.

Dear Customers, Partners and Friends,

The end of the year is once again fast approaching and the holiday season is almost upon us. In addition to looking forward to spending some time with families and friends, it’s a good time to look back on this past year and look forward to the coming one.

While 2012 has continued to be a challenging year for the industry with continuing uncertainty in the world economic situation, I am pleased to report that it has been a busy year for the ESCATEC Group, with several new customers joining our ranks, and many exciting projects.

With our plans for significant growth and expansion in the coming year we are very pleased to announce the promotion of Markus Walther to CEO of the ESCATEC group effective from 1st January 2013. Markus has contributed to ESCATEC's success for 23 years starting as a Technical Manager and advancing to his current role as COO. The position of COO will remain open until a suitable candidate is selected. Christophe Albin continues as Executive Chairman of the Board of Directors with responsibility for special projects and, as founder of the group, will continue to provide guidance in further establishing ESCATEC's World Class presence in the CEM industry.

Another significant event this year has been the sale and transfer of our Shanghai business unit to new owners. In April, what started as discussions about a possible Joint Venture, finally concluded with the outright purchase of ESCATEC Mechatronics Shanghai (EMS) by a Swiss precision metal-stamping company. Although our colleagues in EMS have moved on to new pastures, it is important for our customers to know that ESCATEC continues to offer a fully integrated service through our specialist tool-design and plastic moulding expertise in our Penang and Johor Bahru facilities.

The ESCATEC group has recently thoroughly revised its corporate “Code of Conduct” procedure.  By issuing and enforcing this new Code of Conduct, ESCATEC underlines its support, within its sphere of influence, for the ten principles of the UN Global Compact (www.unglobalcompact.org) with respect to human rights, labour standards, the environment and anti-corruption. One more reason why ESCATEC is the supplier of choice for our prestigious customers around the world.

Our investment in new technologies and improved processes has continued apace in 2012 with a number of key programs now implemented. For instance, in Johor Bahru, our Lean Manufacturing and investment program has led to a significant upgrade and re-layout of our SMT assembly facilities to provide enhanced capacity and better efficiency of operation for electronics PCB assembly. Additionally we added robotics systems to our injection moulding facility there to implement an automated, operator free moulding operation.

In Penang, we have seen an expansion of our controlled environment box-build assembly lines within our medical products business unit to accommodate the growth that we are seeing from a number of our customers in this important industry sector, and a strong focus on Lean Manufacturing to improve our overall efficiency and competitiveness.

In Switzerland, we have completed the installation of a new SMT line based on SiPlace SX technology. This new high speed line replaces two existing lines to give ESCATEC Switzerland a big improvement in throughput and efficiency of operations, minimising costly changeover times between products and increasing flexibility; a must for LVHM production in today’s competitive environment. The operations have also been enhanced by the addition of a laser marking system for PCBA’s to improve traceability and quality control. ESCATEC Switzerland has also recently completed process validation of its new Package-on-Package (“PoP”) capability, making ESCATEC one of the few EMS companies of our size to be able to offer this advanced process within the heart of Europe.

Underpinning all of this is our corporate initiative which we call “ESCATEC’s Way to Success”. Only through a continuous focus on our core values and on world-class standards of customer service will we continue to make ESCATEC a prosperous and successful company, and a world-class service provider for all our customers and business partners.

We wish all of you a happy and peaceful holiday season and, much growth and success in all your endeavors.

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