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Sami Mykkänen Electronics Production | October 14, 2010

Incap with structural changes in production

The centralisation of Incap’s European electronics manufacturing to Estonia is proceeding in schedule. At the moment, there are still some products manufactured in the Vuokatti factory (Finland), but the operations of the factory will most likely cease by the end of October.
In Incap’s business, the competitiveness of material sourcing has a remarkable impact on the company’s success. "The prices for mechanical materials, such as steel, aluminium and copper, have seen a significant increase since the beginning of the year. Currently, the price development shows signs of evening out in Europe. The price of steel in Asia continues to be at a more competitive level than in Europe", Incap's CEO and President Sami Mykkänen says in a review.

The prices of electronics components and circuit boards are also slightly increasing. Currently, a larger problem is being caused by the worst shortage of components in ten years. Incap expects this problem to persist till the end of June 2011. The problem is a global one, and it will have repercussions in the capacity of Incap production units.

To come through these problems related to raw materials, the EMS-provider has streamlined its sourcing structure and clarified the responsibilities. "The most significant change in the organisation is Pekka Laitila’s appointment as the director for sourcing and materials in Incap Group. He is also responsible for the operative purchasing activities of Incap’s factories in Europe", the CEO continues.

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