'European production is exactly what they need.'

Dr. Maximilian Seidel © Seidel

SVI is an Asian (and not a European) company, but Dr. Maximilian Seidel, CEO of Seidel Holding GmbH, is rather pleased with this fact. The two companies complement each other very well: "Firstly, our customers needed a solution in the Asian region to produce for Asia. Secondly, SVI makes more than 80 percent of its sales in Europe. SVI customers wanted additional facilities in Europe – especially in Eastern Europe – for their production needs. SVI did not yet have these options available." With this repositioning, those needs could be met. A takeover by – for example – another Austrian company would have made little sense, states Dr. Maximilian Seidel. There would have been neither a change in the number of locations nor in customer groups. Why Seidel considered a sale of the company in the first place, has mainly to do with global trends within the industry. "We see very clearly that there will be a tendency to further consolidation in the coming years. We were top in Austria in our area of High-Mix-Volume expertise, but to be able to offer - to our customers - what the market needs in the future, we simply need to be bigger", explains the CEO of Seidel Holding. It is important that companies can offer competitive prices and are globally structured in the future. With a lot of time and a little bit of luck, this can be achieved organically. However, the Seidel Electronics Group has decided against this difficult path. "We have seen how the market accelerated and how dynamic it has become. For this reason, the solution of selling Seidel Electronics Group to SVI seems to be absolutely right," says Dr. Seidel. "I also assume that in the next few years, other companies will follow suit."

SVI has also taken over the production sites in Hungary and Slovakia; in addition to its headquarters in Deutschlandberg (Austria). Clauses regarding the continuation of the sites and the employment contracts were not written into the contract, but the manager does not think it is necessary: "every site is an absolute value-add for SVI. SVI has its own strategy and its own use for each individual site. They also want to continue to use the resources and expand the locations in the medium and long term." The Seidel Holding will continue with a project begun in recent years: investments in Austrian start-ups and projects. "The start-ups and projects come from different areas, but all have something to do with an electronic product. Why? Because here we can offer the most value, both in development and in production," explains Dr. Maximilian Seidel. "I am very happy with the new owner of Seidel Electronics Group, because they not only share our strategic direction, but also our entrepreneurial values. Both companies understood each other from the start, which is also the key to a successful transition", concludes Dr. Maximilian Seidel on a positive note.