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Electronics Production | March 14, 2007

Positive development for<br>Flextronics in West Hungary

Flextronics is making important changes at it industrial park in Zalaegerszeg, Hungary with large investments in new equipment and increases in employments.
During the last decennium the development has been very slow, this has made companies to reassess their business strategies.

Those days are gone when a few companies placed large manufacturing orders over a long time. These orders where safe and the companies saw this as advantages, however this was something extremely high risk for the companies. During this period the products which are seasoned affected the planning, the products and logistic at Flextronics, which made less orders to the company. That is why Flextronics decided that its customer's base or the range should broaden. With this deception a new business model was developed at Flextronics plant in Zalaegerszeg, Hungary. There are already signs that this new strategy has become successful for the company.

During the latest two years, Flextronics has doubled its numbers of partners, several new customers has appointed Flextronics for design-in, preparing the production, production and distribution of the product. This means that the company must follow customers needs, or more preferably predict customers different needs. More and more customers business goal need to put into effect and also to be compatible on the market.

Comparing to earlier the numbers of new products has increased dramatically. This fives new challenges for purchasers or those working with stock. Only in consumer electronics several thousands of products are been produced and parts are ten thousands. To be able to make the business model into reality several imported changes need to be made and development in the factory need to make some changes.

The technology background has changed and infrastructure has also changed. A lot of new investments have been done at Flextronics technology parks, for example for production of computers new production line has been set up. Flextronics has also prepared the production for producing digital satellite receiver.

The company can still expect seasonable changes in the consumer electronics, however the industrial orders are more even and predictable. Flextronics is also increasing the range of services and as a result of that even service and repair is now added to the Flextronics services. Today the mobile phone repair and the digital camera repair is located at the Flextronics facilities.

The real challenge is to keep the employees which are needed in the development of the company. Flextronics is the most importing employer, not only Zalaegerszeg, but in the whole county. In the latest hiring of several hundred people the position as the region's most imported employer increases even more.

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