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Electronics Production | November 15, 2007

Sanmina-SCI Enclosure grows in Europe

Mats Sigfridsson CEO for the Swedish unit of Global EMS provider Sanmina-SCI, recently transferred production to Sanmina-SCI Enclosure Systems in Sweden from Hungary and now plans to hire 100 new staff in Sweden.
“Outsourcing is subject to hidden costs, for technical support, travel expenses and quality problems” he told Swedish trade organisation “Svenskt Näringsliv”.

"You do need a low cost alternative; however outsourcing is not the solution for everything”, Mr. Sigfridsson said.

A staff of 300 currently works for Sanmina-SCI in Forserum. The production mainly consists of Enclosure Systems for the telecommunication industry. 2007 has been a good year for the unit. The turn over will be approximately 50 million Euros and the unit plans to double the figures during 2008. One of the advantages to be part of a global company is the availability to use the organisation’s consumption of raw material and local representation in different countries. “Higher volumes gives better prices”, Mr. Sigfridsson said. “At the same time it works the same in the other direction, we can benefit from the global company to find the best solution for our customers. When it comes to transports and logistics, you want to keep the costs down and at the same time considering the environmental aspects that have grown strongly lately”, he said.

Mr. Sigfridsson’s target is to make all of the complicated production built in Europe within his niche. He recently moved back some production from Hungary and is now looking to hire an additional staff of 100.

”It is a product that originally was produced here in Sweden, however for cost reasons the production had to move to Hungary. Now the product has been modified and comes back to Sweden. We are effective on this type of manufacturing, but you need a low cost alternative as well. If there are a lot of manual works involved, we can not compete with the prices with our labour costs”, Mr. Sigfridsson concluded.

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