Reijo Itkonen columns | December 05, 2005

Q and A with Reijo Itkonen

evertiq had a chat with Reijo Itkonen, the CEO of Enics. Read the Q and A here.
Q. Looking at the future, how do you see the development for Enics within next two years from now?
A. Enics will continue the growth. The biggest growth will happen in the Eastern Europe and in China. Globalization continues and we are also evaluating opportunities to enter Americas.

Q. Do you think that we finally are through the long running general recession in the electronics industry, and why?
A. Recession have not affected so much to industrial electronics where our focus is. The weak dollar has affected to all business done in Europe especially when competition comes fromfar East. Competition will be tough also in future and business consolidation will continue.

Q. Are you planning to grow any further, organically or through acquisitions?
A. In the near future we are concentrating on organic growth with existing and targeted customers in the same industrial electronics focus area. We are also ready to consider some acquisitions if they are fitting our strategy and adding value to long term customer partnerships.

Q. What do you think of the production being transferred to low cost regions, does that affect your business, and in what way?
A. Everybody understands that you have to be cost-competitive and serve customers near their markets. To be interesting and recognized partner, we have to fulfill our customers' needs globally. Customer proximity and high value added services next to customers development or service centers is also needed. We have both solutions in our strategy and we really believe that we can win business to both directions. As mentioned earlier we have to be near to customers' market and in many cases customer's market is also in Europe and the total cost of ownership do not support to transfer all production out of Europe. Cheapest is not always the most cost-efficient. In our focus area, quality, OTD and reliability are essentially important factors to our customers as well.

Q. What geographical areas would you consider the most important for your business?
A. Europe is our home base and we want to be strong here. With Europe I mean also eastern part of Europe. Anyhow, we need to be global which means that we have to be strong also in Asia. We have a plant in Beijing but most likely we will in future establish operations in other parts of China as well. India is also an important area and Americas where we have alredy started to evaluate opportunities.

Q. What product segments would you consider the most important for your business?
A. We are focusing to Industrial Electronics where the main sectors are Energy, Automation, Transportation and Medical.

Q. When will we see the next big thing happening within Enics?
A. We have to be sensitive and fast. Nothing to inform at the moment.

Thank You for Your time!
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