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Electronics Production | September 15, 2006

Our China fab will soon show profit,<br>BB Electronics CEO promised

BB Electronics China plant has so far delivered nothing but huge costs but soon we will see a profit from these operations.
At the electronics fair Electronik-06 in Odense, Denmark this week there was a Global Sourcing conference where Denmark's largest EMS provider BB Electronics were represented by its CEO Knud Andersen who told about the company's China efforts.

2003 BB Electronics decided to establish a manufacturing unit in China. The establishment ha though been tougher than expected and during the first two years the company lost about 52 million Danish kronor on its China operation and Knud Andersen stated that you need to have about 50-60 million kronor to spend on this to manage to survive all the hurdles connected to a Chinese establishment.

"It ha been hard to establish in China, much harder than expected", said Knud Andersen.

In the beginning BB Electronics had a really sluggish start. The customers were hard to get and Knud told that many customers were delighted over the Chinese establishment but that they didn't want to be the first ones to place orders at the new fab.

Knud Andersen though stated that BB Electronics won't give up the Chinese plant.

"We will not close the factory in China and we have never considered doing that either since we have got the muscles to stay there and make a profit out of it", Knud Andersen said.

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