Electronics Production | October 20, 2006
Swedish EMS eyes Russia
The Swedish EMS provider EDC is now looking at the Russian market to possibly cover the losses from the shrinking order books for the Swedish market.
Recently EDC lost its largest customer Powerwave which resulted in needed lay-offs at the EDC plant in Munkfors, Sweden. "We lost over half of our production volume over one night", said EDC's CEO Per Smeds. As a result from the loss of the customer Powerwave EDC's annual turnover went down from mor than 24 MEUR to a little more than 10 MEUR. However the company's fab in Kaunas, Lithuania is pretty filled up with orders. Thanks to the previous owner of the Kaunas factory, Elsis, this factory is very successful, not only because Elsis now is contracting EDC for its manufacturing at the plant where Elsis used to run its manufacturing by themselves, but also because Elsis is a channel and an inroad for other important Russian customers. "We are seeing a great growth potential in the Russian market and we are expecting to double the turnover at the factory during the next year", Per Smeds added.