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Electronics Production | December 14, 2006

Unions in the old EU opposing employers, says Teknosystem MD Radoslaw Krawczak

Teknosystem is a Polish EMS provider which is mainly working as a manufacturing service for Teknoprod's sales organisation in Sweden. evertiq had a chat with Teknosystems Managing Director.

When evertiq earlier were in contact with Teknoprod in Sweden the CEO of Teknoprod, André Dziewanowski, said that all of the company's manufacturing operations have been transferred to Teknosystem in Poland because of the many economical benefits and cost savings. How is the customer base at Teknosystem? Where are your customers based? How big portion of those are based in Sweden? RK: Yes, Teknosystem, a subsidiary of Teknoprod (TP), had taken over the manufacturing from TP and, as of today, 95 per cent of the completed products are distributed through TP over the Scandinavian region. Most of the goods are sold to the key players of the Swedish industrial market. Even though the production is located in Poland, Teknosystem's client portfolio is still based on the Swedish companies reflecting the TP sales office efforts. How is the electronics industry doing in Poland at the moment? How is the business developing for Teknosystem right now and how does the financial and operational history of Teknosystem look like for the last three years? RK: Joining the UE by Poland in May 2004 accelerated the industrial investments by the domestic and international companies with a focus on more profitably segments like the electronics. The strict cost control and other initiatives had triggered the outstanding quality and a just-on-time delivery performance allowing Teknosystem to compete on a very difficult manufacturers' market. Within the past three years, we experienced an average growth of 20 per cent per year and, for the upcoming years, we anticipate at least the same ratio. Are you planning for any further growth? What can we expect from Teknosystem in the nearest future? Are you planning for any larger investments? RK: To take advantage of the rising market, Teknosystem has undertaken several investments. In January 2007, we are moving to the new plant of 7.500 sq. meters in Warszawa (Warsaw), in April 2007 the introduction of a new EPR system - Navision 4.0 ERP by MBS is scheduled. Meanwhile, we are acquiring new production machines and upgrading the existing equipment. All the investments will allow Teknosystem to increase the production base and fulfil clients demands. As an EMS provider in Poland how do you stay competitive? Which are the keys to success within the EMS industry today? RK: A short recipe: outstanding quality products, on time delivery, friendly customer service, excellent technical support, modern technology, cutting edge equipment, well trained and dedicated personnel. Do you think the business climate is different in Poland compared to the general situation in Europe? RK: Within the Old EU countries the influential work unions and the social overprotective policies make impossible to reduce significantly the costs of development and manufacturing. After the UE expansion, the corporations have discovered Poland and other countries in CEE with maybe more bureaucratic policies but well educated work force who was eager to undertake new assignments. The work unions are less demanding and willing to cooperate with employers. The governmental and regional agencies are trying to attract the large and medium size companies with the subsidies. In Poland you can feel the real free market atmosphere.
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