In the face of exceedingly difficult trading conditions, we take considerable satisfaction from our financial results in the past calendar year. Variosystems was once again able to increase sales revenue by a double-digit percentage on the previous twelve-month period. One of the things that made this possible was our determined push for harmonization within the Variosystems Group.
Global process harmonization can certainly be described as a key success factor over the past months, and it therefore continues to be the focus of our endeavors. It is vitally important that we do not allow ourselves to become overdependent on individual production sites. This is the only way to ensure that we can rapidly reallocate products among the different plants. A dual-source strategy within the Variosystems Group minimizes the procurement risk and is already used by some of our customers for selected, essential products.
The extent of our harmonization offensive is affecting the various locations in different ways. While the main focus in Switzerland and the USA is on the further development of LEAN management and automation, our Volume Production Sites (VPS) are undergoing a major upgrade of their machine parks. Thanks to these investments, we are able to optimally fulfill the dual-source orders mentioned above.
In addition to a new labeling and coating machine our team in China will now also offer all soldering processes in a nitrogen atmosphere. Thanks to the new N2 generators, the Suzhou plant is now self-sufficient. To standardize the SMD process, a modern 12-zone reflow oven was also purchased. This will complement the latest selective and wave soldering equipment.
A great deal has also been happening in Sri Lanka in recent months. Due to pandemic-related production postponements, our plant in Badalgama became the central hub for numerous customer orders. With the acquisition of an ASM SX line in Sri Lanka, all our assembly locations now have identical SMD processes.
As the third of our VPS locations, Mexico is being set up along the same lines as the process role models in Sri Lanka and China. As the installation is proceeding according to plan, we are confident that production will commence there in summer 2021. This is also confirmed by André Bättig, General Manager Variosystems Volume Production Sites:
“The establishment of the third VPS location in Mexico is in full swing and is being driven forward based on the examples of China and Sri Lanka.
The SAP connection to the entire Variosystems Group has already been completed. This means that, in the future, orders from all plants will continue to be processed via the same ERP system, thereby ensuring a full overview and transparency throughout at all times.”
These investments mean that we will also be assembling 01005 components in China from mid-2021. In addition, the harmonization of processes and IT infrastructure will enable us to carry on boosting efficiency. Ultimately, the goal is to further optimize forecasting and planning accuracy, as well as the associated procurement security for our customers.
Your Variosystems team