Vitronics-Soltec has been performing very well in the recent years with robust sales and earning growth, outperforming the overall market and gaining market share in reflow, wave and selective soldering globally. Nevertheless, at end of August 2006 Vitronics Soltec was acquired by Francisco Partners, a private equity funds. How does this affect your business strategy?
The acquisition affects us in a number of positive ways. Francisco Partners is one of the world’s largest technology focused private equity funds, and as such is totally focused on technology. They understand the unique characteristics of technology markets, and they understand how technology companies operate and develop long term strategies.
Francisco Partners has been, and continues to be, supportive of the Vitronics Soltec management team. Also, consistent with Francisco’s strategy, we see an opportunity to bring more clarity to the soldering market, something that quite frankly has been our game plan for some time now. With support from FP, it is our goal to provide the complete range of soldering solutions, globally, at the right value proposition for the unique local markets within the global electronics industry.
In the end, it speaks well for our future that we have transitioned from a well-capitalized NYSE-traded firm to an equally well-capitalized partner who is one of the premier names in technology investment.
What are your goals for the next two years and in the long run? What are your plans to achieve this? What is your approach?
Electronics manufacturers globally can choose Vitronics Soltec soldering solutions anywhere in the world for any soldering requirement and be confident they will experience the high levels of quality, service, process know-how, longevity, and innovation that are the hallmark of our company.
We plan to continue in this same direction without interruption, both near-term and down the road, strengthening our sales and service infrastructure, developing our product lines, and focusing on critical processes within soldering. We continue to innovate, and to introduce new systems and technology to meet the ongoing challenges posed by the dynamics of soldering processes and the ever-evolving global electronics manufacturing market.
For example, we have just introduced the XPM3 reflow soldering system in the U.S., a more powerful system designed for lead-free manufacturing with higher performance and lower total cost of ownership. This new reflow system will bring performance to the next level for lead free soldering, and is specifically targeted at reduced DPMO. The cutting edge myReflow system produced in Holland for our European customers will also benefit from these new developments.
Additionally, we have recently introduced our compact mySelective 6745 selective soldering system with a revolutionary new software system called ‘Easyteach’. This new machine augments our strong selective soldering product line and offers producers of high mix, low volume PCBs an attractive alternative to the less flexible lower costs systems and the more complex higher costs systems. The introduction of this new machine in Europe has exceeded our expectations, with several early adopters deciding to add additional machines. Meanwhile, in the wave soldering sector, we plan a number of innovative new releases in the coming months and years.
Of course we’re moving through the lead-free equipment replacement cycle as is everyone else, but beyond that, we’re looking at other emerging market sectors that hold promise and opportunity. We know that FP intends to give management the latitude to execute our plans, and at the same time we look forward to the technology industry expertise FP brings to the table to fine-tune our strategies. In the long term we see a number of specific opportunities to leverage this know-how with respect to extending our strengths of global infrastructure, product breadth and innovation.
Vitronics Soltec was founded in 1916 and was one of the early pioneers in the field of industrial soldering. Can you tell us a little bit about the history of your company?
Vitronics Soltec began in 1916 with one simple mission: To help people solder better. 2006 marks a significant milestone for our company as we celebrate 90 years in the soldering business, which we feel is not only a significant achievement, but brings long term know how of soldering processes. In 1916, we began with the development of an innovative electric soldering iron.
Today, our soldering machines use some of the most sophisticated automation technology available, including robotics, networking, advanced telemetry and highly interactive graphical user interfaces.
The story of Vitronics Soltec is also the story of two companies – Soltec, founded in 1916, and Vitronics Corporation, founded in the 1980’s. Both became one company with the merger of Vitronics and Soltec in 1998.
As a global player, where do you design and manufacture your systems, and where are your facilities located?
Vitronics Soltec celebrated the grand opening of its new state-of-the-art manufacturing facility in Oosterhout, the Netherlands in April 2004, not far from the company’s previous location. The move was prompted by the company’s continued growth and need for additional manufacturing, R & D and training facilities.
In 2005 we opened our Suzhou China manufacturing plant to serve the Asia Pacific region, and in 2006 the facility was expanded. Also, in 2006, we opened new state-of-the-art demonstration facilities in Marktheidenfeld, Germany, and Penang, Malaysia, and also expanded laboratories in the US and China. These new facilities expand our global reach in addition to our support centers in Korea, Singapore, Oosterhout NL, and Stratham, NH USA.
Vitronics Soltec is now a global leader with facilities, systems and expertise spread around the world. As the technology of electronic connections moves ahead into the 21st century, we stand prepared to offer the complete array of soldering systems, technology and applications knowledge throughout the world.
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