Paul Weaver, OK International’s VP of sales and marketing, reveals the driving forces behind the move and the benefits to customers in the group’s new business strategy. The company recently rearranged its Metcal, Techcon Systems and Impell brands under the single OK International umbrella.
What are the benefits to the users of this reorganization in the group?
The re-branding of Metcal, Techcon Systems and Impell under one single OK International brand includes not only a visible element (logo), but also incorporates a long-term business strategy which will focus on enhancing all aspects of customer service. With the lead-free deadline looming and production continuing to migrate around the world, OEMs and EMS providers are re-evaluating their workbench equipment and suppliers. Customers want lower cost equipment, single-source supply for associated worktop products and a global distribution/technical support capability. The common brand will help us to communicate the true breadth of our product portfolio with existing and future customers. The most obvious benefit to emerge from the re-branding is the improving cost-performance ratio of our products. For example, Metcal was a specialist technology-driven brand with a correspondingly high price-tag. Now, by incorporating the SmartHeat solder-tip technology with design innovations and manufacturing volume products at established low-cost production facilities, our range of soldering and rework solutions is growing, while product cost is reducing.
What kind of synergies do you see, and how will they provide value for your customers?
By re-branding under the single name, we can focus our full R&D, manufacturing, sales, distribution and support resources on providing a broader range of products designed to appeal to a wider audience. Sales, application and service support levels are an immediate beneficiary. In the past, customers might have been expected to deal with three different sales, technical and after-sales contacts, a wasteful process. Now the regrouped team offers an efficient one-stop-shop across a range of workbench-product requirements for hand soldering, rework, fume extraction and fluid dispensing.
What are the corporation’s aims in general and in particular for Europe?
The fundamental corporate aim is to become the global electronics industry’s preferred supplier for workbench environments. Interestingly, the visual impact of the rebranding exercise will be less noticeable in Europe because of the existing strength of the OK International brand in this region. From a product perspective, we will be focussing on Europe’s unique challenges and opportunities which range from meeting the needs of the high value-added automotive sector to growth in the low-cost Eastern regions.
Do you think your high growth and success can be maintained?
At this stage, brand consolidation and the introduction of a broader product range are the key objectives. However, as new products become available, especially lower cost SmartHeat soldering equipment, significant growth opportunities will emerge.
Let’s have a look at the global regions. What are the different market shares in the diverse areas of the equipment, with focus on Europe, and what do you expect in the mid-term?
As a global business we are broadening our product range to offer local solutions for differing needs. With labor-intensive production centering on China, our cost-efficient PS-800 system is an excellent example of a soldering iron developed for the needs of a specific region. Its simple, no-nonsense design was driven by the needs of volume-manual assembly facilities in the Far East. However, it still appeals to cost-sensitive manufacturing environments in Europe. At the opposite end of the market, the MFR series (multi function rework) system is designed to offer the performance, features and flexibility demanded by European customers. By broadening its product range we are offering our global customer base the choice of selecting a solution that best suits its local needs.
You are introducing helpful tools and technologies for the users‘ workbench. What are the key performance data of these tools and what about the competition in this field?
Research and development resources are focused on product price-performance, quality, flexibility and features. Recent introductions include a workbench fume-extraction system which illustrates changing market needs and our ability for designing versatile products. For example, five-years ago fume-extraction installations typically involved large custom-fitted systems requiring considerable planning and engineering. Such a project for 100 operators could take three years from first enquiry to completion. Today, customers want the flexibility of small, lightweight and powerful workbench fume-extraction systems tailored to the needs of individual operators. With the BVX-200, a recent installation involving 100 operators was demonstrated, sold and installed in just three months. Likewise, the DX-300 workbench-dispensing system has set a cost-performance benchmark by reducing the price of programmable dispensing equipment, down from over €1,200 to under €600. Once again, design innovation, broader appeal and low-cost volume manufacture have all contributed to cost reduction. The next product is the MFR series, a soldering, desoldering and rework unit. Following the price-performance theme, this system is again designed to take established SmartHeat technology to the volume production and repair markets.
In which segments would you expect further or even outstanding growth tendencies?
In terms of European sectors showing growth, the low-cost Eastern European regions including Hungary, Poland and Czech Republic remain the hot spots. However, in the mid-term we also expect growth from North Africa and further east into Romania, the Ukraine and Russia. Regarding industry potential, automotive manufacturing remains strong, with additional growth coming from the mobile telecommunications service and repair industries.
How has the advent of advanced packaging such as flip chips, BGAs, CSPs, etc. influenced technology and solutions?
The growth of field-array packages in volume products has refocused manufacturers’ attention on non-contact soldering, rework and repair technologies. We have always had a strong presence in this field of application and have invested significant R&D resources towards updating our mid to high-end APR-workstation range over the last two years. Productronica will also see our launch of a low-cost, hot-air rework tool which is designed to exploit our technical knowledge, while remaining financially attractive in price-sensitive markets.
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