5/19/2016

GPV sets up full-size production in Mexico

As Denmark’s largest EMS (Electronic Manufacturing Services) company, GPV – which earlier this year was acquired by Schouw & Co. – now starts its own production in an area of 5,000 sq.m in the million city Guadalajara in Mexico. The purpose of this is to strengthen GPV’s opportunities in the North American market, which is right now in high growth, as well as in the Central American markets where especially the Mexican industry shows good progress:

- During the last four to five years we have had a definite focus on gaining a foothold in the American market. This has been achieved to a great extent, so now we are taking the next step by setting up local production. In so doing, we will obtain a lot of advantages – not least logistically and culturally, but indeed also by showing GPV’s presence in the market, says CEO Bo Lybæk from GPV, and he continues: - The fact that we can now manufacture within the three important time zones, i.e. Asia, Europe and America, also means that overall, we are better equipped to service the leading, global OEM customers.

GPV is already far in the planning process and expects to be able to deliver the first products from Mexico at the end of 2016. From the start-up a full SMT production line is to be established, and in the course of eighteen months, another SMT line is expected put into service. Production will be set up in Mexico’s second-largest city Guadalajara which is the capital of the state of Jalisco with 4.3 million inhabitants. The city counts six universities and has in recent years become known as Mexico’s Electronics High Tech Valley. Towards 2020, Bo Lybæk therefore expects to count around 300 employees in Mexico.

- We have been very thorough in our preparations and have for instance visited local universities to be able to see from personal experience that the educational level in Guadalajara is very high. And now that the Board of Directors has given the green light there is not far from decision to action. We have the customers, and we have a great location, and moreover we have placed one of our most experienced employees at the head of the table, Bo Lybæk continues.

 

Active ownership

 

The Board of Directors’ decision on setting up in Mexico was made shortly after the ownership of GPV was acquired by the Danish industrial conglomerate Schouw & Co. in Aarhus. President at Schouw & Co. and Chairman of GPV Jens Bjerg Sørensen is happy to be part of initiating the basis for further fulfillment of GPV’s potentials:

- There is no doubt that GPV has great potential. This is what we bargained for and this is what we may now be part of fulfilling. We run our business through active ownership and we possesses the necessary industrial and development knowhow, funding and determination to carry out the plans, he explains

 

Mechatronics for a growing OEM industry

 

GPV’s area of specialisation lies within producing mechatronics, i.e. the combination of electronics and mechanics. Here, GPV has a competitive advantage as many producers are either all-electronics or all-mechanics manufacturers. At the same time, GPV has built a niche within special customer solutions in small and medium-sized series with a high degree of flexibility. Such solutions may be both electronic sub-assembly solutions and finished products (box-builds), and GPV has a total of about 5,500 different types of electronics that are produced on a current basis for around 300 customers.

GPV’s customer portfolio primarily consists of OEMs within cleantech, instruments & industry, medico and marine & defence.. And it is particularly the American market that represents the largest growth right now:

- For several reasons, the timing is good now. Partly because the OEMs are really recovering from the crisis, and partly because our strengths lie within the Internet of Things and Big Data in the centre of the development where the OEMs would really like to create added value. We support a trend where the OEM producers to an increasing extent are concentrating on core business and therefore embark on strategic cooperation with EMS producers with a view to development and production of sub-components, Bo Lybæk emphasizes.

Last year, GPV’s revenue came to about DKK 850 million and today, GPV counts well over 1,100 employees at Tarm and Aars in Denmark as well as in Bangkok, Thailand.