The Danish electronics manufacturer aims at further speeding up growth in the coming years. The company was acquired in 2016 by Schouw & Co. and since then the GPV group headquartered in Tarm, Denmark has headed on at high pace. In 2016, revenue amounted to DKK 877 million, which in 2017 was increased by about 30% through organic growth and acquisitions to DKK 1.15 billion. Until now, the growth target for 2020 has been a revenue increase to DKK 1.5 billion, however, the positive development has made management and owner set growth target even higher:
- To be honest, we have been surprised at how fast things have developed. The explanation is quite simply that demand from both existing customers and the intake of new customers has exceeded our expectations. This leaves us in a favourable position, which we will utilise as a platform for realising an even more ambitious growth plan, explains Bo Lybæk, CEO of GPV.
GPV specialises in EMS (Electronic Manufacturing Services), and the primary products are electronics, mechatronics (a combination of electronics, software and mechanical technology), and High Precision Mechanics. GPV has a unique access to the B2B market, which is best described as High-Mix/Low-Medium volume (HMLM). GPV provides a large number of advanced high-technology products and competencies that customers can order in small or medium-sized series – both as electronic sub-assembly solutions and complete products (box build solutions).
Growth through substantial investments
Like until now, growth is targeted to come from organic growth and acquisitions. Today, GPV has about 1,400 employees at the company’s plants in Bangkok in Thailand, Guadalajara in Mexico and in Tarm and Aars in Denmark. Over the recent 18 months GPV has invested hundreds of millions of DKK in capacity expansions in the said three countries and is currently in the process of commissioning further SMT production lines of the newest standard in both Denmark and Mexico:
- Over recent years our investment ratio has been substantially higher than our competitors’. We have shown the will and the power to take lead in the market and to invest in and together with our customers. This is what has made a decisive difference in 2016 and 2017, and this is also what will make a decisive difference towards 2022, Mr. Lybæk continues.
Specifically, GPV has expanded the electronics production facilities in Aars, Denmark, and the company expects that this will trigger more Danish jobs within electronics in Aars within a foreseeable future. A capacity expansion is also in the pipeline in Mexico, while the quite large expansion is planned for Thailand:
- Today we have around 12,500 m2 of electronics production facilities in Bangkok. It is the intension to expand to 20,000 m2 towards 2020. For practical reasons all electronics production will therefore take place in the existing production facilities, and we will build a new plant for our mechanics production in order to create the necessary space. This will expand our total capacity by 60% focusing mainly on electronics and a little less on mechanics, explains Mr. Lybæk.
Potential in Central Europa
Jens Bjerg Sørensen, President of Schouw & Co., is pleased about GPV’s positive development, and GPV has proven to be a good match to the active ownership of the conglomerate:
- Experience has shown that the best match for us are Danish industrial companies with a large, unfulfilled potential, which can be built up and grown over many years. When we acquired GPV our preliminary analysis showed that GPV had this potential, and this is already being fulfilled through the ongoing transformation process. Among others, it is a question of active ownership though industrial and development knowhow and through the injection of necessary capital, Mr. Sørensen explains.
In the beginning of 2017, GPV acquired the Danish EMS company BHE in Horsens, Denmark and has already shown great ability of integrating an acquired business. Schouw & Co. and GPV could also imagine strategical acquisition possibilities in Central Europe. Bo Lybæk clarifies:
- Today we are present in Asia, Northern Europe and the Americas, and we see a potential of also being present in Central Europe. Therefore, we are considering an acquisition of a company with existing production facilities and a customer portfolio. Economy of scale is decisive for an EMS provider and so is the case for us when thinking of the potential in Central Europe, he concludes.