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All Aboard!(HKTDC Electronic Components & Parts, Vol 02,2006)

Elec & Eltek Int'l Holdings Ltd

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Elec & Eltek Int'l Holdings Ltd is fast tracking to be the foremost manufacturer of printed circuit boards both in Hong Kong and on the Chinese mainland

Like an express train on a straight track, Elec & Eltek Int'l Holdings Ltd is fast tracking to be the foremost manufacturer of printed circuit boards (PCB) both in Hong Kong and on the Chinese mainland.

The firm's principal activities are the design, development, manufacture and distribution of high-density, double-sided and multi-layered PCBs. The scope includes everything from the original first-form, double-layer boards to today's 36-layer designs and advanced micro-via technology.

"We started out in regular PCB manufacturing in 1972," proclaims executive director Thomas Li. "We had immediate success and have remained committed to the line ever since."

Elec & Eltek is a publicly listed company in Hong Kong and Singapore. Concurrent with the decision to go public, the firm also decided to establish the PCB manufacturing arm as an independent entity.

Today, Elec & Eltek says it is the biggest PCB manufacturer in both Hong Kong and the mainland, by volume - claiming production figures of four million square feet of boards per month for the entire range from 2-36-layer boards including those incorporating micro-via technology, and back panels into which daughter cards slot to form the backbone of any device using PCB cards.

"At the end of 2004, three of the firm's founders decided to retire while Kingboard Chemical Holdings Ltd, previously the second-largest shareholder, took over the entire company," says Li.

Kingboard Chemical is one of the world's largest producers of laminates and, since the establishment of its first laminates manufacturing facility in 1988, is engaged in both vertical and horizontal development. It now operates more than 40 manufacturing plants, turning out a wide spectrum of products ranging from paper laminates to PCBs, chemicals, copper foil, glass fabric, glass yarn, bleached Kraft paper, LCDs and magnetic products.

Elec & Eltek's PCB manufacturing takes place in Hong Kong, and in Guangzhou, Kaiping, Shenzhen and Nanjing on the mainland, and in Thailand.

"We benefit from the synergy of having Kingboard Chemical supply the major raw materials and having access to our technological and production skills. We combine these input streams to leverage the company from strength to strength," states Li. "We can also save on the material costs as we do not need to go to market and fight for the best price. Also, on the procurement side, we are always assured of supplies."

Meanwhile, Elec & Eltek is also looking to expand monthly production capacity by some two million square feet over the next three years.

"Looking ahead," says Li, "we want to continue expanding and envisage average growth of more than 20% per annum in terms of both revenue and profits. Our goal is to be a leader in the PCB manufacturing industry. At the same time, we have parallel aims of assuring employees compensation, and of being noteworthy for taking care of our staff and offering meaningful career paths."

Market coverage is fairly evenly distributed between Europe and the US, Southeast and North Asia. However, Li sees the mainland looming large as a major market. "Demand on the mainland simply continues to grow," he smiles, "with end users including manufacturers in the automotive, computer, consumer electronics and communications sectors - the latter including mobile phones and their base stations and associated networking products. The consumer electronics sector is a huge user of the original double-sided and four-layer type of PCB, as is the automotive industry."

The PCB division employs approximately 12,000 experienced staff and predicted revenues for 2005 will be at US$550m levels, adds Li.

Other Group members include Elec & Eltek Display Technology Ltd, which designs and manufactures high quality LCD products including a variety of display modes (TN, HTN, STN and FSTN) and LCD modules with different IC package forms (COG, COB and TAB), and E & E Magnetic Products Ltd, which is positioned as a major supplier of high quality magnetic related products.

Hong Kong's Elec & Eltek is clearly mapping out a great future for itself and its employees, and shareholders are likely to be just as happy. No wonder its "all aboard" the fast track train.

WRITTEN BY TONY HENDERSON

Elec & Eltek Int'l Holdings Ltd

2/F, Merit Ind Centre
94 Tokwawan Rd
To Kwa Wan, Kowloon
Hong Kong
Tel: 852-2954-3998
Fax: 852-2303-9103
Email:
thomasli@eleceltek.com
Web: www.eleceltek.com