20 July 2005
Sun Shines Through(HKTDC Electronic Components & Parts, Vol 03,2005)
Vol 3, 2005
Focusing On Success
Sun Shines Through
Sun Electric Co
|Sun Electric Co fuses are specified by major companies such as VTech and the Chinese mainland's largest appliance manufacturer, the Haier Group|
"Our policy is to do it right first time around by monitoring critical manufacturing processes to avoid defective products," explains assistant general manager Alex Yuen.
The company began manufacturing glass and ceramic fuses, Yuen recalls, and swiftly moved to comply with the standards of the major international approval agencies.
This move was essential to build a business supplying manufacturers of electronic appliances intended for export to countries with varying safety requirements.
"The most popularly accepted approval agencies are Underwriters Laboratories of the US, the Canadian Standards Association, the Swedish SEMKO and VDE of Germany," Yuen notes. "We make fuses complying with all their different standards."
Sun, which specialises in miniature and micro fuses and accessories such as clips and holders, employs around 180 people at its 30,000-square-foot factory in Dongguan on the Chinese mainland.
High quality materials sourced in Hong Kong, Taiwan, Japan, Germany and the US are critical to the company's rigorous quality control procedures, Yuen maintains.
"Most of our major customers are manufacturers located on the mainland," says Yuen, adding that Sun also supplies fuses to other markets including Mexico, Taiwan and Singapore.
He notes that there is an almost insatiable demand for Sun's products as most electronic products need fuses for over-current protection, including televisions, DVD recorders and DVD players. "If the product uses electricity it will probably need a fuse."
Sun makes both glass and ceramic fuses under its own Sun Fuse brand name, and provides differing fuses to meet the different standards and requirements of individual markets.
An ordinary glass fuse is often sufficient for larger appliances, Yuen claims, but smaller items such as many telecommunications products may require a micro fuse for over-current protection. "Ceramic tubes often offer superior short-circuit protection," he adds.
The trend in consumer electronics towards smaller and smaller appliances has generated a healthy demand for Sun's micro fuses, according to Yuen, and booming demand for new generation AV products has also been helpful.
He notes that most production goes to large industrial companies, with VTech and the mainland's largest appliance manufacturer, the Haier Group, leading clients.
"Most of our major customers have been with us for several years," Yuen confides. "Our international business often involves selling to companies who have plants in different locations, though we still sell mostly to the mainland and our efforts are concentrated there."
Sun services these clients from its Hong Kong office, Dongguan factory and two sales offices in Shenzhen and Shanghai, which are key areas for electronics manufacturing on the mainland.
"We work with major customers directly and also have relationships with distributors," Yuen observes, adding that the company is "optimistic" about growth prospects this year. "At present the major driving force is DVD players and recorders, which are more and more popular, while new products are also good for business."
Sun currently has an annual turnover of US$3.5m, thanks to production capacity of 10 million fuses per month and a rapid order turnaround policy that is essential when supplying fast-paced industry.
The standardised nature of the company's products, says Yuen, makes it easy to maintain reliable reserves of inventory. "We have stock on hand for most orders, but if we don't we can still ship within 2-3 weeks," he claims, noting that demand is increasing so Sun is planning to increase its capacity.
Yuen believes Sun has a competitive advantage because it builds its own manufacturing equipment. "We can increase our capacity at any time, mostly by improving our automation, although it is difficult to automate production of small fuses as they are still labour-intensive," he explains.
Sun requires no minimum order and is willing to accept low-volume business, although Yuen says handling charges have to be passed on for smaller orders.
Ultimately, he believes, Sun's success is built on solid foundations of quality manufacturing, customer service and rigorous adherence to the safety standards of overseas markets. "We are very confident when it comes to quality," Yuen insists. "Our fuses are made to world-class standards."
WRITTEN BY WINNIE HUI
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