New look electronics solution Melecs

NEW LOOK ELECTRONICS SOLUTION

The newly formed electronics specialist Melecs is making sure it makes full use of the long-term know-how of its employees and strong customer relationships to build on a successful management buyout. Emma-Jane Batey spoke to COO Bernhard Pulferer to find out more.

Although the name is new, Melecs has a long history that’s well known in the electronics industry. Created following a successful management buyout of a number of business units from Siemens AG Austria, Melecs is just two years old but has more than 25 years of electronics expertise, thanks to its strong position in the market throughout its history.

The management buyout was instigated when three senior managers from Siemens AG Austria decided to build their own team. COO Bernhard Pulferer was one of those managers, and he told Industry Europe how this decision has proven to be successful.

“We have certainly retained our strong relationship with Siemens and are registered with them for continued activities, but as our own operation we quickly thrived, and our management team saw considerable benefits to operating as an independent business.”

Austria-based Melecs is therefore both a new provider on the international electronics market and a recognisable face, which brings with it the benefits of being able to operate in a fresh, customer-focused way while still making the most of industry expertise and long-term customer, supplier and employee relationships.

Current success

The company has three core business areas, with electronics manufacturing representing the major portion of its activities, segment-tosegment switch cabinets the second largest and the production of mechanical parts for rolling stock vehicles the third largest area. In this last area, technically advanced pantographs for various vehicles including highspeed trains are a popular product within the portfolio. Of the €160 million turnover posted in 2010, electronics manufacturing represents at least €110 million, with switch cabinets generating €25 million and the remaining nearly €25 million from mechanical parts.

Mr Pulferer explained how these business areas work together to deliver a complete service to its customers worldwide. He said, “The buyout has ensured that we have a strong team that’s used to working together, but also passionate about the new opportunities we’ve gained. While we don’t plan to acquire any additional businesses for the time being, we do predict continued solid growth across our business areas and we will consolidate first so that any further growth is in the same positive mould we’ve established.”

Vertically integrated company Melecs has three sites in Austria, in Siegendorf (electronics production EWS), Linz (switchgear production SWL) and Vienna (mechanics production MWW), with additional sites in Teplice, Czech Republic (switchgear production ETS) and Györ, Hungary (electronics production EWG). Melecs also has a production partner for electronics in Sibiu, Romania. Melecs generally has three main branchs – mechanics, electronics and switchgear. In the field of electronics, Melec works primarily in four commercial segments – automotive, white goods, industry and communication – with each area dedicated to electrical excellence, innovation and continued development. Within the electronics field, Melecs is focused on working with white goods manufacturers and automotive electronics companies, particularly in major niches such as electronic control units and automotive LEDs for front and rear vehicle lights. Mr Pulferer added that the growth trend in both these areas is very positive and they represent important future markets.

The third segment in which Melecs is active is the international communications products market, which clearly sits closely with the company’s pre-management-buyout portfolio. Here, Melecs works together with various UK entities to develop and manufacture a range of electronics products for a specific niche in the mobile phone handset market, as well as track and trace devices for various applications. The company also works in the industry segment, with electronic solutions for building technology applications and control units for elevators.

Future focused

In all its active segments, Melecs is committed to continuous development. The company often just industrialises products and then manufactures them, but its longer-term aim is to be more of a major player in the solutions development aspect of electronics manufacturing. Mr Pulferer added, “Our goal is to be led even more by the exact specifications of our customers, and to create solutions that meet their needs. We certainly see that this is achievable in the near future as we have a terrifically strong understanding of the industries in which we operate, and we have a diligent, highly motivated workforce.”

Whilst Melecs’ key sales markets are its German-speaking neighbours, primarily Austria and Germany, its products are indirectly exported worldwide, with strong markets in western Europe, China and the USA. The company is well-positioned to achieve its growth aims in its current active segments; its strategy is to remain in these core areas of electronic control units, communication products and building industry solutions. Mr Pulferer is clear that Melecs is likely to see organic growth of at least 5 per cent year-on-year, which will allow it to develop its machinery and production capabilities as well as gaining market share.

Mr Pulferer concluded, “Our history, present and future makes us very special in this market; we have 25 years’ experience yet a young outlook, and can offer everything from mechanics, electronics and switchgear to engineering project management, logistics and production. We will continue to work with our customers and suppliers in longterm, mutually beneficial relationships that make the most of our high level of competence in creating individual solutions.” n