Precision engineering product manufacturer Juken Technology Ltd. of Singapore hopes to increase its market share in the Chinese automotive industry for its newly acquired car component businesses.
We have to increase our market share in China's fast-expanding automotive industry significantly, as almost all of the output from our newly acquired stepper motor manufacturing companies is exported, Chairman David Wong said in a recent interview.
Juken acquired stepper motor manufacturers Microcomponents Ltd. and Zuhai SMH Watchmaking Co. Ltd. from Swatch Group of Switzerland in March.
While Swatch is focusing on its core watch business, the acquisition has put the Singapore-listed Juken in the international market.
Wong pointed out that more than 300 million stepper motors have been sold worldwide since their inception in the 1990s, as the tiny plastic gears have become compulsory for driving the odometer, speedometer and clock on the car's dashboard or instrument cluster.
While he stays bullish on China, Wong also is developing Indian business, with a 20-injection-press plant in Noida, near New Delhi, already running at full capacity.
This year, we are focusing on China, as our current market share is 15 percent, he said, adding that next year the marketing focus will be on India.
The two-company acquisition comes with an engineering team to continue research and development work on components for world-class instrumentation components and to develop new stepper motors for more-advanced applications.
The Chinese and Indian auto companies are buying world brands and want better instrumentation, said Wong, emphasizing the importance of the Swiss R&D team in further development of components and modular-based products for the global market.
Juken strategy is to market Swiss-standard engineering under the JST [Juken Swiss Technology] brand worldwide.
The acquisition, priced at 4.6 million Swiss francs ($4.13 million) has boosted Juken's stable to 380 injection molding machines, including 70 units with capacity to produce 40 million motors a year in China, where the market for stepper motors is estimated at 300 million units.
Juken also has manufacturing facilities in Malaysia, Thailand and Indonesia. Backing the strategic manufacturing facilities is Juken's 1984 technological partnership with Juken Kogyo and Kegin Enterprise of Japan.
Going forward, Wong wants to integrate modular manufacturing into the entire company to produce value-added products, such as clocks for cars.
Technology-savvy Wong is gung-ho on new products, saying Juken has to keep pace with market demand for quality and design.
Juken had changed products for the market, having initially started by manufacturing tiny components for cameras, which were made obsolete by the arrival of digital technology.
Wong says Juken's vision is to be a global player in precision engineered plastics components and related industries.
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