GPV to establish production in Mexico

The Danish electronics manufacturer owned by Schouw & Co., GPV in Tarm, Denmark, is now to establish full size production facilities in Mexico. By doing so GPV’s factory footprint is complete with sites in both Europe, Asia and the Americas.

GPV, which is Denmark’s largest EMS manufacturer (Electronic Manufacturing Services) and acquired by Schouw & Co. earlier this year, is now starting up own 5,000 m2 production site in the Mexican metropolis Guadalajara. This is effected to strengthen GPV’s opportunities in the North American market, which is currently growing fast, and the Central American market where in particular the industry in Mexico is progressing:

- During the recent 4-5 years, we have specifically focused on gaining a foothold in the American market. This has been highly achieved and we are now taking the next step by establishing local production facilities. By doing so, we will experience several benefits – particularly from a logistics, cultural and promotional point of view, says Bo Lybæk, CEO at GPV and continues: - The fact that we will now be able to run manufacturing in three important time zones, i.e. Asia, Europe and America, also means that we will generally be able to provide better services to the leading global OEM customers.  

Bo Lybæk and his staff have already come a long way in the planning and are expecting to deliver the first products from Mexico by the end of 2016. From the beginning a complete SMT production line will be established (SMT means Surface Mount Technology and involves electronic components being mounted onto the surface of a printed circuit board), and within 18 months yet another SMT line is expected commissioned. The production facility is established in the second largest city of Mexico, Guadalajara, which is the capital of the Mexican state Jalisco and has 4.3 million inhabitants. Amongst others, the city has six universities and has during recent years become known as Mexico’s Electronics High Tech Valley. Towards 2020, Bo Lybæk is hence expecting to have about 300 employees on the pay roll in Mexico.

- We have been extremely thorough in our preparations and have for example visited the local universities in order to see for ourselves that the level of education in Guadalajara is very high. And now that the board of directors has given its go, decisions are quickly turned into actions. We have the customers, and we have a great location, and furthermore, we have put one of our most experienced employees in charge, he continues.

 
Aktive ownership

The board’s resolution to establish in Mexico is passed shortly after the ownership of GPV was transferred to Schouw & Co., the Danish industrial conglomerate in Aarhus. Jens Bjerg Sørensen, President at Schouw & Co., is happy to be part of initiating the basis for further fulfilment of GPV’s potentials:

- There is no doubt that GPV has great potential. This is what we bargained for when we acquired the company and this is what we may now be part of fulfilling. We run our businesses through active ownership and we possess the necessary industrial and development knowhow, funding, and determination to carry out the plans, he explains.


Mechatronics for a growing OEM industry

GPV is specialised in the production of mechatronics, i.e. a combination of electronics and mechanics. GPV has a competitive advantage seeing that many manufacturers are either pure electronics manufacturers or pure mechanics manufacturers. Also, GPV has built up a niche and supplies low- and medium-volume customised solutions with a high degree of flexibility, including electronic sub-assembly solutions and finished goods (box-build), and manufactures a total of roughly 5,500 electronics products for about 300 customers.

The customer portfolio mainly consists of OEMs within cleantech, instruments & industry, medico and marine & defence, and the American market represents the largest growth right now:

- For several reasons the timing is good. For one thing the OEMs are seriously recovering from the crisis, and for another our strengths within Internet of Things and Big Data are in the centre of the development where the OEMs want to create added value. We are supporting a trend where the OEMs increasingly are concentrating on core business and therefore initiate strategical co-operations with EMS manufacturers on the development and production of sub-components, Bo Lybæk further points out.

In 2015 GPV reported revenue of about DKK 850 million, and today GPV employs more than 1,100 people in Tarm and Aars in Denmark, and in Bangkok in Thailand.

 

For further information, please contact:

  • Jens Bjerg Sørensen, President, Schouw & Co., phone +45 8611 2222
  • Bo Lybæk, CEO, GPV, direct phone +45 2128 8797
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