Outsourcing 2.0: Mita-Teknik has cracked the code in China
Mita-Teknik can now deliver power panels to the industry at 20% lower cost than when production was located in Eastern Europe. The new factory is fully optimized, and production capacity has been doubled, making room for new customers.
The Danish firm Mita-Teknik has now completed the expansion of its production facilities in Ningbo, near Shanghai in China, where it manufactures power panels for the process industry. At the same time, Mita-Teknik has optimized all its procedures and workflows, enabling the 100 employees to produce the panels at 20% lower cost than when production was located in Eastern Europe. Production capacity has also been doubled.
Rising production costs in Europe were the motivation for Mita-Teknik to begin setting up production facilities outside Europe. Thanks to the transfer of know-how and the introduction of LEAN production principles, Mita-Teknik now has a modern, automated production unit with a quality level meeting the highest western standard. Mita-Teknik is therefore now giving its partners access to all the production resources it can offer after 40 years in the sector. Delivery times have been cut significantly through optimized production processes and an expanded supplier network. Wind turbine manufacturers are particularly well represented among the clientele, but customers also include major companies in the food industry, mechanical engineering and the process industry.
Focus on Quality
All power panels are tested using the company’s automatic testing systems, streamlining production and thus enabling Mita-Teknik to ensure the highest quality and reliability for its customers, tells COO Klaus Kromann Knudsen:
- The construction of the Chinese production unit in Ningbo required thorough preparation and several years of efficiency enhancements and adaptations, including the implementation of ISO9001-2015 and ISO14001. And, since we opened the factory in 2009, we have become better and better at finding just the right suppliers and hiring the right personnel. Today, we have an exceptionally good, efficient network of subcontractors, enabling us to source the majority of components locally. Following an expansion and modernization in January 2017, we now have a modern, fully optimized production unit, says Klaus Kromann Knudsen.
But lower prices, high quality and good delivery times are not the only parameters that Mita-Teknik’s customers can benefit from, according to Mita-Teknik CEO Jesper Andersen.
- Our customers can now use us as an outsourcing partner and get all the advantages without investing in China themselves. All enquiries can be addressed to our headquarters in Denmark, all the conversation about development and optimization will take place with us, and then production will be started in China. We have competitors who can do a little of the same, but I will dare to say that we are a little better at optimization and rather better at supporting customers through the whole process, so that we can further develop the customer’s products in close collaboration, he says.
For further information, please contact:
Jesper Andersen, CEO
E-mail: firstname.lastname@example.org - Phone: +45 2236 8600