ELANTAS Enters South East Asian Market
ELANTAS has entered the sixth and final region of the electrical insulation world by establishing ELANTAS Malaysia. The company is located in Sha Alam, in the greater Kuala Lumpur area, on an automotive-based industrial estate which is also home to global and local automotive manufacturers such as BMW and Perodua.
Initially, ELANTAS Malaysia Sdn. Bhd. is to operate as a technical center of excellence for electrical insulation products serving South East Asia, East Asia and Australasia for wire enamels (for magnet wires), impregnating varnishes and resins, potting and casting compounds and solid insulation for all electrical insulation and electronic industries. It will also serve as a technical conduit for sister companies representing “region 5”, bringing us closer to the customer/market serving both existing and new customers.
The motivating factor for setting up this new facility was various strategic objectives:
- Explore the South East Asia (SEA) market with a small but efficient organization.
- Focus on growing markets/countries in order to increase ELANTAS market share by gaining new local customers.
- Use laboratory facilities to modify/create products for the SEA markets.
- Increase the speed for sending engineering samples into SEA (coupled with local technical support) and to have more direct communication with new and existing customers.
- Make use of technical and manufacturing synergies with all sister companies.
- Establish agent/distribution business in SEA to boost volumes.
- Prepare the ground for further business expansion in the future.
The start of the project proved to be somewhat challenging, as the laws governing chemical companies in Malaysia are constantly changing. But after lengthy discussions, permits were obtained for the site in January 2014, and renovation work started in February, taking an empty shell and transforming it into a fully equipped site with state-of-the-art technology.
Consultants and external agencies helped to obtain all the necessary business and manufacturing licenses to ensure that local legislation was strictly adhered to.
Two fully equipped laboratories are now ready, coupled with a small production facility capable of manufacturing 1,000 kilograms per day. This facilitates local customer development projects ranging from smaller ones in the laboratory right up to customer production trials.
Sampling and customer development has now started, thanks to support from sister companies supplying technology and production transfers and the recruiting of both technical and commercial staff internally. The goal is to accelerate growth for ELANTAS in South East Asia in all business lines (PI/SI/EEM and now SEI).
The latest addition to the equipment in Malaysia will be a 100 litre reactor capable of tailoring and developing resins locally for business lines PI and SI.
Further training of staff is essential for business growth, and extensive programs are being implemented until the end of 2014, both in Malaysia and with sister companies across the globe.
The first major ELANTAS Malaysia milestone was met when the first order for solid insulation was placed in September 2014. This will serve as our spring board for future success.
With these facilities ELANTAS Malaysia will live and work by the motto “think globally; act locally” with our diverse technology, processes and culture to make sure that ELANTAS are successful in this relatively unknown region. Thanks to the backing of external third party facilities, universities, sister companies and cross divisional synergies this success has been given the best possible chance.
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