Wetzikon, 22. September 2008
Reichle & De-Massari AG (R&M), the cabling specialist from Switzerland, continues to expand its international markets. The first of five management and logistics hubs it has planned around the world was officially inaugurated in Singapore in July 2008. Through its Asia hub the company intends to further satisfy its customers’ needs through market proximity and shorter delivery times. Besides an improved distribution network, some of the products for custom-made solutions are also to be manufactured in Singapore, the principle being to produce in the region for the region.
Reichle & De- Massari AG (R&M) is one of the world’s leading cabling specialists. With its 30 market organizations on all five continents the company has experienced a period of dynamic growth over the past five years. The planning for the Asia hub pilot project was initiated in November 2007. Many factors spoke in favor of Singapore as the site of choice: the geographic location and its excellent logistical connections with the international transport network, a simple and straightforward legal system, and a pro-Western mindset. After a six-month planning phase the Asia Supply Chain Hub opened on July 10, 2008. For R&M it is yet another step towards driving global growth. Other supply chain hubs are to be gradually set up over the next few years. Only with a local presence is it possible to develop and provide customer proximity, short, efficient delivery times, and customer- and country-specific solutions.
The products and solutions developed and manufactured in Singapore are intended primarily for the Asian market. Core products and technically challenging products are to be made in Switzerland as before. This approach allows R&M to ensure that quality standards are maintained. The global quality assurance program guarantees that no compromise is made, even with the increasing decentralization of production.
India and China as growth markets in Asia
Core markets in Asia include first and foremost India and China, followed by Korea, Taiwan and Japan. R&M generates annual sales of around 30 million Swiss francs in Asia. R&M is also continuing to expand its sales and marketing organizations in individual countries. In Asia it is not just Western companies that are investing in high-quality structured cabling systems. Customers also include local companies in the public and private sectors.
India and China, which are among R&M’s core markets in Asia, are the focal point. Strong economic growth is driving high levels of investment into cabling. India in particular offers enormous potential in the public sector. Production facilities for fiber optic products for the local market and its requirements are therefore to be set up in India, too.
Production – globalization and decentralization
R&M is to go on manufacturing its core products and components in Switzerland. A new production and logistics centre is to go into operation in Wetzikon at the end of 2009. Wherever possible and wherever it is economically and ecologically sensible to do so, the company will push ahead with the relocation of supply chain competencies to the relevant market regions so the value added chain as a whole can be made economical and effective. The emphasis here is on improved services, reduced delivery times, custom-made developments and optimized transport costs.
Facts & Figures
Reichle & De-Massari AG (R&M) develops and manufactures passive wiring solutions for communication networks. With high quality copper and fiber optic cable products, R&M has gained the reputation of a leader in quality. The company dominates the Swiss market and has established market organizations in 30 countries. The company generates roughly 75% of its sales abroad. Turnover in 2007 was CHF 241 million with an EBIT of 13 percent. More than CHF 7 million are invested annually in research and development. R&M is among the 500 largest and fastest-growing companies in Switzerland, continually creating new jobs. Currently it has a payroll in excess of 650. The company is fully owned by the Reichle family and is managed as an independent company business by the second generation.
Contact: Reichle & De-Massari AG (R&M), Esther Derendinger, Public Relations, Binzstrasse 31
CHE-8620 Wetzikon, Switzerland, Phone +41 44 933 83 30, E-Mail esther.derendinger@rdm.com