2023.09.24 - The Power of OCC Manufacturing: Harmony Success in Thailand
In the ever-evolving landscape of electronics manufacturing, diversification, and strategic location choices have become key components of success. Because of trade tensions, manufacturing has shifted to other countries like Vietnam, Thailand, the Philippines, and Indonesia. Amidst this transition, a term that has gained prominence is OOC (Out-of-China) manufacturing. At Harmony Electronics, we have been pioneers in OOC manufacturing, with a strong foothold in Southeast Asia (SEA).
In the 1980s, Harmony Electronics strategically chose Thailand as our first overseas manufacturing site. We established ourselves in the small town of Banjong, approximately two hours west of Central Bangkok.
This decision was not only made in response to trade tensions, but it was also a proactive step to prepare us for growth and success in the SEA region. By 1989, our first plant was operational, marking our presence as a stable manufacturing powerhouse in Thailand.
Fast-forward to today, and we are expanding our footprint further with a second major manufacturing site in Om Noi, an hour northeast of Banjong. This new plant, set to begin mass production as early as late 2023, represents a significant step in our growth strategy. We anticipate an initial capacity increase of approximately 10% once operations commence, with a total contribution of a 25% increase to the overall Harmony group capacity once fully ramped up.
Manufacturing OOC products in the region will help us better serve our customers. Our new factory has an efficient manufacturing system.
This system helps us increase production quickly. It also helps us meet customer needs for high-quality OOCL products. We can do this in Thailand and the SEA region.
Embracing OOC manufacturing brings its share of structural, cultural, and managerial challenges. However, as C. Ching Yang, Vice-President of Harmony Group, points out, "For Harmony Electronics, it will certainly be a much easier road for the new plant in Omnoi than for others just recently entering the ASEAN space." Our long-standing presence in Thailand since 1989 has equipped us with an experienced management team well-versed in the Thai language, local customs, and many aspects of Thailand's culture.
Over half of our top managers can speak the local language well, which helps with smooth and efficient daily management. This localization is not a distant goal or strategic vision for Harmony Electronics; it's a present reality. Our ability to service the SEA region and excel in Thai domestic sales sets us apart from industry newcomers competing within the same geographical territory.
Harmony Electronics is the only Taiwanese timing device maker that can do complete assembly in SEA under their management. Our early entry advantages within Thailand have attracted numerous major brand customers seeking strategic supply negotiations. They want to move their supply chain to Southeast Asia with minimal purchasing risk, and Harmony's experience in Thailand guarantees this.
In summary, OOC manufacturing is a smart move that has made Harmony Electronics a trusted player in the SEA region. We are dedicated to offering quality products and services to our customers. This commitment remains unchanged regardless of their location. As we continue to expand and utilize OOC manufacturing, we strive to maintain our high standards.