Longda: set up factories in the future to improve production efficiency

LED plant Longda electronics implements the "production concentration" strategy. Su Fengzheng, chairman and chief executive, said that most of the production would be relocated to the Chuzhou plant in mainland China to minimize the time to move. It is estimated that the production capacity will be all in place from the end of the third quarter to the beginning of the fourth quarter of this year. Next year, it is hoped that production concentration will bring benefits.

Layout, new product production centralization

Longda continues to transform. Several priorities this year include cutting down the lighting products business, concentrating production bases, and laying out new products. Chuzhou plant will be the main manufacturing base, responsible for encapsulation, SMT and the later stage of the process, which is more artificial. Taiwan's backlight, lighting related packaging capacity, and Suzhou's SMT and packaging capacity are relocated to Chuzhou.

According to Longda's plan, the Suzhou based Da Liang will retain the former process of epitaxy. Sales and customer services, and some R & D teams will also be placed in Suzhou. The main reason is that the local area is closer to the greater Shanghai area, while the Xiamen plant is mainly based on SMT capacity. As for the grain front process, new businesses such as 3D face recognition, Mini LED backlight and display business remain in Taiwan.

The layout of the Chuzhou plant in Longda was signed last April, and it began to start in July last year. It started small production in the second quarter of this year, and lasted for more than a year. Su Fengzheng pointed out that during this period, relocation and production on the one hand are very challenging for the management team. At present, the relocation progress is in line with expectations, and the Chuzhou plant has started shipping.

The construction of Longda Chuzhou factory is fast and can be called a local model student. Su Fengzheng went to look at it. At that time, he saw the scaffolding outside the factory building, and the road was still dirt road, which had not been covered with tar yet, but went to the interior of the plant, and the production facilities of the dust-free room were already in operation. It can not be seen from the outside. It has already been able to produce, and the office area has not been sorted out yet.

Chuzhou factory personnel from Taiwan and the locality, to quickly move Taiwan experience and use local talent, Su Feng said, to build a new factory as soon as possible, but also to train personnel, but also from Taiwan and Suzhou to move the machine in the past, it is indeed a great management challenge, is also the most complex plant operation since he did things.

One stop mode set factory in plant

"After the production capacity is concentrated, the total scale of production is still dispersed. It is dispersed in many places and concentrated in one place in the future." Su Fengzheng said that the Chuzhou plant has another larger function, because it adopts a one-stop mode to achieve finished products from upstream. This time, it also invites key component manufacturers to set up factories in Chuzhou plant.

Su Fengzheng, for example, because Chuzhou plant concentrates and has enough economic scale, it can have peripheral matching. For example, suppliers can be invited to build a factory in PCB plant. The relevant manufacturers will also have the will to show the overall economic benefits. In addition, optical lens will also consider how to further cooperate with the relevant manufacturers.

Su Fengzheng further explained that in the past, suppliers had to make semi finished products before giving them to Longda. The cost of inventory, packaging and transportation was relatively high. In the future, factories and factories in the future will be built, and each workshop will be separated by one wall to reduce the cost of logistics and packaging.

The efficiency of Longda's production in Chuzhou plant is expected to ferment in the next 2019 years. As for the part of the PCB plant, due to the time needed for the factory to be built, the relevant benefits are not expected to appear until the second half of next year.

Source: Business Times

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