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2010-07-21 00:00:00
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Central and Eastern Europe has emerged as a key manufacturing base for the electronics industry and an alternative to manufacturing in China.
With its lower labor costs, educated work force and its proximity to the largest consumer market in the world (western Europe) and more importantly that made in the EU stamp then you need to manufacture in the CEE region.
With out a doubt Central and Eastern Europe is the answer to many a Manufacturers dream and its not only Western European and US manufactures who have switched production there but major manufactures from the Japan, South Korean China, Taiwan and Malaysia are assembling and producing there finish Household and Consumer electronics in the CEE region.
Labor Cost and the quality or the local work force are key elements of any successful manufacturer in Central and Eastern Europe but the element that is most important is its closeness to Western Europe and therefore the short supply chain to market simply less can and will go wrong.
Central and Eastern Europe countries will produce over 50% of Europe’s Consumer Electronics, Household Electronics and ICT technology by 2011 the wave of production moving to this region has been steady growing for a number of years and the pace is increasing as Asia manufactures start focusing more on developing there Electronics and ICT Technology production base in Central and Eastern Europe.
Poland is now the second largest producer of household white goods and is expected to over take Italy as the number one produce by 2014. The market for Electronic manufacturing service market in CEE is expected to of reached $ 30 billion by 2014.
Some examples of companies who successful in the Central and Eastern European region would be:- Dell has moved its main manufacture and assembling facilitates from Ireland to Poland and in recent develop its announced that Foxconn the Taiwan giant will take over its production for a reported investment of over $350 million.
Foxconn has had investments in Central and Eastern Europe since the early 90’s and has heavily invested in the Czech Republic it see’s Central and Eastern Europe to be its key center for its future in the whole of Europe. Samsung has had an Research and development center in Poland since 2000 and due to it success it created a separate software division for its most advanced LCD TV Set in 2005. The R&D Center now employs over 500 Polish engineers. “Polish engineers are among the best specialists in Europe, experts in digital technology and use of advanced technology,” adds Young Ki Byun, Managing Director of Samsung Electronics Polska Sp.z o.o.’s Poland R&D Centre. “They provide high quality products and Polish scientific thought valued on the European Market and recognisable as such throughout the world.”
Samsung announced in December 2009 that it was going to acquirer Amica the Polish based washing machine and refrigerators maker for an investment of $75 million as Seeks to become the dominant player in supplying washing machine and refrigerators to the European market
Central and Eastern Europe is Microsoft’s fastest growing market and will continue for the foreseeable future and will out strip demand even more then markets such as China according to Microsoft’s press release http://www.microsoft.com/emea/presscentre/pressreleases/08072008_InnovationEngineFS.mspx
Taiwan companies tend to see Central and Eastern Europe as its third home behind Taiwan and China. Language and management communication is often slighted as the biggest problem for Taiwanese manufacturers doing business in the Cee region which is why platforms such CeeIndustrial.com can really make the difference in targeting the Central and Eastern European region.
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