Circatex first anniversary

Citation

(2006), "Circatex first anniversary", Circuit World, Vol. 32 No. 1. https://doi.org/10.1108/cw.2006.21732aab.007

Circatex first anniversary

Circatex first anniversary

Keywords: Electronics industry

A year after the Circatex team made a courageous entry into the printed circuit manufacturing business at the former Viasystems plant in South Shields, UK, they review their first 12 months' trading.

The factory layout continues to be rationalised and consolidated in line with the Circatex service-oriented business strategy, and there has been a 70 per cent increase in the number of production workers on the payroll. Redundant machinery has been disposed of and the plant is being progressively re-equipped.

Chairman Steve Jones explained the investment strategy: “We started up with equipment we inherited, but worked smarter”. The kit is still good – in fact better because of what we have spent on maintenance and refurbishment, particularly to improve the reliability of automatic handling on which we depend heavily.

“During the year we have invested in equipment that we need to offer flexibility in small batch quick turn production, specifically in front end engineering, optical inspection, and electrical test. We effectively have no borrowings, and we have financed our investments out of cash flow”.

Circatex have sufficient space available to enable them to properly prepare and service a new area before moving equipment into it. Examples are the AOI shop, with four new Camtek machines in operation, and the electrical test shop, with four new Microcraft probers installed and the floor marked out ready for the grid-testers to be re-located.

Steve Jones continued: “We have sufficient manufacturing capacity to fulfil all of our anticipated volume requirements, and we can turn on capacity very quickly, basically by recruiting additional people”.

“For the next twelve months, we will continue to direct investment towards improving flexibility, whilst we continue to develop the service model and begin to introduce innovative manufacturing technologies such as ink-jet printing.”

“The service driven strategy has been very successful; our Fastrax quick-turn business has grown rapidly during the last six months, and we anticipate similar growth in our Advanced Materials Technology division”.

Recently joined the Circatex executive team are Craig Thomson as Group Sales Director and Martin Morrell as Technical Sales Director. Neil Chilton has moved from sales to take up the role of Technical Director.

Neil Chilton commented that it was a positive reflection on the confidence and respect which had developed around the Circatex name over the last 12 months that customers who had been left stranded by “industry casualties” were bringing their work to Circatex in the knowledge that their supply-line would be promptly and efficiently reinstated.

It was also significant that the majority of process and equipment suppliers had shown faith in Circatex and given good support over the first 12 months; only one or two continued to trade on cautious terms.

Circatex have extended their range of services by adding new trading divisions to the mainstream operation. “We have got to put as many legs on our stool as we can”, said Steve Jones, “but our focus remains totally within the PCB industry”.

Fastrax is Circatex' fast response service for the high-technology market, with its own dedicated team, offering 2-36 layer boards on 2, 3, and 5 day turnaround, and a quick-turn service on flex-rigids.

Circatex Advanced Materials Technology has been launched to cater for the requirements of customers with high-end, flex-rigid, thermal management and extreme environment applications, with a high level of engineering support and reliable lead-times on prototype to production volumes.

Gateway is Circatex' partnering operation. Whilst Circatex accept the inevitability that volume work will go to China, they have a comprehensive background of experience in engineering jobs for high volume production and, as part of their service, can work with the customer to achieve a smooth transfer to Far Eastern manufacture. Should customers subsequently experience particular difficulties or issues, Circatex are able to work with them to evaluate problems, and in emergency situations to back-fill the volume by in-house manufacture.

Circatex continue to enjoy a solid order book, and have experienced only one bad month for order input, January 2005, in their first 12 months trading. They are getting realistic prices and showing a solid profit each month. Loadings are controlled very carefully so that delivery performance can be maintained, particularly the Fastrax service. Circatex are not afraid to decline work which would probably be attractive to some of their competitors, but which would block quick turn capacity.

The automotive sector is still strong; very demanding and very cost sensitive but with good forward visibility. Circatex were not hit by the Rover collapse – ironically, Rover did not buy their boards in the UK! In the telecom sector, BT have a project called Twenty-first Century Network, which will involve complete renewal of the UK's telephone network between 2006 and 2009. Twenty-six million line cards will be required, and it is inevitable that the volume will go to China, but the systems contain some very high technology hierarchy cards which Circatex have the capability and capacity to manufacture cost effectively.

In anticipation of the July 2006 RoHS deadline, Circatex have the most comprehensive range of lead free finish options in the industry, but are still concerned that despite all efforts there is insufficient customer awareness. Presently about 30 per cent of deliveries are tin-lead HASL, 30 per cent nickel gold, 25 per cent OSP, and the rest immersion tin or immersion silver. Lead-free HASL will be offered if there is a sufficient demand.

Exciting technology developments are in prospect as Circatex continue their strategic evaluation of new manufacturing concepts based upon applications of ink-jet printing. They are founder members of the Direct Write Association and have formed working partnerships with major equipment suppliers and some prominent names in the aerospace industry, who share the view that digital direct patterning techniques will revolutionise the PCB fabrication process.

Through a period when UK printed circuit fabricators have suffered continuing erosion of business and the industry has seen a succession of factory closures, Circatex justifiably celebrate a very successful first year and move into the future with structure, focus and momentum.