China has become a hub for Lesjöfors’s telecom operations and growth has been substantial. Investments in local entrepreneurship, a high degree of customization and a network of partners are the secrets behind this success, and also make Lesjöfors more flexible and effective.

Speed and intuition are two key qualities when manufacturing components for telecom customers. Few other industries can claim such a high pace of innovation or development. And to achieve profitability in projects, it is important to have a production apparatus that can handle rapid transitions.

“We have, or have had, all of the well-known phone manufacturers as our customers. In one telecom project, we might produce up to ten different components, such as antennas and cosmetic details, but also the carrier, which is the core of the phone,” says Mikael Andersson, who, together with local President David Qu, is responsible for Lesjöfors’s operations in China.

Mobile phones – a fashion accessory

In many ways, what really sets the tempo in this market is that mobile phones are now a fashion accessory. End customers want the latest model with the most up-to-date design and technical features.

“There used to be fewer models on the market and their life span was about two years. Now we are talking shorter life spans and far more models,” says Mikael Andersson. “Accordingly, our projects have to start efficiently to quickly deliver the volumes demanded.”

Network builds competitiveness

Lesjöfors’s Chinese telecom manufacturing operations have grown substantially in recent years and employ about 200 people. Lesjöfors’s strengths are its combined Chinese and Swedish management, highly automated processes, cutting-edge technological solutions and an ability to find the right partners.

“Our network of partners gives us shorter lead times and access to a range of specialists – depending on our needs,” emphasizes David Qu, President of Lesjöfors China Ltd. “If we include this network, our telecom manufacturing operations employ about 5,000 people in China.”

“Our customers consider us a turnkey supplier, but we have chosen to focus on our own core competencies, while other areas, such as surface treatment, are handled by our partners,” continues David Qu. “This network is something that we can also utilize in our other customer segments.”

Rapid decision-making processes

It is not unusual for Mikael and David to receive enquiries in the morning and find themselves on a plane just a few hours later to meet a customer for further discussion. The decision-making process is short and Lesjöfors’s manufacturing processes usually last for just a few months.

“Since lead times are short, it is vital that our partners receive the correct information so that we can handle the deliveries,” says Mikael Andersson. “Developing new tools for a project might only take one to two weeks. That’s a record in our industry.”

“We have to be flexible in terms of capacity, but also have good control and keep a business-like approach in our projects,” he says. “This type of preparedness applies to our entire organization since staffing, finances and all other areas must adapt in pace with changes to projects.”

New investments

In late autumn in 2011, Lesjöfors in China worked on eight different telecom projects, comprising approximately 40 components. One particularly prestigious project was the iPhone 4S.

“Lesjöfors worked on the iPhone 4S for about a year before it was released. We were heavily involved in developing the mechanics of the phone, such as adapting the details so that they are producible and can be manufactured in sufficient volumes,” says Mikael Andersson.