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Press Release Press Release Glasgow headquartered Teknek; the global leader in the contact cleaning sector is gearing up for growth. From its’ two facilities in Renfrewshire Teknek supplies specialist equipment which helps ensure advanced manufacturing processes deliver high yields. This ranges from production of Flat Panel Displays to Automotive Glass, Medical Packaging to Fuel Cells. The company is unique in its sector in that it designs and manufacturers its’ own products locally and exports over 90% of its output. A key element is to improve competitiveness of the product offering whilst retaining production in Scotland. A major training program was launched in November 2006 supported by Scottish Enterprise Renfrewshire. It involved training over 180 people, all employees, shareholders and principle suppliers in Continuous Improvement Techniques. Phase 2 was to provide more detailed training for around 30 people including suppliers. Technical Director Sheila Hamilton commented ‘It’s a real eye opener, not just in production but in all areas of the company. The improvement teams have managed to identify significant benefits, for example we have reduced our order process system from 40 to 10 steps, and have reduced the assembly time of one of our main machines from 12 hours to 2.5 hours. As important, people now have the ability to make improvements; we are seeing gains in all areas.’ The program continues to train suppliers and of late Teknek customers have asked to take part which will result in the whole value chain driving to the same end, the first Customer from Denmark will undertake training in June. An unexpected benefit of the program has been the space saving at the main Inchinnan facility. This combined with the need to shorten lead times will see major development work at the main plant to allow for expansion and the relocation of the Howwood facility to Inchinnan. Teknek has recently developed products for the burgeoning Flat Panel Display market. CM10 launched at the recent Finetech exhibition in Tokyo with support from Scottish Enterprise Renfrewshire Teknek expects to exploit this high growth Asian market. Teknek already exports over 90% of all production with over half going to Asia. Asia will continue to be one of the key markets for Teknek and has recently relocated one of its senior managers to the Teknek Japan office to head up the Asian operations. Kilmacolm resident Asian Sales Manager Richard Meredith, is moving to Tokyo to manage the network of Teknek sales operations in Japan, Hong Kong, Taiwan, China and India. Richard commented, ‘Following an amazing level of inquiries at the Finetech show in Tokyo, we have just had the same response at the CMM show also held in Tokyo, the enormity of the opportunity is just starting to sink in and I really looking forward to growing our Asian business. We launched several new products at Finetech including FastPad, and have already started to receive orders, its clear that we have only just begun exploit this market’. The growth strategy calls for significant growth in all sectors including the US. Despite an on going legal dispute (SDI, California, USA) Teknek sales continue to grow in USA, up some 10% in 2006. Founder and Chairman Jonathan Kennett stated, ‘SDI have made an occupation of harassing via the courts those in the contact cleaning market with direct legal action. They seem to have focused on Teknek given its market leader position’. ‘We have always taken the view that the original judgement was a travesty and have defended our position vigorously.’ ‘It would appear that the Scottish Courts agree. SDI tried recently to bring an action against Teknek. The recent case heard by Lady Smith in the Court of Session resulted in a decisive victory for Teknek.’ ‘It is very easy to conclude from the comprehensive judgement that the ongoing action is an attempt by a US competitor to destroy a Scottish company by capitalising on an aberrant jury decision in a patent case in California which relates only to a subsidiary’ commented Kennett. ‘We have been trying to settle matters with SDI but they seem more interested in trying to exclude Teknek from the US market.’ ‘Despite this, with a view to ensuring our US plans are unaffected we are going to settle matters by making payment to SDI's legal representatives. This will allow us continued unrestricted access to the US market and allow the management team to focus on winning additional business at the expense of overseas competitors including SDI.’ ‘We will be stepping up our activities in the USA with immediate effect, and have appointed another local Callum Campbell as US sales Manager to spearhead the attack’. ‘We are well advanced with discussions to acquire additional businesses which will give us a much larger presence in the US market. Moreover we are launching a new range of products aimed specifically at key sectors in the US and are confident we will continue to enjoy rapid growth in this market’. ‘The first part of our campaign will start at the June CMM show in Chicago where we will unveil new products as well as the new corporate ID. I will be attending personally to launch the initiative and engage customers’. ‘As part of an ambitious growth plan aimed at doubling the business over the next 3-5 years a corporate identity has been developed which better reflects Teknek’s position as the global leader. Within the next few months this will be rolled out across all areas of the businesses, the US will be one of the first’. With a clear commitment to continuous improvement, Teknek is launching the first major SVQ Business Improvement Techniques program in Scotland. With support from SE Renfrewshire the pilot will see some 75 Teknek staff undertake this key work based training program. Keizai Ltd will deliver the program in partnership with Anniesland College. The program will be the first of its kind in Scotland and will help establish the BIT’s program which is already well established in England. Please visit www.teknek.com or contact Jenni Westwood, +44 (0) 141 568 8100 for further information. ENDS .
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