Eolane strengthens its position in Asia with the opening of a new factory in Malaysia – Le Journal des Entreprises – Maine-et-Loire
After the inauguration of its second Chinese factory at the end of 2022, a 4,000 square meter facility in which it has invested around 4 million euros, the Angevin electronic group Eolane is strengthening its presence in Asia with the upcoming opening of a new site in Malaysia, in the Kulim Hi-Tech Park, a vast industrial park dedicated to high-tech companies. The subsidiary was created last February and fitting-out work is underway in a new 2,000 square meter building which the group will be renting. “We were pleasantly surprised by the welcome and the support for the installation, confides Henri Juin, the chairman of the management board ofEolane. Malaysia is a dynamic country, with an important industrial fabric, which continues to develop, particularly in electronics and energy. Many global groups are present there and we find there a lot of skills in our electronics businesses with very well-trained people.” The country, with a risk considered low by the rating agencies, was growing by 3.6% in 2021, and the momentum continued in 2022, with +5% in the first quarter and +8.9% in the second.
A workforce of 100 people
With this new plant, the Angevin group, which is investing 5 million euros in its third Asian plant, says it wants to respond to requests from major international accounts wishing to develop from Malaysia, an Apec (Asia-Pacific Economic Cooperation) country. The geographical location of the country, located in southern Asia, close to Indonesia, makes it an important production platform for the North American market. Electronics and electrical components account for 58% of its exports. “We already have two firm customers, including a European, and a third in negotiation, specifies Henri Juin, with large volumes expected. They want to take advantage of this dynamism in Malaysia and remain cautious vis-à-vis China. We should start production with around 30 people on January 1, 2024 to quickly reach a workforce of around 100. We expect to achieve 3 million euros in turnover next year and exceed 25 million euros before 2027.” The Malaysian plant will manufacture, like the other industrial units of Eolane, electronic cards and will also carry out some integration and assembly activity. It will be added to the production carried out in China and Eolane’s objective is to deal with major markets there, aiming for contracts of the order of 3 to 5 million euros.
20% growth in China
The future Eolane factory in Malaysia, a country of 33 million inhabitants, will offer it the possibility of increasing its presence on the Asian continent. The activity of the Angevin group has indeed increased sharply there recently. “We have been established in Asia for 15 years and we have accelerated by more than 20% in the last two or three years, explains Henri Juin. We first wanted to set up a second factory in China – operational, it is three quarters full –, right next to the first. We were considering a third location in another country, along with some customers who were also thinking about it. “Since the beginning of 2022, the manufacturer of electronic boards and sub-assemblies from Angers has been working on the possibility of a new Asian site and the decision to set up in Malaysia was taken during the course of last year.” We will be the first French people in the field of EMS (Electronic manufacturing services, which refers to subcontracting companies for electronic products. Editor’s note) to settle there. “The future site should work for many customers in the fields of energy and more generally industry.
A third of the activity in Asia
In 2021, Eolane’s activity in China represented 60 million euros in turnover. This year, it should reach 100 million euros, and will soon be added to that of the Malaysian factory, for which the group envisages a bright future. “As soon as we have exceeded 20 million euros in turnover there, envisages Henri Juin, we will probably have to take an additional adjacent building or move locally. The share of Asia represents 28% of our turnover and will soon account for more than a third. We should make 150 million euros there in the years to come. ” The Angevin group, which reached 286 million euros in turnover in 2021, recorded growth of more than 10% in 2022, despite the increase in costs and the high pressure on electronic components which is still significant, still marked but tending to normalize. He plans to approach 350 million euros this year. “Originally, confides Henri Juin, we were aiming for 430 million euros in turnover in 2026 and 500 million euros in the event of external growth operations. We will probably exceed 450 million euros, excluding any acquisitions. “
The Angevin subcontractor, which employs more than 2,500 people worldwide, including 1,400 in France in 6 production sites, has two factories in Morocco, one in Estonia and a unit in Germany oriented towards prototyping. It is present in eight sectors of activity: defence, transport, energy, telecoms, industry, health, automotive and, to a lesser extent, aeronautics. “We are more and more active in new forms of mobility, continues the manager, such as electric cars, and we also want to develop in the rail sector.”
By strengthening in Asia, the group is also accelerating in its other units. In France, he expects growth of more than 15% this year. In Estonia, where it is mainly oriented towards the automotive sector for customers from Eastern Europe, it should be 7%. In Morocco, where it has two factories and has even rented a new building, its turnover has increased from 10 to 20 million euros.
