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NEWS & UPDATES |
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| BDC helps Komtech reshape its business for future success |
| Ottawa, Ontario, January 29, 2010 - The Business Development Bank of Canada (BDC), working with a financial institution in the private sector, has provided a $3-million loan package to Komtech, a Kanata-based plastic molding manufacturing company which will use the funds to diversify and grow. |
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| The loan was made possible through the Business Credit Availability Program (BCAP), a government initiative whereby BDC partners with other financial institutions to provide financing that helps eligible small and medium-sized businesses. |
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| With its head office in Kanata and a manufacturing plant in Pickering, Komtech provides products and services such as injection molding, global mold procurement, engineering, assembly, silk screening and prototyping. The company employs some 85 people and serves a diversity of clients in the high-tech, automotive, medical and consumer sectors. Komtech is pursuing expansion in Canada, has moved into the American market and has started production in India with a new plant slated for growth in the coming years. |
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| Diversification has been the key to Komtech's survival and growth over the last ten years. "You think you can get comfortable, but that doesn't happen," says company CEO Raj Mathur. "There are new challenges every day." |
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| For Mathur, outside help from solid and credible partners has been crucial to helping tackle the challenges the company has faced. "BDC was great from the beginning in helping financially, but also in helping us to stay competitive by making our production as effective as possible." |
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| Mathur also credits the people in his company for Komtech's ability to adapt to changing circumstances. "Machines can make any parts, but if you surround yourself with competent, dedicated employees, you can face any kind of storm," says the CEO who has transformed his company more than once. In 1999, about 95% of Komtech's activities were based on high-tech. Two years later, when the techno bubble burst, that figure plummeted to 20%. At the time, Mathur decided to put his automobile experience to good use and by 2006, providing plastic molding for the automobile industry accounted for 75% of Komtech's activities. When the recession hit, Mathur and his group of managers tackled the situation with the goal of diversifying once again. "Through an acquisition in Toronto, we diverted our production into the medical and consumer products sectors," he explains. "Last year we bought a company in the U. S. and now have a presence in that market as well." |
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| "Clients want us to be there for them at the right time," says Pierre Lauzon, BDC Portfolio Development Manager in Ottawa. "Most companies like Komtech need to spend money before they can expect to make money. When times are tough, finding a solid financial partner makes all the difference." |
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| About BDC |
| BDC is Canada's business development bank. From more than 100 offices across the country, BDC promotes entrepreneurship by providing highly tailored financing, venture capital and consulting services to entrepreneurs. |
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| For more Information: |
| Johanne Bissonnette |
| Media Relations Manager |
| 514 283-7929 |
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KOMTECH INC.:
TOTAL SATISFACTION PROFILE TUESDAY, 30 OCTOBER
2007
By the end of this year, Ontario, Canada-based
Komtech Inc., will open a division in Bangalore,
India, called Komtech Plastics India Ltd., to
take advantage of the growing market there, President
and CEO Raj Mathur says. “The Indian market
is increasing dramatically,” he explains.
“We want to capture the local growth market
in India and grow exponentially.”
The 50,000-square-foot plant in India will host
similar operations as its Canadian headquarters,
including injection molding, assembly work, tool
manufacturing and building, and product manufacturing
for the automotive, medical, electronics and telecommunications
markets. The company’s capabilities also
include project management, electric assembly,
global mold manufacturing, silk screening, prototyping
and product design support.
The India division will focus on that country’s
market, Mathur says. Customers in Canada, United
States, Mexico, Singapore, China and Europe will
continue to be served by its Canadian operation
and, if needed, supported from India and Malaysia.
“We entered several trade shows two or three
years back and there was so much interest [from
this region] we thought about starting operations
[in India],” he says. Besides, North American
customers are also asking Komtech to support their
operations in India, he adds.
This will be Komtech’s second division in
Asia. In 2005, it acquired a tool manufacturer
in Malaysia, which now operates the company’s
tooling division. The division is able to complete
tooling orders in six weeks, half the time and
cost of its competitors. “Since our shop
in Malaysia works 24 hours a day, it is a big
difference from the way most North American companies
work,” Mathur explains.
EFFICIENT PROCESS
The strong Canadian dollar is on par with the
U.S. dollar, so Komtech’s export business
is suffering dramatically, Mathur explains. As
a result, the company has implemented new lean
manufacturing processes and expanded its market
base. “We are not getting the exchange advantage,”
he explains. “We have had to install some
efficiencies into the system and make operations
more lean and efficient. We are constantly looking
for opportunities to reduce cost.”
Manufacturing employees are required to complete
Paulson’s Training Program, an online course
covering injection molding operating processes
and technology, which allows operators to have
more control and ownership over the manufacturing
processes. This requirement was implemented six
months ago and has helped the company increase
manufacturing efficiency by five percent, he says.
Komtech also implemented a material handling system
eight months ago that reduced inventory costs
by about 3 percent. |
| 
Raj Mathur
(seated, left), Komtech’s president and
CEO, attributes the firm’s success to a
committed management team. |
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The company
switched to a central regrinding of resin, which
gave a better control of inventory, Mathur says.
The company mainly had focused on the automotive
industry, but expanded into the medical, electronics
and advanced consumer fields earlier this year.
“To cope with the changing market, we decided
not to focus heavily on one industry,” Mathur
explains. Last year, the automotive industry represented
60 percent of its business; today, it is only
40 percent.
The company is very selective in which industries
it deals with, he continues. “One of our
important customers tried to give us business
at an unacceptable price and we had to politely
turn it down,” he says. "A lot of our competition has gone bankrupt
or closed down in the last year because they take
on products at a low price and eventually have
to pay the price,” he adds.
EMPLOYEE FOCUS
Mathur attributes the success of Komtech to a
strong and committed management team. Providing
a successful working environment for its employees
is integral to the growth of the company, and
its mission statement expresses Komtech’s
commitment to this idea. Its guiding principles
have led Komtech to find ways to further improve
its customer service and the quality of its products.
“We are committed to achieving total customer
satisfaction by continuous improvement of processes
and products, customer service, providing training
to our employees and investing in technology,”
the company says.
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