CAPE EMS BERHAD: Turning the Tide in the EMS Industry with Its Innovative Customer-Centric Approach

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Christina Tee Kim Chin, CEO, CAPE EMS BERHAD

When it comes to electronic manufacturing, it’s not just about cutting the mustard anymore. From supply chain management to quality control, businesses must navigate a myriad of obstacles to ensure that their electronic products are produced efficiently and to the highest standards. With rapidly evolving technology and ever-increasing customer expectations, maintaining profitability while navigating intense market competition can be a tricky balancing act. This is where Electronics Manufacturing Services (EMS) comes in, providing end-to-end solutions for the design, production, and delivery of electronic products. EMS is a game-changer in the industry, enabling businesses to focus on their core competencies while leaving the manufacturing process to the experts.

And when it comes to EMS, one name stands out from the crowd – Cape EMS Berhad, a leading player in electronic manufacturing. While many companies solely focus on performance, efficiency, and cost reduction in electronics manufacturing, Cape goes above and beyond, prioritizing its clients’ needs to provide tailored operations and exclusive manufacturing areas for each of its EMS customers. With a unique approach that combines cutting-edge technology, customer-centric ethos, and a commitment to sustainability, Cape is disrupting the industry, creating greater engagement, and delivering valuable results.

Cape’s Incredible Journey to the Prominence

Cape EMS Berhad commenced its remarkable journey back in the year 2013 when it started offering electronic manufacturing services (EMS) for wireless communication equipment to Ruckus Wireless Inc. However, like any thriving enterprise, its journey to success was not without challenges. In its early days, the company faced numerous hurdles, such as securing financing, building trust with potential customers, dealing with supply chain issues, and developing a suitable business strategy that would support its future growth. But with Christina Tee Kim Chin, a seasoned industry veteran at the helm as the CEO, the company was able to overcome its initial challenges and forge ahead on its path to success. As a full-fledged factory lady who started from the bottom, Christina brings a well-rounded perspective to her management style, enabling her to have a holistic view of the organization’s operations.”We are proud of Cape EMS Berhad’s progress to date and are confident in our future growth,” affirms Christina.

Since September 2019, the company has been Mimosa Networks’ qualified EMS provider, offering EMS for various product models. And since then it has continued to expand its portfolio of industrial customers by providing EMS for new product applications and industries. For instance, in 2019, the company secured various orders for EMS provision for smart utility devices for a customer in Japan, and POS terminals, digital vending machines and portable power desks in 2020. It also ventured into the consumer electronic products sector by securing EMS provision orders for vacuum cleaners and electronic cigarettes in 2019 and 2020 respectively.

Between 2020 and 2021, Cape EMS Berhad bolstered its production facilities through several strategic moves. First, the company extended its Senai 227 factory floor space to cater to product expansion. Second, it acquired the Kempas 6 Factory for EMS of smart utility data collection equipment. Third, the company purchased and installed machinery, equipment, and clean room facilities for the EMS of electronic cigarettes. To further enhance its manufacturing capabilities of electronic products, Cape purchased and installed two surface mount technology (SMT) lines, mainly used for new product development in supporting its clients’ new product introduction process.

Delivering Comprehensive End-To-End Manufacturing Services

While offering end-to-end manufacturing services, Cape takes on the responsibility of sourcing and procuring all necessary materials and services for its EMS projects, including full-box build products. “These materials and services are sourced from a combination of our suppliers, our customers’ approved suppliers as well as other suppliers, and they are procured at our expense. In some situations, our customers will provide us with the materials to carry out EMS for box-build products,” elucidates Christina.

All the procured materials, parts, and components are delivered to their factory where they undertake two significant tasks. First, they carry out the full assembly of all the components to create the finished box-build product. Second, they produce some essential components that are then assembled into the final product. Once the full assembly is complete, the final products undergo rigorous inspections and testing to ensure they are correctly assembled and function according to specifications. The packaging and delivery phase includes labelling and packaging for shipping, where Cape is accountable for the complete logistics of delivering the finished products from their factories to their clients’ specified destinations, both domestically and internationally. Generally, their products are sold on an ex-factory basis, with clients bearing the cost of delivery. Such a comprehensive and meticulous approach to manufacturing services demonstrates Cape’s commitment to quality and customer satisfaction.

Placing Customer at the Center

A pioneer in the truest sense, Cape has always placed particular emphasis on providing its customers with nothing less than the best. Cape understands the importance of building and nurturing strong relationships with its customers and takes pride in providing exceptional service that goes beyond mere production. The company has invested in dedicated specialized machinery and equipment for its E-Cigarette customer including customized production lines and dedicated areas as well as a cleanroom environment. Such untiring dedication to meeting its client’s specific needs has enabled Cape to form long-lasting partnerships with many esteemed organizations such as Tastar Electronics, K & Q, Customer A, Changhuat Plastics, SOQ, and NextCentury.

Living by Its Values of GIAT

At the heart of Cape’s philosophy lies an unwavering commitment to staying true to its core values of governance, integrity, accountability, and transparency (GIAT). These guiding principles underpin every facet of its business dealings and operations, ensuring that it always operates with the utmost professionalism and integrity. “We firmly believe that our success is intertwined with that of our customers, and as such, we remain dedicated to creating value for them at every opportunity by delivering efficient, flexible, and innovative manufacturing solutions at reasonable and competitive prices,” opines Christina.

Steering Towards a Promising Future

Advancing into the future, Cape has several strategic initiatives in its pipeline. One of the key milestones on its horizon is the purchase and installation of 10 cutting-edge production lines, along with the acquisition of state-of-the-art machinery and equipment, for its new aluminium die-cast production facility at the Tebrau 6 Factory, which it acquired in September 2022. The installation of these avant-garde facilities will begin in the second quarter of 2023 and progress steadily until the complete setup of all 10 production lines.

The company also plans to construct a new Senai 226 Warehouse, equipped with automated storage facilities, to enhance its operational facilities. It anticipates the completion and commencement of operations of its first phase by the third quarter of 2026 while its second phase is slated to be ready and operational by the first quarter of 2027. Besides this, Cape aims to expand its EMS operations for the electronic cigarette by investing in the setting up of a new ISO Class 8 cleanroom facility and the purchase of 4 new automated production lines for refill pods at its Senai 227 Factory. “This rationale is to increase our capacity to meet the expected increasing demand from the said customer. The new automated production facilities are expected to complete by the fourth quarter of 2024,” adds Christina.

Finally, it aspires to expand its factory floor space through the new PLO 227B Factory, which will be dedicated to catering to the growing needs of its existing and prospective customers. Notably, this expansion will be carried out through a proposed sale, build, and leaseback arrangement, with no capital expenditure incurred for the construction of the factory. With these transformative business strategies on the horizon, CAPE is poised for a future that is brimming with success, innovation, and growth. 

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