Fujitsu announces Victorian manufacturing joint venture with AEMS

Fujitsu Australia Limited has reaffirmed its manufacturing commitment to Victoria with the announcement it will consolidate its manufacturing operations in a joint venture with Australian Electronic Manufacturing Services (AEMS).

The joint venture will see the operation of the AEMS factory in nearby Keysborough being integrated into Fujitsu's manufacturing facility at Dandenong. Fujitsu and AEMS will each hold 50 per cent ownership of the new company, AEMS Victoria Pty Ltd.

The initiative ensures a long-term future for the formerly separate manufacturing facilities and will deliver economies of scale through reduced overheads and operating costs.

The joint venture is the result of a 12-month strategic review by Fujitsu and reflects the company's long-term commitment to maintaining a manufacturing capability in Victoria, according to Fujitsu Australia Executive Director John Kranenburg.

"Fujitsu began joint venture negotiations with AEMS in April of this year following an evaluation of a number of Australian and multinational contract manufacturers. The consolidation of our Victoria manufacturing assets into a joint venture is a good result for both organisations - Fujitsu and AEMS bring to the partnership synergies across electronic manufacturing assets, management and component purchasing," he said. "Moreover, by choosing AEMS as our partner, we will maintain the focus on quality standards for which we have become renowned." The Managing Director of AEMS, Hugh Kelly, commented on the industry trend towards specialist manufacturing organisations.

"The trend to consolidating manufacturing is well established in Australia and globally. The rapid rate of productivity improvement and automation in manufacturing has required manufacturers to undertake significant investments in plant and equipment. However, these investments can be justified only if production volumes grow at a commensurate level.

"By consolidating the manufacturing operations of both factories into a single facility as a new joint venture company we will improve asset utilisation and labour productivity, thereby maintaining our competitive edge in the industry.

"This is a positive move for Fujitsu, AEMS, Victoria and our customers," said Kelly.

AEMS will undertake overall operational responsibility for the new facility under the leadership of General Manager Neil Boyle, formerly General Manager of the AEMS Keysborough plant. Fujitsu will contribute operationally at the process level by managing the quality systems and procedures within the new venture.

AEMS Victoria Pty Ltd is expected to generate revenue of approximately $70 million in its first year of operation. The newly created company will begin operating from 1 October with the consolidation at the Dandenong site targeted for completion by year-end.