Press Automation Technology

THE Germans are known for their mechanical engineering expertise, so when Press Automation Technology (Patec) finally managed to sell one of its machines to a customer in Germany in 2005, it was an acknowledgement of the quality of its product.

"It was a tough battle that took more than two years. We just kept seeing them, trying to win their confidence," recalls Mr Chng Kee Peng, vice-president of the Singapore maker of metal stamping press machines. "Now there are Germans who recognise that our machine can outperform German products."

Patec started life in Japan in 1992, the brainchild of Mr Hisanori Hidaka, then a senior designer at a leading Japanese press manufacturer, and Mr Michael Wee, a Singapore marketer of stamping presses.

What gave the company the edge in its early years was the technology it developed - called Fine Cold Form (FCF) - which combined two operations in the component manufacture process within a single machine.

In 1998, due to escalating costs in Japan, it moved its manufacturing operations to Singapore. Today, only a design office remains in Japan, headed by Mr Hidaka, the company's chairman and chief designer. Mr Wee, the managing director and chief executive officer, runs the company from the Singapore headquarters, assisted by Mr Chng, an employee since 2000.

The company started off assembling machines used by metal component makers in the hard disk drive industry, and this still forms the bulk of its business. However, since 2002, it has branched into making automotive components and building the machines that make them. This sector now leads the company's growth.

Patec has formed joint ventures with companies in China and Indonesia to manufacture automotive components in Wuxi and in Jakarta. It is currently looking to set up more plants in Shenzhen, China and eastern Europe.

The company, which is aiming for a listing on the Singapore Exchange by early next year, now has customers in South-east Asia, China, Japan, Europe and North America.

In FY2007, it chalked up growth of 57 per cent in turnover and 389 per cent in profits. Last year, it entered the Enterprise 50 list for the first time. "The E50 has given us higher exposure and enhanced our image. Coincidentally, since the award last year, our performance has jumped many fold," says Mr Chng.

To maintain the stellar growth and beat the competition from machine makers in Japan, Taiwan and Europe, Patec intends to continue its strategy of staying lean - its Singapore operations in Woodlands has only 30 employees - and building on its good relationships with customers.

It no longer depends on technology to give it the competitive advantage. In the decade or so since it innovated the FCF process, it has shared the technology freely with its customers and no longer has exclusive rights to it.

"What is more important is the business relationship," says Mr Chng. "We have feedback from customers that it is because of the service provided and their relationship with us that they continue to support us. Repeat orders are a big part in our growth."

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