Manufacturing / Production Technology, Hardware & Services


Profile on RC&C: a local leader in turnkey electronics contract manufacturing

21 February 2007 Manufacturing / Production Technology, Hardware & Services

With a staff of over 280 people based on a 30 000 m² site that includes 14 000 m² of under-roof assembly facilities, the Parow-based RC&C Manufacturing (RC&C) is currently one of the largest contract manufacturers in South Africa.

No less than 100 000 television sets come off the plant's production lines in a given year, along with at least 1 million other assemblies ranging across the full spectrum of electronic, electrical and electromechanical product assemblies.

Established in 1978, RC&C initially traded as Panasonic Manufacturing Company and was dedicated initially to the production of an extensive list of consumer products, including car audio products, hi-fi systems, televisions, analog and digital decoders and airconditioner units under licence to Matsushita Electric Industrial Company of Japan (MEI) - the owner of the Panasonic brand. Following a strategic decision to diversify its activities, RC&C has evolved into a full-scale turnkey electronics contract manufacturer. Today, the plant delivers a wide range of assembly and manufacturing services, including:

* Turnkey manufacturing solutions (eg, televisions).

* Final product assembly (eg, vacuum cleaners).

* Electronic/electrical assembly (eg, electronic switches, earth leakage units).

* Electromechanical assembly (eg, electrical motors).

* Automated PCB assembly (eg, surface mount and through-hole).

* Manual PCB assembly.

* Total supply chain solution, including distribution and warehousing.

* Value engineering (focusing on continuous improvement).

Several sizeable contracts have also been secured in high-volume professional and automated circuit board assemblies as well as final product assembly on behalf of well-known brands such as Circuit Breaker Industry (CBI), IRC, Akai, Futronic and Electrolux. As a true contract manufacturer, none of the products manufactured by RC&C are marketed or sold directly by the company, but are instead supplied to the client for market distribution.

Believing that contract manufacturing is the best way to turn an innovative prototype into a profit-spinner, RC&C specialises in helping entrepreneurs by setting up an assembly line, then handling everything from sourcing the electronic components through to the assembly of the final product. The marketing of the new widget, however, remains the responsibility of the entrepreneur.

Catering for this diversity and its associated manufacturing volumes, the RC&C plant has two dedicated television production lines, two SMD lines, seven automated conventional pick-and-place lines and a manual assembly plant that employs over 100 people. A flexible design allows the assembly lines to be adapted quickly for the manufacture of different products; while ongoing investments in equipment ensure that the entire facility remains at the cutting edge of technology.

An ongoing commitment to quality has led to RC&C holding ISO certification since 1993. This approach is complemented by strong adherence to safety, health and environmental standards. In this regard, RC&C was one of the leaders in the transition to lead-free soldering: the company was fully compliant by May 2005 but still uses lead-tin solder if required by its customers.

As a wholly owned subsidiary of Reunert Limited - an industrial holdings company listed in the electronic and electrical equipment sector of the JSE Securities Exchange - RC&C complies with the recommended principles of corporate governance recommended by King II.

An independent survey has shown that the direct and indirect shareholdings held by black empowerment groupings in Reunert are currently between 19% and 21. Reunert would be selling a direct stake of 10% to an empowerment group. 30% of the stake will be for the benefit of individuals, but 70% will be applied for education in the broader community, ie, a broad base structure as required by government.

The company has been a profitable operation from the outset and today has a stable, highly experienced staff complement. This, together with its focus on high-quality manufacturing and exceptional customer service, has enabled RC&C to become a leader in the local consumer electronics market.

For more information contact Bertus Bresler, RC&C Manufacturing, +27 (0)21 931 8181, [email protected], www.rccman.co.za.





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