Large Chinese Broadband Network Provider Standardizes on Europlacer's Placement Systems

Established in September 1999, in Zhengzhou City, Henan province, Zhengzhou VCOM Electronics Technology Co., Ltd. is a broadband network multi-media system and terminal provider that began as a producer of "Distance Image Environment Monitoring." Today, VCOM still produces this, but not in volume. Almost 10 years ago, the company started with 30 employees (covering administration, manufacturing, R&D and engineering), and is up to 800 (as of May 2008).

VCOM creatively applies various operational models in the IPTV field and provides telecom operators and terminal customers with series products and service throughout the entire IPTV industrial chain. The company holds approximately 40 percent market share in the information industries, and maintains its top three position in China. VCOM's largest customers consist of all levels of the government, telecommunication operators, education professionals, electronics commerce professionals and information promotion professionals. Its competitors are telecommunications providers, namely ZTE Corporation - comprehensive provider of telecommunication equipment; Huawei -next-generation telecommunications network provider; and UTStarcom Inc. - global leader in IPTV solutions, IPTV products, VOIP, mobile Internet, Internet television, etc.

According to Mr. Han Yong, General Manager of manufacturing, VCOM's key competitive strengths in the market include its scale, brand name and internal strength enhancement.

Additionally, regional superiority (central plains or area south of Yellow River), strong governmental support and the company's innovative systems keep VCOM ahead of its competitors. Mr. Han believes that the market is driven by customer demand, and R&D based on that demand. In its early days VCOM saw the government's commitment to the "Three Agriculture Market" (farmer, countryside, agriculture) as a business opportunity and pursued market demand, in contast with its competitors.

VCOM's success is accredited to its continual product innovation. In March 2005, its product found the optimum point, in that it helped the government reduce its investment and it also provided major benefit to the farmer. At the beginning of 2008, VCOM was awarded "Henan Top 10 Innovation Brand." In addition to the above honour, customers choose to work with the company because of its experienced and knowledgeable team, a product that satisfies customer demand and well developed management systems. Mr. Han also believes its success comes from government support, accompanied by a good environment, scientific innovation and integrity.

When VCOM started operation almost 10 years ago, it was with the purpose of contributing to the development of electronic information. Since that time, it has expanded to help China increase the information service level in the areas of multi-media, broadband, information application and multimedia. As a national enterprise, it makes significant contribution to the development of IT industries in China's central plains. In the future, VCOM envisions itself growing into a larger and stronger entity to become an IT leader in the nation.

Europlacer has the placement solutions that VCOM needs to accomplish this goal.

Currently, VCOM is running approximately 20 major equipment units: SMT (screen printer, pick-and-place, reflow oven), wave soldering, inspection machine, assembly line, etc. Since 2000, the pick-and-place machines have been Europlacer's. Today, the company uses only Europlacer placement systems on its lines.

Since 2000, VCOM has ordered four systems from Europlacer: Progress 6 (P6), Xpress 20, Xpress 25T and Xpress15. The last two systems were purchased at the end of 2006 to set up a complete line with a printer and a reflow oven, and were chosen over competitors Siemens, Panasonic and Fuji. VCOM has found Europlacer and its systems to provide good performance-to-price ratios, low maintenance cost and good after-sales service support. The company finds the systems to provide high placement accuracy and good reliability. Mr. Han commented that for the last eight years, there hav e been no major breakdowns on any of the Europlacer machines that have caused major stoppages in the production line. This has resulted in a win-win business partnership between the two companies, in addition to increased product quality and decreased operator error for VCOM.

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