Teknek emerging into new markets

Published on Wednesday 27 February 2008 20:46

TEKNEK sees its growing sales force as the key to continued success, especially in emerging markets such as India and China.

A RENFREWSHIRE company whose cutting-edge technology cleans the machines used to manufacture flat-panel TVs and fuel cells is targeting a doubling of sales as it taps deeper into emerging markets such as India and China.

Teknek, which was founded 30 years ago and has its headquarters and manufacturing base at Inchinnan, aims to grow revenues to some 40 million within the next three to four years.

Part of that growth will come from bolstering overseas sales operations, while the privately owned company also plans to "upskill" its 200-strong workforce.

Teknek, said to operate at the "BMW and Mercedes end of the market", already has more than 15,000 contact cleaning machines installed worldwide and counts some of the biggest consumer electronics brands among its customers.

The firm's products help manufacturers reduce wastage – one failed pixel in a flat-screen display, for example, can lead to its costly rejection.

Managing director Stephen Mitchell said the business, which is now self-financing, was "gearing up for our next big push".

"We are not the biggest in our field, but we dominate a niche within the market.

"With a strong focus on research and development and innovation, we have the potential to more than double the company (from current turnover of about 20m]."

The company's workforce is split almost 50/50 between those involved in product development and manufacturing, and staff working in sales, management and support roles.

Mitchell said a sales and technical support office had just been opened in Korea, while an expansion of the firm's Japanese outpost and a new US office were on the cards.

Augmenting the office chain, which also includes operations in India and Thailand, is a network of distributors and representatives spanning 40 countries.

Although it faces competition from rivals operating in low-wage economies, Teknek is committed to its Scottish roots.

"I don't subscribe to this 'running away' philosophy that lots of manufacturers seem to have," added Mitchell. "When it gets tough they head off to somewhere like Poland or China. You have to make difficult decisions here and have to understand the basis on which you compete.

"We are a great Scottish business and lead our market."

He said the firm may also consider small-scale acquisitions to help it achieve its growth targets.

Meanwhile, the principle of "lean thinking" at Teknek has been extended to the setting up of a training business, which is being pitched at the company's local suppliers and the wider business community, as well as raising skill levels internally.

Teknek's operations director, Neal Layton, said: "We recognise that there needs to be an education process throughout the supply chain."

Mitchell said the group would also "lobby hard" at government level to attract more support for upskilling initiatives.

"I would get more support if I was working in England on the manufacturing improvement side than I can get based in Glasgow, which is a nonsense," he said. "All such funding in Scotland seems to be directed at 16- to 19-year-olds. We won't deliver our doubling in turnover unless we have a skilled workforce."