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SCMP Reporter

MOST of us probably use Johnson Electric components every day without realising it.

  The company is the world's second largest maker of micro motors, tiny electric motors used in various appliances including hair dryers, printers and motor vehicle components.

  The company produces about 500,000 of these motors a day, of which about 60 per cent is exported directly.

  The remaining 40 per cent is delivered to customers in Hong Kong or China but most is eventually exported as part of other finished products.

  The company believes about 95 per cent of its total production is ultimately exported.

 The company won two awards in the 1994 Governor's Award for Industry, the Trade Development Council's Export Marketing Award and the Certificate of Merit in Environmental Performance of the Private Sector Committee on the Environment.

 The company takes a hi-tech approach to manufacturing and customer service. It stays in touch with major overseas customers through video conferencing.

  'We can listen to customers' views from all around the world and they can point out to us exactly how we need to change our products to suit their needs,' Henry Mei, group general manager, said.

  Video conferencing also helped the company's Hong Kong-based engineers liaise with their counterparts at the group's factory in Shajing, Guangdong, over issues such as design alterations to suit customer requirements.

  The company has invested in the lease of a 64 kilobit per second communication line between China and Hong Kong for voice, image and data transmission.

  The group believes in the value of investing in research and development and devoted $60 million or four per cent of turnover to it last year.

  Total turnover in the year to March 31 this year was $1.5 billion. Globally, the company employs 12,000 staff at its headquarters in Tai Po, in the Shajing plant and at its operations in Thailand, Switzerland, Germany and the US.

  Johnson Electric has benefited from the rapid replenishment of inventory by German motor vehicle manufacturers and the introduction of new products.

  It has a strong financial position following a $650 million placement in November 1992 and a $1.16 billion convertible bond issue in November last year.

  This year, Johnson Electric achieved a significant breakthrough by winning its first order from one of Japan's top three car makers.

   This is likely to lead to further sales to the Japanese market as Japanese manufacturers turn to foreign suppliers in an attempt to contain costs.

  About 27 per cent of Johnson's sales in the last financial year were to the car industry, which places the company well as world car sales show signs of a recovery.

  The group's main competitor is the biggest micro motor manufacturer, Mabuchi Motor Co, whose market differs significantly.

          Johnson's sales are mainly directed towards the car and appliance industries, while Mabuchi's are aimed more at the audio and toy sectors.



Johnson Electric, the power behind everyday appliances