“We started localization 30 years ago when the domestic parts industry was weak, and now it has become a product that can be put on the global market.” Noh Jeong-deok, CEO of KEM Co., Ltd. (hereinafter KEM), says that in the late 1980s, imported products related to machine tools from Europe and Japan did not satisfy domestic customers due to high prices and lack of follow-up management, so they started localization.
Currently, the products developed by this company are supplied in various ways such as oil skimmer, interface cover, push button switch, code switch, spark killer, oil cooler, surge killer, surge protector (SPD), LED indicator, no fuse breaker handle, etc. . And in August of last year, the office building was expanded and relocated to the distribution complex in Seobusan, foreshadowing the second leap forward. We asked CEO Noh Jeong-deok how KEM is preparing for the next 30 years.
Q. At the time when automation and machine tool-related parts were highly dependent on imports, it seems that localization was not easy with independent technology. What was the trigger?
A. When we first started this business, the quality of domestic products was not recognized, and most of them were imported. As we depended on imported products, the price range was high and follow-up management was not performed properly.
Domestic manufacturers began to recognize the need for localization of parts by identifying these problems, and the government also requested measures to be prepared. In accordance with these market conditions, localization development was started, but when the product was first developed, satisfactory results were not produced. At that time, European and Japanese products were made by injection molding, so all metal products are produced smoothly and consistently like plastic injection, whereas domestic products use casting, so a lot of post-processing is required and the quality is not constant, so good quality products can be made. I couldn't. Nevertheless, we were able to take the first step in localization development with a lot of interest from domestic companies in line with the localization policy.
And as a result of continuous quality improvement so far, we have been able to produce products that are good enough to be put on the global market.
Q. Is there a product you are looking forward to as a hit item this year?
A. Representative items include 'SPD', a lightning protection device developed to prevent lightning damage, and 'Oil Skimmer', which separates non-aqueous oil floating on the surface of machine tool cutting oil tanks. First of all, SPD is a lightning arrester/surge protection device that protects various electrical equipment from surges and is characterized by being directly installed on a distribution box.
Looking at automation equipment these days, all controllers are automatically run by memory ICs, but there are cases where the memory is erased by lightning or external high-frequency noise. In order to prevent this, SPDs are mandatory, and the use of SPDs in homes and general industrial equipment using computers is increasing.
Recently, Samsung Electronics' semiconductor production equipment has also been equipped with KEM's SPD, and SPD is selected as a must to protect such expensive equipment.
▲ 'SPD' that protects against surge (lightning, overvoltage)
Major application fields include protection of railway signaling devices, communication/measurement, control device protection, automatic control device protection, escalator/elevator control panel protection, solar power generation system, etc. as well as various places such as museums, department stores, banks, hospitals can.
The oil skimmer is used in various production sites, such as cutting oil, floating oil in cutting oil, processing product cleaning tanks, heat treatment, paint shop grinding machines, machining centers, and CNC lathes. An increasing number of companies want to install oil skimmers on various production facilities including machines.
Belt materials have been diversified into Urethane and SUS, and in 2016, a tube-type oil skimmer was developed to broaden the range of choices for customers who need an oil skimmer.
In the case of a new tube-type oil skimmer, it is easy to install and separate, so it is expected to be a hit item this year and is in mass production.
▲ 'OIL SKIMMER' that separates insoluble oil
Q. If you introduce the characteristics of the new tube type product, how is it different from the existing belt type product?
A. Tube-type oil skimmer is a product that effectively removes oil on the surface layer like existing belt-type products. Surface oil is continuously removed using a 6mm diameter lipophilic special tube. This special tube is an integral tube type, not a connecting tube type, and has excellent durability. In the case of the belt type, the oil collection range is wide as the tube that removes oil moves, unlike the belt that is fixed. In addition, the all-in-one tube type has the advantage of long life, and it is portable and easy to install and manage.
Q. What other representative products are there?
A. In addition to the SPD and oil skimmer, you can use an interface cover that allows PLC control without opening and closing the machine control panel. The interface cover has high space utilization in the workplace and is easy to manage as it does not allow dust to enter the control panel. The material is also produced as a die-casting and PVC product, and it is economical because it has a D-Sub connector and an AC outlet, and LAN and USB can be attached together by choice.
▲ 'INTERFACE COVER' that enables PLC control without opening and closing the control panel
Unlike existing products, K IC B type, a new product in 2016, is receiving good response from customers because it is easy to attach and detach the D-Sub connector, AC outlet, LAN, and USB.
▲ 'FOOT SWITCH' that protects the safety of the production site with a sturdy cover
Q. KEM is aggressively engaged in business by regularly participating in domestic and international exhibitions. Have there been any successes so far?
A. KEM has been trying to get closer to overseas customers with a global corporate brand image that changed its name from 'Korea Electronics Co., Ltd.' to 'KEM Co., Ltd.' as a global innovation campaign in 2011. To this end, we are promoting KEM's latest news and new products through our website and blog activities, and we are steadily participating in related exhibitions held in China, Japan, Malaysia, Russia, Thailand, Vietnam and Poland.
As a result, KEM's products are exported to Japan through Misumi Korea. In addition, we signed a contract with Fanuc Korea to supply tapping machines that process mobile phone cases to Samsung Electronics Vietnam factories, and our company participated in this together. have been delivered.
Q. In August of last year, you expanded and moved to a new building in the Seobusan Distribution Complex. Could you explain the meaning and expected effect of the completion of the new building?
A. In the Western Mountain area, empty plains that used to be paddy fields 50 years ago are being reborn as international industrial logistics cities and eco-delta cities. This area is easy to secure excellent manpower in Busan and Gimhae due to the opening of the light rail line, and it is very convenient in terms of logistics as it is close to the new port and airport. It is forming a wide commercial district with good transportation infrastructure with neighboring industrial complexes such as Noksan Industrial Complex, Hwajeon Industrial Complex, and Yangsan and Changwon. It is expected that the relocation of the office building to the Seobusan distribution complex will be a great growth for KEM in line with the Seobusan era in Busan.
▲ A view of KEM's new building located in Seobusan Distribution Complex. 1st floor is customer support team, 2nd floor is The staff cafeteria, the 3rd and 5th floors are used as warehouses for raw materials, the 6th to 10th floors are used for production lines, and the 11th floor is used as a research center.
Q. What needs to be supplemented in order to strengthen global competitiveness in the future, and where do you plan to focus your human and material capabilities?
A. Recently, quotations and orders for KEM's products from overseas are increasing due to their high quality and competitive price. Therefore, from a long-term perspective, we plan to increase the proportion of exports by strengthening overseas sales departments and expanding support for overseas marketing. In particular, we are expanding overseas certification support such as UL certification and CE certification for manufactured products with plans to expand further to Russia, Europe, and the Americas in addition to Southeast Asia.
Q. As the head of the company, what are the corporate philosophy and management principles?
A. KEM's corporate philosophy is 'products made by us, let's use them!', and our motto is to supplement and develop parts related to automation and machine tools that have been dependent on imports to suit the domestic conditions and circumstances. Localization of imported parts has contributed greatly to domestic customers who had difficulties in price and follow-up management and further to the development of the domestic industry.
As for the management principle, 'There is no KEM without customers', we are accommodating the diverse needs of our customers through 'One to One Relationship Marketing Service'. This management principle can be easily understood by looking at KEM's products. As an example, we receive product problems from 'Customer's Suggestion' on the homepage, positively review quality improvement and requirements, and apply them immediately.
Q. Please tell us about your future goals and plans.
A. For the past 30 years, we have been looking forward and running for localization development, mass production of products, and new product development. However, for the next 30 years, we plan to do our best for the customers and KEM employees who have supported KEM. The bright smiles of executives and employees stemming from the pleasant environment of the new office building and various welfare policies lead to good products, and good products lead to customer satisfaction. We look forward to all Korean companies advancing into global Korea together with KEM.
Reporter Lim Geun-nan fa@hellot.net
[source] HelloT-Power Interview KEM CEO Noh Jung-deuk “30 years of localization of parts is a single road…Now it is the globalization of products”