HVAC OEM Profits From Sub-Assembly In China

A leading HVAC brand wanted to achieve greater cost savings from its sub-contract manufacturing.

We recommended moving assembly of six components from its UK site to our CEL Group facilities in China. By taking advantage of our quality-controlled assembly services, the company has increased its profits without compromising supply confidence. Branded, tested and fully packaged products (including installation instructions) are now delivered to the OEM’s warehouse, just in time to fulfil customer orders.

Customer Challenges

• Cut manufacturing costs
• Maintain quality standards
• Free up resources

CEL Group Solution

• Outsource product assembly
• Use quality managed CEL Group facilities in China
• Benefit from CEL Group’s UK stockholding

Customer Results

• Reduced eight components to one assembled product
• Released in-house machine capacity
• Specialist branded packaging for off-the-shelf supply
• Cash flow benefits from UK stockholding

Our product assembly services in China have made it easy to deliver more manufacturing cost-savings to this HVAC OEM. Outsourcing the work enabled the business to grow without investing in additional storage space or UK-based staff.