Power supply manufacturer, XP Power has trebled the size of its plant near Shanghai, China, to meet growing demand for the company's high-efficiency, compact power supplies aimed at the industrial, healthcare, and technology markets.
XP Power completed acquisition of the original 18,000 square foot facility on January 1, 2008, following a successful joint venture that started in 2006. Growing demand for the company's 40W to 1.5kW power supplies prompted the investment in a new state-of-the-art 70,000 square foot facility.
The new plant is part of XP Power's strategy to attract more business from the largest health care and industrial customers, many of whom prefer to deal with vendors that have their own, rather than sub-contracted, manufacturing. Such companies also need to be assured that vendors are capable of rapidly ramping-up production when required. The new factory has already undergone successful audits by a number of these customers.
In addition to producing standard products, the new factory will be used for XP Power's engineered solutions. These include customisation of power supplies for particular applications or integration of products.
Anticipating further expansion in demand, XP Power has also purchased land in Vietnam in readiness for building a factory near Ho Chi Minh City.
XP Power's deputy chairman, James Peters said that the company had completed the transition from being a power supply distributor just five years ago to being a major manufacturer of both AC-DC and DC-DC power supplies. The majority of XP Power's sales now come from products that have been developed by the company based on customers' requirements. He added that as a result, XP Power is pushing the boundaries of size and efficiency in the power supply industry with every new product introduction and this is leading to increasing demand for their products.