CrispTech sees the light again, after recovering 'China syndrome' moment

IN NOVEMBER 2010, CrispTech got the call every company dreads - its number one category killer product, a miniature overcurrent circuit breaker, had just failed an Australian audit and had to be withdrawn from the market.

Three short years earlier the company had been in the right place, right time with a new product when changes to Australian regulative requirements came into effect.  

Now CrispTech was managing a product withdrawal, only to discover that the Chinese manufacturer failed to honour warranties.  The company was faced with a seemingly irrecoverable situation, given its available resources and with no manufacturer support.

CrispTech went into voluntary administration in July 2012, but by October of that year Brisbane businessman Duncan Andrews purchased the company.

Mr Andrews had insights into the business's potential and saw its strong base from which he could resurrect CrispTech's fortunes - he knew he was able to draw on the loyalty of suppliers, customers and, as he said, "the all-important staff".

CrispTech started with a new strategy.

First, the firm created three new divisions: Ethernet Australia (industrial communications), Lumigen (LED lighting) and Elindus (standard electrical products) .

"Industrial communications is the backbone of the company but it needed a clearer focus which Ethernet Australia provides and the world leading communication brands it represents," Mr Andrews said.

"But it was the LED side of the business that really interested me and the opportunity that existed with energy saving products."

While CrispTech had been involved with LED for two years, rapid technology change and declining product quality were adversely affecting the LED market.

"So, learning from recent experiences, we visited China three times over the past six months to select the right manufacturers with the right products, and to audit their factories to ensure everything meets our agreed specifications," Mr Andrews said.

"With my background in food manufacturing where safety and Quality Assurance are a given, I see no difference that the same process and discipline are brought to importing LED products.

"We are serious about quality and eliminating the pain factor for our customers by building confidence in Chinese manufactured products."

http://www.crisptech.com.au/

*CrispTech is a 2013 Member of Queensland Leaders, the organisation helping to develop the next generation of leading companies based in Queensland. http://www.queenslandleaders.com.au/

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