Founded in Dongguan in 2001, Aztech Communications Equipment (Dongguan) Co., Ltd. (hereinafter referred to as “Aztech”) has experienced an annual growth rate of 30% to 40% from 2019 to 2023. Despite the rapid growth in output value each year, the company has reduced its workforce by one-third through automation. This is a snapshot of Aztech’s development experience in Dongguan.
Aztech was established in 2001 in Changping Town, Dongguan, by the Singaporean company Aztech Systems Ltd. It specializes in the development, design, manufacturing, and sales of products such as modems, video doorbells, wireless routers, smart beds, powerline adapters, network cameras, and LED energy-saving lighting. Many of its products are industry-leading in technology and the company owns its own brand, with products mainly sold to Europe, the United States, and Southeast Asia.
He Chaoyang, the company’s vice general manager, told reporters that Aztech has deeply felt the advantages of being based in Dongguan over the years. In addition to its favorable geographic location, Dongguan’s mature industrial support is very beneficial for the development of manufacturing enterprises. “Aztech will certainly continue to increase its investment in Dongguan.”
Automation
Reducing workforce by one-third
On July 5, when entering Aztech’s production workshop, reporters observed workers busy at their tasks, but the number of workers in the large workshop was relatively low.
Currently, Aztech’s main products include two categories: security monitoring cameras and smart furniture products. In terms of security monitoring cameras, the products consistently rank among the top three in the European and American markets. For smart furniture products, the focus is on their flagship smart mattress, which features memory and monitoring functions. This mattress can monitor users’ heart rates, blood pressure, and other data, and will trigger an alarm if abnormalities are detected. Since 2017, Aztech has been exporting smart mattresses, with a monthly export volume of 6,000 to 8,000 units, each priced at over $2,000 in the U.S.
The aforementioned products require high quality standards. To meet these demands, the company has increased its investment in research and development in recent years and actively promoted “automation through machine replacement.” This move is driven by the need to improve product quality as well as to expand production and enhance efficiency.
He Chaoyang revealed that Aztech has been fully implementing lean manufacturing and vigorously promoting automation and intelligent production transformations. In recent years, the company has reduced its workforce from 3,000 in 2017 to approximately 2,000 through machine replacement, significantly improving production efficiency. The company has received substantial support from the government in this process.
“During the machine replacement process, we received several subsidies, such as over 2 million yuan in subsidies in 2018,” He Chaoyang said.
Aztech is currently collaborating with relevant enterprises to upgrade its production lines with smart technologies, which is expected to further enhance production efficiency.
Increased investment and expansion
Continuously Increasing Investment in Dongguan
“Because we are firmly optimistic about Dongguan, we have continuously increased our investment in the city over the years. In addition to investing in automation, we are also continuously constructing new factories,” He Chaoyang told reporters. Although the company was only established in 2021, it began its first round of investment and expansion, including new factory construction, as early as 2005.
He Chaoyang explained that as a manufacturing company, expanding the scale of operations naturally requires more workers and machinery. With the need for worker dormitories and living areas, the existing facilities could no longer accommodate the new workers, necessitating the construction of new factory sites.
In 2020, Aztech also used previously acquired land to build a new factory.
Regarding why Aztech continues to increase its investment in Dongguan, He Chaoyang stated that the company has consistently received substantial support from the local government since its establishment. In addition to receiving subsidies for automation and replacing human labor with machines, the company has also benefited in other ways. For instance, due to a series of policies promoting the development of the real economy in Dongguan, Aztech has secured credit loans from several banks, providing financial support for its growth.
He Chaoyang stated that as a multinational company, the primary considerations for investing in a location are its overall business environment and the related industry support capabilities. “Dongguan has always had the advantage of a very well-developed industry support network, with both upstream and downstream support being highly comprehensive. Therefore, developing manufacturing in Dongguan offers unique advantages,” he said. “Aztech will definitely continue to increase its investment in Dongguan.”
