Long-term partners in the U.S. – CPI and CCC.
Good communications are essential to good partnerships. But for CPI Canada
Inc., Communications and Medical Products Division, the opposite is also
true: good partnerships are invaluable to its position as a leading world
supplier of klystrons for satellite communications.
One of CPI Canada's most valuable and long-standing partners is the Canadian
Commercial Corporation (CCC), which has been working with the company
for over 45 years to export its expertise, most recently to the U.S.
Army's Communications and Electronics Command (CECOM).
CPI Canada began life as Varian Canada Inc. in 1954, when U.S. company
Varian Associates established a Canadian division in Georgetown , Ontario
, to manufacture reflex klystrons used in the avionics gear of Canada
's fighter aircraft. From that beginning, Varian Canada evolved into
the world's leading design, development and manufacturing specialist
of microwave and millimeter wave tubes and complex electronic equipment
for communications and medical applications. Varian Canada became CPI
Canada in 1995.
The 300-employee CPI Canada is expecting a business volume this year
of U.S. $35 million. The company exports 98% of its products, largely
to the United States , Europe and Asia . "Our equipment is found
in every region of the globe," says CPI Canada Vice-President of
Business Development Klaus Beecker.
Competitive Edge for Klystrons
CECOM has been a U.S. military client for CPI Canada for approximately
15 years. As Varian, the company manufactured the klystron tubes originally
built into equipment that the U.S. Army purchased for its tactical satellite
communications network. "Since the initial purchase, we have replaced
and repaired these klystrons as they reach the end of life," explains
Beecker.
The company's repair contracts with CECOM—the latest valued at
U.S. $1.5 million for one year's worth of klystron requirements—were
won on a competitive basis, with CCC acting as prime contractor. All
CECOM contracts have included annual purchase options for up to five
years, each of which CECOM has chosen to exercise.
"For the customer to exercise all the options, and then to come
back and contract with CPI Canada again means that CPI is obviously a
good supplier to them, with a very high-quality product," says CCC
Project Manager Victoria MacKenzie, who has enjoyed her three-year working
relationship with the company.
Long-standing partners
CPI is no newcomer to either the United States or CCC. "We have
worked extensively with U.S. government labs and agencies in developing
new products over the years," explains Beecker. "And all of
our exports to U.S. government agencies have been contracted through
CCC."
While the joint U.S./Canada Defense Production Sharing Arrangement mandates
that all purchases over U.S. $100,000 from Canadian companies be
made through CCC, CPI Canada also highly values the service. "CCC
vouches for Canadian industry and saves us a whole lot of hassle in having
to deal with U.S. accounting procedures," says Beecker. "We
have no intention of changing this arrangement. It works well, and when
something works well, you don't even think of making changes, except
to make it even better."
With growing demand for its outstanding product quality and customer
service, CPI Canada is definitely counting on its strong partnership
with CCC for the years ahead.
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